Hyundai Motor Company 2012 1st Quarter Business Results

April 26, 2012

Cautionary Statement with Respect to Forward-Looking Statements

In the presentation that follows and in related comments by Hyundai Motors 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 Independent Auditor; final data will be included in HMCs Independent auditors 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 corporations 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.

Table of Contents
Sales Summary Financial Summary Revenue & Profit Analysis Appendix

Sales Summary

Retail Sales Wholesale

Sales Summary : Retail Sales

2011 1Q 2012 1Q
(Unit : 1,000 vehicles)

-7.1% +6.8% +12.8%

167 98 110 169 181 155 143 164

+14.7%

Korea

E U

China

US

+11.5%
+21.3%

337

409

914 2011

1,019 2012

Others

Global Retail Sales

Source : Company data (Includes shipment of LCV / Excludes CKD sales)

Sales Results by Key Region

(Unit : 1,000 vehicles)

Korea Korea
45.9% 46.7%
4.7%

US US
4.7%
+14.7%

EU EU
2.4% 2.9%

-7.1%

167
46 19

155
40 16 99

164
36

+12.8%

143
27

98
2 34

110
2 38

102

116

128
62 70

2011 1Q

2012 1Q

2011 1Q

2012 1Q

2011 1Q

2012 1Q

PC

RV

CV

M/S

PC

RV

M/S

PC

RV

CV

M/S

Source : Company data / Automotive News / ACEA

Despite of market demand decrease (8.6% ) in 12 1Q, M/S has increased

Lowest level of incentive spending (12 1Q Avg. : $823 / units)

Robust sales growth in countries covered by direct sales subsidiaries (Germany yoy 20% / France yoy 69% )

Sales decrease due to weakened new launch effect of HG & MD compared to 11 1Q

Maintained strong sales trend of key models (YF 55k / MD 44k)

Despite of weak market demand (yoy 7.4% ) in 12 1Q, sales of i40 and ix 35 increased

Sales Summary : Wholesale

Sales Volume by Plant Sales Volume by Plant
(Unit : 1,000 vehicles)

Sales Mix by Segment Sales Mix by Segment

+16.7%

1,073
Korea 484 China India US 185 Czech Turkey 161 Russia 20 55 2012 1Q

8% 17%

6% 17% CV

919

411

18%

19%

RV Mid-Large PC Small PC

182 151 84 57 2011 1Q 20 14

57%

58%

85 83

2011 1Q

2012 1Q

Sales volume by plant (Wholesale basis)

Financial Summary (K-IFRS)

Statement of Income Financial Summary by division Statement of Financial Position Cash Flow Highlights

Consolidated Statement of Income

(KRW Billion)

2011 1Q
Sales Revenue Gross Profit
Margin (%)

2012 1Q 20,165 4,639

23.0

Change
10.6% 11.6% 4.7% 82.8% 24.9% 27.7% 30.6%

18,233 4,157
22.8

SG&A
Portion (%)

2,434
13.4

2,548
12.6

Other Operating Income Operating Profit

Margin (%)

105 1,827
10.0

192 2,283
11.3

Recurring Profit
Margin (%)

2,465
13.5

3,148
15.6

Net Profit
Margin (%)

1,877
10.3

2,451
12.2

Depreciation Amortization EBITDA

385 154 2,367

409 207 2,899

Consolidated Statement of Income (K-IFRS), Business results of BHMC is accounted in equity income accounting Net Profit includes non-controlling interest

Financial Summary by Division

(KRW Billion)

2011 1Q
Sales Revenue
Automotive Finance Other

2012 1Q 20,165
17,249 2,082 834

Change
10.6% 11.0% 11.2% 1.8% 24.9% 41.8% 13.6% 101.8%

18,233
15,541 1,873 819

Operating Profit
Automotive Finance Other
Consolidation adjustment

1,827
1,506 325 27 31

2,283
2,136 370 55 278

Consolidated Statement of Income (K-IFRS)

Consolidated Statement of Financial Position

(KRW Billion)

2011
Assets
Current Assets Cash & Cash Equivalents*

2012 1Q
114,042 51,965 17,180 71,605 35,189 44,299 6,775 42,437
147.7 104.4

Change
4,562 3,039 1,765 2,453 2,025 960 128 2,109

109,480 48,926 15,415 69,152 33,164 43,339 6,647 40,328

147.5 107.5

Liabilities
Current Liabilities Short & Long-Term Debt Provision

Equity
Current Ratio (%) Debt / Equity Ratio (%) Net Debt EBITDA / Interest Expense

