#1Investor Presentation June 2018 G70 ☑#2Cautionary Statement with Respect to Forward-Looking Statements In the presentation that follows 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; final data will be included in HMC's Independent auditor's report. 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#3Table of Contents • • Key Strengths for HMC Future Strategies Shareholder Value • Appendix HYUNDAI#4SANTA FE Key Strengths for HMC#51. Balanced Growth Global Sales Trend (Unit: 1,000 vehicles) 1 2.9% CAGR '10-'17 4,835 4,843 4,917 4,621 4,392 4,532 4,099 3,701 2010 2011 2012 2013 Brand Value Growth (Unit: US$ in Billions) Focus on Value Growth Strategy (U$ 5B in '10 → 13.2B in '17, 162%1) 24.4% 19.3% 9.3% 20.5% 15.6% 11.1% 8.5% 5.1% 5.0 6.0 7.5 9.0 10.4 11.3 12.5 13.2 2010 2011 2012 2013 2014 2015 2016 2017 HMC Brand Value (Billion US$) HMC Value Growth (%) 2014 2015 2016 2017 Source Interbrand Source: Company data (Retail sales excluding CKD sales) Initial Quality Study (Unit: number of problems per unit) (Ranks among non-Premium) 5 1 2 4 2 GENESIS 106 94 94 95 92 22 2013 2014 2015 2016 Source J.D. Power Vehicle Dependability Study (Unit: number of problems per unit) (Ranks among non-premium) 3 3 9 16 15 1st 188 169 158 77 133 124 2017 (Ranks among Premium) 2014 2015 2016 2017 2018 Source J.D. Power HYUNDAI#62. Balanced Sales Growth through Global Plants (YTD) ), sales in more than 200 countries globally 9 manufacturing plants (●), 6 R&D facilities ( ), 14 direct sales subsidiaries ( '17. 10 +2.7% +28.2% -14.9% 31 39 131 134 Russia 206 175 +4.5% EU -9.0% 135 123 Others (MEA, APAC, Turkey) Czech Plant Russia Plant Source: Company data (Retail sales excluding CKD sales) -11.8% 169 149 China 162 169 US Korea '18. 1Q +9.9% -3.3% +0.1% +7.9% '17.1Q '18. 1Q '17. 1Q '18. 1Q 121 133 40 43 India 1,075 1,040 Brazil 860 861 СХЕМА ЗАВОДА Global Global (ex-China) LOUR Drive your way Turkey Plant India Plant China Plant US Plant (Unit: 1,000 vehicles) Brazil Plant HYUNDAI#72. Balanced Sales Growth by Diversified Business Portfolio Geographically Diversified Portfolio (%) Marketable Product Mix* (%) Hyundai 15.2 18.0 16.8 18.6 16.0 15.4 Hyundai 49.1 14.5 29.7 6.6 VW 12.6 7.1 29.4 39.4 3.0 8.5 VW 56.7 16.6 21.4 5.3 GM 35.3 3.5 0.7 45.0 3.4 12.1 GM 27.4 11.1 35.0 26.5 Toyota 22.4 26.4 9.6 13.5 16.8 11.2 Toyota 37.5 10.4 39.1 13.0 Honda 13.6 34.7 3.2 27.6 14.3 6.5 Honda 40.9 11.1 0 20 40 60 80 100 ■Domestic North America Europe China Asia (ex-China) Others ■ A+B+C 20 20 Source: Company data for HMC 2017 Global Retail Sales, Competitor information from IHS (CY2017 data) *A+B+C=Mini+Sub Compact+Compact; D+E+F=Mid-Size+Large+Luxury; RV=SUV+MPV; Others PUP and others; excluding HCVs 6 40 46.7 1.3 60 60 80 100 D+E+F ■RV Others HYUNDAI#83. Brand Enhancement Enhancement in Brand Value (Unit: US$ in Millions) Awards and Accolades (Ranks) Date Titles Regions Models +5% '18.02 '18 Consumer Report U.S. Genesis +11% (Top Auto Brands) 35 35 '18.02 iF Design Award 2018 Germany G70, KONA, 130, Solati +16% 40 43 13,193 '17.12 '17 Good Design Award U.S. Sonata 12,547 '17.09 '17 JD Power (Driver Experience in Compact) U.S. Elantra 