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. HMG Domestic Car Sales
HMG Global Car Sales
Record-High Performance Achieved by Strong Demand and Continued Product Mix Effect
• Despite prolonged macroeconomic uncertainty, global car sales
continued to grow driven by strong demand
• Domestic car sales and M/S on the rise with normalized production
and volume expansion
• Profitability enhanced by continued expansion of high ASP models
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
4.6
9.1
63 75
6.5
11.7
HMC KIA
Operating
-income
Operating
margin
Revenues
(TN KRW)
7.3%
12.1%
6.2%
9.6%
9M22 9M23 9M22 9M23
104
121
5,074 5,482
9M22 9M23
55,686 59,833
9M22 9M23
(K units)
HMG Global Car Sales①
Global
7.4%
North Americas②
+18.3%
Europe③
+10.5%
Korea
+11.1%
8.0%
892
1,331
855
991
1,575
945
395 427
497 564
9M22 9M23
71.1%
73.5% 73.3%
46.6% 52.4% 56.8%
56.0% 58.2% 65.0%
M/S
(K units)
HMC
KIA
HMC
High ASP Models④
553 535 542
788 727 688
2020 2021 2022
56.8% 58.8%
64.4% 67.6%
1,341 1,262 1,230 892
991
73.4%
76.8%
KIA
4. Non-Auto
Auto
• New cars: Asset growth by increased car sales with strong demand
• Lease: Continued growth with a greater share of high ASP models
• Used cars: Finance product development for HMG CPO
• P-Loan: Gradual decrease in asset size (3.3% of total financial assets)
• PF: Slight decrease in asset size (4.2% of total financial assets)
Optimum Portfolio Built on Auto Finance, Contributed by Stronger Cooperation with HMG
Asset
2
① NICE CB Grades 1~4 → 1H21 Credit score 780 and above (’21 credit score scheme in place)
2.2 2.3 1.9
1.1
3.5 3.6
3.4
3.1
0.4
0.8
1.6
1.4
0.4
0.3 0.3
0.4
6.5 TN
7.0 TN 7.2 TN
6.1 TN
2020 2021 2022 9M23
78.9% 77.6% 78.3% 82.0%
Auto %
HMG sales
(k units)
1,341 1,262 1,230 991 X-sell %
Prime %① 65.7% 62.9% 62.3% 71.3%
86.5% 87.5% 91.3% 88.0%
P-Loan
Mortgage
Others
PF
15.5 14.8 15.8 17.0
6.1 6.7
7.6
7.9
2.7 2.8
2.6
2.8
24.2 TN 24.3 TN
26.1 TN
27.7 TN
2020 2021 2022 9M23
New Car
Lease
Used Car
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 2.1% YoY with enhanced competitiveness in loan products
• Lease revenues up 51.0% YoY with greater demand for high ASP models
Asset quality ensured by conservative risk management
• Record-low delinquency rate in 9M23 thanks to pre-emptive risk mgmt. in
preparation for a crisis
Cost optimization effort continued to buttress profitability
• OPEX reduced by digitalization and efficient marketing budget execution
P&L Defended by Lease-driven Revenue and Pre-emptive Risk Mgmt. Despite Slow Market Recovery
P&L
30+ %
1.89%
1.48%
0.94% 1.04% 0.93%
2019 2020 2021 2022 9M23
OPEX %⑤
2.38%
2.10%
2.00% 2.09%
1.96%
2019 2020 2021 2022 9M23
2021 2022 9M22 9M23
YoY
Financial Assets 31.3 TN 33.3 TN 33.0 TN 33.8 TN 2.1%
(BN KRW)
Operating Revenue①
2,941.2 3,787.0 2,458.3 3,306.8 34.5%
Operating Expense②
2,469.8 3,311.8 2,072.1 2,953.8 42.6%
Bad Debt 139.5 198.3 125.9 179.4 42.5%
SG&A 620.2 676.0 497.1 498.6 0.3%
Operating Income 486.1 474.5 387.1 354.8 -8.3%
Non-operating
Income
89.1 108.8 84.1 48.3 -42.6%
Equity Method
Income
71.5 103.8 79.2 41.5③
-47.6%
IBT 575.2 583.3 471.2 403.1 -14.5%
Net Income 432.6 437.1 356.2 315.7 -11.4%
ROA④
1.4% 1.4% 1.5% 1.3% -0.2%p
6. 4
Guideline 3Q23
6M Coverage 100% 132%
ALM 100% 124%
Provision
• Regulatory reserve coverage kept above regulatory guideline (100%)
Capital Adequacy
• No dividend payout in ’21~‘22
Funding
• Funding portfolio diversified to ensure funding stability
Liquidity
• Conservative internal guideline in place for liquidity management
Key Index
Solid Financial Position Maintained Within Regulatory Guidelines
Index
120.7% 122.6%
129.4% 131.3%
2020 2021 2022 9M23
Regulatory
Reserve
Coverage
7.6x 7.2x 7.4x 7.2x
2020 2021 2022 9M23
Asset Leverage
