際際滷

際際滷Share a Scribd company logo

1Q23_EN.pdf

I
irhcs

- HMG achieved record quarterly performance from global sales growth and higher ASP model mix, with global car sales up 0.2% YoY to 18.5 million units. - HMG maintained prime auto finance asset portfolio based on strong cooperation, with financial assets growing 4.5% YoY to KRW 33 trillion. - Profitability was defended with captive lease-led revenue growth and pre-emptive risk management, though equity method income decreased due to one-off HCBE impairment cost.

1 of 10
Download to read offline
1Q 2023 EARNINGS RELEASE
Disclaimer This presentation and its contents have been prepared by Hyundai Capital Services, Inc. (HCS or the Company) solely for information purposes, and may not be reproduced, published, redistributed, or transferred, directly or indirectly to any other person, in whole or in part, for any purpose. The Company has not taken measures to independently verify data contained in this material. No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained herein. This presentation shall not be construed as legal, tax, investment, or other advice. Financial statements in this document have been prepared in accordance with K-IFRS. Other additional contents such as market or industry information have been sourced internally or from various associations. The data contained in this presentation is current as of the date hereof, but the Company shall not be liable for any updates or verification of the contents thereafter. Certain information and statements in this presentation contain estimates and other forward-looking statements which should be approached with caution. The Company shall not be responsible for any losses or damages incurred based on these forward- looking statements.
1.9 3.6 71.1% 73.5% 73.3% 46.6% 52.4% 56.8% 56.0% 58.2% 65.0% 1,589 1,791 1Q22 1Q23 HMC KIA HMG Domestic Car Sales HMG Global Car Sales Record-High Quarterly Performance from Global Sales Growth and Higher ASP Model Mix 18,521 18,564 1Q22 1Q23 (K units) HMG Global Car Sales Global 0.2% North Americas +27.6% Europe +10.4% Korea +21.5% 12.7% Operating income Operating - margin Revenues (TN KRW) HMG HMC/KIA Business Performance Report, Wholesale HMC North Americas, KIA America HMC Europe, KIA Western Europe HMC SUV+Genesis/KIA RV 1 M/S (K units) HMC KIA HMC High ASP Models KIA 274 395 278 333 504 307 553 535 542 788 727 688 2020 2021 2022 7 77.6% 122 142 152 191 1Q22 1Q23 57.2% 57.8% 61.3% 66.1% 6.4% 9.5% 8.8% 12.1% 1,341 1,262 1,230 274 333 30 38 18 24 1.6 2.9 1Q22 1Q23 1Q22 1Q23 Despite continued external uncertainties, global sales have grown significantly as a result of improved parts supply and large backorders Increased production led to growth in domestic car sales and higher M/S Enhanced profitability due to increased portion of high ASP models
2.2 2.3 1.9 1.6 3.5 3.6 3.4 3.2 0.4 0.7 1.6 1.5 0.4 0.4 0.3 0.3 6.5 TN 7.0 TN 7.2 TN 6.5 TN 2020 2021 2022 1Q23 Non-Auto Auto NICE CB Grades 1~4 1H21 Credit score 780 and above (21 credit score scheme in place) 78.9% 77.6% 78.3% 80.2% Auto % HMG sales (K units) 1,341 1,262 1,230 333 X-sell % Prime % New cars: Asset growth from incremental vehicle production and sales Lease: Continued growth from competitive product lineup focused on high ASP models P-Loan: Gradual decline in asset size (4.7% of total financial assets) PF: Slight decline in asset size (4.5% of total financial assets) New car Lease Used Car P-Loan Mortgage PF Others Maintaining Prime Auto Finance Asset Portfolio Based on Strong Cooperation with HMG Asset 2 65.7% 62.9% 62.3% 70.2% 86.5% 87.5% 91.3% 87.0% 15.5 14.8 15.8 16.2 6.1 6.7 7.6 7.7 2.7 2.8 2.6 2.6 24.2 TN 24.3 TN 26.1 TN 26.5 TN 2020 2021 2022 1Q23
