Hyundai Card is...Hyundai Card Investor Presentation 1H2012

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• Good profitability : Operating profit of KRW 121 billion and ROA of 2.2%

• Effective marketing : Innovative branding increased market share to 14.4%

• Excellent asset quality : 0.6% delinquency rate, the lowest rate among Korean FIs

• Sound capital structure : Leverage of 3.4x and a capital adequacy ratio of 19.9%

• Strong liquidity : Short term debt coverage ratio of 77.0%

3

Key Highlights 1H 2012

4

Resilient GDP Growth and Increasing Credit Card Usage

GDP Growth Rate & Unemployment Rate

2.2%

0.2%

6.1%

3.6%

2.6%

3.2%

3.6% 3.5%

3.0%3.2%

2008 2009 2010 2011 1H12

Source: Bank of Korea

GDP Growth Rate Unemployment Rate

Credit Card Spending & Usage Rate

279.3 303.9

350.7

390.2

106.6

49.7%52.8%

56.8%59.6%

63.3%

2008 2009 2010 2011 1Q12

Credit Card Spending (KRW Tn)

Credit card spending / Total private consumption

Source: Credit Finance Association

5

Balanced-risk Asset Portfolio and Consistent Market Share

Asset Portfolio (KRW Bn) Market Share Trend

5,616

7,136

9,1869,563 9,693

2008 2009 2010 2011 1H12

44.0%

28.9%

12.6%

14.5%

48.5%

25.8%

10.7%

15.0%

40.7%

25.0%

12.6%

21.6%

42.8%

25.4%

10.6%

21.0%

41.3%

25.5%

9.9%

23.0%

Lump Sum Installments Cash Advance

Card Loan Others

13.8%

15.7% 15.7% 15.5% 15.5%

11.2%

13.1%

14.1% 14.3% 14.4%

2008 2009 2010 2011 1Q12

Total Credit Card Market (credit purchase*+ financial products)

Credit Purchase* Market

* Excludes corporate accounts

Source: FISIS

Key Highlights

Operating income was down YoY due to:

- Reduced profitability as a result of regulatory changes

- Higher operating expenses in response to intensified competition

Maintained stable market share and number of card holders

6

Good Profitability Underscores Strong Fundamentals

2009 2010 2011 1H11 1H12 YoY

Operating Revenues 1,841 2,336 2,408 1,215 1,235 1.6%

(Excluding FX effect) 1,795 2,259 2,378 1,179 1,218 3.3%

Operating expenses 1,555 1,961 2,084 1,007 1,114 10.6%

(Excluding FX effect) 1,509 1,884 2,054 971 1,097 13.0%

Bad debt expense 113 185 200 94 98 4.3%

Operating income 286 375 324 208 121 -41.9%

Net Income 213 281 239 156 106 -32.4%

Income Statement (KRW Bn)

16.7%15.1%

17.6%

12.6%

10.2%

3.9%3.5% 3.5%

2.6%2.2%

2008 2009 2010 2011 1H12

Return on Equity & Return on Assets

ROE ROA

94114

148 190 200

135 142166

174 178

23

204 216

143.3%123.9% 127.7%

199.1% 197.0%

7

Excellent Asset Quality and Conservative Reserve Policy

30+ Day Delinquency Rate (%) Total Reserve VS Regulatory Requirement (KRW Bn)

0.7%

0.3% 0.4%

0.6% 0.6%

2008 2009 2010 2011 1H12 2009 2010 2011 1H12

189

378394

2008

Regulatory Requirement Reserve under Accounting Principles

Supplemental Reserve Total Reserve/ Regulatory Requirement

4.6x

4.9x

6.0x

5.4x 5.3x

3.2x

3.5x

4.4x

3.5x 3.4x

2008 2009 2010 2011 1H12

Dividend policy: Maximum leverage limit of 4x(on managed borrowings basis)

8

Leverage and Capital Adequacy Soundly Managed

Leverage Trend Capital Adequacy Ratio (KRW Bn)

Total Assets / Total Shareholders' Equity

Managed Borrowings / Total Shareholders' Equity

1,406 1,699

1,843 1,845 1,903

23.5% 22.5%18.7% 19.6% 19.9%

2008 2009 2010 2011 1H12

Adjusted Capital CAR

• Funding Balance : KRW 7,185Bn

• Long-term funding : 71.1%

• Maintain the proportions of ABS and CP

under 20% and 10%, respectively

• Diversify funding portfolio in terms of

currency, region and product

• Maintain the average maturity ratio of

liability-to-asset at over 100%

• Contingency plans under regular review

9

Well Diversified, Stable Funding Portfolio

Bonds

80.7%

Loans

2.4%

CP

4.5%

ABS

12.5%

Funding Portfolio by Product Funding Principles

10

Strong Liquidity Position and Well-Spread Debt Maturity

Liquidity Profile (Unit: KRW Bn) Debt Maturity Profile (Unit: KRW Bn)

