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Title: Investor Relations

1
Investor Relations January 2005
Automotive Steel Leader
2
Disclaimer
This presentation contains forward-looking
statements with respect to financial condition,
results of operation and business of Hyundai
HYSCO. Statements that are not historical facts,
including statements about HYUDAI HYSCOs beliefs
and expectations, are forward-looking statements.
Such forward-looking statements involve known
and unknown risks, uncertainties and other
factors which may cause the actual results or
performance of HYUNDAI HYSCO to be materially
different from any future results or performance
expressed or implied by such forward-looking
statements.
3
Contents

Business Performance
Financial Status
Major New Business
Corporate Strategy
Appendix

4
1. Business Performance

Growth by Year
Business Status
Sales

5
Business Performance
Growth by Year
2,962
CAGR 15. 55
2,683
2,320
1,901
1,580
1,438
(KRW bn)
898 1,088 1,394 1,653 1,944
540 492 507 667 739
72.4
27.6
6
Business Performance
Business Status
Auto Parts 3.2
Auto Parts 1.7
3rd Country
3rd Country
18.1
26.2
Steel Pipe 26.2
Steel Pipe 27.9
Japan46.7
Japan57.1
POSCO24.8
CRC 70.4
CRC 70.6
POSCO27.1
000 MT 2004 2005
000 MT
POSCO 628 24.8 697 27.1
Japan 1,448 57.1 1,198 46.7
3rd Country 459 18.1 672 26.2
Total 2,535 100.0 2,567 100.0
KRW bn 2004 2005
KRW bn
CRC 1,633 70.4 1,893 70.6
Steel Pipe 648 27.9 703 26.2
Auto Parts 39 1.7 87 3.2
Total 2,320 100.0 2,683 100.0
7
Business Performance
Sales
(000 TON)
(KRW bn)
3,216
2,683
3,094
3,005
3,002
2,791
2,320
1,901
1,580
1,438
CRC
CRC
Steel Pipe
Steel Pipe
01
02
03
04
05
01
02
03
04
05
1,839 2,121 2,372 2,205 2,308
952 881 844 800 786
898 1,088 1,394 1,653 1,944
540 492 507 667 739
8
Business Performance
Sales
(KRW bn)
(KRW bn)
739
667
1,944
540
1,653
507
492
1,394
1,088
Domestic
898
Auto
Others
Export
Export
05
01
02
03
04
01
02
03
04
05
501 705 811 929 1,118 57.5
232 241 330 372 386 19.8
165 142 253 352 440 22.7
348 350 351 464 450 60.9
192 142 156 203 289 39.1
9
2. Financial Status

O/P Margin ROE/ROA
Business performance
Financial Structure
Debt Level

10
Financial Status
O/P Margin ROE/ROA
Accelerated amortization of intangible asset and
reduction of depreciation period from 20 yrs to
15 yrs for CRC facility in Suncheon Works
decreased the O/P margin 2.6
11
Financial Status
Business Performance
(KRW bn) 01 02 03 04 05
Sales 1,438 1,579 1,901 2,320 2,683
Operating Profit 150 113 115 131 129
OP Margin() 10.4 7.1 6.0 5.6 4.8
Net Interest Exp. 97 62 49 40 41
Net Interest Exp./Sales () 6.7 3.9 2.6 1.7 1.5
F/X Conv. Gain (Loss) (-)19 22 (-)2 21.8 0.4
Ordinary Income 17 80 69 107 81
Net Income 16 67 54 84 60
Depreciation 85 86 89 150 120
EBITDA 235 198 204 281 249
EBITDA Margin() 16.3 12.6 10.7 12.1 9.3
EBITDA/Net Interest Exp.(x) 2.4 3.2 4.1 7.0 6.1
12
Financial Status
Financial Structure
(KRW bn, US mill) (KRW bn, US mill) 01 02 03 04 05

Assets Assets 2,020 1,999 1,934 2,136 2,444
Current 407 447 425 537 668
(Deposits) (92) (62) (57) (35) (27)
Fixed Asset 1,613 1,552 1,509 1,599 1,776
(Tangible F/A) 1,505 1,452 1,409 1,548 1,704
(Intangible F/A) 68 66 59 9 25
Liabilities Liabilities 1,210 1,137 1,040 1,178 1,443
Debt 991 873 752 865 970
(Foreign Debt) (348) (310) (223) (200) (104)
Equity Equity 810 862 894 958 1,001
Net Debt/Equity() Net Debt/Equity() 110.9 94.1 77.7 86.6 94.1
ROE() ROE() 2.0 8.0 6.1 9.0 6.1
13
Financial Status
Debt Level
KRW bn 05.3 05.6 05.9 05
Debt 934.2 944.3 985.5 969.5
Net Debt 900.1 923.6 959.2 942.4
05.3 05.6 05.9 05 12
T. Liability/Equity 134.2 132.8 137.1 144.1
Debt/Equity 96.1 94.2 97.2 96.8
Net Debt/Equity 92.6 92.1 94.6 94.1
14
3. Major New Business

