#1HMC Investor Presentation Hyundai Motor Company September 2020#2Retaining Core Strength Key Highlights P. 1 Mix Improvement & ASP Growth New Model Big Cycle P. 2 Global Sales and Market Share P. 3 Geographic Sales Mix P. 4 Product Mix & ASP trend P. 5 Future Growth Strategy BEV Strategy P. 6 FCEV Strategy P. 8 Introducing "Motional" P. 11#3Key Highlights Earnings Improvement led by Strong Model Cycle Expanding SUV Line-up Full line-up from A to E seg. Genesis Line-up Completion New Genesis SUVs (GV80, GV70) 3rd Generation Platform From 2019 Global Mix Improvement Strong sales of high-end models Continued ASP Growth Record-high domestic ASP Higher profitability of I.C.E. Standardization & Commonization ☑D HYUNDAI 8%% Aggressive XEV Launches 44 models* by 2025 New EV-dedicated Platform From 2021 *Hyundai, Genesis, Kia combined ex, Kia 26 models/920K units Global Top XEV Brand Targeting 1.67M* units by 2025 Improved Margins of XEV Reaching margins of I.C.E. by 2025 Target OPM of Automotive Division in 2025 1 HYUNDAI#4New Model Big Cycle SUV 2019 2020 2021- PALISADE VENUE CRETA SANTA FE F/L TUCSON NEW MPV NEW CUV NEW SUV * 2018 in KOREA SEDAN SONATA GRANDEUR F/L ELANTRA i20 MISTRA ACCENT GRANDEUR GENESIS ECO- FRIENDLY AD GV70 GV80 G90 G90 F/L G70 F/L G80 SEDAN EV CUV EV (Derivative) SUV EV (Derivative) KONA (HEV) PORTER (LCV EV) SANTA FE (HEV) TUCSON (HEV) CUV/SUV-EV SEDAN -EV NEXO 2 HYUNDAI#5Global Sales and Market Share Global sales and market share trend (Thousand units) 5.7% 5.7% 5.7% 5.6% 5.6% 5.5% Turning around 5.3% Strong model cycle 5.3% 5.1% 4.9% Hyundai M/S 4.9% 4,392 4,621 4,835 4,844 4,920 4,537 4,495 4,476 4,099 3,701 1,630 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 2020 . Source: IHS, Company data Market share by region 2018 ■2019 ■H1 2020 41.6% 41,5% 39.7% 16.3% 17.3% 16.8% 4.2% 4.3% 3.9% 3.0% 3.0% 2.8% 3.4% 3.1% 2.4% Korea India 1st model launch of 3rd gen. platform by regions Q1 19 Sonata United States Europe China Q4 19 Sonata H2 20 Tucson H2 20 Sonata, Elantra 3 HYUNDAI#6Geographical Sales Mix Sales by Region Korea N.America W.Europe China E.Europe, Russia AMEA India ■S. America Others High - ASP model* (%) Competitive mix in Developed Market 2019 TH1 2020 EV (%) 2018 SUV (%) 13.7% 62.8% 15.3% 15.7% 16.7% 41.0% 51,9% 24.2% 45.2% 28.6% 24,5% 18.0% 18.5% 17.9% 19.0% Korea United States 22.3% 10.1% * Genesis + Grandeur + Palisade 11.8% 11.9% 12.4% Strong M/S in Emerging Market 9.9% 5.7% 2.5% Europe 11.1% India 17.3% 24.5% 18.1% 17.5% 17.0% 17.3% 16.8% 14.9% 16.2% 16.4% 16.3% 15.4% 15.4% 15.4% 14.7% 11.4% 5.3% 5.2% 5.4% 4.4% 6.9% 6.6% 7.2% 5.7% 10.1% 10.2% 9.9% 9.9% 10.2% 10.1% 7.5% Russia 6.4% 7.2% 11.7% 12.0% 11.5% 6.5% 6.2% 5.9% 10.4% 8.6% 4.6% 6.7% 7.8% 8.1% 7.9% 5.2% Brazil 8.6% 8.2% 7.7% 7.1% 7.4% 7.9% 5.8% 5.3% 3.1% 4.6% 4.7% 5.1% 5.2% 5.0% 2.6% 2,2% 2016 2017 2018 2019 H1 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 2020 (Company Data, Wholesale) 4 ⚫ Production: HMMR (2010), HMB (2012) HYUNDAI#7Product Mix & ASP Trend Sales mix by segment (Wholesale) Increasing Average Selling Price Others Korean ASP (Unit: KRW mn) 6.0% 5.5% 7.1% 8.4% A Overseas ASP (Unit: $ '000) 7.9% 9.2% 6.6% 2.7% B 4.8% 8.5% 7.7% 9.0% ■Genesis 25.7% ■SUV 22.9% 27.6% 28.7% 12.2% 11.0% 9.7% 8.0% 2.0% 1.3% 5.4% 1.6% 58.4% 13.9 13,8 43.4% 40.5% 40.8% r Genesis 35.8% + D-Seg + SUV 28.0 27.7 2018 2019 Q1 2020 Q2 2020 GV80 is included in Genesis 5 14.4 29.2 15.2 31.3 15.5 33.4 2017 2018 2019 Q1 2020 Q2 2020 HYUNDAI#8BEV Strategy Strengthening Technological Edge [ EV-dedicated Platform ] Product Enhancement A HMC BEV Line-up г IONIQ & GENESIS 2016 2018 2019 2020-2022 A-CUV E-GMP [Ultra Fast Charging ] Cost Efficiency B Kona EV 800V System voltage IONIQ 5 B-SUV IONIQ 6 C Ioniq EV La Festa EV Midsize CUV CUV C-Sedan Ultra Fast Charging 20 min. (up to 80%) Similar to fueling experience D [Business Expansion] D-Sedan D-SUV A Seg B&C Seg E Seg MPV "launching various types of E new EVs" New business model Charging Infrastructure Battery Related Biz LCV 1) E-GMP Electric Global Modular Platform E-Sedan MPV EV Porter EV . Launch schedule is subject to change 6 HYUNDAI#9Strong Market Position in EV Enhancing Market Position in EV Market HMC BEV Global Market Share 3th HMC M/S (Rank) Ex-China 5.2% 4.5% (5th) (5th) 2.2% 2.8% (11th) 1.2% (16th) 0.0% 0.0% (17th) (-) (-) Global Demand (Thousand) 177 440 313 1,350 1,189 Strategy 2025 Sales Target HEV EV PHEV FCEV CAGR 32% 722 250K+ 8K 589 190K 5K 110K 70K 2015 2016 2017 2018 2019 H1 2020 2014 * Source: IHS Markit June 2020 7 1,000K+ 110K 560K 2019 2020(E) 2025(E) HYUNDAI#10FCEV Strategy FCEV Vision 2030 HMG Cumulative Investment (in KRW tri.) FCEV Production Capacity (Thousand units) 0.3 1.5 11 40 40 2020 2022 2.9 130 2025 7.6 500 2030 FCEV 1.0 Establishing business foundation FCEV 2.0 (2023-) Competitive pricing & system downsizing FCEV 3.0 (2030-) Expanding line up & value chain 8 Cummins Vitalizing Hydrogen Society Co-develop F.C Powertrain (MOU) H₂energy To deliver 1,600 FCEV trucks by 2025 (JV) HYUNDAI FCEV Vision 2030 Hydrogen Council Member and Co-Chair 0000 Cross-license agreement PARIME U.S. DEPARTMENT OF ENERGY Research partnership HYUNDAI#11FCEV Strategy (continued) Business Structure in Switzerland to bring 1,600 HD FCEV truck in operation by 2025 First 50 units will be delivered this year from September 2020 (First global commercialization) ☑ HYUNDAI Truck sales Hyundai Hydrogen Mobility Partnership with H2Energy Upfit Pay-Per-Use Model (Maas) Payment for H₂ Equity Share HYDROSPIDER Green Hydrogen Production Hydrogen Supply H2 Mobility Switzerland Association Customer n Gas Station / HRS HYUNDAI#12FCEV Strategy (continued) European market entry strategy D XCIENT Fuel Cell Hyundai Hydrogen M Patre + Switzerland Germany Norway Strategic foothold · Potential market size of FCEV trucks Netherlands France Spain Austria Italy next target countries are under review Stage 1 10 Stage 2 Business Expansion based on Country specific differences ✓ Governmental goals Direct or indirect subsidies Energy prices and surplus energy ✓ Hydrogen price ✓ Private or public initiatives Status of infrastructure ✓ City bans for diesel truck/bus HYUNDAI#13Introducing "Motional" Introducing "Motional", an autonomous driving joint venture between HMG and Aptiv • • Established: March 2020 Motional ⚫ Share Structure: Hyundai Motor Group, Aptiv (50:50 Joint Venture) (HMC 26%, Kia 14%, Mobis 10%) Headquarter: Boston ⚫ Track record - First fully-autonomous Cross-country drive in U.S. ('15) - The launch of the world's first robo taxi pilot (Singapore '16) - Operation of the world's most-established public robo taxi fleet (Las Vegas; '18 - present) - The fleet has provided over 100,000 rides, with 98% of riders rating their experience five-out-of-five stars • Business Develop and sale of autonomous driving solutions Developing & commercializing SAE Level 4 Vehicles Provide driverless system to Robo Taxi provider 11 Motional Motional Business Plan -'20 Begin testing Fully driverless system -'22 Commercialize its driverless systems & technology HYUNDAI#14Recent Updates Global Retail Sales P. 13 P. 14 COVID-19 Impact Market Updates United States P. 15 Korea P. 16 China P. 17 W. Europe P. 18 India P. 19 Russia/Brazil P. 20#152020 Global Sales (Retail Sales) Europe² China Korea -38.7% -32.5% +0.1% 267 350 163 235 384 385 India Russia -43,3% -27.6% 250 142 89 65 H1 2019 H1 2020 (Thousand units) HMC Global Sales³ -25.6% United States -18.4% 343 280 Brazil -24.1% Others¹ -26.9% 2,210 1,644 1,857 1,406 430 315 Sales Sales (ex. China) 1 MEA, Asia-Pacific, Other regions, Commercial vehicles(ex. Korea CV) 2 Western Europe excluding CV 3 Retail sales including CV and overseas CKD ('19: 21,446 units, '20: 20,053 units) 13 -38.3% 97 00 60 HYUNDAI#16COVID-19 Impact Sales to recover from resumed production and demand rebounds Plant Shutdown due to COVID-19 Korea (Thousand units) Jan Feb Mar Apr May 350 (Average of 4 days in mid Feb.) China Jan 20-Feb 19 (5 th plant based.) India US 300 250 Global Sales recovery 200 3/23-5/3 Sales decline from COVID-19 impact 150 3/18 - 5/3 100 Czech 3/23 - 4/13 50 50 Sharp recovery in Global sales Turkey 3/27 4/19 0 Jan Feb Mar Apr May Jun Russia 3/28-4/12 Brazil 3/20-5/26 14 Domestic Overseas Global HYUNDAI#17Korea Market Industry Demand 2019 2020 (Thousand units) 10.4% 7.9% 9.8% 41.8% -14.5% -17.6% 206 YOY 137 174 168 169 157 156 154 145 117 121 100 Jan Feb Mar Apr May Jun Hyundai Sales (Thousand units) M/S 2020 40.7% 