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Road to sustainability 2019 Sustainability Report Content Materiality Report 3.1 CSV Strategy System 030 3.2 Stakeholder Engagement 031 3.3 Sustainability Management Materiality Analysis 032 Introduction 3.4 Material Topic #1. Producing Eco-friendly Vehicles 034 3.5 Material Topic #2. Customer and Product Safety 036 1.1 CEO Message 003 3.6 Material Topic #3. Social Value Creation 038 1.2 Company Overview 004 1.3 Management Philosophy 006 1.4 Vision & Values 007 Sustainability Performance OUR SYSTEM OUR VALUE 4.1 Corporate Governance 041 4.4 Customer 045 4.2 Ethical and Compliance 4.5 Environment 059 Management 043 4.6 Collaboration 068 4.3 Risk Management 044 4.7 People 078 4.8 Community 089 homepage facebook This report has been published as 2018 Highlights Appendices an interactive PDF, allowing readers to move quickly and easily to pages youtube 2.1 New Milestones 009 5.1 Business Performance 104 in the report, and including shortcuts to related web pages. 2.2 New Forms of Mobility 014 5.2 Facts & Figures 106 Reference Page instagram 2.3 New Values 023 5.3 GRI Index 118 Related Link 5.4 Independent Assurance Statement 122 twitter 5.5 About This Report 125 Video Clip 1. Introduction 2. 2018 Highlights 3. Materiality Report 4. Sustainability Performance 5. Appendices 003 CEO Message Dear Readers, I sincerely appreciate all your steadfast support for Hyundai Motor Company over the years. Hyundai Motor Company (Hyundai) was able to further solidify its position as a global automaker amid In promoting collaboration, we are building a partnership of trust with our suppliers with a long-term a difficult environment in 2018 due to the ardent support of stakeholders and dedication of employees. perspective, while facilitating the development of the automobile industry and creation of jobs by Concurrently, we are mapping out transformative strategies for a better future. supporting their efforts to strengthen capabilities. Our plan for 2019 is to increase our contributions to the Future Growth Fund that Hyundai Motor Group is implementing for our company-wide tier 1 to 3 Uncertainty in the global economy remained high. Electric vehicles, digitalization and mobility services are suppliers. By funding suppliers experiencing liquidity problems, we seek to help them stabilize their bringing a paradigm shift in the automobile industry, demanding the industry to challenge itself to ever business and invest in new technologies, thereby bolstering competitiveness of the future automobile higher standards. Internally, we are laying the foundation in emerging markets for sustainable growth as industry. we restore profitability in the U.S., China and other major markets while responding to external changes. As for our people, we are committed to establishing an innovative corporate culture and improving Despite the challenges and difficulties at home and abroad, the Genesis G70 and Hyundai Kona won the employee safety. We are promptly responding to the ever-changing industry environment by hiring 2019 North American Car, Utility and Truck of the Year (NACTOY) awards, further solidifying our global talent through year-round recruitment, and setting up a system where employees can expand their position as a maker of top-quality products. In addition, we ranked top position in J.D. Power’s 2018 US competencies through regular training. We are also building a culture that promotes creativity and Initial Quality Study (IQS), and our engine was recognized as WardsAuto’s ‘World’s 10 Best Engines’ list embraces change as a driver of growth. Moreover, we were able to achieve zero fatal accidents at all our for the second consecutive year. Hyundai was also chosen as the Manufacturer of the Year by BBC’s business sites for two consecutive years in 2018, as a result of our world-wide safety and health-related Top Gear in the UK, and the Most Innovative Brand by Auto Zeitung Auto-Trophy in Germany. Moreover, measures. we launched the 8th generation Sonata built with advanced digital technologies and a third-generation platform, confirming our pledge toward customer satisfaction and technical rigor to deliver customized Lastly, for our community, we are developing and operating programs for creating shared value (CSV) mobility experience as well as to improve convenience and safety. that leverage our expertise and skills. In addition to IONIQ Forest, Robocar Poli traffic safety campaign and other ongoing activities, we launched ‘Driving Plus’ program in 2019 designed to promote safe Hyundai is also fulfilling its social responsibilities as a global corporate citizen. In particular, we are driving without fear and other activities developed to create new social values. Furthermore, we are resolving social issues with a spirit of challenge that transcends conventional thinking in areas we define contributing to sustainable development of local communities across the globe by cooperating with as five sustainability values − customer, environment, collaboration, people, and community. Each value various stakeholders in many