Hyundai Motor Company. Investor Presentation February 2013

Transcription

1 Hyundai Motor Company Investor Presentation February 2013

2 Table of Contents Executive Summary Key Strengths for HMC Future Strategies Market Update by Region Appendix 1

3 1. Executive Summary

4 Executive Summary Current Outstanding Performance Prudent Future Strategies Strong Performance through the Cycle 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 3

5 2. Key Strengths for HMC

6 1 Strong Performance Through the Cycle Steady Growth in Global Sales 1 (Unit:: 1,000 vehicles) +7.1% and Strengthening Global Market Share 5.7% 2,603 2,654 3,239 3,701 4,099 4, % 5.1% 5.4% 3.9% 4.0% Supported by Relatively Higher Brand value Growth 2 than the Industry and Improving Residual Value of Vehicles 65% 61.7% 24% 19% 7% 9% 11% 6% 9% 7% 9% 8% (7)% (5)% Automaker Value Growth HMC Value Growth 55% 45% 35% 59.8% 59.5% 46.5% 45.8% 39.4% '08 MY '09 MY '10 MY '11 MY '12 MY '13MY 1. Retail sales excluding CKD sales 2. Interbrand Elantra Sonata Santa Fe 5

7 2 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 (Unit: 1,000 vehicles) +10.2% +11.8% +8.9% % EU China US +10.0% Korea +7.1% Middle East and Africa +7.5% India ,099 4, % LatAm Worldwide US Plant China Plant India Plant Czech Plant Russia Plant Source: Company data (Retail sales excluding CKD sales) Turkey Plant Brazil Plant 6

8 2 Balanced Sales Growth by Diversified Business Portfolio Geographically Diversified Portfolio (%) Marketable Product Mix 2 (%) Hyundai Hyundai VW VW Fiat Fiat Toyota Toyota Honda Honda Domestic North America Europe Asia Others A+B+C D+E+F RV Others 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 7

9 3 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 Sales Growth Reduction in Incentives ASP Increase US Market Brand Value ($ in Billion) Sales ( 000) M/S (%) (%) (%pt) Incentive (PNVS, $) (%) ASP (Sonata, $) (%) (14.0) , , , ,019 (1.4) ,649 (34.1) 21, ,005 (39.1) 23, (0.2) 946 (5.9) 22,700 (2.4) Source: Auto data/pin Data, ASP based on actual transaction prices 8

10 3 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) % 41% 41% 40% 29% 30% 30% 28% % 10.0% 8.8% 52% 59% 59% 60% 71% 70% 70% 72% 3.9% 6.1% Korea Domestic & Overseas Plant Sales Export from Korea Plant HMC OP Margin KRW/USD Avg. HMC has implemented hedging, settlement currency diversification and improving export ASP to mitigate impact from FX Source: Company data * Hyundai OP margin for based on K-GAAP, based on K-IFRS 9

11 3 Brand Enhancement Enhancement in Brand Value Awards and Accolades (Unit: US$ in Millions) ,846 4, % 65 5, % 61 6, % 53 7,500 (Ranks) Date Award Title Car Buyer Car of the Year 2012 Company Car of the Year Car of the Year Region Model(s) i30 i40 Solaris Best Auto 2011 Solaris Highest growth rate among automakers for two consecutive years Best Value in America Car of the Year Accent, Elantra, Coupe and Tucson i30 US Customer Retention Rate Carmaker of the Year Hyundai % 47.0% +13.0%p % +4.0%p % (Ranks) Car of the Year 12 N. American Car of the Year 12 N. American Car of the Year Sonata Veloster Elantra Family Car of the Year ix Car of the Year Elantra In US market, Hyundai achieved the highest retention rate among competitors in 2012 Source: Interbrand, JD Power Car of the Year Car of the Year ix35 Tucson ix 10

12 3 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) (P) Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Overseas Inventory US Inventory Source: Company data/us Autodata 11

13 3 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) US$15,000 Export ASP CAGR: +6.0% 2,600 2,200 2,427 2, ,800 1, , , LatAm Middle East and Africa Asia Pacific Total Export Hyundai Toyota Honda Source: Company Data, US Autodata, ASP is based on HMC headquarter results 12

14 4 Consistent Sales Growth Relative to Peers HMC has shown the most consistent growth during the sector downturn. Consolidated Revenue Growth Annual (YoY) 08~ 11 Revenue CAGR 18.0%1-9.4% -11.7% 11.9% -2.2% -1.7% 31.2% 22.3% 23.1% 14.7% 16.1% 14.1% 7.8% 25.6% 20.6% 24.0% 20.0% 11.4% 5.7% 8.0% 10.9% 5.7% (3.8)% (7.6)% (10.7)% (13.9)% (19.0)% (27.0)% (26.3)% (28.4)% ~3Q 11 1~3Q 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 based on K-GAAP, based on K-IFRS 13

