Hyundai Commercial's financial results have remained solid despite slowing profit growth. Revenue increased 3.3% in the first half of 2013 driven by growth in non-auto profits such as leasing. Expenses also increased due to hiring experts and increased regulation. Asset quality remains excellent with delinquency rates decreasing and reserves exceeding requirements. The company aims to enhance its non-auto business and maintain a conservative financial profile.
5. 4
Solid Capital Base
Leverage Trend & Capital Adequacy Ratio Highlight
14.5x
9.9x
11.5x
12.1x
10.1%
14.6%
11.7%
10.5%
2010 2011 2012 1H13
Capital Adequacy RatioLeverage Trend
• Leverage increased and Capital adequacy
ratio decreased
- Natural change coming from asset growth
Strategic Direction
• Seek diverse leverage management policies
such as True-Sale ABS issuance
• Maintain Capital Adequacy Ratio above 10%
6. 5
Well Diversified Funding Portfolio
Funding Portfolio (KRW Bn)
Funding Plan in 2013
(KRW Bn) Sep Oct Nov Dec
Bond 110 - 40 100
Funding Strategy
• Long-term borrowings target > 60%
• ALM index target > 130%
• Cash held > 250 KRW Bn
2,4772,4772,4772,477
3,0273,0273,0273,027
3,4643,4643,4643,464
3,6893,6893,6893,689
2010 2011 2012 1H13
Bond Loan CP ABS
8.4%
2.7%
14.4%
74.5%
8.9%
6.1%
14.8%
70.2%
11.9%
4.6%
19.4%
64.1%
8.1%
13.0%
18.2%
60.7%
LongLongLongLong----TermTermTermTerm
BorrowingsBorrowingsBorrowingsBorrowings
61.5%61.5%61.5%61.5% 63.7%63.7%63.7%63.7% 61.8%61.8%61.8%61.8% 61.5%61.5%61.5%61.5%