Seoul, Korea, August 12, 2000 — Hyundai Electronics Industries Co. Ltd. recently conducted an investor relations (IR) conference call, targeting more than 250 foreign investors around the world. Following the call, Hyundai invited approximately 300 local and foreign institutional investors and financial industry representatives to attend a corporate presentation covering the financial results for the 1st half of this year. During the presentation, Hyundai announced that the revenue for 1st half of this year increased to 4,400 billion won (4,800 billion, including consolidated earning from overseas subsidiaries), doubling the amount earned during the same time period last year. Hyundai also recorded a gross profit of 1,200 billion won (consolidated, 1,500 billion won), an increase of 3.5 times the amount recorded during the same time period last year. The gross profit ratio for Hyundai is 27% (consolidated, 31%) and the operating profit is 620 billion won (consolidated, 840 billion won), representing an increase of 25 times over last year, with a 14% operating profit ratio (consolidated, 17%). Hyundai achieved this sizable profit increase following last year’s merger in the semiconductor sector. Hyundai announced a record-breaking sales profit this year, based on the recovery of semiconductor market combined with the growing Liquid Crystal Display (LCD) business. As a result, Hyundai was able to write off non-recurring losses totaling 760 billion won for the 1st half of this year while still maintaining a sound financial position. The non-recurring losses consist of a 250-billion-won loss on the equity for Hyundai Investment Trust and Securities Co., Ltd., a 150-billion-won loss on the sale of a facility in Scotland, and a 360-billion-won loss for sales of stocks of affiliate corporations and inventory write-offs. Although Hyundai posted a 370-billion-won net loss for the 1st half of this year due to non-recurring losses, most of these losses occurred on paper only with no actual outflow of cash. When non-recurring losses without actual cash outflow are excluded, Hyundai shows approximately 220 billion won of Earnings Before Tax (EBT, consolidated 360 billion won) for the 1st half of this year. Through the combination of an effort to control local and overseas subsidiaries’ cash flow on quarterly base (instituted by new members of Hyundai’s Board of Directors), sound accounting practices, and the introduction of open management, Hyundai was able to write off the accumulated non-recurring losses for the 1st half. Therefore, Hyundai is expected to increase its asset efficiency and cash liquidity, thereby improving its income structure for the future. In addition, Hyundai’s debt was reduced to 9,400 billion won (consolidated, 11,500 billion won) from 12,300 billion won (consolidated, 14,500 billion won) as of October of last year, prior to the merger in the semiconductor sector. The debt was reduced to 8,500 billion won (consolidated, 10,600 billion won) at the end of July of this year and is expected to be further reduced to 7,700 billion won (consolidated, 9,500 billion won) by the end of this year. Hyundai hopes to reduce its debt to 4,800 billion won (consolidated, 6,500 billion won) by the end of 2001 in order to minimize interest expenses and raise the value of its stock. For the second half of this year, Hyundai expects its revenue to exceed 11,000 billion won (with overseas subsidiaries consolidated) due to increased semiconductor sales, improved profit resulting from reduced cost, and the write-off of non-recurring losses in the 1st half. Hyundai’s president and chief executive officer, Dr. Chong-Sup Park, has been actively conducting IR presentations for foreign investors in Japan, Singapore, Hong Kong, the U.S., England, and other countries. He has been meeting with foreign investors in person to explain company’s management strategy, present the sales and profit results for the 1st half, and to share the vision for the company’s future. As a result, Hyundai has received foreign investments equating to $700 million this year, with favorable assessments from local and foreign investors.
– Hyundai Electronics recently conducted an investor relations (IR) conference call, targeting more than 250 foreign investors around the world
