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ANNUAL REPORT 2014
HYUNDAI MOTOR COMPANY
Today, automobiles are no longer just a means of transportation.
Automobiles, as a living space, mean different things to different customers.
As people’s perception of automobiles changed, so did the perception of Hyundai Motor as a brand.
People expect more from Hyundai Motor. Therefore, the challenge now is to deliver greater value to our customers.
Under the new slogan ‘New thinking. New Possibilities.’, Hyundai Motor is living up to the
new challenge by creating new value for customers and society.
Hyundai Motor Company
www.hyundai.com
Copyright © 2015 Hyundai Motor Company. All Rights Reserved.
www.facebook.com/AboutHyundai
www.youtube.com/AboutHyundai
www.twitter.com/About_Hyundai
HYUNDAI MOTOR COMPANY ANNUAL REPORT 2014
LIFETIME
PARTNER IN
AUTOMOBILES
AND BEYOND

Table of contents

  • Page 1
    ... ANNUAL REPORT 2014 HYUNDAI MOTOR COMPANY ANNUAL REPORT 2014 Hyundai Motor Company www.hyundai.com Copyright © 2015 Hyundai Motor Company. All Rights Reserved. www.facebook.com/AboutHyundai www.youtube.com/AboutHyundai www.twitter.com/About_Hyundai Today, automobiles are no longer just a means...

  • Page 2
    ...FOR YOUR BRILLIANT MOMENTS HYUNDAI MOTOR COMPANY ANNUAL REPORT 2014 C O N T E N T S PROLOGUE FINANCIAL HIGHLIGHTS & BUSINESS HIGHLIGHTS MESSAGE FROM THE CEO 10 - 13 04 - 09 NEW THINKING. BRAND BASIC TECH DESIGN PHILOSOPHY BLUE DRIVE | CONCEPT CAR WRC | N BRAND HUMAN POWER 16 - 21 22 - 27...

  • Page 3
    2010 66,985,271 2011 77,797,895 Unit : KRW Million 2012 84,469,721 2013 87,307,636 SALES REVENUE 89,256,319 2014 89,256,319 2010 3,701 2011 4,099 Unit : Thousand 2012 4,392 2013 4,621 GLOBAL RETAIL SALES 4,835 2014 4,835

  • Page 4
    ...66,985,271 2.2% 2011 2012 2013 2014 1 2 3 Business results of BHMC is accounted in equity income accounting Net income includes non-controlling interest Basic earnings per common share attributable to the owners of the Parent Company 2010 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION Unit : KRW...

  • Page 5
    ... 2011 3,724 2012 3,980 2013 4,151 2014 1. Korea 2. N. America 3. Europe 684 864 642 1,700 946 14.1% 17.9% 13.3% 35.2% 19.6% 1. Small PC 2. Mid-Large PC 3. RV 4. CV 2,909 853 908 292 58.6% 17.2% 18.3% 5.9% Korea Overseas 4. Asia 5. Others SALES BY PLANT GLOBAL MARKET SHARE *Source : IHS Global...

  • Page 6
    HYUNDAI MOTOR COMPANY Annual Report 2014 Message from the CEO "We will strengthen our future competitiveness by making bold investments to develop innovative technologies, strengthen our product development capacity, enhance the quality of our customer service and increase our brand value as a ...

  • Page 7
    ...China. Our flagship sedan model, Genesis received great reviews, as did the new Sonata and i10. Hyundai Motor reaffirmed competitiveness in next-generation technology with the Tucson (ix35) FCEV's powertrain being listed as one of Ward's 10 Best Engines. Moreover, Hyundai's brand value has increased...

  • Page 8
    NEW THINKING. NEW THINKING, NEW VALUES THE WORLD OF MODERN PREMIUM Even today's most advanced products can quickly become outdated. Hyundai Motor is striving to create cars today which will still be the best tomorrow. This is Hyundai Motor's unique way of creating new experiences and new values.

