2. Disclaimer
These presentation materials have been prepared by Hyundai Commercial Inc. (“HCI or the Company”), solely for the use at this presentation and have
not been independently verified. No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the
accuracy, fairness or completeness of the information presented or contained in this presentation. Neither the Company nor any of its affiliates,
advisers or representatives accepts any responsibility whatsoever for any loss or damage arising from any information presented or contained in this
presentation. The information presented or contained in this presentation is current as of the date hereof and is subject to change without notice and
its accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or representatives make any undertaking to update any such
information subsequent to the date hereof. This presentation should not be construed as legal, tax, investment or other advice.
Certain information and statements made in this presentation contain “forward-looking statements.” Such forward-looking statements can be
identified by the use of forward-looking terminology such as “anticipate,”“believe,”“considering,”“depends,”“estimate,”“expect,”“intend,”“plan,”
“planning,” “planned,” “project,” “trend,” and similar expressions. All forward-looking statements are the Company’s current expectation of future
events and are subject to a number of factors that could cause actual results to differ materially from those described in the forward-looking
statements. Caution should be taken with respect to such statements and you should not place undue reliance on any such forward-looking
statements.
Certain industry and market data in this presentation was obtained from various trade associations, and the Company have not verified such data with
independent sources. Accordingly, the Company make no representations as to the accuracy or completeness of that data, and such data involves risks
and uncertainties and is subject to change based on various factors.
This presentation does not constitute an offer or invitation to purchase or subscribe for any shares or other securities of the Company and neither any
part of this presentation nor any information or statement contained therein shall form the basis of or be relied upon in connection with any contract or
commitment whatsoever. Any decision to purchase shares in any offering of shares of the Company should be made solely on the basis of the
information contained in the offering document which may be published or distributed in due course in connection with any offering of shares of the
Company, if any.
The contents of this presentation may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole
or in part, for any purpose.
3. 3
2011 2012 2013 2014 YoY
Op. Revenue 3,240 3,467 3,462 3,508 1.3%
Op. Expenses 2,362 2,639 2,704 2,863 5.9%
Bad debt expense 179 212 286 339 18.5%
Op. Income 877 828 759 645 -15.0%
Net Income 734 436 366 247 -32.5%
2.9% 3.0%
2.7%
2.5%
2011 2012 2013 2014
ROAROAROAROA
Increase in operation revenues
- Maintained growth of fundamental by increasing
sales volume
- Profit margin of high-yield lease product increased
Op. Income and Net Income declined
- Income rate went down due to Elevated competition
- Loss on equity method valuation of HLI increased
Increase sales volume by diversified revenue
stream
Pursue efficiency by keeping a good balance in
expenses
Key HighlightsKey HighlightsKey HighlightsKey Highlights
ProfitabilityProfitabilityProfitabilityProfitability
Income statementIncome statementIncome statementIncome statement (KRW Bn)
* New handling ROA
Forecast and StrategyForecast and StrategyForecast and StrategyForecast and Strategy
4. 4
87.7% 91.0% 86.5% 89.9%
44.8% 41.9%
50.5% 50.7%
2011 2012 2013 2014
New Auto
47.9%
Used
Auto
31.1%
Machine
Tool
5.2%
Corporate
Finance
11.8%
PF 4.0%
Used AutoNew Auto Captive
Maintained dominant market position
- beyond B2C and focused on B2B financing
- Enlarged line-up of commodity based on
service (lease, RV *etc.)
