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 published, in whole or in part, for any purpose.
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
2015 Review
Improve member portfolio through acquisition channel expansion and member management
system upgrade
Profitability drop due to increase in new member acquisition cost despite decrease in
interest and bad debt expense
Enhance Brand Identity with space marketing and digital services
4. 3
Asset
Asset Portfolio Business Strategies 2015
(unit: KRW bn)
2012 2013 2014 2015 YoY
Lump sum 4,397 4,263 4,447 4,806 8.1%
Installment 2,208 2,133 2,470 2,807 13.6%
Cash advance 940 849 838 827 -1.3%
Card loan 2,352 2,702 3,048 3,240 6.3%
Members’ acquisition process renewal & channel expansion
• New compensation scheme for card planner which aligns with
new members’ spending
• Establish specialized private label credit card (E-mart E card)
CLM system upgrade
• Care marketing program based on members’ value
(unit: KRW bn)
6,605 6,396 6,915 7,613
3,292 3,552
3,885
4,067
9,898 9,947
10,800
11,680
66.7% 64.3% 64.0% 65.2%
2012 2013 2014 2015
Credit purchase Finance % of credit purchase
Reference
6,818 6,611 6,684
2013 2014 2015
Source: company
k
% of new members
with spending >
500k
Membership
(excluding
corporate member)
35.2% 34.2%
43.2%
kk
Source: managed asset
5. 4
Profitability
Summary of Income Statement
2013 2014 2015 YoY
Operating revenue 2,503.0 2,569.5 2,602.4 1.3% • Increase in financial receivables (’14 KRW 10.8tn → ’15 KRW 11.7tn)
Operating expenses 2,292.5 2,279.0 2,370.8 4.0%
Card expenses 1,028.2 1,041.3 1,144.4 9.9%
• Increase in acquisition and promotion expenses to secure prime
members
Interest expenses 312.9 305.9 277.6 -9.2% • Lower interest expenses on new funding proceeds
Bad debt expenses 247.7 265.9 237.7 -10.6% • Maintain sound asset quality
SG&A 636.5 647.0 674.4 4.2% • Labor costs increase (dispatched labor transferred to direct contract labor)
Operating income 219.9 300.0 241.5 -19.5%
Net income 163.2 223.5 186.8 -16.4%
ROA 1.7% 2.2% 1.7% -0.5%p • Profit decrease despite average financial receivables increase
①
①
(unit: KRW bn)
① Excluding FX effects
6. 181 205 236 255
363 389 413 367
544 594
649 622
157%
144%
132% 133%
2012 2013 2014 2015
Allowance Reserve FSS requirement coverage
5
Asset Quality
Delinquency Reserve
0.5%
0.6% 0.6% 0.6%
0.7%
0.8%
0.9%
0.8%
2012 2013 2014 2015
30+ days delinquency ratio
30+ days delinquency ratio including re-aged loan
①
(unit: KRW bn)
Risk management strategies
• Card loan focused sales rather than cash advance
• Limit sales of finance product for sub-prime
Reserve policy
• Max of expected loss, incurred loss of FSS requirement
① (Allowance + Reserve) / FSS requirement
7. Major issue
• Interim dividend in September 2015
: Total amount KRW 249.8bn (KRW 1,577 per share)
6
Capital Structure
Leverage
Source: separate financial statement
① Based on previous quarter’s total capital since 2013
2012 2013 2014 2015 YoY
Total asset 11,252 11,521 12,397 13,311 7.4%
Total capital① 2,192 2,325 2,549 2,468 -3.2%
(unit: KRW bn)
Capital Adequacy Ratio
5.1X 5.0X 4.9X
5.4X
2012 2013 2014 2015
18.7% 19.4%
18.2% 17.0%
2012 2013 2014 2015
8. 7
Funding
Funding Position Maturity
2014 2015
Total funding 3,584 4,031
Bond 1,820 2,160
ABS 604 461
CP, Short-term bond, Bank loan 1,160 1,410
(unit: KRW bn) Funding guidelines
• Long-term debt: 60% or more
• By product: ABS <20%, CP <10%
• ALM ratio: 100% or more
Domestic
bond
81.0%
Domestic
ABS
3.3%
Overseas
ABS
8.4%
Bank loan
3.9%
CP and
short-term
bond
3.4%
2014 2015
1.8yr
2.1yr 2.1yr
1.8yr
133.4%
158.7%
137.9%
129.4%
2012 2013 2014 2015
Debt maturity ALM ratio
Domestic
bond
84.2%
Domestic
ABS
3.8%
Overseas
ABS
9.5%
Bank loan
2.5%
KRW 7.9tn KRW 9.1tn
Portfolio by product
New funding
Source: company
9. 8
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
690 780 810
998
824
866
490
490
1,514
1,646
1,300
1,488
2012 2013 2014 2015
Cash Credit line
2,311
1,881 2,083
2,590
65.5%
87.5%
62.4% 57.4%
2012 2013 2014 2015
Short-term debt Short-term debt coverage
Source: company
10. 9
Enhance Brand Identity
Space marketing
Provide handy digital services
• Help easy and safe use of credit card through digital services
Differentiate digital strategy
• Mobile dedicated card(competitors)
vs. Digital optimized services(Hyundai card)
Provide differentiated members’ experience by space
with analog services
New space launching in 2015
• Music Library + UNDERSTAGE
• Card Factory
#1 Lock & Limit
– Customers control payment and usage
ceiling through mobile App
#2 Virtual card number
– Customers easily create virtual card
information
Digital Hyundai Card
Services
11. 10
Appendix
Item 2011 2012 2013 2014 2015
Market share Retail credit purchase 15.5% 15.5% 14.5% 14.3% 14.2%
Asset
Total 9.6tn 9.9tn 9.9tn 10.8tn 11.7tn
% of credit purchase 68.1% 66.7% 64.3% 64.0% 65.2%
Asset quality
30+ days DQ ratio 0.4% 0.5% 0.6% 0.6% 0.6%
FSS Coverage 199.1% 157.1% 144.0% 132.2% 133.4%
Capital
adequacy
CAR①
19.6% 18.7% 19.4% 18.2% 17.0%
Leverage②
5.4X 5.1X 5.0X 4.9X 5.4X
Funding
portfolio
Total 7.1tn 7.1tn 7.2tn 7.9tn 9.1tn
Bond 85.3% 80.4% 86.7% 84.2% 81.0%
Bank loan 1.4% 1.9% 2.9% 2.5% 3.9%
CP , Short-term bond 6.9% 4.9% - - 3.4%
ABS 6.3% 12.7% 10.3% 13.3% 11.7%
ALM
ALM ratio 149.0% 133.4% 158.7% 137.9% 129.4%
Asset maturity 1.4yr 1.4yr 1.3yr 1.5yr 1.4yr
Debt maturity 2.1yr 1.8yr 2.1yr 2.1yr 1.8yr
① Separate financial statement
② Total asset(current period) / Total capital(previous period) as of 2013
