Hyundai Capital Hyundai Capital is...Hyundai Capital Investor Presentation 3Q13

DisclaimerThese presentation materials have been prepared by Hyundai Capital Services., Inc. (“HCS or the Company”), solely for the use at this presentation andhave not been independently verified. No representations or warranties, express or implied, are made as to, and no reliance should be placed on, theaccuracy, fairness or completeness of the information presented or contained in this presentation. Neither the Company nor any of its affiliates,advisers or representatives accepts any responsibility whatsoever for any loss or damage arising from any information presented or contained in thispresentation. The information presented or contained in this presentation is current as of the date hereof and is subject to change without notice andits accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or representatives make any undertaking to update any suchits accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or representatives make any undertaking to update any suchinformation subsequent to the date hereof. This presentation should not be construed as legal, tax, investment or other advice.

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Key Highlights 3Q13

• Strong Fundamentals- Good profitability: Operating income of KRW 391 billion and an ROA of 2.3%

- Stable asset quality: 30+ day delinquency rate of 2.6%

- Strong capital structure: Leverage of 6.5x and capital adequacy ratio of 15.8%

1

- Strong capital structure: Leverage of 6.5x and capital adequacy ratio of 15.8%

• Committed & Capable Shareholder Support- HMC showed resilient performance with global sales up 7.5% (YoY)

- GE Capital continues to provide committed financial and operations support

• Solid Credit Profiles - Global Ratings: S&P (BBB+), Moody's (Baa1), Fitch (BBB+)

- Niche Markets: RAM (AAA), JCR (A+)- Niche Markets: RAM (AAA), JCR (A+)

- Domestic Ratings: AA+

• New Growth Engine: Global Expansion- Performance starting in China and UK, Record-high performance in the USA

- True captive financing arm covering from the domestic market to global markets

Resilient Economic Growth and Steady Demand for New Cars

GDP Growth Rate & Unemployment Rate Domestic Auto Sales (‘000s)

GDP Growth Rate Unemployment Rate

2

� Despite of slower GDP growth, unemployment rate has been stabilized

� Sales slightly downed due to the sluggish consumption but, HMG’s M/S trended up with superior brand power

HMC HMC+KMC Market ShareKMC Others

6.1%

3.6%

3.6% 3.7%3.4%

3.2% 3.2%

GDP Growth Rate Unemployment Rate

413 485 493 482

279321 297

261

188 198

80.1%78.2%

79.9%81.5% 81.6%

80.5%80.5%80.5%80.5%

1,3941,465 1,475

HMC HMC+KMC Market ShareKMC Others

1,411

1,014

816816816816(HMG)(HMG)(HMG)(HMG)

832 832 832 832 (HMG)(HMG)(HMG)(HMG)1,020

0.2%

3.6%

2.0%2.4%

2009 2010 2011 2012 3Q13

Source: Bank of Korea

703 660 684 668 482 477

351 339

2009 2010 2011 2012 3Q12 3Q13

8.8%8.8%8.8%8.8%

9.6%9.6%9.6%9.6%

19,80619,80619,80619,806 20,28620,28620,28620,286 20,37820,37820,37820,378

Receivables Breakdown by Product (KRW Bn)

Low Risk-focused Product Portfolio3

� Maintain auto asset to non-auto asset in the proportion of 80:20 ⇒ balance btw stability & Profitability

� Over 90% of the total receivables have underlying assets such as vehicles or real estate

55558888.1%.1%.1%.1%57.2%57.2%57.2%57.2% 57.6%57.6%57.6%57.6% 54.2%54.2%54.2%54.2% 52.5%52.5%52.5%52.5%

15.8%15.8%15.8%15.8%

16.3%16.3%16.3%16.3%17.3%17.3%17.3%17.3% 18.8%18.8%18.8%18.8% 19.4%19.4%19.4%19.4%7.2%7.2%7.2%7.2%

8.4%8.4%8.4%8.4%7.9%7.9%7.9%7.9% 6.9%6.9%6.9%6.9% 7.2%7.2%7.2%7.2%9.9%9.9%9.9%9.9%

8.7%8.7%8.7%8.7%9.1%9.1%9.1%9.1% 9.7%9.7%9.7%9.7%

1111.7%.7%.7%.7%

10.9%10.9%10.9%10.9%

9.9%9.9%9.9%9.9%8.8%8.8%8.8%8.8%

9.9%9.9%9.9%9.9%

8.1%8.1%8.1%8.1%7.4%7.4%7.4%7.4%8.8%8.8%8.8%8.8%

7.4%7.4%7.4%7.4%

16,48016,48016,48016,480

18,78818,78818,78818,78819,80619,80619,80619,806 20,28620,28620,28620,286 20,37820,37820,37820,378

8.7%8.7%8.7%8.7%1.5%1.5%1.5%1.5%

8888

2009200920092009 2010201020102010 2011201120112011 2012201220122012 3Q133Q133Q133Q13

New Car Financing Auto Lease Used Car Financing Personal Loan Mortgage GECK Others