  • Page 9
    ... BEYOND AUTOMOBILES Hyundai Motor's customer service is continuously evolving just as the technology and quality of our products are. Innovation is key to our desire to become not just a car seller but a company that engages with its customers and understands their needs. In 2013, we began our...

  • Page 10
    ... and culture, and engage with customers in a new way. We recently opened a flagship dealership in Sao Paulo designed using our new ideas and are actively upgrading our facilities and introducing new services throughout our over 6,000 dealerships worldwide. We also opened Hyundai Motorstudio, which...

  • Page 11
    HYUNDAI MOTOR COMPANY Annual Report 2014 Brilliant Art REDEFINING THE RELATIONSHIP BETWEEN A BRAND AND ART BRAND 20 / 21 © Tate Photography © Andrew Dunkley, Tate Photography SUPPORTING ART AND BEING INSPIRED It takes a lot of inspiration to develop all the technologies involved in ...

  • Page 12
    HYUNDAI MOTOR COMPANY Annual Report 2014 Basic Tech 01 BASIC TECH EVOLUTION : MAKING THE BEST ENGINE IN THE WORLD 22 / 23 Maximum power output of 1.6 Gamma GDi Engine (One of '2011 Ward's 10 Best Engines') A DREAM ENGINE FOR PREMIUM PERFORMANCE The engine is the heart of a car and having a ...

  • Page 13
    ... order to provide the best possible protection for people inside and outside of Hyundai Motor cars, in all possible situations. Vehicle Dynamic Control (VDC), Advanced Traction Cornering Control (ATCC), Vehicle Stability Management USE OF ADVANCED HIGH STRENGTH STEEL High structural rigidity is key...

  • Page 14
    ... and introduced various smart technologies such as 'Blue Link' and the Advanced Smart Cruise Control (ASCC) system. Hyundai Motor is currently focusing its efforts on the development of the autonomous car, which will be the ultimate smart car. ㆍ Internet access ㆍ App store ㆍ Smartphone remote...

  • Page 15
    HYUNDAI MOTOR COMPANY Annual Report 2014 Design Philosophy DESIGN PHILOSOPHY 28 / 29 A DESIGN INSPIRED BY NATURE, ART AND PEOPLE 'FLUIDIC SCULPTURE' : EVOLUTION IN AESTHETICS OF AUTOMOBILE DESIGN Great designs can considerably increase the value of advanced technologies by making them shine. '...

  • Page 16
    ...Hyundai Motor recently launched 'My Baby' projects for both Korea-based and overseas based designers. The main design team at Namyang Technology Research Center is also collaborating with overseas design studios in Europe, the US and Japan, in order to strengthen their competitiveness. Hyundai Motor...

  • Page 17
    ... technology strategy, designed to reduce CO2 emissions. It is also a brand name for vehicles equipped with fuel-saving technologies. Hyundai Motor chose 'Blue Drive' as its strategy as a statement to its commitment to protect the environment and contribute to the sustainability of all forms of life...

  • Page 18
    ... vehicle. Hyundai Motor successfully began mass production of the Tucson (ix35) Fuel Cell in 2013, establishing it as the 'First Mover' in the FCEV market. In 2014, Ward's Auto listed the fuel cell of the Tucson (ix35) Fuel Cell as one of '2015 Ward's 10 Best Engines', making Hyundai Motor the first...

  • Page 19
    HYUNDAI MOTOR COMPANY Annual Report 2014 Blue Drive History 2009.7. ~ 2013.11. GREEN CAR PROJECTS The Hyundai Motor Group plans to establish a full lineup of green models ranging from compact cars to SUVs by 2020. The green automobile market is expected to expand from 2 million units in 2014 to ...

  • Page 20
    HYUNDAI MOTOR COMPANY Annual Report 2014 WRC Hyundai Motorsport WRC TOWARDS THE CHAMPION OF THE FUTURE CREATING NEW POSSIBILITIES FOR HYUNDAI MOTOR WITH WRC WRC 38 / 39 WRC : TESTING TECHNOLOGIES TO THE EXTREME The World Rally Championship (WRC) is regarded as one of the two most important ...

