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Annual Report 2007Hyundai Motor Company
Challenge Perception

Table of contents

  • Page 1
    Hyundai Motor Company Annual Report 2007 Challenge Perception

  • Page 2
    Table of Contents 02 04 06 32 34 36 38 40 42 44 47 Financial Highlights Letter from the Chairman Letter from the Vice Chairman Management Research & Development Production Sales & Service Marketing Sustainable Management Social Responsibility Financial Statements 120 Full Line-Up

  • Page 3
    Challenge perceptions We're changing the way we do business. Our operations are expanding in every major market from Europe to Asia to the Americas. Our product line is diversifying from worldclass luxury cars to fuel-efficient smart cars. But some things never change. Our brand still stands for ...

  • Page 4
    ...'05 '06 4,352 '07 5,813 6.20 '05 '06 '07 Shareholder's Equity • Korean won in billion, US dollars in million Earnings Per Share • Korean won, US dollars Dividends Per Share • Korean won, US dollars * For the years ended December 31, 2007, 2006 and 2004 1,000 1.064 83,848 89,371

  • Page 5
    ...Domestic Total Export Total Sales & Market Share in India(HMI)* *Passenger Car Segments Total Sales & Market Share in China(BHMC)* *Passenger Car ...Sales & Market Share in Turkey(HAOS) Retail Sales & Market Share in EU Countries Retail Sales & Market Share in USA Sales (Units) Market Share...

  • Page 6
    04 Letter from the Chairman

  • Page 7
    ... heart of Hyundai Motor Company's efforts to expand our business is our steadfast belief in customer service. The year 2007 marked a significant milestone in the history of this company: our 40th anniversary. And there was much to celebrate: We completed our second plants in China and India doubling...

  • Page 8
    ... Top Picks by Consumer Reports. In Spain, i30 earned Car of the Year honors and became the best-selling Asian import. (2) After our 2005 debut on the chart of the global top 100 brands, Hyundai Motor Company has steadily improved its standing year-on-year and was listed in 2007 as the world's 72nd...

  • Page 9
    ... management was a milestone for Hyundai Motor Company and indeed for any Korean company. The agreement ensures our competitiveness in the global market for years to come. (4) The numbers tell the story: 624,227 cars sold domestically; 1,076,070 cars sold internationally; domestic production reached...

  • Page 10
    8 Azera

  • Page 11
    ... comfort, convenience, safety and value, the Hyundai Azera (Grandeur) competes against some of the best German cars in its class. It has more standard safety features than any other car in its class, a powerful engine and quality backed by the Hyundai brand. And it all comes at a competitive price.

  • Page 12
    10 Sonata

  • Page 13
    Challenge perceptions 11 The Hyundai Sonata has been one of the best selling cars in Korea since it debuted in 1985. European and American consumers agree. Independent review after independent review have named the Sonata best in its class in terms of quality, customer satisfaction and value.

  • Page 14
    12 Tucson & Santa Fe

  • Page 15
    ...Fe and Tucson, have the rugged capability, style and comfort that consumers expect from Hyundai. Beneath the striking design, these cars boast some of the most advanced safety features and flexible seating and cargo configurations. American reviewers gave the Santa Fe and Tucson their highest safety...

  • Page 16
    14 Veracruz & Entourage

  • Page 17
    ...perceptions 15 The Entourage was awarded the best crash test rating by the Insurance Institute for Highway Safety in the US. The Veracruz outperformed its high-end competitors according to Motor Trend magazine. The accolades are pouring in for Hyundai's new entries into the minivan and premium SUV...

  • Page 18
    16 i30 & Elantra

  • Page 19
    ... Elantra (Avante) one of its top picks in 2008 and the US Environmental Protection Agency lists the Elantra (Avante) as one of the most fuel efficient cars out there. Hyundai's newest compact family car, the i30, is also making waves by being named Australia's CARSGuide Car of the Year for 2007.