Dangjin Works
Global Networks
TWB (Tailor Welded Blanking)
H/F (Hydro Forming)

15
Major New Business
Dangjin Works
Acquisition Normalization Cost
CRC Mill
(KRW bn)
Acquisition Cost Normalization Cost Normalization Cost Normalization Cost Total
Acquisition Cost Upto 2004 2005 2006(P) Total
180.9 24.2 216.3 119.9 360.4 541.3
16
Major New Business
Dangjin Works - CRC Facility Layout
Step 1 Completed
Step 2 Completed
Step 3 Aug. 06
Products(000MT) Products(000MT)
Item Capa.
CR 350
CR/GA 1,050
CC 100
PO 200
HGI 300
Total 2,000
17
Major New Business
Dangjin Works - Normalization
Completion August 2006 Production
Capacity 2Mil/year
Construction Completion
Facility Products Capacity (000 ton)
BAF (Batch Annealing Furnace) CR 350
PGL (Pickling Galvanizing Line) PO/HGI 200/300
CCL (Color Coating Line) CC 100
CGL (Continuous Galvanizing Line) GI/GA 350
ltCVGL under Constructiongt
Progress()
0
100
Step 1
BAF
Commercial Production (June 28,2005 )
100
CGL
ltBAFgt
Step 2
CCL
PGL
Commercial Production (September 1st ,2005 )
ltCGLgt
90
PL/TCM (June, 2006)
Step 3
ltPGLgt
ltCCLgt
77
CVGL (August. 2006)
18
Major New Business
Global Networks
Beijing, China
Alabama, USA
Support BHMC DYK Operating Date Dec.
2003 Capacity 400,000 units/year 2005 Sales(P)
117,270 Thousand
Support HMMA Operating Date Aug. 2004 Capacity
300,000 units/year 2005 Sales(P) 69,369
Thousand
Zilina, Slovakia
Houston, USA
CRC Steel Pipe Distributing 100 owned by HYSCO
Support KIA Slovakia Capacity 300,000 units/year
Commercial Production
Permit Application
Construction
Pilot Production
05.Aug
06.Feb
06.Aug.
06.Nov.
19
Major New Business
Tailor Welded Blanking
Representative Models
TWB (Tailor Welded Blanking)
ltDoor Innergt
Blanking
Laser Welding
ltSide Innergt
20
Major New Business
Hydro Forming
Hydro Forming
Production Plan
Automobile
PRE-BENDING
PRE-FORMING

ltRear Axle Framegt
lt gt
Aluminium Trunk Lid for KIAs Opirus
ltChassis Framegt
ltExhaust Manifoldgt
ltProducinggt
Handle for Electronics Products
ltMicrowavegt
ltRefrigeratorgt
ltGrand Carnival Sub-Framegt
ltSucceeding model of Optima Sub-Framegt
21
4. Corporate Strategy

2006 Business Plan
2006 CAPEX
Plans to Grow Company
HYSCO Vision 2010
Shareholders
Share Utilization

22
Corporate Strategy
2006 Business Plan
Strategy
Cost Saving Dangjin Works renovation Improving sales capacity PCI stablization Strengthening human resource development and RD
Management Plan Management Plan
Sales - CRC - Steel Pipe Total CAPEX 2,962 KRW bn 2,304 KRW bn 658 KRW bn 179 KRW bn
Focusing on improving profitability
23
Corporate Strategy
2006 CAPEX
KRW bn 05 06 Change ()
Total 283.5 179.0 ?36.9

