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Hyundai
Hyundai
Table of Contents
1. Executive Summary 2. Key Strengths for HMC 3. Future Strategies 4. Market Update by Region Appendix
1. Executive Summary
Executive Summary
Current Outstanding Performance
Strong Performance through the Cycle
Value Growth
Volume Growth
Green Car
4,099
4,392
3.9%
4.0%
2007
2008
2009
2010
2011
2012
2007
2008
2009
2010
2011
2012
19% 7% 9% 6% 9% 7% 9% 8%
2007
2008
2010
2011
2012
+10.2%
+8.9%
403 EU
444
646 US
703
China
Korea +10.0%
+7.1%
448 493 +7.5%
2011
2012
+3.9%
368
India
Worldwide
US Plant
China Plant
India Plant
Czech Plant
Russia Plant
Turkey Plant
Brazil Plant
Hyundai
16.7
18.9
14.6
31.4
18.4
Hyundai
55.3
18.3
18.9
7.5
VW
14.1
8.2
30.9
31.5
15.3
VW
61.6
19.4
12.8
6.2
Fiat
27.5
25.8
46.7
Fiat
70.9
1.2 3.9
24.0
Toyota
28.2
25.4
10.9
18.0
17.5
Toyota
40.1
15.6
31.1
13.2
Honda
18.5
42.2
5.0
27.9
6.4
Honda
45.9
18.5
34.1
1.5
0 Domestic
20
40
60 Europe Asia
80 Others
100
0 A+B+C
20
40 D+E+F
60 RV
80 Others
100
North America
Source: Company data for HMC 2011 Global Retail Sales, Competitor information from public filings (2011FY Earnings Results) 1. Others include 38.0% of Brazil sales 2. A+B+C=Compact+Sub-Compact+Mini; D+E+F=Mid-Size+Large+Luxury; RV=SUV+MPV, Others=PUP and others
Enhanced Brand Value is leading sales growth and reduce incentive spending. Subsequently, reduction in incentive is resulting ASP increase and repeated Brand Value improvement. Structural Improvement from US Market Structural Improvement
Sales Growth
Reduction in Incentives
Incentive (PNVS, $) (%) 2,194 2,506 1,649 1,005 946 20.7 14.2 (34.1) (39.1) (5.9)
ASP Increase
Sales (000) (%) 401 435 538 646 703 (14.0) 8.3 23.7 20.0 8.8
M/S (%) (%pt) 3.0 4.2 4.6 5.1 4.9 0.1 1.2 0.4 0.5 (0.2)
ASP (Sonata, $) (%) 18,266 18,019 21,821 23,148 22,700 3.9 (1.4) 21.1 6.0 (2.4)
HMC has reduced its exposure to FX fluctuations and made efforts to reduce risk from FX fluctuations Portion of Exports from Korea Plant OP Margin & KRW/USD Exchange Rate Trend
(Unit: KRW/USD)
1276.4
29% 41% 48% 41% 40% 30% 30% 28%
10.3% 8.8%
10.0%
70%
70%
72%
6.1% 3.9%
2005
2006
2007
2008
2009
2010
2011
2012
2008
2009
2010
2012
HMC OP Margin
HMC has implemented hedging, settlement currency diversification and improving export ASP to mitigate impact from FX
Source: Company data * Hyundai OP margin for 2008-2009 based on K-GAAP, 20102012 based on K-IFRS
Brand Enhancement
Awards and Accolades
(Ranks) +24.9% +19.3% +9.3%
Date
2012.08 2012.07 2012.04 2012.03 2012.03
Award Title
Car Buyer Car of the Year 2012 Company Car of the Year Car of the Year Best Auto 2011 Best Value in America Car of the Year Carmaker of the Year Car of the Year 12 N. American Car of the Year 12 N. American Car of the Year Family Car of the Year Car of the Year Car of the Year Car of the Year
Region
Model(s)
i30 i40 Solaris Solaris Accent, Elantra, Coupe and Tucson i30 Hyundai Sonata Veloster Elantra ix20 Elantra ix35 Tucson ix
53 61 7,500 6,005
72 4,846
69
65
4,604
5,033
2008
2009
2010
2011
2012
2012.02 2012.02
2012.01
1
(Ranks)
13 47.0%
11 60.0% 47.0%
2012.01
64.0%
2009
2010
2011
2012
In US market, Hyundai achieved the highest retention rate among competitors in 2012
Source: Interbrand, JD Power
10
High global utilization and low inventory level enables the company to promote value pricing strategy.
