Hyundai 2000 Annual Report Download

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H
YUNDAI
M
OTOR
C
OMPANY
2000
A
NNUAL
R
EPORT
FINANCIALHIGHLIGHTSPRESIDENT’SMESSAGEHISTORICALHIGHLIGHTSPROGRESSIVEMANAGEMENTRESEAR
CH&DEVELOPMENTPLANTS&PRODUCTIONMARKETING,SALES&SERVICENEWHORIZONSINTHECOMMUNITYTR
AINING,EDUCATION&WELFAREWORLDWIDEACTIVITIESLINE-UPFINANCIALSTATEMENTSFINANCIALHIGHLI
GHTSPRESIDENT’SMESSAGEHISTORICALHIGHLIGHTSPROGRESSIVEMANAGEMENTRESEARCH&DEVELOPMEN
TPLANTS&PRODUCTIONMARKETING,SALES&SERVICENEWHORIZONSINTHECOMMUNITYTRAINING,EDUCATIO
N&WELFAREWORLDWIDEACTIVITIESLINE-UPFINANCIALSTATEMENTSFINANCIALHIGHLIGHTSPRESIDENT’S
MESSAGEHISTORICALHIGHLIGHTSPROGRESSIVEMANAGEMENTRESEARCH&DEVELOPMENTPLANTS&PRODUC
DRIVING ISBELIEVING
www.hyundai-motor.com

Table of contents

  • Page 1
    ... ORLDWIDE A CTIVITIES L INE - UP F INANCIAL S TATEMENTS F INANCIAL H IGHLI GHTS P RESIDENT ' S M ESSAGE H ISTORICAL H IGHLIGHTS P ROGRESSIVE M ...ISTORICAL H IGHLIGHTS P ROGRESSIVE M ANAGEMENT R ESEARCH &D EVELOPMENT P LANTS &P RODUC H YUNDAI M OTOR C OMPANY ANNUAL REPORT 2000 www.hyundai-motor.com

  • Page 2
    ... 27 T S 16 • RESEARCH & DEVELOPMENT • FINANCIAL HIGHLIGHTS 6 • PRESIDENT'S MESSAGE 18 • PLANTS & PRODUCTION 10 • HISTORICAL HIGHLIGHTS 22 • MARKETING, SALES & SERVICE 14 • PROGRESSIVE MANAGEMENT 26 • NEW HORIZONS IN THE COMMUNITY • TRAINING, EDUCATION & WELFARE 28 • WORLDWIDE...

  • Page 3

  • Page 4
    ... Won in Billions 2000 Sales Net Income Total Assets , Shareholders Equity Earnings Per Share (£Ü , US$) Dividends Per Share (£Ü , US$) £Ü 18,231 668 17,968 7,623 3,103 600 1999 £Ü 14,245 414 16,456 7,193 3,577 500 1998 £Ü 8,698 - 33 11,185 3,190 896 50 U.S. Dollars in Millions 2000 $14,472...

  • Page 5
    ... management, visionary leadership and aggressive investment in the creation of advanced technology are some of the key elements which have helped build Hyundai Motor into Korea's largest automobile manufacturer with a network of sales and services outlets that spans the globe. At the dawn of the new...

  • Page 6
    Mong-Koo Chung Chairman & CEO

  • Page 7
    ... to international prominence were recognized in 2000 by the Automotive Hall of Fame which awarded Chairman Chung Mong-Koo with its Distinguished Service Citation. A watershed in the history of Korea's automotive industry, the award signals the U.S. auto industry's new respect for Hyundai Motor and...

  • Page 8
    ...off from the Hyundai Business Group in accordance with the agreement signed with the Korea Exchange Bank, our major creditor bank, on the enhancement of Hyundai Motor's financial health. In addition, the company relocated its head offices to Yangjae-dong, Seoul, a move that symbolizes our rebirth as...

  • Page 9
    ... company established Hyundai Motor Europe, a regional headquarters that will supervise its business activities throughout Europe, including the East European markets. Targetting the European customer, the company successfully developed a new diesel engine for application in passenger cars. Equipped...

  • Page 10

  • Page 11
    ... growth and made Hyundai one of the most admired and respected names in the business. To realize our ambition of becoming a global top five automaker by 2010, we have adopted the "Four Best" concept: Providing the best customer service, the best technology, the best quality and the best value.

