1 q19 hcs_presentation_web_eng_190529.vf

1. 2019 1Q
Earnings Release

2. 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.
Disclaimer

3. 12.0 13.0 13.4
4.2
4.5 4.6
1.4
1.6 1.617.7TN
19.1TN 19.6TN
2017 2018 1Q19
Auto portfolio
1
New Car
Lease/Rent
Used Car
Auto Portfolio
Continuous Auto Asset Growth through OEM-Finance Synergy
Captive Market
 Sales improved from continued momentum from
HMC/KMC new model releases
- ’17.12 Grandeur, ’18.3 Santa Fe, ‘18.12 Palisade
+2.7%
 Improved position thru continuous Captive marketing
 Greater UW efficiency and process competitiveness via
digitalization
43.2%
46.5% 46.8%
2017 2018 1Q19
Captive
pen rate①
284 221 207
43.2%
75.4% 72.5%
2017 2018 1Q19
Digital
usage%
UW
headcount
① # of cars booked with HCS New Car∙Lease/Rent / # of new cars feasible to book
HMG sales
(M/S)
1.21MM
(67.5%)
1.25MM
(69.2%)
0.30MM
(72.4%)

4. 2.05% 2.10% 2.13% 2.20%
2.11%
2.02%
4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
80.7% 81.6%
85.6%
2.4 2.7 2.7
3.0
3.7 3.8
1.4
1.4 1.4
6.8TN
7.9TN 7.9TN
2017 2018 1Q19
 P-Loan focused on X-sell to prime Auto customers
 Hedging risk of market price drop thru Mortgage RVI
(residual value insurance) coverage
2
Personal Loan
 Stabilized delinquency thru preemptive cut-off and
tightened collection
 Improved Non-Auto portfolio focusing on prime①
Mortgage
Corporate, etc.
Non-Auto Portfolio
Stabilized Non-Auto Asset Quality with Tighter Risk Management
30+%
Risk Management
44.7%
51.4% 53.5%
2017 2018 1Q19
Apr, detected ext/internal
abnormal symptoms
Aug, declared entry to
credit crisis
① Customers with NICE CB grades 1~4
Prime mix
Non-Auto portfolio
X-sell
mix

5. 3
 Solid growth centering on Auto Finance
- Volume increases in New Car Installment and
Lease/Rent fueled by releases of Palisade/G90
 Bad debt expense continues to rise from overall
weakening of industry quality
- Reduced Non-Auto assets (P-Loan, Mortgage)
by tightening risk management
- Plan to maintain the conservative risk stance
set in ‘18 2H throughout the year
 Despite asset growth, controlled SG&A by
enhancing cost efficiency
 Decrease of equity method income due to
declined car sales in China (excluding one-off effect)
- BHAF 9.2BN (39%↓ YoY),
HCUK 3.2BN (7%↑ YoY)
Summary of Financial Statement
Stable Income from Growth and Cost Reduction
(BN KRW) 2017 2018 1Q18 1Q19 YoY
Assets 24.5TN 27.0TN 25.2TN 27.5TN 9.5%
Op. revenue①
2,634.1 2,821.8 686.8 730.4 6.3%
Op. expense②
2,306.2 2,476.1 598.0 638.1 6.7%
Bad debt expense 317.5 392.9 101.5 113.1 11.5%
SG&A 752.2 768.0 180.6 174.1 -3.6%
Op. income 323.6 347.4 88.6 93.1 5.1%
Non-op. income 77.3 68.0 20.4 37.8 85.8%
Equity method
income
68.9 60.8 18.5 33.6③
81.3%
IBT 400.9 415.5 109.0 131.0 20.2%
Net income 299.9 311.3 81.5 99.2 21.7%
ROA④
1.3% 1.2% 1.3% 1.5% 0.2%p
①, ② Excluding FX and derivatives effect ③ One-off effect of sales of HCBE shares
④ Net income / average balance of assets

6. Stable Financial Quality
①, ② 외환 및 파생효과 제외
③, ④ ’18년 4분기부터 IFRS15 시행에 따라 할인/판촉비를 순액 인식
⑤ 당기순이익 / 상품자산 평잔
4
Capital Adequacy
 Regular dividend paid out in Feb’19
(87.3BN KRW, payout ratio 30.9%)
 Long/short-term stress test result applied
 Lengthen liabilities maturity aligned with longer asset
maturity
15.2%
14.3% 13.9%
2017 2018 1Q19
154.2%
134.8% 128.7%
2017 2018 1Q19
2.0 1.7 1.8
3.3 3.5 3.6
5.3TN 5.2TN 5.4TN
2017 2018 1Q19
Adjusted capital
ratio
Cash
Credit line
ALM
Provision
Liquidity
Maturity
 Industry highest provision based on conservative policy
139.1%
119.2%
127.9%
2017 2018 1Q19
Substandard
and below asset
coverage

7. US
HCA
China
BHAF
Canada
HCCA
Germany
HCBE
’19
Strategy
• Reduce Lease
mix
• Stabilize
delinquency
• Diversify
financial support
• Diversify funding
structure
• Continue stable
growth
• Diversify product
(Used/Rent)
• Diversify product
• Improve pen rate
• Completed JV
conversion (Mar28)
• Stabilize operations
Product
Assets
(BN)
[USD] [RMB] [GBP] [CAD] [EUR]
IBT
(MM)
31.4 30.6 30.2
2017 2018 1Q19
24.3 23.7 24.5
2017 2018 1Q19
1.8 2.1 2.2
2017 2018 1Q19
1.5 1.6 1.7
2017 2018 1Q19
UK
HCUK
0.3 0.6 0.7
2017 2018 1Q19
102 141 90
2017 2018 1Q19
965 742 218
2017 2018 1Q19
35 40 9
2017 2018 1Q19
10 3
2017 2018 1Q19 2017 2018 1Q19
- Newly established Brazil JV entity with Santander in April’19 (Banco Hyundai Capital Brazil)
5Global Hyundai Capital: Coverage Expansion focused on HMG’s Strategically Important Markets
-18 -3-3 -23