81.1%81.1%81.1%81.1% 81.9%81.9%81.9%81.9% 82.8%82.8%82.8%82.8%AutoAutoAutoAuto----related related related related AssetsAssetsAssetsAssets (New Car, Auto Lease,

Used Car)

ProductsProductsProductsProducts79.9%79.9%79.9%79.9% 79.2%79.2%79.2%79.2%

2010 2011 2012 3Q12 9M13 YoY

Income Statement (KRW Bn)

Good Profitability Underscores Strong Fundamentals

Return on Equity & Return on Assets

ROE ROA

4

� Even in 2013, operating income decreased due to slower new car sales & bigger bad debt expense

� Return on assets increased up to 2.3% with one-time effect such as the disposal of office building

21.3%22.0%

20.3%

14.7% 15.3% 14.7%14.7%14.7%14.7%

2010 2011 2012 3Q12 9M13 YoY

Operating Revenues 3,274 3,331 3,542 2,496 2,373 -4.9%

(Excluding FX effect) 2,889 3,125 3,071 2,300 2,200 -4.4%

Operating expenses 2,644 2,672 2,953 2,015 1,982 -1.6%

(Excluding FX effect) 2,259 2,466 2,483 1,819 1,810 -0.5%

ROE ROA

2.6%2.8%

2.6%2.2%

2.4% 2.3%2.3%2.3%2.3%

2009 2010 2011 2012 9M12 9M13

Bad debt expense 145 354 377 261 311 19.1%

Operating income 630 659 589 481 391 -18.7%

Net Income 489 507 432 355 356 0.2%

Stable Asset Quality and Conservative Reserve Policy

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

5

� 30+ Delinquency rate started to decrease due to the beginning of the macro economy recovery

� Maintained conservative reserve policy which is always higher than regulatory requirement

280 381

153.3%

118.0% 117.1% 108.8% 109.1%

1.8%1.6%

2.0%

2.5%**2.7%** 2.62.62.62.6%**%**%**%**

610665

Total 30+ delinquency rate New Car 30+ delinquency rate Regulatory Requirement Reserve under Accounting Principles

Supplemental Reserve Total Reserve/ Regulatory Requirement

K-IFRSK-GAAP

ExceptionalPeriod*

779

288401

521 611

714

442 474345

385398

265 280

0.7%0.6%

0.8%

1.0% 1.1% 1.1%1.1%1.1%1.1%

2009 2010 2011 2012 2Q13 3Q13 2009 2010 2011 2012

* After global financial crisis, applied too tighten underwriting policy

3Q13

** Included NPL asset acquired from a commercial bank in 4Q12

Sound Capital Structure Maintained

Leverage Trend Capital Adequacy Ratio (KRW Bn)

6

� Leverage was controlled below conservative internal ceiling of 8X while following leverage regulation of 10X

� Capital adequacy ratio has been well controlling above the regulatory guideline of 7%

15,854

20,749 21,919 21,885

20,378

7.4X

9.3X

8.3X

7.2X

6.5X

Total asset Total Assets / Total Shareholders' Equity

Leverage Regulation < 10X

2,432 2,375

2,622 2,954

3,234

15.7%

13.7%13.0%

14.5%

15.8%

Adjusted Capital CAR

FSS Guide Line > 7.0%

15,854

2009 2010 2011 2012 3Q13 2009 2010 2011 2012 3Q13

Diversified Funding by Type, Duration & Region

� In order to reduce risk of wholesale funding, maintain long-term funding > 65%� Furthermore, funding sources are diversified into global markets as well as niche markets

Funding Portfolio by Product Funding Strategies in 2013

ABS,

7

Ⅰ.Ⅰ.Ⅰ.Ⅰ. More Weight on LongMore Weight on LongMore Weight on LongMore Weight on Long----term Fundingterm Fundingterm Fundingterm Funding

• Long-term funding: 70% from 65%

• ALM Target: 140%

Ⅱ.Ⅱ.Ⅱ.Ⅱ. Expanding Alternative Funding Expanding Alternative Funding Expanding Alternative Funding Expanding Alternative Funding

• Structure finance : Auto lease ABS

• Retail Bond, Bond with optionFunding Portfolio by Currency

Bonds, 75.6%

CP, 2.4%

Loans, 8.8%

ABS, 13.3%

•Balance : KRW 17, 194Bn

• Long-term funding: 70.7%

•Overseas funding: 35.5%

Key Issuance since 2012• 144/RegS: 5.5yrs, $500M

• Dimsum: 1.5yrs, RMB500M

• Samurai: 1.5yrs/2yrs, JPY20Bn/8Bn

• ABS: $500M

• Kangaroo: AU$ 250M

• Samurai: 2yrs, JPY25Bn

Ⅲ.Ⅲ.Ⅲ.Ⅲ. Strengthening Overseas Funding CapabilityStrengthening Overseas Funding CapabilityStrengthening Overseas Funding CapabilityStrengthening Overseas Funding Capability

• Product & Regional diversification

• Target # of accessible markets : 6 global markets

Funding Portfolio by Currency

0.5%

2.2%

2.9%

3.5%

5.9%

19.6%

65.5%

CNY

JPY

MYR

AUD

CHF

USD

KRW

Cash Credit Line

Strong Liquidity Position

� Financial Receivables

� Liquidity coverage was extended to 6M from 3M in 2011 and since that, well-achieving the target

