현대카드 Ir 자료 (2014 2 q) en

Hyundai Card Corporation

IR Presentation (1H 2014)

Hyundai Card Corporation

DisclaimerThese presentation materials have been prepared by Hyundai Card Corporation, Inc. (“HCC or the Company”), solely for the use at this presentation These presentation materials have been prepared by Hyundai Card Corporation, Inc. (“HCC or the Company”), solely for the use at this presentation and have not been independently verified. No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this presentation. Neither the Companies nor any of theirs affiliates, advisers or representatives accepts any responsibility whatsoever for any loss or damage arising from any information presented or contained in this presentation. The information presented or contained in this presentation is current as of the date hereof and is subject to change without notice and its accuracy is not guaranteed. Neither the Companies nor any of their affiliates, advisers or representatives make any undertaking to update any such information subsequent to the date hereof. This presentation should not be construed as legal, tax, investment or other advice.

Certain information and statements made in this presentation contain “forward-looking statements.” Such forward-looking statements can be identified by the use of forward-looking terminology such as “anticipate,”“believe,”“considering,”“depends,”“estimate,”“expect,”“intend,”“plan,”“planning,” “planned,” “project,” “trend,” and similar expressions. All forward-looking statements are the Companies’ current expectation of future events and are subject to a number of factors that could cause actual results to differ materially from those described in the forward-looking statements. Caution should be taken with respect to such statements and you should not place undue reliance on any such forward-looking statements.

Certain industry and market data in this presentation was obtained from various trade associations, and the Companies have not verified such data Certain industry and market data in this presentation was obtained from various trade associations, and the Companies have not verified such data with independent sources. Accordingly, the Companies make no representations as to the accuracy or completeness of that data, and such data involves risks and uncertainties and is subject to change based on various factors.

This presentation does not constitute an offer or invitation to purchase or subscribe for any shares or other securities of the Companies and neither any part of this presentation nor any information or statement contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Any decision to purchase shares in any offering of shares of the Companies should be made solely on the basis of the information contained in the offering document which may be published or distributed in due course in connection with any offering of shares of the Companies, if any.

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� Customer portfolio enhanced with

Simplified Product Structure

Chapter 2 OverviewChapter 2 OverviewChapter 2 OverviewChapter 2 Overview Chapter 2 AchievementsChapter 2 AchievementsChapter 2 AchievementsChapter 2 Achievements

Special Agenda Special Agenda Special Agenda Special Agenda –––– Chapter 2: Achievements after 1 yearChapter 2: Achievements after 1 yearChapter 2: Achievements after 1 yearChapter 2: Achievements after 1 year

� Customer portfolio enhanced with

actual users

� Higher efficiency in product service

expenses

Reasonable Compensation Scheme

• Focus more on core benefits

• Eliminate or reduce undifferentiated and immaterial benefits

• Premium vs. Point vs. Cash back

• 22 products → 7 products

� Acquisition of new customers with

higher spending

Differentiated Reward Level

• Higher accumulation rate for loyal customers(M card: over 1Mn KRW/month → x 1.5)

• No points if monthly spending under 0.5M KRW

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2012 2013 1H 13 1H 14 YoY

Op Revenues* 2,469 2,515 1,243 1,274 2.4%

Income Statement Income Statement Income Statement Income Statement (KRW Bn)

ProfitProfitProfitProfit

� Increase in operating revenues

- Installment sales volume normalized

Key HighlightsKey HighlightsKey HighlightsKey Highlights

Op Expenses * 2,232 2,295 1,131 1,095 -3.2%

Product/Service Expense

560 566 289 257 -11.4%

Operating Income

237 220 113 179 58.8%

Net Income 194 163 833 137 64.4%

ROAROAROAROA

- Interest income Increased from finance product

sales increase

� Decrease in operating expenses

- Decrease in product/service expenses

� Result of Chapter 2 linked to profit enhancement

2.6%2.0% 1.7%

2.8%

2011 2012 2013 1H14

� Enhance customer option for better compensation

� Optimize card sales channel portfolio

� Establish “farming” customer management framework

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Forecast and StrategyForecast and StrategyForecast and StrategyForecast and Strategy

