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Annual Report
2003
HEAD OFFICE & FACTORY
HYUNDAI ELEVATOR CO., LTD. San 136-1, Ami- ri, Bubal-eup, Ichon-shi, Kyonggi-do 467-734, Korea
Tel : 82-31-644-5160 Fax: 82-2-745-4227
Homesite : http://www.hyundaielevator.co.kr
E-mail : e-biz@hyundaielevator.co.kr
SEOUL OFFICE(INT’L SALES DIV.)
1-83 Dongsoong-dong, Jongro-ku, Seoul 110-510, Korea
Tel: 82-2-3670-0659 Fax : 82-2-3672-8763~4
ßè HYUNDAI ELEVATOR INTERNATIONAL SALES & SERVICE NETWORK
U.S.A. PAKISTAN ITALY
Hyundai Elevator Co., Ltd. Islamabad Industrial & Trading Corp. Paravia Elevators Service Srl
L.A Office 304 Amber Estate Shahra-e-faisal, Karachi - 75350, Pakistan Via San Leonardo 120
879W. 190th St. Suite 580 Gardena, CA 90248 U.S.A. Tel: 92-21-452-3237~8 Fax: 92-21-454-7405 84131 Salerno, Italy
Tel: 1-310-538-4770 Fax: 1-310-538-4745 Tel: 39-08-933-2594 Fax: 39-08-933-4031
EGYPT
JAPAN International Eng. & Trade CHINA
Hyundai Elevator Co., Ltd. 10 El Hakam St., Helmeyt Ei Zayton Cairo, Egypt ¶UChina Operation Head Office
11F, Yamato Life Bldg. 1-1-7, Uchisaiwai-cho, Tel: 20-2-241-8542 Fax: 20-2-249-2672 Hyundai Elevator Co., Ltd.
Chiyoda-ku, Tokyo, 100-0011, Japan
U.A.E. 27F, Jinxuan Bldg., No.238 Nandan RD.(East),
Tel: 81-3-3519-6125 Fax: 81-3-3519-6126
Arabian Elevators & Engineering Co.,Ltd. Shanghai, China, 200030
PHILIPPINES P.O.Box : 26031, Sharjah, U.A.E. Tel: 86-21-6427-9755/6616 Fax: 86-21-6427-4428
Hyco Industrial Sales Corp. Tel: 971-6-561-4533 Fax: 971-6-561-5532 ¶UBeijing Office
#81 Kapiligan St., Cor. Bayani, Dona lmelda, Quezon City, Philippines Hyundai Elevator Co., Ltd.
Tel: 63-2-716-0905 Fax: 63-2-714-8896 KUWAIT Beijing Office
Deal General Trading & Contracting Co. Golden Land Bldg. Rm506 32 Liang Ma Bridge Road,
INDONESIA P. O. Box 27956 Safat, 13140 Kuwait
PT. Superhelindo Jaya Beijing, China
Tel: 965-245-7925 Fax: 965-242-3510 Tel: 86-10-6464-3483/3485 Fax: 86-10-6464-3394
JL. K. H. Moch. Mansyur No. 19B Jembatan Lima,
Jakarta 10140, Indonesia JORDAN ¶R
Shenyang Hyundai Elevator Co., Ltd.
Tel: 62-21-631-8444 Fax: 62-21-632-6288 Bseiso Engineering Materials Corp. No. 43 Shenda Road, Yuhong District,
P. O. Box 830681 Shenyang, China, 110 141
THAILAND Amman 11183, Jordan
Loxley Public Co., Ltd. Tel: 86-24-2530-0108 Fax: 86-24-2583-2321
Tel: 962-656-99012 Fax: 962-656-99014
102 Na Ranong Rd, Klongtoey, Bangkok 10110, Thailand ¶R
Shanghai Hyundai Elevator Manufacturing Co., Ltd.
