Hyundai Motor Company

Investor Presentation February 2013

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

Prudent Future Strategies

Value Growth

Balanced Sales Growth and Diversified Portfolio

Structural Improvement in Core Competitiveness

Volume Growth

Cost Structure Improvement

Superior Performance Relative to Peer Groups

Green Car

2. Key Strengths for HMC

Strong Performance Through the Cycle

and Strengthening Global Market Share
+7.1%

Steady Growth in Global Sales1

(Unit:: 1,000 vehicles)

5.7% 5.4% 5.1% 5.1%

3,701 3,239 2,603 2,654

4,099

4,392

3.9%

4.0%

2007

2008

2009

2010

2011

2012

2007

2008

2009

2010

2011

2012

Supported by Relatively Higher Brand value Growth2 than the Industry

24% 11%

and Improving Residual Value of Vehicles

65% 61.7% 59.8% 55% 46.5% 45% 45.8% 39.4% 35% '08 MY '09 MY '10 MY Elantra '11 MY Sonata '12 MY Santa Fe '13MY 59.5%

19% 7% 9% 6% 9% 7% 9% 8%

2007

2008

(7)% (5)% 2009

2010

2011

2012

Automaker Value Growth

HMC Value Growth

1. Retail sales excluding CKD sales 2. Interbrand

Balanced Sales Growth through Global Manufacturing Plants

7 manufacturing plants ( ), 6 R&D facilities ( ), 12 direct sales subsidiaries ( ), sales in more than 190 countries globally 2011 2012
(Unit: 1,000 vehicles)

+10.2%

+11.8% -2.2% 758 847 682 667

+8.9%

403 EU

444

646 US

703

China

Korea +10.0%

+7.1%
448 493 +7.5%

2011

2012
+3.9%

Middle East and Africa

368

396 4,099 4,392 258 268 LatAm

India

Worldwide

US Plant

China Plant

India Plant

Czech Plant

Russia Plant

Turkey Plant

Brazil Plant

Source: Company data (Retail sales excluding CKD sales)

Balanced Sales Growth by Diversified Business Portfolio

Marketable Product Mix2 (%)

Geographically Diversified Portfolio (%)

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

Structural Improvement in Core Competitiveness

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

Enhanced Brand Value

Brand Value ($ in Billion) 4.8 4.6 5.0 6.0 7.5

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)

US Market 2008 2009 2010 2011 2012

Source: Auto data/PIN Data, ASP based on actual transaction prices

Increased Resilience to FX Fluctuations

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%

1156.3 1102.6 1108.1 1126.9

10.3% 8.8%

10.0%

71% 59% 52% 59% 60%

70%

70%

72%

6.1% 3.9%

2005

2006

2007

2008

2009

2010

2011

2012

2008

2009

2010

2011 KRW/USD Avg.

2012

Korea Domestic & Overseas Plant Sales

Export from Korea Plant

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%

Enhancement in Brand Value

(Unit: US$ in Millions)

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

Highest growth rate among automakers for two consecutive years

2012.02 2012.02

US Customer Retention Rate

+4.0%p +13.0%p

2012.01
1
(Ranks)

13 47.0%

11 60.0% 47.0%

2012.01
64.0%

2012.01 2011.12 2011.04 2011.04 2011.02

2009

2010

2011

2012

In US market, Hyundai achieved the highest retention rate among competitors in 2012
Source: Interbrand, JD Power

10

Utilization & Inventory

High global utilization and low inventory level enables the company to promote value pricing strategy.

HMC Global Utilization Trend

(Unit: %)

HMC Global/US Inventory Trend

(Unit: Month of Supply)

4
107.4 108.4

102.4 100.6

91.5 89.9

1
2008 2009 2010 2011 2012 2013(P)

Jul-10

Oct-10 Jan-11 Apr-11

Jul-11

Oct-11 Jan-12 Apr-12 US Inventory

Jul-12

Oct-12

Overseas Inventory

Source: Company data/US Autodata

11

Value Pricing Strategy

With value pricing strategy, ASP is keep improving while incentive spending is decreasing.