* excl. FX effect

Asset PortfolioAsset PortfolioAsset PortfolioAsset Portfolio

Asset and Market ShareAsset and Market ShareAsset and Market ShareAsset and Market Share

Other 0.7% � Profitability/Stability balance with credit purchase

centered portfolio


Lump Sum 40.9%

Installment

21.4%

CA 8.6%

CL 28.4%

Market ShareMarket ShareMarket ShareMarket Share

• Total Receivables : 10.2 Tn

• Credit Purchase : 62.3%

� Increased proportion of finance to enhance

profitability

- Mainly increased with Card Loans, for lower risk

� Maintained 3rd in market share

15.5% 15.5%14.5% 14.4%

14.3% 14.5%13.8% 14.0%

2011 2012 2013 1H14

Total (Credit*+ Finance)Credit*

* retail spending onlySource: FISIS

� Qualitative growth by stronger customer

management based on Chapter 2

� Increase finance proportion within total risk

management limit

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Asset Quality and ReserveAsset Quality and ReserveAsset Quality and ReserveAsset Quality and Reserve

30+ Delinquency Ratio30+ Delinquency Ratio30+ Delinquency Ratio30+ Delinquency Ratio

0.6% 0.7% 0.8% 0.9% 0.9%� Delinquency under 1% maintained

- Slight increase with increase of finance


2011 2012 2013 1Q14 2Q14

product volume vs. 2013

� Increased total reserve

- FSS Coverage about 142%

Reserve Reserve Reserve Reserve (KRW Bn)

2011 2012 2013 1H14

Total Reserve* 378 544 594 605

FSS Coverage** 199.1% 157.1% 144.0% 141.6% � Maintain stability/profitability balance with total

risk management

� Maintain conservative reserve policy

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* Reserve under IFRS + supplemental reserve** Total Reserve / FSS Requirement

Capital Structure Capital Structure Capital Structure Capital Structure

5.4x 5.1x 5.0x 4.9x

� Increased capital from retained earning

- Leverage decreased despite the asset increase

Key HighlightsKey HighlightsKey HighlightsKey HighlightsLeverage Leverage Leverage Leverage (KRW Bn)

Total Asset / Total Equity*

5.4x 5.1x 5.0x 4.9x

2011 2012 2013 1H14

Capital Adequacy RatioCapital Adequacy RatioCapital Adequacy RatioCapital Adequacy Ratio

- FSS regulation enforced since 2012: under 6X

* Since 2013, previous quarter’s equity have been used for calculation.** Separated Financial Statement

19.6% 18.7% 19.4% 20.1%

2011 2012 2013 2014

� Manage leverage within FSS regulation

� Dividend in compliance with regulation

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* FSS guideline: 7%** Separated Financial Statement

Funding Portfolio by ProductFunding Portfolio by ProductFunding Portfolio by ProductFunding Portfolio by Product

FundingFundingFundingFunding

� Strategic Funding based on the market

conditionLoan 2.7%


- Bond proportion increased to leverage spread

tightening

� Diversification in currency

- Overseas ABS 290 USD MnBond

86.8%

CP 0.5% ABS 10.0%

• Total Balance: 7.6 Tn

• % Long Term : 72.4% � Product mix guidelines : ABS < 20%, CP < 10%

� % of Long-term debt guideline > 60%

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Liquidity PositionLiquidity PositionLiquidity PositionLiquidity Position

79.0% 65.5%87.5% 83.1%

Liquidity Profile Liquidity Profile Liquidity Profile Liquidity Profile (KRW Bn)

� Reinforced liquidity guideline under new Stress

Test model

Key HighlightsKey HighlightsKey HighlightsKey HighlightsCredit LineCash Short-term debt Coverage Ratio*

743 690 780 1,008

841 824 866 720

1,584 1,514 1,646 1,728

2011 2012 2013 1H14

Debt Maturity Debt Maturity Debt Maturity Debt Maturity (KRW Bn)

� More cash for stronger liquidity position

(replacing Credit Line)

� Early warning detection by monitoring daily

market indicators

� ALM based Funding: Only 28% of total debt

maturing within 1 year* Short-term debt Coverage Ratio

= (Cash + Unused credit line)/ short-term debt under 1 yr.

