Hyundai 2004 Annual Report Download

Download and view the complete annual report

Please find the complete 2004 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 65

  • 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
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65

Hyundai Motor Company Annual Report 2004
Constant Accelerating Climbing Motion!
Hyundai
A Company in Motion

Table of contents

  • Page 1
    Hyundai Motor Company Annual Report 2004 Constant Accelerating Climbing Motion! Hyundai A Company in Motion

  • Page 2
    .... We are a company on the move. We are a company in motion. 11_ Brands/Awards 25_ Full Line up 27_ Global Report 43_ Concept Cars 45_ Sports Marketing 47_ Sustainability 51_ Environmental Management 53_ Social Contributions 55_ Hyundai Motor Company Worldwide 59_ Financial Statements

  • Page 3
    ... Hyundai Motor Company Annual Report 2004_04 What we're driving towards...Hyundai Motor Company is at a dynamic stage in our quest to become the world's leading automaker. We have made massive inroads in quality and our automobiles now rank highly in notable critics choice awards. Our sales...

  • Page 4
    ... value in overseas markets. We will use this enhanced brand value to promote high-end vehicles in the American market. In the European market, we plan on launching new models. In India and China, which we consider to be regions with great potential, we have devoted ourselves to localized management...

  • Page 5
    ...actively support the development of next-generation technologies by considerably increasing our research and development investment to 6.2 percent of sales. Hyundai Motor Company will continually promote our policy "Innovation for Customers" based on trust-based management, site-intensive management...

  • Page 6
    Hyundai Motor Company Annual Report 2004_10 Gaining Momentum Hyundai's Credit Rating is Upgraded to Investment Grade Financial ratings agency Moody's Investors Services has upgraded Hyundai Motor Company's senior unsecured rating from Ba1 to Baa3, recognizing Hyundai Motor Co.'s commercial paper as...

  • Page 7
    Hyundai Motor Company Annual Report 2004_12 Feel the Motion! We connect emotionally with our cars because driving gives us so much freedom, pleasure and convenience. The feeling of refinement and confidence is at the heart of the Hyundai driving experience and it's founded on the rock-solid quality...

  • Page 8
    Hyundai Motor Company Annual Report 2004_14 The Azera is a distinguished vehicle of taste and sophistication that has been engineered for today's discerning customers who demand uncompromising quality and performance. It emblazons power, elegance and superb aerodynamic craftsmanship, while ...

  • Page 9
    ... car awards, the Canadian program follows a sophisticated and rigorous testing process. To quote Car of the Year Director Laurance Yap, "A record number of 64 vehicle entries were performance-tested for acceleration, braking and passing times, at least four times each." "The fact that Hyundai...

  • Page 10
    ... for price or warranty," said Daniel Gorrel, strategic Vision Vice President. Good Housekeeping and J.D. Power and Associates recently surveyed nearly 30,000 women to find out what they valued most when buying a new vehicle. The women who had bought cars, vans and SUVs in the past year rated their...

  • Page 11
    ...Hyundai is due to begin building the redesigned Santa Fe and Sonata in Alabama. One encouraging sign: DaimlerChrysler (DCX) and Mitsubishi Motors Corp. plan to use a Hyundai-designed four-cylinder engine in their own small- and midsize cars. "This is a vote of confidence for Hyundai's engine quality...

  • Page 12
    ... Motor Company Annual Report 2004_22 The Hyundai Elantra is individual in character as its combines a sleek design, user comfort and ultimate practicality. Its user-friendly adaptability makes it a perfect efficient get-around car for everyday driving and also a 'gutsy' reliable vehicle on the open...

  • Page 13
    ... business. Coming after its Portuguese Rally win, the second straight on the World Rally Championship circuit, this helped affirm Hyundai's technology as world class. In 2004, Hyundai vehicles received an A from consumers polled in the Strategic Vision Total Value study. In the TVI Brand report card...

  • Page 14
    Full Line-up Centennial Azera Sonata Trajet H-1 H -100 Truck H -1 Truck Elantra Hyundai Coupe Matrix Accent Mighty ll 5Ton Cargo Tractor Dump Truck Getz Terracan Santa Fe Tucson County Aero Town Aero Queen

  • Page 15
    .... Hyundai Motor Company is doing great things and making dramatic leaps in terms of quality, sales and endorsements from the critics. Our global footprint now includes research and development facilities in North America, Europe and Asia and manufacturing plants in America, India, Turkey and Korea...

  • Page 16
    Global Report Hyundai Motor Company Annual Report 2004_30 North America 1. Alabama is the location of Hyundai's new American plant. It will be opened in May 2005 and will be the first to produce 'Made in the USA' Hyundai automobiles. 2. The Sonata was named number one in the entry mid-size car ...

