Hyundai Motor Company Investor Presentation June 2012

Table of Contents I.

Key Strengths for HMC

II.

Strategy for Sustainable Performance

III.

Business Update

IV.

Appendix

I. Key strengths for HMC

Key Strengths for HMC Emerging as a Global Top-tier Company Well-Balanced Sales Portfolio

Product Innovation • Launch better power and fuel efficient vehicles through improved technology

• Well-balanced sales amongst developed & emerging markets

• Innovative design (Fluidic Sculpture) leading to higher customer interest

• Sustain robust sales growth

Sales

Product

Profitability

Cost Structure

Stable Profitability • Revenue and sales volume growth through development of products and enhanced quality • Enhanced profitability through structural improvement

Improvement in Cost Structure • Sustained improvement in cost structure through platform integration • Further cost structure enhancement through vertical integration

1

Well-Balanced Sales Portfolio Strong Sales Growth in Major Markets (Unit : 1,000 vehicles)

2011

2012

-7.2% +15.5% +10.5% +7.7% 129

227

210

149

Korea

204

EU 226

244

226

US

China

+10.3%

+26.9%

2011

2012

+22.2% 132

+3.8%

167

M. East & Africa

104

77

127

India

3,701 1,256

4,099 1,385

80

Latin America

Worldwide Jan ~ Apr ’12 Retail Sales Source : Company data (Retail sales excluding CKD sales)

2

Well-Balanced Sales Portfolio Market Diversification Well diversified sales by market to take global opportunities Hyundai

VW

Fiat Others 8.7%

Others 15.3%

Others 18.4%

Korea 16.7%

Germany 14.1%

Italy 27.5% Brazil 38.0%

Europe 30.9%

Asia-Pacific 31.5%

W. Europe 25.8%

N. Am 8.2%

N. Am. 18.9%

Toyota

Honda Others 6.4%

Asia 31.4% Europe 14.6%

Others 17.5%

Japan 28.2%

Asia 18.0% Europe 10.9%

N. Am. 25.4%

Japan 18.5% Asia 27.9%

Europe 5.0%

N. Am. 42.2%

Source: Company data for HMC 2011 Global Retail Sales, Competitor information from public filings (2011FY Earnings Results)

3

Well-Balanced Sales Portfolio Global Product Portfolio Well-aligned product mix to meet demand shift to fuel-efficient vehicles Hyundai

VW

Fiat

Others 6.2%

Others 7.5%

RV 12.8% D+E+F 19.4%

A+B+C 61.6%

RV 3.9%

Others 24.0% A+B+C 70.9%

D+E+F 1.2%

RV 18.9%

D+E+F 18.3%

A+B+C 55.3%

Toyota

Honda Others 1.5%

Others 13.2%

RV 31.1%

A+B+C 40.1%

D+E+F 15.6%

Source: Company Data for HMC 2011 Global Retail Sales / Global Insight forecast data(2011) for competitors * A+B+C=Compact+Sub-Compact+Mini; D+E+F=Mid-Size+Large+Luxury; RV=SUV+MPV, Others=PUP & others

RV 34.1%

A+B+C 45.9%

D+E+F 18.5%

4

Product Innovation Product Competitiveness : Elantra Elantra is experiencing high level of demand with better specification & higher residual value Specification Comparison in Compact Car Segment

Hyundai Elantra

Toyota Corolla

Honda Civic

Displacement

1.8L

1.8L

1.8L

Max. Power

148@6,500

132@6,000

140@6,300

Mileage

29mpg / 40mpg

26mpg / 34mpg

26mpg / 34mpg

US Sales Trend of Elantra

Residual Value Comparison

(Unit : 1,000 vehicles)

+40.9%

186

57%

132

2010

2011

Source: Company data / Company Websites / ALG annual residual value data for 2011 *Mileage : City / Highway

Elantra

55%

54%

Civic

Corolla

5

Product Innovation Product Competitiveness : Sonata YF Sonata gained US M/S in mid-size segment with improved specification & residual value

Specification Comparison in Midsize Sedan Segment

Hyundai Sonata

Toyota Camry

Honda Accord

Displacement

2.4L

2.5L

2.4L

Max. Power

198@6,300

178@6,000

190@7,000

Mileage

24mpg / 35mpg

25mpg / 35mpg

23mpg / 33mpg

Sonata M/S Trend (US Mid-size Sedan)

