Hyundai Motor Company Q2 2019 Business Results July 22, 2019

1

Cautionary Statement with Respect to Forward-Looking Statements

In the presentation that follows and in related comments by Hyundai Motor’s management, our use of the

words “expect,” “anticipate,” “project,” “estimate,” “forecast,” “objective,” “plan,” “goal,” “outlook,”

“target,” “pursue” and similar expressions is intended to identify forward looking statements.

The financial data discussed herein are presented on a preliminary basis before the audit from our

Independent Auditor; final data will be included in HMC’s Independent auditor’s report. While these

statements represent our current judgment on what the future may hold, and we believe these judgments

are reasonable, actual results may differ materially due to numerous important factors. Such factors

include, among others, the following : changes in economic conditions, currency exchange rates or

political stability; shortages of fuel, labor strikes or work stoppages; market acceptance of the

corporation’s new products; significant changes in the competitive environment; changes in laws,

regulations and tax rates; and the ability of the corporation to achieve reductions in cost and employment

levels to realize production efficiencies and implement capital expenditures at levels and times planned by

management.

We do not intend or assume any obligation to update any forward-looking statement, which speaks only

as of the date on which it is made.

Sales Summary

Table of Contents

P. 3 ~ 5

P. 6 ~ 12 Financial Summary

Appendix P. 13 ~ 19

Sales Summary

Global wholesale P. 4

Sales Analysis P. 5

Korea China N. America Europe

(Thousand units) Q2 2018 Q2 2019

Wholesale Wholesale (ex.China)

Russia India Others1 S. America

Global Wholesale

Global Demand

HMC Global Sales3

Korea

US

Europe2

China

India

Global

Q2 2018 Q2 2019 YoY

(10,000 units)

1 MEA, Asia-Pacific, Other regions, Commercial vehicles(ex. Korea CV) 2 Western Europe excluding CV 3 Wholesales including CV 4

200 185

+8.1%

141 217

△35.1%

215 224

△4.8%

149 156

△4.1%

51 52 127 137 140 141 83 79

△7.7% △1.0% +4.7% △1.5%

47.4 45.4 △4.3%

450.0 443.2 △1.5%

441.4 428.0 △3.0%

530.2 485.7 △8.4%

86.8 70.9 △18.3%

2,423.7 2,263.2 △6.6%

* Based on retail sales

1,105 1,192

△7.3%

961 971

△1.1%

Sales growth stemming from SUV models to continue in 2H with

launch of Genesis SUV

Global sales momentum to be strengthened with launches of

Palisade and New Sonata in the U.S.

Line-up expansion of green cars with Sonata HEV & Kona HEV Q2 2018 Q2 2019

8.9%

9.0%

29.2%

10.5%

1.5%

34.6%

6.2%

7.8%

9.0%

26.3%

8.4%

2.4%

40.1%

6.0%

• Continued strong sales momentum in

domestic market with 13 thousand unit sales

• U.S. market launch in June to further expand

SUV line-up

Outlook

• ‘Best Selling Car’ of domestic market in May

• Expanding line-up with the launch of Hybrid

& turbo models in 2H

• Recorded 16 thousand unit sales in India

since its launch in May

• Completing full SUV line-up by launching in

domestic market

Palisade

Sonata

Venue

5

Sales Analysis

Sales by segment (Thousand units)

1,192

1,105

A

B

C

D

Genesis

SUV

Others

Key Growth Factors

Financial Summary

Financial Summary P. 7

Revenue by Divisions P. 8

Revenue Analysis P. 9

Operating Income Breakdown P. 10

Operating Income Analysis P. 11

Non-operating Income & Net Income P. 12

Q2 2018 Q1 2019 Q2 2019 YoY QoQ

Revenue 24,712 23,987 26,966 +9.1% +12.4%

Cost of Good Sold 20,785 20,074 22,343 +7.5% +11.3%

Gross Profit 3,926 3,913 4,623 +17.7% +18.2%

Margin (%) 15.9% 16.3% 17.1%

SG&A 2,976 3,088 3,385 +13.8% +9.6%

Operating Income 951 825 1,238 +30.2% +50.1%

Margin (%) 3.8% 3.4% 4.6%

Non-operating Income

178 392 148 △16.7% △62.2%

Tax 318 263 387 +21.6% +47.0%

Net Income 811 954 999 +23.3% +4.8%

Financial Summary

7

(Billion KRW)

Revenue by Division

18,852 21,027

Q2 2018 Q2 2019

4,216 4,155

Q2 2018 Q2 2019

1,643 1,784

Q2 2018 Q2 2019

Sale increase from vehicle mix improvement

Continuous sales growth of others division

8

+2,175 (+11.5%)

△ 61 (△ 1.4%)

+141 (+8.6%)

Automotive Finance Others

(Billion KRW)

Sales decline from change in F/X

Revenue Analysis

Q2 2018 Q2 2019

24,712

26,966

+115

Volume

Product Mix, etc.