  • Page 20
    18

  • Page 21
    Challenge perceptions Connecting with Your Life 19 Our goal was to join the ranks of the biggest carmakers in the world and we achieved it. We bring the same unwavering commitment to our goal for 2008: to be a world-class brand that appeals to diverse consumers in every major market in the world.

  • Page 22
    20

  • Page 23
    Challenge perceptions Connecting with Your Life 21 Consumer Reports named the Azera(Grandeur) and Santa Fe best in their class. Strategic Vision did the same for the Azera, Santa Fe and Entourage. Our consistent focus on quality and customer satisfaction is showing.

  • Page 24
    22

  • Page 25
    Challenge perceptions Running for a Better Tomorrow 23 With new production facilities in China, India, Czech Republic and the US, we're ready to meet growing demand in key markets around the world. This is just part of our strategy to grow globally and secure business locally.

  • Page 26
    24

  • Page 27
    Challenge perceptions Running for a Better Tomorrow 25 The global market just isn't the same: diverse markets need diverse solutions. We leverage a global network with local knowledge to take our cars to every corner of the world, whether it's well established or just emerging.

  • Page 28
    26

  • Page 29
    Challenge perceptions Moving into the Next World 27 From low-emission engines to high efficiency powertrains to hybrid cars, we have a responsibility to the environment and we're investing in it. We're taking a critical look at how we can build safer, cleaner and better performing cars.

  • Page 30
    28

  • Page 31
    Challenge perceptions Moving into the Next World 29 We're taking the lead on corporate sustainability by introducing a new corporate social responsibility network that will promote the exchange of new ideas and act on them. It's not going to change the world but it's a move in the right direction...

  • Page 32
    30

  • Page 33
    31 To us at Hyundai Motor Company, it means expanding our product line to appeal to different markets around the world and raising the bar on quality and customer satisfaction. We made big changes in 2007 from the way we manage our business to the way we build our cars. We're moving forward with ...

  • Page 34
    ...top of improved labor-management relations in the form of a no strike collective wage agreement. Strong international sales were backed by brand recognition in markets around the world. In India, we completed construction of our 2nd production facility. In Europe, the newly released i30 was met with...

  • Page 35
    ... for 2008 Our goal is to reach a record-breaking 3,000,000 units sold for a total of 46 trillion Korean Won in sales. To achieve this goal, production will be expanded in all of our domestic and overseas facilities. In Korea, we plan to increase the production of the Elantra (Avante) in response to...

  • Page 36
    ...marketing knowledge, was the driver behind the new i30 and i10. The i30 was an instant success in both Korea and Europe, while the i10 was named Car of the Year in India. The i10, first produced for Indian consumers, is now exported to Europe, the Middle East and Latin America. Hyundai Motor Company...

  • Page 37
    ... introducing digital technologies in the design and production stages. Research and development is guided by the principles of CAP: Communication, Action, Performance and DFSS: Design for Six Sigma. 5. Hyundai Motor Company and SABIC Innovative Plastics present QarmaQ, a revolutionary concept car...

  • Page 38
    ... the launch of the new Matrix (Lavita). The increased capacity is in response to more demand for Hyundai cars in Europe. Our facility in the Czech Republic is expected to reach operational capacity by 2009 and will produce 200,000 units annually. Its completion will mean that Hyundai Motor Company...

  • Page 39
    ...of a new production facility(CKD) in Brazil, Hyundai Motor Company now has complete operating capabilities in that country, from production to marketing to sales and after service. 5 6. A year after its groundbreaking, the 2nd manufacturing facility in India commemorates the end of construction and...

  • Page 40
    ... by the depreciating US dollar against the strengthening Korean Won, Hyundai Motor Company exported a total of 1,076,070 units. One reason for this success is the efficiency of overseas production facilities, which produced a total of 911,342 units. The Hyundai-Kia Motor Group is now the 6th largest...

  • Page 41
    ...Hyundai Motor Company will launch its luxury sports car, the BK, in the second half of the year to join the Genesis as our highly competitive entries in the luxury car market. Our superior customer service and competitive pricing are a strong alternative to the luxury import cars available to Korean...

