Investor Presentation June 2018 Cautionary Statement with Respect to Forward-Looking Statements

In the presentation that follows 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; final data will be included in HMC’s Independent auditor’s report. 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.

1 Current Status of HMC Balanced Growth

Global Sales Trend Brand Value Growth (Unit: 1,000 vehicles) (Unit: US$ in Billions) 2.9% CAGR ’10-’17 Focus on Value Growth Strategy 4,843 4,917 (U$ 5B in ‘10 → 13.2B in ’17, 162%↑) 4,621 4,835 4,392 4,532 4,099 25 24.4% 3,701 19.3% 20.5% 30% 20 15.6% 11.1% 20% 15 9.3% 8.5% 5.1% 10 10% 5 0% 5.0 6.0 7.5 9.0 10.4 11.3 12.5 13.2 0 -10% 2010 2011 2012 2013 2014 2015 2016 2017

2010 2011 2012 2013 2014 2015 2016 2017 HMC Brand Value (Billion US$) HMC Value Growth (%)

Source : Company data (Retail sales excluding CKD sales) Source : Interbrand

Initial Quality Study Vehicle Dependability Study (Unit: number of problems per unit) (Ranks among Non-Premium) (Unit: number of problems per unit) (Ranks among non-premium)

2 2 2 3 3 4 9 16 15

st 95 1 92 188 169 88 90 158 133 74 124 68

50 2015 2016 2017 2018 2018 2014 2015 2016 2017 2018

(Ranks among Premium)

Source : J.D. Power Source : J.D. Power

3 Balanced Sales Growth through Global Plants (YTD)

9 manufacturing plants ( ), 6 R&D facilities ( ), 18 direct sales subsidiaries ( ), sales in more than 200 countries globally

‘17. 1H ‘18. 1H (Unit: 1,000 vehicles)

+23.4% +1.9% △3.4% 71 88

274 279 Russia 361 349 △3.3% +2.8% 346 335 EU China

345 354 US

Korea

△0.3% +0.9% △9.7% +8.4% ‘17. 1H ’18. 1H ’17. 1H ’18. 1H +7.8% 263 291 263 242 84 90 2,202 2,195 Others 1,823 1,839 India Brazil (MEA, APAC, Turkey, etc) Global Global (ex-China) (Global Retail Sales including CVs)

Czech Plant Russia Plant Turkey Plant India Plant China Plant US Plant Brazil Plant Source: Company data (Retail sales excluding CKD and CVs for each region)

4 Balanced Sales Growth by Diversified Business Portfolio

* Geographically Diversified Portfolio (%) Marketable Product Mix (%)

Hyundai 15.2 18.0 16.8 18.6 16.0 15.4 Hyundai 49.1 14.5 29.7 6.6

VW 12.6 7.1 29.4 39.4 3.0 8.5 VW 56.7 16.6 21.4 5.3

GM 35.3 3.5 0.7 45.0 3.4 12.1 GM 27.4 11.1 35.0 26.5

Toyota 22.4 26.4 9.6 13.5 16.8 11.2 Toyota 37.5 10.4 39.1 13.0

Honda 13.6 34.7 3.2 27.6 14.3 6.5 Honda 40.9 11.1 46.7 1.3

0 20 40 60 80 100 0 20 40 60 80 100

Domestic North America Europe China Asia (ex-China) Others A+B+C D+E+F RV Others

Source: Company data for HMC 2017 Global Retail Sales, Competitor information from IHS (CY2017 data) *A+B+C=Mini+Sub Compact+Compact; D+E+F=Mid-Size+Large+Luxury; RV=SUV+MPV; Others=PUP and others; excluding HCVs

5 Key Strengths for HMC Value Growth (Product Competitiveness)

Kona and New Santa Fe with outstanding specification received excellent remarks from customers

Kona (Entry CUV – B segment)

Specification Hyundai Kona (18MY) Chevrolet Trax (18MY) Toyota HR-V (18MY)

Displacement 2.0L 1.4L 1.8L

Max. Power 175 @ 5,500 138 @ 4,900 141 @ 6,500

Mileage (City/Highway) 27mpg / 33mpg 25mpg / 33mpg 28mpg / 34mpg

Safety (Small Overlap) - (Good) - (Good) - (Acceptable)