  • Page 17
    ... program sets HMC apart from the competition and confirms Hyundai's image as a service-centered company, providing quality and reliability to customers around the world. The new $60 million Proving Ground opened in 2005 in California. Tucson was named best new crossover in the 2005 Canadian Car...

  • Page 18
    ... engines, and it has an above-average recycling rate. This, along with its class-leading safety features, attractive and functional styling, and high value-added technology, make it appealing to discriminating European customers. Hyundai Motor Europe is planning for further sales increases with new...

  • Page 19
    ... occupy center stage in the booming Chinese motor market and to emerge as the global economic leader in the wake of the 2008 Beijing Olympics. We are constructing a second manufacturing plant in China with an annual manufacturing capacity of 300,000 private and commercial vehicles. Hyundai will then...

  • Page 20
    ...Hyundai Motor Company Annual Report 2004_38 International Japan 1. Hyundai Kia Design and Technical Center in Chiba, Japan 2. Tucson wins the 2004 Good Design Award sponsored by the Japanese Industrial Design Promotion Organization (JIDPO) 3. Hyundai Motor India's (HMI) production plant in Chennai...

  • Page 21
    ... to the highly successful Santro. Hyundai Motor India Ltd. (HMI) will serve as one of our key global manufacturing centers. The markets of the future are the BRICs countries so in addition to serving the Indian market, output from Chennai's second plant will be shipped to Europe, Latin America and...

  • Page 22
    ... Design and Technical Center, together with our domestic and worldwide manufacturing facilities, will bring Hyundai Motor to the forefront of the automobile industry. Expanding into Overseas Markets In order to offset the decreasing domestic market and the falling won/dollar exchange rate, Hyundai...

  • Page 23
    ... Car Hyundai Motor Company Annual Report 2004_44 HED-1 At the 2005 Geneva Motor Show Hyundai unveiled the HED-1 concept car, which was developed by our Europe Design and Technical Center. The Center exemplifies our technological knowledge and standing in the global market. The HED-1 concept car...

  • Page 24
    ... Marketing Hyundai Motor Company Annual Report 2004_46 Magnetic Marketing Moves Competing at Motor Shows with Cutting-Edge Design At international auto shows, Hyundai Motor Company strives to showcase our newest technologies and future product ideas to customers, members of the media and business...

  • Page 25
    ... and developing our management philosophy for the future. Our new brand slogan, "Drive Your Way," secures our commitment to top quality and productivity through customer satisfaction and world-wide delivery systems. Establishing a global manufacturing network that includes the Alabama Plant along...

  • Page 26
    ...massive 600,000 units a year by 2008, two years earlier than we originally planned. India is currently our largest offshore operation in terms of production volume and supplies its cars to neighboring South Asian markets, as well as to Europe and Mexico We also have a number of projects under way or...

  • Page 27
    ... marketing, sales and service systems. We have systematically controlled the whole process of research and development, procurement, production, logistics, sales, maintenance, and disposal in terms of environmental management. Becoming an Environment-friendly Global Leader Hyundai Motor Company...

  • Page 28
    ... services throughout our community. We promote these ideals in all of our employees, who in turn strive to realize these values and implement them every day at Hyundai Motor Company. We acknowledged our responsibilities as a leader in Asia by becoming one of the first corporations to offer support...

  • Page 29
    ... Europe GMBH Hyundai Assan Otomotive Sanayi Hyundai Kia America Technical Center Inc. Hyundai Washington Office Prima Engineering Industries S.A.E Hyundai Motor America Hyundai Motor Manufacturing Alabama Hyundai Motor Company (Africa & Middle East Regional Headquarters) Sudan Mater Technology...

  • Page 30
    ... Box 20850, Fountain Valley, CA 92728 0850, U.S.A. Tel: +1-714-965-3000 Hyundai Motor Company (Central & Eastern Europe Regional Headquarters) Address: World Trade Center, Ent.3 #1902, Krasnopresnenskaya nab.12, 123610 Moscow, Russia Tel: +7-095-258-1400 Hyundai - Kia California Design & Technical...

  • Page 31
    Hyundai Motor Company Annual Report 2004_60 Financial Statements: 61 63 66 68 Report of Independent Public Accountants Consolidated Balanced Sheets Consolidated Statements of Income Consolidated Statements of Changes in Shareholders' Equity 70 Consolidated Statements of Cash Flows 73 Notes to ...

  • Page 32
    ... for Business Combination in the Republic of Korea, the excess amount of for as deduction in capital surplus. As explained in Note 30, in order to stabilize the fluctuations of the stock price in the exchange market, on February 4, 2005, the board of directors decided to reacquire 11,000,000 shares...