11.4%

Sonata Residual Value Trend

+16%pt

11.9%

7.3%

56%

5.7%

2008

2009

2010

2011

38%

40%

2005 MY

2008 MY

Source: Company data / Company Websites & Press Releases / Automotive Lease Guide *Mileage : City / Highway

2012 MY 6

Improvement in Cost Structure Platform Integration Platform integration will reduce development cost and realize greater economies of scale per platform Integration Schedule

Integrated Platforms

Reduction of Model Development Time

2002

2009

2011

2013 (P)

0

6

6

6

Avg. of 40 months → 24 months

40 33 24

Total # of Platforms

22

18

11

6

Total # of Models

28

32

36

40

2002

2010

Niche Market

Old 76.7%

Small

Mid-size

Large

Coupe

Frame SUV

2013 (P)

Increasing portion of models w/ integrated platform

# of Models per Type of Platform

Mass Production

2009

New 23.3%

2011

2012 (P) Old 26.3%

Old 37.9% New 62.1%

New 73.7%

LCV

Source: Company Data

7

Stable Profitability Consistent Improvement in Profitability HMC has shown the most consistent operating performance relative to competitors during the past few years. Consolidated Operating Margin Trend

2009

2010

2011

10.4% 8.8% 7.1%

6.9%

6.1%

6.2% 5.7%

5.6% 2.6%

2.1% 0.9%

5.2% 5.1% 2.9%

1.8%

1.6% 0.0%

(0.2)% (3.7)%

Source: Public Filings Note: Based on Consolidated Financials, Calendarized Financials for Japanese Firms * Hyundai Financials for FY2009 based on K-GAAP, FY2010-2011 based on K-IFRS

(3.0)%

(2.8)%

8

II. Strategy for Sustainable Performance

Sustainable Success Going Forward Key Strategy for Ongoing Growth in Earnings 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.

Structural Improvement

Volume Growth

Cost Structure Improvement

Future Strategy

Higher ASP and Lower Incentive Driven by Enhanced Product and Brand Value

Balanced Capacity Expansion & New Model Launch

Higher Cost Competitiveness from Vertical Integration

Develop Independent and Distinctive Technology

9

Structural Improvement Structural Improvement in US Market 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 Enhanced Brand Value

Reduction in Incentives

Sales Growth

US Market

ASP Increase

Sales

Market Share

Incentive

ASP

(‘000)

(%)

(PNVS, $)

(Sonata, $)

(%)

(%pt)

(%)

(%)

2008

401

-14.0

3.0

0.1

2,194

20.7

18,266

3.9

2009

435

8.3

4.2

1.2

2,506

14.2

18,019

-1.4

2010

538

23.7

4.6

0.6

1,649

-34.1

21,821

21.1

2011

646

20.0

5.1

0.5

1,005

-39.1

23,148

6.0

Source : Auto data / PIN Data, ASP based on actual transaction prices

10

Structural Improvement Brand Enhancement Enhancement in Brand Value (Unit : U$ million)

US Customer Retention Rate 61

(Ranks)

1

65

(Ranks)

3

69 72 +19.3%

6,005 +9.3%

4,846

2008

+4%p

11

64%

13 +13%p

5,033

60%

4,604

2009

2010

2011

▶ Reported the highest growth rate among automakers for two consecutive years

47%

47%

2008

2009

2010

2011

▶ In US market, Hyundai achieved the highest retention rate among competitors in 2011

Source: Interbrand, JD Power

11

Structural Improvement Brand Enhancement Improvement in product competitiveness and quality has resulted HMC to earn key awards and praises from major Media. Key Awards

Recognition from Major Media & Agencies Hyundai, ranked # 3 in ALG’s 2012 Residual Value Awards Elantra, won ALG’s compact car segment for the highest residual value

Genesis, 2009 North American Car of the Year

Elantra, 2012 North American Car of the Year

2011 JDP Customer Service Index Ranked #6 on the study : Hyundai ranked highest ever and ranked higher than Toyota / Honda / Ford

Tau Engine, Ward’s 10 Best Engines in 3 consecutive years (2009 ~ 2011)

