2. 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. Asset Portfolio Business Strategies 2016
(unit: KRW bn)
2013 2014 2015 2016 YoY
Lump sum 4,263 4,445 4,806 5,311 10.5%
Installment 2,133 2,470 2,807 2,980 6.2%
Cash advance 849 838 827 855 3.4%
Card loan 2,702 3,048 3,240 3,220 -0.6%
Credit purchase oriented asset growth
• Market expansion in alignment with private consumption
• Sales increase in installment with interest
Prime-focused membership expansion
• Optimization in acquisition process and channel led to total
membership increase
• Efficiency improvement through customer lifecycle
management6,396 6,915 7,613 8,290
3,551
3,885
4,067
4,075
9,947
10,800
11,680
12,365
64.3% 64.0%
65.2%
67.0%
2013 2014 2015 2016
Credit purchase Finance % of credit purchase
Reference
6,818
6,611
6,684
6,793
14.5% 14.3% 14.2% 14.3%
2013 2014 2015 2016
Source: company, excluding corporate sales volume and corporate members
Market share
Asset
2
(unit: KRW bn)
Membership
Unit: K members
Source: Managed Assets
4. (unit: KRW bn)
Summary of Income Statement
2014 2015 2016 YoY
Operating revenue 2,569.5 2,602.4 2,694.6 3.5% • Sales volume increase offset impact from MDR cut
Operating expenses 2,279.0 2,370.8 2,456.7 3.6%
Card expenses 1,041.3 1,144.4 1,234.3 7.9%
• Acquisition cost increase in order to secure
prime membership
Interest expenses 305.9 277.6 258.6 -6.9% • Proportion of low-interest funding increase
Bad debt expenses 265.9 237.7 246.2 3.6% • Increase in alignment with asset growth
SG&A 647.0 674.4 677.7 0.5% • OPEX maintained despite sales and asset growth
Operating income 300.0 241.5 249.2 3.2%
Net income 223.5 186.8 190.0 1.7%
ROA 2.2% 1.7% 1.6% -0.1%p
①
①
Profitability
3① Excluding FX effect
5. Delinquency Reserve
0.6% 0.6% 0.6% 0.6%
0.8%
0.9%
0.8% 0.8%
2013 2014 2015 2016
30+ days delinquency ratio
30+ days delinquency ratio including re-aged loan
205 236 255 284
389 413 367 359
594
649 622 643
144.0%
132.2% 133.4% 132.7%
2013 2014 2015 2016
Allowance Reserve FSS requirement coverage
Asset Quality
4
(unit: KRW bn)
①
① (Allowance + Reserves) / FSS requirement
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
6. Leverage
2013 2014 2015 2016 YoY
Total asset 11,521 12,397 13,311 14,516 9.1%
Total capital 2,325 2,549 2,468 2,647 7.3%
Capital Adequacy Ratio
5.0X 4.9X
5.4X 5.5X
2013 2014 2015 2016
19.4%
18.2%
17.0% 16.9%
2013 2014 2015 2016
Capital Structure
5
(unit: KRW bn)
Source: Separate financial statement, according to FSS guidelines
Capital adequacy management
• Manage under FSS regulations
: Leverage under 6X
: CAR over 8%
7. Funding Position Maturity
74.1%
6.1%
12.5%
6.3%
1.0%
Bond and others Domestic ABS
Overseas ABS Bank loan
Short-term funding
2.3yr
2.1yr
1.8yr
1.9yr
168.3%
150.2%
129.8% 122.7%
2013 2014 2015 2016
Debt maturity ALM ratio
KRW
9.9tn
Portfolio diversification
• Stable portfolio through product, maturity, currency
diversification
Funding
6
Funding guidelines
• By product: ABS <20%, Short-term funding <10%
• ALM ratio: 100% or higher
Source : Internal Sources
8. Liquidity Position Short-term debt Coverage
(unit: KRW bn)
780 810 998
1,520
866
490
490
1,185
1,646
1,300
1,488
2,705
2013 2014 2015 2016
Cash Credit line
1,881 2,083
2,590
3,846
87.5%
62.4% 57.4% 70.3%
2013 2014 2015 2016
Short-term debt Short-term debt coverage
Liquidity
7
(unit: KRW bn)
Source : Internal Sources
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
9. Item 2012 2013 2014 2015 2016
Market share Retail credit purchase 15.5% 14.5% 14.3% 14.2% 14.3%
Asset
Total 9.9tn 9.9tn 10.8tn 11.7tn 12.4tn
% of credit purchase 66.7% 64.3% 64.0% 65.2% 67.0%
Asset quality
30+ days DQ ratio 0.5% 0.6% 0.6% 0.6% 0.6%
FSS Coverage 157.1% 144.0% 132.2% 133.4% 132.7%
Capital adequacy
CAR①
18.7% 19.4% 18.2% 17.0% 16.9%
Leverage②
5.1X 5.0X 4.9X 5.4X 5.5X
Funding portfolio
Total 7.1tn 7.2tn 7.9tn 9.1tn 9.9tn
Bond, Long-term CP 80.4% 86.7% 84.2% 81.0% 74.1%
Bank loan 1.9% 3.0% 2.5% 3.9% 6.3%
Short-term funding 5.0% - - 3.4% 1.0%
ABS 12.7% 10.3% 13.3% 11.7% 18.6%
ALM
ALM ratio 134.3% 168.3% 150.2% 129.8% 122.7%
Asset maturity 1.4yr 1.3yr 1.4yr 1.4yr 1.4yr
Debt maturity 1.8yr 2.3yr 2.1yr 1.8yr 1.9yr
① Separate financial statement
② Based on previous quarter’s total capital since 2013
Appendix
8