  • Page 21
    ...and WRC fans. For example, Hyundai Motor established a hospitality facility at the rally sites. It is a combination of a rally car maintenance center and a rest area for rally fans, Hyundai Motor dealers, reporters and invited customers. We have also launched a new official Hyundai Motor WRC website...

  • Page 22
    ... in WRC. The 'N' stands for Hyundai Motor's Namyang Technology Research Center and signifies Namyang Technology Research Center's commitment to motor sports and the development of high performance models. In 2014, Hyundai World Rally Team was placed 1st at the Rally Deutschland. The i20 WRC car was...

  • Page 23
    ... MOTOR COMPANY Annual Report 2014 Human Power THE PEOPLE BEHIND HYUNDAI MOTOR AND THE 'MODERN PREMIUM' BRAND HUMAN POWER 44 / 45 Extreme weather testing on Mount Evans, US. Challengers unafraid of failure, Creators who realize new values, Pioneers who venture into the future, Communicators...

  • Page 24
    ... pioneered uncharted paths that others did not dare to explore. Hyundai Motor has walked new paths creating new possibilities along the way. Hyundai Motor is on a journey for new possibilities everywhere in the world for the future. We invite our customers to join our journey into a brighter future.

  • Page 25
    ... the five core values, Hyundai Motor plans to foster an outstanding corporate culture which will match Hyundai Motor's growing reputation. CUSTOMER We promote a customerdriven corporate culture by providing the best quality and impeccable service with all values centered on our customers. CHALLENGE...

  • Page 26
    ...ㆍ Launch of Avante (Elantra) ㆍ Completion of Jeonju commercial vehicle manufacturing plant ㆍ Hyundai Motor Europe Technical Center (HMETC) opens 1996 ㆍ Inauguration of the Namyang Technology Research Center ㆍ Cumulative production surpasses 10 million units 1997 ㆍ Independently developed...

  • Page 27
    ... named '10 Best Engines Winners' by Ward's Auto 2012 ~ 2013 2012 ㆍ Avante (Elantra) awarded 'North American Car of the Year' ㆍ Launch of New Santa Fe, i40 Saloon, and Veloster Turbo ㆍNo. 53 in Global Brand Value ㆍ Established the Brazil plant ㆍ Tucson (ix35) Fuel Cell supplied to Europe...

  • Page 28
    ... companies included in the Best 100 HYUNDAI MOTOR In 2014, Hyundai Motor strengthened its market leadership with sales of 4,963,535 units worldwide, which was a 4.9% Hyundai Motor's brand value reached the global Top 40 at 10.4 billion USD according to Interbrand's '2014 Best 100 Number of models...

  • Page 29
    ... will work towards our ultimate goal to achieve sustained growth as a cherished brand. Santa Fe Sonata Tucson (ix35) Accent Avante (Elantra) 243 472 540 710 928 Hyundai Motor has expanded its business into the US and China, the two largest automobile markets in the world, as well as Europe, home of...

  • Page 30
    ... design centers. Hyundai Motor is realizing its vision of 'Modern Premium' and fulfilling needs of its customers using its global network. Ulsan Plant · The world's single largest automobile plant · Five independent manufacturing plants, engine and transmission plant · Export shipment dock, test...

  • Page 31
    HYUNDAI MOTOR COMPANY Annual Report 2014 America Technical Center · State-of-the-art R&D center located in Ann Arbor, Michigan · Operates Hyundai California Design & Technical Center, and driving tracks California Proving Ground · Located in the Mojave Desert, Los Angeles · The longest track ...

  • Page 32
    ... in Ann Arbor, Michigan state, Hyundai Motor Europe Technical Center in Frankfurt, Germany, Hyundai Motor Japan R&D Center in Yokohama, Japan and Indian Technical Research Center in Hyderabad. Each overseas research center directly communicates with the Namyang Technology Research Center in Korea...