Average Selling Price (ASP) by Export Market

(Unit: USD 1,000)

US Incentive Trend
(Unit: USD)

18

2,600

Export ASP CAGR: +6.0%

16
US$15,000

2,427 2,206 2,200

14

1,800 1,804
12

1,400
10

1,000

872 946 865

6 2002 LatAm 2005 Middle East and Africa 2008 Asia Pacific 2011 Total Export

600 2006 Hyundai 2008 Toyota 2010 Honda 2012

Source: Company Data, US Autodata, ASP is based on HMC headquarter results

12

Consistent Sales Growth Relative to Peers

HMC has shown the most consistent growth during the sector downturn.

Consolidated Revenue GrowthAnnual (YoY)

08~ 11 Revenue CAGR

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)%

(7.6)% (13.9)% (19.0)% (26.3)%

(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

Sustainable Success Going Forward

Key Strategy for Ongoing Growth in Earnings

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

Cost Structure Improvement

Green Car

Higher ASP and Lower Incentive Driven by Enhanced Product and Brand Value

Balanced Capacity Expansion and New Model Launch

Higher Cost Competitiveness from Vertical Integration

Develop Independent and Distinctive Technology

15

Value Growth Product Competitiveness

Elantra, Sonata, and Santa Fe are experiencing high demand with better specification.

Specification Comparison Elantra (Compact Sedan)

Specification Displacement Max. Power Mileage Hyundai Elantra (11) 1.8L 148@6,500 28mpg / 38mpg Toyota Corolla (09) 1.8L 132@6,000 26mpg / 34mpg Honda Civic (12) 1.8L 140@6,300 28mpg / 39mpg

Sonata (Mid-size Sedan)

Specification Displacement Max. Power Mileage Hyundai Sonata (10) 2.4L 198@6,300 24mpg / 35mpg Toyota Camry (12) 2.5L 178@6,000 25mpg / 35mpg Nissan Altima (13) 2.4L 182@6,000 27mpg / 38mpg

Santa Fe (Compact CUV)

Specification Displacement Max. Power Mileage Hyundai Santa Fe (13) 2.4L 190@6,300 21mpg / 29mpg Toyota RAV4 (13) 2.5L 179@6,000 22mpg / 28mpg Chevrolet Equinox (10) 2.4L 182@6,700 22mpg / 32mpg

Source: Company Data

16

Value Growth - Higher ASP

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

19.9 19.6 18.6 19.3 18.9 21.6 21.1 17.8 18.0

23.1

23.5 22.7
26.5

22.8

22.4
25.4

23.5

23.7

22.6

15.8 17.6 15.5

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

Source: PIN data (Annual average transaction price in US market)

17

Volume Growth

HMCs global sales will be increased with capacity expansion and by maintaining high utilization rate.

Capacity Expansion and Sales Plan

Production Capacity Expansion (Unit: 1,000 Vehicles) Korea US China (BHMC) India Turkey Czech Russia Brazil China (CHMC) Overseas Total 2011 1,820 300 600 600 100 300 150 2012 1,870 300 900 600 100 300 200 150 2013 (P) 1,870 370 900 600 200 300 200 150 60 2,780 4,650 2012 1,911 361 856 641 86 303 225 27 Sales Plan by Plants 2013 (P) 1,850 388 970 633 89 300 220 150 60 2,810 4,660 Chg (%) -3.2 +7.4 +13.3 -1.3 +3.6 -1.0 -2.0 +452.1

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

Cost Structure Improvement (Platform Integration)

Platform integration will reduce development cost and realize greater economies of scale per platform.