� ALM policy : Funding duration > asset duration

Liquidity Profile (Unit: KRW Bn) Cash Flow Profile (KRW Bn)

Short-term Debt Coverage Ratio*

8

36.0%39.1%

63.5%69.2%

66.3%

2,511 2,365

3,808 3,580

3,340

Cash Credit Line � Financial Receivables

� Liabilities (Debt)

Short-term Debt Coverage Ratio*

6M Coverage

10,510

5,758 2,516

771 274 549

~1Y 1-2Y 2-3Y 3-4Y 4-5Y Over 5Y

4,627 4,445 3,424

2,613 1,405

60

739 1,027

1,297 1,100 977

1,367 1,338

2,511 2,480

2,363 2,106

2,365

2009 2010 2011 2012 3Q13

� Net Cash Flow

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

~1Y 1-2Y 2-3Y 3-4Y 4-5Y Over 5Y

5,883

1,313 -908 -1,842 -1,131

489

~1Y 1-2Y 2-3Y 3-4Y 4-5Y Over 5Y

Why Global Business?

Ⅰ. New Growth Engine

Global Expansion to Support HMG’s Sales and to Find New Growth9

Current Overseas Operations

UK JV

Office/Corporation without funding

Corporate with Direct Funding

• Limited growth within the domestic auto financing market

• HMG's solid performance

Ⅱ. Request from HMG

• Needs of captive finance companies to support global sales

Hyundai Capital AmericaEstablished : Sep.1989

Financial receivables : USD 20.2 bn

Capital : USD 1.2Bn

Stake : HMA 85%, KMA 15%

UK JV

Established : Dec 2011

Financial receivables : ￡ 640mm

Capital : ￡ 25mm

Stake : HCS 29.99%

Hyundai Capital Europe

Established : May 2010

Capital : € 2.8mm

Stake : HCS 100%

China JV

Established : Jun 2012

Financial receivables : RMB 3.2 bn

Capital : RMB 500 mm

Stake : HCS 46%

Hyundai Capital IndiaAdvisory Branch

Hyundai Capital RussiaEstablished : May 2011

Capital : € 290,000

Stake : HCE 100%

Local (Financial) Institution and the form of JVs

• Alliance with the local financial institutions to lessen entry risk

Hyundai Capital Germany

Established : Sept 2009Capital : € 2mm

Stake : HCS 30.01%

Established : Nov 2012

Australia Post

Representatives dispatched

Brazil Post

Representatives dispatched

(Financial receivables, Capital: as of Sep. 2013)

10

Business Strategy & Global Vision

Business Strategy

StepⅠ.StepⅠ.StepⅠ.StepⅠ. Captive finance focusingCaptive finance focusingCaptive finance focusingCaptive finance focusing

• Operating Business, focusing on New Car

Financing within the Captive Markets

Step Ⅱ.Step Ⅱ.Step Ⅱ.Step Ⅱ. Diversifying Product LineDiversifying Product LineDiversifying Product LineDiversifying Product Line----up up up up

• Diversifying product line-up including used-car

financing

StablizationStablizationStablizationStablizationFinancing within the Captive Markets

• Acquiring Market Knowledge

financing

• Diversifying sources of profit based on auto financing

Global Auto Sales Volume (As of year 2012, Unit : 00000) Global Vision

Next step

1,4501,470

1,403

HMG TotalHMG Total

Ⅰ.Ⅰ.Ⅰ.Ⅰ. High PTRHigh PTRHigh PTRHigh PTR

Becoming a true Becoming a true Becoming a true Becoming a true

captive financing captive financing captive financing captive financing

DriversDriversDriversDrivers EffectEffectEffectEffect

USA UK China W-Europe India Brazil Russia Korea

204 203

364294

126 126 126 126 (8.7%)

135 135 135 135 (9.1%)39 39 39 39 (19.2%)15 15 15 15 (4.0%) 36 36 36 36 (12.3%)14 14 14 14 (6.9%)

14181 81 81 81 (5.8%)

115 115 115 115 (81.5%)

Ⅰ.Ⅰ.Ⅰ.Ⅰ. High PTRHigh PTRHigh PTRHigh PTR

Ⅱ.Ⅱ.Ⅱ.Ⅱ. Usage ratio of Usage ratio of Usage ratio of Usage ratio of

financingfinancingfinancingfinancing

captive financing captive financing captive financing captive financing

arm covering most arm covering most arm covering most arm covering most

of global markets of global markets of global markets of global markets

and the domestic and the domestic and the domestic and the domestic

marketmarketmarketmarket

11

HCS' Strategy & Commitment

Product

• New Car/Auto lease : Shifting a paradigm into

marketing driven market and holding above 80%

market share

Commitment to InvestorsStrategy in 2013

•Moderate asset growth targeting 80% for Moderate asset growth targeting 80% for Moderate asset growth targeting 80% for Moderate asset growth targeting 80% for

auto assets and 20% for nonauto assets and 20% for nonauto assets and 20% for nonauto assets and 20% for non----auto assetsauto assetsauto assetsauto assetsProduct

