Hyundai 2015 Annual Report Download

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LIFETIME
PARTNER IN
AUTOMOBILES
AND BEYOND HYUNDAI MOTOR COMPANY
ANNUAL REPORT 2015
HYUNDAI MOTOR COMPANY ANNUAL REPORT 2015
www.facebook.com/hyundaiworldwide
www.youtube.com/HyundaiWorldwide
plus.google.com/+hyundai
https://twitter.com/hyundai_global
https://www.instagram.com/hyundai_worldwide
Hyundai Motor Company
www.hyundai.com
Copyright © 2016 Hyundai Motor Company. All Rights Reserved.

Table of contents

  • Page 1
    LIFETIME PARTNER IN AUTOMOBILES AND BEYOND HYUNDAI MOTOR COMPANY ANNUAL REPORT 2015 HYUNDAI MOTOR COMPANY ANNUAL REPORT 2015 Hyundai Motor Company www.hyundai.com Copyright © 2016 Hyundai Motor Company. All Rights Reserved. www.facebook.com/hyundaiworldwide www.youtube.com/HyundaiWorldwide plus...

  • Page 2
    ...WAY OF HMC GLOBAL PRESENCE CUSTOMER VALUE : QUALITY CUSTOMER VALUE : CONVENIENCE CUSTOMER VALUE : GLOBAL MARKETING INNOVATION OF HMC COMMITMENT TO THE ENVIRONMENT COMMITMENT TO CSR HMC NETWORK FINANCIAL 78 80 176 180 CORPORATE GOVERNANCE AND BOARD OF DIRECTORS FINANCIAL STATEMENTS MILESTONES OF HMC...

  • Page 3
    ... automotive technologies and design, automobiles are still perceived as just automobiles. So, Hyundai Motor's philosophy of Modern Premium is to redefine automobiles and add more significance to our cars in our lives. In other words, the concept of Modern Premium was created to change how the world...

  • Page 4
    THE STORY OF HYUNDAI MODERN PREMIUM Our vision of Modern Premium is to provide a unique premium experience that delivers values and touches the hearts of our customers.

  • Page 5
    09

  • Page 6
    SALES REVENUE Unit : KRW Million GLOBAL RETAIL SALES Unit : Thousand 2015 2014 91,958,736 4,843 2015 89,256,319 4,835 2014 2013 2012 87,307,636 84,469,721 4,621 4,392 2013 2012 2 1 01 77,797,895 4,099 201 1 91,958,736 4,843 11 12

  • Page 7
    HYUNDAI MOTOR COMPANY Annual Report 2015 FINANCIAL HIGHLIGHTS SALES REVENUE Unit : KRW Million CONSOLIDATED STATEMENTS OF INCOME Unit : KRW Million FOR THE YEAR Sales Revenue1 Operating Income 2011 77,797,895 8,028,829 Margin(%) 10.3% 8,104,863 Margin(%) 10.4% 28,200 2012 84,469,721 8,440,601 ...

  • Page 8
    HYUNDAI MOTOR COMPANY Annual Report 2015 BUSINESS HIGHLIGHTS GLOBAL RETAIL SALES Unit : Thousand SALES BY REGION Unit : Thousand SALES BY SEGMENT Unit : Thousand 4,835 4,621 4,392 4,099 4,843 5 1 4 3 Total 2 Total 1 4 4,843 3 2 4,843 14.7% 18.5% 13.4% 34.8% 18.5% 1. Small PC 2. Mid-...

  • Page 9
    ..., mpanionship, n, meeting, co io at ip tic an ange...g, Beginnin , progress, ch nging, promise lo n, io at in ag Dream, im e lifetime become a tru tomobiles to au st ju nd yo out. Going be emium is all ab at Modern Pr wh is is th partner 6 Hyundai Mo Copyright © 201 tor Company. All Rights...

  • Page 10
    ... with customers through various contents, a brand experience space 'Hyundai Motorstudio', 'Home to Home Service' at your doorsteps, 'Before Service' on the move to meet your needs in advance, the world's first user manual applying augmented reality 'Hyundai Virtual Guide', 'Brilliant Memories' which...

