2. Disclaimer
These presentation materials have been prepared by Hyundai Commercial Inc. (“HCI” 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. Commercial Auto Financing
• Increased sales from B2B channels
• Enhanced client values through platform services
Corporate Financing
• Stable growth from captive loan business
(Financing provider of HMG eco-system)
• Diversified asset portfolio (NPL, PF, etc.)
Assets
2
Portfolio Strategy
(Unit: KRW bn)
2014 2015 2016 2017.1Q YTD
Captive
New
949 1,071 1,091 1,036 (5.0%)
N-Captive
New
1,019 1,092 1,328 1,291 (2.8%)
Used Auto 1,279 1,208 1,294 1,403 8.4%
Corporate
Financing
834 1,146 1,324 1,402 5.9%
Source : Internal Data
(Unit: KRW bn)
3,247 3,370 3,713 3,729
834 1,146
1,324 1,402
4,081 4,517
5,036 5,131
79.6%
74.6% 73.7% 72.7%①
2014 2015 2016 2017.1Q
Auto Asset Non-Auto Asset Auto Share
① Temporary effect due to KRW 0.3tn Off-balance Securitization on March
①
①
4. Income Statement (summary)
Profitability
3
2015 2016 2016.1Q 2017.1Q YoY
Operating Revenue①
367.0 372.8 91.6 96.2 5.4% • In line with managed asset growth
Operating Expense①
290.3 285.5 69.5 72.2 3.9%
Interest Exp. 140.5 129.4 32.6 33.2 1.8%
SG & A Exp. 94.0 104.9 23.5 25.8 9.8%
• On-going investments & hiring concomitant
to business growth
Bad Debt Exp. 39.7 31.0 8.8 7.6 (13.6%) • Due to improvement in asset quality
Operating Income 76.7 87.3 22.1 24.0 8.6%
Non-operating Income -5.0 4.8 2.3 230.7
Equity Method (Net) - 5.4 4.4 2.5 231.1
• Bargain purchase gain from newly acquired
share of Hyundai Card Corp.
Net Income 53.5 71.3 19.6 193.8
ROA②
2.0% 1.8% 1.9% 1.9% -
① FX and Derivatives (for hedging) effects excluded
② Operating Income/Average Managed Asset
(Unit: KRW bn)
5. Delinquency Allowances & Reserves
(Unit: KRW bn)
Asset Quality
4① Total Allowances & Reserves/30+ days Delinquent Asset
0.7%
0.5% 0.5% 0.5%
0.2%
0.3%
0.2% 0.2%
2014 2015 2016 2017.1Q
30+ days Delinquency Ratio 90+ days Delinquency Ratio
27 31
38 38
21
19
22 22
48 50
60 60170.4%
202.0%
245.5%
224.3%
2014 2015 2016 2017.1Q
Allowances Reserves 30+days Coverage
①
6. Capital Adequacy
5
Leverage
2014 2015 2016 2017.1Q YoY
Total Asset 4,782 5,314 6,017 6,373 5.9%
Total Equity 504 603 655 666 1.7%
(Unit: KRW bn)
Capital Adequacy Ratio (CAR)
Source: Financial statements (separate), Financial Supervisory Service guidelines
9.5x
8.8x 9.2x 9.6x
2014 2015 2016 2017.1Q
11.6%
10.8%
9.5%
12.7%
2014 2015 2016 2017.1Q
2014 2015 2016 2017.1Q YoY
Total Asset
(Adjusted)
4,535 5,098 5,766 6,193 7.4%
Total Equity
(Adjusted)
526 550 549 788 43.5%
(Unit: KRW bn)
7. Funding Position Asset-Liability Management
Funding
6Source: Internal data
Diversified Funding Portfolio
• Managing long-term maturity portfolio
• (2Q16) Issued USD $250M Off-shore ABS
- The 1st Commercial Auto Loan Securitization in Korea
Funding Policies
• Long-term debt : No less than 60%
• By Vehicle : ABS <20%, CP <10%
• ALM Ratio : No less than 100%
2016
Bond
88.0%
ABS
5.5%
CP
3.2%
Bank
Loans
3.3%
KRW
5.3tn
2017.1Q
Bond
84.5%
ABS
5.6%
CP
5.6%
Bank
Loans
4.3%
KRW
5.2tn
1.9
1.7 1.7 1.8
138.0%
120.9%
126.5% 131.1%
1.0%
21.0%
41.0%
61.0%
81.0%
101.0%
121.0%
141.0%
161.0%
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2014 2015 2016 2017.1Q
Average Debt Maturity ALM Ratio
8. Liquidity Position Short-term Debt Coverage
(Unit: KRW bn)
Liquidity
7Source: Internal data
Liquidity Policy
• Keep Liquidity Coverage at least for 3 Months
(under stress scenario)
Contingency Framework
• Early warning and response system
(Unit: KRW bn)
262
377
485
217
405
410
460
435
667
787
945
652
2014 2015 2016 2017.1Q
Cash and Cash Equivalents Credit Line
1,500
1,770
1,812
1,772
44.5% 44.5%
52.2%
36.8%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
(200)
300
800
1,300
1,800
2,300
2,800
3,300
2014 2015 2016 2017.1Q
Short-term Debt Short-term Debt Coverage