  • Page 33
    ...strategy as other global automakers, we analyze changing trends and proactively implement creative solutions which coincide with Hyundai Motor's 1 Non-luxury brand (JD Power) 2014 2013 2012 1st (94 pts.) 5 (106 pts.) 9th (107 pts.) th management practices. All global companies invest in quality...

  • Page 34
    ... COMPANY Annual Report 2014 Sponsoring international football events Hyundai Motor began its association with FIFA and UEFA in 1999 and has supported all FIFA competitions including the 2002, 2006 and 2010 World Cups in Korea-Japan, Germany and South Africa respectively. Customer Global Marketing...

  • Page 35
    ... adequate work processes, work manual and human resources, organizational capacity and financial resources to cope with the new policy. Reducing emissions at manufacturing plants Hyundai Motor is managing greenhouse gas emissions from all operation sites including manufacturing plants, R&D centers...

  • Page 36
    ... MOTOR COMPANY Annual Report 2014 MOVING THE WORLD TOGETHER FOR PEOPLE AND ENVIRONMENT Corporate Social Responsibility Hyundai Motor has chosen to work on CSR activities which focus on traffic safety, transport service improvement and environmental protection. As a leading automobile manufacturer...

  • Page 37
    ... Dream Center is currently under construction in Phnom Penh, Cambodia and will be completed in early 2015. Hyundai-KOICA Dream Center was recognized as a Creating Shared Value (CSV) Model that creates value for both society and the company through Hyundai Motor's core technology, and was awarded the...

  • Page 38
    HYUNDAI MOTOR COMPANY Annual Report 2014 Key Activities of the BOD in 2014 CORPORATE GOVERNANCE AND BOARD OF DIRECTORS Meetings 1 General Extraordinary Extraordinary Extraordinary 2 General 3rd General Extraordinary nd st Date Jan. 23, 2014 Feb. 20, 2014 Mar. 14, 2014 Mar. 31, 2014 Apr. 24, 2014...

  • Page 39
    HYUNDAI MOTOR COMPANY Annual Report 2014 INDEPENDENT AUDITORS' REPORT English Translation of Independent Auditors' Report Originally Issued in Korean on March 3, 2015 To the Shareholders and the Board of Directors of Hyundai Motor Company: FINANCIAL STATEMENTS HYUNDAI MOTOR COMPANY AND ITS ...

  • Page 40
    ... POSITION AS OF DECEMBER 31, 2014 AND 2013 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF DECEMBER 31, 2014 AND 2013 (CONTINUED) In millions of Korean Won In millions of Korean Won ASSETS Current assets: Cash and cash equivalents Short-term financial instruments Trade notes and accounts...

  • Page 41
    ...year Other comprehensive income (expenses): Items that will not be reclassified subsequently to profit or loss: Remeasurements of defined benefit plans Changes in retained earnings of equity-accounted investees, net 2014 ￦ 7,649,468 2013 ￦ 8,993,497 25,38 30 26,30 11,580,057 7,549,986 (379...

  • Page 42
    ... of Korean Won Capital stock Balance at January 1, 2013 Comprehensive income : Profit for the year Gain on AFS financial assets, net Gain on valuation of cash flow hedge derivatives, net Changes in valuation of equity-accounted investees, net Remeasurements of defined benefit plans Loss on foreign...

  • Page 43
    HYUNDAI MOTOR COMPANY Annual Report 2014 CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 (CONTINUED) In millions of Korean Won In millions of Korean Won 2014 Cash flows from...

  • Page 44
    ...American Research Technology LLC Hyundai America Technical Center, Inc. (HATCI) Rotem USA Corporation Hyundai Auto Canada Corp. (HAC) Hyundai Auto Canada Captive Insurance Inc. (HACCI) Hyundai Capital Canada Inc. (HCCA) Hyundai Capital Lease Inc. Hyundai Motor India Limited (HMI) Hyundai Motor India...