3 , Excluding FX and derivatives impact Reflecting 40.5 BN KRW of equity method losses by impairment assessment of HCBE after acquisition of shares in Allane Net income / Average Balance of Financial Assets Summary of Financial Statements Stable growth in operating revenue led by auto finance assets Financial assets growth of 4.5% YoY from enhanced competitiveness in loan products Lease revenue growth of 47.3% YoY from increased demand for high ASP models Ensuring sound asset quality from pre-emptive risk mgmt. Maintained 30+ delinquency at lower 1% level, despite increase in bad debt amidst concerns for economic slowdown Defending Profitability with Captive Lease-led Revenue Growth and Pre-emptive Risk Management P&L 2021 2022 1Q22 1Q23 YoY Financial Assets 31.3 TN 33.3 TN 31.6 TN 33.0 TN 4.5% (BN KRW) Operating Revenue 2,941.2 3,787.0 768.8 1,053.2 37.0% Operating Expense 2,469.8 3,311.8 625.9 954.7 52.5% Bad Debt 139.5 198.3 31.7 66.4 109.1% SG&A 620.2 676.0 152.7 164.0 7.4% Operating Income 486.1 474.5 136.2 96.8 -28.9% Non-operating Income 89.1 108.8 27.2 -11.3 -141.3% Equity Method Income 71.5 103.8 25.0 -13.4 -153.7% IBT 575.2 583.3 163.4 85.5 -47.7% Net Income 432.6 437.1 124.8 65.0 -47.9% ROA 1.4% 1.4% 1.6% 0.8% -0.8%p 30+ % 1.89% 1.48% 0.94% 1.04% 1.12% 2019 2020 2021 2022 1Q23 Equity method income decreased due to one-off cost from impairment assessment of a global entity Equity method income growth of 8.5% YoY eliminating HCBE impairment loss
4 Asset Leverage (Asset/Equity) Regulatory Reserve Coverage Domestic Bonds 57% Overseas Bonds 17% ABS 15% Bank 8% Others 3% Total Debt Balance 31.9 TN Provision Regulatory reserve coverage kept above government guideline (100%) Capital Adequacy No dividend payout in 21~22 Funding Maintaining diversified funding portfolio Liquidity Conservative internal guideline in place for liquidity management Key Index Solid Financial Position Maintained Within Regulatory Guidelines Index 120.7% 123.4% 129.4% 129.3% 2020 2021 2022 1Q23 7.6x 7.2x 7.4x 7.6x 2020 2021 2022 1Q23 Guideline 2021 1Q23 6M Coverage 100% 108% 144% ALM 100% 120% 125%
APPENDIX
Consolidated Statement of Financial Position Consolidated Income Statement , Excluding FX and derivatives effect (BN KRW) 2020 2021 2022 1Q23 Operating Revenue 2,834.3 2,941.2 3,787.0 1,053.2 Loan income 807.2 792.6 920.0 239.4 Instalment income 624.9 609.9 629.2 191.2 Lease income 1,137.6 1,359.7 2,051.4 553.5 Gain on sales of loan receivables 96.7 8.0 24.3 4.1 Others 167.9 171.0 162.1 65.0 Operating Expense 2,438.6 2,469.8 3,311.8 954.7 Interest expense 588.4 557.7 711.8 254.9 Lease expense 843.5 1,066.9 1670.0 449.2 Bad debt expense 271.0 139.5 198.3 66.4 Loss on sales of loan receivables 4.5 0.1 2.7 0.6 SG&A 633.3 620.2 676.0 164.0 Others 97.9 85.4 53.0 19.6 Operating Income 397.9 486.1 474.5 96.8 Non-operating Income 79.1 89.1 108.8 -11.3 Equity method income 67.7 71.5 103.8 -13.4 IBT 477.0 575.2 583.3 85.5 Net Income 348.6 432.6 437.1 65.0 (BN KRW) 2020 2021 2022 1Q23 Assets 33,683.3 34,917.1 38,647.5 39,989.4 Cash and deposit 1,688.0 1,673.9 2,958.9 4,450.9 Securities 1,343.0 1,505.7 1,757.3 1,809.4 Loan receivables 9,212.4 10,118.0 9,942.9 9,200.3 Instalment assets 14,523.4 13,752.1 14,720.8 15,167.7 Lease receivables 2,407.1 2,108.3 2,044.9 2,002.8 Lease assets 3,621.7 4,559.0 5,538.1 5,625.0 Tangible assets 201.8 196.8 209.3 206.1 Others 685.9 1,003.3 1,475.3 1,527.3 Liabilities 28,951.2 29,710.3 33,017.8 34,295.5 Borrowings 27,339.6 28,519.1 31,399.2 32,644.0 Others 1,611.6 1,191.3 1,618.6 1,651.5 Equity 4,732.1 5,206.7 5,629.7 5,693.9 Capital 496.5 496.5 496.5 496.5 Capital surplus 388.6 388.6 388.6 388.6 Retained earnings 3,888.0 4,228.8 4,665.9 4,730.9 Others -41.0 92.8 78.7 77.9 1. Financial Statements
