2. Disclaimer
This presentation and its contents have been prepared by Hyundai Capital Services, Inc. (“HCS” or “the
Company”) solely for information purposes, and may not be reproduced, published, redistributed, or
transferred, directly or indirectly to any other person, 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 herein. This presentation shall 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 contents such as market or
industry information have been sourced internally or from various associations. The data contained in this presentation is current as
of the date hereof, but the Company shall not be liable for any updates or verification of the contents thereafter.
Certain information and statements in this presentation contain estimates and other “forward-looking statements” which should be
approached with caution. The Company shall not be responsible for any losses or damages incurred based on these forward-
looking statements.
3. 263 293
334 397
1H22 1H23
71.1%
73.5% 73.3%
46.6% 52.4% 56.8%
56.0% 58.2% 65.0%
3,298
3,658
1H22 1H23 HMC KIA
HMG Domestic Car Sales
HMG Global Car Sales
Record-High Quarterly Performance Achieved by Sales Growth and Higher ASP Model Mix
36,262 38,869
1H22 1H23
(K units)
HMG Global Car Sales①
Global
7.2%
North Americas②
+20.8%
Europe③
+11.9%
Korea
+15.6%
10.9%
Operating
income
Operating
- margin
Revenues
(TN KRW)
HMG
① HMC/KIA Business Performance Report, Wholesale ② HMC North Americas/KIA US ③ HMC Europe, KIA Western Europe ④ HMC Genesis+SUV/KIA RV
1
M/S
(K units)
HMC
KIA
HMC
High ASP Models④
KIA
597
856
572
690
1,034
640
553 535 542
788 727 688
2020 2021 2022
57.5% 58.3%
63.4% 67.1%
1,341 1,262 1,230
597
• A sharp rise in global sales due to strong customer demand • Domestic car sales and M/S growth from normalized production and
volume expansion
• Profitability enhanced with a greater share of high ASP models (Genesis, SUV)
690
74.3%
77.2%
40
50
4.9
7.8
7.4%
9.8%
9.5%
12.6%
1H22 1H23 1H22 1H23
66
80
3.8
6.3
4. 2.2 2.3 1.9
1.3
3.5 3.6
3.4
3.1
0.4
0.7 1.6
1.4
0.4
0.4
0.3
0.4
6.5 TN
7.0 TN 7.2 TN
6.2 TN
2020 2021 2022 1H23
Non-Auto
Auto
① NICE CB Grades 1~4 → 1H21 Credit score 780 and above (’21 credit score scheme in place)
78.9% 77.6% 78.3% 80.2%
Auto %
HMG sales
(K units)
1,341 1,262 1,230 690 X-sell %
Prime %①
• New cars: Asset growth from normalized production and increased sales
• Lease: Continued growth with greater share of high ASP models, such as
Genesis and SUV
• P-Loan: Gradual decrease in asset size (3.9% of total financial assets)
• PF: Slight decrease in asset size (4.1% of total financial assets)
New car
Lease
Used Car
P-Loan①
Mortgage
PF
Others
Prime Portfolio Built on Auto Finance, Backed by Stronger Cooperation with HMG
Asset
2
65.7% 62.9% 62.3% 70.6%
86.5% 87.5% 91.3% 87.9%
15.5 14.8 15.8 16.8
6.1 6.7
7.6
7.8
2.7 2.8
2.6
2.7
24.2 TN 24.3 TN
26.1 TN
27.2 TN
2020 2021 2022 1H23
5. 3
①,② Excl. FX and derivatives impact ③ Reflects 40.5 BN KRW equity method losses by impairment assessment of HCBE after Allane acquisition ④ Net Income / Avg. Balance of Financial Assets ⑤ SG&A / Avg. Balance of Financial Assets
Summary of Financial Statements
Higher operating revenues affected by prime portfolio built on auto finance
• Financial assets up 2.8% YoY with enhanced competitiveness in loan products
• Lease revenues up 50.5% YoY with stronger demand for high ASP models
Asset quality ensured by conservative risk management
• 30+ delinquency remained below 1% level thanks to pre-emptive risk mgmt. in
preparation for a contingency
Securing Strong Competitiveness with Lease-driven Revenue Growth and Pre-emptive Risk Mgmt.
