Hyundai 2003 Annual Report Download

Download and view the complete annual report

Please find the complete 2003 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 58

  • 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
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58

Annual Report 2003
Where we are
going
2004/ 06 / M
Hyundai Motor Company Annual Repor t 2003
www.hyundai-motor.com
A successful quality improvement campaign
led to record overseas sales. Further invest-
ments and strong global expansion laid a
bright foundation for the Future.

Table of contents

  • Page 1
    Annual Report 2003 Hyundai Motor Company Annual Repor t 2003 A successful quality improvement campaign led to record overseas sales. Further investments and strong global expansion laid a bright foundation for the Future. Where we are going 2004/ 06 / M www.hyundai-motor.com

  • Page 2
    Hyundai Motor is...

  • Page 3
    The Future and the future is...

  • Page 4
    ..., boost profits further and increase research spending. Sales are expected to pass the 2 million mark for the first time ever. The marketing of high value added, high margin vehicles such as the Santa Fe, Sonata and XG will be stepped up. Two new models will also be introduced: the Tucson SUV and...

  • Page 5
    ... _ 11 History of Hyundai Motor Company _ 15 Hyundai Brands _ 19 Sports Marketing _ 29 Future Brands _ 39 Sustainable Management _ 43 Global Report _ 45 Financial Statements _ 47 Full Line up _ 111 Corporate Information _ 113 Sales Net Income Total Assets Shareholders' Equity Earnings Per Share ( US...

  • Page 6
    ... sustainable management in the Korean corporate sector. It is my hope that this report provides you with greater insight and confidence in Hyundai Motor Co. Yours sincerely, Chung Mong-Koo Chairman and CEO 011_ Hyundai Motor Company Annual Report 2003 Hyundai Motor Company Annual Report 2003 _ 12

  • Page 7
    ... fuel cell power plant and integrate it into the Tucson sport utility vehicle. In 2003, our fully-owned subsidiary Hyundai Motor India expanded its global role by shipping its products to new markets in Western Europe, Mexico and Latin America. HMI already serves customers in Hyundai Motor Co. has...

  • Page 8
    ... have had just over a century to reach their current market positions. Hyundai Motor Company is a much younger corporation. Founded in 1967 in Korea, Hyundai Motor Company has already earned global recognition for the advanced technology and quality of its automobiles. In just over three decades...

  • Page 9
    ... between the Korea and British auto industries. Rising Star In the 1990s Hyundai began to invest in R&D to a much greater extent. A decade long commitment to developing its own technology was realized. In 1991, the company unveiled its first in-house designed powerplant, the Alpha engine. Two years...

  • Page 10
    Where we are Hyundai Motor Company is proud of its history and optimistic about the future. A newfound maturity and confidence has been instilled in the company, coupled with Hyundai's tradition of boldness and creativity. Our latest brands are testament to these qualities. Here is what has defined...

  • Page 11
    ... by J.D. Power & Associates for 2nd successive year in the American market (jointly in 2003) The Sonata also placed 1st in the Initial Quality Study, recognised as the worldwide quality index for new cars. 19_ Hyundai Motor Company Annual Report 2003 Hyundai Motor Company Annual Report 2003 _ 20

  • Page 12
    ..., an illuminated glove box, carpeted passenger and cargo areas, three power outlets (two front, one rear), rear seat heating and air conditioning ducts, an eight-way manually adjustable driver's seat, and reclining rear seatbacks. Two engines are available with the 2003 Hyundai Santa Fe. The first...

  • Page 13
    ... polymer battery. Unlike the Santa Fe FCEV, the Tucson Fuel Cell program has been running on a parallel path with the conventional Tucson providing fully digitized engineering data from the earliest stages. 23_ Hyundai Motor Company Annual Report 2003 Hyundai Motor Company Annual Report 2003 _ 24

  • Page 14
    ...16valve four-cylinder engine. A smooth-shifting fivespeed manual gearbox is standard, with a fourspeed electronically controlled automatic transmission optional. " Sporty and comfortable, the Accent continues Hyundai's longstanding tradition of value." Hyundai Motor Company Annual Report 2003 _ 26

  • Page 15
    ... air conditioning, anti-lock brakes, driver, passenger and side airbags, RDS radio/CD player, electric front and rear windows and alloy wheels. Engine choices include 1.6-liter and 1.8-liter petrol and a 1.5-liter diesel, all delivering ample power. 27_ Hyundai Motor Company Annual Report 2003...