11,293 10,409 '17.09 '17 Automotive Brand Contest (Exterior and interior design) Germany i30 m 9,004 '17.09 '17 US Tech Experience Index Study (Highest in Compact Segment) U.S. Elantra +19% 15 China Automobile Customer '17.09 China 7,473 Satisfaction Index (SUV A) Tucson, Yuedong, Yuena, Langdong 55 65 5,033 6,005 '17.08 Ideal Vehicle Awards (Best in Class, Ideal Luxury Car) U.S. G90 '17.06 Green Good Design Award U.S. ΙΟΠΙΟ '17.06 Right Car to Buy 2017 Brazil Creta '17.06 10 Best Family Cars (Best Sedan) U.S. Sonata, Sonata HEV *17.04 Red Dot Design Awards Germany G80, Azera, i30 '17.02 iF Design Award 2017 Germany i30 2010 2011 2012 2013 2014 2015 2016 2017 '17.01 Executive Sedan Of The Year India Elantra • Brand value has increased an average of 14% each year, since the implementation of Modern Premium in 2011. Source: Interbrand Car of the Year Awards 2017 '17.01 U.K. (Best Small Hatch) BESTRIDES OF 2016 *17.01 (compact crossover/SUV) ΙΟΠΙΟ U.S. Santa Fe Sport HYUNDAI#94. Consistent Profitability Relative to Peers HMC has shown comparable operating performance relative to competitors during the past years Consolidated Operating Margin Trend 6.9% 5.5% 4.7% -1.9% 3.3% 6.2% 6.2% 6.0% 5.5% 5.6% 4.5% 4.6% W NISSAN 10.3% 2015 2016 2017 Source: Public filings Note: Based on consolidated financials, Calendarized financials for Japanese Firms. 8 7.8% 7.6% I 6.7% 6.9% 3.2% | 5.1% "3.8% 3.1% GM Ford - HYUNDAI#10Future Strategies#11Sustainable Success Going Forward Key Strategies for Ongoing Growth in Earnings 10 Consistent revenue growth and enhanced profitability to be achieved through structural improvement in product/brand value, balanced capacity expansion and cost structure improvement Value Growth Volume Growth Cost Structure Improvement Future Technology New Brand Enhance Product and Brand Value Balance Capacity Expansion and New Model Launch Higher Cost Competitiveness Develop Independent and Distinctive Technology Launch New Brand as a Driver for Growth HYUNDAI#121. Value Growth (Product Competitiveness) Tucson and Genesis with outstanding specification received excellent remarks from customers Tucson (Sub-compact SUV) Specification Displacement Max. Power Mileage (City/Highway) Safety (Small Overlap) MSRP 2017 US Sales Volume (Growth) Hyundai Tucson (17MY) 1.6T 175 @ 5,500 26mpg / 32mpg Top Safety Pick (Good) USD 22,700 31,175 114,735 (YoY 28% 1) Honda CR-V (17MY) 1.5T 190 @ 5,600 28mpg / 34mpg Top Safety Pick Plus (Good) ~ USD 24,045 33,795 377,895 (YOY 6% 1) VW Tiguan (17MY) 2.0L 200 @ 5,100 20mpg / 24mpg (Marginal) USD 24,995 ~ 36,475 46,983 (YOY 8% 1) G80 (Mid-luxury sedan) Specification Displacement Max. Power Mileage (City/Highway) Safety (Small Overlap) MSRP 2017 US Sales Volume (Growth) Source: Autodata 11 Genesis G80 (17MY) 3.8L Audi A6 (17MY) 3.0L 311 @ 6000 18mpg / 28mpg Top Safety Pick Plus (Good) USD 41,400 54,550 16,322 (YOY A 33%) 333 @ 5500 21mpg / 29mpg Top Safety Pick (Good) USD 47,600 ~ 70,900 16,304 (ΥΟΥ Δ13% [ ) BMW 5 Series (17MY) 3.0L 335 @ 5500 20mpg / 30mpg Top Safety Pick Plus (Good) USD 51,200 72,500 ~ 40,658 (YOY +26% 1) HYUNDAI#132. Volume Growth HMC's global