27,924 17.2 x

27,119 26.1 x

805

Consolidated Statement of Financial Position (K-IFRS) Cash & Cash Equivalents : Cash & cash equivalents + Short-term financial instruments

Consolidated Cash Flow Highlights

(KRW Billion)

+ 616 + 2,452
Depreciation / Amortization

720 1,294
Tangible / Intangible Asset Others

7,285

6,232
Net Income

Beginning Cash Balance

Consolidated Cash Flow Highlights (K-IFRS) Above figures includes consolidation adjustments by business division (Automotive / Finance / Others)

Ending Cash Balance

Revenue & Profit Analysis

Sales Revenue Analysis COGS and SG&A Net Non-Operating Income

Sales Revenue Analysis

Sales Revenue Sales Revenue
(KRW Billion)

Positive //Negative Contributors Positive Negative Contributors

Positive Factors

20,165

17,249 15,541

1,873 819

2,082 834

2011 1Q
Automotive

2012 1Q
Finance Others

Consolidated sales revenue excludes sales revenue of BHMC Consolidated sales revenue by business division (Automotive / Finance / Others)

18,233

+ 1,932
( 10.6% )

Improved global sales Unit sales : + 16.7% (919K

1,073K)

KRW depreciation against the USD USD / KRW 1,119.3 1,130.3 (1.0% )

Negative Factors KRW appreciation against the EUR EUR / KRW 1,540.4 1,489.5 (3.3% )

COGS and SG&A

COGS COGS
(% of Revenue)

SG&A and SG&A and Other Operating Income //Expense Other Operating Income Expense
(% of Revenue, KRW billion)

SG & A 0.2%pt
Salary & wage Marketing Expense Sales warranties Warranty Provision Other

1.2%

2,329
2.4%

2,356
2.7%

77.2%

77.0%

4.8%

3.7% 0.1% 1.0%

2,434
Other income/ expense (net) F/X transactions Other

2,548

0.4% 1.6%

5.1% 4.1%

105
2011 1Q 2012 1Q

0.1% 0.5%

0.5% 0.4%

192

2011 1Q

2012 1Q

Consolidated Statement of Income (K-IFRS)

Net Non-Operating Income

(KRW Billion)

Financial Income Financial Income

Financial Expense Financial Expense

Equity Earnings Equity Earnings

779

572 274 254 189 188

2011 1Q

2012 1Q

2011 1Q

2012 1Q

2011 1Q

2012 1Q

2011 1Q : 637.1

Net Non-Operating Income

2012 1Q : 865.6

Consolidated Statement of Income (K-IFRS)

10

Appendix

Overseas Plant Operations Statement of Income (Quarterly)

Overseas Plant : HMMA & BHMC

(Unit : 1,000 vehicles / KRW Billion)

US Plant (HMMA) US Plant (HMMA)

Sales Volume Revenue

China Plant (BHMC) China Plant (BHMC)

Sales Volume
Elantra Sonata Others

Revenue

Sonata

Elantra

Tucson

2011 1Q 2012 1Q

Chg

2011 1Q 2012 1Q

Chg

84

85
Revenue

1,558

1,618

4%

182
34 42 14

185
Revenue

2,933

3,054

4%

28

29

50

31 32

56

56

92

72

2011 1Q

2012 1Q

2011 1Q

2012 1Q

Above figures are standalone results base

11

Overseas Plant : HMI & HAOS

(Unit : 1,000 vehicles / KRW Billion)

India Plant (HMI) India Plant (HMI)

Sales Volume
i10 Eon i20 Others

Turkey Plant (HAOS) Turkey Plant (HAOS)

Sales Volume
Accent Matrix i20

Revenue

Revenue

161 151
36 44 34 32 25
Revenue

2011 1Q 2012 1Q

Chg

2011 1Q 2012 1Q Chg

1,238

1,251

1%

20

20

Revenue

292

322 10%

14 18

75

66
6 2

2011 1Q

2012 1Q

2011 1Q

2012 1Q

Above figures are standalone results base

12

Overseas Plant : HMMC & HMMR

(Unit : 1,000 vehicles / KRW Billion)

Czech Plant (HMMC) Czech Plant (HMMC)

Sales Volume
i30 Venga (Kia) ix20 ix35

Russia Plant (HMMR) Russia Plant (HMMR)

Sales Volume Revenue

Revenue

Solaris

Rio (Kia)

2011 1Q 2012 1Q

Chg

2011 1Q 2012 1Q

Chg

83
Revenue

907

1,513 67%

55

Revenue

182

715 292%

57
10 13

40 24 11

14
34 32 14 2011 1Q 2012 1Q 2011 1Q

31

2012 1Q

Above figures are standalone results base

13