IVT : Intelligent Variable Transmission, AMT : Automated Manual Transmission. · Sonata G 2.0 CVVL (2019.4). 13.3 km/ℓ. 11.6~12.3.
Strategy 2025 – Strategic Direction (Smart Mobility Device) ... Operating Profit Forecast. Market. Demand. HMC. Target. 0.4%. Outperform the market.
HMC Investor Presentation
Hyundai Motor Company June 2020
Recent Updates
Global Retail Sale
P. 2
Geographical Sales Mix
P. 3
Market Updates
United States
P. 4
China
P. 5
Korea
P. 6
W. Europe
P. 7
India
P. 8
Russia / Brazil
P. 9
2020 Global Sales (Retail Sales)
Europe2
34.4%
171 113
China
37.4%
237 148
2019 Apr YTD
2020 Apr YTD (Thousand units)
Korea
9.9%
United States
18.8%
255 230
209 170
HMC Global Sales3
26.2%
23.8%
India
40.3%
Russia
22.7%
Brazil
30.7%
Others1
27.0%
167 100
58 45
63 43
274 200
1 MEA, Asia-Pacific, Other regions, Commercial vehicles(ex. Korea CV) 2 Western Europe excluding CV 3 Retail sales including CV and overseas CKD ('19 : 11,754 units, '20 : 10,701 units)
2
1,434 1,059 Sales
1,195 911
Sales
(ex.China)
Geographical Sales Mix
Sales by Region
Regional Characteristics
Korea AMEA
N.America India
W.Europe S. America
China Others
E.Europe
Developed Market
SUV
13.7% 18.0% 10.1%
15.3% 18.5% 11.8%
15.7% 17.9% 11.9%
16.7% 19.0% 12.4%
21.8%
Developed Market
56.6% of 23.4% Total Sales
SUV
Market Demand
54.3%
51.9%
Market
Hyundai
Opportunity to win shares (Ex. GV80 in US market)
Cyclical Slowdown
24.5%
18.1%
17.5%
4.4% 7.5%
10.4%
5.3% 6.9%
11.7%
6.7% 4.6%
2016
7.8% 4.7%
2017
(Company Data, Wholesale)
5.2% 6.6%
12.0%
8.1% 5.1%
2018
14.9%
5.4% 7.2%
11.5%
7.9% 5.2%
2019
11.5%
9.5%
6.0% Emerging 7.0% Market
10.2% 33.9% of Total Sales
6.0% 4.7%
2020 Apr YTD
Competition
Intense
Green Regulation
Imminent Pressure
Disruptive Forces
High
(Ex. ADAS)
3
Emerging Market
SUV
32.7% Market
38.5% Hyundai
Outperform market growth
Cyclical Recovery
Moderate
Mid to Long term Pressure
Low
(Ex. Car Sharing, Hailing)
US Market
US Market sales
Industry
5,338 34.8% 16.9% 48.3%
-20.9%
4,220 30.4% 20.5%
49.2%
2019 Apr YTD
2020 Apr YTD
SUV
Pick-Up
Sedan
Hyundai (Thousand units)
3.9% M/S
209 -18.8%
51.8%
4.0%
170 40.8%
48.2%
59.2%
2019 Apr YTD
2020 Apr YTD
SUV
Sedan
(Company Data, Retail Sales)
Full Line-up of SUV
2018
Kona
Santa Fe
Tucson F/L
Entry CUV
M/S 8.1%
Compact SUV
M/S 8.2%
M/S 4.8% Sub-Compact SUV
2019
Nexo
Palisade
Venue
Green Car
Mid-Size SUV
M/S 4.4%
Entry CUV
M/S 1.8%
4
Mid-to-Long Outlook
(Thousand units)
4.4% 775
4.0% 686
Year of Turn-Around
3.9% 678
4.2% 710
M/S (%)
29% 2016
36% 2017
45% 2018
52% 2019
SUV (%) 2023(F)
2019
2020 ~
Hyundai
· Palisade · Sonata · Venue
· Elantra · Santa-Fe F/L · Tucson · Santa Cruz
Genesis · G90 F/L
· GV80 · G80 · GV70
Regional HQ System
Enhanced dealer Competitiveness
Focusing on market & customer
Optimizing volume & profit
Reducing fleet sales Improve residual value
China Market
Industry Demand
(Thousand units) 21%
84%
50%
2019 3%
2020
1,995 1,585
Jan
COVID19 1,193 192
Feb
1,925 965
Mar
1,533 1,488 1,515
Apr
May
Hyundai Sales
(Thousand units) Inventories
Wholesale
Retail
2020 Market Strategy
Maximizing new car sales
Reducing dealer inventories
Optimizing
Margin
production
& M/S
Recovery Improving sales
Competitiveness of EVs
New Model Line-up
Q4 2019
2020
66 M/S (%) 2.0%
32 YoY (%) +0.3% 40%
'20 Jan
0.5%
1