  • Page 42
    ... new to the Korean market. Hyundai Motor Company also sponsored a number of high-profile events across the country, including fashion shows and the Green Concert. Our commitment to community and cultural development is seen in our sponsorship of cultural events in Korea. We launched H-art at the...

  • Page 43
    ... and the Hyundai Motor FIFA online game tournament. As an official sponsor of UEFA Euro 2008, we are presenting the Goodwill Ball Road Show, soccer skills competition, victory slogan contest, Euro 2008 best fan contest, Euro online program and EuroFest. A total of 265 Hyundai cars will be...

  • Page 44
    .... Hyundai Motor Company has publicly advocated environmental responsibility since 2003 through a concerted set of policies and actions. Examples of this are the research and development of environmental technologies and environmental education for employees. The efforts of our industrial resources...

  • Page 45
    ... currently work with over 4,000 companies employing over a million employees. Hyundai Motor Company is working with the city of Ulsan to restore the Taehwa River after a recent environmental disaster in the area. The disaster has negatively affected not only the ecosystem but also the local economy...

  • Page 46
    ...SOCIAL RESPONSIBILITY 1 Working Globally While Promoting Local Growth An important part of our business as a global company is working closely with local partners and communities. With that in mind, we implemented the program 'moving together as one' this year to coordinate global and local growth...

  • Page 47
    ... to improve social conditions in the communities they operate in. The program allows companies to exchange information online. 4 5 4. Hyundai Assan Otomotive Sanayi grants the 'Hyundai Torches' scholarship to those in need 5. Hyundai Motor Company Corporate Social Responsibility on the web: http...

  • Page 48
    46 Financial Highlights

  • Page 49
    ...Connecting with Your Life 47 Financial Statements 48 Independent Auditors' Report 49 Consolidated Balance Sheets 52 Consolidated Statements of Income 54 Consolidated Statements of Changes in Shareholders' Equity 56 Consolidated Statements of Cash Flows 59 Notes to Consolidated Financial Statements

  • Page 50
    ... consolidated balance sheets of Hyundai Motor Company (the "Company") and its subsidiaries as of December 31, 2007 and 2006, and the related consolidated statements of income, changes in shareholders' equity and cash flows for the years then ended, all expressed in Korean Won. These financial...

  • Page 51
    ... Short-term financial instruments (Note 3) Short-term investment securities (Note 5) Trade notes and accounts receivable, less allowance for doubtful accounts and present value discount account of million in 2007 and (Note 16) Trade notes and accounts receivable - other (Notes 16 and 25) Inventories...

  • Page 52
    50 HYUNDAI MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (CONTINUED) AS OF DECEMBER 31, 2007 AND 2006 Korean Won (In millions) Translation into U.S. Dollars (Note 2) (In thousands) LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term borrowings (Note 14) Current ...

  • Page 53
    HYUNDAI MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (CONTINUED) AS OF DECEMBER 31, 2007 AND 2006 51 Korean Won (In millions) Translation into U.S. Dollars (Note 2) (In thousands) LIABILITIES AND SHAREHOLDERS' EQUITY Shareholders' equity: Capital stock (Note 18) Capital surplus ...

  • Page 54
    52 HYUNDAI MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 Korean Won (In millions, except per share amounts) Translation into U.S. Dollars (Note 2) (In thousands, except per share amounts) 2007 Sales (Notes 24, 25, 26 and 30) ...

  • Page 55
    HYUNDAI MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 53 Korean Won (In millions, except per share amounts) Translation into U.S. Dollars (Note 2) (In thousands, except per share amounts) 2007 Income before income tax ...

  • Page 56
    54 HYUNDAI MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 Korean Won (In millions) Translation into U.S. Dollars (Note 2) (In thousands) Capital stock Capital surplus Capital adjustments Accumulated ...

