Hyundai Motor Company Q2 2021 Business Results
Transcript of Hyundai Motor Company Q2 2021 Business Results
Jul 22, 2021
Hyundai Motor CompanyQ2 2021 Business Results
Cautionary Statement with Respect to Forward-Looking Statements
1
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.
Sales Summary
Table of Contents
P. 3 ~ 5
P. 6 ~ 12Financial Summary
Appendix P. 13 ~ 16
Sales Summary
Global Wholesale / Retail Sales P. 4
Sales Analysis P. 5
Q2 2020 Q2 2021YoY
53.2 46.6 - 12.5%
395.2 441.3 +49.5%
204.8 340.6 +66.3%
482.8 456.9 - 5.4%
15.4 64.8 +320.8%
4
1,436.0 2,021.7 +40.8%
148
71
+109.3% +126.6%
158
70
95118
-19.7% - 27.8%
92
127
China
201226
201226
-11.0%
226
135
300
174
+73.1%+67.6%
114
28
+306.0%
9842
+133.7%
5725 5023
+122.7%+121.3%
7822
7628
+246.8% +168.8%
11279
134
77
+74.0%+41.8% 1,031
704
+44.7%
1,109
767
+46.5%
934
585
1,018
640
+59.5% +59.1%
-11.0%
Q2 2020 Wholesale (Thousand units)
Q2 2021 Wholesale
Q2 2020 Retail Sales
Q2 2021 Retail Sales
Global Wholesale / Retail Sales
(10K units)Global Demand1
HMC Global Sales4
1 US and Europe are based on retail sales, China ex-Factory, India wholesale2 AMEA, Asia-Pacific, Other regions, CV(ex. Korea CV)3 Western Europe excluding CV4 Wholesale including CV
Europe
KoreaN. America
IndiaRussia
S. America
Others2Wholesale / Retail Sales
Wholesale / Retail Sales
(ex. China)
Korea
US
Europe3
China
India
Global
5
34.6%
6.2%
40.1%
6.0%
Q2 2020 Q2 2021
704
1,031
2.7%4.8%
25.7%
12.2%
5.4%
40.8%
8.4%
7.0%
7.3%
19.9%
6.9%
5.3%
46.6%
7.0%
“Strong sales of eco friendly vehicles and SUVs”
➢ Concerns toward business performance remain due to chip supply issues,
increasing raw material prices and reduced working days
➢ Strengthen global EV sales via continuous sales volume increase of Ioniq 5
in addition to entering new global markets
➢ Continued mix improvement with high-end vehicles by launching
JW, first dedicated Genesis EV model, all new G90 and Santa Cruz in 2H
∙ Scale up of sales in domestic and Europe in Q2 '21
∙ 10K units sold in 1H, backlog of 30K as of end of Q2
∙ Sales in 2H ’21 to be boosted along with improvement
in chip shortage issue
· Ioniq 5
∙ JW, Santa Cruz, small SUV scheduled to be launched in 2H
∙ Strengthen EV Line-up by launching G80 EV and JW
∙ Enter pick-up truck market in US by launching Santa Cruz
∙ Strong sales of new Tucson (128k units in Q2 ’21)
∙ Continued sales increase of eco friendly vehicles by
launching Tucson HEV and PHEV models
∙ Line-up expansion of eco friendly vehicles with the
launch of Santa Fe HEV and PHEV· Line-up in 2H
JW
Santa Cruz
Sales Analysis
Sales by Segment(Thousand units)
Model
Key Growth Factors
※ GV70, GV80 are included in Genesis, when included in SUV, the portion is 49.4%.
※ Based on Wholesale.
A
B
C
D
Genesis
SUV
Others
Outlook
· Tucson
Financial Summary
Financial Summary P. 7
Revenue by Divisions P. 8
Revenue Analysis P. 9
Operating Income Breakdown P. 10
Operating Income Analysis P. 11
Non-operating Income & Net Income P. 12
Q2 2020 Q1 2021 Q2 2021 YoY QoQ
Revenue 21,859 27,391 30,326 +38.7% +10.7%
Cost of Good Sold 18,147 22,354 24, 595 +35.5% +10.0%
Gross Profit 3,712 5,037 5,731 +54.4% +13.8%
Margin (%) 17.0% 18.4% 18.9%
SG&A 3,122 3,380 3,845 +23.2% +13.8%
Operating Income 590 1,657 1,886 +219.5% +13.8%
Margin (%) 2.7% 6.0% 6.2%
Non-operating Income
6 390 616 +10,261.2% +58.1%
Income before Tax 596 2,046 2,502 +319.6% +22.3%
Tax 219 524 519 +137.2% -0.9%
Net Income 377 1,522 1,983 +425.5% +30.2%
7
Financial Summary
(Billion KRW)
16,057
24,674
Q2 2020 Q2 2021
4,342
4,038
Q2 2020 Q2 2021
1,461 1,614
Q2 2020 Q2 2021
Sales volume increase Decline in off lease vehicle sales Sales increase
8
+8,617(+53.7%)
+153(+10.5%)
-304(-7.0%)
Revenue by Division
Automotive Finance Others(Billion KRW)
Q2 2020 Q2 2021
21,859
30,326
9
+9,823+9,823
+8,467(+38.7%)
-1,108
-151-97
Revenue Analysis(Billion KRW)
Volume
F/X
Others
Product mix and etc.