7
97% 79%
'20 Feb
Sales by Model
(Thousand units, Retail sales)
3.1%
30 35 51% 22%
'20 Mar
22%
20%
11% 10% 10% 7%
2.3%
34
40
32% 13%
'20 Apr
237 (`19. 1~4)
21% 16% 14% 13% 8% 7%
148 (`20. 1(3~64%))
Elantra ix35 La Festa Celesta ix25 Mistra Others
(C2-Sedan) (SUB-C) (C2)
(C2) (SUB-B) (D-Sedan)
5
Sedan
Verna F/L
SUV
ix25
EV
Ensino EV
(Launch schedule is subject to change)
Sonata Elantra Mistra
New China MPV ix35 F/L
La Festa EV
More to come
Korea Market
Industry Demand
- Quick rebound in both demand and Sales after COVID 19
(Thousand units)
10.4%
2019 8%
2020
200.0
15%
18%
0.0%
YoY (%)
180.0
-20.0%
-40.0%
160.0
173.7
167.8
-60.0%
140.0
157.4 COVID19
155.6
154.2
-80.0%
-100.0%
136.6
120.0
-120.0%
116.8
121.0
-140.0%
100.0
99.7
-160.0%
80.0
Jan
Feb
Mar
Apr
May
-180.0%
Hyundai Sales
(Thousand units)
90.00
M/S (%) 80.00
40.7%
70.00
39.4%
60.00
60.4
50.00
47.6
40.00
30.00
Jan
53.4
39.3 Feb
2019 41.6%
2020 45.0% 42.3% 43.0%
41.0%
70.1 72.2
71.4 71.0
39.0% 37.0% 35.0%
33.0%
31.0%
29.0%
27.0%
Mar
Apr
25.0%
6
Improving Product Mix
- Large sized sedan and SUV sales continued to increase
659 26% 22% 10% 23% 18% 2016
689 26%
19% 8% 31%
16%
2017
721 25%
28% 9% 25% 14%
2018
742 22%
32%
8% 27% 10%
2019
159
24% 29% 8% 29% 7%
Q1Q1 2020
Others SUV Genesis mid-large small
Strong New Vehicle Cycle to continue
2018 ~ 19
2020
Sedan
Sonata Grandeur F/L
New Elantra
Genesis
Genesis SUV New Genesis Genesis SUV
GV80
G80
GV70
SUV
Palisade Venue
New Tucson Santa Fe F/L
W. Europe Market
Sales and M/S Trend
2.9% M/S
495 Sales*
3.0% 528
3.0% 539
SUV Sedan Others
2.7%
3.1%
536
SUV Portion
41%
2016
39% 2017
45% 2018
51%
49%
103
2019
Q1 2020
Green-car Sales Trend
BEV M/S
4.5%
Green-car M/S
1.3% 1.0%
3.3%
Sales*
5 4 1
2016
23 2 15
6 2017
EV 6.4% 4.2%
FCEV HEV PHEV
8.2%
7.0%
5.4%
5.6%
59 5
37 6 17
13 2018
24
31 2019
2 1 1 Q1 2020
- New powertrain & platform with better fuel efficiency
2020
i10
i20
i30 F/L Kona F/L Tucson
EU market volume models (sales portion : 80% )
* Europe Market : EU + ETFA * Thousand units, Retail Sales
- Maximize EV & FCEV sales and Expand green-car line-up
2018
2019
2020
New Model
Line-up
· Kona EV · NEXO
HEV PHEV
1
1
· Kona HEV · IONIQ F/L
EV FCEV
2
1
· Greener SUV Line-up
- 48V mild HEV, HEV, PHEV
· Expand Kona EV supply
7
India Market
India Sales
Industry
1,084 11.8% 22.8%
-39.3%
65.2%
658 12.9% 24.9%
62.2%
2019 Apr YTD
Sedan (Source : SIAM)
2020 Apr YTD
SUV Others
Hyundai
(Thousand units)
M/S 16.2%
16.4%
175 -38.2%
75.5%
108 65.3%
24.5%
34.7%
2019 Apr YTD
2020 Apr YTD
SUV Sedan
(Company Data, Wholesale)
Strong M/S in SUV-Low segment
SUV-Low Segment in India
632
710
735
(Thousand units)
158
107
17.0% 2017 Hyundai Rest
123 17.3% 2018
171 23.3% 2019
38 23.9% 2020 Apr YTD
Winning M/S with Refreshed Line-up
Venue
2019
Kona EV
New Launch Full Model Change
i10
India's First Fully Connected Car
Creta
India's First Premium EV
2020
Compact Sedan i20
SUV-Low
Compact Sedan
Crucial Market in the Long-run
Population
· Fastest growing among major EM · Second largest after China - 1.35 Billion(2018, World Bank)
Economy
· Fastest GDP growth among major EM - 5.9%(2018), 7.5%(2021, World Bank)
Motorization
· Lowest among major EM - 35 vehicles per 1,000 capita (2017)
8
Russia/Brazil Market
Russia
Industry
Hyundai
392 8.0%
41.8%
(1.2%)
387 8.0%