Tel: 66-2-348-8000 Fax: 66-2-240-3127~8 IRAN
Mehfakhr ¶U
Head Office(Factory)
BANGLADESH Flat No. 84 8th Flr. Xiao Zheng Town, Qingpu County, Shanghai, China
Regional Traders Ltd. No. 23 Corner of 13th St. Tel: 86-21-5981-1878/3294/3295/1573 Fax: 86-21-5981-1563
Karim chamber(3rd Floor) 99, Asadabadi Ave. Tehran Iran ¶UShanghai Office
Motijheel Commercial Area Dhaka-1000, Bangladesh Tel: 98-21-872-6082 Fax: 98-21-855-3741 27F, Jinxuan Bldg., No.238 Nandan Rd(East),
Tel: 880-2-956-3122 Fax: 880-2-956-7377 Shanghai, China, 200030
SPAIN Tel: 86-21-6438-9755/6616 Fax: 86-21-6427-4428
INDIA Inelsa
Kinetic Escalator & Elevator Ltd. C/Dr. Horno Alcorta No 9
D1 Block, Plot No.18/1, Chinchwad, Pune 411 019, India Cp 50004. Zaragoza. Spain
Tel: 91-20-2747-0566 Fax: 91-20-2747-0568 Tel: 34-976-30-2525 Fax: 34-976-30-2526
HYUNDAI ANNUAL REPORT
2003
Financial Highlights
Total Sales In Billions of won Operating Income In Billions of won
358 43.8
40.4
311
27.1
275
’01 ’02 ’03 ’01 ’02 ’03
Elegant Design & Advanced Technology
2003 2002
Thousand of Thousand of
The Hyundai Elevator Company was established in 1984. U.S. Dollars U.S. Dollars
Korean Won Korean Won
However, its short history must not be taken lightly. Today, Hyundai
Elevator provides a full line of moving systems meticulous in detail, Sales £ 358,168,257 £⁄300,552,368 £ 311,415,432 £⁄ 259,426,385
bringing together some of the most adva n ced te c h n o logy and
progressive designs in the industry. Operating Income 43,835,313 36,783,849 40,422,351 33,674,068
By working in close cooperation with international partners and Net Income 28,346,514 23,786,618 ¡ 35,882,030 ¡ 29,891,727
developing in-house technology, Hyundai Elevator has become a major
Total Assets 409,357,074 343,506,817 267,627,587 222,948,673
supplier of elegant passenger elevators and escalators in Korea as well
as in Southeast Asia, the U.S.A., Japan and Europe.
Stockholders’ Equity 282,054,625 236,682,576 117,547,614 97,923,704
In order to meet the rise in demand, the production capacity has been
increased to handle 7,000 elevators and 1,000 escalators per annum.
Other major products include machine-room-less elevators, marine Earnings Per Share 42 35 ¡ 54 ¡ 45
Dividend Per Share
elevators, and a variety of multi-level parking and material handling
1) Principal Shareholders : £ 250
systems. 2) Minorities : £ 1,500
Hyundai Elevator continues its every effort to develop the most Note : Amounts in Korean won have been translated into U.S. dollars, solely for the reader’s convenience. The exchange rates
advanced and comprehensive moving systems in the world. used for conversion were £ 1,1917 and £ 1,2004 per U.S. dollar in 2003 and 2002 respectively, which were the average
exchange rates of the Bank of Korea on those years.
2 HYUNDAI ANNUAL REPORT 2003 HYUNDAI ANNUAL REPORT 2003 3
Message from the President
Dear Shareholders:
We appreciate your sincere interest in our Company and we are very
We will put great emphasis on developing corporate strength to proactively cope with any changes
glad to explain our last year's performance and the operational plan for
in external environment. We will build strong marketing network and renovate service system. We
this year.
are confident that the company will be reborn as one of leading players in the elevator industry.
