#1HMC Investor Presentation Hyundai Motor Company November 2020#2Retaining 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#3Key Highlights Earnings Improvement led by Strong Model Cycle Expanding SUV Line-up Full line-up from A to E seg. Genesis Line-up Completion New Genesis SUVs (GV80, GV70) 3rd Generation Platform From 2019 Global Mix Improvement Strong sales of high-end models Continued ASP Growth Record-high domestic ASP Higher profitability of I.C.E. Standardization & Commonization ☑D HYUNDAI 8%% Aggressive XEV Launches 44 models* by 2025 New EV-dedicated Platform From 2021 *Hyundai, Genesis, Kia combined ex, Kia 26 models/920K units Global Top XEV Brand Targeting 1.67M* units by 2025 Improved Margins of XEV Reaching margins of I.C.E. by 2025 Target OPM of Automotive Division in 2025 1 HYUNDAI#4New Model Big Cycle SUV 2019 2020 2021- PALISADE VENUE CRETA SANTA FE F/L TUCSON NEW MPV NEW CUV NEW SUV * 2018 in KOREA SEDAN SONATA GRANDEUR F/L ELANTRA i20 MISTRA ACCENT GRANDEUR GENESIS ECO- FRIENDLY AD GV70 GV80 G90 G90 F/L G80 G70 F/L SEDAN EV CUV EV (Derivative) SUV EV (Derivative) KONA PORTER (HEV) (LCV EV) 2 TUCSON (HEV) CUV/SUV-EV SEDAN -EV NEXO HYUNDAI#5Global Sales and Market Share Global sales and market share trend (Thousand units) 5.7% 5.7% 5.7% 5.6% 5.6% 5.5% Turning around 5.3% Strong model cycle 5.1% 5.2% 4.9% Hyundai M/S 4.9% 4,392 4,621 4,835 4,844 4,920 4,537 4,495 4,476 4,099 3,701 2010 2011 . Source: IHS, Company data 2,645 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q3 YTD Market share by region 2018 2019 2020 3Q YTD 41.6% 42,8% 39.7% 16.3% 17.3% 17.6% 3.9% 4.2% 4.4% 3.0% 3.0% 3.0% 3.4% 3.1% 2.3% Korea India 1st model launch of 3rd gen. platform by regions Q1 19 Sonata United States Europe China Q4 19 Sonata H2 20 Tucson H2 20 Sonata, Elantra 3 HYUNDAI#6Geographical Sales Mix Sales by Region Competitive mix in Developed Market 2018 2019 2020 Q3 YTD Korea N.America W.Europe China E.Europe, Russia AMEA India ■S. America Others High - ASP model* (%) SUV (%) EV (%) 13.7% 63.1% 15.3% 15.7% 16.7% 40.7% 51,9% 22.6% 45.2% 28.6% 24,5% 18.0% 18.5% 17.9% 19.0% Korea United States 21.3% * Genesis + Grandeur + Palisade 10.1% 11.8% 11.9% 12.4% Strong M/S in Emerging Market 9.5% 5.7% 2.5% Europe 11.8% India 24.5% 18.1% 17.5% 17.3% 14.9% 17.0% 17.3% 17.6% 16.2% 16.4% 16.3% 15.4% 15.4% 15.4% 14.7% 11.6% 5.3% 5.2% 5.4% 4.4% 6.0% 6.9% 6.6% 7.2% 10.1% 10.2% 9.9% 9.9% 10.2% 10.5% 7.5% 5.6% Russia 7.2% 11.7% 12.0% 11.5% 6.5% 6.2% 5.9% 8.6% 10.4% 10.5% 8.2% 4.6% 7.7% 7.4% 7.9% 7.1% 5.8% 6.7% 7.8% 8.1% 7.9% Brazil 5.3% 5.7% 3.1% 4.6% 4.7% 5.1% 5.2% 2.6% 4.9% 2.2% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q3 2016 2017 2018 2019 2020 Q3 YTD YTD (Company Data, Wholesale) 4 Production: HMMR (2010), HMB (2012) HYUNDAI#7Product Mix & ASP Trend Sales mix by segment (Wholesale) Increasing Average Selling Price Others Korean ASP (Unit: KRW mn) 6.0% 5.5% 7.1% 6.6% 8.4% A Overseas ASP (Unit: $ '000) 7.9% 9.2% 6.6% 2.7% 6.1% B 4.8% 8.5% 7.7% 8.2% 9.0% ■Genesis 25.7% ■SUV 22.9% 21.4% 27.6% 28.7% 12.2% 9.0% 11,0% 8.0% 3.2% 1,3% 9.7% 2.0% 5.4% 1.6% 57.7% 13.9 13.8 28 45.5% 43.4% 27.7 40.5% 40.8% r Genesis 35.8% + D-Seg + SUV 2018 2019 Q1 2020 Q2 2020 Q3 2020 GV80 is included in Genesis 5 15.2 14.4 31.3 29.2 15.5 15.4 33.4 33.3 2017 2018 2019 Q1 2020 Q2 2020 Q3 2020 HYUNDAI#8BEV Strategy Strengthening Technological Edge [ EV-dedicated Platform ] Product Enhancement A HMC BEV Line-up г IONIQ & GENESIS 2016 2018 2019 2020-2022 A-CUV E-GMP [Ultra Fast Charging ] Cost Efficiency B Kona EV 800V System voltage IONIQ 5 B-SUV IONIQ 6 C Ioniq EV La Festa EV Midsize CUV CUV C-Sedan Ultra Fast Charging 20 min. (up to 80%) Similar to fueling experience D [Business Expansion] D-Sedan D-SUV A Seg B&C Seg E Seg MPV "launching various types of E new EVs" New business model Charging Infrastructure