15 3. Future Strategies

16 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

17 1 Value Growth Product Competitiveness Elantra, Sonata, and Santa Fe are experiencing high demand with better specification. Specification Comparison Elantra (Compact Sedan) Specification Hyundai Elantra ( 11) Toyota Corolla ( 09) Honda Civic ( 12) Displacement 1.8L 1.8L 1.8L Max. Power 148@6, @6, @6,300 Mileage 28mpg / 38mpg 26mpg / 34mpg 28mpg / 39mpg Sonata (Mid-size Sedan) Specification Hyundai Sonata ( 10) Toyota Camry ( 12) Nissan Altima ( 13) Displacement 2.4L 2.5L 2.4L Max. Power 198@6, @6, @6,000 Mileage 24mpg / 35mpg 25mpg / 35mpg 27mpg / 38mpg Santa Fe (Compact CUV) Specification Hyundai Santa Fe ( 13) Toyota RAV4 ( 13) Chevrolet Equinox ( 10) Displacement 2.4L 2.5L 2.4L Max. Power 190@6, @6, @6,700 Mileage 21mpg / 29mpg 22mpg / 28mpg 22mpg / 32mpg Source: Company Data 16

18 1 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 Cyl, 2WD Elantra Corolla Civic Sonata Camry Accord Santa Fe RAV4 Equinox Source: PIN data (Annual average transaction price in US market) 17

19 2 Volume Growth HMC s global sales will be increased with capacity expansion and by maintaining high utilization rate. Capacity Expansion and Sales Plan Production Capacity Expansion Sales Plan by Plants (Unit: 1,000 Vehicles) (P) (P) Chg (%) Korea 1,820 1,870 1,870 1,911 1, US China (BHMC) India Turkey Czech Russia Brazil China (CHMC) Overseas 2,050 2,550 2,780 2,499 2, Total 3,870 4,420 4,650 4,410 4, Source: Company data * Above sales figures are based on shipment ** BHMC : Beijing-Hyundai Motor Company / CHMC : Sichuan-Hyundai Motor Company 18

20 3 Cost Structure Improvement (Platform Integration) Platform integration will reduce development cost and realize greater economies of scale per platform. Platform Integration Integration Schedule Reduction of Model Development Time (P) Integrated Platforms Total No. of Platforms Avg. of 40 months 24 months Total No. of Models No. of Models per Type of Platform Mass Production Niche Market (P) Increasing portion of models with integrated platform (P) Old 38% New 62% Old 25% New 75% Old 19% New 81% Small Mid-size Large Coupe Frame SUV LCV Source: Company Data 19

21 4 Green Car HMC independently developed and obtained distinctive technology on HEV system. Developing Green Cars: HEV Hybrid Vehicle Strategy Hybrid Vehicle 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) Sonata HEV Displacement: 2.4l Max. Power: 206 hp Enhancing fuel efficiency Mileage: 34 / 39 mpg Focusing on HEV system improvement and obtaining distinctive components technology Commercial production: 2011 (US & Korea) HEV Performance Comparison Specification Sonata HEV Camry HEV Altima HEV System Power 206 hp 200 hp 198 hp Battery Li-PB 34kW Ni-MH 33kW Ni-MH 30kW Mileage 34mpg / 39mpg 43mpg / 39mpg 35mpg / 33mpg Motor 30kW (40.2hp) 105kW (141hp) 105kW (141hp) System Parallel System Power Split System Power Split System Source: Company data 20

22 4 Green Car HMC has been chosen to participate in European FCEV demonstration program together with Daimler. Developing Green Cars: FCEV Fuel Cell Electric Vehicle FCEV 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 Tucson ix FCEV Max. distance: 650 km Max. speed: 160 km/h Fuel Efficiency: 31km/l Commercial production: TBD Development Roadmap Assessment of Light-duty FCEV Manufacturers Phase 1 (~2006) Develop Stack Technology Phase 2 (2007~2011) Improve Performance Phase 3 (2012~) Commence Small Production Santa Fe FCEV Tucson FCEV Fuel Cell Electric Bus Tucson FCEV (2 nd Gen.) Mohave FCEV Fuel Cell Electric Bus (2 nd Gen.) Tucson ix FCEV Daimler Honda Toyota HMC GM Nissan Ford Source: Company data, Pike Research (August 10, 2011) 21

23 4. Market Update by Region

24 Korea Sales and M/S Trend (Retail Sales) (Unit: 1,000 vehicles) Market Strategy 1,392 1,464 1,474 1,411 New Model Launch Santa Fe (May 2012): Enhance sales volume and Model mix with new mid-size SUV model 50.5% 45.0% 46.4% 47.3% Santa Fe Long : Santa Fe comes in various shapes Avante 2 door: Targeting niche market with coupe version of Avante Industry 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 Source: KAMA, Company data Small PC Med + Large PC RV CV 23