Dangjin Works 216.3 98.9
Overseas 14.0 10.4
PCI 12.1 4.4
New/Ordinary 41.1 65.3
(KRW bn)
24
Corporate Strategy
Plan to Grow Company
Fuel Cell
Future Growth Oriented Business
Pre-Sealed
Hydro Forming
High Profitability Business
New Business
Tailor Welded Blanking
Oil Gas Pipe
High Value Added Item Development
GA
25
Corporate Strategy
HYSCO VISION 2010
Automotive Steel Leader
World Automotive Steel Leader
Focusing on improving profitability
Cost Saving
Strengthening Human resource development andRD
PCI stablization
Dangjin Works renovation
Improving sales capacity
Domestic Automotive Steel Leader
26
Corporate Strategy
Shareholders
(1) Related Party in Detail (1) Related Party in Detail (1) Related Party in Detail
Hyundai Motor 20,954 26.1
KIA Motors 11,155 13.9
M.K.Chung 8,020 10.0
(000 shares) Oct. 04 05
Related Party (1) 48,269 -8,140 40,129 50.0
FDI (2) 17,720 -4,960 12,760 15.9
General Investors 14,211 13,100 27,311 34.1
Total 80,200 80,200 100.0
(2) Foreign Direct Investor (FDI) (2) Foreign Direct Investor (FDI) (2) Foreign Direct Investor (FDI)
JFE Steel 10,410 13.0
Sumitomo Corp. 802 1.0
Mitsui Co. 746 0.9
Marubeni-Itochu 802 1.0
(2)
(1)
General Investors 34.1
General Investors 17.7
ltOct. 04gt
lt05gt
27
Corporate Strategy
Share Utilization
FDI Sold 4,960 thousand shares to the market from
Nov. 2004 to Jun. 2005 KIA Motors Supported 8,140
thousand shares for the utilization at Aug. 2005
Average Daily Trade Volume(ADTV)
Up to Dec. 31, 2005
Dec. 2004 Mar. 2005 Sept. 2005 Dec. 2005
ADTV (Thousand Shares) 392 826 1,541 7,125
Average Share Price (KRW) 7,907 14,082 16,617 14,540
Market Cap.(KRW bn) 634 1,129 1,336 1,166
KIA 8,140,000
000 Shares
Marubeni 1,592,000Mitsui 115,960
JFE 1,200,000
Mitsui 629,040
Sumitomo 1,423,000
28
5. Appendix