Battery Related Biz LCV 1) E-GMP Electric Global Modular Platform E-Sedan MPV EV Porter EV . Launch schedule is subject to change 6 HYUNDAI#9Strong Market Position in EV Enhancing Market Position in EV Market HMC BEV Global Market Share 3rd HMC M/S (Rank) Ex-China 5.6% 4.5% (5th) (3rd) 2.8% 2.2% (11th) 1.2% (16th) 0.0% 0.0% (17th) (-) (-) Global Demand (Thousand) 177 440 313 722 1,351 1,189 1,084 2014 2015 2016 2017 2018 2019 2020 3Q YTD *Source IHS Markit September 2020 7 Strategy 2025 Sales Target HEV EV PHEV FCEV CAGR 32% 250K+ 8K 190K 5K 110K 70K 1,000K+ 110K 560K 2019 2020(E) 2025(E) HYUNDAI#10FCEV Strategy FCEV Vision 2030 HMG Cumulative Investment (in KRW tri.) FCEV Production Capacity (Thousand units) 0.3 1.5 11 40 40 2020 2022 2.9 130 2025 7.6 500 2030 FCEV 1.0 Establishing business foundation FCEV 2.0 (2023-) Competitive pricing & system downsizing FCEV 3.0 (2030-) Expanding line up & value chain 8 Cummins Vitalizing Hydrogen Society Co-develop F.C Powertrain (MOU) H₂energy To deliver 1,600 FCEV trucks by 2025 (JV) HYUNDAI FCEV Vision 2030 Hydrogen Council Member and Co-Chair 0000 Cross-license agreement PARIME U.S. DEPARTMENT OF ENERGY Research partnership HYUNDAI#11FCEV Strategy (continued) Business Structure in Switzerland to bring 1,600 HD FCEV truck in operation by 2025 First 50 units will be delivered this year from September 2020 (First global commercialization) ☑ HYUNDAI Truck sales Hyundai Hydrogen Mobility Partnership with H2Energy Upfit Pay-Per-Use Model (Maas) Payment for H₂ Equity Share HYDROSPIDER Green Hydrogen Production Hydrogen Supply H2 Mobility Switzerland Association Customer n Gas Station / HRS HYUNDAI#12FCEV Strategy (continued) European market entry strategy D XCIENT Fuel Cell Hyundai Hydrogen M Patre + Switzerland Germany Norway Strategic foothold · Potential market size of FCEV trucks Netherlands France Spain Austria Italy next target countries are under review Stage 1 10 Stage 2 Business Expansion based on Country specific differences ✓ Governmental goals Direct or indirect subsidies Energy prices and surplus energy ✓ Hydrogen price ✓ Private or public initiatives Status of infrastructure ✓ City bans for diesel truck/bus HYUNDAI#13Introducing "Motional" Introducing "Motional", an autonomous driving joint venture between HMG and Aptiv • • Established: March 2020 Motional ⚫ Share Structure: Hyundai Motor Group, Aptiv (50:50 Joint Venture) (HMC 26%, Kia 14%, Mobis 10%) Headquarter: Boston ⚫ Track record - 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 • Business Develop and sale of autonomous driving solutions Developing & commercializing SAE Level 4 Vehicles Provide driverless system to Robo Taxi provider 11 Motional Motional Business Plan -'20 Begin testing Fully driverless system -'22 Commercialize its driverless systems & technology HYUNDAI#14Recent Updates Global Retail Sales Market Updates P. 13 Korea P. 14 United States P. 15 China P. 16 W. Europe P. 17 India P. 18 Russia/Brazil P. 19#152020 Global Sales (Retail Sales) Europe² China Korea -5.9% -28.9% +21.9% 162 137 129 115 163 199 India Russia +9.2% +13.6% 112 122 44 50 Q3 2019 Q3 2020 (Thousand units) HMC Global Sales³ -4.9% United States -1.9% 178 175 -0.5% Others¹ -4.8% Brazil 1,078 1,025 914 1,406 145 138 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 -14.8% 52 44 HYUNDAI#16Korea Market Industry Demand (Thousand units) 1,800 1,818 1,785 YoY +7.8% 1,393 1,292 2018 2019 9M 2019 9M 2020 2017 Hyundai Sales M/S 38.2% 39.7% 41.6% 42.4% Genesis Sales Increase (Thousand units) Volume % of sales 16.2% 8.6% 8.3% 7.5% 7.8% 6.3% 15.7 16.5 12.3 12.2 12.4 (Thousand units) 41.9% YoY +6.6% 721 742 687 547 584 14.3% 36.5 28.5 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Strong New Vehicle Cycle to continue 2018-19 2020 2017 2018 2019 9M 2019 9M 2020 Sedan Sales by Model (Thousand