  • Page 12
    H I S T O R I C A L H I G H L I G H T S

  • Page 13
    ... recorded major progress in its development of electric cars, hybrid powered cars and key automotive technologies including emissions reduction, safety and material recycling. On the international rally circuit, the Hyundai Elantra claimed the Asia Pacific Rally Championship in its class in the 1994...

  • Page 14
    ... Company. Following the success of the EF Sonata and Grandeur XG in 1998, Hyundai Motors Company unveiled its four latest models, the Centennial, New Accent, Coupe face-lift and Trajet. Trajet is Hyundai's first expression of the MPV concept, taking the company into new sectors of the world car...

  • Page 15
    ...-new Avante Lean Burn launched 2nd solar car Hyundai Sola-II developed European concept car Euro-I developed Logistic Center in Belgium opens for business Near-luxury Grandeur XG launched Grand opening for Chennai Plant in India Hyundai acquires Kia Motors 1989 V6 engine plant opened 1990 Sports...

  • Page 16
    P R O G R E S S I V E M A N A G E M E N T

  • Page 17
    ...business partners with greater opportunities for growth. Production lines at Hyundai's plant in Turkey will serve as a bridgehead for the company's advance into European markets In June 2000, Hyundai and DaimlerChrysler established a strategic alliance Hyundai Motor Company • 2000 Annual Report...

  • Page 18
    R E S E A R C H & D E V E L O P M E N T

  • Page 19
    ... lowemission, high-mileage ones engines. Alternative fuel technologies will play an increasingly important role in the company's future. Hyundai's fuel cell powered electric vehicle will enter mass production in 2005. A new concept takes shape with a 1:4 scale clay model We are expanding our use...

  • Page 20
    P L A N T S & P R O D U C T I O N

  • Page 21
    ... such as those in India comprising 500,000 units. On the heels of the launch of the Verna subcompact in 1999, Hyundai Motor reinforced its position as Korea's leading automaker in 2000 with the successful launch of the new Santa Fe SUV and Avante XD compact sedan. The Ulsan plant, which stands on...

  • Page 22

  • Page 23
    ..., managers and associates, we aim to provide a challenging and rewarding environment so that they can achieve their personal career goals. At the same time, we are fulfilling our obligations to our shareholders by creating value and maximizing returns on their investment. And as a good corporate...

  • Page 24
    The HCD-6 drew accolades at the Geneva Motor Show M A R K E T I N G , S A L E S & S E R V I C E

  • Page 25
    ... half of the year as the nation's economy stabilizes. Accordingly, the company has been stepping up efforts to boost sales by introducing new models such as the New EF Sonata and the Terracan SUV in order to equal last year's sales figures. As it grows more mature, the Korean market is moving into...

  • Page 26
    ... another base of operations in China in late 2000 in order to more effectively address the world's fastest growing and biggest potential market. Alongside these efforts to globalize its business, the company has been expanding its sports marketing activities including participation in a variety of...

  • Page 27
    ... Paris Motor Show signed a contract to become an official sponsor of the 2002 World Cup to be co-hosted by Korean and Japan and which is expected to significantly boost the Hyundai brand image worldwide. Product-wise, the company unveiled the new generation compact Avante XD and luxury Grandeur XG...

  • Page 28
    In Seoul, Hyundai was a proud sponsor of an exhibition from the Musée d' Orsay modern art collection NEW HORIZONS IN THE COMMUNITY

  • Page 29
    ...programs for our employees including post-graduate studies in order to stimulate innovation as well as enhance their capabilities and creativity to a global competitive level. Hyundai employees enjoy numerous benefits including membership in the company's health club Hyundai Motor Company • 2000...

  • Page 30
    W O R L D W I D E A C T I V I T Y

  • Page 31
    ...Malaysia Egypt Venezuela Pakistan Indonesia Name of Company HMI HAOS WGMC INOKOM PRIMA MAV DFML HIM Location Chennai Izmit Wuhan Kulim Cairo Barcelona Sujawal Jakarta Model Atoz Verna Verna Grace Grace Porter(1.5) Accent EF Sonata Accent Porter Atoz Accent Atoz Verna Trajet Avante Avante XG Galloper...

