Hyundai Motor CompanyQ2 2020 Business ResultsJul 23, 2020

Cautionary Statement with Respect to Forward-Looking Statements

1

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.

Sales Summary

Table of Contents

P. 3 ~ 5

P. 6 ~ 12Financial Summary

Appendix P. 13 ~ 19

Sales Summary

Global Wholesale P. 4

Sales Analysis P. 5

KoreaChina N. AmericaEurope

(Thousand units)Q2 2019 Q2 2020

RussiaIndia Others2S. America

Global Wholesale

HMC Global Sales4

1 US and Europe are based on retail sales, China ex-Factory, India wholesale2 MEA, Asia-Pacific, Other regions and CV(ex. Korea CV)3 Western Europe excluding CV4 Wholesale including CV, Q1 2020 sales including CKD sales

4

226200118141

-16.4%

13521571149

-52.5% -37.3%

255128127 791402283

-77.7% -72.8% -43.5%

-36.3%

7041,105 585961

-39.1%

+12.7%

-50.1%

Global Demand1

Q2 2019 Q2 2020 YoY

(10K units)

45 54 +18.8%

443 294 -33.7%

428 205 -52.2%

470 483 +2.7%

71 15 -78.2%

2,190 1,436 -34.4%

Wholesale Wholesale(ex. China)

Korea

US

Europe3

China

India

Global

Sales Analysis

Sales by Segment

5

34.6%

6.2%

40.1%

6.0%

Q2 2019 Q2 2020

1,105

704

7.8%

9.0%

26.3%

8.4%

2.4%

40.1%

6.0%

2.7%

4.8%

25.7%

12.2%

5.4%

40.8%

8.4%

※ GV80 is included in Genesis, sales portion of SUV is 42.5% with GV80.

Key Growth Factors

Outlook

G80

Elantra

∙ Refreshed Elantra launched in April

∙ Recorded 10K contracts on the launching day

with its innovative design and performance

∙ Global launches to follow in H2

“Continued mix improvement from new model launches”

GV80

Genesis

∙ Strong sales of newly launched GV80 and G80

∙ Genesis sales portion : Q2 2019 2.4% → Q2 2020 5.4%

→ Domestic : Q2 2019 8.3% → Q2 2020 16.2%

∙ 40K units of backlog at the end of Q2

∙ Sales growth to continue with global launches in H2

∙ Record high sales of Genesis brand

SUV sales increase with launches of new Tucson and Santa Fe F/L

Genesis line-up expansion with G70 F/L and GV70

Global launches of delayed models to be resumed in H2

(Thousand units)

A

B

C

D

Genesis

SUV

Others

Financial Summary

Financial Summary P. 7

Revenue by Divisions P. 8

Revenue Analysis P. 9

Operating Income Breakdown P. 10

Operating Income Analysis P. 11

Non-operating Income & Net Income P. 12

Q2 2019 Q1 2020 Q2 2020 YoY QoQ

Revenue 26,966 25,319 21,859 -18.9% -13.7%

Cost of Good Sold 22,343 21,054 18,147 -18.8% -13.8%

Gross Profit 4,623 4,265 3,712 -19.7% -13.0%

Margin (%) 17.1% 16.8% 17.0%

SG&A 3,385 3,402 3,122 -7.8% -8.2%

Operating Income 1,238 864 590 -52.3% -31.7%

Margin (%) 4.6% 3.4% 2.7%

Non-operating Income

148 -140 6 -96.0% Turn-to-Profit

Income before Tax 1,386 724 596 -57.0% -17.7%

Tax 387 172 219 -43.4% +27.6%

Net Income 999 553 377 -62.2% -31.7%

Financial Summary

7

(Billion KRW)

Revenue by Division

21,027

16,057

Q2 2019 Q2 2020

4,155

4,341

Q2 2019 Q2 2020

1,784

1,461

Q2 2019 Q2 2020

Sales volume declined Strong retail loan growth Sales decreased from COVID-19

8

+187(+4.5%)

-4,971(-23.6%)

-323(-18.1%)

Automotive Finance Others(Billion KRW)

Q2 2019 Q2 2020

26,966

21,859

+265

(Billion KRW)

Volume

Product mix and etc.