42.8%
50.2%
49.2%
Q1 2019
Sedan
Q1 2020
SUV
Others
Market Demand Trend
2020 2019
162 160
102 103
122 128
(Thousand units)
(0.1%)
42
42
58.1%
64.0%
40.9% Q1 2019
(Source : Company Data)
35.0% Q1 2020
Sales Trend
2020 2019
12 11
15 15
16 17
Brazil
Industry
Hyundai
581 16.1% 20.3%
63.6%
(8.2%)
534 16.1% 22.3%
61.6%
Q1 2019
Sedan
Q1 2020
SUV
Pick up
Market Demand Trend
2020 2019
(Thousand units)
(15.5%)
45 25.9% 72.5%
38 28.2% 68.4%
Q1 2019
(Source : Company Data)
Q1 2020
Sales Trend
2020 2019
184 191
193 190
200 156
13 13
15 16
16 10
Jan
Feb
Mar
Jan
Feb
Mar
Jan
Feb
Mar
Jan
Feb
Mar
Rank Brand Model
1 Hyundai Creta
2 Renault Duster
Creta (SUV-B)
3
Lada
4X4
* As of Q1 2020
* New Creta launch in 2021
Sales 18.8 7.1 6.7
M/S 33.0% 12.4% 11.7%
YoY 12.2% 12.4%) 11.7%)
Rank Brand Model
1
GM
Onix
2
Ford
Ka
HB20 (PV-B)
3 Hyundai HB20 * As of Q1 2020
* New HB20 launched in Oct.2019
9
Sales 67.1 32.4 26.7
M/S
YoY
25.5% (10.7%)
12.3% (29.5%)
10.1% (28.3%)
Retaining Core Strength
Next Design Philosophy
New Model Big Cycle Cost Innovation
Smartstream 3rd Generation Platform
P. 11 P. 12
P. 13 P. 14
New Design Philosophy
DESIGN MISSION
Be the Hyundai Creating emotional values in design
DESIGN IDENTITY
SENSUOUS + SPORTINESS
Emotional values In design
Innovative solutions In design
DESIGN SIGNATURES
DESIGN MISSION
Being Desirable Audacious, Progressive, Distinctly Korean
DESIGN IDENTITY
ATHLETIC + ELEGANCE
Sporty & Energetic
Prestige & Exclusive
DESIGN SIGNATURES
Hyundai Signature Look
Hidden DLR signature The light architecture &
Parametric Jewel
Human-Centered Space
Human-Centered Space
Smart Living Space
Emotional haptic & Sophisticated details
Intuitive & connected interface
Sustainable & Progressive
QUAD LAMPS EVOLVING CREST GRILLE
DESIGN STRATEGY
Hyundai Look Creating own spirit
Design based on the evolving future customer needs and desires
G-MATRIX DESIGN STRATEGY
Family Look
Hyundai Look
11
PARABOLIC LINES BEAUTY OF SPACE
New Model Big Cycle
Entering New Model Big Cycle
Refreshing volume models
Started from New Sonata launched in Q2 2019
Expanding SUV line-up
Entered new SUV segment by launching Palisade and Venue
Sonata
Elantra
Ix25 (Creta) Tucson
2014
2015
Grandeur
Genesis G70
Elantra
Sonata
Grandeur F/L
New Genesis G80
New Genesis G90
Kona
Venue
2016
Santa Fe
2017
Palisade
2018
12
2019
New Creta
New CUV
New Tucson
Genesis SUV GV80
2020
Genesis SUV GV70
New SUV
2021~
Smartstream
Fuel efficiency Roadmap
Fuel efficiency improvement
Improve average fuel efficiency by 25% (2015 - 2020)
- 11% from 2019 to 2020 and 14% from 2015 to 2018
18%
+5%pt
23%
+2%pt
25%
Improve fuel efficiency of powertrains & vehicles
Smartstream
3rd gen. platform
Weight reduction
Strengthen fuel efficiency technologies
48V mild HEV
ISG · DCT
Solar roof charging
Expand eco-friendly car sales volumes
· Eco-friendly car sales : 2015 45 thousand 2019 200+ thousand
· Sonata G 2.0 CVVL (2019.4)
LF
11.6~12.3
+10.8%
DN8
13.3 km/
· Sonata HEV G 2.0 (2019.7)
LF
17.4~18.0
+11.7%
DN8
20.1km/
· Sonata G 1.6-GDI with CVVD (2019.9)
Line-up strategy
Next-generation powertrains
Smartstream · Redesign structure to optimize fuel efficiency
· Engine : Refresh 5 Gasolines & 3 Diesels (inc. HEV)
· T/M : Improve current transmissions T/M : Newly develop IVT, AMT, and etc.
