2. 1
Disclaimer
These presentation materials have been prepared by Hyundai Card Corporation., Ltd. (“HCC or the Company”), solely for the use at this
presentation. This presentation material may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or
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The Company has not taken measures to independently verify data contained in this material. 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. This presentation should not be construed as legal, tax, investment or other advice.
Financial statements in this document have been prepared in accordance with K-IFRS. Other additional market information has been sourced
from the Company or from other external institutions. 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.
Certain information and statements made in this presentation contain “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.
3. 2
Major issues
Stagnant profitability due to lowered product price despite slight increase in sales volume
Focus on Member acquisition and management to prepare for enhanced profitability
going-forward
Launch Digital Hyundai Card to provide optimize mobile service (‘15.10)
4. 3
Business Environment
Domestic Economy Credit Payment Market
Slow growth of card industry
• Card usage closely linked to private consumption, as a
major means of payment
(Unit: KRW tn)
2.3%
2.9%
3.3%
2.6%
2.75% 2.50%
2.00%
1.50%
2012 2013 2014 3Q15
GDP growth rate Key rate
Source: Bank of Korea, Credit Finance Association of Korea
679 708 728 749
443 478 490 501
65% 68% 67% 67%
2011 2012 2013 2014
Private consumption Credit card usage
% of credit card usage
Macroeconomic uncertainty remains
• Domestic consumption recovering, but economic growth
still uncertain
Low interest continued
• Profitability of finance companies restricted
5. 4
Asset
Asset Portfolio Business Strategies 2015
(Unit: KRW bn)
2012 2013 2014 3Q15 YTD
Lump sum 4,397 4,263 4,447 4,407 -0.9%
Installment 2,208 2,133 2,470 2,534 2.6%
Cash advance 940 849 838 792 -5.4%
Card loan 2,352 2,702 3,048 3,149 3.3%
Strengthened new member acquisition
• Diversify acquisition channel and focus on prime customer
• Focus on customers’ early engagement through customize program
Prime-focused sales growth
• Offer customize benefits to increase credit purchase usage
• Reinforce finance service marketing to prime members
Enhanced mobile services
• Launched integrated mobile app offering one-stop service with
payment solution
• Launched “Digital Hyundai card” for easy and safe use of credit card
(Unit: KRW bn)
6,605 6,396 6,915 6,941
3,292 3,552
3,885 3,941
9,898 9,947
10,800 10,882
66.7% 64.3% 64.0% 63.8%
2012 2013 2014 3Q15
Credit purchase Finance % of credit purchase
Reference: Membership
6,818
6,611 6,580 6,617 6,643
2013 2014 1Q15 2Q15 3Q15
Source: company
(Unit: ‘000)
6. 5
Profitability
(Unit: KRW bn)
① Excluding FX effects
Summary of Income Statement
2013 2014 9M14 9M15 YoY
Operating revenue①
2,515.0 2,583.7 1,905.9 1,915.7 0.5%
Card revenue 2,453.3 2,515.8 1,864.4 1,879.0 0.8%
Operating expenses①
2,295.0 2,283.9 1,644.0 1,712.6 4.2%
Card expenses 1,028.2 1,041.3 749.6 817.6 9.1%
SG&A 636.5 647.0 456.5 492.6 7.9%
Interest expenses 312.9 305.9 230.3 208.0 -9.7%
Bad debt expenses 247.7 265.9 187.9 167.3 -11.0%
Operating income 219.9 300.0 268.8 210.2 -21.8%
Net income 163.2 223.5 205.1 163.2 -20.5%
ROA 1.8% 2.2% 2.8% 1.9% -0.9%p
Analysis on Income Statement
Operating revenue
• Slight increase in sales volume due to recovered consumer
sentiment
• Stagnant revenue due to lowered product interest rate
Operating expenses
• Card expenses increased as acquisition and marketing
were strengthen for long-term profitability
• Interest and bad debt expense reduction to sustain
profitability
38.8 40.1
9M14 9M15
sales volume of credit purchase
(Unit: KRW tn)
7. 6
Asset Quality
Delinquency Reserve
0.5%
0.6% 0.6%
0.7%
0.7%
0.8%
0.9% 0.9%
2012 2013 2014 3Q15
30+ days delinquency ratio
30+ days delinquency ratio including re-aged loan
① (Allowance + Reserve)/FSS requirement
181 205 236 238
363 389 413 399
544 594
649 637
157%
144%
132% 132%
2012 2013 2014 3Q15
Allowance Reserve FSS requirement coverage
(Unit: KRW bn)
①
Risk management strategies
• Card loan focused sales rather than cash advance
• Limited sales of finance product for sub-prime
Reserve policy
• Max of expected loss, incurred loss or FSS requirement
8. Major issue
• Interim dividend in September 2015
: Total amount KRW 249.8bn (KRW 1,557 per share)
7
Capital Structure
Leverage
Source: Separate financial statement
① Based on previous quarter’s total capital since 2013
2012 2013 2014 3Q15 YTD
Total asset 11,252 11,521 12,397 13,170 6.23%
Total Capital① 2,192 2,325 2,549 2,667 4.6%
(Unit: KRW bn)
Capital Adequacy Ratio
5.1X 5.0X 4.9X 4.9X
2012 2013 2014 3Q15
18.7% 19.4%
18.2%
16.8%
2012 2013 2014 3Q15
9. 8
Funding
Funding Position Maturity
2014 9M15
Total Funding 3,584 2,271
Bond 1,820 1,080
ABS 604 461
CP/Bank loan 1,160 730
(Unit: KRW bn) Funding portfolio guidelines
• Long-term debt : 60% or more
• By Product: ABS <20%, CP <10%
• ALM ratio : 100% or more
Domestic
bond
81.1%
Domestic
ABS
3.6%
Overseas
ABS
9.1%
Bank loan
2.4%
CP
3.8%
2014 3Q15
1.8yr
2.1yr 2.1yr
1.8yr
133.4%
158.7%
137.9% 135.2%
2012 2013 2014 3Q15
Debt maturity ALM ratio
Domestic
bond
84.2%
Domestic
ABS
3.8%
Overseas
ABS
9.5%
Bank loan
2.5%
KRW 7.9tn KRW 8.4tn
Portfolio by product
New funding
Source: company
10. 9
Liquidity
Liquidity Position Short-term debt Coverage
Contingency framework
• Early warning and response system in place
• Daily monitoring of key market indicators
(Unit: KRW bn) (Unit: KRW bn)
Liquidity management
• Satisfies Basel III Liquidity coverage ratio
• Diversified credit lines by lender and tenor
Cash increase in 3Q15
• Preemptive preparation in liquidity demand for 4Q15
690 780 810
1,663
824
866
490
490
1,514
1,646
1,300
2,153
2012 2013 2014 3Q15
Cash Credit line
2,311
1,881 2,083
2,420
65.5%
87.5%
62.4%
89.0%
2012 2013 2014 3Q15
Short-term debt Short-term debt coverage
Source: Company
11. 10
Digital Hyundai Card
Purpose Lock & Limit
Customers “Lock & Limit” at their conveniences
• Control payment and usage ceiling through mobile app
• Prevent illegal use of credit card
Offer concrete and practical conveniences
• Help easy and safe use of credit card through digital services
• Allow individuals to optimize digital usage environment