360 391

650 743 760120 20

498

841 841

480 411

1,148

1,584 1,601

2008 2009 2010 2011 1H12

* Short-term Debt Coverage Ratio= (Cash + Unused committed credit line)/ Short-term debt balance

32.7%

18.6%

36.7%

79.0% 77.0%

Credit LineCash Short-term Debt Coverage Ratio*

Source: Company

840

1,577

1,250 1,233

650

248

320

30

40

100

149

298 450

16.6%

24.6%

22.9% 23.4%

9.0%

3.5%

1,190

1,766

1,648 1,683

650

248

2H12 2013 2014 2015 2016 2017~

CP LoanBond ABS

Hyundai Card Company OverviewHyundai Card Investor Presentation 1H 2012

I. Who is Hyundai Card?

13

The Premier Korean Credit Card Company

• Industry leader across key quality metrics

- Excellent asset quality with the industry’s lowest delinquency rate of only 0.6%

- Strong customer loyalty with high card usage per customer

• Marketing innovations differentiate brand and drive growth

- Strategic marketing program with Hyundai Motor Group

- Leadership position in super premium segment

• Seven-year-long partnership between two global leaders:

Hyundai Motor Group and GE Capital

- Strong governance with GE Capital's active involvement in management & daily operations

- Joint promotions with Hyundai Motor Group

• Strong credit profile based on robust fundamentals

- International – Fitch: BBB / S&P: BBB

- Domestic – AA+

- GE Capital acquires KRW 313bn equity interest in HCC

- Establishment of joint venturewith GE Capital

- GE Capital increases paid in capital by KRW 165bn

- 2006 ~ 2008Exercising of Warrants(Additional equity investment)

- GE Capital provides U$200mm back-up credit-line

54.0%

43.3%

- Innovative “Point Programs”

- Stable & solid operational base

- Extensive sales network

- Powerful financing arm

- Effective marketing tool

- Most successful joint venture

- Sole consumer finance window in Korea

- Advanced knowledge of risk management

- Financial support

- Active involvement in management and daily operations

2010

2008

2006

2005

Shareholder Financial & Operational Support

Relationship with Shareholders GE Capital’s Financial Support

2012 - Total Investment to date : U$642mm(As of 2Q12)

14

- GE Capital purchases KRW 200bn subordinated bond

15

Management Strategy

• Continuous product and service innovation and profit improvement to

overcome regulatory changes and intensifying market competition

• Enhance customer value through spending stimulation and increasing

customer loyalty

• Achieve sustainable growth through prioritizing risk management and

a strong capital structure

16

Committed to Transparent Corporate Governance

Board of Directors

• HMC 5 : GECC 4 : Outside directors 3

• GECC has veto rights

Risk Control Committee

• Member : 5 from HMC, 5 from GECC

• Frequency : Monthly

• Function

-Determination of risk indicator levels and appropriate course of actions in respect thereof

Executive Finance Committee

• Member : 4 from HMC, 3 from GECC

• Frequency : Monthly

• Function

-Approval of various operating expenses, Capex, business and funding plans

Compliance Review Board

• Member : 9 from HMC, 7 from GECC

• Frequency : Quarterly

• Function

-Formulation and execution of compliance strategy, schemes, and improvements

• C-Suite executives: Vice President, Deputy CFO, Deputy CRO, Deputy CMO, Controller

•Working level : GE employees also involved in day-to-day operations

• Transfer of advanced knowledge in various functions through best practice sharing program

GEPresence

17

Business Area Features

Credit Purchase

Lump sum• Single-payment purchases

• Repaid on a monthly billing cycle

Installment• Multiple-payment purchases

• Payment period of 2-12 months

Financial Products

Card loan• Unsecured loans to cardholders

• 3 – 36 month maturity

Cash advance• Cash withdrawal

• Lump sum or installment payback

Product Overview & Market Share

Market Share Trend

9.8%

11.8%

12.8%

13.8%

15.7% 15.7% 15.5% 15.5%

7.0%

8.8%

10.1%

11.2%

13.1%

14.1% 14.3% 14.4%

2005 2006 2007 2008 2009 2010 2011 1Q12

Total Credit Card Market (credit purchase*+ financial products)

Credit Purchase* Market

* Excludes corporate accounts

Source: FISIS

II. Premium Brand & Marketing

19

One of Korea’s Most Well Recognized & Respected Brands

Strong Brand Drives Higher Customer Loyalty Innovative Branding Activities

*88.1% (Source: TNS RI Research 2011)