Risk

market share

• Used Car : Utilizing our market position for future

growth under new regulation

• Non-Auto : Taking advantage of X-sell

• Implementing effective collection strategy

• Focusing on improving collection rate of early

delinquent assets

•Maintaining our current conservative treasury policy

auto assets and 20% for nonauto assets and 20% for nonauto assets and 20% for nonauto assets and 20% for non----auto assetsauto assetsauto assetsauto assets

• IdealIdealIdealIdeal----balance between profitability and balance between profitability and balance between profitability and balance between profitability and

solid asset qualitysolid asset qualitysolid asset qualitysolid asset quality

• Strengthening financial stability by putting Strengthening financial stability by putting Strengthening financial stability by putting Strengthening financial stability by putting

more focus on longmore focus on longmore focus on longmore focus on long----term funding ( >70%) term funding ( >70%) term funding ( >70%) term funding ( >70%)

• Entering new markets and products to Entering new markets and products to Entering new markets and products to Entering new markets and products to

complete diversification strategycomplete diversification strategycomplete diversification strategycomplete diversification strategy

Treasury

Global Business

- 6M liquidity coverage

- ALM-based funding

- Diversification of funding resources

• Performing in global market as UK & China

• Germany & Canada : Plans to establish a captive

financing arm

complete diversification strategycomplete diversification strategycomplete diversification strategycomplete diversification strategy

• Expanding global business while Expanding global business while Expanding global business while Expanding global business while

simultaneously stabilizing existing global simultaneously stabilizing existing global simultaneously stabilizing existing global simultaneously stabilizing existing global

operationsoperationsoperationsoperations

Hyundai Capital Hyundai Capital Company OverviewHyundai Capital Investor Presentation 3Q13

I. Who is Hyundai Capital?

No.1 Consumer Finance Company

• Leading auto financier in Korea with dominant market share

• Nine-year-long partnership between two global leaders;

12

• Nine-year-long partnership between two global leaders;

Hyundai Motor and GE Capital - Jointly formed boards ensure active oversight

- GE Capital appoints key executives in risk management & finance

• Increasingly profitable since the establishment of the joint venture

• Captive finance company for Hyundai Motor Group in Korea, and

’GE Capital’s only operating platform in Korea

• Excellent credit ratings based on strong fundamentals- Fitch: BBB+(S) / S&P: BBB+(S) / Moody’s: Baa1(S) / Domestic: AA+(S)

- Leading auto maker in Korea

with approximately 80% market share

- Stable & solid operational base

Committed Shareholder Financial & Operational Support

Relationship with Shareholders GE Capital’s Financial Support

13

2013201320132013 -GE Capital total investment as of 3Q13 (US$ 1.6bn)

- HCS is GE Capital’s sole consumer finance business in Korea

- GE Capital provides US$ 871mm in direct funding

- GE Capital increases its back-up credit Line to US$ 1 bn

56.5%- Stable & solid operational base

- Extensive sales network

- Powerful financing arm

- Effective marketing tool

- Most successful joint venture

- Sole consumer finance window in Korea

2009200920092009

2007200720072007

2006200620062006

2012201220122012 - GE Capital extends credit line(Total investment as of 2012: US$ 1.9bn)

- GE Capital acquires 38% equity interest in HCS

- GE Capital increases its holdings to 43.3%

- GE Capital provides US$ 600mmback-up credit line

finance business in Korea

43.3% - Advanced knowledge on risk management

- Financial support

- Active involvement in dailyoperations as well as management

2005200520052005

2004200420042004

• Maintain leadership in auto financing while operating in non-auto financing sector to diversify business portfolio

Strategy : Capitalize on Our Leading Position14

• Use innovative marketing to attract customers and keep them satisfied

• Expand internationally through providing financing services to HMC/KMC’s global customers’

• Place top priority on stringent risk management

Committed to Transparent Corporate Governance

Board of DirectorsBoard of DirectorsBoard of DirectorsBoard of Directors

•Members : 4 from HMC, 3 from GECCGECC’s veto right

15

GECC’s veto right

Risk Control CommitteeRisk Control CommitteeRisk Control CommitteeRisk Control Committee

• Member : 5 from HMC, 5 from GECC

• Frequency : Monthly

• Function

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

Executive Finance CommitteeExecutive Finance CommitteeExecutive Finance CommitteeExecutive Finance Committee

• Member : 4 from HMC, 3 from GECC

• Frequency : Monthly

• Function

-Approval of various operating expenses, Capex, business and

Compliance Review BoardCompliance Review BoardCompliance Review BoardCompliance Review Board

• Member : 9 from HMC, 7 from GECC

• Frequency : Quarterly

• Function

-Formulation and execution of compliance strategy, schemes, and and appropriate course of actions in

respect thereofexpenses, Capex, business and funding plans

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

II. Macro Environment

Korea’s Macro Environment

GDP Growth Rate & Government Debt to GDP ratio

Key Interest Rate & 3Y KTB Rate

37.9%

GDP Growth Rate Government Debt to GDP 5.323.89

3.74 3.682.82

Key rate(%) 3Y KTB(%)