  • Page 57
    HYUNDAI MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 55 Korean Won (In millions) Translation into U.S. Dollars (Note 2) (In thousands) Capital stock Capital surplus Capital adjustments ...

  • Page 58
    56 HYUNDAI MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 Korean Won (In millions) Translation into U.S. Dollars (Note 2) (In thousands) 2007 Cash flows from operating activities: Net income Adjustments to reconcile net income ...

  • Page 59
    HYUNDAI MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 57 Korean Won (In millions) Translation into U.S. Dollars (Note 2) (In thousands) 2007 Cash flows from operating activities: Changes in operating assets and ...

  • Page 60
    58 HYUNDAI MOTOR COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 Korean Won (In millions) Translation into U.S. Dollars (Note 2) (In thousands) 2007 Cash flows from investing activities: Cash outflows from investing ...

  • Page 61
    ... (KIA) Hyundai Capital Service Inc. Hyundai Card Co., Ltd. Hyundai HYSCO Hyundai Rotem (Formerly, ROTEM) WIA Corporation (WIA) Hyundai Autonet Co., Ltd. (Autonet) Hyundai Powertech Dymos Inc. (DYMOS) KEFICO Corporation Seoul Metro 9th line Hyundai Commercial Co., Ltd. Autoever Systems Corp...

  • Page 62
    ... Motor Finance Company (HMFC) Hyundai Auto Canada (HAC) Stampted Metal America Research Technology Inc. (SMARTI) Stampted Metal America Research Technology LLC Hyundai Translead (HT) Hyundai America Technical Center Inc. (HATCI) World Marketing Group LLC (WMG) Hyundai Information Service North...

  • Page 63
    HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 61 Shareholders' equity as of December 31, 2007 Subsidiaries Nature of Business Korean Won(*1) Translation into (In millions) U.S. Dollars (Note 2) (In thousands) Shares (*2) Percentage ...

  • Page 64
    ...ownership. In 2007, the Company added two domestic companies; Seoul Metro 9th line and Hyundai Commercial Inc., and three overseas companies: Hysco Steel India, Ltd., Rotem USA Corporation and Rotem Equipments (Beijing) Co., Ltd. , to its consolidated subsidiaries due to the acquisition of ownership...

  • Page 65
    HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 63 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of Consolidated Financial Statement Presentation The Company maintains its official accounting records in Korean Won and prepares ...

  • Page 66
    ...subsidiary's stock is accounted for as consolidated capital surplus. Profits and losses on inter-company sales of products, property or other assets are eliminated in the consolidated financial statements based on the gross profit or loss recognized. Unrealized gains and losses arising from sales by...

  • Page 67
    HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 65 Investments in Securities Other Than Those Accounted for Using the Equity Method Classification of Securities At acquisition, the Company classifies securities into one of the three ...

  • Page 68
    ... TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 The Company's portion of profits and losses resulting from inter-company transactions that are recognized in assets, such as inventories and fixed assets, are eliminated and charged to equity securities accounted...

  • Page 69
    HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 67 If the recoverable amount of an intangible asset becomes less than its carrying amount as a result of obsolescence, sharp decline in market value or other causes of impairment, the ...

  • Page 70
    68 HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 Accrued Warranties and Product Liabilities The Company and its subsidiaries generally provide a warranty to the ultimate consumer for each product sold and accrues warranty expense at...

  • Page 71
    HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 69 each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. ...

  • Page 72
    70 HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 Diluted earnings per common share in 2007 and 2006 is computed as follows: Korean Won (In millions except per share amounts) Translation into U.S. Dollars (Note 2) (In thousands ...

  • Page 73
    HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 71 5. SHORT-TERM INVESTMENT SECURITIES: (1) Short-term investment securities as of December 31, 2007 consist of the following: Korean Won (In millions) Translation into U.S. Dollars (...