Strategy:

- Liquid metal card plates

- British Rock Sound Identity - Pop-up stores

- Super event series

Emotional Communication

• Customizable card materials & design

• Music platform promoting independent artists

• Restaurant review Smartphone application

• ‘Pop-up stores’ in style-focused locations

Innovative Experience

Classic Dynamic

Result:

- Well respected, trendsetting image with high customer awareness*

- Higher customer loyalty & spending, evidenced through average card usage per customer

20

Effective Market Segmentation & Positioning

Customer Segmentation Product Positioning

• Joint marketing with Hyundai Motor Company- Vehicle price discounts based on reward point programs

• Tailored reward programs & brand tie-ins- Demographic catered promotions, discounts, and rewards

• Events & performances- Discounted access to Hyundai Card Super-event series

• Exclusivity- Limited membership, targeting VVIPs by invitation-only

• Premium services- Travel, leisure & luxury brand promotions

• VVIP Community- High-class events, fine culture performances & exclusive

lounges

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III. Macro & Industry Environment

22

Korea’s Macro Environment

GDP Growth Rate & Consumer Price Index

2.2%

0.2%

6.1%

3.6%

2.6%

4.7%

2.8% 3.0%

4.0%

2.7%

2008 2009 2010 2011 1H12

Source: Bank of Korea

GDP Growth Rate Consumer Price Index

Credit Card Spending & Usage Rate

279.3 303.9

350.7

390.2

106.6

49.7%52.8%

56.8%59.6%

63.3%

2008 2009 2010 2011 1Q12

Credit Card Spending (KRW Tn)

Credit card spending / Total private consumption

Source: Credit Finance Association

Korean Credit Card Market Features23

• Conservative lending environment

- Low usage of revolving credit card products, as full monthly balance payment

preferred

• Strong credit infrastructure

- Well developed credit bureau system provides a quantitative customer credit score

based on all previous credit history

• Cash-less society

- Ubiquitous acceptance of credit cards, high popularity of online shopping, and tax

incentives for credit card use

• Strict government oversight

- Regulations governing new origination practices and customer cash advance limits

24

Korea Credit Card Industry: Then & Now

Combined Asset portfolio Total Asset Quality (30+ Day Delinquency Rate)

35.1%

64.3%

64.9%35.7%

2003 1Q12

Credit Purchase Financial Products

Combined Capital Adequacy Ratio

Source: FSS

-5.5%

26.2%

2003 1Q12

28.3%

2.1%

2003 1Q12

Regulatory & Infrastructure Changes:

- Credit bureau system established

- Marketing regulations restricting new originations

- Companies must maintain capital adequacy ratio of above 8%

- Leverage limit of 6x (Dec. 2012)

IV. Asset Portfolio & Performance

26

Balanced Asset Portfolio of Credit and Financial Products

Asset Portfolio (Unit: KRW Bn)

2,990

3,508

4,507

5,616

7,136

9,1869,563 9,693

2005 2006 2007 2008 2009 2010 2011 1H12

44.0%

28.9%

12.6%

14.5%

48.5%

25.8%

10.7%

15.0%

40.7%

25.0%

12.6%

21.6%

42.8%

25.4%

10.6%

21.0%

41.3%

25.5%

9.9%

23.0%

Lump Sum Installments Cash Advance

Card Loan Others

50.6%

23.5%

12.3%

13.5%

58.5%

19.0%11.9%

7.9%

63.6%

12.2%14.4%5.0%

Best in Class Risk Management

Strong governance for risk monitoring Examples of pre-emptive risk management

Category Recent actions taken

Cash Advance

Lowered cash advance limits for lower credit quality customers

Card LoanTightened underwriting policy for heavy debtors

Credit Purchase

Tightened underwriting policy for revolving products and new originations

• Risk Control Committee (RCC)

– Decision making for most supreme risk

– Review portfolio risk performance

• Systematic New Product Risk Analysis

- Two-stage RCC approval process

- Pre-launch new product introduction and credit review point assessment

• Risk Appetite Management

– Establish guidelines for portfolio / asset quality

– Determine risk management strategy per product

• Portfolio Quality Review

– Monitoring of main risk indices

– Follow-up on effects of credit policy changes

• Stress Test & Contingency Planning

– Scenario analysis based on economic forecasting

– Prepare action plans per contingency stage

27

4.3%

2.2%

0.4%0.7%

0.3%0.4%

0.6% 0.6%

2005 2006 2007 2008 2009 2010 2011 1H12

Historical Asset Quality

30+ Day Delinquency Rate (%)

