HM HMC In Investor stor Present sentati ation on Hyundai Motor - PowerPoint PPT Presentation

HM HMC In Investor stor Present sentati ation on Hyundai Motor Company August 2020

Retaining Core Strength Key Highlights P. 1 Mix Improvement & ASP Growth New Model Big Cycle P. 2 Global Sales and Market Share P. 3 Geographic Sales Mix P. 4 Product Mix & ASP trend P. 5 Future Growth Strategy BEV Strategy P. 6 FCEV Strategy P. 8 Introducing “Motional” P. 11

Key Highlights Earnings gs Improve roveme ment nt led by Strong Mode del l Cycle + + 8 8 % Target OPM of Automotive Division in 2025 * Hyundai, Genesis, Kia combined ex. Kia - 26 models / 920K units 1

New Model Big Cycle 2019 2020 2021~ 2

Global Sales and Market Share Global sales and market share trend (Thousand units) 5.7% 5.7% 5.7% 5.6% Turning around 5.6% 5.5% 5.3% 5.3% 5.1% 4.9% 4.9% Hyundai M/S 4,920 4,835 4,844 4,621 4,537 4,495 4,476 4,392 4,099 3,701 1,630 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 2020 · Source : IHS, Company data Market share by region 2018 2019 H1 2020 4.3% 4.2% 41.6% 41.5% 17.3% 16.8% 3.9% 3.0% 3.0% 3.4% 39.7% 2.8% 3.1% 16.3% 2.4% Korea India United States Europe China 1 st model launch of 3 rd gen . platform by regions Q4 19 Sonata H2 20 Tucson H2 20 Sonata, Elantra Q1 19 Sonata 3

Geographical Sales Mix Sales by Region Competitive mix in Developed Market 2018 2019 H1 2020 Korea N.America China E.Europe, Russia W.Europe India AMEA S. America Others High h - ASP model * (%) SUV (%) EV (%) 62.8% 13.7% 41.0% 15.3% 15.7% 9.9% 16.7% 51.9% 45.2% 24.2% 24.5% 28.6% 5.7% 2.5% 18.0% 18.5% 17.9% 19.0% Korea United States Europe 22.3% * Genesis + Grandeur + Palisade 10.1% 11.9% 11.8% Strong M/S in Emerging Market 12.4% India 11.1% 17.3% 17.3% 16.8% 17.0% 8% 24.5% 17.5% 18.1% 14.9% 16.4% 16.3% 16.2% 15.4% 15.4% 15.4% 14.7% 11.4% 5.2% 5.4% 5.3% 4.4% 10.2% 10.1% 1% 6.6% 10.2% 7.2% 5.7% 10.1% 9.9% 9.9% 6.9% 7.5% Russia 6.4% 7.2% 12.0% 11.5% 6.5% 11.7% 6.2% 5.9% 8.6% 10.4% 8.2% 7.9% 9% 8.6% 7.7% 7.4% 4.6% 7.1% 5.8% 8.1% 7.9% 7.8% 5.3% 6.7% Brazil 5.2% 3.1% 5.1% 5.2% 4.6% 4.7% 5.0% 2.6% 2.2% 2016 2017 2018 2019 H1 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 2020 · Production : HMMR (2010), HMB (2012) 4 (Company Data, Wholesale)

Product Mix & ASP Trend Others Korean ASP (Unit : KRW mn) 5.5% 6.0% 7.1% 8.4% A Overseas ASP (Unit : $ ‘000) 7.9% B 2.7% 6.6% 9.2% 4.8% C 7.7% 8.5% 9.0% D 15.5 5 Genesis 15.2 2 25.7% SUV 22.9% 27.6% 33.4 4 28.7% 14.4 4 12.2% 2% 11.0% 0% 8.0% 1.3% 13.9 9 31.3 3 5.4% 13.8 8 2.0% 9.7% 1.6% 58.4 .4 % 29.2 2 43.4% 4% 40.5% 5% 40.8% 8% 「 Genesis 35.8% 8% + D-Seg + SUV 」 28.0 0 27.7 7 2017 2017 2018 2018 2019 2019 Q1 2020 2020.1Q Q2 2020 2020.2Q 2018 2019 Q1 2020 Q2 2020 · GV80 is included in Genesis 5