1.6 Gamma Engine, Ward’s 10 Best Engines in 2012

Hyundai ranked #1 on Auto Bild’s Quality Report in 2 consecutive years (2010 ~ 2011)

Source: Automotive News, News Media

12

Structural Improvement Utilization & Inventory Trend High global utilization and low inventory level enables the company to promote value pricing strategy HMC Global Utilization Trend

HMC Global / US Inventory Trend

(Unit : %)

(Unit : Month of Supply)

109.1

4

107.4 100.6 3

94.4 89.9

91.5

2

1

2007

2008

2009

2010

2011

2012 1~4

'10 Apr

Jul

Oct

'11 Jan

Apr

Overseas Inventory

Jul

Oct

'12 Jan

Apr

US Inventory

Source: Company data / US Autodata

13

Structural Improvement Incentives & ASP Trend With value pricing strategy, ASP is keep improving while incentive spending is decreasing Average Selling Price (ASP) by Export Market

US Incentive Trend (Unit : USD) 2,600

(Unit : USD 1,000)

2,427

18

16

2,253

Export ASP CAGR : +6.0%

2,200

U$ 15,000 1,800

14

1,680 12

1,400 10

1,000

872

8

846

865 6

600 2002

2005

2008

L. America

M. East & Africa

Asia Pacific

Total Export

2011

Source: Company Data, US Autodata, ASP is based on HMC headquarter results

2006

2008

Hyundai

2010

Toyota

2012 Jan~Apr

Honda

14

Structural Improvement Transaction Price Trend in US Market Transaction price of major models in US market has improved with structural improvement Compact Sedan

Mid-size Sedan

Compact CUV

(Unit : USD 1,000)

29.3

19.6 18.6

19.3

21.6

23.1

28.1

22.8 22.8

26.5 25.9

21.1 17.8 23.1

15.8

21.6

17.6

15.5

2007 Elantra

2009 Corolla

2011 Civic

2007 Sonata

2009 Camry

2011 Accord

2007 Santa Fe

2009 RAV4

2011 Equinox

Source: PIN data (Annual average transaction price in US market)

15

Volume Growth Capacity Expansion & Sales Plan HMC’s global sales will be increased with capacity expansion & maintaining high utilization rate Production Capacity Expansion

Sales Plan by Plants

(Unit : 1,000 vehicles)

2010

2011

2012 (P)

2011

2012 (P)

Chg (%)

Korea

1,820

1,820

1,870

1,884

1,945

+3.2

US

300

300

300

339

325

-4.0

China

600

600

900

740

790

+6.8

India

600

600

600

616

630

+2.3

Turkey

100

100

100

91

87

-4.7

Czech

200

300

300

251

303

+20.5

Russia

-

150

200

138

200

+44.9

Brazil

-

-

150

-

10

-

Overseas

1,800

2,050

2,550

2,175

2,345

+7.8

Total

3,620

3,870

4,420

4,059

4,290

+5.7

Source: Company data *Above sales figures are based on shipment

16

Cost Structure Improvement Vertical Integration Increasing portion of procurement through vertical integration enhances cost competitiveness

Auto

Parts & Equipment Logistics, Marketing, IT

Credit & Financing

Raw material

17

Future Strategy Developing Green Cars : HEV System HMC independently developed and obtained distinctive technology on HEV system

Specification

Hyundai Sonata HEV

Toyota Camry HEV

Nissan Altima HEV

System Power

206 hp

200 hp

198 hp

Battery

Li-PB 34kW

Ni-MH 33kW

Ni-MH 30kW

Mileage

36mpg / 40mpg

43mpg / 39mpg

35mpg / 33mpg

Motor

30kW (40.2hp)

105kW (141hp)

105kW (141hp)

System

Parallel System

Power Split System

Strength

Wheel

Structure

Engine

TM

HSG

Battery

Battery

S

FD

Engine

Clutch

Wheel

Gen

C

FD

R

Wheel

Motor Wheel

Engine

Gen Engine

 Small starting Motor  0 to 100 → 9.2sec  Better performance under mid and high speed

Power Split System

Battery

Motor

Power Flow

Parallel System

Battery

Motor

Motor

 Better performance under low speed condition

Source :Company data / Company websites

18

Future Strategy Developing Green Cars : FCEV In 2011, HMC has been chosen to participate in European FCEV demonstration program with Daimler Fuel Cell Electric Vehicle

Participation in FCEV Demonstration Program

Tucson ix FCEV    

Max. distance : 650 km Max. speed : 160 km/h Fuel Efficiency : 31km/L Commercial production : TBD

Development Roadmap Phase 2 (’07~’11)

Phase 3 (’12~)

- Develop Stack Technology

- Improve Performance

- Commence Small Production

 Tucson FCEV (2nd Gen.)  Mohave FCEV  Fuel Cell Electric Bus (2nd Gen.)