  • Page 45
    ..., Inc. Hyundai Capital Insurance Services, LLC Hyundai Capital Insurance Company Power Protect Extended Services, Inc. Power Protect Extended Services Florida, Inc. Nature of the business Sales Holding company Investment Financing Insurance Location Brazil Cayman Islands Korea USA Ownership...

  • Page 46
    ...￦ (921) Profit attributable to non-controlling interests Dividends paid to non-controlling interests (6) Financial support provided to consolidated structured entities As of December 31, 2014, Hyundai Card Co., Ltd. and Hyundai Capital Services, Inc., subsidiaries of the Company, have agreements...

  • Page 47
    ...to loss of the structured entity ￦ 31,209 210,023 26,491 Changes Included Name of subsidiaries Hyundai Capital Canada Inc. (HCCA) Hyundai Capital Lease Inc. Hyundai Motor Netherlands B.V. (HMNL) Hyundai Rotem Brasil Engineering Services LTD KyoboAXA Private Tomorrow Securities Investment Trust...

  • Page 48
    HYUNDAI MOTOR COMPANY Annual Report 2014 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 (10) Decrease in the Group's ownership interests in one of its subsidiary and the consequent effects on the equity attributable to the owners of the Company ...

  • Page 49
    ... can be measured reliably; â- it is probable that the economic benefits associated with the transaction will flow to the Group The Group grants award credits which the customers can redeem for awards such as free or discounted goods or services. The fair value of the award credits is estimated by...

  • Page 50
    ... of financial assets AFS equity instrument are recognized in profit or loss when the Group's right to receive payment is established. market price in an active market and whose fair value cannot be reliably measured are measured at cost. decreases and the decrease can be related objectively to...

  • Page 51
    HYUNDAI MOTOR COMPANY Annual Report 2014 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 share of losses of an associate or a joint venture exceeds the Group's interest in that associate or joint venture (which includes any long-term interests ...

  • Page 52
    ... lease term. statements of financial position represents the present value of the defined benefit obligation, less the fair value of plan assets. Defined benefit obligations are calculated by an actuary using the Projected Unit Credit Method. 2) The Group as lessee Assets held under finance leases...

  • Page 53
    HYUNDAI MOTOR COMPANY Annual Report 2014 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. A ...

  • Page 54
    ... Annual Report 2014 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 ognized in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. Hedge accounting...

  • Page 55
    HYUNDAI MOTOR COMPANY Annual Report 2014 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 3. TRADE NOTES AND ACCOUNTS RECEIVABLE: (1) Trade notes and accounts receivable as of December 31, 2014 and 2013, consist of the following: In millions of ...

  • Page 56
    HYUNDAI MOTOR COMPANY Annual Report 2014 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 (3) Equity instruments classified into AFS financial assets as of December 31, 2014 and 2013, consist of the following: In millions of Korean Won 6. ...

  • Page 57
    ... loss on the non-current assets classified as held for sale is recognized for the year ended December 31, 2014. Office equipment Others Construction in progress (*) Others include the effect of foreign exchange differences and transfers from or to other accounts. FINANCIAL STATEMENTS The changes...

  • Page 58
    HYUNDAI MOTOR COMPANY Annual Report 2014 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 10. INVESTMENT PROPERTY: (1) Investment property as of December 31, 2014 and 2013, consist of the following: In millions of Korean Won (3) The fair value of...

  • Page 59
    HYUNDAI MOTOR COMPANY Annual Report 2014 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 (2) The changes in intangible assets for the year ended December 31, 2014, are as follows: In millions of Korean Won (3) Research and development ...

  • Page 60
    ... (HMGC) (*1) Sichuan Hyundai Motor Company (CHMC) (*1) Kia Motors Corporation Hyundai Engineering & Construction Co., Ltd. Hyundai WIA Corporation Hyundai Powertech Co., Ltd. Hyundai HYSCO Co., Ltd. Hyundai Dymos Inc. HMC Investment Securities Co., Ltd. Hyundai Commercial Inc. Eukor Car Carriers Inc...