4
107.4 108.4
102.4 100.6
91.5 89.9
1
2008 2009 2010 2011 2012 2013(P)
Jul-10
Jul-11
Jul-12
Oct-12
Overseas Inventory
11
With value pricing strategy, ASP is keep improving while incentive spending is decreasing.
US Incentive Trend
(Unit: USD)
18
2,600
14
1,800 1,804
12
1,400
10
1,000
6 2002 LatAm 2005 Middle East and Africa 2008 Asia Pacific 2011 Total Export
12
HMC has shown the most consistent growth during the sector downturn.
18.0%1
-9.4%
-11.7%
11.9%
-2.2%
-1.7%
31.2% 23.1% 14.7% 16.1% 7.8% 14.1% 11.4% 22.3% 25.6% 20.6% 24.0% 20.0% 5.7% 8.0% 10.9% 5.7%
(10.7)%
(3.8)%
(27.0)%
(28.4)%
2008-2009
2009-2010
2010-2011
1~3Q 111~3Q 12
Source: Public Filings Note: Based on Consolidated Financials, Calendarized Financials for Japanese Firms 1. Based on the average of 3 year (08~11) revenue growth. Hyundai Financials for 20092010 based on K-GAAP, 20102012 based on K-IFRS
13
3. Future Strategies
Consistent revenue growth and enhanced profitability to be achieved through structural improvement in product/brand value, balanced capacity expansion and cost structure improvement
Value Growth
Volume Growth
Green Car
Higher ASP and Lower Incentive Driven by Enhanced Product and Brand Value
15
Elantra, Sonata, and Santa Fe are experiencing high demand with better specification.
16
Transaction price of major models in US market has improved with structural improvement. Transaction Price Trend in US Market Compact Sedan
(Unit: USD 1,000)
Mid-size Sedan
Compact CUV
23.1
23.5 22.7
26.5
22.8
22.4
25.4
23.5
23.7
22.6
22.3
4-Cyl, 2WD
2007
2008
2009 Elantra
2010 Corolla
2011 Civic
2012
2007
2008
2009
2010 Camry
2011 Accord
2012
2009
2010 Santa Fe
2011 RAV4
2012 Equinox
Sonata
17
Volume Growth
HMCs global sales will be increased with capacity expansion and by maintaining high utilization rate.
2,050 3,870
2,550 4,420
2,499 4,410
+12.4 +5.7
Source: Company data * Above sales figures are based on shipment ** BHMC : Beijing-Hyundai Motor Company / CHMC : Sichuan-Hyundai Motor Company
18
Platform integration will reduce development cost and realize greater economies of scale per platform.
2002
2009
2013 (P)
Old 38%
Small
Mid-size
Large
Coupe
Frame SUV
LCV
19
Green Car
HMC independently developed and obtained distinctive technology on HEV system. Developing Green Cars: HEV Hybrid Vehicle Strategy
A Fast Second Company - strategy to quickly become a # 2 player by competing with industry leading players Gradual expansion of HEV applied automotives (mid-size, SUV, heavy vehicles) Enhancing fuel efficiency Focusing on HEV system improvement and obtaining distinctive components technology
Hybrid Vehicle
Sonata HEV
Displacement: 2.4 Max. Power: 206 hp Mileage: 34 / 39 mpg Commercial production: 2011 (US & Korea)
Sonata HEV 206 hp Li-PB 34kW 34mpg / 39mpg 30kW (40.2hp) Parallel System
Camry HEV 200 hp Ni-MH 33kW 43mpg / 39mpg 105kW (141hp) Power Split System
Altima HEV 198 hp Ni-MH 30kW 35mpg / 33mpg 105kW (141hp) Power Split System
20
Green Car
HMC has been chosen to participate in European FCEV demonstration program together with Daimler. Developing Green Cars: FCEV Fuel Cell Electric Vehicle
Assuring FCEV Leading Maker position by demonstration program Expected to commence producing 1,000 vehicles from 2012 to 2014 Mass production technology in process through independently developed FCEV Stack Technology
FCEV Vehicle
Tucson ix FCEV
Max. distance: 650 km Max. speed: 160 km/h Fuel Efficiency: 31km/ Commercial production: TBD
Development Roadmap
Phase 1 (~2006) Develop Stack Technology Phase 2 (2007~2011) Improve Performance Phase 3 (2012~) Commence Small Production
Tucson FCEV (2nd Gen.) Mohave FCEV Fuel Cell Electric Bus (2nd Gen.)
