Hyundai 2002 Annual Report Download

Download and view the complete annual report

Please find the complete 2002 Hyundai annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 46

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46

Annual Report 2002
Hyundai Motor Company Annual Report 2002
www.hyundai-motor.com
2003/06/M/KJ
This was a year of solid growth for Hyundai
Motor, strengthened by the people who
drove our success in markets around the
world and by the power of our brands.

Table of contents

  • Page 1
    Annual Report 2002 Hyundai Motor Company Annual Repor t 2002 This was a year of solid growth for Hyundai Motor, strengthened by the people who drove our success in markets around the world and by the power of our brands. www.hyundai-motor.com 2003 / 06 / M / KJ

  • Page 2
    Financial Highlights

  • Page 3
    ... Motor Company Annual Report 2002 Table of Contents Chairman's Letter President's Letter Communities Responsibility Products Technology Financial Statements 6p 8p 14p Corporate History 20p 22p 24p 30p 31p 33p 38p 40p 44p Management R&D Production Sales & Service Marketing Corporate...

  • Page 4
    ... in the years to come. Our plan focuses on four main areas of concentration: global reach, profit management, resource management and corporate citizenship. In global reach, we will continue to implement region-specific development and marketing, by expanding our investments in countries of high or...

  • Page 5
    .... Focusing on research and development is an important first step in our plan to lead the market. Hyundai Motor will invest a total of 2.3 trillion Korean won in 2003 to this end. The completion of our R&D center in the United States and the construction of a 9 center in Europe to be completed...

  • Page 6
    ... recycling and emission control programs at all levels of management and production. We look forward to the year to come, as we thank all those who made 2002 possible. It was truly our shareholders, our partners, our customers and our employees who created the success that Hyundai Motor enjoyed in...

  • Page 7
    People

  • Page 8
    ...Hyundai Motor's investment in Montgomery represents a commitment to reach American car buyers and to build on market-leading growth in the region over the past few years. Work on the US$1 billion Montgomery assembly plant began in 2002 and will be completed in 2005. The Alabama facility will be able...

  • Page 9
    ...Left: Hyundai Motor officials together with Chairman Chung Mong-Koo make the rounds at the Chennai assembly plant in India. Right: Officials from Hyundai Motor and Beijing Automotive Industry Holdings Company shake hands at the signing ceremony for the joint production of Hyundai cars in China. van...

  • Page 10
    ... of the Hyundai-Kia Motors Design & Technical Center at California Completion of Hyundai Motor America processing facility at Port of Baltimore Breaking ground on first US manufacturing plant in Montgomery, Alabama Launch of Hi-touch customer retention system at service departments Launch of...

  • Page 11
    ... government of Libya in 2002 placed an order for 26,373 Accent cars from Hyundai Motor in the largest single transaction in the history of the company. The contract came after an international bid by leading carmakers in South Korea, Europe and Japan Hyundai Motor came out on top in product quality...

  • Page 12
    ... and Technical Center as well as the 4,300 acre Proving Ground site in the Mojave Desert opened, completing the global R&D network. Each research facility develops unique designs and models to fit the tastes of their region, improving the company's global customer satisfaction and competitive power...

  • Page 13
    ... develop low-emission vehicles; to promote the reduce, reuse and recycle campaign; to manage and reduce hazardous materials; to support international environmental initiatives; to make public our environmental policy; and to train and educate employees in environmental programs. Subsequent programs...

  • Page 14
    ... highly durable rubber and air-purifying radiators. Hyundai Motor's recycling program takes a long view of the subject, beginning with the development of a car on through to production, use and disposal. At the design phase, engineers independently assess the recyclability of new car designs through...

  • Page 15
    Brands

  • Page 16
    ... of 1.5 million vehicles, Hyundai's Ulsan complex is the world's single largest automobile production plant. It produces everything from the Atos minicars to the Centennial luxury car. The company is currently pressing forward to boost the plant's productivity up to the global levels by 2005. At its...

  • Page 17
    ... and global market through its unique production and sales networks. To reach 5 million cars in annual production by 2010, Hyundai will increase its efforts further and firmly establish its name in the global market. Sales and Service In 2002, Hyundai Motor Company reached new record high sales...