F/X

Others

9

-8,641

+3,405

-5,107(-18.9%)

+307

-137

Revenue Analysis

-111 -19

60 42

250 272

1,039

295

Q2 2019 Q2 2020

1,238

590

70% 75% 80% 85%

Q2 2020

Q2 2019

Operating Income Breakdown

Operating Income by Division COGS Ratio

SG&A

82.9%

83.0%

10

889 836

302 312

602 518

899 744

693 711

Q2 2019 Q2 2020

3,1223,385

-264(-7.8%)

-647(-52.3%)

(Billion KRW)

Automotive

Finance

Others

Adjustment

Salary

Marketing

Warranties

Research

Others 1

1Commission Fees, depreciation, etc.

Operating Income Analysis

11

Q2 2019 Q2 2020

1,238

590-121

Finance Division

Cost

Others

+143

-129

-647(-52.3%)

+1,051

+187

-1,658

+22

(Billion KRW)

F/X

Mix

Improvement Volume

81

-51

55

-35

13

92

Q2 2019 Q2 2020

148

Non-operating Income & Net Income

919

227

80

150

Q2 2019 Q2 2020

999

377

12

-142 -622(-62.2%)

6

(-96.0%)

Non-operating Income Net Income(Billion KRW)

Non-controlling

Controlling

Finance

Equity Income

Others

Appendix

Retail Sales by Region P. 14

P. 15

P. 16

Statement of Income

P. 17

Statement of Financial Position

Statement of Cash Flows

(Thousand units) Q2 2019 Q2 2020 YoY

Korea 200 226 12.7%

US 192 145 -24.1 %

Western Europe 139 60 -56.9%

India 123 42 -65.8%

China 159 127 -20.3%

AMEA 77 37 -53.5%

Brazil 53 23 -55.8%

Russia 47 23 -52.1%

Others 153 84 -44.7%

Total 1,142 767 -32.8%

Retail Sales by Region

14

※ 2020 sales includes CKD sales

(Billion KRW) Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 YoY QoQ

Revenue 26,966 26,969 27,824 25,319 21,859 -18.9% -13.7%

Gross Profit 4,623 4,428 4,691 4,265 3,712 -19.7% -13.0%

Margin (%) 17.1 16.4 16.9 16.8 17.0

SG&A 3,385 4,050 3,527 3,402 3,122 -7.8% -8.2%

Portion (%) 12.6 15.0 12.7 13.4 14.3

Operating Income 1,238 379 1,164 864 590 -52.3% -31.7%

Margin (%) 4.6 1.4 4.2 3.4 2.7

Income before tax 1,386 429 1,132 724 596 -57.0% -17.7%

Margin (%) 5.1 1.6 4.1 2.9 2.7

Net Income 999 460 772 553 377 -62.2% -31.7%

Margin (%) 3.7 1.7 2.8 2.2 1.7

D&A1 994 1,018 1,041 1,059 1,088

EBITDA 2,232 1,396 2,206 1,923 1,678

Statement of Income

15

1 Includes lease amortization under IFRS 16

(Billion KRW) End of 2019 Q2 2020 Diff. % change

Asset 194,512 201,805 7,292 3.7%

Current Asset(a) 76,083 79,026 2,943 3.9%

Liabilities(b) 118,146 125,756 7,610 6.4%

Current Liability(c) 53,314 54,214 900 1.7%

Debt(d) 81,372 89,542 8,170 10.0%

Provision) 7,145 7,277 132 1.8%

Equity(e) 76,366 76,048 -318 -0.4%

Capital Stock 1,489 1,489 - -

Capital Surplus 4,197 4,197 - -

Retained Earnings 68,250 68,114 -136 -0.2%

Current Ratio(a/c) 142.7% 145.8%

Liability to Equity(b/e) 154.7% 165.4%

Debt to Equity(d/e) 106.6% 117.7%

Statement of Financial Position

16

(Billion KRW) Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020

Beginning 8,953 9,492 9,209 8,682 10,374

Net Income 999 461 772 553 377

Depreciation 629 646 665 663 676

Amortization 322 325 325 346 363

Acquisition of Tangible -621 -862 -1,056 -1,128 -1,062

Acquisition of Intangible -351 -418 -669 -331 -397

Dividends paid -855 -263 - -4 -890

Others 416 -172 -563 1,593 1,442

Ending 9,492 9,209 8,682 10,374 10,884

Statement of Cash Flows

17

Thank you