  • Page 33
    ... Annual Report 2004_64 HYUNDAI MOTOR COMPANY AND SUBSIDIARIES HYUNDAI MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2004 AND 2003 CONSOLIDATED BALANCE SHEETS (CONTINUED) AS OF DECEMBER 31, 2004 AND 2003 Korean won (in millions) Translation into U. S. dollars...

  • Page 34
    Hyundai Motor Company Annual Report 2004_66 HYUNDAI MOTOR COMPANY AND SUBSIDIARIES HYUNDAI MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (CONTINUED) AS OF DECEMBER 31, 2004 AND 2003 CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2004 AND 2003 Korean won (in ...

  • Page 35
    Hyundai Motor Company Annual Report 2004_68 HYUNDAI MOTOR COMPANY AND SUBSIDIARIES HYUNDAI MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2004 AND 2003 CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE YEARS ENDED ...

  • Page 36
    Hyundai Motor Company Annual Report 2004_70 HYUNDAI MOTOR COMPANY AND SUBSIDIARIES HYUNDAI MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2004 AND 2003 CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ...

  • Page 37
    ... current assets Acquisition of long-term investment securities Additions to other assets Acquisition of property, plant and equipment Expenditures for development costs (1,660,920) (6,216,350) (148,663) (1,462,683) (385,582) (3,412,036) (657,511) (13,943,745) (5,911,067) Cash flows from financing...

  • Page 38
    ...) Hyundai Motor Europe GmbH (HME) Hyundai Motor Company Australia (HMCA) Hyundai Translead (HT) Hyundai Machine Tool Europe GmbH (HYME) Hyundai America Technical Center Inc. (HATCI) R&D Manufacturing 44,015 432,108 Manufacturing Financing service 105 Insurance Real estate rent Sales Manufacturing 70...

  • Page 39
    ... subsidiaries, Kia and Hyundai HYSCO have been listed on the Korea Stock Exchange. In 2004, the Company added two domestic companies, including Mseat Co., Ltd. and Automobile Industrial Ace Corporation (AIA), and eight overseas companies, including Stampted Metal America Research Technology Inc...

  • Page 40
    ... or cash flows, is not presented in the accompanying financial statements. The U.S. dollar amounts presented in these financial statements were computed by translating the Korean won into U.S. dollars based on the market average exchange rate announced by Seoul Money Brokerage Services, Ltd...

  • Page 41
    ... the closing price at the balance sheet date. The fair value of non-marketable debt securities are measured at the discounted future cash flows by using the discount rate that appropriately reflects the credit rating of issuing entity assessed by a publicly reliable independent credit rating agency...

  • Page 42
    ... Company Annual Report 2004_82 HYUNDAI MOTOR COMPANY AND SUBSIDIARIES HYUNDAI MOTOR COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2004 AND 2003 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2004 AND 2003 Intangibles Accounting for Lease Contracts...

  • Page 43
    ... The Company and its subsidiaries compute total compensation expense to stock options, which are granted to employees and directors, by the 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 44
    ... HYUNDAI MOTOR COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2004 AND 2003 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2004 AND 2003 Reclassifications Trading securities and available-for-sale securities in short-term investment securities...

  • Page 45
    ... - Companies INI Steel (*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...

  • Page 46
    ... Hyundai-Motor Group China Ltd. Seoul Metro 9th line (*2) Michigan Global Culture Investment Amco Corp. Heesung PM Tech Corporation Dongyong Industries Co., Ltd. Hyundai RB Co. Jinil MVC Co., Ltd. Mobil.Com Co., Ltd. Clean Air Technology Inc. Industri Otomotif Komersial Hyundai Technology Investment...

  • Page 47
    ... Credit-card Electronic-settlement Service Co., Ltd. Hyundai Asan Corporation Dongwon Capital Co., Ltd. U.S. Electrical Inc. ROTIS KIS Information & Communication, Inc. Yonhap Capital Co., Ltd. Koryo Co., Ltd. Korea Software Financial Cooperative Cheju International Convention Center Daewoo Motor...

  • Page 48
    ...long-term investment securities as of December 31, 2003 consist of the following: Korean won (in millions) Translation into U.S. dollars (Note 2) (in thousands) HMJ R&D (*1) Yan Ji Kia Motors A/S (*1) Kia Motors Australia Pty Ltd.(*1) Wia Automotive Parts Co., Ltd.(*1) Beijing-Hyundai Motor Company...

  • Page 49
    ... Tigers Co., Ltd. Hysco America Co., Ltd HMJ R&D Yan Ji Kia Motors A/S Beijing-Hyundai Motor Company HAOSVT (Turkey) Donghui Auto Co., Ltd. Korea Space & Aircraft Co., Ltd. PT. Kia Timor Motors Korea Economy Daily TRW Steering Co., Ltd. NGVTEK.com Hyundai MOBIS EUKOR Car Carriers, Inc. Iljin Bearing...