· World's 1st CVVD technology for G1.6 T-GDI in 2H
G 1.6
CVVD (Continuously Variable Valve Duration)
· The valve control technology regulates the duration of valve opening and closing according to driving conditions · Optimizes both engine performance and fuel efficiency
Complete line-up to meet tightened regulations
2018
2019
2020 ~
Produce
Apply with
Complete
1st gas.& diesel 3rd gen. platform engine line-up
Gasoline Diesel
Elantra F/L 8
1.6 + IVT
Sonata Sonata Grandeur
4
9
11
2.0 CVVL 1.6 T-GDI 2.5 GDI
GV80 3
2.5 /3.5 T-GDI
Tucson F/L 8
1.6 GV 80
GV80 G80
1
3
3.0 2.2
· IVT : Intelligent Variable Transmission, AMT : Automated Manual Transmission
13
3rd generation platform
3rd generation integrated platform
Applied to the Apr. 2019 8th generation Sonata
Strategic considerations
· Design and performance · More SUVs · Genesis · EVs · New PT & weight reduction · Regulations (Safety · Emission)
+
· Cost reduction & efficiency
3rd gen. platform
Design friendly Energy - efficient Fun to drive Safety - first
1 Dynamic design ratio & more interior space
2 · 3 Enhanced fuel efficiency & driving performance
Hood
Overall height
30~50mm
30mm
Overhang Arranged lower
20mm Wheelbase +35mm
· Improve power & fuel efficiency with Smartstream & lower underbody
· Active driving performance, immediate response, and more stability
4
Weight reduction & reinforced structure
· Weight reduction : 55kg+ · Average strength : +10%
Enhanced cost structure
Target of Standardized parts (FF Mid-Large platform)
DN8
+10+ %pt
% of Standardized parts in total material cost
LF Sonata
DN8 Sonata
Material cost reduction
Increase parts commonization with more standardized parts and integrated procurement
R&D manpower & Investments reduction
Reduce investments and manpower of design and test for standardized parts
Type of platform
2019
FF
Mid-Large
2020 ~
Small-Mid
Micro-Small
FR EV
14
Genesis-Large
Genesis-Mid
LCV
EV-dedicated models for Hyundai & Genesis
A Head of Paradigm Change
Strategy 2025
Preparing for the Future Green Car
Clean Mobility Trend Our Green Car Focus
ADAS Mobility As a Service
P. 16 P. 19
P. 20 P. 21
P. 22 P. 23
Strategy 2025
Smart Mobility Solution Provider
16
Strategy 2025 Strategic Direction (Smart Mobility Device)
Smart Mobility Device
Among global top 3 brands 17
Strategy 2025 Growth Strategy (Smart Mobility Device)
Product portfolio
18
Preparing for the Future 5 Core Investment Area
Automotive
Production R&D
Quality Control
Non-Automotive
Steel · Logistics Finance IT
Internal Resources
Strategy & Technology Division
S&T Division HQ
Global Open Innovation Hubs
Seoul
Silicon Valley
Beijing
Berlin
Tel Aviv
Open Innovation
5 Core Investment Area
Investment Collaboration
MaaS
Smart Mobility Solution Business
Smart City
Robo-taxi / Smart City
Energy Fuel Cell / ESS
Robot Wearable Robot
A.I.