units) Sonata Grandeur F/L New Elantra 8.7% 13.1% 13.9% 8.4% 5.2% 11.5% 8.2% 32,1% 547 (9M 2019) Genesis Genesis SUV GV80 New Genesis G80 Genesis SUV GV70 10.9% 9.0% 20.2% 12.7% 3% 6.8% 8.1% 29.2% 584 (9M 2020) Avante Sonata Grendeur Genesis Tucson Santa Fe Palisade Others SUV (Sedan-C) (Sedan-D) (Luxury sedan (SUV-C) (SUV-D) +GV80) (SUV-E) Palisade Venue New Tucson Santa Fe F/L 14 HYUNDAI#17US Market Industry Demand (Thousand units) 17,230 17,274 17,055 12,764 YoY -18,8% SUV Sales Trend Venue Kona Tucson Santa Fe Palisade 63.1% 51.9% SUV Portion 45.2% 36.2% 10,370 28.5% 3.7% 3.0% 2.5% 2.2% SUV seg. M/S 2,0% 2017 2018 2019 9M 2019 9M 2020 Hyundai Sales (Thousand units) M/S 4.0% 3.9% 4.2% 4.1% 4.4% 686 678 710 YoY -12,8% 521 2017 455 2018 2019 9M 2019 9M 2020 29 118 == 36 94 133 43 131 137 Sales* ('000 units) 142 58 90 115 73 31 47 2016 2017 2018 2019 9M 2020 Profit recovery by improving quality of sales Sales by Model (Thousand units) Regional HQ System Optimizing 23.0% 13.1% 10.6% 19.7% 18.5% 2.6% 9.7% 521 (9M 2019) Enhanced dealer Competitiveness Focusing on market & customer volume & profit Reducing fleet sales Improve residual value 15.8% 11.7% 11.6% 20.0% 15.5% 13.0% 9.5% 455 (9M 2020) Elantra Sonata Kona Tucson (Sedan-C) (Sedan-D) (SUV-B) (SUV-C) Santa Fe Palisade Genesis Others (SUV-D) (SUV-E) 15 HYUNDAI#18China Market Industry Demand (Thousand units) 24,140 YoY -12.4% 23,016 20,804 14,786 12,948 2017 2018 2019 9M 2019 9M 2020 Hyundai Sales (Wholesales) M/S 3.3% 3.4% 3.1% 3.0% 785 790 650 443 (Thousand units) 2.3% YoY -32,5% China Strategy Successful new car launch Long-term roadmap for sustainable growth Recover sales and M/S • Improve profitability & dealer competitiveness New Model Line-up Newly Launched . Focus on EV & Genesis • Optimize capacity & dealer network Sedan 300 伊特 2017 2018 2019 9M 2019 9M 2020 SUV 1314 4321 Sales by Model (Thousand units) Elantra Palisade* 2020-2021 Palisade* Mistra La Festa F/L ix35 F/L Tucson New MPV 18.8% 22.9% 10.6% 11.4% 5.4% 6.4% 350 (9M 2019) China Strategic Models (50%-60%) EV 20.2% 15.1% 9.3% 13.5% 8.3% 5.9% 235 (9M 2020) Mistra EV La Festa EV IONIQ 5 Elantra ■ix35 (C2-Sedan) (SUB-C) La Festa (C2) Celesta (C2) ix25 Mistra (SUB-B) (D-Sedan) Others 16 * Palisade will be imported from Korea . Launch schedule is subject to change HYUNDAI#19W. Europe Market Industry Demand (Thousand units) 17,569 Green-car Sales Trend (Thousand units) EV FCEV HEV PHEV 17,630 17,851 13,651 8.5% 8.6% YoY -29,6% EV M/S 9,751 6.7% 6.1% 4.5% 5.4% 4.2% Green-car M/S 1.3% 3.3% 1.0% 2018 2019 9M 2019 9M 2020 69 59 5 28 24 24 2017 Hyundai Sales M/S 3.0% 3.1% 3.0% 2.9% (Thousand units) 528 539 536 YoY -27.6% 403 2017 3.0% 292 2018 2019 9M 2019 9M 2020 Sales by Model (Thousand units) 37 6 23 17 Sales* 36 15 31 5 13 6 2016 2017 2018 2019 9M 2020 How to meet the new CO2 target in 2020 Maximize EV & FCEV sales and Expand green-car line-up 2019 2020 2021 14.2% 15.4% 13.5% 5.9% 19.5% 24.6% 403 (9M 2019) New Model Kona HEV ■ Tucson HEV . IONIQ 5 (1st E-GMP EV) ⚫ IONIQ F/L ⚫ Santa Fe HEV/PHEV ⚫ Tucson PHEV 12.3% 16.1% 11.8%6.8% 28.9% 21.5% 292 (9M 2020) i10 ■i20 ■i30 ■loniq Kona (Sedan-A) (Sedan-B) (Sedan-C) (SUV-B) Tucson (SUV-C) Santa Fe Others (SUV-D) 17 EV HEV PHEV FCEV EV HEV PHEV FCEV EV HEV PHEV FCEV Line-up 2 2 1 124 2 1 3 4 31 HYUNDAI#20India Market Industry Demand (Thousand units) 3,209 3,371 2,954 2,167 YoY - 30.0% Winning M/S with Refreshed Line-up Q4 2019 H12020 i10 Nios & Aura Creta 1,539 2018 2019 9M 2019 9M 2020 2017 Hyundai Sales M/S 16.4% 16.3% 17.3% 17.4% SUV-Low H2 2020 2021 i20 Elantra Compact prem Premium Restore sales momentum with volume models Compact - high (Thousand units) 17.6% 550 527 YoY -28,3% 510 378 271 2017 2018 2019 9M 2019 9M 2020 Sales by Model (Thousand units) SUV Leadership SUV seg. M/S [2020] 33.6% 25.6% 22.9% Q1 12 SUV Sales trend 