2014년 2분기 ir 자료 en

Hyundai Capital Services

IR Presentation (1H 2014)

Hyundai Capital Services

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

Certain information and statements made in this presentation contain “forward-looking statements.” Such forward-looking statements can be identified by the use of forward-looking terminology such as “anticipate,”“believe,”“considering,”“depends,”“estimate,”“expect,”“intend,”“plan,”“planning,”“planned,” “project,” “trend,” and similar expressions. All forward-looking statements are the Companies’ current expectation of future events and are subject to a number of factors that could cause actual results to differ materially from those described in the forward-looking statements. Caution should be taken with respect to such statements and you should not place undue reliance on any such forward-looking statements.

Certain industry and market data in this presentation was obtained from various trade associations, and the Companies have not verified such data Certain industry and market data in this presentation was obtained from various trade associations, and the Companies have not verified such data with independent sources. Accordingly, the Companies make no representations as to the accuracy or completeness of that data, and such data involves risks and uncertainties and is subject to change based on various factors.

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2012 2013 1H 13 1H 14 YoY

Op Revenues* 3,071 2,921 1,451 1,356 -6.8%

Income Statement Income Statement Income Statement Income Statement (KRW Bn)

Special Agenda I Special Agenda I Special Agenda I Special Agenda I –––– Decrease in ProfitabilityDecrease in ProfitabilityDecrease in ProfitabilityDecrease in Profitability

Key HighlightsKey HighlightsKey HighlightsKey Highlights

� Decrease in operating revenues

- Up-front fee revocation and elevated competition

Op Expenses * 2,477 2,487 1,204 1,204 -0.7%

Bad Debt Exp. 377 453 204 227 11.1%

Operating Income 595 435 248 143 -42.1%

Net Income 437 391 248 85 -65.7%

ROAROAROAROA

� Expense maintained at similar level

- Declined interest expenses from lower funding

rate offset by increase in bad debt expenses

� One time non-operating income

- ROA excluding appraised loss on equity holding

savings bank: 1.1%

* excl. FX effect

2.6%2.2% 1.9%

0.8%

2011 2012 2013 1H14

� Increased revenue from increased car sales and newly

changed models

� Intensive cost cutting efforts

� Reinforced finance programs to support car sales

Forecast and StrategyForecast and StrategyForecast and StrategyForecast and Strategy

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20121989 2015 2016 ~

USA UK,CHN CAN, GER BRA, AUS, RUS, IND

1993

KOR77.7%

71.1%83.8% 85.4% 85.1%

HMG Global Sales (1000) % overseas

Hyundai Capital Global One BodyHyundai Capital Global One BodyHyundai Capital Global One BodyHyundai Capital Global One Body Further Growth in the futureFurther Growth in the futureFurther Growth in the futureFurther Growth in the future

Special AgendaSpecial AgendaSpecial AgendaSpecial Agenda II II II II –––– Global ExpansionGlobal ExpansionGlobal ExpansionGlobal Expansion

� High auto finance centered/low risk potential from

rapid increase of global HMG sales

USKoreaChina

India

Russia

Germany

UK

Australia Brazil

Canada

3,821 3,846

7,100 7,548

3,802

71.1%

'06 '09 '12 '13 '14.1H

* Including HCA, HCUK, BHAF.

� 9 Countries 11 Branches, 3.800 Employees

� Supporting 34 Global OEM Branches with ave. 36%penetration

AdvisoryFinance Company

14.6 20.5 39.2 44.2 45.7

7.5% 19.5%48.2% 53.8% 55.6%

'06 '09 '12 '13 '14.1H

Global Financial Receivables (KRW Tn) % overseas

4

Source: Company data

� New Car: New Car: New Car: New Car: Decreased due to up-front fee

revocation and elevated competition

Others 2.8%

Asset PortfolioAsset PortfolioAsset PortfolioAsset Portfolio Key HighlightsKey HighlightsKey HighlightsKey Highlights