  • Page 32

  • Page 33
    ... dream of happiness and a better life for all. Reflecting on our 30 year-plus corporate history and 2000's solid business performance, Hyundai Motor stands on a solid foundation and is well poised to realize our company's goal of ranking as one of the world's top five vehicle manufacturers by 2010...

  • Page 34

  • Page 35
    ... - U P Passenger Cars Equus (Centennial) Dynasty Grandeur XG (XG) New EF Sonata (Sonata) Tiburon (Coupe) Avante XD (Elantra) Verna (Accent) Atoz (Atos) Galloper Santamo Starex (H-1) Lavita (Matrix) Aero Queen Trucks Porter (H-100 Truck) Libero (H-1 Truck) Porter Dump Truck Mighty II 3.5 Ton Cargo...

  • Page 36

  • Page 37
    F I N A N C I A L S T A T E M E N T S • Balance Sheets • Statements of Income • Statements of Appropriations of Retained Earnings • Cash Flow Statements • Notes to Financial Statements • Report of Independent Public Accountants

  • Page 38
    ..., less allowance for doubtful accounts of £Ü 14,511 million in 2000 and £Ü 22,736 million in 1999 Inventories (Notes 3 and 5) Advances and other Total current assets Non-current assets: Investment securities (Notes 4, 10 and 12) Property, plant and equipment, net of accumulated depreciation...

  • Page 39
    ...National Pension payments for employees of £Ü 100,093 million in 2000 and £Ü 119,600 million in 1999 and individual severance insurance deposits of £Ü 346,894 million in 2000 and £Ü 208,899 million in 1999 (Note 2) Accrued loss on valuation of derivatives (Note 2) Accrued product liabilities...

  • Page 40
    ...dollars (Note 2) (in thousands) 2000 Sales Cost of sales Gross profit Selling and administrative expenses (Note 22) Operating income Other expenses, net: Interest expense, net Foreign exchange loss (gain), net Gain on valuation of investments accounted for using the equity... part of these statements.

  • Page 41
    ... 130,984 131,291 369,761 $ 137,865 11,114 23,815 399,698 110,802 545,429 $ 156 The accompanying notes are an integral part of these statements 39 2000 Annual Report •Hyundai-Motor Company

  • Page 42
    ..., net Loss on disposal of investments, net Gain on valuation of investments accounted for using the equity method Amortization of discount on debentures Amortization of intangibles Amortization of development costs Provision for severance benefits Provision for warranties and product liability...

  • Page 43
    ...plant and equipment Proceeds from the sale of Motor Parts Division 41,833 446,422 3,934,579 Cash outflows from investing activities: Purchase of short-term financial instruments Acquisition...continued) 41 2000 Annual Report •Hyundai-Motor Company Repayment of short-term borrowings (4,638,965) (8,649,505)...

  • Page 44
    ... and 1999 Korean won (in millions) Translation into U. S. dollars (Note 2) (in thousands) 2000 Increase in cash for establishment of U.S. branch Decrease in cash due to the sale of Motor Parts Division Cash acquired through merger Net decrease in cash Cash, beginning of year Cash, end of year (89...

  • Page 45
    ... development), Hyundai Precision America Inc. (wholly-owned distributor of van trailers and equipment in the United States), Hyundai Motor India (wholly-owned production plant in India), Hyundai Motor Europe Parts (wholly-owned distributor of motor parts in Belgium), Hyundai Motor Japan R&D Center...

  • Page 46
    ... intended for use by those who are not informed about Korean accounting principles and practices. The U.S. dollar amounts presented in these financial statements were computed by translating the Korean won into U.S. dollars based on the Bank of Korea Basic Rate of £Ü 1,259.7 to US$1.00 at December...

  • Page 47
    ... impairment loss, and any excess is recorded as a capital adjustment. The lower of the acquisition cost of investments in treasury stock funds and the fair value of treasury stock included in a fund is accounted for as treasury stock in capital adjustments. Property, Plant and Equipment and Related...

  • Page 48
    ..., the Company and the employees each pay 4.5 percent of monthly pay. Accrued Warranties and Product Liabilities The Company generally provides the ultimate consumer a warranty with each product and accrues warranty expense at the time of sale based upon actual claims history. Actual warranty costs...