23.9% 23.9% 20.9% 11.3% 13.6% 6.0% 378 (9M 2019) (Thousand units) 29 2018 2019 30.0% 17.7% 22.3% 19.2% 6.8% 271 (9M 2020) i10 i20 Creta (Sedan-A) (Sedan-B) 2020 Venue Santro Verna Others (SUV Low) (Sedan-A) (Sedan-B) 18 Q2 Q3 59 46 44 38 32 32 32 32 10 Q1 22 Q2 16 Q3 HYUNDAI#21Russia/Brazil Markets Russia Industry Demand (Thousand units) 1,801 1,760 1,596 YoY -17.8% 1,271 1,045 Industry Demand (Thousand units) 2,474 Brazil 2,664 2,176 YoY -32.9% 1,939 1,301 2017 2018 2019 9M 2019 9M 2020 2017 2018 2019 9M 2019 9M 2020 Hyundai Sales (Thousand units) M/S 10.0% 10.0% 10.3% 10.5% 11.0% 180 181 159 YoY -13.9% 134 115 2018 2019 9M 2019 9M 2020 2017 Sales by Model (Thousand units) 33.9% 4.1% 38.9% 5.9% 12.3% 134 (9M 2019) 28.6% 4.3% 45.3% Solaris Sonata Creta (Sedan-B) (Sedan-D) (SUV-B) 6,2% 11.9% 115 (9M 2020) Santa Fe (SUV-D) ix35 (SUV-C) Others 19 19 Hyundai Sales M/S 10.0% 10.0% 10.3% 10.5% (Thousand units) 11.0% 207 208 YoY -31,4% 202 149 2017 102 2018 2019 9M 2019 9M 2020 Sales by Model (Thousand units) 71.8% 69.8% HB20 (Sedan-B) 28,0% 149 (9M 2019) 30.1% 102 (9M 2020) Creta Others (SUV-B) ⑧HYUNDAI#22Strategy 2025 Strategy 2025 P. 21 Mid to Long-term Business Target P. 22 Cost Innovation Committee P. 23 Long-term Investment Plan P. 24 Preparing for the Future P. 25#23Strategy 2025 Smart Mobility Solution Provider 2 BUSINESS PILLARS Smart Mobility Device SYNERGY Smart Mobility Service 3 STRATEGIC DIRECTIONS Highly Profitable I.C.E. Top-tier Leadership in BEV+FCEV 8% Operating Margin Among Global Top 3 Brands 4 BUSINESS STRATEGIES "Balanced & Steady" Growth Strong Foundation for Platform Business 6 Core Investment Areas Vehicle + Service Package Incremental Profit from "Customer Value + Cost Structure Innovation" Integrated Mobility Platform 21 23 HYUNDAI#24Mid to Long-term Business Target 2022 Improving cost competitiveness of I.C.E. and XEV Improvement • Accelerated cost innovation • Sales expansion of Genesis brand 2025 Building strong growth foundation based on high profitability of the automotive division Automotive Division 7% OP Margin +1% pt Automotive Division Limitation 8% OP Margin ⚫ Accelerated electrification Regional Profit Center System Cost Innovation Committee • Increasing investment in mobility service business Expanding xEV based on competitive cost ⚫ OP and OPM : automotive division + consolidation adjustment 22 22 Foundation for +mobility service business HYUNDAI#25Cost Innovation Committee Improvement Target 5-year Plan KRW34.5T For 5 years Automotive OPM (%) Cost Improvement 7.0% 8 Sub-committees Commonization Electrification Regional Cost Optimization Sales-related Cost 2,1% 11.9 10.1 Productivity Quality Cost 5.9 4.3 2,3 Genesis Operational Efficiency 2018 2019 2020 2021 2022 Strategic competitiveness with company-wide cost innovation Achieve target profitability by continuous cost improvement ⚫ OP improvement by revenue growth, improvement of COGS and SG&A 23 23 Effective bottom-up Cost improvement activities HYUNDAI#26Long-term Investment Plan 6-year Investment Plan Investment Details 2020-2025 KRW 61.1T Core Business Investment for Growth of Investment KRW 41.1T KRW 20.0T R&D (KRW tn) CapEx (KRW tn) Strategic Inv. (KRW tn), Annual average of KRW 10T Mobility 7.8 New Biz. Al, Robotics 11.1 New model 10.4 10.5 10.0 10.1 26.5 ⚫ Energy, UAM 9.1 Product Genesis 2.6 2.0 2.0 7.8 1.8 1.9 . 