MSRP USD 19,000 ~ 26,400 USD 21,000 ~ 27,295 USD 19,670 ~ 25,140

1H18 US Sales Volume 15,193 (released Mar. 2018) 46,989 45,555

New Santa Fe (Compact SUV – D segment)

Specification Hyundai Santa Fe (19MY) Chevrolet Equinox (19MY) Jeep Cherokee

Displacement 2.4L 1.5L 2.0L

Max. Power 235 @ 6000 170 @ 5600 180 @ 6400

Mileage (City/Highway) 22mpg / 29mpg 22mpg / 29mpg 21mpg / 29mpg

Safety (Small Overlap) Top Safety Pick Plus (Good) - (Good) - (Moderate)

MSRP USD 25,000 ~ 36,600 USD 24,795 ~ 34,795 USD 25,495 ~ 37,775

Expected Release Date Aug. 2018 Apr. 2019 Aug. 2018

Source: Autodata

7 Value Growth (Brand Enhancement)

Enhancement in Brand Value Awards and Accolades (Ranks) (Unit: US$ in Millions) Date Titles Regions Models Auto Express New Car Awards +5% ’18.07 U.K KONA, KONA EV +11% 2018 +8% 35 35 ’18.06 Green Car of the Year U.K KONA EV 39 +16% 40 13,193 ’18.06 Vehicle Satisfaction Awards U.S. Accent, Elantra, Sonata 43 12,547 ’18.06 Best in Class Mid-Size SUV U.K Santa Fe +20% 11,293 ’18.05 Good Design Award Australia KONA 10,409 +24% 53 ’18.05 Game Changer Award U.K I30 N 9,004 Auto Trader New Car Awards +19% ’18.05 U.K Tuscon 61 2018 7,473 65 ’18.04 Red Dot Design Awards Germany NEXO, KONA

6,005 ‘18 Consumer Report ’18.02 U.S. Genesis (Top Auto Brands) 5,033 ’18.02 iF Design Award 2018 Germany G70, KONA, i30, Solati

‘17.12 ’17 Good Design Award U.S. Sonata

’17 JD Power ‘17.09 U.S. Elantra (Driver Experience in Compact)

’17 Automotive Brand Contest ‘17.09 Germany i30 (Exterior and interior design)

’17 US Tech Experience Index Study ’17.09 U.S. Elantra 2010 2011 2012 2013 2014 2015 2016 2017 (Highest in Compact Segment)

China Automobile Customer Tucson, Yuedong, Yuena, ’17.09 China  Brand value has increased an average of 14% each year, since the Satisfaction Index (SUV A) Langdong implementation of Modern Premium in 2011. Ideal Vehicle Awards ‘17.08 U.S. G90 Source: Interbrand (Best in Class, Ideal Luxury Car)

8 Volume Growth

HMC’s global sales to increase with capacity expansions

Capacity Expansion and Sales Plan Production Capacity Expansion 2018 Sales Plan

(Unit: 1,000 vehicles) 2016 2017 2018 (P) (Unit: 1,000 vehicles) 2017 2018 (P)

Korea 1,870 1,870 1,870 Korea 689 701

China (BHMC) 1,100 1,325 1,475 Overseas 3,818 3,974 India 650 650 650

US 370 370 370 Americas 1,185 1,222

Czech 300 300 300 AMEA 1,020 1,016 Turkey 200 200 200

China 785 900 Russia 200 200 200

Brazil 170 170 170 Europe 767 773

Others 55 55 55 CVs 60 64 Overseas 3,045 3,270 3,420

Total 4,915 5,140 5,290 Total 4,507 4,675

Source: Company data * Above figures in sales plan are based on wholesales ** BHMC : Beijing-Hyundai Motor Company / Others : Sichuan-Hyundai Motor Company, Others

9 Cost Structure Improvement (Platform Integration)

Platform integration will reduce development costs and deliver greater economies of scale

Platform Integration History

1999 2005 2008 2013 2019 ~

Development of 1st Generation 2nd Generation Hyundai Common Integrated Integrated acquired Kia Platforms Platform Platform 2015