Autonomous Vehicle
"Game Changer" "Smart Mobility Service Provider"
19
Clean Mobility Trend
Fuel Economy Regulation
Avg. Regulation (CAFE)
CO2 Regulation
Fuel Economy Regulation
Weight/Driving Range Comparison
Weight
EV
FCEV * Size represent the relative annual energy consumption
Bus & Truck
Small Cars/Urban mobility
Medium to Large Cars, Fleets and Taxis
Global Market Share Trend in Green Car
85%
75%
70%
64%
EV
FCEV
HEV
PHEV
54%
56%
57%
* Source : 2017 Hydrogen Council
Cost Parity of EV & FCEV
Cost
Battery System
Fuel cell System
Driving Range
15%
17%
9%
13%
6% 0.0%
101.%0%
0.1%
2014
2015
2016
* Source : IHS Markit April.2020
23% 13%
0.1% 2017
30% 16%
0.1% 2018
31%
13% 0.2% 2019
28%
15%
0.2% 2020.1Q
20
355km
(Equivalent Range) * Source : Bloomberg New Energy Finance forecast(2017)
Driving Range
Our Green Car Focus
Battery Electric Vehicle
Fuel Cell Electric Vehicle
New Models & EV platform Global Top 3
Global leader of hydrogen community
EV Dedicated Platform
Product Enhancement
< E-GMP >
Cost Efficiency
Business Expansion
A Seg
Expand line up B&C Seg
E Seg MPV
New business model
Charging Infrastructure
Battery Related Biz
HMC Global Market Share in EV Market
HMC M/S
(Rank)
0.0% (-)
0.0% (-)
1.1% (17th)
2.2% (16th)
2.8% (11th)
1,188
4.3% (5th)
1,349
5.5% * Ex-China (5th) 4th
718
Global
439
Demand 177
312
287
2014
2015
2016
2017
2018
2019 2020.1Q
* Source : IHS Markit April.2020
21
FCEV Production Capacity (Thousand units) HMG Cumulative Investment (in KRW tri.)
0.3 11 2020
1.5
40 2022
2.9 130 2025
FCEV 1.0
Establish business foundation
FCEV 2.0 (2023~)
Price competitiveness & System downsizing
7.6 500
2030 FCEV 3.0 (2030~) Line up & value chain
expansion
ADAS
2015 ~ 2018
2018 ~ 2019
2020 ~ 2022
Adopt Safety ADAS on all vehicles
Offer higher ADAS technology to the market
Real Road Driving of NEXO (Lev. 4)
R&D Focus
Sensors
Sensor Balancing
Control Platform
Cockpit Module
22
Map
V2X Infra
Car Cloud
Mobility as a Service (MaaS)
Global Investment and Collaboration
Mid-to-Long term MaaS Business Model
Investment
Building Platform (Phase I)
Platform Business (Phase II)
Building integrated service platform
Connecting global mobility belt from developed to emerging markets
Developing platform business model
Commercializing Robo-taxi
Grab
· ASEAN, Car Sharing & Hailing
Ola
· India, Car Sharing & Hailing
Revv
· India, Car Sharing
Car Next Door · Australia, P2P Car Sharing
Mid-term Focus Long-term Target
CaaS
· Rental, Subscription · Fleet operation + Maintenance
· Fleet Management Service (FMS)
MaaS
· Car Sharing + Car Hailing
· Smart Mobility Solution
Migo Yandex
· U.S.A., Mobility Service Platform · Russia, Robo-Taxi(LV4 Sonata, 2020 w/ Mobis)
TaaS
· Robo-Taxi · Autonomous Shuttle
Careem
· MEA, fleet and service (5k units by 2019)
CaaS - Car as a Service MaaS Mobility as a Service TaaS Transportation as a Service
23
Collab.