(BN KRW) 2020 2021 2022 1Q23 Asset Quality 30+ Delinquency 1.48% 0.94% 1.04% 1.12% Substandard and below asset ratio 2.7% 2.2% 2.2% 2.3% Total provision /30+ receivables 203.1% 275.8% 250.2% 243.3% Leverage 7.6x 7.2x 7.4x 7.6x Total assets 33,359.9 34,412.2 37,977.3 39,251.3 Total capital (previous quarter) 4,411.6 4,780.2 5,149.0 5,178.9 Debt Balance 27,568.1 28,209.0 30,818.0 31,940.6 Liquidity 5,024.3 4,927.5 6,958.1 8,330.1 Cash 1,666.2 1,650.0 2,925.5 4,411.4 Credit Line 3,358.1 3,277.5 4,032.6 3,918.6 (BN KRW) 2020 2021 2022 1Q23 Financial Assets 30,732.3 31,340.7 33,271.6 32,995.3 Auto 24,238.5 24,322.6 26,061.3 26,454.5 New car 15,521.9 14,790.8 15,801.0 16,176.0 Lease/rent 6,071.6 6,736.1 7,641.4 7,686.4 Used car 2,645.0 2,795.7 2,618.8 2,592.1 Non-Auto 6,493.8 7,018.2 7,210.4 6,540.8 P-Loan 2,175.0 2,263.2 1,874.9 1,561.0 Mortgage 3,465.7 3,640.0 3,415.9 3,180.7 PF 407.2 707.1 1,571.3 1,483.9 Others 446.0 407.8 348.3 315.2 , Based on separate financial statements , Based on managerial accounting 2. Key Figures
Strategy Highlights Continued asset growth from strong car sales and incremental pen. Efforts to defend profitability through cost efficiency, amidst shrinking assets from slowing HMG sales Asset growth from incremental EV sales but profitability down due to increased bad debt expense Despite pen. and asset growth, profit decreased due to rising funding cost in high interest environment Asset growth from HMG co-marketing, and continued efforts for stable profitability following turnaround Volume and profit growth continued via portfolio diversification Financial Assets (BN) [USD] [RMB] [GBP] [CAD] [EUR] [BRL] IBT (MN) HCA US BHAF China HCCA Canada HCBE Germany HCUK UK BHCB Brazil HCS provides management guidance for HCA. HCA shareholding structure: Hyundai Motor (HMA) 80%, Kia (KUS) 20% Based on local GAAP / Based on IFRS for HCBE, BHCB 3. Global Hyundai Capital 46.7 48.2 49.5 2021 2022 1Q23 23.2 14.9 13.3 2021 2022 1Q23 2.7 3.1 3.3 2021 2022 1Q23 4.9 6.4 6.8 2021 2022 1Q23 3.3 4.3 4.7 2021 2022 1Q23 4.1 4.8 4.9 2021 2022 1Q23 7 21 5 2021 2022 1Q23 1,035 647 139 2021 2022 1Q23 691 615 133 2021 2022 1Q23 87 75 15 2021 2022 1Q23 72 116 10 2021 2022 1Q23 96 141 50 2021 2022 1Q23

More Related Content

1Q23_EN.pdf

  • 2. Disclaimer This presentation and its contents have been prepared by Hyundai Capital Services, Inc. (HCS or the Company) solely for information purposes, and may not be reproduced, published, redistributed, or transferred, directly or indirectly to any other person, in whole or in part, for any purpose. The Company has not taken measures to independently verify data contained in this material. No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained herein. This presentation shall not be construed as legal, tax, investment, or other advice. Financial statements in this document have been prepared in accordance with K-IFRS. Other additional contents such as market or industry information have been sourced internally or from various associations. The data contained in this presentation is current as of the date hereof, but the Company shall not be liable for any updates or verification of the contents thereafter. Certain information and statements in this presentation contain estimates and other forward-looking statements which should be approached with caution. The Company shall not be responsible for any losses or damages incurred based on these forward- looking statements.