 10 Platforms  6 Integrated  Apply Advanced for Hyundai & Platforms for Integrated Kia models all line-ups Platforms

Models per Type of Platform The 4 concepts of 3rd Generation Integrated Platform

Mass Production Niche Market Innovative Global (Innovation) (Global development/production)

 Reflect the market trend and  Respond to the various environmental regulations needs of global customers

Modular Platform (Modularization) (Advance)

 Increase the quality and  Expand integrated planning production efficiency and commonization Micro-Small Small-Mid Mid-Large FR-Mid FR-large LCV

Source: Company Data

10 Future Technology Hyundai Motor’s Vision for Future Mobility “Clean Mobility, Freedom in Mobility, Connected Mobility” Future Technology (Clean Mobility)

By 2020, HMC will Improve fuel efficiency by 25% on average, securing the product competitiveness in the market

2020 Fuel Efficiency improvement Roadmap

Improve powertrains  Refresh 70% of the current powertrains Category 2014 By 2020 (7 out of 10 P/T line-ups to be replaced)  Kappa, Gamma, Nu,  New engines Gasoline Theta II, Lambda II,  Performance  Improve performance of 「Nu」 for mid-seg Tau  Turbo Charger and 「Kappa」 engines for small-seg sedan Diesel  U, R, A, S  New engines  Expand engine lineups with turbo-charger  4 spd : Kappa, CVT  Increase number  6 spd : Gamma, of transmissions Transmission Theta, Lambda DCT  Improve current 6-speed and 8-speed  Improve transfer  7 spd : Gamma DCT transmission efficiency  8 spd : Lambda

Reduce weight  Increase portion of advanced strength Category 2014 By 2018 steel for the chassis of platform to make vehicles safer and lighter Advanced strength 33% ~ 52% 48% ~ 62%  Apply more lightweight materials such as steel aluminum, foamed plastic and etc.

Expand Green Car line-ups  Increase green car line-up to 31 models Category 2018 2020 2025 by 2020 and 38 models by 2025 HEV 6 Models 10 Models 10 Models  Introduce new green car technologies PHEV 4 Models 11 Models 12 Models

 Aiming to be the 2nd largest manufacturer EV 3 Models 8 Models 14 Models in green car market FCEV 1 Model 2 Models 2 Models Total 14 Models 31 Models 38 Models

*Including Kia models

12 Future Technology (Clean Mobility)

Mid / Long-term Green Car Development Strategy

Electric Combustion + Electric Combustion Green Car Development Trend Line-up Strategy Establish a flexible platform to swiftly react to market changes Expand Green Car line-up to 31 models by 2020 and 38 models by 2025 [Size] Large Category 2018 2020 2025 Mid Mid Mid-large New Car Launch Rank 2nd 2nd 2nd Small Low-mid Number of 14 31 38 Green [Fuel] models models models Respond to fuel Secure competitive Lead regulation / Cars efficiency regulations fuel efficiency green car Technology *Including Kia models *Source : IHS, Company data

13 Future Technology (Clean Mobility)

Maintain our global green car sales ranking (No.2) and leading positon in EV and FCEV technology

Electric Vehicle EV Performance Comparison

Chevrolet VW e-Golf KONA EV Specification Hyundai Kona EV BOLT EV 2017  Battery capacity : 64 kWh Battery 64 kWh 60 kWh 35.8 kWh  Max. distance : 482 km (WLTP) 546 km (NEDC) Motor 150 kW 150 kW 100 kW  Max. speed : 167 km/h

 Fast Charging : 54 min Fuel Efficiency 143 MPGe 135.6 MPGe 119 MPGe (combined)  Normal Charging : 9h 35 min

· WLTP (Worldwide harmonized Light vehicle Test Procedure) Driving Distance 241 miles 238 miles 125 miles · NEDC (New European Driving Cycle)

Fuel Cell Electric Vehicle FCEV Development

 Assuring ‘FCEV Leading Maker’ position by producing the most NEXO efficient FCEV model, NEXO

