Preparing for the Future - 6 Core Investment Areas slide image

Preparing for the Future - 6 Core Investment Areas

Hyundai Capital 1 Assets: Captive oriented stable portfolio - - New Car: Stronger competitiveness based on OEM co-marketing Used Car Prime dealer centric volume - Personal-loan: Cross-sell focused targeting Auto prime customers Mortgage : Limited loss with RV Ⓡ insurance & monthly sales cap 2 Risk: Quality controlled by taking preemptive actions - - - Underwriting Tightened policy on Non-auto products Collection: Focus on short-term collection and prevention of roll-over Non Performing Loan Pre-write-off process of all products 3 Profits: Income maintained with stable bad debt expense and efficient cost - debt expense: Stabilizing since conservative risk management in '18 - SG&A: Efficient labor cost and marketing cost structure Asset Portfolio (KRW tn) 46.5% 43.2% 46.3% 40.3% Pen, rate 2 7.7 7.3 6.8 7.9 Non-auto 17.7 19.1 21,9 22.5 Auto 2017 2018 2019 H1 2020 Asset Quality 2.0% 2,1% 1.9% 1.7% 30+%DQ® Prime mix 44.7% 51.4% 58.2% 62.9% in volume 2017 2018 2019 H1 2020 Profits (KRW bn) 1.5% 1.4% 1.4% 0.9% Bad debt expense ratio 401 415 460 249 IBT 2017 2018 2019 H1 2020 4 Treasury Liquidity (KRW tn) - Funding: Utilized bank loan and ABS during market crunch in early COVID19 and issued offshore green bond 154.2% 134.8% 126.0% 134.0% ALMⓇ - Liquidity: Increased focusing on cash (6 Months Coverage 110% → 120%) 2.0 1.7 1.6 1.9 Cash Rating (domestic): Standalone rating stable at AAO 3.3 3.5 3.9 3.7 Credit line with excellent fundamentals 2017 2018 2019 H1 2020 ①Residual value ② Penetration rate ③Delinquency ratio P-loan and mortgage ⑤Asset Liability Management 37 HYUNDAI
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