Korea

Europe

Period

2004 ~ 2009

2006 ~

2011 ~

Model

Tucson

Tucson, Bus

Tucson

Assessment of Light-Duty FCEV Manufacturers

Phase 1 (~’06)

 Santa Fe FCEV  Tucson FCEV  Fuel Cell Electric Bus

US

69.9

66.7

66.1

Score

65.1 54.4 43.9

 Tucson ix FCEV

Daimler Honda Toyota

HMC

GM

Nissan

36.8

Ford

Source :Company data, Pike Research (2011. Aug 10)

19

III. Business update

Korea Sustaining Strong Market Presence Sales & M/S Trend (Retail Sales)

Market Strategy

(Unit : 1,000 vehicles)

1,464

New Model Launch

1,474 450

1,392

 Santa Fe : Enhance sales volume & Model mix with new mid-size SUV model 50.5% 45.0%

46.4%

46.8%

 i30 (’11 Oct) / Avante 2 door : Targeting niche market with launching derivative models

Industry

701

M/S

658

682

177

185

Enhanced Customer Satisfaction

155 114 94

55 276

226

Blue Honors

210

77 250

■

Premium

Home to Home ■

21

membership

delivered back

81

service

service ■

156 2009

Small PC

161 2010

170

53

2011

Med + Large PC

Pick up &

■

Customers who

Luxury brand

need repair the

customers

car

365 Test drive ■

Delivered test car

■

Customers who

want test drive

2012 Jan~Apr

RV

CV

Source : KAMA, Company data

20

United States Qualitative Growth with Structural Improvement Sales & M/S Trend (Retail Sales)

Market Strategy

(Unit : 1,000 vehicles)

10,432

4.2%

11,590

New Model Launch

12,778

4,652

 Azera / Santa Fe 5.1%

4.6%

4.9%

Dealer Enhancement Plan Industry

M/S 797

646 538 435

628

131

226

125

229

90

146

180

251

184

787

98

52%

2006

55%

2007

# of Dealers 2009

2010

Small PC

2011

Med + Large PC

796

790

800

810

66%

70%

2010

2011

38

264

109

755

2012 Jan~Apr

RV

61%

2008

62%

2009

Sales Per Dealer

Exclusivity

 Increase dealer exclusivity and improve profitability of dealers

Source : Automotive News, Company data

21

China Further Growth Opportunity with New Capacity Sales & M/S Trend (Retail Sales)

Market Strategy

(Unit : 1,000 vehicles)

New Model Launch

11,935

11,120 8,276 6.9%

4,116

 Elantra / Santa Fe : Improve customer profile & brand perception with launch of higher-end models segments

6.3%

6.2%

Industry

in each

6.1%

M/S

Dealer Enhancement Plan 703 570

120

49 37

65

740 720 154

600

252

113

500 418

42 44

484

519

472 167

2008

2009

2010

2011

# of Dealers 2009

2010

Small PC

2011

Mid-size PC

2012 Jan~Apr

SUV

 Focus on improving customer services &

brand

image

Source : Company data, CPCA

22

Europe Growth with Full Line-up of European Style Models Sales & M/S Trend (Retail Sales)

Market Strategy

(Unit : 1,000 vehicles)

14,499

New Model Launch 13,768

13,574 4,488

2.4%

2.9%

2.6% Industry

 i30 / Santa Fe Specification of new i30

3.4%

• Engine : U2 1.6 VGT

M/S

• Power : 128ps/4,000rpm • Mileage : 22.2km/ℓ (M/T) • CO2 Emission : 119g/km

403 337 9 43 104

362

20

8 80

140

Expand Direct Distribution Coverage 149 13

117

102

2009

A+B seg

157

142

2010

C seg

2011

RV

2012(P) Direct 43%

52 35

181

2011

49 2012 Jan~Apr

D seg & Others

Source : Company data, ACEA *Industry demand & Market shares are based on ACEA passenger car data