 Max. distance: 609 km (Korea)  Major components are independently developed, e.g. FCEV stack 378.4 mile (US)  The first auto maker to successfully begin commercial production  Max. speed: 177 km/h several years ahead of competitors  Fuel efficiency: 96.2km/kg HMC Toyota Honda  More than 600km with a 700-bar hydrogen tank can be fully charged Production year 2013 2015 2016 in 5 minutes

Source: Company data

14 Future Technology (Clean Mobility)

HMC independently developed and obtained distinctive technology on hybrid system

Hybrid Vehicle HEV Performance Comparison

Parallel Hybrid Drive System Electric Motor Hyundai IONIQ Toyota Prius Simpler in structure compare with other Powered by advanced lithium-ion battery Specification Ford C-Max types of hybrid (Blue) (Eco)

IONIQ HEV Net Power 141 ps 121 ps 141 ps  Displacement : 1.6ℓ  Net Power : 141 ps Battery 1.56 kWh 0.75 kWh 1.40 kWh  Fuel Efficiency : 58 mpg Fuel Efficiency 58 MPG 56 MPG 39 MPG  Launched in 2016 (combined) Power Split Power Split System Parallel System System System

Plug-in Hybrid Vehicle PHEV Performance Comparison

Hyundai IONIQ Toyota Prius Specification Chevrolet Volt PHEV Prime IONIQ PHEV Battery 8.9 kWh 8.8 kWh 18.4 kWh  Displacement : 1.6ℓ

 Net Power : 141 ps Motor 44.5 kW 90 kW 111 kW  Launched in 2017 Fuel Efficiency 20.5 km/ℓ(Gas) 21.4 km/ℓ(Gas) 17.8 km/ℓ(Gas) (combined) 5.5km/kWh(Elec) 6.4km/kWh(Elec) 5.3km/kWh(Elec)

Driving Distance 46 km 40 km 89 km (Korea) Source: Company data

15 Future Technology (Freedom in Mobility)

HMC targets to bring level 4 autonomous driving in smart cities by 2021 and fully autonomous driving by 2030

“Intelligent Safety Vehicle” Development Philosophy

Provide ultimate safety not only to the driver but also to the passengers / pedestrians / other drivers, by having vehicle proactively analyzing driving environments and assist driver when necessary

 Development status  Levels of Driving Automation (SAE)

Level 1 & Level 2 Lev. Definition Note

5 Full Automation In advanced research

HDA (Highway TJA (Traffic Jam Advanced 4 High Automation First show in CES 2017 Driving Assistance) Driver Assistance Assist) System Completed advanced 3 Conditional Automation development Level 3

2 Partial Automation Partially in market (HDA, etc.)

1 Driver Assistance In market (LKAS, SCC, AEB, etc.) Automated Lane Highway TG Intersection Change Entry/Exit Entry/Exit *SAE : Society of Automotive Engineers

16 Future Technology (Freedom in Mobility)

HMC targets to bring level 4 autonomous driving in smart cities by 2021 and fully autonomous driving by 2030

Mid-to Long-term Directions Five base for Open Innovation

Complete Level 4 Berlin Beijing • Smart City • AI Partial Level 4 • Mobility Solution • ICT Cooperation Partial Level 4

Tel Aviv Seoul Silicon Valley • Autonomous Driving • Tech Directions • Innovation CRADLE • Start-up Investment • Future Strategy • Corporate & Colleague

Current Achievements Strategic Partnership • Installed partial Autonomous driving features (Level 1 ~ 3) in new model Company Cooperation Core Area • Partial Level 4 Autonomous Driving in highway Level 4 Autonomous Driving in 200 km • Autonomous Driving Platform From Seoul to PyeongChang • Sound Recognition, IoT, Connected Car

• Autonomous Driving Software • Cloud System, Sensor & Controller

• Radar & AI CVs • Sensor based Recognition

17 Future Technology (Connected Mobility)

HMC has concentrated on R&D and increased investment for future technologies

Major areas

Remote Support Fully Autonomous Smart Traffic Mobility Hub

Remotely connect cars to Fully autonomous using V2X Locate vehicles and analyze Vehicles become center of prevent or solve problems (V2X : Vehicle to Everything) traffic to navigate the car our lives