(Asset/Equity)
Domestic
Bonds 57%
Overseas
Bonds
17%
ABS
15%
Bank
9%
Others
2%
Total
Debt Balance
31.1 TN
8. Consolidated Statement of Financial Position
Consolidated Income Statement
①, ② Excluding FX and derivatives effect
(BN KRW) 2020 2021 2022 9M23
Assets 33,683.3 34,917.1 38,647.5 39,326.4
Cash and deposit 1,688.0 1,673.9 2,958.9 2,761.5
Securities 1,343.0 1,505.7 1,757.3 2,018.9
Loan receivables 9,212.4 10,118.0 9,942.9 9,055.4
Instalment assets 14,523.4 13,752.1 14,720.8 15,931.5
Lease receivables 2,407.1 2,108.3 2,044.9 2,007.1
Lease assets 3,621.7 4,559.0 5,538.1 5,857.8
Tangible assets 201.8 196.8 209.3 197.2
Others 685.9 1,003.3 1,475.3 1,497.0
Liabilities 28,951.2 29,710.3 33,017.8 33,377.4
Borrowings 27,339.6 28,519.1 31,399.2 31,673.3
Others 1,611.6 1,191.2 1,618.6 1,704.1
Equity 4,732.1 5,206.7 5,629.7 5,949.0
Capital 496.5 496.5 496.5 496.5
Capital surplus 388.6 388.6 388.6 388.6
Retained earnings 3,888.0 4,228.8 4,665.9 4,981.6
Others -41.0 92.8 78.7 82.3
1. Financial Statements
(BN KRW) 2020 2021 2022 9M23
Operating Revenue①
2,834.3 2,941.2 3,787.0 3,306.8
Loan income 807.2 792.6 920.0 666.5
Instalment income 624.9 609.9 629.2 616.3
Lease income 1,137.6 1,359.7 2,051.4 1,794.4
Gain on sales of loan
receivables
96.7 8.0 24.3 51.8
Others 167.9 171.0 162.1 177.8
Operating Expense②
2,438.6 2,469.8 3,311.8 2,953.8
Interest expense 588.4 557.7 711.8 792.9
Lease expense 843.5 1,066.9 1,670.0 1,440.6
Bad debt expense 271.0 139.5 198.3 179.4
Loss on sales of loan
receivables
4.5 0.0 2.7 1.5
SG&A 633.3 620.2 676.0 498.6
Others 97.9 85.4 53.0 40.8
Operating Income 397.9 486.1 474.5 354.8
Non-operating Income 79.1 89.1 108.8 48.3
Equity method
income
67.7 71.5 103.8 41.5
IBT 477.0 575.2 583.3 403.1
Net Income 348.6 432.6 437.1 315.7
9. ①,② Based on separate financial statements ③, ④ Based on managerial accounting
2. Key Figures
(BN KRW) 2020 2021 2022 9M23
Financial Assets 30,732.3 31,340.7 33,271.6 33,767.4
Auto 24,238.5 24,322.6 26,061.3 27,699.6
New car 15,521.9 14,790.8 15,801.0 17,003.3
Lease/rent 6,071.6 6,736.1 7,641.4 7,907.5
Used car 2,645.0 2,795.7 2,618.8 2,788.9
Non-Auto 6,493.8 7,018.2 7,210.4 6,067.8
P-Loan 2,175.0 2,263.2 1,874.9 1,101.5
Mortgage 3,465.7 3,640.0 3,415.9 3,137.8
PF 407.2 806.2 1,571.3 1,425.7
Others 446.0 308.7 348.3 402.8
(BN KRW) 2020 2021 2022 9M23
Asset
Quality① 30+ Delinquency 1.48% 0.94% 1.04% 0.93%
Substandard and
below asset ratio
2.7% 2.2% 2.2% 2.1%
Total provision
/30+ receivables
203.1% 274.0% 250.2% 268.8%
Leverage②
7.6x 7.2x 7.4x 7.2x
Total assets 33,359.9 34,412.2 37,977.3 38,571.4
Total capital
(previous quarter)
4,411.6 4,780.2 5,149.0 5,353.2
Debt Balance③
27,568.1 28,209.0 30,818.0 31,054.8
Liquidity④
5,024.3 4,927.5 6,958.1 7,033.8
Cash 1,666.2 1,650.0 2,925.5 2,712.6
Credit Line 3,358.1 3,277.5 4,032.6 4,321.2
10. Strategy
Highlights
• Asset growth continued
due to stronger car sales
and extended line-up of
new cars
• Efforts continued to
buttress profitability via
cost reduction despite
slow car sales followed
by asset shrinkage
• Profitability stayed at
adequate level by
expansion of vehicle
supplies and assets with
minimized bad debt cost
by stable risk mgmt.
• Pen. and asset growth
continued while
profitability being
defended by improved
bad debt and cost
• 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 vehicle sales
recovery
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 14
2021 2022 9M23
46.7 48.2 55.5
2021 2022 9M23
23.2 14.9 11.1
2021 2022 9M23
2.7 3.1 3.6
2021 2022 9M23
4.9 6.4 8.1
2021 2022 9M23
3.3 4.3 5.6
2021 2022 9M23
87 75 69
2021 2022 9M23
4.1 4.8 5.2
2021 2022 9M23
96 141 138
2021 2022 9M23
1,035 647 320
2021 2022 9M23
72 116 64
2021 2022 9M23
691 615 287
2021 2022 9M23