sales to increase with capacity expansions Capacity Expansion and Sales Plan Production Capacity Expansion 2018 Sales Plan (Unit: 1,000 vehicles) 2016 2017 2018 (P) (Unit: 1,000 vehicles) 2017 2018 (P) Korea 1,870 1,870 1,870 Korea 689 701 China (BHMC) 1,100 1,325 1,475 Overseas 3,818 $ 3,974 India 650 650 650 US 370 370 370 Americas 1,185 1,222 Czech 300 300 300 AMEA 1,020 1,016 C⭑ Turkey 200 200 200 China 785 900 Russia 200 200 200 Brazil 170 170 170 Europe 767 773 Others 55 55 55 CVs 60 64 Overseas 3,045 3,270 3,420 Total 4,915 5,140 (5,290 Total 4,507 4,675 Source: Company data * Above figures in sales plan are based on wholesales ** BHMC Beijing-Hyundai Motor Company) / Others Sichuan-Hyundai Motor Company, Others 12 HYUNDAI#143. Cost Structure Improvement (Platform Integration) Platform integration will reduce development costs and deliver greater economies of scale Platform Integration Integration Schedule Reduction of Model Development Time 2002 2009 2011 2015 Integrated Platforms 0 6 6 6 Total No. of Platforms 22 18 11 6 Total No. of Models 28 32 36 48 Models per Type of Platform Mass Production Niche Market Micro-Small Small-Mid Mid-Large LCV FR-Mid FR-Large Source: Company Data 13 40 2002 Avg. of 40 months → ► 19 months 33 2009 Increasing portion of models with integrated platform 2012 Old 25% New 75% 2014 Old 13% 19 2013 2015 Old 9% New 87% New 91% HYUNDAI#1514 4. Future Technology Hyundai Motor's Vision for Future Mobility Clean Mobility Freedom in Mobility "To bring our customers the most efficient, convenient, economical mobility solution" Connected Mobility HYUNDAI#164. Future Technology (Clean Mobility) By 2020, HMC will Improve fuel efficiency by 25% on average, securing the product competitiveness in the market 2020 Fuel Efficiency improvement Roadmap Improve powertrains • Refresh 70% of the current powertrains (7 out of 10 P/T line-ups to be replaced) Category 2014 Gasoline Kappa, Gamma, nu, Theta II, Lambda II, Tau By 2020 ⚫ new engines • Improve performance of Пu for mid-seg and "Kappa, engines for small-seg sedan Diesel Expand engine lineups with turbo-charger • Improve current 6-speed and 8-speed transmission Transmission ⚫ U, R, A, S ⚫4 spd Kappa, CVT • 6 spd: Gamma, Theta, Lambda DCT .7 spd Gamma DCT .8 spd Lambda • Performance ⚫ Turbo Charger ⚫ new engines • Increase number • of transmissions Improve transfer efficiency 15 Reduce weight • Increase portion of advanced strength steel for the chassis of platform to make vehicles safer and lighter Category 2014 By 2018 . Apply more lightweight materials such as aluminum, foamed plastic and etc. Advanced strength steel 33% 52% 48% ~62% Expand Green Car line-ups Increase green car line-up to 31 models by 2020 and 38 models by 2025 Category 2017 2020 2025 • Introduce new green car technologies HEV PHEV 6 Models 10 Models 10 Models 4 Models 11 Models 12 Models • Aiming to be the 2nd largest manufacturer in green car market EV 2 Models 8 Models 14 Models FCEV 1 Model 2 Models 2 Models Total 13 Models 31 Models 38 Models *Including Kia models HYUNDAI#174. Future Technology (Clean Mobility) Mid / Long-term Green Car Development