6.1 Fuel efficiency 1,7 2.5 Autonomous A.D. 0.9 0.1 Driving ⚫ Connectivity 4.7 4.5 4.7 4.5 4.5 4.3 4.0 3.3 • New plants 9.7 2,7 2.9 3.2 3.5 3.7 3.7 4.0 4.0 14.6 CapEx . Customer channels 2018 2019 2020 2021 2022 2023 2024 2025 CapEx with changed classification in 2019 Dedicated EV Electrification - EV production Infrastructure Product includes capex in product development ⚫ Electrification: including all xEV 24 24 HYUNDAI#27Preparing for the Future - 6 Core Investment Areas Automotive Production R&D Internal Quality Control Resources Strategy & Technology Division S&T Division HQ Joint Venture ⚫APTIV⭑* Investment Open Innovation Grab SOLA re Non-Automotive · Steel Logistics Finance IT MaaS Smart Mobility Solution Business Smart City Robo-taxi/ Smart City Global Open Innovation Hubs Seoul Silicon Valley Beijing Berlin Tel Aviv 5 Core Investment Areas Energy Fuel Cell / ESS Robot Wearable Robot HYUNDAI "Game Changer" "Smart Mobility Service Provider" 25 25 RIMAC Aurora Collaboration Baidu B DEEPCLINT 相灵深 師 Hydrogen Council Yandex JV named Motional A.I. Autonomous Vehicle -0 HYUNDAI#28Governance BoD & Key Improvements P. 27 ESG Enhancement Roadmap P. 28 Shareholder Return P. 29#29BoD & Key Improvements Committees of BoD Board of Directors 11 Members (5 Internal 6 Independent) Independent Directors Recommendation Committee ⚫ Search the talents who can contributes independent directors . Recommend Independent director nominees for AGM Corporate Governance and Communication Committee . Make decisions on shareholder rights related agendas . Review major investments and transaction plans Audit Committee ⚫ Approve financial statements, internal auditing process Designate external auditors and ensure to abide by laws Compensation Committee • Approval of internal directors' compensation structure ⚫ Approval of registered directors' remuneration ceiling Highlights since 2019 Continuous effort to secure sustainable growth and transparency Board of Directors CGCC¹ Shareholder Recommended Director Minority shareholders actively involved in appointing directors who can represent them Diversification of BoD members ⚫ Newly joined BoD members added diversity in nationalities, expertise and perspectives New BoD Chair Euisun Chung became a new BoD chair after 52nd AGM on Mar. 19th 2020 Mid-to Long-term Strategy . CGCC¹) reviewed and approved strategy 2025 with financial and investment target ESG Improvement Amended C.G. charter and shared shareholders' ESG related proposals Shareholder Return • Share buyback to enhance shareholder value in Nov.2019 ⚫ Suspension of 2020 interim dividend in response to uncertainty caused by COVID-19 22 27 ¹Corporate Governance and Communication Committee HYUNDAI#30ESG Enhancement Roadmap Growing Importance of ESG ESG is considered to be a key element for sustainable growth Market participants(equity, credit, government, etc.) take ESG as a necessary criteria when making investment decisions and policies Customers make purchasing decision and assign brand value based on ESG Phase I Awareness (-2018) Report the market's interest in ESG to top management Offer ESG seminars to our Board members Open dialogue with rating & consulting firms Rank 1st place in Climate Change Actions by CDP Phase II Phase III Phase IV Initiation (-2019) Involve actively with ESG rating agencies (Sustainalytics, DJSI, MSCI) Include ESG ratings as one of CEO's KPI Share ESG matters with related departments Advancement (-2020) Organize a team in charge of overall ESG strategy Review strategic approach and set up mid-to long-term plan Coordinate with all related teams to build stronger ESG Continuing Effort (2021-) Improve ESG practice to global peer level Expand our exemplary activities to the group Maintain high scores and rankings 28 HYUNDAI#31Shareholder Return Shareholder Return Total Dividend (KRW tn) Buyback & Cancellation (KRW tn) Total Return Amount (KRW tn) Payout Ratios to FCF (%) to Net Income (%) CAGR 18% 1.39 1.52 1.41 36% 1.08 1,08 0.96 0.31 0.45 0.36 25% 0.14 17% 0.53 1,08 1.08 1,08 1.07 1.05 0.82 0.53 2013 2014 2015 2016 2017 2018 2019 Excluding Cancellation of treasury in Jul 2018 (2% of o/s shares) 447% 59% 51% 51% 71% 27% 35% 20% 17% 11% 6% 2013 2014 2015 2016 2017 2018 2019 2017 Announced Dividend Policy .Disburse 30-50% of free cash flow • Target peer level