  • Page 74
    ...Hyundai Heavy Industries Co., Ltd. Hyundai Oil Refinery Co., Ltd. Daewoo International Corporation Hyundai Development Company Hyundai Merchant Marine Co., Ltd. Doosan Yonhap Capital Co., Ltd. Hyundai H&S Hyundai Finance Corporation KT Freetel Korea Information Service, Inc. ENOVA System SK Networks...

  • Page 75
    ... Co., Ltd. Koryo Co., Ltd. Daejoo Heavy Industry Co. Ltd. Micro Infinity Wia Trade Corporation (*3) NGVTEK.com (*3) Hyundai RB Co., Ltd. Clean Air Technology Inc. International Convention Center Jeju Co., Ltd. Korea Credit Card Electronic Settlement Service Co., Ltd. Bs Humantek Co., Ltd. Hankyoreh...

  • Page 76
    ... Corporation Hyundai Development Company Hyundai Merchant Marine Co., Ltd. Doosan Yonhap Capital Co., Ltd. Hyundai Finance Corporation KT Freetel Korea Information Service, Inc. ENOVA System SK Networks Co., Ltd. (*1) SeAH Besteel Co., Ltd. KOENTEC LG Telecom Jin Heung Mutual Savings Bank Hyundai...

  • Page 77
    HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 75 Korean Won (In millions) Translation into U.S. Dollars (Note 2) (In thousands) (%) Companies Acquisition cost Book value Book value Ownership percentage (*2) International ...

  • Page 78
    76 HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 Debt securities, classified into available-for-sale securities, included in long-term investment securities as of December 31, 2006 consist of the following: Korean Won (In millions) ...

  • Page 79
    ....00 50.50 100.00 100.00 100.00 100.00 Hyundai Steel Company Korea Space & Aircraft Co., Ltd. Hyundai MOBIS Eukor Car Carriers, Inc.(*2) HK Mutual Savings Bank Korea Economy Daily Kia Tigers Co., Ltd. (*1) Donghui Auto Co., Ltd. Asset Management Co., Ltd. TRW Steering Co., Ltd. Wisco Co., Ltd. Iljin...

  • Page 80
    78 HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 Korean Won (In millions) Translation into U.S. Dollars (Note 2) (In thousands) (%) Affiliated company Acquisition cost Net equity value Book value Acquisition cost Net equity ...

  • Page 81
    HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 79 Korean Won (In millions) Translation into U.S. Dollars (Note 2) (In thousands) (%) Affiliated company Acquisition cost Net equity value Book value Acquisition cost Net equity ...

  • Page 82
    ...A.S. Yan Ji Kia Motors A/S Autoever systems Europe GmbH Hyundai Motor Japan R&D Center Inc. Hysco Czech S.R.O Autoever Systems China Co., Ltd. Autoever Systems India Pvt. Ltd. Eukor Car Carriers Singapore Pte. Hyundai Electronics (Tianjin) Co., Ltd. Hysco steel India, Ltd Rotem USA Corporation Rotem...

  • Page 83
    ...Ltd. Autoever Systems India Pvt. Ltd. Eukor Car Carriers Singapore Pte. Hyundai Electronics (Tianjin) Co., Ltd. Hysco Steel India, Ltd. Rotem Equipments (Beijing) Co., Ltd. Rotem USA Corporation Hyundai Information System North America, LLC Hysco Slovakia S.R.O Global Engine Alliance, LLC Kia Motors...

  • Page 84
    82 HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 (3) Condensed financial information of the affiliates as of and for the year ended December 31, 2007 is as follows: Korean Won (In millions) Translation into U.S. Dollars (Note 2) (In...

  • Page 85
    ... Dollars (Note 2) (In thousands) Affiliated company Hyundai Steel Company Hyundai MOBIS HK Mutual Savings Bank Price per share 79,000 87,200 7,900 Number of shares 18,159,517 15,558,120 4,760,173 Market value 1,434,602 1,356,668 37,605 Market value $1,529,100 1,446,033 40,082 8. LEASED ASSETS...

  • Page 86
    84 HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 10. PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipments as of December 31, 2007 and 2006 consist of the following: Korean Won (In millions) Translation into U.S. Dollars (...