AssetAssetAssetAsset

� Lease: Lease: Lease: Lease: Decreased due to closing of imported car

lease business (since March, 2014)

� Personal Loan:Personal Loan:Personal Loan:Personal Loan: Decreased due to the reinforced

risk managementNew Car 51.2%

Lease 19.4%

Used Car 7.4%

P. Loan 10.3%

Mortgage 8.9%

� Maintain current portfolio proportion

� New car volume increase due to the new model

launches from HMC and KMC

* Auto: new car finance, auto lease, used car finance

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Forecast and StrategyForecast and StrategyForecast and StrategyForecast and Strategy• Total Receivables : 20.3 Tn

• Auto proportion: 78%

2.5%2.7% 2.8% 2.7%

Asset Quality and ReserveAsset Quality and ReserveAsset Quality and ReserveAsset Quality and Reserve

30+ Delinquency Ratio30+ Delinquency Ratio30+ Delinquency Ratio30+ Delinquency Ratio

Total Receivables Excluding purchased NPL � Stabilizing delinquency

- Risk management reinforced for new


2.0%

2.5%

2.3% 2.4% 2.6% 2.6%

2011 2012 2013 1Q14 2Q14

Reserve Reserve Reserve Reserve (KRW Bn)

bookings

- Overall enhancement from macro recovery

� Increased total reserve

- 30+ delinquency Coverage above 140%

2011 2012 2013 1H14

Total Reserve* 610 657 763 805

30+ delinquencyCoverage**

151% 143% 154% 145% � Maintain reinforced risk management

� Further enhancement from macro recovery* Reserve under IFRS + supplemental reserve** Total Reserve / 30 day+ delinquent asset

6


Capital Structure Capital Structure Capital Structure Capital Structure

Leverage Leverage Leverage Leverage (KRW Bn)

� Leverage maintained similar to 2013

- FSS regulation enforced since 2012 : under 10X

Total Asset / Total Equity*


Capital Adequacy RatioCapital Adequacy RatioCapital Adequacy RatioCapital Adequacy Ratio

(recommended guideline: under 8X)8.3X7.2X 6.6X 6.7X

2011 2012 2013 1H14* Since 2013, previous quarter’s equity have been used for calculation.** Separated Financial Statement

� Manage leverage within FSS recommended guideline

� Dividend in compliance with regulation

* FSS guideline: 7%** Separated Financial Statement

7

Forecast and StrategyForecast and StrategyForecast and StrategyForecast and Strategy13.0%

14.5%15.1%

15.7%

2011 2012 2013 2014

FundingFundingFundingFunding

Funding Portfolio by ProductFunding Portfolio by ProductFunding Portfolio by ProductFunding Portfolio by Product

� Strategic Funding based on the market condition

- Bond proportion increased to leverage spread Loans

ABS 13.5%


Funding Portfolio by CurrencyFunding Portfolio by CurrencyFunding Portfolio by CurrencyFunding Portfolio by Currency

tightening

� Diversification continued

- 144A/Reg S in March (500 Mn USD, 3yr. FRN)

• Total Balance: 17.5 Tn

• % Long Term : 69.5%

Domestic Bond 49.7%

Foreign Bond

27.0%

CP 1.1%

Loans 8.6%

13.5%

2.2%

1.5%

3.4%

4.7%

22.3%

65.9%

JPY

MYR

AUD

CHF

USD

KRW

8


� Product mix guidelines : ABS < 20%, CP < 10%

� % of Long-term debt guideline > 60%

63.5% 69.2% 73.7%65.5%

Liquidity Profile Liquidity Profile Liquidity Profile Liquidity Profile (KRW Bn)

Credit LineCash Short-term debt Coverage Ratio* � Reinforced liquidity guideline under new Stress

Test model


Liquidity PositionLiquidity PositionLiquidity PositionLiquidity Position

1,297 1,100 1,304 1,199

2,511 2,480 2,345 2,307

3,808 3,580 3,649 3,505

2011 2012 2013 1H14* Short-term debt Coverage Ratio

= (Cash + Unused credit line)/ short-term debt under 1 yr.