of payout ratio Total Shareholder Return 1.1 trillion KRW (4,000won/share) • Payout ratios: 27% of NI, 50% of non-finance FCF 2018 Buyback and Cancellation ·1% of o/s shares cancellation (Apr-Jul) .1% of o/s shares buyback (Nov 2018-Feb 2019) Total Shareholder Return 1.1 trillion KRW (4,000won/share) 0.5 trillion KRW of share buyback · Suspension of 2020 interim dividend in response to preemptively secure liquidity to uncertainty caused by COVID-19 29 2019 Shares Buyback .1% of o/s shares buyback (Dec 2019-Mar 2020) Total Shareholder Return 1.1 trillion KRW (4,000won/share) 0.4 trillion KRW of share buyback HYUNDAI#32Appendix Production capacity by plant P. 31 Wholesales by Region P. 32 Statement of Income P. 33 Recent Earnings by Division P. 34 Finance Division P. 35#33Production capacity by plant (Unit: 1,000 vehicles) Korea (HMC) CAPA 2019 Production Products 1,742 1,786 PV (Hyundai & Genesis), CV China (BHMC) 1,350 658 Elantra, Mistra, La Festa, ix25, ix35 India (HMI) 696 682 Creta, Venue, Nios, Aura, i20 US (HMMA) 370 336 Elantra, Sonata, Santa Fe Czech (HMMC) 330 310 i30, Tucson, Kona EV C⭑ Turkey (HAOS) 200 178 i10, 120 Russia (HMMR) 200 245 Solaris, Creta Brazil (HMB) ⚫ Source: 2019 Annual business report, Company data 180 206 HB20, Creta 31 ⚫ Indonesian plant is under construction HYUNDAI#34Wholesales by Region (Thousand units) Q3 2019 Q3 2020 YOY 9M 2019 9M 2020 YOY Korea 163 199 +21.9% 547 584 +6.6% North America 228 203 -11,1% 642 570 -11.1% Europe 141 138 -2.4% 433 328 -24,2% India 118 134 +13.9% 378 271 -28.3% Russia 49 49 54 +10.7% 149 131 -12.1% South America 86 57 57 -34.2% 228 131 -42.5% Others¹ 146 94 -35.6% 399 287 -28.1% Sub-total² (ex-China) 928 879 -5.2% 2,776 2,302 -17.1% China (BHMC) 171 118 -31.0% 443 300 -32.5% Total³ 1,103 998 -9.6% 3,230 2,605 -19.3% 1 MEA, Asia-Pacific, Other regions, Commercial vehicles(ex. Korea CV) 2 2019 ex-China excludes China CV 32 3 Wholesale including CV and CKD 32 HYUNDAI#35Statement of Income (Billion KRW) Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 YOY QoQ Revenue 26,969 27,824 25,319 21,859 27,576 2.3% 26.2% Gross Profit 4,428 4,691 4,265 3,712 5,125 15.7% 38.1% Margin (%) 16.4 16.9 16.8 17.0 18.6 SG&A 4,050 3,527 3,402 3,122 5,439 34.3% 74.2% Portion (%) 15.0 12.7 13.4 14.3 19.7 Operating Income 379 1,164 864 590 -314 TTR TTR Margin (%) 1.4 4.2 3.4 2,7 -1.1 Income before tax 429 1,132 724 596 -362 TTR TTR Margin (%) 1,6 4.1 2,9 2,7 -1.3 Net Income 460 772 553 377 -189 TTR TTR Margin (%) 1.7 2.8 2,2 1.7 -0.7 D&A¹ 1,018 1,041 1,059 1,088 1,114 EBITDA 1,396 2,206 1,923 1,678 801 1 Includes lease amortization under IFRS 16 33 HYUNDAI#36Recent Earnings by Division (KRW Bil.) 2017 2018 2019 Q1 2020 Q2 2020 Q3 2020 YOY Revenue 96,376 96,813 105,746 25,319 21,859 27,576 +2.3% Automotive 74,490 75,265 82,487 19,555 16,057 21,486 +4.2% Portion (%) 77.3 77.7 78.0 77.2 73.5 Finance 15,415 14,958 16,027 4,176 4,341 4,441 +1,7% Portion (%) 16.0 15.5 15.2 16.5 19.9 Others 6,471 6,589 7,233 1,589 1,649 -16.8% 1,461 Portion (%) 6.7 6.8 6.8 6.3 6.7 Operating Income 4,575 2,422 3,606 864 590 -314 TTR Automotive 2,585 1,062 2,618 569 295 -911 TTR Margin (%) 3.5 1.4 3.2 2.9 1.8 Finance 718 747 888 218 272 505 +121,6% Margin (%) 4.7 5.0 5.5 5.2 6.3 Others 339 105 99 71 42 73 +244.6% Margin (%) 5.2 1.6 1.4 4.5 2.9 Adjustment 932 508 0 5 -19 19 34 HYUNDAI#37Hyundai Capital 1 Assets: Auto centric portfolio (prime customers mixt) - New Car: HMG sales increase & Stronger OEM co-marketing - - Used Car: Channel diversification (online, direct sales) led to growth P-loan: Focused on auto prime customers Mortgage: Less market transactions & monthly volume cap maintained 2 Risk: Tightened risk to prepare for prolonged COVID-19 - Underwriting: Tightened policy of Non-Auto products Collection: Reinforced actions to prevent delinquency Non-Performing