Platform Integration Integration Schedule

2002 Integrated Platforms Total No. of Platforms Total No. of Models 0 22 28 2009 6 18 32 2011 6 11 36 2013 (P) 6 6 40

Reduction of Model Development Time

Avg. of 40 months 24 months
40 33 24

2002

2009

2013 (P)

No. of Models per Type of Platform

Mass Production Niche Market

Increasing portion of models with integrated platform

2011 2012 2013 (P)

Old 38%

Old 25% New 62% New 75%

Old 19% New 81%

Small

Mid-size

Large

Coupe

Frame SUV

LCV

Source: Company Data

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)

HEV Performance Comparison

Specification System Power Battery Mileage Motor System
Source: Company data

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

Assessment of Light-duty FCEV Manufacturers

69.9 66.7 66.1 65.1 54.4 43.9 36.8

Santa Fe FCEV Tucson FCEV Fuel Cell Electric Bus

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

4. Market Update by Region

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

50.5% 45.0% 46.4%

47.3%

Avante 2 door: Targeting niche market with coupe version of Avante

2012

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

155 177 114 94 185 162

77

112

276

226

250

231

156

161

170

162

2009

2010 Small PC Med + Large PC

2011 RV CV

2012

Source: KAMA, Company data

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

: Santa Fe 7-Seater (1Q)

F/Lift Model : Equus F/L (1Q), Tucson F/L(2Q), Elantra F/L(4Q)

4.6% 5.1% 4.9%

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

125 264 229

277

109 146

180

184

251

298

3,193

3,972

2009

2010 Small PC

2011 Med + Large PC RV

2012

2009 Genesis

2010 Equus

2011 Genesis M/S Equus M/S

2012

Source: KAMA, Company data

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%

Dealer Enhancement Plan

802 720 600 500

2009

2010 Industry

2011 M/S

2012

856 703 570 740

418

172 117

120 65

154 113

49 37

484

519

567 472

2008

2009

2010 Number of Dealers

2011

2012

Focus on improving customer services and brand image

2009 2010 Small PC Mid-size PC 2011 SUV 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

3.5% 2.4% 2.6% 2.9%

True Fleet Market

2009 2010 Industry 2011 M/S 2012

Enhancing D-segment (i40) true fleet sales

- Develop exclusive finance program for fleet customer - Expand fleet business dealers

444 403 337 9 43 362 8

43

12 430 dealers 13 500 dealers

20 140 145

80

Dealer Network
104 117 102 109

Enhancing tier 1 city dealer network

- Develop tier 1 city dealers similar level of market average till 2015 (12 29% 15 50%)

181

157

142

147

- Develop flagship dealers in main cities (Frankfurt, Paris etc.)

2009

2010 A+B seg C seg RV

2011 D seg & Others

2012

Source: Company data, ACEA

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

Maruti Alto 800cc 47ps / 6,200rpm 19.7km/ U$ 5,100 ~ 6,100

290

357

373

391

Mileage MSRP

2009

2010 Domestic

2011 Export

2012

Source: Source: SIAM, Company data

27

Other Emerging Markets

Achieving consistent sales volume growth through the years.

Africa-middle East and LatAm Sales Breakdown by Major Emerging Markets

Sales Volume (000s) and CAGR (%)

Africa-ME
+20%
493 448

Asia-Pacific 3.8% Turkey 1.1%

118 185 208 253 292

419 316

LatAm 6.1% Africa-Middle East 11.2%

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

165 115 128

177

185

2004
Source: Company Data, 2012 HMC Global Retail Sales (excludes CKD sales)

2005

2006

2007

2008

2009

2010

2011

2012

28

Appendix

Balance Sheet (K-IFRS Consolidated)

2011 109,480 48,926 15,415 69,152 33,164 43,339 6,647 40,328 147.5% 107.5% 27,924 2012 121,538 54,848 19,143 73,620 32,836 45,207 7,009 47,918 167.0% 94.3% 26,064 1,860 Change 12,058 5,921 3,729 4,468 328 1,869 362 7,590

(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

Income Statement (K-IFRS Consolidated)

2011 77,798 18,896 2012 84,470 19,498 Growth 8.6% 3.2%

(KRW in Billions)

Revenue Gross Profit

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

Financial Summary by Division

2011 77,798 67,104 7,288 3,406 8,029 6,624 1,203 155 45 2012 84,470 71,307 8,663 4,500 8,437 6,711 1,178 255 294 Growth

(KRW in Billions)

Sales Revenue Automotive Finance Other Operating Profit Automotive Finance Other Consolidation Adjustment

8.6% 6.3% 18.9% 32.1% 5.1% 1.3% 2.2% 63.7%

Source: Company filings (K-IFRS Consolidated)

32