Strategy Fuel efficiency Technology Downsizing DCT Turbo Hybrid Technology PHEV Clean Mobility Technology FCEV Clean Mobility Diesel R&D GDI Hybrid System Eco-friendly energy system Utilize electric power Efficiency Technologies / Enhance fuel efficiency EV ISG Adopt fuel efficiency technology / reduce carbon emission HEV Clean Diesel Gasoline CNG Electric Combustion + Electric Combustion Green Car Development Trend Establish a flexible platform to swiftly react to market changes 16 Fuel Cell [Size] Hybrid/Plug-in Large Electric Vehicles Mid Mid Mid-large New Car Launch Small [Fuel] Low-mid 200km 500km Gasoline, Diesel + Electricity Electricity Respond to fuel efficiency regulations Secure competitive fuel efficiency Line-up Strategy Expand Green Car line-up to 31 models by 2020 and 38 models by 2025 Category 2017 2020 2025 Rank 2nd 2nd 2nd [Driving Distance] Hydrogen Number of 13 31 38 Green models models models Lead regulation / green car Technology Cars *Including Kia models *Source: IHS, Company data HYUNDAI#18Electric Motor Simpler in structure compare with other types of hybrid Powered by advanced lithium-ion battery IONIQ HEV 4. Future Technology (Clean Mobility) HMC independently developed and obtained distinctive technology on hybrid system Hybrid Vehicle Parallel Hybrid Drive System HEV Performance Comparison Specification Hyundai IONIQ (Blue) Toyota Prius (Eco) Ford C-Max net Power 141 ps 121 ps 141 ps • Displacement: 1.6 • Пet Power 141 ps Battery 1.56 kWh 0.75 kWh 1.40 kWh • Fuel Efficiency: 58 mpg • Launched in 2016 Fuel Efficiency (combined) 58 MPG 56 MPG 39 MPG IONIQ hybrid System Parallel System Power Split System Power Split System Electric Vehicle EV Performance Comparison IONIQ EV Specification Hyundai IONIQ EV Nissan Leaf 2017 VW e-Golf 2017 Battery capacity: 28.0 kWh Max. distance: 280 km (EU) 191 km (Korea) Battery 28 kWh 30 kWh 35.8 kWh Motor 88 kW 80 kW 100 kW IONIQ electric • Max. speed: 165 km/h Fuel Efficiency (combined) 136 MPGe 112 MPGe 119 MPGe Driving Distance 124 miles 107 miles 125 miles (EPA 2017 MY) Source: Company data 17 HYUNDAI#194. Future Technology (Clean Mobility) HMC independently developed and obtained distinctive technology on hybrid system Plug-in Hybrid Vehicle Fuel Cell Electric Vehicle Source: Company data 18 PHEV Performance Comparison Specification Hyundai IONIQ PHEV Toyota Prius Prime Chevrolet Volt IONIQ PHEV Battery 8.9 kWh 8.8 kWh 18.4 kWh • Displacement 1.6 . Пet Power 141 ps • Launched in 2017 Motor 44.5 kW Fuel Efficiency (combined) 20.5 km/l (Gas.) 5.5km/kWh (Elec.) Driving Distance (Korea) 46 km 40 km 90 kW 21.4 km/ (Gas.) 6.4km/kWh (Elec.) 111 kW 17.8 km/ (Gas.) 5.3km/kWh (Elec.) 89 km ПЕХО • Max. distance: 609 km (Korea) 378.4 mile (US) • NEXO Max. speed: 177 km/h • Fuel efficiency: 96.2km/kg • FCEV Development Assuring 'FCEV Leading Maker' position by producing the most efficient FCEV model, NEXO Major components are independently developed, e.g. FCEV stack The first auto maker to successfully begin commercial production several years ahead of competitors HMC Toyota Honda • More than 600km with a 700-bar hydrogen tank can be fully charged