projects, such as the Hyundai Green Zone project and preservation of the reflects the interests of all our stakeholders. Petra World Heritage Site in Jordan. In enhancing customer value, we bolstered our product line-up for the SUV market by unveiling the large Even this very moment, we are making utmost efforts to ‘realize the dreams of humankind by creating a President & CEO, SUV Palisade, and released the new Sonata sporting an array of smart mobility devices. Each and every new future through ingenious thinking and continuously challenging new frontiers’ − our management Hyundai Motor Company new car we launch reflects our focus on innovation and embraces customer needs. We are also leading philosophy which all of us at Hyundai pursues. Thanks to your steadfast trust and interest in Hyundai, we Won Hee Lee innovation in the Industry 4.0 era through collaboration with various stakeholders by establishing Hyundai have been able to achieve unprecedented growth and improve the business foundation for becoming a CRADLE, an open innovation center, in Silicon Valley, Tel Aviv, Berlin and other global bases. global automaker. With deep gratitude, we will pursue sustainable value with unparalleled commitment, strengthen our fundamental competitiveness, and proactively respond to the changing world. With regard to the environment, we announced our plan to develop electrification models ‒ hybrid, electric, and fuel cell electric vehicles (FCEVs) ‒ as well as our objectives through 2025, with the goal of Thank you for driving Hyundai forward to create a future that is remarkable as our past. shifting into clean mobility. Specifically, we revealed our plan to make a large-scale investment by 2030 in FCEVs, an area where we have world-leading technological competitiveness. We will take the lead in realizing a hydrogen society as a first mover through collaboration with various industries. 2019 Sustainability Report 1. Introduction 2. 2018 Highlights 3. Materiality Report 4. Sustainability Performance 5. Appendices 004 Company Overview 2018 Best-selling Models (Unit: Vehicle sold globally) Smart mobility solution provider Since its establishment in 1967, Hyundai has been continually challenging itself to take on new possibilities as a lifetime partner that provides its customers with new experiences and values. As a global brand that represents Korea, we will develop innovative technology to take a quantum leap forward, thereby leading changes in the automotive industry. Elantra (Avante) Company Profile 702,497 Tucson Corporate Information Global Production and Sales in 2018 Number of Employees as of 2018 Company (Unit: Vehicle) (Unit: Person) Hyundai Motor Company 577,662 Name CEOs Mong Koo Chung, Total 123,921 Euisun Chung, Won Hee Lee, Eon Tae Ha 5 No. of 4 123,921 persons Employees Overseas Production Korea Overseas 3 Korea Type of Manufacturing business 2,887,519 4,635,356 1,747,837 54,166 69,755 Accent Business (Production and sales of automobiles) 2 Date of December 29, 1 362,315 Establishment 1967 (IPO) (June 28, 1974) Total Assets KRW 180,655.8 billion Korea 721,078 Sales Revenue KRW 96,812.6 billion Sonata Production 4,635,356 units Sales 1 North America 11,332 315,507 Credit Korea Ratings: AAA 4,589,199 2 Europe 9,745 Ratings NICE Investors Service: AAA Overseas Korea Investors Service: AAA 3 China 18,132 3,868,121 Moody’s: Baa1 4 India 9,323 S&P: BBB+ 5 Others 5,634 Santa Fe * As of the end of 2018; Based on K-IFRS consolidated financial statements * As of the end of 2018 282,682 2019 Sustainability Report 1. Introduction 2. 2018 Highlights 3. Materiality Report 4. Sustainability Performance 5. Appendices 005 Europe 43 44 45 47 51 37 31 42 34 40 49 48 36 32 33 38 52 39 8 21 41 9 24 35 46 2225 58 59 62 10 50 13 14 60 26 27 Global Network 57 53 North America, 1112 Hyundai operates production plants, technology research institutes, and design centers in 56 Central & 28 29 55 30 23 major markets overseas. We sell vehicles across the globe, with around 6,200 sales networks in South America 16 18 approximately 200 countries. 15 17 28 Asia & Pacific * As of May, 2019 54 20 Asia & Pacific Middle East & Africa 1 Namyang Technology Research Center / 28 Hyundai Motor CV Africa & Middle East Regional Namyang Design Center Headquarter Middle East & 2 Korea Central Research Institute 29 Hyundai Motor Africa & Middle East Headquarters Africa 3 Environmental Technology Center 30 Africa & Middle East Quality Center 4 Namyang Technology Research Center Proving Ground 61 5 Hyundai Motor Ulsan Plant 19 6 Hyundai Motor Asan Plant Europe North America, Central & South America 7 Hyundai Motor Jeonju Plant 8 Hyundai Motor Group China (HMGC) 31 Hyundai Motor Europe Headquarters (HME HQ) 50 Hyundai Motor North America Headquarters 9 Beijing Hyundai Motor Company (BHMC) 32 Hyundai Motor Manufacturing Czech (HMMC) (HMNA HQ) 10 Hyundai Motor Technology & Engineering Center 33 Hyundai Motor Czech (HMCZ) 51 Hyundai Auto Canada (HAC) (China) 34 Hyundai Motorsport GmbH (HMSG) 52 Hyundai America Technical Center Inc.
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