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 with OEM
Non-Auto growth from more mid-tier
APR programs for prime and risk mgt
11,552 11,564 12,039 12,468
3,997 4,042 4,230 4,373
1,396 1,343 1,406 1,566
16,945 16,949 17,675 18,406
2015 2016 2017 1H18
• Non-Auto asset portfolio• Auto asset portfolio (unit: BN KRW)
New car
Lease/rent
Used car (＋4.1%)
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 3,405
2,061
2,095
2,407
2,635
971
1,068
1,362
1,491
4,868
5,620
6,815
7,532
2015 2016 2017 1H18
Mortgage
P-loan
Corporate, etc.
(＋10.5%)
2015 2016 2017 2Q18 v. 2017
Prime
mix
46.4% 45.5% 51.6% 58.0% 6.4%p
Average
APR
24.7% 22.3% 17.2% 15.6% -1.6%p
• H/KMC new releases • Index
①
1.24 MM 1.19 MM 1.21 MM 0.62 MM
[ HMC Santa Fe ] [ KMC K9 ]
4. Operating expense
: Increase in line with volume/asset growth
- SG&A : Ratio improved thru higher promotion efficiency
- Bad debt expense
: Stabilized rising trend by tightening risk mgt from 2Q
HCS : Profitability
3
2016 2017 1H17 1H18 YoY
Oper. revenue①
2,586.0 2,634.1 1,259.7 1,384.9 9.9%
Product
revenue
2,305.1 2,352.8 1,155.5 1,238.3 7.2%
Oper. expense②
2,243.5 2,306.1 1,090.5 1,178.0 8.0%
Interest
expense
585.8 539.5 267.6 275.3 2.9%
SG&A 726.5 752.2 358.0 359.1 0.3%
Bad debt
expense
295.4 317.5 141.4 191.6 35.5%
Oper. Income 343.3 323.7 166.7 208.8 25.2%
Non-operating
income
60.2 77.3 46.0 39.6 -13.9%
Equity
method
income
55.8 68.9 42.4 36.2 -14.6%
IBT 403.5 400.9 212.7 248.4 16.8%
Net income 300.7 299.9 162.3 186.4 14.8%
ROA 1.4% 1.3% 1.4% 1.5% 0.1%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)
Year 2015 2016 2017 1H17 1H18
SG&A/volume 4.8% 4.9% 4.8% 4.9% 4.1%
• Equity method income
: Caused by reduced ‘17 car sales in China
(BHAF 29.0BN, HCUK 6.4BN)
Year 2015 2016 2017 1Q18 2Q18
Bad debt expense
/product balance
1.5% 1.3% 1.4% 1.6% 1.4%
5. ①
HCS : Asset Quality / Capital
4① (Allowance+reserve)/FSS requirement
2015 2016 2017 1H18 v. 2017
Total
provision
719 737 780 827 5.9%
Allowance 465 529 571 677 18.5%
Reserve 254 208 209 149 -28.6%
FSS
Coverage
124.0% 124.0% 127.4% 124.5% -2.9%p
• Leverage• 30+ delinquency rate
0.53% 0.52% 0.52% 0.56%
1.92%
2.06% 2.02% 2.13%
2015 2016 2017 1H18
New car
DQ%
Total
DQ%
(unit: BN KRW)• Provision • Total asset and capital
6.6X 6.7X
7.0X
7.2X
2015 2016 2017 1H18
2015 2016 2017 1H18 v. 2017
Total asset 24,219 25,049 27,137 28,059 3.4%
Total capital
(previous
quarter)
3,671 3,724 3,890 3,886 -0.1%
(unit: BN KRW)
Stable quality from conservative U/W
policies and reserving at highest level
FSS-compliant capital management
: Leverage 10X or below
6. 56.6%
23.6%
7.4%
3.5%
6.3% 2.6%
채권 등
해외채권
국내ABS
해외ABS
은행대출
단기조달
HCS : Funding / Liquidity
5Source: Internal sources
2015 2016 2017 1H18 v. 2017
Total funding 19,355 19,943 22,077 22,971 4.0%
Domestic 13,989 14,324 16,221 16,748 3.3%
Offshore 5,366 5,619 5,856 6,223 6.3%
2015 2016 2017 1H18 v. 2017
Total liquidity 4,264 4,543 5,341 5,304 -0.7%
Cash 1,551 1,339 2,016 1,711 -15.2%
Credit line 2,713 3,204 3,325 3,593 8.1%
Short-term
debt coverage
73.9% 69.5% 84.3% 86.6% 2.3%p
Stable thru duration/product/currency
diversification, and guideline in place
• 1H18 funding mix
129.8% 134.9%
154.2% 155.4%
2015 2016 2017 1H18
• Funding (unit: BN KRW) (unit: BN KRW)
Longer liabilities duration and sufficient
liquidity thanks to conservative policy
• ALM ratio
• Liquidity
Bond, etc.
Offshore bond
Domestic ABS
Offshore ABS
Bank loan
Short-term funding