16

6.1%

3.6%

2.4%

33.8% 33.4% 34.0%

3.00 2.00 2.50 3.25

2.50

2.82

Consumer Confidence Index & Unemployment Rate

Germany102

104

2009 2010 20112008

* As of May 23th 2013, HCS’ bond rate with 3 year maturity is 3.32%

3Q13

0.2%

2.0%2.4%

2009 2010 2011 2012 3Q13

KoreaKoreaKoreaKorea

Japan U.KU.S.A

Australia

CanadaFrance

Germany

94

96

98

100

102

0% 2% 4% 6% 8% 10% 12%

Unemployment rate

CC

I

Source: Bank of KoreaSource: OECD* CCI: Consumer confidence index / Unemployment rate (as of FY2012)

73.1% 73.6%

76.9%

80.1%78.2%

79.9% 81.5% 81.6% 80.5%

Domestic Auto Market

Domestic Auto Sales (‘000s)

HMC HMC+KMC Market ShareKMC Others

17

252 271272 316

413 485 493 482

351 339

320 313322 267

278320 296

261

188 198

1,1431,1431,1431,143 1,1651,1651,1651,1651,2191,2191,2191,219

1,1541,1541,1541,154

1,3941,3941,3941,3941,4651,4651,4651,465 1,4741,4741,4741,474

1,4111,4111,4111,411

1,0201,0201,0201,020 1,0141,0141,0141,014

72.0% 73.1% 73.6%

571 581 625 571 703 660 684 668

482 477

252 351 339

2005200520052005 2006200620062006 2007200720072007 2008200820082008 2009200920092009 2010201020102010 2011201120112011 2012201220122012 3Q123Q123Q123Q12 3Q133Q133Q133Q13

Source: KAMA

Korean Consumer Finance Market’s Unique Features

• Conservative lending environment- Average auto loan life of 1.5Y (notional life of 36M + amortization structure)

- Average down-payment for a car is approximately 30%

18

- Average down-payment for a car is approximately 30%

- Low usage of revolving credit card products

• Favorable market environment for captive finance companies- New car dealerships exclusively managed by automakers

- Stable second-hand car market: high residual value of used cars

• Strong credit infrastructure’- Government’s strict regulation on LTV & DTI Ratios

· Average LTV ratio for mortgages is less than 50% (Commercial Banks)

-Well developed credit bureau system

• Industry Assets

Hyundai Capital's Position in the Industry

Dominant Position in Industry** Incomparably Profitable and Sound

Total Industry Asset Size :

KRW 45,865 bn

•Profitability: ROE (Net Income/Equity)

OthersHCS

19

OthersOthersOthersOthers52.5%52.5%52.5%52.5%

HCSHCSHCSHCS47.5%47.5%47.5%47.5%

21.3% 22.0%20.3%

14.7% 15.4%

5.8% 5.5% 4.6% 4.6%6.5%

2009 2010 2011 2012 2Q13

KRW 45,865 bn

• Industry Operating Income

HCSHCSHCSHCS

0000 0000

Total

•Asset Quality: 30+Day Delinquency Rate

3.2% 3.2%3.5%

* Source: Financial Statistics Information System

OthersOthersOthersOthers49.2%49.2%49.2%49.2%

HCSHCSHCSHCS50.8%50.8%50.8%50.8%

Total Industry Operating Income Size:

KRW 727 bn

* Source: Financial Statistics Information System, at end of June 2013** Installment Finance Industry

1.8%1.6%

2.0%

2.5%2.7%

3.2% 3.2%

2.8%

3.2%3.5%

2009 2010 2011 2012 2Q13

III. Asset Portfolio & Financial Performance

New Car Financing Auto Lease Used Car Financing Personal Loan Mortgage GECK Others

7.4%7.4%7.4%7.4% 8.1%8.1%8.1%8.1%1.5%1.5%1.5%1.5%

Historical Asset Portfolio Breakdown

Receivables Breakdown by Product (KRW Bn)