  • Page 11
    ... to create new paradigms. The ever-evolving design philosophy 'Fluidic Sculpture' and our ever-advancing powertrains are also part of our efforts to realize Modern Premium. Hyundai Motor has appealed to our customers worldwide through innovative customer services and will continue to do so with more...

  • Page 12
    HYUNDAI MOTOR COMPANY Annual Report 2015 BEYOND STORIES Your new Hyundai Motor is a car built to become a partner for life. Modern Premium has multi-faceted goals; providing a new experience beyond customers' expectations, delivering customer value with new technologies, providing more people ...

  • Page 13
    HYUNDAI MOTOR COMPANY Annual Report 2015 BEYOND CARS THE MOST BELOVED BRAND HYUNDAI MOTOR IS RAISING VALUE NOT JUST AS AN AUTO MANUFACTURER BUT AS A LIFETIME PARTNER FOR OUR CUSTOMERS ALL OVER THE WORLD. THE MOST BELOVED BRAND CHANGING OUR LIVES Hyundai Motor's brand value is not simply built on ...

  • Page 14
    ... using advanced digital devices. In 2015, Hyundai Motor opened its second Hyundai Motorstudio, with floor space totaling 880 m² in Moscow, Russia. Hyundai Motorstudio Goyang, which will be the largest automobile experience center in South Korea, will open in 2017 and provide visitors with a new way...

  • Page 15
    HYUNDAI MOTOR COMPANY Annual Report 2015 BEYOND THE FUTURE FUTURE TECHNOLOGY BECOMING A LEADER IN THE GLOBAL MARKET WITH HUMANFOCUSED TECHNOLOGIES. CREATING NEW VALUES FOR CUSTOMERS actuator [Advanced safety technology roadmap] Level of automation Manually controlled Hyundai Motor has created ...

  • Page 16
    ... with homes and offices of drivers but with the network of cities or regions it is located in. Hyundai Motor plans to introduce four main service fields which include: Smart Remote Maintenance Service, Autonomous Driving, Smart Traffic, and Mobility Hub. In addition to continued R&D investment and...

  • Page 17
    ...(Tucson Fuel Cell) made it onto the 2015 Wards 10 Best Engines. Receiving this award for two consecutive years demonstrates Hyundai Motor's continued presence as a leader in advanced powertrains. Hyundai Motor's Tau engine made it onto Wards 10 Best Engines list for three consecutive years from 2008...

  • Page 18
    HYUNDAI MOTOR COMPANY Annual Report 2015 BEYOND THE WORLD FLUIDIC SCULPTURE PUSHING THE BOUNDARY OF AUTOMOTIVE DESIGN INNOVATIVE DESIGN WITH BEST ELEMENTS OF ART AND NATURE. UNIQUE DESIGN PHILOSOPHY OF HYUNDAI MOTOR 'Fluidic Sculpture' is Hyundai Motor's design philosophy which aspires to create ...

  • Page 19
    ...Hyundai Motor launched 'The Brilliant Art Project' in 2013 with the goal to enable a greater number of people to experience art. In South Korea, we are working with local artists from different genres each year and creating various art works. Hyundai Motor also hosted exhibitions for people to share...

  • Page 20
    ...-Carlo Return to WRC Hyundai Motor's high-performance 'N' models are built using technologies and experience gained through its participation in WRC. The logo 'N' stands for Hyundai Motor's Namyang Technology Research Center. Nürburgring is the world's most challenging race track in Germany, used...

  • Page 21
    ... lightweight design and one of the most aerodynamic bodies yet. Hyundai Motor is committed to building on the successful development of the RM15 as it continues to build capacity for high-performance models. 40 41 Drive Type | MR (Mid-engine Rear-wheel-drive) PT | Theta 2.0 T-GDi with 6-speed manual...

  • Page 22
    HYUNDAI MOTOR COMPANY Annual Report 2015 Blue Drive BEYOND THE DREAM THERE HAS BEEN A CLEAR PARADIGM SHIFT TOWARDS GREEN AUTOMOBILES. MAKING THE WORLD GREENER Hyundai Motor is making the transition towards a new automobile market with its 'Blue Drive' strategies. 'Blue Drive' is the name of ...