P&L
2021 2022 1H22 1H23
YoY
Financial Assets 31.3 TN 33.3 TN 32.5 TN 33.4 TN 2.8%
(BN KRW)
Operating Revenue①
2,941.2 3,787.0 1,602.2 2,170.8 35.5%
Operating Expense②
2,469.8 3,311.8 1,334.9 1,936.4 45.1%
Bad Debt 139.5 198.3 85.2 112.7 32.4%
SG&A 620.2 676.0 322.5 333.7 3.5%
Operating Income 486.1 474.5 269.1 233.0 -13.4%
Non-operating
Income
89.1 108.8 56.5 13.0 -77.0%
Equity Method
Income
71.5 103.8 52.6 8.5③
-83.8%
IBT 575.2 583.3 325.6 246.0 -24.4%
Net Income 432.6 437.1 244.6 188.3 -23.0%
ROA④
1.4% 1.4% 1.5% 1.1% -0.4%p
30+ %
1.89%
1.48%
0.94% 1.04% 0.98%
2019 2020 2021 2022 1H23
Cost optimization effort continued to buttress profitability
• OPEX reduced by digitalization and efficient marketing budget execution
2.38%
2.10%
2.00% 2.09% 2.04%
2019 2020 2021 2022 1H23
OPEX %⑤
6. 4
Asset Leverage
(Asset/Equity)
Regulatory
Reserve
Coverage
Domestic
Bonds 56%
Overseas
Bonds
17%
ABS
17%
Bank
8%
Others
3%
Total
Debt Balance
31.8 TN
Provision
• Regulatory reserve coverage kept above regulatory guideline (100%)
Capital Adequacy
• No dividend payout in ’21~‘22
Funding
• Funding portfolio diversified to ensure stable funding
Liquidity
• Conservative internal guideline in place for liquidity management
Key Index
Solid Financial Position Managed Within Regulatory Guidelines
Index
120.7% 122.6% 129.4% 130.3%
2020 2021 2022 1H23
7.6x 7.2x 7.4x 7.5x
2020 2021 2022 1H23
Guideline 1Q23 2Q23
6M Coverage 100% 144% 136%
ALM 100% 125% 125%
9. (BN KRW) 2020 2021 2022 1H23
Asset
Quality① 30+ Delinquency 1.48% 0.94% 1.04% 0.98%
Substandard and
below asset ratio
2.7% 2.2% 2.2% 2.1%
Total provision
/30+ receivables
203.1% 274.0% 250.2% 254.8%
Leverage②
7.6x 7.2x 7.4x 7.5x
Total assets 33,359.9 34,412.2 37,977.3 39,226.0
Total capital
(previous quarter)
4,411.6 4,780.2 5,149.0 5,206.7
Debt Balance③
27,568.1 28,209.0 30,818.0 31,767.5
Liquidity④
5,024.3 4,927.5 6,958.1 7,760.0
Cash 1,666.2 1,650.0 2,925.5 3,797.0
Credit line 3,358.1 3,277.5 4,032.6 3,963.1
(BN KRW) 2020 2021 2022 1H23
Financial Assets 30,732.3 31,340.7 33,271.6 33,436.8
Auto 24,238.5 24,322.6 26,061.3 27,243.8
New car 15,521.9 14,790.8 15,801.0 16,768.7
Lease/rent 6,071.6 6,736.1 7,641.4 7,805.4
Used car 2,645.0 2,795.7 2,618.8 2,669.7
Non-Auto 6,493.8 7,018.2 7,210.4 6,193.1
P-Loan 2,175.0 2,263.2 1,874.9 1,290.0
Mortgage 3,465.7 3,640.0 3,415.9 3,133.5
PF 407.2 707.1 1,571.3 1,381.3
Others 446.0 407.8 348.3 388.2
①,② Based on separate financial statements ③,④ Based on managerial accounting
2. Key Figures
10. Strategy
Highlights
• Asset growth continued
due to stronger car sales
and better portfolio mix
with higher ASP models
• Efforts continued to
buttress profitability via
cost reduction despite
slow car sales followed
by decrease in asset size
• Profitability ensured due
to strong used car prices
despite increased interest
cost amidst high interest
rate environment
• Despite pen. and asset
growth, decreased profits
due to rising funding cost
in high interest
environment
• Assets on the rise with
HMG co-marketing, but
slight decrease in profits
due to rising funding
cost
• Volume expansion and
profit growth continued
through portfolio
diversification
Financial
Assets
(BN)
[USD] [RMB] [GBP] [CAD] [EUR] [BRL]
IBT
(MN)
HCA①
US
BHAF
China
HCCA
Canada
HCBE
Germany
HCUK
UK
BHCB
Brazil
① HCS provides management guidance for HCA. HCA shareholding structure: Hyundai Motor (HMA) 80%, Kia (KUS) 20%
Based on local GAAP / Based on IFRS for HCBE, BHCB
3. Global Hyundai Capital
7 21 9
2021 2022 1H23
46.7 48.2 52.7
2021 2022 1H23
23.2 14.9 12.3
2021 2022 1H23
2.7 3.1 3.4
2021 2022 1H23
4.9 6.4 7.4
2021 2022 1H23
3.3 4.3 5.2
2021 2022 1H23
1,035 647 260
2021 2022 1H23
691 615 206
2021 2022 1H23
87 75 37
2021 2022 1H23
72 116 44
2021 2022 1H23
4.1 4.8 5.1
2021 2022 1H23
96 141 94
2021 2022 1H23