BEV Strategy Strengthening Technological Edge HMC BEV Line-up 「 」 & [ EV-dedicat cated ed Platfo form rm ] 2016 2018 2019 2020 ~ 2022 Product t Enhance nceme ment nt A A-CUV E-GMP Cost Efficiency ency B [ Ultra Fast st Char arging ng ] B-SUV Kona EV EV 800V Syste tem m IONIQ 6 IONIQ 5 voltage C Ioniq EV EV La Festa EV Midsize CUV CUV C-Sedan Similar to fueling ng experi rience nce D [ Busi siness ess Expans ansion on ] D-Sedan D-SUV E Seg E “launching variou ous s types es of B&C Seg Seg A A Seg MPV E new EVs ” New busine ness model E-Seda dan Charging Battery Infrastructure Related Biz LCV MPV EV EV Porter EV EV · Launch schedule is subject to change 1) E-GMP : Electric Global Modular Platform 6

Strong Market Position in EV Enhancing Market Position in EV Market 3 th th HMC M/S Ex-China HEV EV PHEV FCEV (Rank) 5.2% (5 th ) 4.5% (5 th ) 2.8% 110K 0K 2.2% (11 th ) (16 th ) 1.2% 0.0% 0.0% (17 th ) (-) (-) CAGR 1,350 32% Global 1,189 Demand (Thousand) 560K 560K 722 8K 8K 589 5K 5K 440 110K 0K 70K 70K 313 177 2019 2020(E) 2025(E) 2014 2015 2016 2017 2018 2019 H1 2020 * Source : IHS Markit June 2020 7

FCEV Strategy FCEV Vision 2030 7.6 HMG Cumulative Investment (in KRW tri.) FCEV Production Capacity (Thousand units) To deliver r 1,600 FCEV trucks ucks by 2025 (JV) 500 500 2.9 Member r and Co-Chai air Co Co-dev evel elop F.C 1.5 Powertrai rtrain (MOU) 0.3 FCEV Vision on 2030 130 40 11 2020 2022 2025 2030 Cross ss-lice cense se Research arch partn tnersh ership agreem emen ent FCEV 1.0 .0 FCEV 2.0 .0 (2023~) FCEV 3.0 .0 (2030~) Establishi hing ng Competi titi tive ve pricing Expanding ng line up & busine ness found ndati tion & syste tem downsizing ng value chain 8

FCEV Strategy (continued) Busin siness ss Struc ucture ure in Switz tzerla rland nd to bring ing 1,600 HD FCEV V truck uck in opera eratio ion by 2025 First rst 50 units will be deliver ered ed this s year ear from m September mber 2020 (Fi First rst global bal commerc mercial aliza zation) n) Upfit H2 Mobility ity Switz itzerlan erland d Associati iation on Pay-Per-Use se Truck sales es Cust stomer omer Model l (Maas) Equity ty Share are Hydrogen en Suppl ply Green en Hy Hydrogen en Productio uction Gas Stati tion on / HR HRS 9

FCEV Strategy (continued) European market entry strategy Business s Expansion Spain based on Country ry specific differe rences Austria Italy ✓ Governmental goals France ✓ Direct or indirect subsidies Netherlands Energy prices and surplus energy ✓ Hydrogen price ✓ Germany ✓ Private or public initiatives ✓ Status of infrastructure Norway Switze tzerl rlan and ✓ City bans for diesel truck/bus next target countries are under review Strate ategic c footho othold Stag tage 1 Stag tage 2 · Potential market size of FCEV trucks 10