  • Page 61
    ... Name of the company BHMC BHAF WAE HMGC CHMC Kia Motors Corporation Hyundai Engineering & Construction Co., Ltd. Hyundai WIA Corporation Hyundai Powertech Co., Ltd. Hyundai HYSCO Co., Ltd. Hyundai Dymos Inc. HMC Investment Securities Co., Ltd. Hyundai Commercial Inc. Eukor Car Carriers Inc. Others...

  • Page 62
    ...the company BHMC BHAF (*) WAE HMGC CHMC Kia Motors Corporation Hyundai Engineering & Construction Co., Ltd. Hyundai WIA Corporation Hyundai Powertech Co., Ltd. Hyundai HYSCO Co., Ltd. Hyundai Dymos Inc. HMC Investment Securities Co., Ltd. (*) Hyundai Commercial Inc. (*) Eukor Car Carriers Inc Sales...

  • Page 63
    ... Hyundai Engineering & Construction Co., Ltd (*) Hyundai WIA Corporation Hyundai Powertech Co., Ltd. Hyundai HYSCO Co., Ltd. Hyundai Dymos Inc. HMC Investment Securities Co., Ltd. Hyundai Commercial Inc. Eukor Car Carriers Inc. (*) The difference between the carrying amount and the fair value...

  • Page 64
    ... except price per share (4) The changes in allowance for doubtful accounts of financial services receivables for the years ended December 31, 2014 and 2013, are as follows: In millions of Korean Won Name of the company Kia Motors Corporation Hyundai Engineering & Construction Co., Ltd. Hyundai WIA...

  • Page 65
    ... General loans Loans on trade receivables collateral Banker's Usance Short-term debentures Commercial paper Asset-backed securities Lender Citi Bank and others Kookmin Bank and others Korea Exchange Bank and others Kookmin Bank and others Annual interest rate (%) December 31, 2014 0.40~3.63 0.34...

  • Page 66
    HYUNDAI MOTOR COMPANY Annual Report 2014 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 16. PROVISIONS: (1) Provisions as of December 31, 2014 and 2013, consist of the following: In millions of Korean Won 17. OTHER FINANCIAL LIABILITIES: Other ...

  • Page 67
    ... 72,773,918 Fair value ￦ 6,872,430 14,910,783 Other liabilities Description Cash and cash equivalents Short-term and long-term financial instruments Trade notes and accounts receivable Other receivables Other financial assets Other assets Financial services receivables Financial assets at FVTPL...

  • Page 68
    ... MOTOR COMPANY Annual Report 2014 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 Fair value measurements of financial instruments by fair-value hierarchy levels as of December 31, 2014, are as follows: In millions of Korean Won The changes...

  • Page 69
    HYUNDAI MOTOR COMPANY Annual Report 2014 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 (5) Financial assets and liabilities subject to offsetting, financial... 385,049 Trade notes and accounts payable Other payables Financial liabilities at FVTPL...

  • Page 70
    ... possible alternative assumptions would not have significant effects on the fair value measurements. 20. CAPITAL STOCK: The Company's number of shares authorized is 600,000,000 shares. Common stock and preferred stock as of December 31, 2014 and 2013, consist of the following: FINANCIAL STATEMENTS...

  • Page 71
    ... of equity-accounted investees 21. CAPITAL SURPLUS: Capital surplus as of December 31, 2014 and 2013, consists of the following: In millions of Korean Won Loss on foreign operations translation, net FINANCIAL STATEMENTS Description Stock paid-in capital in excess of par value Others December...

  • Page 72
    ... MOTOR COMPANY Annual Report 2014 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 (2) The computation of the proposed dividends for the year ended December 31, 2014, is as follows: In millions of Korean Won, except per share amounts 26. SELLING...

  • Page 73
    HYUNDAI MOTOR COMPANY Annual Report 2014 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 28. FINANCE INCOME AND EXPENSES: (1) Finance income for the years ended December 31, 2014 and 2013, consist of the following: In millions of Korean Won 29. ...