  • Page 23
    HYUNDAI MOTOR COMPANY Annual Report 2015 IONIQ HYUNDAI MOTOR'S FIRST DEDICATED GREEN MODEL DEVELOPED AS PART OF THE 'BLUE DRIVE' STRATEGY. PROJECT IONIQ INCUBATING INNOVATION FOR FUTURE MOBILITY. FOUR KEY DIRECTIONS OF PROJECT IONIQ In January 2016, Hyundai Motor launched its first unique green ...

  • Page 24
    ... will display confidence and originality; highly desirable products that present new charm through innovative styling and proportions. STRESS-FREE CUSTOMER EXPERIENCE Continuing the customer-orientated approach that flows through every Genesis model, the sales and service experience will be focused...

  • Page 25
    ... feel good, and intuitive design makes things easier to use. Intelligent design delivers a rewarding experience for users, and has a positive impact on their lives. Genesis strives to go beyond the expectations of its customers and the market whenever it shows a new model by showing a more creative...

  • Page 26
    .... Greater satisfaction and confidence will be delivered, thanks to great services and quality management. People in the global community can be happier, if corporate citizens fulfill their responsibilities better. Hyundai Motor has emerged as a leading brand in the automotive industry, thanks to the...

  • Page 27
    HYUNDAI MOTOR COMPANY Annual Report 2015 CEO'S MESSAGE The global auto industry is experiencing ever accelerating changes, fueled by a volatile business environment, increasing competition and structural changes due to the introduction of cutting-edge technologies. BUILDING COMPETITIVENESS TO ...

  • Page 28
    ... Hyundai Motor's leadership in clean powertrain technology. Moreover, Genesis was awarded the Insurance Institute for Highway Safety (IIHS) Top Safety Pick+ rating, as one of the safest cars in the world. In Germany, the home of luxury auto brands, Genesis placed first in terms of market share...

  • Page 29
    ... in other emerging markets. million units HIGH VOLUME MODELS In 2015, sales of 14 models joined the ranks of high volume sales models with 100,000 units in markets including South Korea, U.S., Russia, India, Brazil and China. Hyundai Motor classifies unique vehicle models with sales above 100...

  • Page 30
    ... MOTOR COMPANY Annual Report 2015 THE WAY OF HMC With its founding spirit and values as the driving force, Hyundai Motor Group has achieved sustained growth since its incorporation. We have selected 5 core values, created vision and defined management philosophy, creating a management philosophy...

  • Page 31
    ...customer satisfaction. Brazil Turkey Russia Czech Republic U.S. Sales by Plants (2015) Unit: thousand units South Korea China 1,869 1,063 643 380 342 230 227 174 India Global Sales Top Five Models (2015) Unit: thousand units Elantra 812 670 581 450 323 61 Accent (Verna) Tucson Sonata Santa...

  • Page 32
    HYUNDAI MOTOR COMPANY Annual Report 2015 CUSTOMER VALUE : QUALITY HYUNDAI MOTOR STRIVES TO BECOME A TRUSTED BRAND BY EMPLOYING CREATIVITY IN QUALITY MANAGEMENT. JD Power U.S. IQS Non-luxury Brand 2 nd JD Power China IQS Non-luxury brand 1 st Autobild 2015 Quality Report, Germany 3 rd ...

  • Page 33
    ... COMPANY Annual Report 2015 CUSTOMER VALUE : CONVENIENCE EXPANDING THE BOUNDARIES OF PREMIUM SERVICE BEYOND CUSTOMERS' EXPECTATIONS. World's first virtual reality-based manual Hyundai Virtual Guide Virtual reality-based user manual World's first automated service center for dealerships Providing...

  • Page 34
    ...marketing with NFL logos and vehicle promotion events. During the 2015-2016 Super Bowl, Genesis commercial topped the Super Bowl spot in the USA Today poll. Hyundai Motor also signed a three-year sponsorship deal to support the World Archery as a title sponsor of the Archery World Cup. Hyundai Motor...

  • Page 35
    ...in South Korea, the Namyang Technology Research Center is the core of Hyundai Motor's global network. The center consists of a planning center, a design center, a power train center, wind tunnel facilities, collision testing facilities and a comprehensive proving ground. Over 11,000 researchers work...