  • Page 87
    HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 85 The changes in property, plant and equipment in 2006 are as follows: Korean Won (In millions) Translation into U.S. Dollars (Note 2) (In thousands) Beginning of year Land Buildings ...

  • Page 88
    86 HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 The changes in intangibles in 2007 are as follows: Korean Won (In millions) Translation into U.S. Dollars (Note 2) (In thousands) Description Goodwill Negative goodwill Industrial...

  • Page 89
    ...are included in the consolidated financial statements are Hyundai Capital Service Inc., Hyundai Card Co., Ltd., Hyundai Commercial Inc., Hyundai Motor Finance Company (HMFC) and Hyundai Auto Canada Captive Insurance Incorporation (HACCII) in 2007 and 2006. Other financial business liabilities of 131...

  • Page 90
    ...HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 14. SHORT-TERM BORROWINGS: Short-term borrowings as of December 31, 2007 and 2006 consist of the following: Annual interest rate (%) Korean Won (In millions) Translation into U.S. Dollars...

  • Page 91
    HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 89 Debentures as of December 31, 2007 and 2006 consist of the following: Korean Won (In millions) Translation into U.S. Dollars (Note 2) (In thousands) Description Maturity Annual ...

  • Page 92
    ...609,256 thousand). (2) The Company's and its domestic subsidiaries' certain bank deposits and investment securities, including 23,993,466 shares of Kia Motors Corporation, 2,681,646 shares of Eukor Car Carriers Inc., 12,005 shares of Eukor Car Carriers Singapore Pte Ltd. and some government bonds...

  • Page 93
    HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 91 Capital stock as of December 31, 2006 consists of the following: Authorized Issued Par value Korean Won (In millions) Translation into U.S. Dollars (Note 2) (In thousands) $1,229...

  • Page 94
    92 HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 (1) Treasury stock For the stabilization of stock price, the Company has treasury stock consisting of 11,071,741 common shares and 2,950,960 preferred shares with a carrying value of ...

  • Page 95
    HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 93 21. STATEMENTS OF COMPREHENSIVE INCOME: Statements of comprehensive income in 2007 and 2006 consist of the following: Korean Won (In millions) Translation into U.S. Dollars (Note 2) (...

  • Page 96
    ... HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 The components of accumulated temporary differences and deferred tax assets (liabilities) as of December 31, 2007 are as follows: Korean Won (In millions) Translation into U.S. Dollars...

  • Page 97
    HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 95 The temporary differences of future. 218,889 million (US$233,307 thousand) and 317,555 million (US$ 338,473thousand) as of December 31, 2007 and 2006, respectively, were not ...

  • Page 98
    ... and consolidated subsidiaries are as follows: Korean Won (In millions) Translation into U.S. Dollars (Note 2) (In thousands) 2007 Company's income Kia Motors Corporation Dymos Inc. Hyundai Capital Service Inc. WIA Corporation KEFICO Corporation Hyundai HYSCO Hyundai Powertech Autoever Systems Corp...

  • Page 99
    ... FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 97 Korean Won (In millions) Translation into U.S. Dollars (Note 2) (In thousands) 2007 Company's income Hyundai Card Co., Ltd. METIA Co., Ltd. Hyundai Rotem (Formerly, ROTEM) Partecs Co. Haevichi Resort Automobile Industrial...

  • Page 100
    ...) Translation into U.S. Dollars (Note 2) (In thousands) 2007 Company's receivable Kia Motors Corporation Dymos Inc. WIA Corporation Hyundai Powertech Hyundai Rotem (Formerly, ROTEM) Autoever Systems Corp. Hyundai Card KEFICO Corporation Hyundai HYSCO Hyundai Capital Service Inc. Hyundai Autonet Co...