in 5 minutes Production year 2013 2015 2016 HYUNDAI#204. Future Technology (Freedom in Mobility) HMC targets to bring level 4 autonomous driving in smart cities by 2021 and fully autonomous driving by 2030 "Intelligent Safety Vehicle" Development Philosophy Provide ultimate safety not only to the driver but also to the passengers / pedestrians / other drivers, by having vehicle proactively analyzing driving environments and assist driver when necessary ✓ Development status ✓ Levels of Driving Automation (SAE) 19 Level 1 & Level 2 아니 고속도로 추 리 Lev. Definition Note 5 Full Automation In advanced research HDA (Highway Driving Assist) TJA (Traffic Jam Assistance) 4 Advanced High Automation First show in CES 2017 Driver Assistance System 3 Conditional Automation Level 3 2 Partial Automation 1 Driver Assistance Completed advanced development Partially in market (HDA, etc.) In market (LKAS, SCC, AEB, etc.) Automated Lane Change Highway TG Entry/Exit Intersection Entry/Exit *SAE (Society of Automotive Engineers) | HYUNDAI#214. Future Technology (Connected Mobility) HMC has concentrated on R&D and increased investment for future technologies 20 20 Remote Support Remotely connect cars to prevent or solve problems 4 Core Technologies 66 Major areas Fully Autonomous Smart Traffic Fully autonomous using V2X (V2X : Vehicle to Everything) Locate vehicles and analyze traffic to navigate the car Mobility Hub Vehicles become center of Vehicles become information hubs connecting cars to life <------- Car Network Tele network BA... " our lives <<---- Cloud Big Data ■ 'Open Innovation' partnership with global companies (Cisco partnership established in April 2016) ■ Integrated infrastructure combining network, cloud, big data and security solutions HYUNDAI#225. New Brand (Introduction of Genesis) HMC introduced new global luxury brand 'Genesis' as a driver for growth Establish virtuous business circle Apply advanced technology on premium cars Invest more on advanced technology Cost down effect by commercialization Penetrating fast growing premium market Global Premium Car Market CAGR('12 '17): 7.7% -> (Unit millions) CAGR(1821) 3.1% --> 10.0 10.5 11.0 11.5 11.8 12.0 12.2 9.3 8.6 7.9 7.2 Sales increase and generate profit Apply advanced technology to mass produced vehicles Unlock the untapped profit opportunity Operating Profit Margin by Brands (2017) Luxury Brand Average (8.5%) 10.0 7.6 7.1 6.9 6.5 6.0 5.6 5.0 Why Genesis? 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Elevate entire brand and organization 3.1 HYUNDAI Mass Brand Average (5.8%) BMW Toyota Daimler Renault Nissan GM Honda VW Ford Source: IHS, Company data 21 GENESIS GENESIS HYUNDAI#235. New Brand (Strategy of Genesis) Genesis Brand to achieve full line-up of 6 models by 2021 History 22 222 GENESIS GENESIS GENESIS GENESIS อง G80 2008 2013 2015 2016 2017 Genesis 1st gen. (Hyundai) Genesis 2nd gen. (Hyundai) Launched Genesis brand & EQ900 (G90) G80 (Genesis) G70 (Genesis) Roadmap Phase 1 (~17) Phase 2 (~21) Phase 3 (21 ~ ) Sales Channel Sales Channel Sales Channel Share existing sales network and resources Line-up: 3 models Selectively open exclusive dealers