As you may well be aware of it, last year we witnessed lots of domestic
Though the prospect of economic situation does not seem very good, with the effort I mentioned
and international events which had adverse impacts on the operation of
above, we will set the targeted revenue for 2004 at £ 400,000,000,000, a 12% increase from that of
our Company. Iraqi War, galloping oil prices, SARS, North Korean nuclear standoff and the stagnant
last year. We will put our priority on healthy and sound operation of the Company. We will do our
domestic demand caused by alarming increase of overdue loans which created instability in the
best to maximize the corporate value through enhanced corporate transparency, investment from
financial market. All these events made economic situation so difficult that someone even said the
foreign capitals, increased R & D activities, renovation in corporate ownership and diversification to
situation was worse than that of financial crisis of 1997.
profitable businesses.
But the directors and staffs of the Company stood strong and accomplished the best performance in
This year is the 20th year since the Company was incorporated. So it is a crucial period as the
the Company's history through increased productivity, cost reduction from continuous
Company has to take its full responsibility as a mature and independent identity. Company staff will
improvement, and increased R & D activities. Annual revenue amounted to £ 358,200,000,000 and
do their best to make this year an important threshold for our Company to enter into a new era. We
net income recorded £ 23,800,000,000. Company's financial status has become far healthier as its
hope this year would be a significant one during which the Company would grow to one of the most
liability ratio remained as low as 45% while stockholder's equity ratio was no less than 69%. In
admired companies which enjoy the confidence from shareholders and people alike.
addition to the 28% capital stock increase without consideration made as of end of last year,
considerable cash dividends (dividend ratio: principal shareholders: 5%, minorities: 30%) were
Thank you.
distributed upon approval from general meeting of shareholders.
We are facing prolonged slump in construction industry as the result of various new regulations on
real estate created by the government at the end of last year. The events of the unprecedented
presidential impeachment will also affect the turnaround of the construction business. Besides, the
competition is becoming intense as big players such Otis, Schindler, Mitsubishi and Thyssen have
entered the Korean market.
But we are regarding this as more of an opportunity. We will meet the challenge proactively through
cost saving and increased profitability from continuous improvement based on stable labor relation, Y. M. Choi
which has not witnessed any major labor disputes during the last 15 years. President & Representative Director
4 HYUNDAI ANNUAL REPORT 2003 HYUNDAI ANNUAL REPORT 2003 5
Independent Auditor’s Report Statements of Income
(Years ended December 31, 2003 and 2002)
To the Stockholders and Board of Directors of Description 2003 2002
Hyundai Elevator Co., Ltd. Thousand of
U.S. Dollars
Thousand of
U.S. Dollars
Korean Won Korean Won
We have audited the accompanying balance sheet of Hyundai Elevator Co., Ltd. (“the Company”) as of
December 31, 2003 and December 31, 2002 and the related statements of income, statements of 1. Sales £ 358,168,257 £⁄300,552,368 £ 311,415,432 £⁄259,426,385
appropriations of retained earnings, and cash flows for the year then ended, all expressed in Korean
2. Cost of sales 287,668,491 241,393,381 246,184,675 205,085,534
won. These financial statements are the responsibility of the Company’s management. Our
responsibility is to express an opinion on these financial statements based on our audit.
3. Gross profit 70,499,766 59,158,987 65,230,757 54,340,851
We conducted our audit in accordance with auditing standards generally accepted in the Republic of 4. Selling and general 26,664,453 22,375,138 24,808,406 20,666,783
Korea. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatements. An audit includes administrative expenses
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates 5. Operating income 43,835,313 36,783,849 40,422,351 33,674,068
made by management, as well as evaluating the overall financial statements presentation. We believe
that our audit provides a reasonable basis for our opinion. 6. Non-operating income 3,970,829 3,332,071 4,118,179 3,430,672
In our opinion, the financial statements referred to above present fairly, in all material respects, the 7. Non-operating losses 8,332,862 6,992,417 95,078,686 79,205,836
financial positions of Hyundai Elevator Co., Ltd. as of December 31, 2003 and December 31, 2002 and the
8. Ordinary income 39,473,280 33,123,503 ¡ 50,538,156 ¡ 42,101,096
results of its operations, statements of appropriations of retained earnings and cash flows for the year
then ended in conformity with accounting principles generally accepted in the Republic of Korea.