  • 3. 1.9 3.6 71.1% 73.5% 73.3% 46.6% 52.4% 56.8% 56.0% 58.2% 65.0% 1,589 1,791 1Q22 1Q23 HMC KIA HMG Domestic Car Sales HMG Global Car Sales Record-High Quarterly Performance from Global Sales Growth and Higher ASP Model Mix 18,521 18,564 1Q22 1Q23 (K units) HMG Global Car Sales Global 0.2% North Americas +27.6% Europe +10.4% Korea +21.5% 12.7% Operating income Operating - margin Revenues (TN KRW) HMG HMC/KIA Business Performance Report, Wholesale HMC North Americas, KIA America HMC Europe, KIA Western Europe HMC SUV+Genesis/KIA RV 1 M/S (K units) HMC KIA HMC High ASP Models KIA 274 395 278 333 504 307 553 535 542 788 727 688 2020 2021 2022 7 77.6% 122 142 152 191 1Q22 1Q23 57.2% 57.8% 61.3% 66.1% 6.4% 9.5% 8.8% 12.1% 1,341 1,262 1,230 274 333 30 38 18 24 1.6 2.9 1Q22 1Q23 1Q22 1Q23 Despite continued external uncertainties, global sales have grown significantly as a result of improved parts supply and large backorders Increased production led to growth in domestic car sales and higher M/S Enhanced profitability due to increased portion of high ASP models
  • 4. 2.2 2.3 1.9 1.6 3.5 3.6 3.4 3.2 0.4 0.7 1.6 1.5 0.4 0.4 0.3 0.3 6.5 TN 7.0 TN 7.2 TN 6.5 TN 2020 2021 2022 1Q23 Non-Auto Auto NICE CB Grades 1~4 1H21 Credit score 780 and above (21 credit score scheme in place) 78.9% 77.6% 78.3% 80.2% Auto % HMG sales (K units) 1,341 1,262 1,230 333 X-sell % Prime % New cars: Asset growth from incremental vehicle production and sales Lease: Continued growth from competitive product lineup focused on high ASP models P-Loan: Gradual decline in asset size (4.7% of total financial assets) PF: Slight decline in asset size (4.5% of total financial assets) New car Lease Used Car P-Loan Mortgage PF Others Maintaining Prime Auto Finance Asset Portfolio Based on Strong Cooperation with HMG Asset 2 65.7% 62.9% 62.3% 70.2% 86.5% 87.5% 91.3% 87.0% 15.5 14.8 15.8 16.2 6.1 6.7 7.6 7.7 2.7 2.8 2.6 2.6 24.2 TN 24.3 TN 26.1 TN 26.5 TN 2020 2021 2022 1Q23
  • 5. 3 , Excluding FX and derivatives impact Reflecting 40.5 BN KRW of equity method losses by impairment assessment of HCBE after acquisition of shares in Allane Net income / Average Balance of Financial Assets Summary of Financial Statements Stable growth in operating revenue led by auto finance assets Financial assets growth of 4.5% YoY from enhanced competitiveness in loan products Lease revenue growth of 47.3% YoY from increased demand for high ASP models Ensuring sound asset quality from pre-emptive risk mgmt. Maintained 30+ delinquency at lower 1% level, despite increase in bad debt amidst concerns for economic slowdown Defending Profitability with Captive Lease-led Revenue Growth