  • Page 18
    ..., the company has formed an after-sales service network that encompasses more than 1,200 outlets in Korea. At the company's High-tech Centers, excellent technology and equipment are used to guarantee perfect service for its products. In order to ensure high quality service, Hyundai operates two...

  • Page 19
    ...first in global customer satisfaction in 2002. Hyundai Motor Company plans to surpass Toyota's figures by 2005. Hyundai Motor Company is able to provide prompt service around the clock through its internet service network. To ensure service skills are fully up-to-date, service-training personnel are...

  • Page 20
    ... its sales department in 2002 and launched the marketing headquarters at the beginning of 2003, merged with the marketing department of Kia Motor. At present, the company has divided the global market into major segments, namely North America, Europe, Asia Pacific, Middle East, China and India, to...

  • Page 21
    ... established in 2002 to support domestic telematics service when it becomes available on the mass market. The center will be able to respond in emergencies, contact repair services, send personalized information and receive feedback from Hyundai car owners. Design Systems Hyundai Motor uses one of...

  • Page 22
    Full Lineup

  • Page 23
    Financial Statements: 46 48 50 51 53 56 Report of Independent Public Accountants Consolidated Balanced Sheets Consolidated Statements of Income Consolidated Statements of Changes in Shareholders' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements

  • Page 24
    ... Company adopted Statement of Korea Accounting Standards (SKAS) No. 3 - Intangible Assets, SKAS No. 6 - Events Occurring after the Balance Sheet Date and SKAS No. 7 - Capitalization of Financing Costs and changed the estimated economic useful lives for certain types of development costs. Kia Motors...

  • Page 25
    ... HYUNDAI MOTOR COMPANY AND SUBSIDIARIES: Financial Statements 2002 CONSOLIDATED BALANCE SHEETS (CONTINUED) AS OF DECEMBER 31, 2002 AND 2001 Korean won (in millions) ASSETS Current assets: Cash and cash equivalents (Note 15) Short-term financial instruments (Note 15) Marketable securities (Notes...

  • Page 26
    ..., net Loss on valuation of investments accounted for using the equity method, net Loss on disposal of investments and other assets, net Loss on disposal of property, plant and equipment, net Loss on valuation of inventory Provision for accrued warranties and product liabilities Loss (gain) on...

  • Page 27
    ... YEARS ENDED DECEMBER 31, 2002 AND 2001 HYUNDAI MOTOR COMPANY AND SUBSIDIARIES: Financial Statements 2002 CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2002 AND 2001 Korean won (in millions) Capital stock January 1, 2002 Difference between additional investment and equity...

  • Page 28
    ...from disposal of marketable securities Reduction in short-term financial instruments and other current assets Proceeds from disposal of investments Reduction in other assets Proceeds from disposal of property, plant and equipment 2001 Translation into U. S. dollars (Note 2) (in thousands) 2002 2001...

  • Page 29
    ....29 Capital stock as of December 31, 2002 U.S. dollars (Note 2) (in thousands) Business Domestic Subsidiaries: Kia Motors Corporation (Kia) Manufacturing Hyundai Powertech WIA Corporation (WIA) Hyundai Dymos Inc. (formerly Korea Drive Train System) Korean won (in millions) Shares (*) Percentage...

  • Page 30
    ...Kia Heavy Industries U.S.A., Corp. Hyundai Pipe of America, Inc. Hyundai America Technical Center Inc. (HATCI) R&D Hyundai Motor Finance Financing Company (HMFC) service Hyundai Auto Canada Captive Insurance Incorporation Insurance (HACCII) service Real Estate Sevenwood Property Inc. rent Kia Motors...

  • Page 31
    ... using the level yield method. In the case of subsidiaries in financial business, interest revenues earned on financial assets are recognized as time passes and fees and commissions in return for services rendered are recognized as services are provided. Valuation of Marketable Securities Marketable...

  • Page 32
    ... security, the increase in value is recorded in capital adjustments. 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 consolidated capital adjustments. Property, Plant and Equipment...

  • Page 33
    ...: Financial Statements 2002 HYUNDAI MOTOR COMPANY AND SUBSIDIARIES: Financial Statements 2002 Accrued Warranties and Product Liabilities The Company and its subsidiaries generally provide a warranty to the ultimate consumer with each product and accrues warranty expense at the time of sale based...