  • Page 36
    ... which meets California's stringent SULEV standard. Hyundai Motor has been developing lightweight design technologies to improve quality in terms of fuel efficiency to reduced emissions. We are also developing bio plastics, using plant-based materials, which are already being applied in some models...

  • Page 37
    ... 10 years. Hyundai Motor has completed restoration of an area spanning 50 million m2 and is now working on an additional 40 million m2 as part of 'Hyundai Green Zone' project. SAFE MOVE : PROMOTING TRAFFIC SAFETY Hyundai Motor supports a number of traffic safety promotion activities with global...

  • Page 38
    ... during the end of year holiday season. A total of 70 volunteer groups lent their support to nearby farming towns, during the busy seasons in spring and autumn. We are also supporting the 'H-Family Volunteer' program which is a weekend volunteer program for Hyundai Motor's employees' family members...

  • Page 39
    ... PLANTS, R&D CENTERS AND DESIGN CENTERS. HYUNDAI MOTOR HAS OVER 6,200 DEALERSHIPS IN NEARLY 200 COUNTRIES WORLDWIDE, WHICH NOT ONLY SERVE AS SALES OUTLETS BUT WHERE WE COLLECT INFORMATION ON LOCAL MARKET NEEDS AND PROVIDE HIGH QUALITY SERVICE FOR CUSTOMERS. ASIA NORTH AMERICA MIDDLE EAST & AFRICA...

  • Page 40
    ... MOTOR COMPANY Annual Report 2015 CORPORATE GOVERNANCE AND BOARD OF DIRECTORS Key Activities of the BOD in 2015 HYUNDAI MOTOR HAS BOARD OF DIRECTORS AND THREE SUBCOMMITTEES INCLUDING AUDIT COMMITTEE, EXTERNAL DIRECTOR CANDIDATE RECOMMENDATION COMMITTEE AND CORPORATE GOVERNANCE & COMMUNICATION...

  • Page 41
    ... COMPANY Annual Report 2015 INDEPENDENT AUDITORS' REPORT English Translation of Independent Auditors' Report Originally Issued in Korean on February 25, 2016 To the Shareholders and the Board of Directors of Hyundai Motor Company: We have audited the accompanying consolidated financial statements...

  • Page 42
    ...term financial instruments Other financial assets Long-term trade notes and accounts receivable Other receivables Property, plant and equipment Investment property Intangible assets Investments in joint ventures and associates Deferred tax assets Financial services receivables Operating lease assets...

  • Page 43
    HYUNDAI MOTOR COMPANY Annual Report 2015 CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (In millions of Korean Won, except per share amounts) In millions of Korean Won...

  • Page 44
    HYUNDAI MOTOR COMPANY Annual Report 2015 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (CONTINUED) In millions of Korean Won In millions of Korean Won ...

  • Page 45
    HYUNDAI MOTOR COMPANY Annual Report 2015 CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (CONTINUED) In millions of Korean Won In millions of Korean Won NOTES Cash flows ...

  • Page 46
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 1. GENERAL: Subsidiaries Nature of business Manufacturing R&D Financing Sales R&D Sales ˝ ˝ Real estate development Sales Manufacturing ˝ ˝ Sales ...

  • Page 47
    ... Auto Lease Offering, LLC Hyundai HK Lease, LLC Nature of business Sales ˝ ˝ ˝ Manufacturing Real estate development Manufacturing Financing Sales Holding company Investment ˝ ˝ ˝ Financing Location Spain France Poland Mexico ˝ USA Brazil ˝ ˝ Cayman Islands Korea USA Ownership...

  • Page 48
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 Summarized financial position and results of operations of the Company's major consolidated subsidiaries as of and for the year ended December 31, 2014 are ...

  • Page 49
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (6) Financial support provided to consolidated structured entities As of December 31, 2015, Hyundai Card Co., Ltd. and Hyundai Capital Services, Inc., ...

  • Page 50
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (9) Changes in consolidated subsidiaries Subsidiaries newly included in or excluded from consolidation for the year ended December 31, 2015 are as follows: ...