Introducing “Motional” Introducing “Motional”, an autonomous driving joint venture between HMG and Aptiv ∙ Estab ablish shed ed : March 2020 ∙ Share re Struct cture e : Hyundai Motor Group, Aptiv (50:50 Joint Venture) (HMC 26%, Kia 14%, Mobis 10%) ∙ Headquarter arter : Boston ∙ Track ck record rd - First fully-autonomous Cross-country drive in U.S. (‘15) - The launch of the world’s first robo taxi pilot (Singapore ‘16) - Operation of the world’s most -established public robo taxi fleet (Las Vegas; ‘18 ~ present) - The fleet has provided over 100,000 rides, with 98% of riders rating their experience five-out-of-five stars Busi siness ess : Develop and sale of autonomous driving solutions • Business Plan ~’20 ~‘22 Developing & Provide driverless system Begin n testi ting ng commercializing Commerci cial alize its driver verless to Robo Taxi provider Fully drive verless system SAE Level 4 Vehicles syste tems ms & techno nolog ogy 11

Recent Updates Global Retail Sales P. 13 COVID-19 Impact P. 14 Market Updates United States P. 15 Korea P. 16 China P. 17 W. Europe P. 18 India P. 19 Russia / Brazil P. 20

2020 Global Sales (Retail Sales) (Thousand units) H1 2019 H1 2020 Europe 2 China United States Korea -38.7% -32.5% +0.1% -18.4% 350 267 113 235 384 385 343 280 163 Brazil -38.3% 97 60 HMC Global Sales 3 -25.6% -24.1% India Russia Others 1 -26.9% -43.3% -27.6% 2,210 1,644 1,857 1,406 430 250 142 89 65 315 Sales Sales (ex. China) 1 MEA, Asia-Pacific, Other regions, Commercial vehicles(ex. Korea CV) 2 Western Europe excluding CV 3 Retail sales including CV and overseas CKD (’19 : 21,446 units, ’20 : 20,053 units) 13

COVID-19 Impact Sales to recover from resumed production and demand rebounds (Thousand units) Jan Feb Mar Apr May Sharp arp recove overy y 350 in Globa bal sales Korea ea (Average age of 4 days in mid Feb.) 300 250 China th plant based. Jan 20~ ~ Feb 19 (5 th d.) 200 India 3/23 23 ~ 5/3 Sales decl cline ne from m COVID ID-19 impact ct 150 US US 3/18 18 ~ 5/3 100 Czech ch 3/23 23 ~ 4/13 13 50 Turkey key 3/27 27 ~ 4/19 19 0 Jan Feb Mar Apr May Jun Russ ssia 3/28 28 ~ 4/12 12 Domestic Overseas Global Brazi zil 3/20 20 ~ 5/26 26 14

Korea Market Genesis Sales Increase Industry Demand 2019 2020 (Thousand units) (Thousand units) Volume % of sales 16.2% 10.4% 7.9% 41.8% 9.8% -14.5% -17.6% 206 YoY 174 169 168 157 156 36.5 154 145 137 121 117 8.6% 8.3% 100 7.8% 7.5% 6.3% 15.7 16.5 Jan Feb Mar Apr May Jun 12.3 12.2 12.4 Hyundai Sales (Thousand units) M/S Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 40.7% 39.4% 41.6% 42.3% 41.8% 40.6% 2020 -21.3% -26.4% 3.0% -0.5% 4.5% 37.2% YoY Strong New Vehicle Cycle to continue 84 72 71 71 70 71 90.00 68 61 60 80.00 53 70.00 48 2018 ~ 19 2020 2020 39 60.00 50.00 40.00 30.00 Jan Feb Mar Apr May Jun Sedan an Sales by Model Sonata Grandeur F/L New Elantra (Thousand units) 384 (H1 2019) 8.4% 12.3% 13.9% 8.4% 5.2% 11.5% 8.2% 32.1% Genesi esis Genesis SUV Genesis SUV New Genesis GV80 GV70 G80 385 (H1 2020) 9.8% 9.9% 20.2% 12.7% 3% 6.8% 8.1% 29.2% SUV Avante Sonata Grendeur Genesis Tucson Santa Fe Palisade Others (Sedan-C) (Sedan-D) (Luxury sedan (SUV-C) (SUV-D) (SUV-E) Palisade Venue New Tucson Santa Fe F/L +GV80) 15