9. Extraordinary income - - - -
10. Extraordinary losses - - - -
11. Income before income taxes 39,473,280 33,123,503 ¡ 50,538,156 ¡ 42,101,096
Anjin Deloitte LLC
A Member Firm of Anderson Worldwide SC 12. Income tax expenses 11,126,766 9,336,885 ¡ 14,656,126 ¡ 12,209,369
#23-5, Yoido-dong, Youngdeungpo-ku,
Seoul 150-717, Korea
13. Net income £ 28,346,514 £⁄23,786,618 £ ¡ 35,882,030 £⁄¡ 29,891,727
Seung-woo, Yang Note : Amounts in Korean won have been translated into U.S. dollars, solely for the reader’s convenience. The exchange
Country Managing Partner & Certified Public Accountant rates used for conversion were £ 1,1917 and £ 1,2004 per U.S. dollar in 2003 and 2002 respectively, which were the
average exchange rates of the Bank of Korea on those years.
Feb. 6, 2004
6 HYUNDAI ANNUAL REPORT 2003 HYUNDAI ANNUAL REPORT 2003 7
Statements of Appropriations of
Balance Sheets Retained Earnings
(December 31, 2003 and 2002) (Years ended December 31, 2003 and 2002)
Description 2003 2002 Description 2003 2002
Thousand of Thousand of Thousand of Thousand of
U.S. Dollars U.S. Dollars U.S. Dollars U.S. Dollars
Korean Won Korean Won Korean Won Korean Won
Assets ¥ . Retained earnings
before appropriations
¥ . Current assets 1. Unappropriated retained earnings £ 702,790 £⁄589,737 £ 843,169 £⁄02,407
7
1. Quick assets £ 148,007,162 £⁄124,198,340 £ 122,610,163 £⁄02,141,089
1 carried over from prior years
10,344,568 8,680,512 8,318,896 6,930,103 2. Net income 28,346,514 23,786,619 ¡ 35,882,030 ¡ 29,891,727
2. Inventories
(Sub total) 29,049,304 24,376,356 ¡ 35,038,861 ¡ 29,189,320
(Total current assets) 158,351,730 132,878,852 130,929,059 109,071,192
¥–. Non-current assets ¥– . Transfers from voluntary
1. Investments 200,031,822 167,854,177 85,022,766 70,828,695 reserves
2. Tangible assets 50,940,084 42,745,729 51,632,471 43,012,722 1. Other statutory reserves - - 4,264,430 3,552,508
3. Intangible assets 33,438 28,059 43,291 36,064 2. Reserve for technical development 2,638,988 2,214,474 4,033,888 3,360,454
(Total non-current assets) 251,005,344 210,627,965 136,698,528 113,877,481 3. Reserve for loss from export 23,333 19,580 186,667 155,504
4. Reserve for loss from overseas - - 256,666 213,817
409,357,074 343,506,817 267,627,587 222,948,673 investments
Total Assets -
5. Reserve for business expansion - 27,000,000 22,492,502
(Sub total) 2,662,321 2,234,054 35,741,651 29,774,785
Liabilities
Total 31,711,625 26,610,410 702,790 585,463
¥ . Current liabilities 108,963,991 91,435,756 107,493,845 89,548,355
.
¥†Appropriations of retained
¥–. Long-term liabilities 18,338,458 15,388,485 42,586,128 35,476,614 earnings
(Total liabilities) 127,302,449 106,824,241 150,079,973 125,024,969 260,133
1. Legal reserve 310,000 - -
2. Dividends 3,089,828 2,592,790 - -
Stockholders’ equity Cash dividend -
Dividend ratio(2003)5% - Principal
¥ . Capital stock 35,662,565 29,925,791 28,056,355 23,372,505 shareholders
70,006,057 58,744,699 75,459,817 62,862,227 Dividend ratio(2003)30% - minorities
¥–. Capital surplus
3. Reserve for technical development 5,000,000 4,195,687 - -
.