  • Page 51
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 and equipment. The amendments are effective for the annual periods beginning on or after January 1, 2016. - K-IFRS 1038 (Amendment): 'Intangible Assets' The ...

  • Page 52
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 the former owners of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. The consideration includes any asset ...

  • Page 53
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 4) AFS financial assets AFS financial assets are those non-derivative financial assets that are designated as AFS or are not classified as loans and ...

  • Page 54
    ... MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 investment in an associate. There is no remeasurement to fair value upon such changes in ownership interests. Unrealized gains from transactions between the Group...

  • Page 55
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 Intangible assets with indefinite useful lives or intangible assets not yet available for use are not amortized but tested for impairment at least annually....

  • Page 56
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible ...

  • Page 57
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (25) Fair value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market ...

  • Page 58
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 3. TRADE NOTES AND ACCOUNTS RECEIVABLE: 4. OTHER RECEIVABLES: (1) Trade notes and accounts receivable as of December 31, 2015 and 2014 consist of the ...

  • Page 59
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (2) AFS financial assets that are measured at fair value as of December 31, 2015 and 2014 consist of the following: In millions of Korean Won 6. INVENTORIES...

  • Page 60
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 8. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE: Non-current assets classified as held for sale as of December 31, 2015 and 2014 consist of the following: ...

  • Page 61
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 10. INVESTMENT PROPERTY: (1) Investment property as of December 31, 2015 and 2014 consist of the following: In millions of Korean Won (3) The fair value of ...

  • Page 62
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 11. INTANGIBLE ASSETS: (1) Intangible assets as of December 31, 2015 and 2014 consist of the following: In millions of Korean Won The changes in intangible ...

  • Page 63
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (4) Impairment test of goodwill The allocation of goodwill amongst the Group's cash-generating units as of December 31, 2015 and 2014 is as follows: In ...

  • Page 64
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 Investments in joint ventures and associates as of December 31, 2014 consist of the following: In millions of Korean Won (2) The changes in investments in ...

  • Page 65
    ... financial information of the Group's major joint ventures and associates as of and for the year ended December 31, 2015 is as follows: In millions of Korean Won Name of the company BHMC BHAF WAE HMGC CHMC Kia Motors Corporation Hyundai Engineering & Construction Co., Ltd. Hyundai WIA Corporation...

  • Page 66
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 Summarized financial information of the Group's major joint ventures and associates as of and for the year ended December 31, 2014 is as follows: In millions...

  • Page 67
    ... of net assets. (7) The market price of listed equity securities as of December 31, 2015 is as follows: In millions of Korean Won, except price per share Name of the company Kia Motors Corporation Hyundai Engineering & Construction Co., Ltd. Hyundai WIA Corporation HMC Investment Securities Co...

  • Page 68
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 13. FINANCIAL SERVICES RECEIVABLES: (1) Financial services receivables as of December 31, 2015 and 2014 consist of the following: (4) The changes in ...

  • Page 69
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 14. OPERATING LEASE ASSETS: (1) Operating lease assets as of December 31, 2015 and 2014 consist of the following: In millions of Korean Won (2) Long-term ...

  • Page 70
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 16. PROVISIONS: (1) Provisions as of December 31, 2015 and 2014 consist of the following: In millions of Korean Won 17. OTHER FINANCIAL LIABILITIES: Other ...

  • Page 71
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 19. FINANCIAL INSTRUMENTS: (1) Financial assets by categories as of December 31, 2015 are as follows: In millions of Korean Won (2) Financial liabilities by...

  • Page 72
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 Fair value measurements of financial instruments by fair value hierarchy levels as of December 31, 2015 are as follows: In millions of Korean Won The ...

  • Page 73
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (5) Financial assets and liabilities subject to offsetting, financial instruments subject to an enforceable master netting arrangement or similar agreement ...

  • Page 74
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (8) Descriptions of the valuation techniques and the inputs used in the fair value measurements categorized within Level 2 and Level 3 of the fair value ...

  • Page 75
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 21. CAPITAL SURPLUS: Capital surplus as of December 31, 2015 and 2014 consists of the following: In millions of Korean Won 24. RETAINED EARNINGS AND ...