Loan: Established pre-write-off NPL sales process 3 Profits: Maintained with stable bad debt expense & cost savings Bad debt expense: Decrease from mix effect of an Auto centric portfolio SG&A: Optimized cost structure through process digitalization 4 Treasury - - Funding: Leveraging short-term, ABS and offshore green bond Liquidity: Tightened liquidity policy to prepare for possible crisis 5 Global business: Widened finance coverage to support HMG sales Launched China Lease business, acquired Germany Sixt Leasing (3Q) ①Penetration rate 2 P-loan and mortgage 35 Asset Portfolio (KRW tn) 46.5% 43.2% 46.3% 40.6% Pen, rateⓇ 7.7 7.3 Non-auto 7.9 6.8 17.7 19.1 21.9 23.0 Auto '17 '18 '19 9M20 Asset Quality 2.0% 2.1% 1.9% 1.7% 30+% DQ 44.7% 51.4% 58.2% 65.4% Prime mix in volume '17 '18 '19 9M20 Profits (KRW bn) 1.5% Bad debt 1.4% 1.4% expense ratio 0.8% IBT 401 415 460 382 '17 '18 '19 9M20 Liquidity (KRW tn) 154.2% 134.8% 126.0% 138.3% ALM 2.0 1.7 1.6 1,2 Cash 3.3 3.5 3.9 3.6 Credit line '17 '18 '19 9M20 HYUNDAI#38Hyundai Card 1 Members: Grew in low-cost & high-efficiency channels (PLCC, Online) Members (KRW K, mn) 134 102 50 32 - PLCC: Continually signing new partnerships ⚫ ~'20.3Q: HMC, KMC, emart, ebay, Costco, SSG.com, GS Caltex, Korean Air ⚫ '20.4Q ~: Starbucks(Oct), BAEMIN('20.4Q), SOCAR('21), MUSINSA('21) 2 Volume: Gained balance growth of credit purchase & financial product Credit Purchase: Auto volumet based on solid domestic car sales, installment volumet from member expansion Financial Product: Volume of prime oriented Card Loan grew in line with member expansion 3 Profits: Maximized with optimal cost structure & stable quality Card related cost: Acquisition cost↓, due to PLCC channels & service fees↓ with digitalized processes Bad debt expense: Ratio improved with lower delinquency as a result of taking tighter risk actions 4 Treasury 7.16 7.73 8.67 9.07 '17 '18 '19 9M20 Acquisition costⓇ Total members Online+PLCC 40.9% 53.6% 80.2% 77.7% mix® Volume (KRW tn) 60.7% 62.2% 56.7% Prime mix in volumeⓇ 51.8% 11,8 12.6 11.6 Financial 9.5 Product 67.6 71.0 76.9 60.9 Credit Purchase '17 '18 '19 9M20 Profits (KRW bn) 2,1% 2.1% 1.9% 1.6% Bad debt expense ratio 302 259 IBT 201 220 - Funding: Sourced non-bond facilities (bank loan, ABS, etc.) to preemptively tackle short-term market crunch '17 '18 '19 9M20 - Liquidity: Increased cash holdings to prepare for possible crisis Liquidity (KRW tn) 151.6% 136.0% 128.7% 130.9% ALM 5 New growth engine: Transition to the data science company Building Big Data Platform to enable X-marketing between PLCC partners ①Per member 2 Individual 3 In acquisition ④Financial Product 36 Cash 1.7 2.0 2.5 1.5 Credit Line 0.8 1,0 0.9 1.0 '17 '18 '19 9M20 ⑧HYUNDAI#39Hyundai Commercial 1 Assets: Industrial finance turnaround & steady growth in corporate finance - - Industrial finance: maintained stable origination focusing on safe assets & visible results gained in new business Corporate finance: Increased volume in prime PF & NPL assets 2 Risk: Differentiated UW policy based on risk appetite Underwriting: Continually cutting off high-risk (multi-debt, thin file, etc.) Collection: Reinforced monitoring through field inspections & expediting collection on non-performing/high-risk receivables 3 Profits: Improved from solid bad debt expense & related company income - Bad debt expense: Ratio improved with lower delinquency - Related companies: Hyundai Card's strong performance continued, Fubon Hyundai Life's equity method income turned to surplus 4 Treasury 5 - - Funding: Diversified into long-term CP, sustainability bond, etc. Liquidity: Tightened liquidity policy to prepare for possible crisis (year-end targets: 6M Coverage 110%, ALM 130%) New growth engine: Shift to platform business Korea's first ever corporate finance market platform - Deal matching and various