Currency

Others

9

△256

+1,864

+2,255 (+9.1%)

+307

+339

(Billion KRW)

145

88

60

266

250

451

1,039

Q2 2018 Q2 2019

951 1,238

70% 75% 80% 85%

Q2 2019

Q2 2018 84.1%

82.9%

10

+287 (+30.2%)

816 889

234 302 475

602

791

900

660

693

Q2 2018 Q2 2019

3,385

2,976

+410 (+13.8%)

△111

+588 (+130.3%)

Operating Income Breakdown

Operating Income by Division

(Billion KRW)

Automotive

Finance

Others

Adjustment

Cost of good sold

SG&A

Others1

Research

Expenses for Warranties

Marketing

Salary

1Commission fees , depreciations, etc.

11

Q2 2018 Q2 2019

951

1,238

△290

Volume / Mix improvement,

etc.

Finance Division

Currency Impact

+94

△101

+287 (+30.2%)

+264 +430

+264

△16

Operating Income Analysis

Cost Increase Other

Expenses

(Billion KRW)

236

81

9

55

△67

13

△90

△40

10

60

110

160

210

260

Q2 2018 Q2 2019

178

148

701

919

110

80

Q2 2018 Q2 2019

811

999

12

△ 30 (△ 16.7%)

+189 (+23.3%)

Non-operating Income & Net Income

Non-operating Income Net Income (Billion KRW)

Finance

Equity Income

Others

Non-controlling

Controlling

Appendix

Retail Sales by Region P. 14

Statement of Income P. 15

Statement of Financial Position P. 16

Cash Flows P. 17

(Thousand units) Q2 2018 2018 Q2 2019 2019 Q2 2019

Vs Q2 2018

2019 vs

2018

Korea 185 354 200 384 +8.1% +8.4%

US 186 335 192 343 +2.9% +2.5%

Western Europe 145 279 139 267 △4.7% △4.6%

India 130 263 123 250 △5.7% △4.9%

MEA 72 137 80 155 +10.9% +13.5%

Brazil 47 90 53 97 +11.5% +7.9%

Russia 49 88 47 89 △3.2% +1.6%

Others 164 293 149 271 △9.2% △7.3%

Sub-total (ex-China)

979 1,839 981 1,855 +0.3% +1.0%

China 174 349 159 350 △8.2% +0.5%

China (CV) 3 7 1 3 △63.4% △58.7%

Total 1,155 2,195 1,142 2,211 △1.2% +0.7%

Retail Sales by Region

14

(Billion KRW) Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 YoY QoQ

Revenue 24,712 24,434 25,231 23,987 26,966 +9.1% +12.4%

Gross Profit 3,926 3,693 4,056 3,913 4,623 +17.7% +18.2%

Margin (%) 15.9 15.1 16.1 16.3 17.1

SG&A 2,976 3,404 3,555 3,088 3,385 +13.8% +9.6%

Portion (%) 12.0 13.9 14.1 12.9 12.6

Operating Income 951 289 501 825 1,238 +30.2% +50.1%

Margin (%) 3.8 1.2 2.0 3.4 4.6

Income before tax 1,129 362 113 1,217 1,386 +22.8% +13.9%

Margin (%) 4.6 1.5 0.4 5.1 5.1

Net Income 811 306 △203 954 999 +23.3% +4.8%

Margin (%) 3.3 1.3 NM 4.0 3.7

Depreciation 576 600 611 605 629

Amortization 352 364 343 314 322

EBITDA 1,879 1,254 1,455 1,745 2,189

Statement of Income

15

(Billion KRW) End-Q1 2019 End-Q2 2019 Diff. % chg.

Asset 182,666 188,490 5,824 3.2%

Current Asset(a) 73,669 77,168 3,499 4.7%

Liabilities(b) 108,458 112,807 4,349 4.0%

Current Liability(c) 48,461 50,466 2,005 4.1%

Debt(d) 74,439 77,091 2,652 3.6%

Provision(g) 6,840 6,943 103 1.5%

Equity(e) 74,208 75,683 1,475 2.0%

Capital Stock 1,489 1,489 - -

Capital Surplus 4,195 4,195 - -

Retained Earnings 66,509 67,390 881 1.3%

Current Ratio(a/c) 152.0% 152.9%

Liability to Equity(b/e) 146.2% 149.1%

Debt to Equity(d/e) 100.3% 101.9%

State of Financial Position

16

(Billion KRW) Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019

Beginning 8,393 8,777 9,336 9,114 8,953

Net Income 811 306 △203 954 999

Depreciation 576 600 611 605 629

Amortization 352 364 343 314 322

Acquisition of Tangible △554 △707 △1,051 △1,047 △621

Acquisition of Intangible △317 △376 △651 △279 △351

Dividends paid △858 △266 - △4 △855

Others 373 638 729 △705 416

Ending 8,777 9,336 9,114 8,953 9,492

Cash Flows

17

Thank you