Tucson ix FCEV
Daimler
Source: Company data, Pike Research (August 10, 2011)
Honda
Toyota
HMC
GM
Nissan
Ford
21
Korea
Sales and M/S Trend (Retail Sales)
(Unit: 1,000 vehicles)
Market Strategy
1,474 1,411
1,464 1,392
New Model Launch Santa Fe (May 2012): Enhance sales volume and Model mix with new mid-size SUV model Santa Fe Long : Santa Fe comes in various shapes
47.3%
2009
2010 Industry
2011 M/S
Genesis : Strengthen the Premium segment competitiveness to improve brand imange Corresponding Measures on Increase of Imported Vehicle Enhanced Credibility Test drive for comparison with imported model Develop options for domestic customers Improve Premium Image Diversify product line up and Power train Upgrade and expand sales/ service network Improve Customer Satisfaction Improve car master response to customer Unique premium services such as Home to Home service
701 658
682
667
77
112
276
226
250
231
156
161
170
162
2009
2011 RV CV
2012
23
United States
Sales and M/S Trend (Retail Sales)
(Unit: 1,000 vehicles)
Market Strategy
2013 New Model Launch
14,492
10,432
11,590
12,778
New Model
4.2%
Premium PC Sales
2009 2010 Industry 2011 M/S 2012
6.3% 5.6%
703 646
7.6%
7.8% 7.1%
5.7%
22,687
18,850
128
538 435
131
16,448 13,604
277
109 146
180
184
251
298
3,193
3,972
2009
2010 Small PC
2012
2009 Genesis
2010 Equus
2012
24
China
Sales and M/S Trend (Retail Sales)
(Unit: 1,000 vehicles)
Market Strategy
New Model Launch
12,720
11,120 8,276
11,935
Santa Fe (December 2012) / D-segment sedan (4Q 2013) : Product mix & ASP improvement with launch of new models in D & SUV segment
6.9%
6.3%
6.2%
6.7%
2009
2010 Industry
2011 M/S
2012
418
172 117
120 65
154 113
49 37
484
519
567 472
2008
2009
2011
2012
Source: KAMA, Company data *Above are sales figures for Beijing-Hyundai Motor Company (JV) in China
25
Europe
Sales and M/S Trend (Retail Sales)
(Unit: 1,000 vehicles)
Market Strategy
New Model Launch
12,528
14,499
13,768
13,593
Santa Fe Long body (2Q 2013) / ix35 F/L (3Q) / i10 (4Q)
- Enhancing SUV segment through new models like Santa Fe & ix35 F/L
43
20 140 145
80
Dealer Network
104 117 102 109
181
157
142
147
2009
2012
26
India
Sales and M/S Trend (Retail Sales)
(Unit: 1,000 vehicles)
Market Strategy
New Model Launch
2,430 2,656
2,309 1,747
Santa Fe (DM) : 2nd quarter of 2013 BA Introducing new small segment car
14.7%
16.6%
15.4%
15.4%
2009
2010 Industry
2011 M/S
2012
Specification Comparison
604 560
616
641
247 270
242
250
Hyundai Eon Displacement Max. Power 800cc 56ps / 5,500rpm 21.1km/ U$ 5,500 ~ 7,800
290
357
373
391
Mileage MSRP
2009
2010 Domestic
2011 Export
2012
27
419 316
2004
2005
2006
2007
2008
2009
2010
2011
2012
Korea 15.2%
LatAm
+16% N. Am. 19.1%
237 258 268
Chindia 28.3%
Europe 15.2%
82
177
185
2004
Source: Company Data, 2012 HMC Global Retail Sales (excludes CKD sales)
2005
2006
2007
2008
2009
2010
2011
2012
28
Appendix
(KRW in Billions)
Assets Current Assets Cash and Cash Equivalents1 Liabilities Current Liabilities Short and Long-term Debt Provision Equity Current Ratio(%) Debt/Equity (%) Net Debt
Source: Company filings (K-IFRS Consolidated) 1. Cash and Cash Equivalents = Cash + Short-term Financial Instruments
30
(KRW in Billions)
Margin (%)
SG&A
24.3%
10,867
23.1%
11,061 1.8%
Portion (%)
Operating Profit
14.0%
8,029
13.1%
8,437 5.1%
Margin (%)
Recurring Profit
10.3%
10,447
10.0%
11,605 11.1%
Margin (%)
Net Income
13.4%
8,105
13.7%
9,056 11.7%
Margin (%)
Depreciation Amortization EBITDA1
10.4%
1,596 739 10,364
10.7%
1,698 823 10,958
Source: Company filings (K-IFRS Consolidated) 1. EBITDA = Operating Profit + Depreciation + Amortization
31
(KRW in Billions)
Sales Revenue Automotive Finance Other Operating Profit Automotive Finance Other Consolidation Adjustment
32