Diversified asset portfolio
- Corporate finance, Machine tool increased
- Stable growth on Corporate Finance focusing
captive loans for HMG group
Continue to develop high-yield products
- Operating lease, Rental, NPL, Structured Finance
* RV : Residual Value
Key HighlightsKey HighlightsKey HighlightsKey Highlights
Asset Portfolio and Market ShareAsset Portfolio and Market ShareAsset Portfolio and Market ShareAsset Portfolio and Market Share
Asset PortfolioAsset PortfolioAsset PortfolioAsset Portfolio (KRW Bn)
• Total Balance : 4.1 Bn KRW
• Auto portion : 79.0%
Market ShareMarket ShareMarket ShareMarket Share
Forecast and StrategyForecast and StrategyForecast and StrategyForecast and Strategy
5. 5
0.8%
1.1%
0.7% 0.7%
2011 2012 2013 2014
2011 2012 2013 2014
Total reserve 253 381 413 467
Total reserve
/Regulatory Requirement
102% 142% 137% 145%
Superb asset quality
- Delinquency rate decreased despite the
recession
- Maintained no-loss in real-estate PF
Conservative reserve policy
- Total reserve well exceeded regulatory
requirement
Maintain reinforced risk management
Maintain current customer portfolio proportion
Key HighlightsKey HighlightsKey HighlightsKey Highlights
Asset Quality and ReserveAsset Quality and ReserveAsset Quality and ReserveAsset Quality and Reserve
30+ day delinquency Rate30+ day delinquency Rate30+ day delinquency Rate30+ day delinquency Rate (%)
Total ReserveTotal ReserveTotal ReserveTotal Reserve (KRW Bn)
Forecast and StrategyForecast and StrategyForecast and StrategyForecast and Strategy
6. 6
14.0%
11.3% 11.0% 11.6%
2011 2012 2013 2014
Total Asset / Total EquityTotal Equity
Capital Adequacy RatioCapital Adequacy RatioCapital Adequacy RatioCapital Adequacy Ratio
Comply with FSS regulation
- Increased capital from issue of hybrid-bond
in ‘14.1H (1200 Bn KRW)
Manage leverage and and capital adequacy
ratio within FSS regulation
Key HighlightsKey HighlightsKey HighlightsKey Highlights
3,494 3,381 3,544
4,947
16.0X
12.5X 11.6X
9.5X
2011 2012 2013 2014
CapitalCapitalCapitalCapital StructureStructureStructureStructure
LeverageLeverageLeverageLeverage (KRW Bn)
Forecast and StrategyForecast and StrategyForecast and StrategyForecast and Strategy
7. 7
Funding Portfolio by ProductFunding Portfolio by ProductFunding Portfolio by ProductFunding Portfolio by Product
Bonds
88.3%
ABS
2.2%
Loans
5.5%
CP 4.0%
FundingFundingFundingFunding
****
Key HighlightsKey HighlightsKey HighlightsKey Highlights
Forecast and StrategyForecast and StrategyForecast and StrategyForecast and Strategy
* KOFC excluded
• Total Balance : 4.0 Bn KRW
• Long-term Borrowings : 63.6%
• ALM : 138.0%
Flexibly reflect financial market monitoring
results on funding strategy
- Gradually Increased portion of Bonds by
using low-interest situations
- Long-term Funding due to short-term and
long-term interest rate reduction
Pursue stability and efficiency
- Increase long-term Bonds, low interest CP
Long-term borrowings target > 60%
ALM > 120%
8. 8
Liquidity PositionLiquidity PositionLiquidity PositionLiquidity Position
Liquidity ProfileLiquidity ProfileLiquidity ProfileLiquidity Profile (KRW(KRW(KRW(KRW BnBnBnBn))))
8,844
6,119
10,039
6,945
9,230
21.5%21.5%21.5%21.5%
14.9%14.9%14.9%14.9%
24.4%24.4%24.4%24.4%
16.9%16.9%16.9%16.9%
22.4%22.4%22.4%22.4%
1H15 2H15 2016 2017 2018~
Debt MaturityDebt MaturityDebt MaturityDebt Maturity (KRW Bn)
Key HighlightsKey HighlightsKey HighlightsKey Highlights
41.0% 46.2% 48.6% 42.5%
2,760 2,828 2,805 2,328
1,750
3,250 4,050 4,050
4,510
6,078
6,855 6,378
2011 2012 2013 2014
Forecast and StrategyForecast and StrategyForecast and StrategyForecast and Strategy
* Short-term Debt Coverage Ratio
= (cash+ Unused committed credit line)/ short-term debt balance
Credit LineCash Short-term Debt Coverage Ratio* Solid liquidity position
- Debt maturity has been extended to cover
2-year cash flows
Liquidity coverage target > 3M
Manage stable liquidity through contingency
Plan