8. Appendix

9. 1. Financial Statement
①, ② Excluding FX and derivatives effect
6
Consolidated Income Statement Consolidated Statement of Financial Position
(BN KRW) 2016 2017 2018 1Q18 1Q19
Op. revenue①
2,586.0 2,634.1 2,821.8 686.8 730.4
Loan income 944.3 940.0 981.6 250.3 229.6
Installment income 487.9 479.2 528.3 126.1 143.5
Lease income 873.0 933.6 1,004.3 244.2 268.8
Gain on sale of
loan receivables
105.9 96.3 101.0 16.0 39.3
Op. expense②
2,243.5 2,306.2 2,476.1 598.0 638.1
Interest expense 585.8 539.5 573.7 135.6 149.2
Lease expense 554.1 601.1 641.1 152.8 171.2
Bad debt expense 295.4 317.5 392.9 101.5 113.1
Loss on sale of
loan receivables
- 7.1 11.9 3.1 2.1
SG&A 726.5 752.2 768.0 180.6 174.1
Op. income 343.3 323.6 347.4 88.6 93.1
Non-op. income 60.2 77.3 68.0 20.4 37.8
Equity method
income
55.8 68.9 60.8 18.5 33.6
IBT 403.5 400.9 415.5 109.0 131.0
Net income 300.7 299.9 311.3 81.5 99.2
(BN KRW) 2016 2017 2018 1Q19
Assets 25,157.4 27,608.1 30,528.3 30,619.4
Cash and deposits 1,469.6 2,131.8 1,731.1 1,769.5
Securities 525.5 600.1 671.6 847.3
Loan receivables 8,689.4 9,656.9 9,777.5 9,737.1
Installment assets 9,296.5 10,040.9 12,081.9 12,602.7
Lease receivables 2,384.0 2,423.4 2,578.1 2,619.1
Lease assets 1,773.1 1,899.8 2,012.6 2,052.4
Tangible assets 270.5 260.8 242.7 236.0
Liabilities 21,371.8 23,538.7 26,371.5 26,470.0
Borrowings 20,077.6 22,015.0 24,288.3 25,106.4
Other liabilities 1,294.2 1,523.7 1,363.8 1,363.5
Equity 3,785.6 4,069.5 4,156.9 4,149.4
Capital 496.5 496.5 496.5 496.5
Capital surplus 406.3 408.3 408.3 388.6
Accumulated other
comprehensive income
-61.1 -38.2 -146.6 -112.9
Retained earnings 2,936.3 3,164.1 3,364.9 3,377.2
Non-controlling
interests
7.6 38.8 32.6 0.0

10. 2. Key Figures 7
(BN KRW/MM in local currency
of global entity) 2016 2017 2018 1Q19
Product assets 22,568.0 24,491.1 27,035.8 27,547.5
Auto 16,948.2 17,676.0 19,120.0 19,642.0
New Car 11,563.6 12,039.4 12,981.0 13,414.8
Lease/Rent 4,041.6 4,230.4 4,543.2 4,635.9
Used Car①
1,343.0 1,406.3 1,595.8 1,591.3
Non-Auto 5,619.8 6,815.0 7,915.7 7,905.5
Personal Loan 2,094.5 2,407.4 2,736.0 2,682.4
Mortgage 2,457.4 3,045.6 3,739.7 3,839.4
Corporate 813.1 1,017.6 1,046.8 1,004.3
Other 254.7 344.5 393.3 379.5
Product
assets
(global)
US (HCA) 31,316.0 31,440.1 30,606.6 30,175.0
China (BHAF) 25,406.7 24,319.0 23,737.3 24,498.3
UK (HCUK) 1,622.7 1,849.7 2,089.4 2,185.8
Canada (HCCA) 1,164.1 1,499.9 1,631.7 1,677.1
Germany (HCBE) - 261.8 566.2 678.2
(BN KRW) 2016 2017 2018 1Q19
Quality 30+% 2.06% 2.05% 2.11% 2.02%
Substandard and
below asset ratio
2.7% 2.3% 2.8% 2.5%
Total provision
/30+ receivables
158.2% 155.6% 157.7% 161.2%
Leverage②
6.7x 7.0x 7.4x 7.5x
Total assets 25,048.6 27,136.5 29,634.6 30,440.7
Total capital
(previous quarter)
3,724.5 3,890.4 3,990.6 4,035.4
Funding③
19,942.5 22,076.8 24,446.7 25,154.7
Domestic 14,323.8 16,220.5 18,657.7 19,221.8
Offshore 5,618.7 5,856.3 5,789.0 5,932.8
Maturity 134.9% 154.2% 134.8% 128.7%
Liability maturity 2.0Y 2.3Y 2.2Y 2.3Y
Asset maturity 1.5Y 1.5Y 1.7Y 1.8Y
Liquidity④ 4,543.2 5,341.1 5,191.9 5,393.3
Cash 1,339.0 2,016.1 1,710.4 1,750.8
Credit line 3,204.2 3,325.0 3,481.5 3,642.5
② Based on separate financial statement ③, ④ Managed basis
① Purchasing funds only
(total used car assets including lease and secured loan is 2.4TN as of ‘19)