  • Page 101
    ... Corp. Kia Motors Corporation Hyundai Capital Service Inc. Hyundai Card Hyundai HYSCO WIA Corporation Dymos Inc. Hyundai Rotem (Formerly, ROTEM) Hyundai Autonet Co., Ltd. KEFICO Corporation Hyundai Powertech Kia Motors Slovakia. s.r.o Hyundai Motor India Hyundai Information Service North America...

  • Page 102
    ...America Corp Hyundai-Kia Machine Europe Gmbh Wia Automotive Parts Hyundai Motor India Hyundai Powertech Hyundai Rotem (Formerly, ROTEM) Kia Motors Corporation Kia Motors Corporation WIA Corporation Autoever Systems Corp Dymos Inc. Partecs Co. Hyundai HYSCO Kia Motors Corporation Hyundai Card WIA...

  • Page 103
    ... 24,198 1,230 Hyundai HYSCO Hysco America Company. Inc. Hysco Slovakia, s.r.o. Dong Feng Yueda Kia Motor Co., Ltd. Hyundai Motor India METIA Co., Ltd. WIA Corporation Kia Motors Corporation Dymos Inc. Automobile Industrial Ace Corporation WIA Corporation Kia Motors Corporation Dymos Inc. Mseat...

  • Page 104
    ...Deutschland GmbH Kia Motors Iberia Kia Automobiles France Kia Motors Czech s.r.o. Kia Motors Sweden AB Kia Motors Sales Slovensko S.r.o. Kia Canada, Inc. Kia Motors Slovensko S.r.o. Hyundai Motor Manufacturing Alabama, LLC Hyundai Motor America Hyundai Auto Canada Hyundai Motor Finance Company 3,392...

  • Page 105
    ... Corp. Kia Motors Corporation Hyundai Capital Service Inc. Hyundai Card Hyundai HYSCO WIA Corporation Dymos Inc. Hyundai Rotem (Formerly, ROTEM) Hyundai Autonet Co., Ltd. KEFICO Corporation Hyundai Powertech Kia Motors Slovakia. s.r.o Hyundai Motor India Hyundai Information Service North America...

  • Page 106
    ...America Corp Hyundai-Kia Machine Europe Gmbh Wia Automotive Parts Hyundai Motor India Hyundai Powertech Hyundai Rotem (Formerly, ROTEM) Kia Motors Corporation Kia Motors Corporation WIA Corporation Autoever Systems Corp Dymos Inc. Partecs Co. Hyundai HYSCO Kia Motors Corporation Hyundai Card WIA...

  • Page 107
    ... Card Hyundai HYSCO M & Soft Co., Ltd (Formerly, Mando Map & Soft Co., Ltd.) Hyundai America Technical Center Inc. Hyundai Motor America Kia Motors Corporation Hyundai America Technical Center Inc. Hyundai Motor Finance Company Hyundai Motor Manufacturing Alabama, LLC World Marketing Group LLC Kia...

  • Page 108
    ... Deutschland GmbH Kia Motors Iberia Kia Automobiles France Kia Motors Czech s.r.o. Kia Motors Sweden AB Kia Motors Sales Slovensko S.r.o. Kia Canada, Inc. Kia Motors Slovensko S.r.o. Hyundai Motor Manufacturing Alabama, LLC Hyundai Motor America Hyundai Auto Canada Hyundai Motor Finance Company 244...

  • Page 109
    ... Motor Company Hyundai Steel Company Iljin Bearing Co., Ltd. Eukor Car Carriers Inc. Kia Motors Corporation Hyundai Mobis Asset Management Co., Ltd. Glovis Co., Ltd. Donghui Auto Co., Ltd. Eukor Car Carriers Inc. In 2006, significant transactions with related parties other than the consolidated...

  • Page 110
    ...31,915 Kia Motors Corporation Hyundai Mobis Asset Management Co., Ltd. Glovis Co., Ltd. Eukor Car Carriers Inc. As of December 31, 2006, significant balances related to the transactions other than the consolidated subsidiaries are as follows: Korean Won (In millions) Translation into U.S. Dollars...