20

8.7%8.7%8.7%8.7%

1.7%1.7%1.7%1.7%18,78818,78818,78818,788

19,80619,80619,80619,80620,28620,28620,28620,286 20,37820,37820,37820,378

12.6%12.6%12.6%12.6%

8.1%8.1%8.1%8.1%6.9%6.9%6.9%6.9%

14.4%14.4%14.4%14.4%

9.4%9.4%9.4%9.4%

4.0%4.0%4.0%4.0%

59.9%59.9%59.9%59.9%

14.3%14.3%14.3%14.3%

8.0%8.0%8.0%8.0%

7.8%7.8%7.8%7.8%7.4%7.4%7.4%7.4%

7.7%7.7%7.7%7.7%

56.8%56.8%56.8%56.8%

14.8%14.8%14.8%14.8%

8.0%8.0%8.0%8.0%

7.8%7.8%7.8%7.8%

10.9%10.9%10.9%10.9%

58.1%58.1%58.1%58.1%

15.8%15.8%15.8%15.8%

7.2%7.2%7.2%7.2%

7.4%7.4%7.4%7.4%

9.9%9.9%9.9%9.9%

57.2%57.2%57.2%57.2%

16.3%16.3%16.3%16.3%

8.4%8.4%8.4%8.4%

8.7%8.7%8.7%8.7%

8.8%8.8%8.8%8.8%

57.6%57.6%57.6%57.6%

17.3%17.3%17.3%17.3%

7.9%7.9%7.9%7.9%

9.1%9.1%9.1%9.1%

54.2%54.2%54.2%54.2%

18.8%18.8%18.8%18.8%

6.9%6.9%6.9%6.9%

9.7%9.7%9.7%9.7%

52.5%52.5%52.5%52.5%

19.4%19.4%19.4%19.4%

7.2%7.2%7.2%7.2%

9.9%9.9%9.9%9.9%

8.7%8.7%8.7%8.7%

120,49120,49120,49120,49

13,47213,47213,47213,472

15,13015,13015,13015,13016,03016,03016,03016,030

16,48016,48016,48016,480

2005200520052005 2006200620062006 2007200720072007 2008200820082008 2009200920092009 2010201020102010 2011201120112011 2012201220122012 3Q133Q133Q133Q13

68.0%68.0%68.0%68.0% 63.3%63.3%63.3%63.3% 59.9%59.9%59.9%59.9% 56.8%56.8%56.8%56.8%

AutoAutoAutoAutorelatedrelatedrelatedrelated 88.7%88.7%88.7%88.7% 87.1%87.1%87.1%87.1% 82.3%82.3%82.3%82.3% 79.5%79.5%79.5%79.5% 81.1%81.1%81.1%81.1% 81.9%81.9%81.9%81.9% 82.8%82.8%82.8%82.8% 79.9%79.9%79.9%79.9% 79.2%79.2%79.2%79.2%

Best in Class Risk Management

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

Category Actions taken Details

Asset slowdown• Limited funding during global

financial crisis

• Risk Control Committee (RCC)

– Decision making for most supreme risk– Review portfolio risk performance

21

Strategy Asset slowdown(Y2008)

financial crisis

• Reduce non-core businesses to focus on new car financing

New car Risk-basedpricing

• Lower pricing for customers with better credit profile

Used car Policy tightening(Y2010)

• Tightened underwriting policy preemptively

• Sacrificed market share due to focus on asset quality

– 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

P-loan Cross-sell• More weight on cross-selling

channels to new car customers

Mortgage Residual valueinsurance

• Reflecting volatile housing market conditions

• Only company insured in Korea

• 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

Historical Asset Quality

30+ Day Delinquency Rate (%)

Total 30+ delinquency rate New Car 30+ delinquency rate

22

3.5%

1.7% 1.6%

2.3%

1.8%1.6%

2.0%

2.5%2.7% 2.6%

1.5%1.2%

1.0%1.3%

0.7% 0.6%0.8%

1.0% 1.1% 1.1%

2005200520052005 2006200620062006 2007200720072007 2008200820082008 2009200920092009 2010201020102010 2011201120112011 2012201220122012 1H131H131H131H13 3Q133Q133Q133Q13

2008 2009 2010 2011 2012 9M12 9M13 YoY

Solid Profit Underscores Strong Fundamentals

Income Statement (KRW Bn)

KKKK----IFRSIFRSIFRSIFRSKKKK----GAAPGAAPGAAPGAAP

23

Operating Revenues 4,330 2,989 3,274 3,331 3,542 2,496 2,373 -4.9%

(excl. FX effect) 2,384 2,485 2,889 3,126 3,071 2,300 2,200 -4.4%

Operating Expenses 3,824 2,448 2,642 2,672 2,953 2,015 1,982 -1.6%

(excl. FX effect) 1,879 1,944 2,259 2,466 2,483 1,818 1,810 -0.5%

Interest expenses 674 679 890 956 895 682 599 -12.1%

Lease expenses 587 550 557 505 517 384 377 -1.7%

SG&A Expenses 498 496 586 603 637 442 481 8.7%

PPOP 600 717 778 1,014 966 742 702 -5.4%

Bad Debt expenses 95 176 145 354 377 261 311 19.1%

Operating Income 505 541 630 659 589 481 391 -18.7%

Income before Tax 518 538 639 663 584 480 477 -0.7%

Net Income 377 411 489 507 432 356 356 0.2%

ROA 2.4% 2.6% 2.8% 2.6% 2.2% 2.4% 2.3%

ROE 25.1% 21.3% 22.0% 20.3% 14.7% 15.3% 14.7%

195.4%164.0% 158.5% 151.6% 153.3%

Historical Reserve & FSS Requirement Coverage Ratio

Total Reserve VS Regulatory Requirement (KRW Bn)

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

24

521 611

714

265 280

381

151.6% 153.3%118.0% 117.1% 108.8% 109.1%

779

610665

240 222 241 279 288

401

521 469

364 382423

442 474

345 385 398

2009200920092009 2010201020102010 2011201120112011 201220122012201220082008200820082005200520052005 2006200620062006 2007200720072007