  • Page 34
    .... In 2002, among the equity securities accounted for using the equity method in 2001, DongFeng Yueda Kia Motor Co., Ltd. (formerly Hyundai-Kia-Yueda Motor Company) and Daimler Hyundai Truck Co., Ltd. are included in the consolidation mainly due to the holding and acquisition of ownership enabling...

  • Page 35
    ... Finance Co., Ltd. Comet Savings & Finance Co., Ltd. Hyundai Heavy Industries Co., Ltd. Hyundai Corporation Hyundai Information Technology Co., Ltd. LG Telecom.Co., Ltd. Chohung Bank Korea Investment Corporation Hyundai Merchant Marine Co., Ltd. Kia Steel Co., Ltd. Hyundai Engineering & Construction...

  • Page 36
    ... 2002 HYUNDAI MOTOR COMPANY AND SUBSIDIARIES: Financial Statements 2002 Companies Hyundai Technology Investment Co., Ltd. Hyundai Unicorns Co., Ltd. Hyundai Research Institute Gyeongnam Credit Guarantee Foundation Kihyup Finance, Inc. SoltechIM Co., Ltd Toba Telecom 3Gcore, Inc Yonhap Capital...

  • Page 37
    ... Hyundai Corporation Machinery Insurance Cooperative Kisan Mutual Saving's & Finance Kia Motors Corporation Kia Steel Co., Ltd. Korea Defense Industry Association 5. LEASED ASSETS The Company and its subsidiaries have entered into lease agreements for certain machinery and equipment. The capital...

  • Page 38
    ...companies or business divisions. As of December 31, 2001, negative goodwill is 118,225 million ($98,488 thousand) related to investments in subsidiaries. 9. OTHER ASSETS Other assets as of December 31, 2002 and 2001 consist of the following: Korean won (in millions) 2002 Long-term notes and accounts...

  • Page 39
    ... reported in accounts of its subsidiaries in capital adjustments as gain on valuation of investment equity securities within shareholders' equity. The Company recorded gains of 14,889 million ($12,403 thousand) and 22,775 million ($18,973 thousand) in 2002 and 2001, respectively. The preferred...

  • Page 40
    ... thousand) in 2002 and 2001, respectively, has been accounted for as a charge to current operations and a credit to capital adjustment over the required period of service (two years) from the grant date using the straight-line method. In addition, Kia, a domestic subsidiary, granted stock options to...

  • Page 41
    ... Preferred shares, net of treasury shares: First and Third Second Dividend rate 15% Description Elimination of unrealized profits and losses Reversal of accrued product liabilities Gain on valuation of investments (equity method) Others Tax rate (%) Korean won (in millions) Beginning Of the year...

  • Page 42
    ... income expenses Hyundai Capital Service Inc. KEFICO Corporation Hyundai Powertech Hyundai Dymos (formerly Korea Drive Train System) Kia Motors Corporation Hyundai HYSCO Hyundai Motor America Hyundai America Technical Center Inc. Hyundai Motor India Hyundai Motor Japan Co. Hyundai Motor Poland Sp...

  • Page 43
    ... Corporation Kia Motors Corporation Kia Motors Corporation KEFICO Corporation Hyundai Dymos (formerly Korea Drive Train System) Hyundai Capital Service Inc. Wia Corporation Hyundai Powertech Hyundai HYSCO Hyundai Translead(HT, formerly Hyundai PreciSion America Inc.) Hyundai Motor Finance Company...

  • Page 44
    ...: Investments, net of unamortized present value discount Property, plant and equipment, net of accumulated depreciation Intangibles, net of amortization Other financial business assets Total non-current assets Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Other long-term...

  • Page 45
    ...1, 2002, Hyundai Dymos (formerly Korea Drive Train System) merged Korea Precision Co., Ltd. with assets 91,844 million ($76,511 thousand) and liabilities of 82,063 million ($68,363 thousand) by issuing new common stock. (2) Effective January 1, 2002, ROTEM acquired Heavy Equipment and Plant division...

  • Page 46
    ...-si, Kyunggi-do, Korea Tel: 82-31-369-5114 Registered Capital 1.4765 trillion(Korean Won) Number of Employees 50,000 Persons Overseas Facilities Hyundai Motor America 10550 Talbert Avenue Fountain Valley, CA 92728-0850 USA T.1-714-965-3000 F.1-714-965-3001 Hyundai Auto Canada Inc. 75 Frontenac...