May 2018 - Hyundai Cars, Sedans, SUVs, Compacts, and Luxury

[Pages:29]Investor Presentation

May 2018

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.

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Table of Contents

? Key Strengths for HMC ? Future Strategies ? Shareholder Value ? Appendix

2

Key Strengths for HMC

1. Balanced Growth

Global Sales Trend

(Unit: 1,000 vehicles)

3,701

4,099

4,392

4,621

4,835

2.9% CAGR '10-'17

4,843

4,917

4,532

2010

2011

2012

2013

2014

Source : Company data (Retail sales excluding CKD sales)

2015

2016

2017

Initial Quality Study

(Unit: number of problems per unit)

(Ranks among Non-Premium)

5

1

2

2

106 94

90

1st

95

92

77

Brand Value Growth

(Unit: US$ in Billions)

25

20

15

9.3%

10

5

5.0

0

2010

Focus on Value Growth Strategy

(U$ 5B in `10 13.2B in '17, 162%)

19.3%

24.4%

20.5%

15.6%

8.5%

11.1%

6.0

2011

7.5

2012

9.0

2013

10.4

2014

11.3

2015

12.5

2016

30

20

5.1%

10

0%

13.2

-10

2017

HMC Brand Value (Billion US$)

HMC Value Growth (%)

Source : Interbrand

Vehicle Dependability Study

(Unit: number of problems per unit)

16

15

9

(Ranks among non-premium)

3

3

188

169

158

133

124

50 2013

2014

Source : J.D. Power 4

2015

2016

2017 (Ranks among Premium)

2014

2015

Source : J.D. Power

2016

2017

2018

2. Balanced Sales Growth through Global Plants (YTD)

9 manufacturing plants ( ), 6 R&D facilities ( ), 14 direct sales subsidiaries ( ), sales in more than 200 countries globally

`17. 1Q

`18. 1Q

(Unit: 1,000 vehicles)

+2.7% 131 134

EU

+28.2% 31 39

Russia

-14.9% 206 175

China

+4.5% 162 169

Korea

-11.8% 169 149

US

-9.0%

135 123 Others

(MEA, APAC, Turkey)

+9.9% 121 133

India

-3.3%

`17. 1Q '18. 1Q

+0.1%

'17. 1Q '18. 1Q

1,075 1,040

860

861

Global

Global (ex-China)

+7.9%

40 43 Brazil

Czech Plant

Russia Plant

Source: Company data (Retail sales excluding CKD sales)

5

Turkey Plant

India Plant

China Plant

US Plant

Brazil Plant

2. Balanced Sales Growth by Diversified Business Portfolio

Geographically Diversified Portfolio (%)

Marketable Product Mix* (%)

Hyundai 15.2

18.0

16.8

18.6

16.0

15.4

Hyundai

49.1

14.5

29.7

6.6

VW 12.6 7.1

29.4

39.4

3.0 8.5

GM

35.3

3.5 0.7

45.0

3.4 12.1

Toyota

22.4

26.4

9.6 13.5 16.8 11.2

Honda 13.6

34.7

3.2

27.6

14.3 6.5

0

20

40

60

80

100

Domestic North America Europe China Asia (ex-China) Others

VW

56.7

16.6

21.4

5.3

GM

27.4

11.1

35.0

26.5

Toyota

37.5

10.4

39.1

13.0

Honda

40.9

11.1

46.7

1.3

0

20

40

60

80

100

A+B+C

D+E+F

RV

Others

Source: Company data for HMC 2017 Global Retail Sales, Competitor information from IHS (CY2017 data) *A+B+C=Mini+Sub Compact+Compact; D+E+F=Mid-Size+Large+Luxury; RV=SUV+MPV; Others=PUP and others; excluding HCVs

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3. Brand Enhancement

Enhancement in Brand Value

(Unit: US$ in Millions)

(Ranks)

+16%

43 +20%

+8% 40

+11%

+5%

35

35

39

13,193

12,547

11,293

+24% 53

10,409

9,004

+19% 61 65

7,473

6,005

5,033

2010

2011

2012

2013

2014

2015

2016

2017

Brand value has increased an average of 14% each year, since the implementation of Modern Premium in 2011.

Source: Interbrand

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Awards and Accolades

Date

Titles

'18.02

`18 Consumer Report (Top Auto Brands)

'18.02

iF Design Award 2018

`17.12 `17.09 `17.09 '17.09 '17.09 `17.08 '17.06

'17 Good Design Award

'17 JD Power (Driver Experience in Compact)

'17 Automotive Brand Contest (Exterior and interior design)

'17 US Tech Experience Index Study (Highest in Compact Segment)

China Automobile Customer Satisfaction Index (SUV A)

Ideal Vehicle Awards (Best in Class, Ideal Luxury Car)

Green Good Design Award

'17.06 `17.06 `17.04

Right Car to Buy 2017

10 Best Family Cars (Best Sedan)

Red Dot Design Awards

`17.02

iF Design Award 2017

'17.01 '17.01 `17.01

Executive Sedan Of The Year

Car of the Year Awards 2017 (Best Small Hatch)

BESTRIDES OF 2016 (compact crossover/SUV)

Regions

U.S. Germany

U.S. U.S. Germany U.S. China U.S. U.S. Brazil U.S. Germany Germany India U.K. U.S.

Models

Genesis G70, KONA, i30, Solati

Sonata Elantra

i30 Elantra Tucson, Yuedong, Yuena, Langdong

G90 IONIQ Creta Sonata, Sonata HEV G80, Azera, i30

i30 Elantra IONIQ Santa Fe Sport

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