¥†Retained earnings 68,239,304 57,262,151 39,892,790 33,232,914
4. Reserve for business expansion 22,500,000 18,880,591 - -
.
¥‡Capital adjustment 108,146,699 90,749,935 ¡ 25,861,348 ¡ 21,543,942
(Total stockholders’ equity) 282,054,625 236,682,576 117,547,614 97,923,704 Total 30,899,828 25,929,201
Total liabilities & £ 409,357,074 £⁄343,506,817 £ 267,627,587 £⁄222,948,673 ¥‡Unappropriated retained earnings
. £ 811,797 £⁄681,209 £ 702,790 £⁄585,463
stockholders’ equity to be carried over forward
to subsequent year
8 HYUNDAI ANNUAL REPORT 2003 HYUNDAI ANNUAL REPORT 2003 9
Organization Company Profile
General Meeting of Shareholders
A. Main Products
Board of Directors Elevators
Escalators
Moving Walks
Chairman ¡ Material Handling Systems
Auto Parking Systems
C.E.O. ¡ Platform Screen Doors
Domestic Sales Dept. ¥ B. Capital Structure
Domestic Sales Dept. ¥– Hyundai Elevator Ichon Factory
Pusan Office Authorized Capital : Won 100,000,000,000
Taegu Office
Paid-in Capital : Won 35,662,565,000
Kwangju Office
Executive
Taejun Office
Vice President
Junju Office C. Brief Company History
Ulsan Office
Kangwon Office May 1984 Hyundai Elevator Co., Ltd. established. Technical License Agreement signed by Hyundai and Westinghouse to manufacture
Inchon Office
various kinds of elevators and escalators.
Cheju Office
Machang Office Sep 1989 Termination of joint venture with Westinghouse
Dec 1991 Certificated ISO 9001 certification from DNV
Installation Dept. Aug 1993 Established joint venture in Shanghai, China
Customer Service Dept. Nov 1995 Established joint venture in Shenyang, China
Financial Dept. Jul 1996 Listed on the Korea Stock Exchange
Executive Accounting Dept. Dec 1996 Certificated After Service Certification from the Ministry of Trade and Commerce
Vice President ¡ Purchasing Dept.
Apr 1997 Certificated ISO 14001 environmental certification from DNV
(C.F.O) Management Coordination Dept.
Internal Auditing Team Mar 1998 Certificated ISO 9001 and ISO 14001 certification from DNV for the Auto Parking Systems and Material Handling Systems.
Public Relations Team Aug 1999 Certificated CE Mark from DNV
Oct 1999 Signed a contract for a technology alliance with Japan’s Nabco for PSD(Platform Screen Doors)
Executive R & D Center May 2001 Signed a contract for installation and maintenance alliance in Japan with Nihon Shokouki Co.,Ltd. for marine elevators.
Vice President Design Engineering Dept. Jul 2001 Certificated CE mark for elevators from DNV
Shanghai
Sep 2003 Certificated Korea Productivity Award from Korea Productivity Center
Shenyang
Philippines
Managing Director Overseas Sales Dept. D. Corporate Information
Material Handling System Dept. China (Beijing,Shenzhen)
U.S.A. 1. Date of Establishment : May 23, 1984
Japan 2. Head Office : San 136-1, Ami-ri, Bubal-eup, lchon-shi, Kyunggi-do 467-734, Korea
U.A.E. 3. TEL : 82-2-3670-0660
Quality & Environment Dept. 4. Fiscal Year End : December 31st.
Director Production Dept. 5. Number of Employees : 1,144
Production Management Dept. 6. The Total Number of Outstanding Capital Stocks
Par value : £ 5,000
Authorized Number of Shares : 7,132,513 shares
Notes 1. C.E.O. (Chief Executive Officer) 7. Total Assets ; £ 409,357,074 (In thousands) , U.S. £⁄341,757,450
2. C.F.O. (Chief Finance Officer)
3. ¡ means Member of the Board
Auditor’s committee
10 HYUNDAI ANNUAL REPORT 2003 HYUNDAI ANNUAL REPORT 2003 11