  • Page 16
    ...be mainly used by the teams, referees, media representatives, UEFA delegations as well as members of the EURO 2004TM Organizing Committee. In 2003 Hyundai renewed its partnership with FIFA and became the official Automotive Partner of 2006 FIFA World CupTM Germany. 29_ Hyundai Motor Company Annual...

  • Page 17
    ... hot, you're hot - and Hyundai is sizzling hot." This is how the Washington Times described the Coupe's entry into the sports coupe market in 2002. Since then the temperature has soared even further. The all-new Coupe range sets a new benchmark for sports cars. Beautiful, exciting and practical, the...

  • Page 18
    ...-impact airbags. ISOFIX child seat tethers are standard, as is keyless entry with alarm system. The XG350 with Side Airbags was awarded 5 stars by the NHTSA for driver and passenger safety in frontal crashes. 33_ Hyundai Motor Company Annual Report 2003 Hyundai Motor Company Annual Report 2003...

  • Page 19
    ...air bags and solar control glass. The Centennial is at the forefront of Hyundai's renaissance of quality. Lovingly detailed and beautifully refined the luxury sedan is a masterful addition to Hyundai's growing fleet. 35_ Hyundai Motor Company Annual Report 2003 Hyundai Motor Company Annual Report...

  • Page 20
    Where we are going The future is looking bright for Hyundai Motor Company. Buoyed by recent successes we are pressing ahead. Investment in research and development is being massively hiked and facility and other investments expanded. The road ahead will present challenges and obstacles, but the ...

  • Page 21
    ... replaced by a multi function speedometer, plus a retractable centre console featuring an LCD information screen developed in conjunction with VDO. A vertically sliding communications centre also shows a clever way ahead for in-car 39_ Hyundai Motor Company Annual Report 2003 Hyundai Motor Company...

  • Page 22
    ... OLV is powered by a 2-liter four-cylinder DOHC engine but with the help of a Borg-Warner supercharger and intercooler system, manages to generate up to 150 kW for some adrenalin pumping fun. Hyundai CCS R&D Investment (Korean Won in billions) 41_ Hyundai Motor Company Annual Report 2003 E-Cubed

  • Page 23
    ...use of artificial intelligence. Getz, a small-sized passenger vehicle equipped with Frontal Crash ASV system, scored top rating in the Euro New Car Assessment Program (NCAP). In line with such technical advancements, Hyundai Motor is engaged in safety promotion programs such as Junior Traffic Safety...

  • Page 24
    ...,000 Powertrain subcategory. In January 2003 a new $30 million state-of-the-art design and technical facility was opened in Irvine, housing 100 auto designers, engineers, model makers and technicians, many of whom were responsible for design successes such as Hyundai Motor's Santa Fe sport-utility...

  • Page 25
    Financial Statements: 49 51 54 56 58 61 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 26
    HYUNDAI MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2003 AND 2002 TOGETHER WITH INDEPENDENT PUBLIC ACCOUNTANTS' REPORT Anjin & Co 14th Floor, Hanwha Securities Building 23-5 Yoido-dong, Youngdeungpo-ku Seoul 150-717, Korea Yoido P.O.Box 537 Tel 82(2) 6676-...

  • Page 27
    ...9,639 million in 2002 Total current assets Non-current assets: Long-term financial instruments (Note 17) Long-term investment securities (Notes 4 and 17) Investment securities accounted for using the equity method (Notes 5 and 17) Investment securities (Note 6) Property, plant and equipment, net of...

  • Page 28
    ... expenses (Note 18) Capital adjustments (Note 16) Minority interests Total shareholders' equity Total liabilities and shareholders' equity See accompanying notes to consolidated financial statements. 53_ Hyundai Motor Company Annual Report 2003 Hyundai Motor Company Annual Report 2003 _ 54

  • Page 29
    ... YEARS ENDED DECEMBER 31, 2003 AND 2002 HYUNDAI MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002 Korean won (in millions, except per share amounts) Translation into U. S. dollars (Note 2) (in thousands, except...

  • Page 30
    ... OF CHANGES IN SHAREHOLDERS' EQUITY (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002 HYUNDAI MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002 Korean won (in millions) Translation into U.S. dollars (Note 2) (in thousands...

  • Page 31
    ...: Purchase of short-term financial instruments Acquisition of short-term investment securities Acquisition of marketable securities Additions to other current assets Acquisition of long-term investment securities Acquisition of investments Additions to other assets Acquisition of property, plant and...

  • Page 32
    ... (HMCA) Shareholders' equity As of December 31, 2003 Subsidiaries Business Korean won U.S. dollars (in millions)(*) (in thousands) Shares (**) Percentage Indirect ownership (**) ownership (**) Hyundai Translead (HT) Hyundai Machine Tool Europe GmbH (HYME) Hyundai America Technical Center Inc. (HATCI...