980 1,100 903

1,883 1,428 1,251

13.0%13.0%13.0%13.0% 14.6%14.6%14.6%14.6%12.0%12.0%12.0%12.0%

25.0%25.0%25.0%25.0%18.9%18.9%18.9%18.9% 16.6%16.6%16.6%16.6%

2H14 1H15 2H15 2016 2017 2018~

� Debt maturity > Asset maturity : Maintain ALM

over 100%

� Maintain Short-term debt Coverage over 60%

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[Appendix] Fact Sheet [Appendix] Fact Sheet [Appendix] Fact Sheet [Appendix] Fact Sheet ---- HCCHCCHCCHCC

(KRW Bn, %) 2008 2009 2010 2011 2012 2013 1H13 1H14

MarketShare

Retail Credit 13.8% 15.7% 15.7% 15.5% 15.5% 14.5% 14.9 14.4

Retail Credit + Finance 11.2% 13.1% 14.1% 14.3% 14.5% 13.9% 14.1 14.0

Asset Portfolio

Total 5,616 7,136 9,186 9,563 9,898 9,947 9,306 10,670

Lump Sum + Installment 72.9% 74.3% 65.7% 68.1% 66.7% 64.3% 64.1% 62.3%Asset Portfolio

Lump Sum + Installment 72.9% 74.3% 65.7% 68.1% 66.7% 64.3% 64.1% 62.3%

Finance 27.1% 25.7% 34.3% 31.7% 32.9% 35.1% 35.9% 37.0%

Other 0.0% 0.0% 0.1% 0.2% 0.4% 0.6% 0.5% 0.7%

Asset Quality

Below Precautionary 0.7% 0.4% 0.5% 0.7% 3.5% 4.5% 3.8% 4.2%

NPL 0.1% 0.1% 0.1% 0.1% 0.2% 0.4% 0.2% 0.4%

30+ delinquency 0.7% 0.3% 0.4% 0.6% 0.7% 0.8% 0.8% 0.9%

FSS Coverage 143.3% 123.9% 127.7% 199.1% 157.1% 144.0% 155.2% 141.6%

Profit Operating Income 258 286 379 324 237 220 113 179

Capital AdequacyCapital Adequacy Ratio 23.6% 22.5% 18.7% 19.6% 18.7% 19.4% 20.7% 20.1%

Asset Leverage 4.6X 4.9X 6.0X 5.4X 5.1X 4.9X 4.7X 4.9X

Funding Portfolio

Total 3,980 5,165 7,197 7,068 7,073 7,243 6,586 7,545

Bond /Loan 67.6% 74.8% 83.6% 86.7% 82.4% 89.7% 83.0% 86.8%

CP 14.1% 11.0% 9.1% 6.9% 4.9% - - 0.5%

ABS 18.3% 14.1% 7.2% 6.3% 12.7% 10.3% 13.6% 10.0%

Short-term Coverage 32.7% 18.6% 36.7% 79.0% 65.5% 87.5% 67.7% 83.2%

ALM

ALM Ratio 90.2% 120.9% 132.5% 149.0% 133.4% 158.7% 133.8% 151.3%

Asset maturity (Y) 1.50 1.43 1.38 1.39 1.37 1.34 1.39 1.38

Debt maturity (Y) 1.35 1.73 1.83 2.07 1.82 2.12 1.86 2.0910

ContactsContactsContactsContacts

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IR Homepage : http://ir.hyundaicard.com

IR email address : [email protected]

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현대카드 Ir 자료 (2014 2 q) en