K-IFRS

3Q133Q133Q133Q13

K-GAAP

Historical Leverage Trend

Leverage Trend

Total Assets / Total Shareholders' Equity

25

16.0x

12.6x 9.7x 9.7x 9.3x

10.3x 7.4x8.3x

7.2x6.5x

2004200420042004 2005200520052005 2006200620062006 2007200720072007 2008200820082008 2009200920092009 2010201020102010 2011201120112011 2012201220122012 3Q133Q133Q133Q13

15.7%

14.5%

15.8%

Historical Capital Structure

Capital Adequacy Ratio (KRW Bn)

Adjusted Capital CAR

26

2,432 2,375 2,622

2,954 3,234

11.3%

12.7% 12.8%11.7% 11.5%

13.7%13.0%

14.5%

1,033 1,337 1,540 1,591

1,825 2,432 2,375 2,622

2004200420042004 2005200520052005 2006200620062006 2007200720072007 2008200820082008 2009200920092009 2010201020102010 2011201120112011 2012201220122012 3Q133Q133Q133Q13

IV. Funding & Liquidity

Diversification of Funding Portfolio Over Time

Managed Borrowings (KRW Bn)

27

• Maintain ABS under 20%, CP under 10%

• Diversify funding portfolio in terms of currency, region and product

• Maintain the average liability to asset maturity ratio above 100%

Funding Principles

13,213 13,213 13,213 13,213 12,597 12,597 12,597 12,597 12,568 12,568 12,568 12,568

13,412 13,412 13,412 13,412 14,335 14,335 14,335 14,335 14,378 14,378 14,378 14,378

16,560 16,560 16,560 16,560 17,330 17,330 17,330 17,330 17,338 17,338 17,338 17,338 17,194 17,194 17,194 17,194

Bond-domestic Bond-overseas ABS-domestic

ABS-overseas Bank loans CP

Total

Managed Borrowings (KRW Bn)

31.0%31.0%31.0%31.0%

17.7%17.7%17.7%17.7%

11.5%11.5%11.5%11.5%

14.2%14.2%14.2%14.2%

17.2%17.2%17.2%17.2%

18.3%18.3%18.3%18.3%

12.9%12.9%12.9%12.9%

13.3%13.3%13.3%13.3%

5.7%5.7%5.7%5.7%

11.9%11.9%11.9%11.9%

8.3%8.3%8.3%8.3%9.9%9.9%9.9%9.9%

16.9%16.9%16.9%16.9%

8.7%8.7%8.7%8.7%

10.4%10.4%10.4%10.4%

10.3%10.3%10.3%10.3%

10.6%10.6%10.6%10.6%

10.7%10.7%10.7%10.7%

8.7%8.7%8.7%8.7%

8.2%8.2%8.2%8.2%6.8%6.8%6.8%6.8%

6.7%6.7%6.7%6.7%

9.8%9.8%9.8%9.8%

7.4%7.4%7.4%7.4%

8.5%8.5%8.5%8.5%

5.9%5.9%5.9%5.9%

9.1%9.1%9.1%9.1%

8.7%8.7%8.7%8.7%

4.3%4.3%4.3%4.3%

3.9%3.9%3.9%3.9%

9.1%9.1%9.1%9.1%

9.4%9.4%9.4%9.4%3.4%3.4%3.4%3.4%

6.9%6.9%6.9%6.9% 9.1%9.1%9.1%9.1%

7.1%7.1%7.1%7.1%

31.0%31.0%31.0%31.0%

29.3%29.3%29.3%29.3%26.5%26.5%26.5%26.5%

25.7%25.7%25.7%25.7%29.1%29.1%29.1%29.1%

27.5%27.5%27.5%27.5%

6.2%6.2%6.2%6.2%

7.1%7.1%7.1%7.1%

8.8%8.8%8.8%8.8%2.4%2.4%2.4%2.4%

28.1%28.1%28.1%28.1%

2004200420042004 2005200520052005 2006200620062006 2007200720072007 2008200820082008 2009200920092009 2010201020102010 2011201120112011 2012201220122012 3Q133Q133Q133Q13

%%%% of LT of LT of LT of LT FundingFundingFundingFunding 39.1%39.1%39.1%39.1% 47.6%47.6%47.6%47.6% 57.5%57.5%57.5%57.5% 57.9%57.9%57.9%57.9% 59.0%59.0%59.0%59.0% 59.3%59.3%59.3%59.3% 63.5%63.5%63.5%63.5% 65.4%65.4%65.4%65.4% 70.1%70.1%70.1%70.1% 70.7%70.7%70.7%70.7%