� Early warning detection by monitoring daily

market indicators

� ALM based Funding: Only 30.5% of total debt

maturing within 1 year

Debt Maturity Debt Maturity Debt Maturity Debt Maturity (KRW Bn)

� Debt maturity > Asset maturity : Maintain ALM

over 100%

� Maintain Short-term debt Coverage over 60%

2,434 2,921 2,204

3,768 3,666 2,556

13.9%13.9%13.9%13.9%16.6%16.6%16.6%16.6%

12.6%12.6%12.6%12.6%

21.5%21.5%21.5%21.5% 20.9%20.9%20.9%20.9%14.6%14.6%14.6%14.6%

2H14 1H15 2H15 2016 2017 2018~

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[Appendix] Fact Sheet [Appendix] Fact Sheet [Appendix] Fact Sheet [Appendix] Fact Sheet ---- HCSHCSHCSHCS

(KRW Bn, %) 2008 2009 2010 2011 2012 2013 1H13 1H14

Domestic Auto Market

Sum(1,000 unit) 1,216 1,455 1,556 1,580 1,542 1,540 752 807

HMC/KMC M/S 73.0% 76.7% 73.5% 74.5% 74.6% 71.4% 73.4% 70.0%

Asset Portfolio

Total 16,030 16,480 18,788 19,806 20,286 20,397 20,293 20,252

Auto 79.5% 81.1% 81.9% 82.8% 79.8% 78.3% 79.1% 78.0%Asset Portfolio Auto 79.5% 81.1% 81.9% 82.8% 79.8% 78.3% 79.1% 78.0%

Non-Auto 20.5% 18.9% 18.1% 17.2% 20.2% 21.7% 20.9% 22.0%

Asset Quality

Below Precautionary 2.6% 2.3% 2.5% 3.2% 3.9% 5.7%* 5.4%* 6.1%*

NPL 1.6% 1.7% 2.0% 2.5% 3.0%* 3.7%* 3.5%* 3.9%*

30+ delinquency 2.3% 1.8% 1.6% 2.0% 2.3%* 2.4%* 2.5%* 2.6%*

30+ delinquent Coverage 163.7% 152.7% 157.2% 151.3% 144.7% 138.5% 143.1% 144.5%

Profit Operating Income 505 541 630 659 595 435 247 143

Capital AdequacyCapital Adequacy Ratio 11.5% 15.7% 13.7% 13.0% 14.5% 15.1% 15.3% 15.7%

Asset Leverage 9.7X 7.4X 9.3X 8.3X 7.2X 6.6X 6.8X 6.7X

Total 14,335 14,378 16,560 17,330 17,338 17,755 17,049 17,548

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Funding Portfolio

Total 14,335 14,378 16,560 17,330 17,338 17,755 17,049 17,548

Bond /Loan 70.3% 73.9% 75.0% 80.6% 83.6% 84.6% 84.5% 85.4%

CP 10.6% 6.8% 8.5% 4.3% 3.4% 1.8% 2.8% 1.1%

ABS 19.1% 19.4% 16.5% 15.0% 13.0% 13.6% 12.7% 13.5%

Short-term Coverage 30.4% 36.0% 39.1% 63.5% 69.2% 73.7% 67.4% 65.5%

ALM

ALM Ratio 97.7% 120.4% 138.0% 163.7% 148.0% 142.0% 148.8% 138.4%

Asset maturity (Y) 1.56 1.48 1.36 1.30 1.36 1.43 1.40 1.45

Debt maturity (Y) 1.52 1.78 1.87 2.12 2.02 2.03 2.08 2.01

* excl. purchased NPL

ContactsContactsContactsContacts

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IR Homepage : http://ir.hyundaicapital.com

IR email address : [email protected]

2014년 2분기 ir 자료 en

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