39.4% 41.6% 42.3% 41.8% 40.6% YoY -21,3% -26.4% 3.0% -0.5% 4.5% 37.2% 60 53 48 39 84 70 72 71 71 68 71 61 Genesis Sales Increase (Thousand units) Volume % of sales 16.2% 8.6% 8.3% 7.5% 7.8% 6.3% 15.7 16.5 12.3 12.2 12.4 36.5 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Strong New Vehicle Cycle to continue 2018-19 2020 Feb Mar Apr May Jun Sedan Sonata Grandeur F/L New Elantra Jan Sales by Model (Thousand units) 8.4% 12.3% 13.9% 8.4% 5.2% 11.5% 8.2% 32.1% 384 (H1 2019) Genesis Genesis SUV GV80 New Genesis G80 Genesis SUV GV70 9.8% 9.9% 20.2% 12.7% 3% 6.8% 8.1% 29.2% 385 (H1 2020) (Sedan-C) (Sedan-D) Avante Sonata Grendeur Genesis Tucson Santa Fe Palisade Others (Luxury sedan (SUV-C) SUV (SUV-D) (SUV-E) Palisade Venue New Tucson Santa Fe F/L +GV80) 15 HYUNDAI#18US Market Industry Demand (Thousand units) SUV Sales Trend 2019 2020 Venue Kona Tucson Santa Fe Palisade YOY 1,2% 8.6% -29.9% -26.3% -38.5% 62.8% -45.6% 51,9% 1,609 1,590 1,510 SUV Portion 45.2% 36.2% 1,374 1,332 28.5% 1,146 1,265 1,133 989 1,114 1,113 3.0% 3.6% 2.5% 724 SUV seg. M/S 2,0% 2.2% Jan Feb Mar Apr May Jun 29 118 == 94 Hyundai Sales 133 (Thousand units) 131 36 137 M/S 3.9% 4.0% 3.6% 4.8% 5.3% 4.6% Sales* ('000 units) 142 43 58 90 115 73 2020 47 31 YoY 5.1% 15.8% -42.4% -39.0% -13.8% -22,0% 2016 2017 2018 2019 H1 2020 63 55 57 42 44 47 36 35 68 66 59 52 Feb Mar Apr May Jun Jan Sales by Model (Thousand units) 23.5% Profit recovery by improving quality of sales Regional HQ System Optimizing 13.7% 10.8% 19.2% 17.6% 2.9% 12.1% 343 (H1 2019) Enhanced dealer Competitiveness Focusing on market & customer volume & profit Reducing fleet sales Improve residual value 16.6% 10.8% 11.0% 20.7% 15.5% 13.0% 2.7% 9.7% 280 (H1 2020) Elantra Sonata Kona Tucson (Sedan-C) (Sedan-D) (SUV-B) (SUV-C) Santa Fe Palisade Genesis Others (SUV-D) (SUV-E) 16 HYUNDAI#19China Market Industry Demand (Thousand units) -20.5% 2019 2020 -49.8% -2.9% 8.4% 2.5% China Strategy Successful new car launch Long-term roadmap for sustainable growth YoY 1,995 1,585 1,193 192 -83.9% 1,925 965 1,533 1,488 1,515] 1,643 1,654 1,696 Jan Feb Mar Apr May Jun Hyundai Sales (Wholesales) (Thousand units) M/S 2020 YoY 2.0% 0.5% 3.1% 2.3% 2.4% 2.6% 0.3% -97.4% -50.5% -32.0% 11.1% -20.1% Recover sales and M/S • Improve profitability & dealer competitiveness New Model Line-up Newly Launched • Focus on EV Genesis • Optimize capacity 2020-2021 Palisade* 61 55 50 44 40 38 32 32 Sedan 30 34 36 Elantra Mistra La Festa F/L Sonata Jan Feb 1 Mar Apr May Jun SUV New MPV ix35 F/L Tucson ix25 Sales by Model (Thousand units) 22.1% 20.4% 10.6% 9.6% 9.2% 6.6% 350 (H1 2019) China Strategic Models (50%-60%) EV 19.9% 15.5% 13.5% 13.6%8.0% 6.9% Elantra ■ix35 (C2-Sedan) (SUB-C) 235 (H1 2020) Mistra EV La Festa EV IONIQ 5 La Festa (C2) Celesta ■ix25 Mistra Others (C2) (SUB-B) (D-Sedan) 17 * Palisade will be imported from Korea . Launch schedule is subject to change HYUNDAI#20W. Europe Market Industry Demand (Thousand units) 2019 2020 -25.7% YOY Green-car Sales Trend EV FCEV HEV PHEV 8.2% 7.4% -7.5% -6.7% -51.6% -55.5% EV M/S -77.4% 2,008 1,395 1,304 1,637 1,697 1,528 1,290 1,216 1,260 972 728 346 Jan Feb Mar Apr May Jun Green-car M/S 1.3% 3.3% 6.4% 4.5% 5.4% 5.6% 4.2% 59 5 1.0% Hyundai Sales 37 24 34 6 23 (Thousand units) 15 17 Sales* 15 31 5 13 16 6 2016 2017 2018 2019 H1 2020 M/S 2.9% 3.3% 2.8% 2.5% 2.5% 2.6% 2020 YoY 5.3% 7.4% -51.4% -79.8% -59.4% -28.3% 56 36 37 36 39 44 45 45 33 27 18 Jan Feb Mar Apr May Jun Sales by Model (Thousand units) How to meet the new CO2 target in 2020 Maximize EV & FCEV sales and Expand green-car line-up 2019 2020 2021 New Model Kona HEV ■ Tucson HEV . IONIQ 5 (1st E-GMP EV) ⚫ IONIQ F/L ⚫ Santa Fe HEV/PHEV ⚫ Tucson PHEV 14.2% 15.5% 13.5% 6.1% 19.5% 24.9% 350 (H1 2019) EV HEV PHEV FCEV EV HEV PHEV FCEV EV HEV PHEV FCEV Line-up 12,5% 16.7% 12.2%6.6% 26.8% 22.0% 235 (H1 2020) i10 i20 ■130 ■loniq Kona (Sedan-A) (Sedan-B) (Sedan-C) (SUV-B) Tucson (SUV-C) Santa Fe Others (SUV-D) 18 2 2 1 124 2 1 3 4 31 HYUNDAI#21India Market Industry Demand (Thousand units) 2019 2020 (Source SIAM) -47.4% YoY -5.4% -6.6% -50.7% -84.5% -100.0% 279 270 288 264 252 247 142 238 223 117 37 0 Jan Feb Mar Apr May Jun Hyundai Sales (Wholesales) Winning M/S with Refreshed Line-up Q4 2019 