25 United States Sales and M/S Trend (Retail Sales) (Unit: 1,000 vehicles) 12,778 11,590 10,432 14,492 Market Strategy 2013 New Model Launch New Model : Santa Fe 7-Seater (1Q) F/Lift Model : Equus F/L (1Q), Tucson F/L(2Q), Elantra F/L(4Q) 4.2% 4.6% 5.1% 4.9% Premium PC Sales Industry M/S 5.6% 6.3% 7.6% 5.7% 22, % 7.1% ,448 18, , ,193 3, Source: KAMA, Company data Small PC Med + Large PC RV Genesis Equus Genesis M/S Equus M/S 24

26 China Sales and M/S Trend (Retail Sales) (Unit: 1,000 vehicles) 11,935 11,120 8,276 12,720 Market Strategy New Model Launch 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 Industry M/S Number of Dealers Small PC Mid-size PC SUV Focus on improving customer services and brand image Source: KAMA, Company data *Above are sales figures for Beijing-Hyundai Motor Company (JV) in China 25

27 Europe Sales and M/S Trend (Retail Sales) (Unit: 1,000 vehicles) Market Strategy 14,499 13,768 13,593 12,528 New Model Launch Santa Fe Long body (2Q 2013) / ix35 F/L (3Q) / i10 (4Q) 2.4% 2.6% 2.9% 3.5% - Enhancing SUV segment through new models like Santa Fe & ix35 F/L Industry M/S True Fleet Market Enhancing D-segment (i40) true fleet sales - Develop exclusive finance program for fleet customer - Expand fleet business dealers dealers dealers Dealer Network Enhancing tier 1 city dealer network - Develop tier 1 city dealers similar level of market average till 2015 ( 12 29% 15 50%) - Develop flagship dealers in main cities (Frankfurt, Paris etc.) Source: Company data, ACEA A+B seg C seg RV D seg & Others 26

28 India Sales and M/S Trend (Retail Sales) (Unit: 1,000 vehicles) 2,309 2,430 2,656 1, % 15.4% 15.4% 14.7% Market Strategy New Model Launch Santa Fe (DM) : 2 nd quarter of 2013 BA Introducing new small segment car Specification Comparison Industry M/S Hyundai Eon Maruti Alto Displacement 800cc 800cc Max. Power 56ps / 5,500rpm 47ps / 6,200rpm Mileage MSRP 21.1km/l U$ 5,500 ~ 7, km/l U$ 5,100 ~ 6, Domestic Export Source: Source: SIAM, Company data 27

29 Other Emerging Markets Achieving consistent sales volume growth through the years. Africa-middle East and LatAm Sales Breakdown by Major Emerging Markets Sales Volume (000 s) and CAGR (%) Africa-ME +20% Asia-Pacific 3.8% LatAm 6.1% Turkey 1.1% Africa-Middle East 11.2% Korea 15.2% LatAm Chindia 28.3% Europe 15.2% N. Am. 19.1% % 268 Source: Company Data, 2012 HMC Global Retail Sales (excludes CKD sales)

30 Appendix

31 Balance Sheet (K-IFRS Consolidated) (KRW in Billions) Change Assets 109, ,538 12,058 Current Assets 48,926 54,848 5,921 Cash and Cash Equivalents 1 15,415 19,143 3,729 Liabilities 69,152 73,620 4,468 Current Liabilities 33,164 32, Short and Long-term Debt 43,339 45,207 1,869 Provision 6,647 7, Equity 40,328 47,918 7,590 Current Ratio(%) 147.5% 167.0% Debt/Equity (%) 107.5% 94.3% Net Debt 27,924 26,064 1,860 Source: Company filings (K-IFRS Consolidated) 1. Cash and Cash Equivalents = Cash + Short-term Financial Instruments 30

32 Income Statement (K-IFRS Consolidated) (KRW in Billions) Revenue 77,798 84,470 Gross Profit 18,896 19,498 Margin (%) 24.3% 23.1% SG&A 10,867 11,061 Portion (%) 14.0% 13.1% Operating Profit 8,029 8,437 Margin (%) 10.3% 10.0% Recurring Profit 10,447 11,605 Margin (%) 13.4% 13.7% Net Income 8,105 9,056 Margin (%) 10.4% 10.7% Depreciation 1,596 1,698 Amortization EBITDA 1 10,364 10,958 Growth 8.6% 3.2% 1.8% 5.1% 11.1% 11.7% Source: Company filings (K-IFRS Consolidated) 1. EBITDA = Operating Profit + Depreciation + Amortization 31

33 Financial Summary by Division (KRW in Billions) Growth Sales Revenue 77,798 84, % Automotive 67,104 71, % Finance 7,288 8, % Other 3,406 4, % Operating Profit 8,029 8, % Automotive 6,624 6, % Finance 1,203 1, % Other % Consolidation Adjustment Source: Company filings (K-IFRS Consolidated) 32