and Pre-emptive Risk Management P&L 2021 2022 1Q22 1Q23 YoY Financial Assets 31.3 TN 33.3 TN 31.6 TN 33.0 TN 4.5% (BN KRW) Operating Revenue 2,941.2 3,787.0 768.8 1,053.2 37.0% Operating Expense 2,469.8 3,311.8 625.9 954.7 52.5% Bad Debt 139.5 198.3 31.7 66.4 109.1% SG&A 620.2 676.0 152.7 164.0 7.4% Operating Income 486.1 474.5 136.2 96.8 -28.9% Non-operating Income 89.1 108.8 27.2 -11.3 -141.3% Equity Method Income 71.5 103.8 25.0 -13.4 -153.7% IBT 575.2 583.3 163.4 85.5 -47.7% Net Income 432.6 437.1 124.8 65.0 -47.9% ROA 1.4% 1.4% 1.6% 0.8% -0.8%p 30+ % 1.89% 1.48% 0.94% 1.04% 1.12% 2019 2020 2021 2022 1Q23 Equity method income decreased due to one-off cost from impairment assessment of a global entity Equity method income growth of 8.5% YoY eliminating HCBE impairment loss
  • 6. 4 Asset Leverage (Asset/Equity) Regulatory Reserve Coverage Domestic Bonds 57% Overseas Bonds 17% ABS 15% Bank 8% Others 3% Total Debt Balance 31.9 TN Provision Regulatory reserve coverage kept above government guideline (100%) Capital Adequacy No dividend payout in 21~22 Funding Maintaining diversified funding portfolio Liquidity Conservative internal guideline in place for liquidity management Key Index Solid Financial Position Maintained Within Regulatory Guidelines Index 120.7% 123.4% 129.4% 129.3% 2020 2021 2022 1Q23 7.6x 7.2x 7.4x 7.6x 2020 2021 2022 1Q23 Guideline 2021 1Q23 6M Coverage 100% 108% 144% ALM 100% 120% 125%
  • 8. Consolidated Statement of Financial Position Consolidated Income Statement , Excluding FX and derivatives effect (BN KRW) 2020 2021 2022 1Q23 Operating Revenue 2,834.3 2,941.2 3,787.0 1,053.2 Loan income 807.2 792.6 920.0 239.4 Instalment income 624.9 609.9 629.2 191.2 Lease income 1,137.6 1,359.7 2,051.4 553.5 Gain on sales of loan receivables 96.7 8.0 24.3 4.1 Others 167.9 171.0 162.1 65.0 Operating Expense 2,438.6 2,469.8 3,311.8 954.7 Interest expense 588.4 557.7 711.8 254.9 Lease expense 843.5 1,066.9 1670.0 449.2 Bad debt expense 271.0 139.5 198.3 66.4 Loss on sales of loan receivables 4.5 0.1 2.7 0.6 SG&A 633.3 620.2 676.0 164.0 Others 97.9 85.4 53.0 19.6 Operating Income 397.9 486.1 474.5 96.8 Non-operating Income 79.1 89.1 108.8 -11.3 Equity method income 67.7 71.5 103.8 -13.4 IBT 477.0 575.2 583.3 85.5 Net Income 348.6 432.6 437.1 65.0 (BN KRW) 2020 2021 2022 1Q23 Assets 33,683.3 34,917.1 38,647.5 39,989.4 Cash and deposit 1,688.0 1,673.9 2,958.9 4,450.9 Securities 1,343.0 1,505.7 1,757.3 1,809.4 Loan receivables 9,212.4 10,118.0 9,942.9 9,200.3 Instalment assets 14,523.4 13,752.1 14,720.8 15,167.7 Lease receivables 2,407.1 2,108.3 2,044.9 2,002.8 Lease assets 3,621.7 4,559.0 5,538.1 5,625.0 Tangible