H12020 H22020 2021 i10 Nios & Aura Creta i20 Elantra Compact high SUV-Low Compact prem Premium Restore sales momentum with volume models (Thousand units) Market Strategy M/S 2020 15.9% 15.9% 18.5% 18.7% 18.2% YOY -8.3% -7.2% -40.7% -100% -83.8% -49.2% (Million units) 45.8 43.1 44.4 42.0 40.0 42.0 42.5 42.0 26.3 21.3 6.9 0.0 Feb Mar Apr May Jun Jan Sales by Model (Thousand units) 24.0% 24.7% 23.0% 6.1% 15.1% 6.7% 260 (H1 2019) 30.6% 18.1% 18.1% 20.9% 8.6% 137 (H1 2020) i10 i20 Creta Venue (Sedan-A) (Sedan-B) (SUV Low) Santro Verna Others (Sedan-A) (Sedan-B) 19 2019 2020 -30.9% 2.9 2.0(E) -47.4% -12.9% 1.5 1.2(E) 1.4 0.8 H1 H2 Annual [Industry Demand outlook] Respond to recovery of demand with volume model launch - Supply expansion of profitable models like new Creta and Venue - Launch of new i20 in H2 2020 Strengthen sales competitiveness by digital platform (Click To Buy) - Respond to change of market after outbreak of COVID-19 Strengthen Sales Competitiveness HYUNDAI#22Russia/Brazil Market Russia Industry Demand (Thousand units) Industry Demand (Thousand units) Brazil 2019 2020 YOY 1.3% -0.9% -4.6% -19.0% YoY -21.9% -50.1% -3.5% 1.5% -73.8% 160 162 151 148 128 138 191 103 102 122 123 184 190 193 200 156 222 69 39 Jan Feb Mar Apr May Jun Hyundai Sales 2019 2020 -42.6% -76.8% -75.8% 214 234 51 123 57 Jan Feb Mar Apr May Jun (Thousand units) Hyundai Sales (Thousand units) 10.9% M/S 2020 7.2% 8.5% 8.4% 8.6% 8.0% 9.3% YoY -3.0% -4.2% -36.6% -68.5% -63.1% -39.4% 18 18 16 16 15 13 12 10 16 10 7 6 M/S 2020 YoY 11,2% 11.7% 9.7% 6.2% 10.3% 4.4% 0.0% -3.0% -83.9% -56.6% -18.2% 17 16 17 15 16 15 15 14 11 12 7 3 Feb Mar Apr May Jun Jan Sales by Model (Thousand units) 34.5% 7.1% 38.9% 5.6% 12.8% 89 (H1 2019) 28.6% 3.5% 45.8% 7.2% 11.2% 65 (H1 2020) Solaris Sonata Creta (Sedan-B) (Sedan-D) (SUV-B) Santa Fe ix35 (SUV-D) (SUV-C) Others 20 20 Jan Feb Mar Apr May Jun Sales by Model (Thousand units) 72.1% 73.4% HB20 (Sedan-B) 26.3% 97 (H1 2019) 27.8% 163 (H1 2020) Creta (SUV-B) Others ⑧HYUNDAI#23Strategy 2025 Strategy 2025 P. 22 Mid to Long-term Business Target P. 23 Cost Innovation Committee P. 24 Long-term Investment Plan P. 25 Preparing for the Future P. 26#24Strategy 2025 Smart Mobility Solution Provider 2 BUSINESS PILLARS Smart Mobility Device SYNERGY Smart Mobility Service 3 STRATEGIC DIRECTIONS Highly Profitable I.C.E. Top-tier Leadership in BEV+FCEV 8% Operating Margin Among Global Top 3 Brands 4 BUSINESS STRATEGIES "Balanced & Steady" Growth Strong Foundation for Platform Business 6 Core Investment Areas Vehicle + Service Package Incremental Profit from "Customer Value + Cost Structure Innovation" Integrated Mobility Platform 22 22 HYUNDAI#25Mid to Long-term Business Target 2022 Improving cost competitiveness of I.C.E. and XEV Improvement • Accelerated cost innovation • Sales expansion of Genesis brand 2025 Building strong growth foundation based on high profitability of the automotive division Automotive Division 7% OP Margin +1% pt Automotive Division Limitation ⚫ Accelerated electrification Regional Profit Center System Cost Innovation Committee • Increasing investment in mobility service business Expanding xEV based on competitive cost ⚫ OP and OPM : automotive division + consolidation adjustment 23 8% OP Margin Foundation for +mobility service business HYUNDAI#26Cost Innovation Committee Improvement Target 5-year Plan KRW34.5T For 5 years Automotive OPM (%) Cost Improvement 7.0% 8 Sub-committees Commonization Electrification Regional Cost Optimization Sales-related Cost 2,1% 11.9 10.1 Productivity Quality Cost 5.9 4.3 2,3 Genesis Operational Efficiency 2018 2019 2020 2021 2022 Strategic competitiveness with company-wide cost innovation Achieve target profitability by continuous cost improvement ⚫ OP improvement by revenue growth, improvement of COGS and SG&A 24 24 Effective bottom-up Cost improvement activities HYUNDAI#27Long-term Investment Plan 6-year Investment Plan Investment Details 2020-2025 KRW 61.1T Core Business Investment for Growth of Investment KRW 41.1T KRW 20.0T R&D (KRW tn) CapEx (KRW tn) Strategic Inv. (KRW tn), Annual average of KRW 10T Mobility 7.8 New Biz. Al, Robotics 11.1 New model 10.4 10.5 10.0 10.1 26.5 ⚫ Energy, UAM 9.1 Product Genesis 2.6 2.0 2.0 7.8 1.8 1.9 . 