  • Page 33
    .... (KMUK) Kia Motors Austria GmbH (KMAS) Kia Motors Hungary Kft (KMH) Dong Feng Yueda Kia Motor Co., Ltd. Hyundai Pipe of America, Inc. Hyundai Hysco Vietnam Co., Ltd. Bejing Hyundai Hysco Steel Process Co., Ltd. Kia Heavy Industries U.S.A., Corp. Manufacturing Sales Hyundai Motor Company Australis...

  • Page 34
    ... time of purchase. Investments are classified into short-term investment securities (current assets) and long-term investment securities (non-current assets) based on the maturities and disposal plan within one year SKAS No. 8 is not applied to the investments accounted for using the equity method...

  • Page 35
    ... Accounted for Using the Equity Method Classification of Securities At acquisition, the Company classifies securities into one of the three categories; trading, held-to-maturity or available-for-sale. Trading securities are those that were acquired principally to generate profits from short-term...

  • Page 36
    ... are accounted for at their acquisition costs. For those securities that are traded in an active market, fair values refer to those quoted market prices, which are measured as the closing price at the balance sheet date. The fair value of non-marketable debt securities are measured at the discounted...

  • Page 37
    .... The gain or loss on valuation of these derivatives related to the fair value of Kia shares is recognized in current operations. As of December 31, 2003, all premiums to be paid by the Company are recorded as long-term other accounts payable in long-term liabilities of 89,864 million (US$75,024...

  • Page 38
    ... 3,819,999 2003 $2,374,769 692,753 543,018 964,536 15,447 $4,590,523 2002 $2,221,181 384,036 417,254 147,225 19,483 $3,189,179 4. SHORT-TERM AND LONG-TERM INVESTMENT SECURITIES: Assets and liabilities of subsidiaries outside the Republic of Korea are translated at the rate of exchange in effect...

  • Page 39
    ...Hyundai MOBIS (*1) Jin Heung Mutual Savings Bank Korea Mutual Savings Bank Saehan Media Korea Information Service, Inc. Daewoo Engineering & Construction Co., Ltd Hyundai Heavy Industries Co., Ltd. Daewoo International Corporation Hyundai Information Technology Co., Ltd. Korea Industrial Development...

  • Page 40
    ... Acquisition cost Book value Book value Government bonds Corporate bonds Asset backed securities Other 6,683 8,584 1,735,478 1,153 1,751,898 6,683 6,204 1,690,816 350 1,704,053 $5,579 5,179 1,411,601 294 $1,422,653 77_ Hyundai Motor Company Annual Report 2003 Hyundai Motor Company Annual...

  • Page 41
    ...in millions) U. S. dollars (Note 2) (in thousands) Description Beneficiary certificates Debt securities Book value 690,209 20,265 710,474 Book value $576,231 16,918 $593,149 Kia Tigers Co., Ltd. (*1) Hysco America Co., Ltd (*1) HMJ R&D (*1) Yan Ji Kia Motors A/S (*1) Beijing-Hyundai Motor HAOSVT...

  • Page 42
    .... Hyundai Engineering & Construction Co., Ltd. Kanglim Specific Equipment Automotive Co., Ltd. Prochips Technology Inc. DongYang Investment Bank Korea Information Service. Inc. SK Telecom Nonhyup Trust Cash Fund Samho Company Ltd. Samlip General Food Treasury Stock Funds Stock Market Stabilization...

  • Page 43
    ... and equipment. The capital lease obligations are included in long-term debt in the accompanying balance sheets. Annual payments on these lease agreements as of December 31, 2003 are as follows (won in millions): Companies Acquisition cost 18,000 500 20 40 2,213 5,319 8,188 15,544 281,712 Book...

  • Page 44
    ... dollars (Note 2) (in thousands) Description Goodwill Korean won (in millions) Negative goodwill Industrial Development property costs rights Other Total Total Beginning of year Land Buildings and structures Machinery and equipment Vehicles Tools, dies and molds Other equipment Construction...

  • Page 45
    ... 14. LONG-TERM DEBT Long-term debt as of December 31, 2003 and 2002 consists of the following: Interest rate (%) Korean won (in millions) U. S. dollars (Note 2) (in thousands) 4,500 million ($3,757 thousand) related to mergers with non-subsidiary companies or business divisions. 11. OTHER ASSETS...