  • Page 74
    HYUNDAI MOTOR COMPANY Annual Report 2014 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 30. EXPENSES BY NATURE: Expenses by nature for the years ended December 31, 2014 and 2013, consist of the following: In millions of Korean Won 32. INCOME ...

  • Page 75
    ...) Description Deferred tax charged or credited to: Loss (gain) on valuation of AFS financial assets, net Loss (gain) on valuation of cash flow hedge derivatives, net Remeasurements of defined benefit plans Changes in retained earnings of equity-accounted investees 2014 2013 ￦ 72,227 19,982 128...

  • Page 76
    HYUNDAI MOTOR COMPANY Annual Report 2014 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 (3) The amounts recognized in the consolidated statements of financial position related to defined benefit plans as of December 31, 2014 and 2013, consist of...

  • Page 77
    ..., net Cost of sales from financial services, net Others 2014 ￦ 7,649,468 2013 ￦ 8,993,497 of capital. Debt to equity ratio calculated as total liabilities divided by total equity is used as an index to manage the Group's capital. The overall capital risk management policy is consistent with...

  • Page 78
    HYUNDAI MOTOR COMPANY Annual Report 2014 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 The Group's sensitivity to a 5% change in exchange rate of the functional currency against each foreign currency on income before income tax as of December ...

  • Page 79
    HYUNDAI MOTOR COMPANY Annual Report 2014 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 (3) Derivative instrument The Group enters into derivative instrument contracts such as forwards, options and swaps to hedge its exposure to changes in ...

  • Page 80
    ... the Company Hyundai MOBIS Co., Ltd. Hyundai Life Insurance Co., Ltd. Mobis Alabama, LLC Mobis Automotive Czech s.r.o. Mobis India, Ltd. Mobis Parts America, LLC Mobis Parts Europe N.V. Mobis Module CIS, LLC Others Kia Motors Corporation Kia Motors Manufacturing Georgia, Inc. Kia Motors Russia LLC...

  • Page 81
    HYUNDAI MOTOR COMPANY Annual Report 2014 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 As of December 31, 2013, significant balances related to the transactions between the Group and related parties or affiliates by the Act were as follows: In ...

  • Page 82
    ..., 2013 2) Revolving Credit Facility Hyundai Capital Services, Inc. has a Revolving Credit Facility Agreement which credit line is USD 200 million, EUR 10 million and ￦1,645,000 million with Kookmin Bank and 19 other financial institutions, as of December 31, 2014. Total sales Inter-company sales...

  • Page 83
    HYUNDAI MOTOR COMPANY Annual Report 2014 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 (3) Assets and liabilities by operating segments for the years ended December 31, 2014 and 2013, are as follows: In millions of Korean Won (5) Non-current ...

  • Page 84
    ...SANTA FE ㆍ2014 Top Picks 2014 - Midsized SUV, Consumer Reports, US ㆍ2014 Australia's Best Cars - Best SUV $45K ~ $65K, Australia's Best Cars Magazine, Australia i30 VELOSTER ELANTRA (AVANTE) BEST SELLING CARS ix35 (TUCSON) Fuel Cell HYUNDAI MOTOR PRODUCT LINEUP 166 / 167 SONATA ix35 (TUCSON...

  • Page 85
    HYUNDAI MOTOR COMPANY Annual Report 2014 Hyundai Motor Product Lineup Passenger Cars SUV MPV / Bus Truck EQUUS (CENTENNIAL) i40 VELOSTER TURBO GRAND SANTA FE H-1 (GRAND STAREX) XCIENT DUMP GENESIS i40 SEDAN ACCENT 4DR SANTA FE H350 XCIENT CARGO HYUNDAI MOTOR PRODUCT LINEUP GENESIS...

  • Page 86
    HYUNDAI MOTOR COMPANY Annual Report 2014 MODERN PREMIUM FOR YOUR BRILLIANT MOMENTS FINANCIAL STATEMENTS / 171