36.9%36.9%36.9%36.9%

2.9%2.9%2.9%2.9%

34.0%34.0%34.0%34.0%38.4%38.4%38.4%38.4%

18.3%18.3%18.3%18.3%

26.3%26.3%26.3%26.3% 30.7%30.7%30.7%30.7%39.1%39.1%39.1%39.1%

41.9%41.9%41.9%41.9% 42.9%42.9%42.9%42.9%46.7%46.7%46.7%46.7%

14.1%14.1%14.1%14.1% 31.0%31.0%31.0%31.0%

47.5%47.5%47.5%47.5%

Funding by Currency & Outstanding Global Bonds

Funding Portfolio by Currency Outstanding Global Bonds*

Issue Date Maturity Amount

144A/Reg S

Nov.’09 5.5 years USD 500m

Jan.’11 5.5 years USD 700m

28

JPY 2.2%JPY 2.2%JPY 2.2%JPY 2.2%

AUD 3.5%AUD 3.5%AUD 3.5%AUD 3.5%CNYCNYCNYCNY

0.70.70.70.7%%%%

144A/Reg S ’ 5.5 years USD 700m

Mar.’12 5.5 years USD 500m

Samurai

Nov. ‘12 1.5 years JPY 20,000m

Nov. ‘12 2 years JPY 8,000m

Oct. ‘13 2 years JPY 25,000m

Swiss Franc

Jul. ’10 5 years CHF 150m

Oct. ’10 4 years CHF 200m

May ’11 2.5 years CHF 150m

May’11 5 years CHF 150m

Feb.’12 5 years CHF 200m

KRWKRWKRWKRW65.5%65.5%65.5%65.5%

USDUSDUSDUSD19.6%19.6%19.6%19.6%

CHF 5.9%CHF 5.9%CHF 5.9%CHF 5.9%

MYR 2.9%MYR 2.9%MYR 2.9%MYR 2.9%

Feb.’12 5 years CHF 200m

Malaysian Ringgit

May ’11 2.5 years MYR 650m

Feb.’12 5 years MYR 320m

May ’12 3 years MYR 370m

Australian Dollar Jun. ’12 3 years AUD 175m

Kangaroo May ’13 4 years AUD 250m

Dim Sum Sep. ‘12 1.5 years RMB 500m

(*As of Sep, 2013)

• Funding Balance: KRW 17,194 Bn

• Foreign Exchange Risk:

-100% of foreign currency exposure is hedged

through swap transactions entered into at the

time of bond issuance.

29

Liquidity Profile (Unit: KRW Bn)

Cash Short-term Debt Coverage Ratio*

Historical Liquidity Position

63.5%69.2% 66.3%

Credit Line

1,3671,338

2,5112,480

2,363

1,332 1,336

1,789

2,1062,365

3,8083,580

3,340

4.6%

16.0%

25.0% 23.7%30.4%

36.0% 39.1%

63.5% 66.3%

370 405 401 398707 739

1,0271,297 1,100 977

652931 938

1,0821,367

370

10571,332 1,336

2004200420042004 2005200520052005 2006200620062006 2007200720072007 2008200820082008 2009200920092009 2010201020102010 2011201120112011 2012201220122012 3Q133Q133Q133Q13

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

V. Others

30

Credit Ratings & Rationale

HCS’ Global Credit Ratings* Credit Rating Rationale

A+(S)AAA

•Strong Standalone Profile

– Sustainable track record of strong profit performance and robust credit fundamentals

Baa1(S) BBB+(S) BBB+(S)

Moody's S&P Fitch JCR RAM

HCS & Competitors’ Domestic Credit Ratings

performance and robust credit fundamentals

– Low risk-focused product portfolio and prudent risk management

– Adequate liquidity and sound capitalization

– Strong market position as HMC's key captive financing arm

•Capable & Willing Shareholder Support

- Solid backup line provided by GE Capital through

AA+

AA- - Solid backup line provided by GE Capital throughits capital and managerial support

- Strong likelihood of HMC’s assistance in

contingency given its strong relationship with the parent evident in its capital contribution, board members and business base.

AA-

A+ A+

A

Hyundai Capital

W Financial A Capital W Capital N Capital

(*As of Sep, 2013)

31

Performance of Hyundai Motor Company

Strength Performance

Product Mix61%

Total Sales (‘000s)

3,612 4,059 4,392 3,209 3,500

15% 18%5%

Compact Mid & Large RV Commercial

Market Diversification

13.9% 15.9%9.1%

21.8%

39.3%

Korea US Europe China Others

OP Margin

2010 2011 2012 3Q12 3Q13

8.8%10.4% 10.0% 10.7% 9.6%

2010 2011 2012 3Q12 3Q13Korea US Europe China Others

Brand Value

• Increase in residual value of vehicles due to strengthened brand awareness

• Boost in luxury car sales has increased the average selling price

Net Profit (KRW Bn)

2010 2011 2012 3Q12 3Q13

6,001 8,105

9,056 7,167 6,864

2010 2011 2012 3Q12 3Q13

Investor Relations Contacts

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

Suh ye Choi, Manager of Investor RelationsPhone +82 2 2167 7541sychoi@hyundaicard.com

Justin Lee, Manager of Investor RelationsPhone +82 2 2167 8082

Jay Moon, Assistant Manager of Investor RelationsPhone +82 2 2167 5312

http://ir.hyundaicapital.com/

Phone +82 2 2167 8082justin.j.lee@hyundaicard.com

Phone +82 2 2167 5312jaymoon@hyundaicapital.com

Hyunyoung Jang, Assistant Manager of Investor RelationsPhone +82 2 2167 6955hyunyoung.jang@hyundaicard.com