6.1 Fuel efficiency 1,7 2.5 Autonomous A.D. 0.9 0.1 Driving ⚫ Connectivity 4.7 4.5 4.7 4.5 4.5 4.3 4.0 3.3 • New plants 9.7 2,7 2.9 3.2 3.5 3.7 3.7 4.0 4.0 14.6 CapEx . Customer channels 2018 2019 2020 2021 2022 2023 2024 2025 CapEx with changed classification in 2019 Dedicated EV Electrification - EV production Infrastructure Product includes capex in product development ⚫ Electrification: including all xEV 25 25 HYUNDAI#28Preparing for the Future - 6 Core Investment Areas Automotive Production R&D Internal Quality Control Resources Strategy & Technology Division S&T Division HQ Joint Venture ⚫APTIV⭑* Investment Open Innovation Grab SOLA re Non-Automotive · Steel Logistics Finance IT MaaS Smart Mobility Solution Business Smart City Robo-taxi/ Smart City Global Open Innovation Hubs Seoul Silicon Valley Beijing Berlin Tel Aviv 5 Core Investment Areas Energy Fuel Cell / ESS Robot Wearable Robot HYUNDAI "Game Changer" "Smart Mobility Service Provider" 26 RIMAC Aurora Collaboration Baidu B DEEPCLINT 相灵深 師 Hydrogen Council Yandex JV named Motional A.I. Autonomous Vehicle -0 HYUNDAI#29Governance BoD & Key Improvements P. 28 ESG Enhancement Roadmap P. 29 Shareholder Return P. 30#30BoD & Key Improvements Committees of BoD Board of Directors 11 Members (5 Internal 6 Independent) Independent Directors Recommendation Committee ⚫ Search the talents who can contributes independent directors . Recommend Independent director nominees for AGM Corporate Governance and Communication Committee . Make decisions on shareholder rights related agendas . Review major investments and transaction plans Audit Committee ⚫ Approve financial statements, internal auditing process Designate external auditors and ensure to abide by laws Compensation Committee • Approval of internal directors' compensation structure ⚫ Approval of registered directors' remuneration ceiling Highlights since 2019 Continuous effort to secure sustainable growth and transparency Board of Directors CGCC¹ Shareholder Recommended Director Minority shareholders actively involved in appointing directors who can represent them Diversification of BoD members ⚫ Newly joined BoD members added diversity in nationalities, expertise and perspectives New BoD Chair Euisun Chung became a new BoD chair after 52nd AGM on Mar. 19th 2020 Mid-to Long-term Strategy . CGCC¹) reviewed and approved strategy 2025 with financial and investment target ESG Improvement Amended C.G. charter and shared shareholders' ESG related proposals Shareholder Return • Share buyback to enhance shareholder value in Nov.2019 ⚫ Suspension of 2020 interim dividend in response to uncertainty caused by COVID-19 28 ¹Corporate Governance and Communication Committee HYUNDAI#31ESG Enhancement Roadmap Growing Importance of ESG ESG is considered to be a key element for sustainable growth Market participants(equity, credit, government, etc.) take ESG as a necessary criteria when making investment decisions and policies Customers make purchasing decision and assign brand value based on ESG Phase I Awareness (-2018) Report the market's interest in ESG to top management Offer ESG seminars to our Board members Open dialogue with rating & consulting firms Rank 1st place in Climate Change Actions by CDP Phase II Phase III Phase IV Initiation (-2019) Involve actively with ESG rating agencies (Sustainalytics, DJSI, MSCI) Include ESG ratings as one of CEO's KPI Share ESG matters with related departments Advancement (-2020) Organize a team in charge of overall ESG strategy Review strategic approach and set up mid-to long-term plan Coordinate with all related teams to build stronger ESG Continuing Effort (2021-) Improve ESG practice to global peer level Expand our exemplary activities to the group Maintain high scores and rankings 29 HYUNDAI#32Shareholder Return Shareholder Return Total Dividend (KRW tn) Buyback & Cancellation (KRW tn) Total Return Amount (KRW tn) Payout Ratios to FCF (%) to Net Income (%) CAGR 18% 1.39 1.52 1.41 36% 1.08 1,08 0.96 0.31 0.45 0.36 25% 0.14 17% 0.53 1,08 1.08 1,08 1.07 1.05 0.82 0.53 2013 2014 2015 2016 2017 2018 2019 Excluding Cancellation of treasury in Jul 2018 (2% of o/s shares) 447% 59% 51% 51% 71% 27% 35% 20% 17% 11% 6% 2013 2014 2015 2016 2017 2018 2019 2017 