2025 Financial Strategy
Business Strategy
P. 25
2019 results & 2020 Target
P. 26
Mid to Long-term Target
P. 28
Cost Innovation Committee
P. 29
Shareholder Return Policy
P. 30
Long-term Investment Plan
P. 31
Investment Resources
P. 32
Summary of Business Target
P. 33
2025 Business Strategy
Long-term Financial
Target
Strategy 2025
Shareholder Return
Future Investment
ROE Target
Shareholder Value
Declare long-term target · strategy and communicate the growth strategy roadmap
Balanced shareholder return policy considering increasing
strategic investments
Achieve ROE target based on sustainable profit recovery
25
Summary of 2019
2018
2019
2020
Investment
30%
YoY Increase
Product
BoD
Culture Strategy
Accelerated turnaround
with new product launches + cost innovation
Strong foothold for future growth
with strategic investments including APTIV JV
26
Enhanced corporate-wide competitiveness
to be the Game Changer
2020 Business Target
Sales Profit
Reasonable volume target considering business environment and profitability
Continuous double-digit growth with profit-oriented management
Market Demand
+0.4%
HMC Target
Outperform the market
Operating Profit Forecast
2.5%
KRW 2.4T
New Model Product Mix Incentive Reduction F/X
-
Quality Cost Wage Expenses Others Division
-
5%
R&D
Marketing F/X
New Model Product Mix Incentive Reduction
Cost Innovation (YoY)
2018
· 2020 Industry demand : Company-data
2019 (E) 27
2020 (E)
Mid to Long-term Business Target
Automotive Division
7% OP Margin
+1%pt
8 Automotive Division
+ % OP Margin
Improved cost competitiveness of ICE · green cars
Regional Profit Center System
Cost Innovation Committee
· OP and OPM : automotive division + consolidation adjustment
Improvement
· Accelerated cost innovation · Genesis brand
Building strong growth foundation by securing high auto profitability
Limitation
· Accelerated electrification · Early stage investment in
service business
Expanding xEV based on
competitive cost
Foundation for mobility service
business
28
Cost Innovation Committee
Automotive OPM (%) Cost Improvement
7.0%
KRW34.5 T For 5 years
2.1%
11.9
10.1
5.9 4.3 2.3
2018 2019 2020 2021 2022
Commonization Electrification
Regional Cost Optimization
Sales-related Cost
Productivity Quality Cost
Genesis
Operational Efficiency
Strategic competitiveness
with company-wide cost innovation
Achieve target profitability
by continuous cost improvement
Effective bottom-up
Cost improvement activities
· OP improvement by revenue growth, improvement of COGS and SG&A
29
Shareholder Return Policy
2016-2018
4.2 Total Shareholder Return* KRW
T
Dividend
1.06T
Paid
2018 year-end0.8T + 2019 interim 0.26T
Average Shareholder Return Payout Ratio
(per Annum)
39%
94% of non-finance FCF
Apr. 2018
Buybackand cancellation (1%) / treasury share cancellation (2%)
Nov. 2018
Buyback(1%)
Share Repurchase
0.3T
Buyback
- 0.2T in2019 out of 0.3T repurchase announcement in 2018 - 0.1T repurchase for employee stock ownership
* Dividend + Buyback + Treasury Share Cancellation
30
Long-term Investment Plan
61.1 2020-2025 KRW
T of Investment
Core Business
KRW 41.1T
Investment for Growth
KRW 20.0T
R&D (KRW T) CapEx (KRW T)
Strategic Inv. (KRW T) Annual average of KRW 10T
10.0 10.1 10.4 10.5 11.1
9.1
6.1 7.8
1.7
1.8
1.9
2.0
2.0
2.6
0.1 3.3
0.9 4.0
4.3
4.7
4.5
4.7
4.5
4.5
2.7
2.9
3.2
3.5
3.7
3.7
4.0
4.0
2018 2019 2020 2021 2022 2023 2024 2025
· CapEx : with changed classification in 2019 (appendix)
· New model
26.5 Product · Genesis
· Fuel efficiency
· Mobility
7.8 New Biz. · AI, Robotics
· Energy, UAM
2.5
Autonomous · A.D. Driving · Connectivity
1
4
· New plants
9.7
· Dedicated EV
.
CapEx · Customerchannels
Electrification · EVproduction · Infrastructure
6
· Product includes capex in product development · Electrification : including all xEV
31
Investment Resources
2019 2020 2021 2022 2023 2024 2025
Resource (w/ shareholder return) Investment Plan
Cash Flow (KRW T)
Around
0.2
+2.4 +2.4 +2.0 +1.4
1.5
2019 2020 2021 2022 2023 2024 2025
2019 year-end 2020 2021 2022 2023 2024 2025 net cash*
Stable funding for future investment
via accelerated profit recovery through 2022
Positive cash-flow generation post 2022
Auto Liquidity (End 2019(E)) : KRW 10-12T
*Netcash: excludingfinancedivision
32
Summary of Business Target
2020 - 2025
5%
8%
KRW 61.1T
Profit-centered Management
to build foundation for sustainable growth
Business Transformation
through active investment and strong core biz strength
Shareholder Value Enhancement
based on earnings recovery + improved capital management
33
Governance
BoD & Key Improvements
P. 35
ESG Enhancement Roadmap
P. 36
Shareholder Return
P. 37
Share Buyback & Cancellation P. 38
BoD & Key Improvements
Committees of BoD
Board of Directors 11 Members
(5 Internal / 6 Independent)
Independent Directors Recommendation Committee
· Search the talents who can contributes independent directors · Recommend Independent director nominees for AGM
Corporate Governance and Communication Committee · Make decisions on shareholder rights related agendas