  • Page 111
    ...,908 198,359 200,000 675,000 17,115 499,000 25,028 Hyundai Motor Company Hyundai Capital Co., Ltd Hyundai Merchant Marine Hyundai Rotem (Formerly, ROTEM) Hyundai Motor America Hyundai Motor Manufacturing Alabama LLC Hyundai Auto Canada Hyundai Motor Finance Company Hyundai Motor Europe GmbH 317...

  • Page 112
    .... WIA Corp. Jiangsu Hyundai Hysco Steel Process Co., Ltd Beijing Lear Dymos Automotive Systems Co. Dymos India Automotive Private Limited Dymos Inc. WIA Automotive Parts Hyundai-Kia Machine America Corp. Hyundai-Kia Machine Europe GmbH Wia Trade Corporation Kia Motors Corporation Kia Motors Slovakia...

  • Page 113
    ...of December 31, 2007. These guarantees are all covered by insurance contracts, which regulate a customer and the Company as a contractor and a beneficiary, respectively. (5) The Company signed lease financial agreements with Hyundai Commercial and Hyundai Capital to promote sales of buses. According...

  • Page 114
    ... KRW USD EUR CAD HKD SGD BRL TND TWD Hyundai Card Co., Ltd. WIA Corp. Seoul Guarantee Insurance Company The Export-Import Bank of Korea Shinhan Bank Woori Bank Machinery Insurance Cooperative and others Hyundai Autonet Hyundai Motor Manufacturing Alabama LLC Goldman Sachs and other KRW 633,249 674...

  • Page 115
    ..., Hyundai Card Co., Ltd. is obliged to make early redemption for asset-backed securities. (13) WIA Corp., one of domestic subsidiaries of the Company, made a general installment financing contract with Doosan Capital Corp. and Hyundai Commercial in order to promote the sales of its machine tools...

  • Page 116
    ... and the other derivative Contract Parties Derivatives Period Number of Kia shares Initial price Credit Suisse First Boston International " " JP Morgan Chase Bank, London Branch (*) The Company has the position of seller. Equity swap Call option (*) Equity swap " September 17, 2003...

  • Page 117
    HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 115 (2) The transactions of currency options and forwards belonging to subsidiaries as of December 31, 2007 consist of the following: Gains (losses) for the term Derivatives Contract ...

  • Page 118
    ...statements of income for the years then ended, by industry under which the Company and its subsidiaries' business are classified, are as follows: Consolidated Balance Sheets as of December 31, 2007 Korean Won (In millions) Translation into U.S. Dollars (Note 2) (In thousands) ASSETS Non-financial...

  • Page 119
    HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 117 Consolidated Balance Sheets as of December 31, 2006 Korean Won (In millions) Translation into U.S. Dollars (Note 2) (In thousands) ASSETS Non-financial industry 23,854,680 ...

  • Page 120
    118 HYUNDAI MOTOR COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006 Consolidated Statements of Income for the year ended December 31, 2007 Korean Won (In millions) Translation into U.S. Dollars (Note 2) (In thousands) Non-financial industry Sales ...

  • Page 121
    ...US$ 144,841 thousand) and In addition, Hyundai Card Co., Ltd. sold its accounts written-off and overdue card assets of between book value and sales value as bad debt provisions. 417,464 million (US$ 444,963 thousand) to Hyundai Capital Service Inc. in 2007 and 2006, respectively. It recognizes the...

  • Page 122
    120 Full Line-Up Centennial(Equus) Genesis Azera(Grandeur) Sonata Elantra(Avante) Coupe(Tuscani) HYUNDAI MOTOR COMPANY 2007 120 Accent(Verna) Getz(New Click) i30 Veracruz Santa Fe Tucson

  • Page 123
    Challenge perceptions 121 H-1 TQ(Grand Starex) H-100 Truck(Porter II) H-1 Truck(Libero) e-Mighty Mega Truck Trago Cargo Truck Trago Dump Truck Trago Tractor e-County New Super Aero City Universe

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