Announced Dividend Policy .Disburse 30-50% of free cash flow • Target peer level of payout ratio Total Shareholder Return 1.1 trillion KRW (4,000won/share) • Payout ratios: 27% of NI, 50% of non-finance FCF 2018 Buyback and Cancellation ·1% of o/s shares cancellation (Apr-Jul) .1% of o/s shares buyback (Nov 2018-Feb 2019) Total Shareholder Return 1.1 trillion KRW (4,000won/share) 0.5 trillion KRW of share buyback · Suspension of 2020 interim dividend in response to preemptively secure liquidity to uncertainty caused by COVID-19 30 2019 Shares Buyback .1% of o/s shares buyback (Dec 2019-Mar 2020) Total Shareholder Return 1.1 trillion KRW (4,000won/share) 0.4 trillion KRW of share buyback HYUNDAI#33Appendix Production capacity by plant P. 32 2020 Business Plan P. 33 Wholesales by Region P. 34 Statement of Income P. 35 Recent Earnings by Division P. 36 Finance Division P. 37#34Production capacity by plant (Unit: 1,000 vehicles) Korea (HMC) CAPA 2019 Production Products 1,742 1,786 PV (Hyundai & Genesis), CV China (BHMC) 1,350 658 Elantra, Mistra, La Festa, ix25, ix35 India (HMI) 696 682 Creta, Venue, Nios, Aura, i20 US (HMMA) 370 336 Elantra, Sonata, Santa Fe Czech (HMMC) 330 310 i30, Tucson, Kona EV C⭑ Turkey (HAOS) 200 178 i10, 120 Russia (HMMR) 200 245 Solaris, Creta Brazil (HMB) ⚫ Source: 2019 Annual business report, Company data 180 206 HB20, Creta 32 ⚫ Indonesian plant is under construction HYUNDAI#352020 Business Plan (Wholesale) (Thousand units) 2019 2020(P) YOY Total 4,426 4,576 +3.4% Domestic 742 732 -1.3% (including CV) Overseas 3,684 3,844 +4.4% North America 881 906 +2,8% Europe 580 558 -3.9% India 510 525 +2,9% Russia 203 199 -2.2% South America 303 331 +9.0% China 650 730 +12.3% Others 555 596 +7.2% 2020 Business Plan includes 52,700 units of CKD sales ⚫ HMC forecasts 2020 auto industry demand to decline by 20%. However, would not officially revise 2020 business plan considering uncertainties during 2nd half. 33 HYUNDAI#36Wholesales by Region (Thousand units) Q2 2019 Q2 2020 YOY H1 2019 H1 2020 YOY Korea 200 226 +12,7% 384 385 +0.1% North America 215 135 -37.3% 413 367 -11.1% Europe 149 71 -74.3% 291 190 -34.8% India 127 28 -77.7% 260 136 -47.4% Russia 51 26 -50.1% 100 77 -23.3% South America 33 83 22 -72.8% 142 70 70 -50.5% Others¹ 140 18 -43.5% 261 200 -23.3% Sub-total² (ex-China) 961 585 -58.0% 1,850 1,423 -23.0% China (BHMC) 141 118 -16.4% 272 181 -33.4% Total³ 1,105 704 -36.3% 2,126 1,607 -24.4% 1 MEA, Asia-Pacific, Other regions, Commercial vehicles(ex. Korea CV) 2 2019 ex-China excludes China CV 34 3 Wholesale including CV and CKD HYUNDAI#37Statement of Income (KRW Bil.) 2018 2019 Q1 2020 YOY Q2 2020 YOY H1 2020 YOY Revenue 96,813 105,746 25,319 +5.6% 21,859 -18.9% 47,178 -7.4% Gross Profit 15,142 17,655 4,265 +9.0% 3,712 -19.7% 7,977 -6.5% Margin (%) 15.6 16.7 16.8 17.0 16.9 SG&A 12,720 14,050 3,402 +10.2% 3,122 -7.8% 6,523 +0.8% Portion (%) 13.1 13.3 13.4 14.3 13.8 Operating Income 2,422 3,606 864 +4.7% 590 -52.3% 1,454 -29.5% Margin (%) 2,5 3.4 3.4 2,7 3.1 Income before tax 2,530 4,164 724 -40.5% 596 -57.0% 1,321 -49.3% Margin (%) 2.6 3.9 2.9 2,7 2.8 Net Income 1,645 3,186 553 -42.1% 377 -62,2% 930 -52.4% Margin (%) 1.7 3.0 2,2 1,7 2.0 D&A 3,762 4,012 1,059 1,088 2,147 EBITDA 6,184 7,617 1,923 1,678 3,601 35 HYUNDAI#38Recent Earnings by Division (KRW Bil.) 2017 2018 2019 Q1 2020 Q2 2020 YOY Revenue 96,376 96,813 105,746 25,319 21,859 -18.9% Automotive 74,490 75,265 82,487 19,555 16,057 -23.6% Portion (%) 77.3 77.7 78,0 77.2 73.5 Finance 15,415 14,958 16,027 4,176 4,341 +4.5% Portion (%) 16.0 15.5 15.2 16.5 19,9 Others 6,471 6,589 7,233 1,589 1,461 -18.1% Portion (%) 6.7 6.8 6.8 6.3 6.7 Operating Income 4,575 2,422 3,606 864 590 -52.3% Automotive 2,585 1,062 2,618 569 295 -71.6% Margin (%) 3.5 1.4 3.2 2.9 1.8 Finance 718 747 888 218 272 +8,7% Margin (%) 4.7 5.0 5.5 5.2 6.3 Others 339 105 99 71 42 -30.6% Margin (%) 5.2 1.6 1.4 4.5 2.9 Adjustment 932 508 5 -19 36 HYUNDAI#39Hyundai Capital 1 Assets: Captive oriented stable portfolio - - New Car: Stronger competitiveness based on OEM co-marketing Used Car Prime dealer centric volume - Personal-loan: Cross-sell focused targeting Auto prime customers Mortgage : Limited loss with RV Ⓡ insurance & monthly sales