Balance Sheet
Income Statement
Shareholders List

29
Appendix
Balance Sheet
30
Appendix
Balance Sheet
31
Appendix
Income Statement
32
Appendix
Cash Flow
01 02 03 04 05
Cash Flows from operating activities
Net income 16,185,568 67,041,010 53,797,787 83,697,366 59,609,205
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization 85,311,405 85,891,609 89,187,702 149,683,500 120,008,600
Accrual of severance benefits 6,269,761 7,089,828 6,317,554 9,686,011 5,220,653
Impairment loss on intangible assets - 5,290,787 - 11,656,112 2,301,056
Loss on disposal of property, plant and equipment 2,687,118 4,064,113 4,568,754 5,847,060 12,267,666
Loss on valuation of investments using the equity method, net (-)2,144,639 117,148 761,090 44,804 1,191,663
Loss(gain) on foreign currency translation, net 18,563,822 (-)21,724,822 2,071,061 (-)21,785,584 (-)4,023,774
Interest expense 5,832,570 5,510,773 6,452,388 3,488,536 1,263,099
Others 22,280,577 27,841,255 4,475,713 (-)1,690,844 (-)523,676
Changes in operating assets and liabilities
Decrease(increase) in trade accounts and notes receivable 10,483,902 (-)90,745,465 19,415,688 (-)29,269,527 (-)77,892,354
Decrease(increase) in other accounts and notes receivable - 1,123,146 (-)8,732,563 2,880,621 2,903,949
Increase in accrued income 364,434 (-)1,622,269 (-)244,080 (-)160,990 87,714
Decrease(increase)in prepaid expenses 2,557,442 1,713,425 (-)99,587 1,993,230 1,494,355
Decrease(increase) in inventories (-)5,924,715 (-)4,038,373 3,735,213 (-)110,503,198 (-)55,359643
Increase in trade accounts and notes payable (-)73,656,934 35,707,666 11,201,242 2,083,283 155,762,518
Increase in other accounts and notes payable - - - 24,212,641 14,735,680
Increase in accrued expenses (-)4,470,431 (-)1,532,133 5,872,845 1,858,971 135,647
Increase in income tax payable - 547,637 9,591,751 8,340,270 (-)12,660,386
33
Appendix
Cash Flow
01 02 03 04 05
Cash Flows from operating activities(continued)
Payment of severance benefits (-)4,383,579 (-)6,486,937 (-)5,257,992 (-)9,361,286 (-)3,274,867
Transfers to the National Pension Fund 569,462 344,071 228,433 341,109 134,287
Increase in retirement insurance deposits - - - (-)20,000,000 (-)657,799
Others 3,251,790 12,136,494 3,682,558 2,507,808 4,881,684
Net cash provided by operating activities 83,779,554 128,270,965 207,027,560 115,549,893 227,605,277
Cash flows from investing activities
Disposal of short-term financial instruments 3,264,947,831 3,932,923,846 5,405,320,810 4,400,947,386 8,100,000
Disposal of investment securities - 184,983 416,330 6,486,132 18,420
Proceeds from office lease deposits 252,777 954,977 545,032 1,065,085 1,592,642
Disposal of property, plant and equipment 3,202,253 3,301,302 1,037,044 1,676,167 7,793,074
Acquisition of short-term financial instruments (-)3,263,121,803 (-)3,901,194,441 (-)5,384,514,857 (-)4,383,549,623 -
Acquisition of available-for-sale securities - (-)2,117,802 (-)714,632 (-)13,187,968 (-)14,859,781
Acquisition of property, plant and equipment (-)56,909,262 (-)45,052,661 (-)44,165,959 (-)254,830,109 (-)304,442,775
Acquisition of intangible assets (-)23,692,808 (-)75,527,857 (-)1,540,893 (-)2,499,085 (-)8,945,749
Payment of office lease deposits (-)1,284,500 2,049,246 (-)904,622 (-)4,282,575 (-)3,018,484
Others 36,092,033 65,716,343 (-)12,173,953 6,009,561 2,465,246
Net cash used in investing activities (-)40,513,479 (-)18,762,064 (-)36,695,700 (-)242,165,029 (-)311,297,407
34
Appendix
Cash Flow
01 02 03 04 05
Cash flows from financing activities
Proceeds from short-term borrowings - - 3,804,002 865,671,517 858,767,304
Proceeds from long-term debt 45,000,000 - 5,000,000 120,000,000 -
Issuance of debentures 206,018,151 95,736,890 99,527,700 199,107,400 298,582,700
Repayment of short-term borrowings (-)8,661,430 (-)81,883,384 - (-)803,088,313 (-)897,317,197
Repayment of long-term debt (-)22,729,872 (-)24,844,220 - (-)26,231,707 (-)4,342,330
Repayment of current maturities of long-term debt (-)229,390,601 (-)84,842,831 (-)251,021,247 (-)219,200,849 (-)148,485,292
Proceeds from treasury stock - - - - - -
Acquisition of treasury stock (-)9,134,095 (-)20,214,902 (-)47,705,193 - -
Others (-)27,070,342 7,314,628 34,880,311 (-)16,039,850 (-)16,039,864
Net cash provided by financing activities (-)45,968,189 (-)108,733,819 (-)155,514,427 120,236,938 91,165,321
Net increase(decrease) in cash and cash equivalents (-)2,702,114 775,082 14,817,434 (-)6,378,938 7,473,191
Cash and cash equivalents
Beginning of the year 5,309,173 18,607,059 19,382,142 34,199,576 27,820,638
End of the year 2,607,059 19,382,142 34,199,576 27,820,638 35,293,829
35
Appendix
Shareholders List
Shares Shares 02 03 04 2005
Related Party Hyundai Motor 20,954,188 23.4 20,954,188 26.1 20,954,188 26.1 20,954,188 26.1
Related Party Kia Motors 19,294,680 21.6 19,294,680 24.1 19,294,680 24.1 11,154,680 13.9
Related Party INI Steel 6,786,345 7.6 5,286,345 6.6 - -
Related Party Hyundai Capital 4,060,000 4.5 - - - - - -
Related Party M.K.Chung 3,283,500 3.7 3,283,500 4.1 8,020,000 10.0 8,020,000 10.0
Related Party Sub-total 54,378,713 60.8 48,818,713 60.9 48,268,868 60.2 40,128,868 50.0
Foreign Investors Foreign Investors 18,464,873 20.6 17,719,873 22.1 15,667,833 19.5 12,759,873 15.9
( J F E ) ( J F E ) (11,610,000) (13.0) (11,610,000) (14.5) (11,610,000) (14.5) (10,410,000) (13.0)
(Sumitomo Corp.) (Sumitomo Corp.) (2,224,873) (2.5) (2,224,873) (2.8) (801,873) (1.0) (801,873) (1.0)
(Mitsui Co.) (Mitsui Co.) (2,236,000) (2.5) (1,491,000) (1.9) 861,960 (1.1) (746,000) (0.9)
(Marubeni Itochu) (Marubeni Itochu) (2,394,000) (2.7) (2,394,000) (3.0) (2,394,000) (3.0) (802,000) (1.0)
Treasury stocks in trust Treasury stocks in trust 5,251,270 5.9 - - - - - -
General Investors General Investors 11,350,804 12.7 13,661,414 17.0 16,263,299 20.3 27,311,259 34.1
Total Total 89,445,660 100.0 80,200,000 100.0 80,200,000 100.0 80,200,000 100.0
36
Thank you(www.hysco.com)