28

29

Historical Reserve & FSS Requirement Coverage Ratio

125 89

52 94.1 114

148 190 200

139 158 104

134.8142

166 174 178

23

204 216

2009 2010 2011 1H12

189

378394

2008

111.4%

178.1%200.4%

143.3%123.9% 127.7%

199.1% 197.0%

Total Reserve VS Regulatory Requirement (KRW Bn)

Regulatory Requirement Reserve under Accounting Principles Supplemental Reserve Total Reserve/ Regulatory Requirement

K-GAAP

2005 2006 2007

K-IFRS

Sustainable Growth Based on Strong Fundamentals

2006 2007 2008 2009 2010 2011 1H11 1H12 YoY

Operating Revenues 1.109 1,121 1,594 1,841 2,336 2,408 1,215 1,235 1.6%

(excl. FX effect) 1,109 1,116 1,451 1,795 2,259 2,378 1,179 1,218 3.3%

Operating Expenses 809 1,049 1,337 1,555 1,961 2,084 1,007 1,114 10.6%

(excl. FX effect) 809 1,044 1,193 1,509 1,884 2,054 971 1,097 13.0%

Card expenses 314 380 506 730 863 924 447 530 18.4%

Interest expenses 113 139 187 220 319 357 181 173 -4.5%

SG&A Expenses 245 296 367 398 484 538 236 281 19.3%

PPOP 39 26 36 441 570 525 304 220 -27.5%

Bad Debt expenses 95 42 102 113 185 200 94 98 4.3%

Provision for unused Credit Line

- 142 -3 42 14 1 2 2 -24.4%

Operating Income 300 73 258 286 371 324 208 121 -41.9%

ROA 8.9% 6.0% 3.9% 3.5% 3.5% 2.6% 3.5% 2.2% -

ROE 34.6% 23.9% 16.7% 15.1% 17.6% 12.6% 17.5% 10.2% -

Income before Tax 306 109 272 295 371 324 208 121 -41.9%

Net Income 281 234 202 213 281 239 156 106 -32.4%

K-IFRSK-GAAP

Income Statement (KRW Bn)

30

V. Capitalization, Funding & Liquidity

Capital Adequacy Ratio (Unit: KRW Bn)

32

Strong Capital Structure

383

1,080

1,306 1,406

1,699 1,843 1,865 1,903

12.4%

31.3%28.4%

23.5% 22.5%18.7% 19.6% 19.9%

2005 2006 2007 2008 2009 2010 2011 1H12

Adjusted Capital CAR

12.3x

4.1x4.1x

4.6x 4.9x

6.0x5.4x 5.3x

11.3x

2.6x 2.6x3.2x

3.5x

4.4x

3.5x 3.4x

2005 2006 2007 2008 2009 2010 2011 1H12

Well Controlled Leverage

Dividend policy set: Maximum leverage limit of 4x (on managed borrowings basis)

Leverage Trend

Total Assets / Total Shareholders' Equity Managed Borrowings / Total Shareholders' Equity

33

2,664

2,199

2,933

3,980

5,165

7,197 7,068 7,185

2005 2006 2007 2008 2009 2010 2011 1H12

Bond-domestic Bond-overseas ABS-domestic ABS-overseas Bank loans CP

Diversification of Funding Portfolio over Time

Managed Borrowings (KRW Bn)

% of LT Funding

50.5% 50.5% 62.6% 63.1% 57.3% 56.5% 71.6% 71.1%

34

50.1%

18.8%

22.9%

80.4%

12.5%

4.5%

59.4%

15.9%

9.3%

47.3%

19.5%

14.8%

13.6%

49.6%

10.1%

14.1%

8.3%

15.1%

61.8%

7.7%

11.0%

6.4%

11.0%

73.2%

4.6%

9.2%

10.1%

83.6%

6.9%

6.3%

35

Substantial Improvement in Liquidity Position

Liquidity Profile (KRW Bn)

65 143 149

360 391

650743 760

150

120 20

498

841 841

65143

299

480411

1,148

1,584 1,601

2005 2006 2007 2008 2009 2010 2011 1H12

4.9%13.1%

27.3%32.7%

18.6%

36.7%

79.0% 77.0%

* Short-term Debt Coverage Ratio= (Cash + Unused committed credit line)/ Short-term debt balance

Credit LineCash Short-term Debt Coverage Ratio*

Investor Relations Contacts

Jungsang Kim, Head of Investor RelationsPhone +82 2 2167 7034jungsang.kim@hyundaicard.com

Brett Moffat, Manager of Investor RelationsPhone +82 2 2167 5510brett@hyundaicapital.com

Minchul Seo, Deputy General Manager of Investor RelationsPhone +82 2 2167 7051mcseo@hyundaicapital.com

Jay Moon, Manager of Investor RelationsPhone + 82 2 2167 5312jay.moon@hyundaicard.com

http://ir.hyundaicard.com/