cap 2 Risk: Quality controlled by taking preemptive actions - - - Underwriting Tightened policy on Non-auto products Collection: Focus on short-term collection and prevention of roll-over Non Performing Loan Pre-write-off process of all products 3 Profits: Income maintained with stable bad debt expense and efficient cost - debt expense: Stabilizing since conservative risk management in '18 - SG&A: Efficient labor cost and marketing cost structure Asset Portfolio (KRW tn) 46.5% 43.2% 46.3% 40.3% Pen, rate 2 7.7 7.3 6.8 7.9 Non-auto 17.7 19.1 21,9 22.5 Auto 2017 2018 2019 H1 2020 Asset Quality 2.0% 2,1% 1.9% 1.7% 30+%DQ® Prime mix 44.7% 51.4% 58.2% 62.9% in volume 2017 2018 2019 H1 2020 Profits (KRW bn) 1.5% 1.4% 1.4% 0.9% Bad debt expense ratio 401 415 460 249 IBT 2017 2018 2019 H1 2020 4 Treasury Liquidity (KRW tn) - Funding: Utilized bank loan and ABS during market crunch in early COVID19 and issued offshore green bond 154.2% 134.8% 126.0% 134.0% ALMⓇ - Liquidity: Increased focusing on cash (6 Months Coverage 110% → 120%) 2.0 1.7 1.6 1.9 Cash Rating (domestic): Standalone rating stable at AAO 3.3 3.5 3.9 3.7 Credit line with excellent fundamentals 2017 2018 2019 H1 2020 ①Residual value ② Penetration rate ③Delinquency ratio P-loan and mortgage ⑤Asset Liability Management 37 HYUNDAI#40Hyundai Card 1 Members: Expand thru PLCC & online channel (cost, efficiency) Members (KRW K, mn) 134 102 50 31 2 PLCC: Continually signing new partners (Starbucks, Baemin, Socar in 2H) (HMC, KMC, Emart, ebay, Costco, SSG.com, GS Caltex, Korean Air) Volume: Balanced growth of Credit Purchase and Financial Products by reinforcing channels with competitive edge 7.16 7.73 8.67 8.92 '17 '18 '19 H1 20 Acquisition costⓇ Total members Online+PLCC 40.9% 53.6% 80.2% 77.8% mix® Credit Purchase: Increased due to auto and Costco volume Financial Product: Member expansion led to growth Volume (KRW tn) Prime mix 56.7% 60.7% 61,3% 51,8% in volume 119 12.6 110 Financial Product 3 Profits: Increase from cost structure optimization 67.6 71.0 76.9 63 39.5 Credit Purchase '17 '18 '19 H1 20 Card related cost: Reduced acquisition cost, renewed high-cost cards and continually enhanced personnel efficiency Bad debt expense: Ratio decline from decreased delinquency rate 4 Treasury 5 LO Funding Sourced alternative facilities (bank loan, ABS, etc.) to preemptively tackle short-term market crunch Liquidity: Increased focusing on cash (6M Coverage 110% → 130%) New growth engine: Enhance digital capacity to transition into a data science company Built big data platform through PLCC partnership and developed independent/cross-marketing tools Per member 2 Individual ③In acquisition 4 Financial Product 38 Profits (KRW bn) 2.1% 2.1% 1.9% 1.6% Bad debt expense ratio 259 201 220 214 IBT '17 '18 '19 H1 20 Liquidity (KRW tn) 151.6% 136.0% 128.7% 128.2% ALM 0.9 Cash 1,0 0.8 0.9 1.7 2.0 2.5 Credit line 1.5 '17 '18 '19 H1 20 ⑧HYUNDAI#41Hyundai Commercial 1 Asset Growth sustained by corporate financing asset Industrial financing: Diversifying portfolio to respond market volatility Corporate financing: Prime PF and platform business led to growth 2 Risk: Normalize quality by strengthening risk management Underwriting Tighter criteria for high risk asset (low credit, low down payment, multi-debt) Collection: Enhance collection through mobile/branch-centric system 3 Profits: Stabilized loss and affiliate contribution led to growth Loss: Continued improvement of asset quality since 4Q '19 - Affiliate Equity method income increased from Hyundai Card 4 Treasury Funding: Utilized bank loan and ABS during market crunch in early COVID19 Liquidity: Increased focusing on cash (Year-end 6M Coverage 110%, ALM 130% target) Industrial finance 39 Asset Portfolio (KRW tn) 49.0% 45.0% 47.0% Pen, rate 43.0% Corporate 2,2 1.9 2.6 2.7 finance 4.2 4,5 4.2 4.2 Industrial Finance '17 '18 '19 Q2 20 Asset Quality 0.74% 0.65% 0.48% 0.46% 30+% DQ 40.4% 46.8% Risk-free asset 21.3% 25.5% volume mix1 '17 '18 '19 Q2 20 Profits (KRW bn) 1,73% 1.68% 0.99% 0.81% Bad debt expense ratio 106 80 96 70 IBT '17 '18 '19 Q2 20 Liquidity (KRW tn) 143.8% 125.1% 135.7% 136.3% ALM 1.1 1.3 0.7 0.8 Cash 0.9 0.5 0.5 0.9 Credit line '17 '18 '19 Q2 20 HYUNDAI#42Hyundai Capital America (US) 1 