assets 201.8 196.8 209.3 206.1 Others 685.9 1,003.3 1,475.3 1,527.3 Liabilities 28,951.2 29,710.3 33,017.8 34,295.5 Borrowings 27,339.6 28,519.1 31,399.2 32,644.0 Others 1,611.6 1,191.3 1,618.6 1,651.5 Equity 4,732.1 5,206.7 5,629.7 5,693.9 Capital 496.5 496.5 496.5 496.5 Capital surplus 388.6 388.6 388.6 388.6 Retained earnings 3,888.0 4,228.8 4,665.9 4,730.9 Others -41.0 92.8 78.7 77.9 1. Financial Statements
  • 9. (BN KRW) 2020 2021 2022 1Q23 Asset Quality 30+ Delinquency 1.48% 0.94% 1.04% 1.12% Substandard and below asset ratio 2.7% 2.2% 2.2% 2.3% Total provision /30+ receivables 203.1% 275.8% 250.2% 243.3% Leverage 7.6x 7.2x 7.4x 7.6x Total assets 33,359.9 34,412.2 37,977.3 39,251.3 Total capital (previous quarter) 4,411.6 4,780.2 5,149.0 5,178.9 Debt Balance 27,568.1 28,209.0 30,818.0 31,940.6 Liquidity 5,024.3 4,927.5 6,958.1 8,330.1 Cash 1,666.2 1,650.0 2,925.5 4,411.4 Credit Line 3,358.1 3,277.5 4,032.6 3,918.6 (BN KRW) 2020 2021 2022 1Q23 Financial Assets 30,732.3 31,340.7 33,271.6 32,995.3 Auto 24,238.5 24,322.6 26,061.3 26,454.5 New car 15,521.9 14,790.8 15,801.0 16,176.0 Lease/rent 6,071.6 6,736.1 7,641.4 7,686.4 Used car 2,645.0 2,795.7 2,618.8 2,592.1 Non-Auto 6,493.8 7,018.2 7,210.4 6,540.8 P-Loan 2,175.0 2,263.2 1,874.9 1,561.0 Mortgage 3,465.7 3,640.0 3,415.9 3,180.7 PF 407.2 707.1 1,571.3 1,483.9 Others 446.0 407.8 348.3 315.2 , Based on separate financial statements , Based on managerial accounting 2. Key Figures
  • 10. Strategy Highlights Continued asset growth from strong car sales and incremental pen. Efforts to defend profitability through cost efficiency, amidst shrinking assets from slowing HMG sales Asset growth from incremental EV sales but profitability down due to increased bad debt expense Despite pen. and asset growth, profit decreased due to rising funding cost in high interest environment Asset growth from HMG co-marketing, and continued efforts for stable profitability following turnaround Volume and profit growth continued via portfolio diversification Financial Assets (BN) [USD] [RMB] [GBP] [CAD] [EUR] [BRL] IBT (MN) HCA US BHAF China HCCA Canada HCBE Germany HCUK UK BHCB Brazil HCS provides management guidance for HCA. HCA shareholding structure: Hyundai Motor (HMA) 80%, Kia (KUS) 20% Based on local GAAP / Based on IFRS for HCBE, BHCB 3. Global Hyundai Capital 46.7 48.2 49.5 2021 2022 1Q23 23.2 14.9 13.3 2021 2022 1Q23 2.7 3.1 3.3 2021 2022 1Q23 4.9 6.4 6.8 2021 2022 1Q23 3.3 4.3 4.7 2021 2022 1Q23 4.1 4.8 4.9 2021 2022 1Q23 7 21 5 2021 2022 1Q23 1,035 647 139 2021 2022 1Q23 691 615 133 2021 2022 1Q23 87 75 15 2021 2022 1Q23 72 116 10 2021 2022 1Q23 96 141 50 2021 2022 1Q23