corporate related services provided ①Industrial finance Asset Portfolio (KRW tn) 49.0% 45.0% 47.0% Penetration rate 43.0% Corporate 2.2 1.9 2.6 2.7 Finance Industrial 4.2 4.5 4.2 4.3 Finance '17 '18 19 3Q20 Asset Quality 0.74% 0.65% 0.48% 30+% DQ 0.23% Safe assets mix in 40.4% 45.7% 21.3% 25.5% volume (Industrial '17 '18 '19 3Q20 Finance) Profits (KRW bn) 1.73% 1,68% 0.81% 0.93% Bad debt expense ratio 115 106 80 96 IBT '17 '18 18 Liquidity (KRW tn) '19 3Q20 143.8% 125.1% 135.7% 135.0% ALM 1.1 Cash 1.0 0.7 0.8 0.9 0.9 Credit Line 0.5 0.5 '17 '18 '19 3Q20 37 ⑧HYUNDAI#40Hyundai Capital America (US) 1 Assets: Loan focused growth with OEM sales recovery based on better market share & higher penetration rate Loans: Growth driven by SUV line-up shift and pen. rate increase Lease: Control asset size to minimize possible lease residual risk 2 Risk management: Continued asset quality improvement with conservative UW policy & normalized collection activity 3 - 30+ %: Prime customer focused asset growth and stabilized quality performance with tighter underwriting Collection: Restart activity after COVID-19 deferral payment & repossessions hold Profits: Stronger IBT with topline growth, recovered used vehicle value & stabilized bad debt expense - Revenue: Interest income growth from expanded loan asset Asset Portfolio (KRW tn ) 53.6% 46.1% 55.6% 61.4% Pen, rate Wholesale 2.5 2.8 2,2 2.5 17.2 Lease 17.2 17.2 17.0 14.4 14.7 18.6 23.4 Loan '17 '18 '19 9M20 Asset Quality 2.5% 2.6% 2.3% 1.6% 30+% DQ 78% 78% 80% 79% Prime mix in assets 19 9M20 '17 '18 '19 Profits (KRW bn Ⓡ) Bad debt 1,2% 1.1% 1.0% 1.2% expense ratio - - Lease RV: Recovered pricing with rebounded used vehicle demand Bad debt expense: stabilized due to strong customer payment performance 4 Capital structure & liquidity 394 283 IBT 116 155 '17 '18 '19 9M20 Liquidity (KRW tn Ⓡ) 7.6X Debt 6.8X 7.1X - Funding: 3Q Issued bond (2.5BN USD) & lease ABS(1BN USD) 6.6X leverage 1.6 - Liquidity: Strong position supported by broad capital market access Cash 05 05 1.7 10.5 6.8 7.1 Credit line 4.1 '17 '18 '19 9M20 123 Applied end-of-term KRW/USD exchange rate of Seoul Money Brokerage Services 38 ⑧HYUNDAI#41Beijing Hyundai Automotive Finance (China) 1 Assets: Growth from stronger penetration rate & longer assets maturity - Volume: Lessened impact of volume decline compared to drop in car sales by increasing penetration rate (YoY +4.7%p) Asset (KRW tnⓇ) 27.8% 37.9% 42.0% Pen, rate 31,7% 4.0 3.9 4.4 4.3 Maturity lengthening: Continually expanding income basis by shifting assets to longer tenor (24M-36M) '17 '18 '19 9M20 Asset Quality 2 3 Risk: Quality index stabilizing since year-beginning COVID-19 hit 30+%: Stabilizing since updating internal risk model (vs. Feb'20 0.24%) Quality: Recovered prime asset mix through conservative risk management (Feb'20 78.6% → Sep'20 81.0%) Profits: Income grew from asset effect & ordinary expenses reduction - Operating revenues: Interest income grew 6.3% YoY as an effect of accumulated financial assets 0.15% 0.10% 0.12% 0.08% 30+% '17 Profits (KRW bn ) 2,6% '18 '19 9M20 2.2% 1.9% OPEX ratio 1.6% over avg.balance 161.6 123.5 107.9 109.5 IBT - Ordinary expenses: Continually reduced with labor cost cuts and deferred marketing cost '17 '18 '19 9M20 Liquidity (KRW tn Ⓡ) 4 Treasury Funding: Obtained 1.4BN RMB bank loan, planning ABS/bond 6BN RMB in 4Q 111,0% 106.6% 102.9% 87.5% ALM - Liquidity: Preemptively increased cash holdings to prepare for a possible market crunch caused by a second COVID-19 wave 1.3 Cash 0.8 0.8 0.8 '17 '18 '19 9M20 123 Applied end-of-term KRW/RMB exchange rate of Seoul Money Brokerage Services 39 ⑧HYUNDAI#42Cautionary Statement with Respect to Forward-Looking Statements In the presentation 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. 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. HYUNDAI