“ Vehicles become information hubs connecting cars to life ”

4 Core Technologies

Car Network Tele Network Cloud Big Data

■ ‘Open Innovation’ partnership with global companies (Cisco partnership established in April 2016) ■ Integrated infrastructure combining network, cloud, big data and security solutions

18 Future Technology (Connected Mobility)

Bring our customers the most efficient, convenient, economical mobility solution

Major Advanced Technologies IoT

Smart Traffic Assist Augmented Reality Remote Control

By monitoring the road ahead, Connecting with road, integration of With automated steering, braking keep a safe distance around the car real camera & footage gives 3D navigation and changing direction aid system

User Interface

Driver Monitoring Voice Recognition Monitor Recognition

Protecting the driver from any Interactive voice recognition Greater control of multiple features situations by monitoring driver state through AVN system and IT tech With 3D hand gesture recognition

19 New Brand Genesis New Brand (Introduction of Genesis)

HMC introduced new global luxury brand ‘Genesis’ as a driver for growth

Establish virtuous business circle Penetrating fast growing premium market

(Unit : millions)

11.5 11.8 12.0 12.2 10.5 11.0 9.3 10.0 8.6 7.2 7.9

Why 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Genesis? Unlock the untapped profit opportunity Elevate entire brand and organization

10.0

7.6 7.1 6.5 6.9 5.6 6.0 5.0

3.1

BMW Toyota Daimler Renault Nissan GM Honda VW Ford

Source: IHS, Company data

21 New Brand (Strategy of Genesis)

Genesis Brand to achieve full line-up of 6 models by 2021

History

2008 2013 2015 2016 2017

Genesis 1st gen. Genesis 2nd gen. Launched G80 G70 (Hyundai) (Hyundai) Genesis brand & EQ900 (G90) (Genesis) (Genesis)

Roadmap

Phase 1 ( ~ ‘17) Phase 2 ( ~ ‘ 21) Phase 3 (‘ 21 ~ )

Sales Channel Sales Channel Sales Channel Share existing sales network Selectively open exclusive dealers Separately operate exclusive dealers and resources and operate online sales channel

Line-up : 3 models Line-up : 6 models Line-up : Diversify powertrain

22 Brand New Brand (High Performance Vehicle, N Brand)

N offers race track-capable vehicles to customers who truly love cars

Three DNA of N Brand Concept Cars

Unique carving feel when RM16 Corner Rascal cornering  Powertrain: 2.0T GDI  Max. Power: 300 PS  Max. Torque: 39kg.m Everyday Performance for everyone Sports Car N 2025 Vision Gran Turismo  Powertrain: Hydrogen Fuel Cell Race Track Technology originated from Capability motor sport  Max. Power: 884 PS

‘Veloster N’ launch RM14 Concept RM 16 Concept 2nd N Brand model ‘Veloster N’ launched in Korea

2012 - 2014 2015 2016 2017 2018

Inception of R&D Introduce N Brand ‘i30 N’ launch st Project RM (Racing Midship) Vision Gran Turismo 1 N Brand model ‘i30 N’ launched in Europe

24 New Brand (High Performance Vehicle, N Brand)

Internalized the motor sport technology and then applied it to road going cars to make it fun-to-drive

Models

i30 N Veloster N

 Max. speed: 250 km/h  Max. speed: 250 km/h

 Max. power: 275 ps / 6,000 rpm  Max. power: 275 ps / 6,000 rpm

 Max. Torque: 36 kg·m / 1450-4700 rpm  Max. Torque: 36 kg·m / 1450-4700 rpm

 Acceleration (0 – 100 kph) : 6.1 sec  Acceleration (0 – 100 kph) : 6.1 sec

Core Tech

High Power Output High Strength High Technology Lightweight Aerodynamic Design

 N High-performance  N Special Chassis  Rev Match (Automatically  Use of lighter materials  Aerodynamic design which engine Synchronize engine and and an optimized frame increases downforce such  Durability completed over transmission) structure as the front splitter, side  N 6-Speed Manual 10,000km of testing skirts, and double-deck  N Electronic Control Transmission rear spoiler Suspension