  • Page 50
    Hyundai Motor Company Annual Report 2004_98 HYUNDAI MOTOR COMPANY AND SUBSIDIARIES HYUNDAI MOTOR COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2004 AND 2003 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2004 AND 2003 7. LEASED ASSETS: The Company and...

  • Page 51
    Hyundai Motor Company Annual Report 2004_100 HYUNDAI MOTOR COMPANY AND SUBSIDIARIES HYUNDAI MOTOR COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2004 AND 2003 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2004 AND 2003 10. INTANGIBLES: Intangibles as ...

  • Page 52
    ... Annual Report 2004_102 HYUNDAI MOTOR COMPANY AND SUBSIDIARIES HYUNDAI MOTOR COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2004 AND 2003 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2004 AND 2003 12. OTHER FINANCIAL BUSINESS ASSETS: 14. LONG-TERM...

  • Page 53
    ... Cash Fund on March 2, 2001, and in accordance with the decision of the Board of Directors, on March 5, 2001, the Company retired 10,000,000 common shares in treasury and 1,000,000 second preferred shares in treasury, which had additional dividend rate of 2 percent to the rate of common stock, using...

  • Page 54
    ...), some investment securities, including 1,593,466 shares of KIA, 2,640,000 shares of 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 overseas subsidiaries...

  • Page 55
    Hyundai Motor Company Annual Report 2004_108 HYUNDAI MOTOR COMPANY AND SUBSIDIARIES HYUNDAI MOTOR COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2004 AND 2003 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2004 AND 2003 18. SELLING AND ADMINISTRATIVE ...

  • Page 56
    ...Dymos Inc. Kia Motors Corporation Hyundai HYSCO WIA Corporation Autoever Systems Corp. Aju Metal Co., Ltd. Hyundai Motor America Hyundai America Technical Center Inc. Hyundai Motor India Hyundai Motor Japan Co. Hyundai Motor Manufacturing Alabama, LLC Company's Company's Company's Company's Company...

  • Page 57
    ... Dymos Inc. WIA Corporation Hyundai Capital Service Inc. Kia Motors Corporation Hyundai Powertech Kia Motors Corporation ROTEM Kia Motors Corporation Aju Metal Co., Ltd. Kia Heavy Industries U.S.A., Corp. Hyundai Powertech Hyundai HYSCO Hyundai Motor America Hyundai America Technical Center Inc. Kia...

  • Page 58
    ... Hyundai Dymos Hyundai Powertech WIA Corporation Kia Motors Corporation Mseat Co., Ltd. Autoever Systems Corp. Hyundai HYSCO Aju Metal Co., Ltd. HAC HMCA HME Hyundai Motor America Hyundai Motor Manufacturing Alabama, LLC Hyundai America Technical Center Inc. Hyundai Motor India Hyundai Motor Japan...

  • Page 59
    ... 60,570 Hyundai Card Hyundai Powertech ROTEM WIA Corporation Hyundai Capital Service Inc. Kia Motors Corporation Dymos Inc. Kia Motors Corporation Hyundai HYSCO Kia Heavy Industries U.S.A., Corp. Hyundai HYSCO AIA Aju Metal Co., Ltd. Hyundai America Technical Center Inc. World Marketing Group LLC...

  • Page 60
    ... Marine Hyundai Motor America Hyundai Motor Manufacturing Alabama LLC Hyundai Motor Finance Company Hyundia Assan Otomotiv Sanayi Ve Ticaret Anonim Sirketi Hyundai Motor Europe GmbH Hyundai Translead Hyundai Machine Tool Europe GmbH Hyundai Motor Poland Sp.Zo.O Hyundai Motor Japan Co. HMJ R&D Center...

  • Page 61
    Hyundai Motor Company Annual Report 2004_120 HYUNDAI MOTOR COMPANY AND SUBSIDIARIES HYUNDAI MOTOR COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2004 AND 2003 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2004 AND 2003 25. SEGMENT INFORMATION: (1) ...

  • Page 62
    ...in millions) Translation into U. S. dollars (Note 2) (in thousands) North America Asia Europe Consolidation adjustments Consolidated amounts Non-financial industry Financial industry Non-financial industry Financial industry Total sales Inter-company sales Net sales 45,546,451 (17,954,166...

  • Page 63
    ... GE Capital Korea transferred the right of business of installment financing for new or used vehicles made by the Company and Kia Motors Corporation, tangible assets related to such right of business (including lease contract of sales office and related fixtures and equipments) and related employees...

  • Page 64
    ... and investment securities of Hyundai Machine Tool Europe GmbH to WIA Corporation for (2) Decision of Treasury Stock Acquisition In order to stabilize the fluctuation of the stock price in the exchange market, on February 4, 2005, the board of directors' decided to reacquire 11,000,000 shares of...

  • Page 65