2. Disclaimer
These presentation materials have been prepared by Hyundai Capital Services., Inc. (“HCS” or “the Company”), solely
for the use at this presentation. This presentation material 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.
The Company has not taken measures to independently verify data contained in this material. 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. This presentation should not be construed as legal, tax, investment or other advice.
Financial statements in this document have been prepared in accordance with K-IFRS. Other additional market information has
been sourced from the Company or from other external institutions. 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.
Certain information and statements made in this presentation contain “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.
3. HCS : Asset
2
Auto growth from H/KMC new model
releases and co-marketing w/OEM
Non-Auto growth from more mid-tier
APR programs for prime and risk mgt
11,552 11,564 12,039 12,159
3,997 4,042 4,230 4,322
1,396 1,343 1,406 1,489
16,945 16,949 17,675 17,970
2015 2016 2017 1Q18
• Non-Auto asset portfolio• Auto asset portfolio (unit: BN KRW)
New car
Lease/rent
Used car (＋1.7%)
HMG
sales
(unit: BN KRW)
① Mix of prime credit customers in P-loan volume (excluding Mortgage and Vehicle-secured loan)
Source: Product asset basis
1,836 2,457 3,046 3,230
2,061
2,095
2,407 2,542971
1,068
1,362
1,421
4,868
5,620
6,815
7,193
2015 2016 2017 1Q18
Mortgage
P-loan
Corporate, etc.
(＋5.6%)
2015 2016 2017 1Q18 v. 2017
Prime
mix
46.4% 45.5% 51.6% 53.5% 1.9%p
Average
APR
24.7% 22.3% 17.2% 16.4% -0.8%p
• H/KMC new releases • Index
①
1.24 MM 1.19 MM 1.21 MM 0.29 MM
[ HMC Santa Fe ] [ KMC K3 ]
4. HCS : Profitability
3
2016 2017 1Q17 1Q18 YoY
Operating revenue①
2,586.0 2,634.1 619.3 686.8 10.9%
Product revenue 2,305.1 2,352.8 567.5 620.6 9.3%
Operating expense②
2,243.5 2,306.2 523.2 598.0 14.3%
Interest expense 585.8 539.5 133.0 135.6 2.0%
SG&A 726.5 752.2 179.5 180.6 0.6%
Bad debt expense 295.4 324.7 59.6 101.5 70.2%
Operating income 343.3 323.6 93.2 88.6 -4.9%
Non-operating
income
60.2 77.3 23.8 20.4 -14.3%
Equity method
income
55.8 68.9 22.1 18.5 -16.3%
IBT 403.5 400.9 116.9 109.0 -6.8%
Net income 300.7 299.9 89.2 81.5 -8.6%
ROA 1.4% 1.3% 1.6% 1.3% -0.3%p
• Summary of Income Statement
• Operating revenue
: Increase from growth in all Auto/Non-Auto products
① ② Excluding FX and derivatives effect
(unit: BN KRW)
2015 2016 2017 1Q17 1Q18
SG&A/volume 4.8% 4.9% 4.8% 5.2% 4.3%
Operating expense
: Increase in line with volume/asset growth
- SG&A : Ratio improved thru higher promotion efficiency
- Bad debt expense
: Increase from volume growth and weakened quality
• Equity method income
: Decline due to reduced revenue in BHAF
(BHAF 15.2BN, HCUK 3.0BN)
5. ①
HCS : Asset Quality / Capital
4① (Allowance+reserve)/FSS requirement
2015 2016 2017 1Q18 v. 2017
Total provision 719 737 780 799 2.4%
Allowance 465 529 571 662 15.8%
Reserve 254 208 209 137 -34.4%
FSS
Coverage
124.0% 124.0% 127.4% 119.3% -0.8%p
• Leverage• 30+ delinquency rate
0.53% 0.52% 0.52% 0.54%
1.92%
2.06% 2.02% 2.10%
2015 2016 2017 1Q18
New car
DQ%
Total
DQ%
(unit: BN KRW)• Provision • Total asset and capital
6.6X 6.7X
7.0X
6.8X
2015 2016 2017 1Q18
2015 2016 2017 1Q18 v. 2017
Total asset 24,219 25,049 27,137 27,243 0.4%
Total capital
(previous quarter)
3,671 3,724 3,890 3,985 2.4%
(unit: BN KRW)
Stable quality from conservative U/W
policies and reserving at highest level
FSS-compliant capital management
: Leverage 10X or below
6. 56.2%
23.3%
8.6%
4.4%
6.3% 1.3%
채권 등
해외채권
국내ABS
해외ABS
은행대출
단기조달
HCS : Funding / Liquidity
5Source: Internal sources
2015 2016 2017 1Q18 v. 2017
Total funding 19,355 19,943 22,077 22,203 0.6%
Domestic 13,989 14,324 16,221 16,068 -0.9%
Offshore 5,366 5,619 5,856 6,136 4.8%
2015 2016 2017 1Q18 v. 2017
Total liquidity 4,263 4,543 5,358 4,938 -7.8%
Cash 1,551 1,339 2,016 1,613 -20.0%
Credit line 2,713 3,204 3,342 3,325 -0.5%
Short-term
debt coverage
73.9% 69.5% 84.5% 80.3% -4.3%p
Stable thru duration/product/currency
diversification, and guideline in place
• 1Q18 funding mix
129.8% 134.9%
154.2% 156.7%
2015 2016 2017 1Q18
• Funding (unit: BN KRW) (unit: BN KRW)
Maintain tight liquidity management
and contingency framework
• ALM ratio
• Liquidity
Bond, etc.
Offshore bond
Domestic ABS
Offshore ABS
Bank loan
Short-term funding
7. HCA
6
① Effect of corporate tax refund reflected
Source : Internal sources
• 30+ delinquency rate• Asset portfolio
• P&L • Debt leverage
(unit: MM USD)
2016 2017 1Q17 1Q18 YoY
Operating
revenue
1,615 1,745 422 454 7.5%
IBT 102 102 10 49 382.2%
Net income 81 1,072①
8 62 655.0%
27.9
31.3 31.4 31.1
2015 2016 2017 1Q18
(unit: BN USD)
10.3X
11.3X
7.6X 7.0X
2015 2016 2017 1Q18
1.8%
2.5% 2.5%
1.9%
2015 2016 2017 1Q18
(33.2TN KRW)
Continually grew volume to lay basis
for external growth and profit recovery
Stable quality and capital adequacy
