Hyundai 2002 Annual Report Download - page 5

The year 2002 was a time of solid growth for us at Hyundai Motor. The numbers
tell the story: Sales surged 17 percent y-o-y to 27.1 trillion Korean won with a
record-setting performance in each of our divisions. Domestic sales were 790,000
units, export sales were 920,000 units and overseas sales were 183,000 units.
That means over 1.9 million car buyers chose Hyundai cars last year - an 8.5
percent rise from the year previous. Hyundai Motor also recorded substantial
improvements in profitability. Net profits rose 23.9 percent y-o-y to 1.4 trillion
Korean won and ROE rose from 13.9 percent in 2001 to 14.6 percent in 2002. Our
financial structure was strengthened as debt-to-equity dropped from 54.3 percent
in 2001 to 31.3 percent in 2002
Driving these improvements in our profits was the market power of our products.
Cars like the Sonata and the Santa Fe received critical and public acclaim for their
value and dependability. Indeed, J.D. Power and Associates honored us with the
Chairman Award for our success over the past year.
We began laying the foundation for overseas production on several fronts. In the
United States, Hyundai Motor broke ground on an assembly plant that will produce
300,000 units at full capacity. In China, we opened the Hyundai Motor Beijing
Office ahead of the 2008 Olympic games to be held in that country. Hyundai's EF
Sonata has already been selected as the official car of the city of Beijing. A growing
number of people around the world are being convinced of the resiliency of the
Korean economy and of the quality of Korean-made products.
We continue to invest aggressively in core technologies as we did throughout
2002. Together with Mitsubishi and DaimlerChrysler, we formed the Global Engine
Alliance to undertake development and production of a next generation of engine
for a range of car models in the coming years.
Value to our shareholders improved in the past year, supported by IR activities
focusing on investment institutions, analysts and credit-rating institutions. Our S&P
credit rating was upward adjusted from BB in 2001 to BB+ in 2002. Moody's is
currently considering an upgrade in valuations from the current Ba2.
Today, uncertainty holds our global economy in check. Oil prices are up and the
US economy remains shaky as war in the Middle East continues. Europe's
economy is slowing, restrained partly by the passive policies of its central bank. In
South Korea, we are being faced with unprecedented competition in the domestic
automobile market. Weathering this storm will take resolve and action. Future
growth for our company relies on our ability to retain dominance in the domestic
market and to expand in other markets around the world.
The past year was proof positive of Hyundai Motor's commitment to raising
shareholder value. Raising shareholder value and improving our profit structure are
priorities for our business systems as we work toward 2010, when we expect to
be among the top five automakers in the world. For 2003, we expect to see total
sales of 2.13 million units or 30.2 trillion Korean won, with domestic sales at
840,000 units, export sales at 1,000,000 units and overseas sales at 290,000
units. Growing amid a slow global economy will be a challenge. We accept that
challenge with determination.
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
center in Europe to be completed in the second half of 2003 will meet the demand
for region-specific design and technology.
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President's Letter