  • Page 46
    ...000,000 shares 219,518,502 shares 65,202,146 shares 5,000 5,000 1,147,592 331,011 1,478,603 common stock of 429,800 shares were issued. This issue of new common stock resulted in the increase in paid-in capital in 89_ Hyundai Motor Company Annual Report 2003 Hyundai Motor Company Annual Report...

  • Page 47
    ... ($163,922 thousand), some investment securities including 4,183,466 shares for Kia, 4,400,000 shares for Eukor Car Carriers Inc. and others are pledged as collateral for various borrowings, debentures, payables, lease agreements, guarantees of a customer financing system and others. (3)Certain...

  • Page 48
    ... ($761,009 thousand) and 2003 Salaries Export related expenses Sales promotion Sales commission Sales warranties Taxes and dues Communications Utilities Freight and warehousing Rent Travel Service charges Supplies Research Depreciation Amortization Provision for bad debt Other 1,728,168 925,061...

  • Page 49
    ...Property, plant and equipment Others Hyundai Capital Service Inc. KEFICO Corporation Hyundai Powertech Dymos Inc. Kia Motors Corporation Hyundai HYSCO Wia Corporation Autoever Systems Corp. Hyundai Motor America Hyundai America Technical Center Inc. Company's Company's Company's Company's Company...

  • Page 50
    ...,255 69,642 19,114 Hyundai Capital Service Inc. ROTEM Hyundai Card KEFICO Corporation Hyundai Dymos Hyundai Powertech WIA Corporation Kia Motors Corporation Autoever Systems Corp. Hyundai HYSCO Hyundai Motor America Hyundai Motor India Hyundai Motor Japan Co. Hyundai Motor Poland Sp. Zo. O HAOSVT 13...

  • Page 51
    ... Kia Motors Corporation Kia Motors Corporation Kia Motors Europe Kia Motors Europe Autoever Co., Ltd. KEFICO Corporation Hyundai Dymos Wia Corporation Hyundai Powertech Hyundai HYSCO Hyundai Translead Counterpart subsidiaries WIA Corporation Hyundai Capital Service Inc. Kia Motors America...

  • Page 52
    .... WIA Corporation Hyundai HYSCO Wia Corporation Dymos Inc. Hyundai Pipe of America, Inc. Bejing Hyundai Hysco Steel Process Co., Ltd. Hyundai-Huy Hoang Pipe Company Limited 1,021 166,896 852 $139,335 24,009 20,444 121,020 8,868 11,978 U.S. dollars (Note 2) (in thousands) $313,248 180,000 119,000 98...

  • Page 53
    ... Financial industry Non-financial industry Financial industry Current assets: Korean won (in millions) U. S. dollars (Note 2) (in thousands) 14,445,860 665,305 $12,060,327 $555,439 Non-current assets: Investments, net of unamortized present value discount Property, plant and equipment...

  • Page 54
    ... the Company and its subsidiaries in 2003 are located, are as follows: Korean won (in millions) U. S. dollars (Note 2) (in thousands) Korean won (in millions) Non-financial industry Financial industry Non-financial industry Financial industry Domestic North America Asia Europe Consolidation...

  • Page 55
    ... of Board of Directors on February 11, 2004. The exchange rate of stock for this merger will be 1:0.0162 (WIA:E-HD.com). intermediaries including Citibank for the purpose of funding its operating capital on January 12, 19 and February 2, 2004, 107_ Hyundai Motor Company Annual Report 2003 Hyundai...

  • Page 56
    .... has plans to issue additional stock, improve the profit by increasing sales price, expanding the export and reducing the cost and expenditures. (2) Hyundai Card Co., Ltd. had net loss of subordinated convertible bonds of thousand) in 2003. (3) Hyundai Hysco Vietnam Co., Ltd. had operating loss and...

  • Page 57
    ...Hyundai Coupe (Tuscani) Matrix (Lavita) Getz (Click) Atos Prime Terracan Santa Fe TUCSON Trajet (Trajet XG) H-1 (Starex) H-100 Truck (Porter) H-1 Truck (Libero) Mighty 5 Ton Cargo Tractor Dump Truck County Aero Town Aero Queen 111_ Hyundai Motor Company Annual Report 2003 Hyundai...

  • Page 58
    ...9666 F.86-10-8453-9951 Hyundai Motor Company & Kia Motor Corporation Shanghai Office A-F1, 13, Far East International Plaza, No. 319, Xianxia RD. Shanghai, 200051, China T.021-6235-0033 F.001-021-6235-0055 Hyundai America Technical Center Inc. 5075 Venture Drive, Ann Arbor, MI 48108 USA T.1-734-747...