△1999
42
96 272
554 295
1,137
Q2 2020 Q2 2021
590
1,886
Q2 2021
Q2 2020 83.0%
81.1%
10
+1,296(+219.5%)
837 930
312 337 518
887 744
974 711
717
Q2 2020 Q2 2021
3,845
3,122
+723(+23.2%)
Operating Income Breakdown
Operating Income by Division(Billion KRW)
COGS Ratio
SG&A
Salary
Marketing
Warranties
Research
Others 1
Automotive
Finance
Others
Adjustment
1Commission Fees, depreciation, etc.
11
Q2 2020 Q2 2021
590
1,886
+1,748
+1,296(+219.5%)
+282
-436
-58
+282
OPM(2.7%)
(3.4%)
OPM(6.2%)
-240
Operating Income Analysis
(Billion KRW)
Volume
Others
F/X
Product mix and etc.
FinanceDivision
-51
374
-35
43
92
199
Q2 2020 Q2 2021
616
227
1,762
150
221
Q2 2020 Q2 2021
377
1,983
12
+610(+10,261.2%)
+1,606(+425.5%)
6
Non-operating Income & Net Income
Non-operating Income(Billion KRW)
Net Income
Finance
Equity Income
Others
Non-controlling
Controlling
Appendix
P. 14
P. 15
P. 16
Statement of Income
Statement of Financial Position
Statement of Cash Flows
(Billion KRW) Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 YoY QoQ
Revenue 21,859 27,576 29,243 27,391 30,326 +38.7% +10.7%
Gross Profit 3,712 5,125 5,379 5,037 5,731 +54.4% +13.8%
Margin (%) 17.0 18.6 18.4 18.4 18.9
SG&A 3,122 5,439 4,125 3,380 3,845 +23.2% +13.8%
Portion (%) 14.3 19.7 14.1 12.3 12.7
Operating Income 590 -314 1,254 1,657 1,886 +219.5% +13.8%
Margin (%) 2.7 -1.1 4.3 6.0 6.2
Income before tax 596 -362 1,135 2,046 2,502 +319.6% +22.3%
Margin (%) 2.7 -1.3 3.9 7.5 8.3
Net Income 377 -189 1,183 1,522 1,983 +425.5% +30.2%
Margin (%) 1.7 -0.7 4.0 5.6 6.5
D&A1 1,088 1,115 1,120 1,137 1,126
EBITDA 1,678 801 2,374 2,793 3,012
14
Statement of Income
1 Includes lease amortization under IFRS 16
(Billion KRW) Q4 2020 Q2 2021 Diff. % change
Asset 209,344 222,820 +13,476 +6.4%
Current Asset(a) 83,686 85,513 +1,827 +2.2%
Liabilities(b) 133,003 142,711 +9,708 +7.3%
Current Liability(c) 59,460 58,126 -1,334 -2.2%
Debt(d) 91,407 100,753 +9,346 +10.2%
Provision) 10,371 10,828 +457 +4.4%
Equity(e) 76,341 80,109 +3,768 +4.9%
Capital Stock 1,489 1,489 - -
Capital Surplus 4,190 4,045 -145 -3.5%
Retained Earnings 68,912 71,333 +2,421 +3.5%
Current Ratio(a/c) 140.7% 147.1%
Liability to Equity(b/e) 174.2% 178.1%
Debt to Equity(d/e) 119.7% 125.8%
15
Statement of Financial Position
(Billion KRW) Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021
Beginning 10,374 10,884 12,307 9,862 11,035
Net Income 377 -189 1,183 1,522 1,983
Depreciation 676 703 708 700 704
Amortization 363 363 363 386 375
Acquisition of Tangible -1,062 -1,030 -1,468 -1,093 -859
Acquisition of Intangible -397 -417 -556 -275 -294
Dividends paid -890 - - - -926
Others 1,442 1,993 -2,675 -67 -990
Ending 10,884 12,307 9,862 11,035 11,027
16
Statement of Cash Flows
Thank you
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