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20
Hyundai Motor Company
Annual Report 2005
>>Sublime Drive
19
Management Achievements
2005 Global Automotive Shareholder
Value Award Winner
In January 2006 Hyundai Motor Company was named the Pricewaterhouse
Coopers and Automotive News 2005 Global Automotive Shareholder Value Award
winner, a stark reminder of Hyundai's emergence as a top-tier global automaker.
Presented at the 30th Automotive News World Congress in Dearborn, Michigan, the
award recognizes automotive manufacturers, suppliers and retail distributors with
top shareholder returns in their categories.
According to the PricewaterhouseCoopers Shareholder Value Index (SVI), Hyundai
Motor Company has posted shareholder returns of 80 percent and 329 percent
over the past one and three year periods, respectively. The SVI is accepted as the
standard measure of relative shareholder value in the automotive industry. Hyundai
Motor Company also received this recognition in 2003.
Developed seven years ago by PriceWaterhouse Coopers, the Shareholder Value
Index (SVI) reflects the growing importance of shareholder value for publicly traded
automotive companies. It looks at the value of $100 invested in a stock over one
and three year periods and compares relative returns generated by different compa-
nies and industry segments. The result is an objective and reliable measure of
shareholder value for stock market-listed automotive companies. This year, Hyundai
Motor Company was among only four companies awarded the Shareholder Value
Award.
An Elite Company
Hyundai Motor Company is now a member of the esteemed Global Top 100
Brands Scoreboard, compiled by international brand consultancy Interbrand and
published by BusinessWeek magazine.
Only ten automotive companies specializing in passenger vehicles were acknowl-
edged with admittance into this elite group.
This exciting development occurred in the wake of Hyundai’s 2005 brand slogan
initiatives ‘Drive Your Way™’and ‘Refined & Confident’ and is testament to the
insight of our people and management.
Being an elite brand carries with it not only the privilege of being part of the global
consciousness but the responsibility to use this privilege for the benefit of the planet
and all mankind.
In 2005 Fortune Magazine rated Hyundai Motor Company 29th overall in the
Socially Responsible Company category, an auspicious milestone which ratifies our
social values and mission.
Joining the top 100 Interbrand list and the recognition received from Fortune
Magazine further galvanizes the Hyundai global brand as a dynamic and progres-
sive force and is the perfect platform from which to launch our global sales into the
stratosphere.
Corporate Confidence ‘AAA’
Accelerating Absolute Assurance
Since 2004 Hyundai Motor Company has been rated Baa3 by financial ratings
agency Moody’s Investors. This endorsement means Hyundai commercial paper is
rated as investment quality, further recognition of Hyundai’s sound management
and positive corporate and employee relations.
Significantly, Kia Motor Corporation also received the same recognition from
Moody’s at the same time as Hyundai, indicating a positive corollary in the financial
outlook of both corporations.
These ratings reflect Moody’s expectation that Hyundai Motor Company’s overall
earnings will continue to improve, supported by their solid positions in the Korean
automotive market and strengthening global market positions as a result of regional
diversification.
It further incorporates Moody’s belief that Hyundai Motor Company will maintain its
sound financial positions well into the future.
Recently, the Hyundai Motor Company financing unit in the U.S.A issued
asset-backed securities (ABS) worth $770 million in the U.S.A, with the proceeds
being used to finance the sales promotion and consumer satisfaction activities of its
automobile subsidiary in the U.S.A. This represents the largest amount of debt any
South Korean company has ever sold in the U.S.A. The nation’s largest automaker
said it will use the funds to help Hyundai Motor America extend its reach and
finance installment programs for customers in the world’s largest auto market.
Deutsche Bank and Societe Generale lead-managed the issuance of securities with
the credit rating of AAA. JP Morgan, Barclays and Wachovia banks also helped
arrange the sale.