  • Page 49
    ... 2000 and 1999 Stock Options The Company computes total compensation expense to stock options, which are granted to employees and directors, by fair value method using the option-pricing model. The compensation expense has been accounted for as a charge to current operations and a credit to capital...

  • Page 50
    ... dividends on preferred stock and addition for the effect of expenses related to diluted securities on net income, by the weighted average number of common shares plus the dilutive potential common shares. The number of shares used in computing earnings per diluted share is 202,736,308 in 2000 and...

  • Page 51
    ... India Hyundai Motor America (*) Hyundai America Technical Center Inc. Hyundai Machine Tool Europe GmbH Hyundai Motor Japan Co. Hyundai Motor Poland Sp.zo.o. Hyundai Motor Europe Parts HMJ R&D Center Inc. Hyundai Precision America Inc. Hyundai Capital Service Inc. HAOSVT (Turkey) Korea Drive Train...

  • Page 52
    ... Company Hyundai Motor India Hyundai Motor America (*) Hyundai America Technical Center Inc. Hyundai Machine Tool Europe GmbH Hyundai Motor Europe Parts HMJ R&D Center Inc. Hyundai Capital Service Inc. HAOSVT (Turkey) Hyundai Research Institute Hyundai Unicorns Co., Ltd. Kia Motor Corporation...

  • Page 53
    ... Affiliated Company Jin Heung Mutual Savings & Finance Co., Ltd. Comet Savings & Finance Co., Ltd. Inchon Iron & Steel Co., Ltd. Hyundai Corporation Hyundai Information Technology Co., Ltd. Hyundai Merchant Marine Co., Ltd. Cho Hung Bank Hyundai Heavy Industries Co., Ltd. Treasury Stock Funds Stock...

  • Page 54
    ...Ltd. Hyundai Technology Investment Co., Ltd. Hyundai Unicorns Co., Ltd. Hyundai Research Institute Kihyup Finance Hyundai Motor Deutschland GmbH Yonhap Capital Co., Ltd. Ulsan Environmental Development Internet Hankyoreh Inc. Hyundai Oil refinery Co., ltd. Hyundai Asan Corporation U.S Electrical Inc...

  • Page 55
    ...Service Co., Ltd. (*) Korea Rolling Stock Co.(*) Korea Drive Train System(*) Jinil MVC Co., Ltd. Industri Otomotif Komersial Hyundai Petro-Chemical Co., Ltd. Hyundai Technology Investment Co., Ltd. Kihyup Finance Hyundai Motor Deutschland GmbH Yonhap Capital Co., Ltd. Ulsan Environmental Development...

  • Page 56
    ..., plant and equipment as of December 31, 2000 and 1999 consist of the following: Korean won (in millions) U.S. dollars (Note 2) (in thousands) 2000 Buildings and structures Machinery and equipment Vehicles Dies and moulds Tools Other equipment Less: Accumulated depreciation Land Construction in...

  • Page 57
    ... primarily of bank loans and export financing loans with annual interest rates ranging from 6.15 percent to 11.5 percent. These borrowings are secured by certain bank deposits, investment securities and property, plant and equipment (See Note 6). 55 2000 Annual Report •Hyundai-Motor Company 10...

  • Page 58
    ...th issue (face value US $50,000,000) that are due in 2001, are included in overseas debentures. The maturity of long-term debt outstanding as of December 31, 2000 is as follows: Korean won (in millions) U.S. dollars (Note 2) (in thousands) Debentures 2001 2002 2003 2004 Thereafter Less: Discount on...

  • Page 59
    ... financial position. 13. Capital Stock 2000 Annual Report •Hyundai-Motor Company Capital stock as of December 31, 2000 consists of the following: Korean won (in millions) £Ü 1,145,443 U.S. dollars (Note 2) (in thousands) Authorized Issued Par value £Ü 5,000 Common stock Preferred stock...

  • Page 60
    ...addition, in connection with its merger with HMSC in 1999, the Company issued 10,034,230 shares of common stock and 2,438,829 shares of preferred stock at par value (see Note 26). In connection with the merger with the Automobile and Machine Tools Divisions of Hyundai Precision & Ind. Co., Ltd., the...