Assets: Maintained growth with recovering car sales and increased penetration rate Loans: Recording high penetration rate with stronger loan focused co-marketing Lease: Maintained asset size YoY by tightening control on volume and pricing to support used vehicle values 2 Risk management: Mitigated COVID-19 related quality deterioration as much as possible - 30+% Solid on prime-focused portfolio and customer relief efforts Quality: Stable from tightening UW policy on low-credit customers 3 Profits: Plan to offset increased bad debt expense with portfolio growth and Lease RV stabilization - - Revenue: Interest income grew 9% YoY from Retail growth Lease RV: Improved used vehicle pricing and recovering sales volume Bad debt expense: Preemptively increase reserves for negative macro forecasts 4 Capital structure & liquidity Funding: Successfully issued largest ever amount of bonds (total 3.8BN USD in Feb/April) and issued ABS at lowest rate ever (0.59%) Liquidity: Strong liquidity position with increased cash emphasis, despite market volatility in early 2Q 123 Applied end-of-term KRW/USD exchange rate of Seoul Money Brokerage Services 40 Asset Portfolio (KRW tn ) Pen, rate 55.6% 62,6% 53.6% 46.1% Wholesale 2.8 2.6 2.2 -2.5 17.2 17.2 Lease 17.2 17.0 14.4 14.7 18.6 21.7 Loan '17 '18 '19 H1 20 Asset Quality 2.6% 2.5% 2.3% 1.7% 30+% DQ Prime mix 78% 78% 80% 80% in assets '17 '18 '19 H1 20 Profits (KRW bn Ⓡ) 1.2% 1,1% 1.4% 1.0% Bad debt expense ratio 283 116 155 124 IBT '17 '18 '19 H1 20 Liquidity (KRW tn ³) 7.6X 7.4X 6.8X 6.6X Debt leverage 1.5 05 05 Cash 1,7 8.8 6.8 7.1 4.1 Credit line '17 '18 '19 H1 20 HYUNDAI#43Beijing Hyundai Automotive Finance (China) 1 Assets: Maintained as pen, rate and maturity improved despite car sales decline Volume: Auto sales drop impact offset by pen. rate increase Maturity lengthening: Focus on longer maturity products (24M→36M) 2 Risk management: Quality index gradually stabilizing Asset (KRW tnⓇ) 27.8% 37.9% 43.0% 31.7% Pen, rate 4.0 3.9 4.4 4.4 '17 '18 '19 H1 20 Asset Quality - 30+% Gradually stabilizing as COVID-19 impact weakens (Feb 0.24% vs. June 0.12%) Quality: Recovered prime asset mix thru conservative risk management (March '19 81,2% → Feb '20 78,6% → June '20 82.5%) 0.10% 0.12% 0.12% 0.08% 30+% DQ '17 '18 '19 H1 20 3 P&L: Guarded profitability by maintaining assets and reducing ordinary expenses Profits (KRW bn Ⓡ) 2.6% 2.2% 1.9% OPEX ratio 1.4% over Revenue: Interest income increased from asset growth Ordinary expenses: Continually reduced with labor cost cuts and cost efficiency increase avg, balance 162 123 109 76 IBT '17 '18 '19 H1 20 4 Treasury - Funding: Total 12.9BN RMB in 1H (issued 4.4BN RMB ABS in March) Liquidity: Increased cash holdings based on lowered market rate and executing liquidity supply policy 123 Applied end-of-term KRW/RMB exchange rate of Seoul Money Brokerage Services 41 Liquidity (KRW tn ³) 111.0% 106.6% 102.9% 102.8% ALM 1.5 Cash 0.8 0.8 0.8 '17 '18 '19 H1 20 HYUNDAI#44Cautionary Statement with Respect to Forward-Looking Statements In the presentation and in related comments by Hyundai Motor's management, our use of the words "expect," "anticipate,” “project,” “estimate,” “forecast,” “objective,” “plan,” “goal," "outlook,” “target," "pursue” and similar expressions is intended to identify forward looking statements. The financial data discussed herein are presented on a preliminary basis before the audit from our Independent Auditor. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, actual results may differ materially due to numerous important factors. Such factors include, among others, the following changes in economic conditions, currency exchange rates or political stability; shortages of fuel, labor strikes or work stoppages; market acceptance of the corporation's new products; significant changes in the competitive environment; changes in laws, regulations and tax rates; and the ability of the corporation to achieve reductions in cost and employment levels to realize production efficiencies and implement capital expenditures at levels and times planned by management. We do not intend or assume any obligation to update any forward-looking statement, which speaks only as of the date on which it is made. HYUNDAI