  • Page 76
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (3) The computation of the proposed dividends for the year ended December 31, 2015 is as follows: In millions of Korean Won, except per share amounts 26. ...

  • Page 77
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 28. FINANCE INCOME AND EXPENSES: (1) Finance income for the years ended December 31, 2015 and 2014 consists of the following: In millions of Korean Won 29. ...

  • Page 78
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 30. EXPENSES BY NATURE: Expenses by nature for the years ended December 31, 2015 and 2014 consist of the following: In millions of Korean Won 32. INCOME TAX...

  • Page 79
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (3) The changes in deferred tax assets (liabilities) for the year ended December 31, 2015 are as follows: In millions of Korean Won (4) The components of ...

  • Page 80
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (3) The amounts recognized in the consolidated statements of financial position related to defined benefit plans as of December 31, 2015 and 2014 consist of ...

  • Page 81
    ... The fair value of the plan assets as of December 31, 2015 and 2014 consists of the following: In millions of Korean Won Gain on share of earnings of equity-accounted investees, net Gain on disposals of investments in associates, net Cost of sales from financial services, net Description Insurance...

  • Page 82
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 35. RISK MANAGEMENT: (1) Capital risk management The Group's sensitivity to a 5% change in exchange rate of the functional currency against each foreign ...

  • Page 83
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 c) Equity price risk The Group is exposed to market price fluctuation risk arising from equity instruments. As of December 31, 2015, the amounts of held for ...

  • Page 84
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 36. RELATED-PARTY TRANSACTIONS: The transactions and balances of receivables and payables within the Group are wholly eliminated in the preparation of the ...

  • Page 85
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (2) As of December 31, 2015, significant balances related to the transactions between the Group and related parties or affiliates by the Act are as follows: ...

  • Page 86
    ... for their borrowings. Description Short-term employee salaries Post-employment benefits Other long-term benefits 2015 ￦ 198,063 37,888 510 ￦ 236,461 2014 ￦ 178,844 33,179 623 (4) Hyundai Capital Services, Inc., a subsidiary of the Company, has Revolving Credit Facility Agreements with the...

  • Page 87
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (5) Hyundai Card Co., Ltd, a subsidiary of the Company, has a Revolving Credit Facility Agreement which credit line is ￦ 490,000 million with Kookmin Bank ...

  • Page 88
    HYUNDAI MOTOR COMPANY Annual Report 2015 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 (5) Non-current assets by region where the Group's entities are located in as of December 31, 2015 and 2014 are as follows: In millions of Korean Won (2) ...

  • Page 89
    ... of Sonata II 1994 + Launch of Accent (Verna) + Annual production surpasses 1 million units 1995 + Launch of Elantra + Completion of Jeonju commercial vehicle manufacturing plant + Hyundai Motor Europe Technical Center GmbH (HMETC) opens 1976 + Launch of Hyundai Pony, the first Korean passenger car...

  • Page 90
    ...U.S. Super Bowl + Cumulative exports to Africa surpass 1 million units + No. 69 in Global Brand Value + Inauguration of the Czech Plant + Inauguration of Hyundai Motor India Engineering Pvt. Ltd. + Developed next generation high performance Theta GDi + Sales of Santa Fe surpass 2 million units + Tau...

  • Page 91
    ... G90 XCIENT CARGO SONATA ix20 SANTA FE H350 i40 i20 TUCSON UNIVERSE XCIENT TRACTOR G80 i40 SEDAN i20 COUPE CRETA UNICITY XCIENT MIXER ELANTRA i20 ACTIVE NEW SUPER AERO CITY HEAVY DUTY TRUCK ECO-FRIENDLY CARS i30 ELITE i20 AEROTOWN MIGHTY i30 WAGON HB20 SONATA HYBRID COUNTY...

  • Page 92
    ... COMPANY Annual Report 2015 HYUNDAI MOTOR AIMS TO REDEFINE AUTOMOBILES WITH ITS PHILOSOPHY OF MODERN PREMIUM. When others just focused on how to advance automotive technology, Hyundai Motor searched for ways to make the automobiles improve our way of life. Our vision of Modern Premium is to provide...