  • Page 61
    ... for the payment of dividends. 16. Capital Adjustments Capital adjustments as of December 31, 2000 and 1999 consist of the following: Korean won (in millions) U.S. dollars (Note 2) (in thousands) 2000 Annual Report •Hyundai-Motor Company 2000 Treasury stock Loss on valuation of investment equity...

  • Page 62
    .... Dividends The computation of the proposed dividends for 2000 is as follows: Korean won (in millions) U.S. dollars (Note 2) (in thousands) Number of Shares Dividend rate Common shares, net of treasury shares Preferred shares, net of treasury shares: Old New 205,325,212 12% £Ü 123,195 $ 97...

  • Page 63
    ...E N T S December 31, 2000 and 1999 The computation of the proposed dividends for 1999 is as follows: Number of Shares Dividend rate Korean won (in millions) U.S. dollars (Note 2) (in thousands) Common shares, net of treasury shares Preferred shares, net of treasury shares: Old New 204,789,049 10...

  • Page 64
    ... Sales (Purchases) Korean won (in millions) U.S. dollars (Note 2) (in thousands) Affiliated Company Hyundai Motor America Hyundai Motor India HAOSVT Kia Motor Corporation KEFICO Hyundai MOBIS (*) (formerly Hyundai Precision Industries Co., Ltd.) Hyundai HYSCO (formerly Hyundai Pipe Co., Ltd.) 2000...

  • Page 65
    ... (in millions) U.S. dollars (Note 2) (in thousands) Affiliated Company Hyundai Motor America Hyundai Motor India Kia Motor Corporation KEFICO Hyundai MOBIS(*) Beijing Hyundai Namyang real Estate Development center Ltd. Korea Drive Train System Hyundai HYSCO (formerly Hyundai Pipe Co., Ltd.) HYPA...

  • Page 66
    ...thousands) 2000 Salaries Export costs Sales promotion Sales commissions Sales warranties Taxes and dues Communications Utilities Freight and warehousing Rent Travel expenses Service charges Maintenance Supplies Research expenses Depreciation Amortization Provision for doubtful accounts Stock option...

  • Page 67
    ...machine tools Merger schedule - Contract date: May 17, 1999 - General meeting of Shareholders for approval: June 28, 1999 - Merger date: July 31, 1999 2000 Annual Report •Hyundai-Motor Company Merger condition - Merger ratio: 0.24444 (Common share and new preferred share), 0.62016 (Old preferred...

  • Page 68
    ...S December 31, 2000 and 1999 The cost in excess of fair value of net identifiable assets acquired (goodwill) is as follows: Korean won (in millions) U.S. dollars (Note 2) (in thousands) Assets acquired Liabilities assumed and conversion right Net equity acquired New stock issued for merger Cost in...

  • Page 69
    ... of merged company - Name of Company: Hyundai Motor Service Co. - Chairman: Yang-rae, Cho - Key business: Sales of motor vehicles, heavy equipment, parts and automotive fuel and repair of motor vehicles Merger schedule - Contract date: December 15, 1998 - General meeting of Shareholders for approval...

  • Page 70
    .... Acquisition of Kia Motor Corp. and Asia Motors Co., Inc. On December 1, 1998, the Company entered into a stock acquisition agreement involving Kia Motor Corp. (Kia) and Asia Motors Co., Inc. (Asia Motors). A consortium, consisting of the Company and its affiliates acquired 214,200 thousand shares...

  • Page 71
    ...24 to the financial statements, effective January 31, 2000, the Company sold the Sales Division for motor parts for after-sales service, which handled the sales and distribution of the parts used for after-sales service, to Hyundai MOBIS. In addition to the payment for the book value of the disposed...

  • Page 72

  • Page 73
    ...L E Headquarters Office : Hyundai Motor Copmany 231, Yangjae-dong, Seocho-Gu, Seoul, 137-938, Korea Tel. 82-2-3464-2545 Fax. 82-2-3463-3484 Namyang R& D Center, Design Center 772-1 Jangduk-Dong, Hwasung-Si Kyunggi-Do, Korea. Tel. 82-39-369-5114 Fax. 82-39-369-5116 Chonju Plant 800 Yongam-Ri Bondong...

  • Page 74
    2001 / 05 / IR / KJ / 3000