· Review major investments and transaction plans
Audit Committee
· Approve financial statements, internal auditing process · Designate external auditors and ensure to abide by laws
Compensation Committee *
New Committee
(Expected in 2H19)
· Approve directors' compensation policies and scheme · Determine directors' compensation cap for the following year
Achievements since 2018
Increasing shareholder involvement to bring better governance and sustainable growth
Board of Directors
Shareholder Recommended Director
· Minority shareholders actively involved in appointing directors who can represent them
Diversification of BoD members
· Newly joined BoD members added diversity in nationalities, expertise and perspectives
Expansion of BoD
· Number of BoD members increase to 11 from 9 with 6 outside directors
CGCC1
Shareholder Return
· Share buyback and cancellation to resolve the undervaluation of share price
Profit Level Commitment
· CGCC1) reviewed and approved CEO's operating income and ROE target
Long-term Investment Strategy
· 5 year R&D plan is necessary to be ready for the paradigm change in auto industry
1Corporate Governance and Communication Committee
35
ESG Enhancement Roadmap
Growing Importance of ESG
ESG is considered to be a key element for sustainable growth
Market participants(equity, credit, government, etc.) take ESG as a necessary criteria when making investment decisions and policies
Customers make purchasing decision and assign brand value based on ESG
Phase I
Awareness
(~2018)
Report the market's interest in ESG to top management
Offer ESG seminars to our Board members
Open dialogue with rating & consulting firms
Rank 1st place in Climate Change Actions by CDP
Phase II
Initiation
(~2019)
Involve actively with ESG rating agencies
(Sustainalytics, DJSI, MSCI)
Include ESG ratings as one of CEO's KPI
Share ESG matters with related departments
Phase III
Advancement
(~2020)
Establish corporate level management system for ESG
Review strategic approach
Coordinate with all related teams to build stronger ESG
36
Phase IV
Continuing Effort
(2021~)
Improve ESG practice to global peer level
Expand our exemplary activities to the group Maintain high scores and rankings
Shareholder Return
Shareholder Return
Payout Ratios
Total Dividend (KRW tri.) Buyback & Cancellation (KRW tri.) Total Return Amount (KRW tri.)
0.53 0.53
0.96 0.14
0.82
1.39 0.31
1.08
1.08 1.08
1.08
1.08
1.52 0.45
1.07
2013 2014 2015 2016 2017 2018
· Excluding Cancellation of treasury in Jul 2018 (2% of o/s shares)
1.41 0*.36 1.05
2019
to FCF (%) to Net Income (%)
447%
51% 51% 36%
71%
25% 17%
27%
20% 11% 17%
6%
2013 2014 2015 2016 2017 2018
59% 35%
2019
2017
Announced Dividend Policy
· Disburse 30~50% of free cash flow · Target peer level of payout ratio
Total Shareholder Return
· 1.1 trillion KRW (4,000won/share) · Payout ratios : 27% of NI / 50% of FCF
2018
Buyback and Cancellation
· 1% of o/s shares cancellation (Apr-Jul) · 1% of o/s shares buyback
(Nov 2018-Feb 2019)
Total Shareholder Return
· 1.1 trillion KRW (4,000won/share) · 0.5 trillion KRW of share buyback
37
2019
Shares Buyback
· 1% of o/s shares buyback
(Dec 2019-Mar 2020)
Total Shareholder Return
· 1.1 trillion KRW (4,000won/share) · 0.4 trillion KRW of share buyback
Share Buyback and Cancellation
Apr 27 2018
Nov 30 2018
Buyback & Cancellation : 1% of total issued shares Cancellation of treasury shares : 2%
Buyback : 1% of total issued shares
Dec 4 2019
Buyback : 1% of total issued shares
Buyback & Cancellation
Buyback & Cancellation KRW 380 Billion
2.9
Treasury shares Cancellation
KRW 559 Billion
5.7
(Unit : Million Shares)
Buyback* KRW 436 Billion
1.1*
2.8
Total Issued Shares
Treasury Shares Outstanding Shares
Dec 2017 Total issued : 285.5
16.8
(5.9%)
268.7
* Shares buyback in Dec 2019
38
(Unit : Million Shares)
Sep 2019 Total issued : 276.9
13.9
(5.0%)
263.0
Appendix
2020 Business Plan
P. 40
Wholesales by Region
P. 41
Statement of Income
P. 42
Recent Earnings by Division
P. 43
Finance Division
P. 44
2020 Business Plan (Wholesale)
(Thousand units)
2019
2020(P)
Total
Domestic
(including CV)
Overseas
4,426
742 3,684
4,576
732 3,844
North America
881
906
Europe
580
558
India
510
525
Russia
203
199
South America
303
331
China
650
730
Others
555
596
* '20 Business Plan includes 52,700 units of CKD sales
40
YoY
+3.4% 1.3% +4.4% +2.8% 3.9% +2.9% 2.2% +9.0% +12.3% +7.2%
Wholesales by Region
(Thousand units)
2019 Apr
2020 Apr
YoY
Korea
71
71
-0.5%
North America
69
24
-64.3%
Europe
45
12
-74.3%
India
42
-
-100%
Russia
18
3
-82.8%
South America
28
5
-82.1%
Others1
18
18
Sub-total
(ex-China)
318
133
China
50
34
-4.6% -58.0% -32.0%
Total2
369
168
-54.5%
1 MEA, Asia-Pacific, Other regions, Commercial vehicles(ex. Korea CV) 2 Wholesale including CV and CKD
41
2019 Apr YTD 2020 Apr YTD
YoY
255 268 188 175 67 87 166 1,205 181 1,390
230 257 131 108 54 53 137 971 97 1,071
-9.9% -3.8% -30.3% -38.2% -18.3% -39.4% -17.1% -19.4% -46.3% -23.0%
Statement of Income
(KRW Bil.)