and operate online sales channel Line-up: 6 models Separately operate exclusive dealers Line-up: Diversify powertrain EQ900 (690) G70 G80 Large-size SUV Sporty Coupe Mid-size CUV Green car models HYUNDAI#245. New Brand (High Performance Vehicle, n sub-brand) П will bring racetrack-capable vehicles to customers who truly love cars Balanced Performance Three Principles of N brand Delivers the value of harmonized performance 223 Emotional Maximize driver's emotional Delight delight of driving Inspired Technology Technology originated from WRC RM14 Concept 2012 - 2014 N 2012 Inception of R&D Project RM (Racing Midship) 2015 Introduce n sub-brand Vision Gran Turismo Major Concept Models RM16 Displacement: 2.0T GDI • Max. Power: 300 PS Max. Torque: 39kg.m RM 16 Concept 2016 N 2025 Vision Gran Turismo • Displacement: Hydrogen Fuel Cell •Max. Power: 884 PS 2017 n sub-brand launch sub-brand model 1st '130 n' launched in Europe HYUNDAI#25Ce Kona Shareholder Value#26Shareholder Value HMC has increased shareholder return, enhanced communication with shareholders, and improved transparency Key Activities 25 ☑ Apr. 2015 Established Corporate Governance and Communication Committee Mar. 2016 Posted Corporate Governance Charter Jan. 2017 Announced Mid-long Term Dividend Policy Jan. 2018 Will appoint An Outside Director* based on Recommendation of Shareholders * In charge of Shareholder's Rights protection Mid-long Term Dividend Policy ✓ Allocate 30 to 50% of annual Free Cash Flow for shareholder returns ✓ Aim to lift its payout ratio to the average of global automakers *Free Cash Flow from non-finance division 27% 20% 17% 11% 6% 1,950 3,000 4,000 4,000 4,000 2013 2014 2015 2016 2017 DPS (KRW) Payout Ratio (%) *DPS for ordinary shares including interim dividend HYUNDAI#27HAN ACA329 LANE ed 111 Appendix#28Balance Sheet (K-IFRS Consolidated) 27 (Billion KRW) End-2017 End-1Q18 Diff. % chg. Asset 178,199 175,569 A2,630 Δ1.5% Current Asset(a) 73,976 71,247 A 2,729 A3.7% Liabilities(b) 103,442 101,089 A2,353 A2.3% Current Liability(c) 43,161 44,196 +1,035 +2.4% Debt(d) 72,001 70,272 A 1,729 A2.4% Provision 6,654 6,598 A56 A 0.8% Equity(e) 74,757 74,480 A277 A0.4% Capital Stock 1,489 1,489 ΔΟ A 0.0% Capital Surplus 4,201 4,201 0 0.0% Retained Earnings 67,332 67,393 +61 +0.1% Current Ratio (a/c) 171.4% 161.2% Liability to Equity(b/e) 138.4% 135.7% Debt to Equity (d/e) 96.3% 94.3% EBITDA/Interest Exp. 24.3x 21.6x HYUNDAI#29Income Statement (K-IFRS Consolidated) 28 (Billion KRW) '17. 1Q '17.2Q '17. 3Q '17.4Q '18. 1Q yoy qoq Revenue 23,366 24,308 24,201 24,501 22,437 A 4.0% A8.4% Gross Profit 4,293 4,727 4,340 4,218 3,468 A 19.2% A 17.8% Margin (%) 18.4 19.4 17.9 17.2 15.5 SG&A 3,043 3,382 3,135 3,443 2,786 A8.4% A 19.1% Portion (%) 13.0 13.9 13.0 14.1 12.4 Operating Income 1,251 1,344 1,204 775 681 A 45.5% A 12.1% Margin (%) 5.4 5.5 5.0 3.2 3.0 Income before tax 1,757 1,165 1,100 416 926 A 47.3% +122.5% Margin (%) 7.5 4.8 4.5 1.7 4.1 Net Income 1,406 914 939 1,288 732 A 48.0% A 43.2% Margin (%) 6.0 3.8 3.9 5.3 3.3 Depreciation 546 552 568 589 571 Amortization 306 307 321 341 344 EBITDA 2,102 2,203 2,093 1,705 1,596 HYUNDAI