2. Disclaimer
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for the use at this presentation. This presentation material may not be reproduced, redistributed or passed on, directly
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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. 2015 2016 1Q16 1Q17 YoY
Lump sum 4,806 5,311 4,525 5,011 10.8%
Installment 2,807 2,980 2,824 3,004 6.4%
Cash advance 827 855 834 825 -1.1%
Card loan 3,240 3,220 3,240 3,236 -0.1%
Credit purchase oriented asset growth
• Market expansion and auto channel volume increase
• Steady sales increase in installment with interest
Prime-focused membership expansion
• Acquisition reinforced through two-track strategy and
incentive optimization
• Channel efficiency improvement through acquisition from
online and PLCC channels
7,613 8,290 7,348 8,015
4,067
4,075
4,073
4,060
11,680
12,365
11,421
12,075
65.2%
67.0%
64.3%
66.4%
2015 2016 1Q16 1Q17
Credit purchase Finance % of credit purchase
6,611 6,684
6,793
6,902
14.3% 14.2% 14.3%
14.9%
2014 2015 2016 1Q17
2
Asset Portfolio
(unit: KRW bn)
Source: internal sources, excluding corporate sales volume and corporate members
Asset
(unit: KRW bn)
Unit: K members
Business Strategies 2017
Reference
Market share
Membership
Source: Managed Assets
4. 2015 2016 1Q16 1Q17 YoY
Operating revenue①
2,602.4 2,694.6 668.5 700.3 4.8% • Volume increase from auto channel
Operating expenses①
2,370.8 2,456.7 597.9 631.4 5.6%
Card expenses 1,144.4 1,234.3 302.7 339.4 12.1% • Service/promotion fee to support growth
Interest expenses 277.6 258.6 66.8 61.3 -8.2% • Low-interest funding portion increase
Bad debt expenses 237.7 246.2 58.6 51.5 -12.1% • Portfolio effect
SG&A 674.4 677.7 161.7 168.3 4.1% • TV advertisements e.g. vertical card
Operating income 241.5 249.2 73.2 72.6 -0.9%
Net income 186.8 190.0 53.6 53.2 -0.7%
ROA②
1.7% 1.6% 1.9% 1.8% -0.1%p
3
(unit: KRW bn)
Summary of Income Statement
Profitability
① Excluding FX effects
② Quarterly figures are annualized
5. 236 255 284 281
413 367 359 341
649 622 643 622
132.2% 133.4% 132.7% 133.4%
2014 2015 2016 1Q17
Allowance Reserve FSS requirement coverage
0.6% 0.6% 0.6% 0.6%
0.9%
0.8% 0.8% 0.9%
2014 2015 2016 1Q17
30+ days delinquency ratio
30+ days delinquency ratio including re-aged loan
①
4
Delinquency Reserve
Asset Quality
(unit: KRW bn)
Asset quality management strategies
• Focus more on lower-risk card loan
• Conservative U/W policy based on in-house modeling
Reserve policy
• Max of expected loss, incurred loss or FSS requirement
① (Allowance + Reserves) / FSS requirement
6. 2014 2015 2016 1Q17 YoY
Total asset 12,397 13,311 14,516 14,059 -3.1%
Total capital 2,549 2,468 2,647 2,698 1.9%
4.9X
5.4X 5.5X
5.2X
2014 2015 2016 1Q17
18.2%
17.0% 16.9% 18.0%
2014 2015 2016 1Q17
5
Leverage Capital Adequacy Ratio
Capital Structure
(unit: KRW bn)
Capital adequacy management
• Manage under FSS regulations
: Leverage under 6X
: CAR over 8%
Source: Separate financial statement, according to FSS guidelines
7. 73.4%
6.2%
11.8%
6.5%
2.1%
Bond and others Domestic ABS
Overseas ABS Bank loan
Short-term funding
2.1yr
1.8yr
1.9yr
1.8yr
150.2%
129.8% 122.7% 120.5%
2014 2015 2016 1Q17
Debt maturity ALM ratio
KRW
9.6tn
6
Funding Position Maturity
Portfolio diversification
• Stable portfolio through product, maturity, currency
diversification
Funding
Funding guidelines
• By product: ABS <20%, Short-term funding <10%
• ALM ratio: 100% or higher
Source : Internal Sources
8. 810 998
1,520 1,323
490
490
1,185
1,190
1,300
1,488
2,705
2,513
2014 2015 2016 1Q17
Cash Credit line
2,083
2,590
3,846
3,565
62.4% 57.4% 70.3% 70.5%
2014 2015 2016 1Q17
Short-term debt Short-term debt coverage
7
Liquidity Position Short-term debt Coverage
(unit: KRW bn)
Liquidity
(unit: KRW bn)
Liquidity management
• Satisfies Basel III liquidity coverage ratio
• Diversified credit lines by lender and tenor
Contingency framework
• Early warning and response system in place
• Daily monitoring of key market indicators
Source : Internal Sources
① Increased liquidity due to concentrated maturity in ‘17
①
9. Item 2013 2014 2015 2016 1Q17
Market share Retail credit purchase 14.5% 14.3% 14.2% 14.3% 14.9%
Asset
Total 9.9tn 10.8tn 11.7tn 12.4tn 12.1tn
% of credit
purchase
64.3% 64.0% 65.2% 67.0% 66.4%
Asset quality
30+ days DQ ratio 0.6% 0.6% 0.6% 0.6% 0.6%
FSS Coverage 144.0% 132.2% 133.4% 132.7% 133.4%
Capital
adequacy
CAR①
19.4% 18.2% 17.0% 16.9% 18.0%
Leverage②
5.0X 4.9X 5.4X 5.5X 5.2X
Funding
portfolio
Total 7.2tn 7.9tn 9.1tn 9.9tn 9.6tn
Bond, Long-term CP 86.7% 84.2% 81.0% 74.1% 73.4%
Bank loan 3.0% 2.5% 3.9% 6.3% 6.5%
Short-term funding - - 3.4% 1.0% 2.1%
ABS 10.3% 13.3% 11.7% 18.6% 18.0%
ALM
ALM ratio 168.3% 150.2% 129.8% 122.7% 120.5%
Asset maturity 1.3yr 1.4yr 1.4yr 1.4yr 1.5yr
Debt maturity 2.3yr 2.1yr 1.8yr 1.9yr 1.8yr
Appendix
8
① Separate financial statement
② Based on previous quarter’s total capital since 2013