Revenue Gross Profit
Margin (%) SG&A
Portion (%) Operating Income
Margin (%) Income before tax
Margin (%) Net Income
Margin (%) D&A
EBITDA
2017
96,376 17,578
18.2 13,003
13.5 4,575
4.7 4,439
4.6 4,546
4.7 3,529 8,104
2018
96,813 15,142
15.6 12,720
13.1 2,422
2.5 2,530
2.6 1,645
1.7 3,762 6,184
2019
105,765 17,676 16.7 14,037 13.3 3,639 3.4 4,197 4.0 3,219 3.0 4,012 7,650
42
Q1 2019
23,987 3,913 16.3 3,088 12.9 825 3.4 1,217 5.1 954 4.0 959 1,784
Q1 2020
25,319 4,265 16.8 3,402 13.4 864 3.4 724 2.9 553 2.2 1,059 1,923
YoY 5.6% 9.0% 10.2% 4.7% -40.5% -42.1%
Recent Earnings by Division
(KRW Bil.)
Revenue
Automotive
Portion (%)
Finance
Portion (%)
Others
Portion (%)
Operating Income
Automotive Margin (%) Finance
Margin (%)
Others
Margin (%)
Adjustment
2017
96,376
74,490 77.3
15,415 16.0
6,471 6.7
4,575
2,585 3.5 718 4.7 339 5.2 932
2018
96,813
75,265 77.7
14,958 15.5
6,589 6.8
2,422
1,062 1.4 747 5.0 105 1.6 508
2019
105,765
82,487 78.0
16,027 15.2
7,252 6.9
3,639
2,618 3.2 888 5.5 179 2.5 0
43
Q1 2019
23,987
18,606 77.6
3,848 16.0
1,533 6.4 825
507.4 2.7 267 6.9 60
3.9% -8.5
Q1 2020
27,843
19,555 77.2
4,176 16.5
1,589 6.3 864
569 2.9 218 5.2 71 4.5
5.3
YoY
5.6% 5.1% 8.5% 3.6%
4.7% 12.2% -18.1% 19.3%
Hyundai Capital America
Penetration Ratio
56%
54%
56%
50%
46%
2015
2016
2017
2018
2019
Earnings Trend
Revenue (KRW bil.)
Net Profit %
1.0%
1.2%
1.7%
2.2%
8,633 2016
9,124 2017
9,738
10,851
2018
2019
62%
1QQ1 2020 1.4% 2,508
Q11Q22002200
Funding Source
Secured Funding Mix [LHS]
100%
$40.1B 11.3x
$35B
$33B
Leverage D/E [RHS]
(Retail Loans)
$36.9B
$40.4B 12x
80%
60%
40%
20%
48%
7.6x 51%
6.6x 61%
6.8x 61%
10x 7.1x
8x
6x 61%
4x
0% 2016
2017
2018
2019
2x 1QQ1 22002200
Asset Quality & Net Charge-off (%)
100%
Prime
80% 1.7%
60%
Near Prime 1.9%
40%
77%
20%
78%
Sub Prime
Net Charge-Offs
(Retail Loans)
1.6% 78%
1.5% 80%
1.4% 80%
0% 2016
44
2017
2018
2019
1QQ122002200
Cautionary Statement with Respect to Forward-Looking Statements
In the presentation 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. 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.
Microsoft PowerPoint 2016 Microsoft PowerPoint 2016