Indirect 57%

Indirect Direct 33% 67%

 Direct distribution coverage - As of 2011 : UK / Spain / Italy / Norway / Czech / Slovakia / Poland - Newly established in 2012 : Germany / France 23

India Global Production Hub for Small Cars Sales & M/S Trend (Retail Sales)

Market Strategy

(Unit : 1,000 vehicles)

New Model Launch 2,309

2,430

1,747 16.6%

1,010 15.4% Industry

15.4%

14.3%

M/S

604

616

247

242

 Sonata / Elantra  Eon (’11. Oct) - Entrance to the Indian compact low market - Compete with Maruti Alto Specification Comparison

560 216

270 71

290

2009

357

2010

Domestic

373 145

2011

2012 Jan~Apr

Hyundai Eon

Maruti Alto

Displacement

800cc

800cc

Max. Power

56ps / 5,500rpm

47ps / 6,200rpm

Mileage

21.1km/ℓ

19.7km/ℓ

MSRP

U$ 5,500 ~ 7,800

U$ 5,100 ~ 6,100

Export

Source :SIAM, Company data

24

Other Emerging Markets Africa-Middle East & Latin America Achieving consistent sales volume growth through the years Sales Volume (’000s) and CAGR (%)

Sales Breakdown by Major Emerging Markets

Asia-Pacific 3.9%

Africa-ME +6.8% 419

Turkey 1.2%

Latin America 6.3%

185

208

2005

2006

253

292

316

2008

2009

448

118

AfricaMiddle East 10.9%

Korea 16.7%

2004

2007

2010

2011

Latin America +9.2%

N. Am. 18.9% Chindia 27.5%

Europe 14.6%

237

82

2004

Source: Company Data, ’11 HMC Global Retail Sales (excludes CKD sales)

115

128

2005

2006

165

177

185

2007

2008

2009

2010

258

2011

25

IV. Appendix

Balance Sheet (K-IFRS Consolidated) 2011

2012 1Q

Change

109,480

114,042

4,562

48,926

51,965

3,039

15,415

17,180

1,765

Liabilities

69,152

71,605

2,453

Current Liabilities

33,164

35,189

2,025

43,339

44,299

960

6,647

6,775

128

Equity

40,328

42,437

2,109

Current Ratio(%)

147.5%

147.7%

Debt/Equity (%)

107.5%

104.4%

Net Debt

27,924

27,119

(KRW bn) Assets Current Assets Cash & Cash Equivalents*

Short & Long-Term Debt Provision

Source: Company filings (K-IFRS Consolidated) * Cash & Cash Equivalents = Cash + Short-term Financial Instruments

△805

26

Income Statement (K-IFRS Consolidated) 2011 1Q

2012 1Q

Growth

18,233

20,165

10.6%

4,157

4,639

11.6%

22.8%

23.0%

2,434

2,548

13.4%

12.6%

105

192

82.8%

1,827

2,283

24.9%

10.0%

11.3%

2,465

3,148

13.5%

15.6%

1,877

2,451

10.3%

12.2%

Depreciation

385

409

Amortization

154

207

2,367

2,899

(KRW bn) Revenue

Gross Profit Margin (%) SG&A Portion (%) Other Operating Income Operating Profit Margin (%) Recurring Profit Margin (%) Net Income Margin (%)

EBITDA* Source: Company filings (K-IFRS Consolidated) * EBITDA = Operating Profit + Depreciation + Amortization

4.7%

27.7%

30.6%

27

Financial Summary by Division (KRW bn) Sales Revenue Automotive Finance Other Operating Profit Automotive Finance Other Consolidation

2011 1Q

2012 1Q

Growth

18,233

20,165

10.6%

15,541

17,249

11.0%

1,873

2,082

11.2%

819

834

1.8%

1,827

2,283

24.9%

1,506

2,136

41.8%

325

370

13.6%

27

55

101.8%

△31

△278

adjustment

Source: Company filings (K-IFRS Consolidated)

28