25 Source: Company data Shareholder Value Shareholder Value

HMC has increased shareholder return, enhanced communication with shareholders, and improved transparency

Key Activities

Apr. 2015 Mar. 2016 Jan. 2017 Jan. 2018 Established Corporate Posted Corporate Announced Will appoint Governance and Governance Charter Mid-long Term An Outside Director* based on Communication Committee Dividend Policy Recommendation of Shareholders * In charge of Shareholder’s Rights protection

Mid-long Term Dividend Policy

27% 6000 20% 17% 11% 20%  Allocate 30 to 50% of annual Free Cash Flow for shareholder returns 4000 6% 0% 2000 1,950 3,000 4,000 4,000 4,000  Aim to lift its payout ratio to the average of global automakers 0 -20% 2013 2014 2015 2016 2017 DPS (KRW) Payout Ratio (%) *Free Cash Flow from non-finance division *DPS for ordinary shares including interim dividend

27 Appendix Balance Sheet (K-IFRS Consolidated)

(Billion KRW) End-2017 End-1H18 Diff. % chg. Asset 178,199 179,332 +1,133 +0.6%

Current Asset(a) 73,976 72,908 △1,068 △1.4%

Liabilities(b) 103,442 104,379 +937 +0.9%

Current Liability(c) 43,161 44,265 +1,104 +2.6%

Debt(d) 72,001 72,933 +932 +1.3%

Provision 6,654 6,815 +161 +2.4%

Equity(e) 74,757 74,953 +196 +0.3%

Capital Stock 1,489 1,489 △0 0.0%

Capital Surplus 4,201 4,201 0 0.0%

Retained Earnings 67,332 68,065 +733 +1.1%

Current Ratio(a/c) 171.4% 164.7%

Liability to Equity(b/e) 138.4% 139.3%

Debt to Equity(d/e) 96.3% 97.3%

EBITDA/Interest Exp. 24.3x 23.7x

29 Income Statement (K-IFRS Consolidated)

(Billion KRW) ‘17. 2Q ‘17. 3Q ‘17. 4Q ‘18. 1Q ‘18. 2Q yoy qoq Revenue 24,308 24,201 24,501 22,437 24,712 +1.7% +10.1%

Gross Profit 4,727 4,340 4,218 3,468 3,926 △16.9% +13.2%

Margin (%) 19.4 17.9 17.2 15.5 15.9

SG&A 3,382 3,135 3,443 2,786 2,976 △12.0% +6.8%

Portion (%) 13.9 13.0 14.1 12.4 12.0

Operating Income 1,344 1,204 775 681 951 △29.3% +39.6%

Margin (%) 5.5 5.0 3.2 3.0 3.8

Income before tax 1,165 1,100 416 926 1,129 △3.1% +21.9%

Margin (%) 4.8 4.5 1.7 4.1 4.6

Net Income 914 939 1,288 732 811 △11.3% +10.8%

Margin (%) 3.8 3.9 5.3 3.3 3.3

Depreciation 552 568 589 571 576

Amortization 307 321 341 344 352

EBITDA 2,203 2,093 1,705 1,596 1,879

30 Sales Results (Regional Wholesales, Quarterly)

2017. 2Q 2018. 2Q (Thousand units)

China Korea America

+106.8% +1.3% △1.8% Europe

+0.7% 105 217 183 185 309 303

207 208

+10.6% AMEA +0.9% +4.1%

256 267 1,077 1,192 963 971

Global Global(ex-China) (Global Wholesales including CVs)

Source: Company Data (excluding CKD, excluding CVs for each region except Korea) 31 Sales Results (Retail Sales, Quarterly)

2017. 2Q 2018. 2Q (Thousand units)

W. Europe China Korea US +1.1% +11.8% +1.3% +4.8%

144 145 155 174 183 185 178 186

Russia Brazil

+7.7% +19.7%

41 49 44 47 +2.5% +1.7%

India Others

+6.9% △8.1% 1,127 1,155 963 979

Global Global(ex-China) 260 239 122 130

(MEA, APAC, Turkey, etc)

Company Data (Excluding CKD sales) 32