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. Members / Asset
2
Asset growth from increased auto-
channel credit purchase and card loan
2015 2016 2017 1Q18 v. 2017
Lump sum 4,806 5,311 5,378 5,573 3.6%
Installment 2,807 2,980 3,370 3,306 -1.9%
Cash advance 827 855 847 819 -3.4%
Card loan 3,240 3,220 3,487 3,653 4.7%
• Asset portfolio (unit: BN KRW)
(unit: BN KRW)
Reinforced member acquisition and
retention for sustainable growth
6,684 6,793 7,160 7,282
2015 2016 2017 1Q18
(unit: K members)
Normal
members
Credit
purchase M/S
(＋1.7%)
• Total assets• Members
7,613 8,290 8,748 8,879
4,067 4,075 4,334 4,471
11,680 12,365 13,082 13,351
2015 2016 2017 1Q18
Credit
purchase
Financial
business
(＋2.1%)
14.2% 14.4% 14.3%14.3%
① Low-cost CP, co-brand, ② CP, PSC / Source: Product asset basis
• Acquisition
2016 2017 1Q17 1Q18 YoY
New members 1,293 1,449 367 379 3.3%
(Low-cost
channel①
)
20.3% 36.5% 36.0% 36.4% 0.4%p
(High-cost
channel②
)
39.7% 22.8% 23.4% 13.5% -9.9%p
(unit: K members)
4. 3
2016 2017 1Q17 1Q18 YoY
Product asset 12.4TN 13.2TN 12.1TN 13.4TN 10.6%
Oper. revenue①
2,694.6 2,842.6 700.3 723.5 3.3%
Oper. expense②
2,456.7 2,597.5 631.4 696.5 10.3%
Card expense 1,234.3 1,372.3 339.4 368.1 8.5%
Bad debt
expense
246.2 233.2 51.5 70.2 36.1%
SG&A 677.7 717.2 168.3 184.2 9.4%
Oper. income 249.2 258.7 72.6 30.3 -58.3%
Net income 190.0 191.6 53.2 26.1 -51.0%
Excluding
one-off effect③ 190.0 152.7 49.7 26.1 -47.5%
ROA④
1.6% 1.5% 1.8% 0.8% -1.0%p
2015 2016 2017 1Q18
Card expense
/volume⑤ 2.08% 2.04% 2.03% 2.11%
(unit: BN KRW)
Summary of Income Statement
Operating revenue
: Gradual growth from greater purchase
volume
- Purchase return% drop from MDR regulations
Card expense
: Increase in line with volume growth
- Auto promotion cost increase w/ new release
(Santa Fe)
Bad debt expense
: Increase from financial volume growth
and weakened quality
①, ② Excluding FX and derivatives effect, ③ Net income excluding one-off tax refund in ‘17
④ Net income / average balance of product asset, ⑤ Credit purchase volume of individual customers
SG&A
: Continually investing in Digital experts
Profitability
5. DQ%
incl. re-aged
①
②
Asset Quality / Capital
4
① Delinquency rate including unimproved re-aged loans
② (Allowance+reserve)/FSS requirement
Stable quality from conservative U/W
policies and reserving at highest level
2015 2016 2017 1Q18 v. 2017
Total provision 623 643 697 708 1.6%
Allowance 256 284 297 389 30.7%
Reserve 367 359 400 319 -20.1%
FSS
Coverage
133.4% 132.7% 132.2% 136.1% 3.9%p
0.55%
0.59% 0.62%
0.66%
0.78%
0.84% 0.84% 0.86%
2015 2016 2017 1Q18
30+ DQ%
5.4X
5.5X
5.4X
5.6X
2015 2016 2017 1Q18
(unit: BN KRW)
2015 2016 2017 1Q18 v. 2017
Total asset 13,311 14,515 15,413 15,412 0.0%
Total capital
(previous quarter)
2,468 2,647 2,850 2,767 -2.9%
(unit: BN KRW)• Provision • Total asset and capital
FSS-compliant capital management
: Leverage 6X or below
• Leverage• Delinquency rate
7. Digital Activity
6
Digital transformation for a new growth driver
• Entered digital payment market
- Blue Walnut : HCC subsidiary with PG and VAN licenses
- Chameleon : Multiple cards in one plate, choose card in app
- Buddy : AI-based chatbot providing customer service
- Single Sign-on : Use all HCC apps with a single sign-on
• Services launched in 2017• Service launched in 2018
- Cross-border remittance
: Simple cross-border remittance app with a low fee
BuddyChameleon
8. Appendix : History of MDR Change
Enforced date Change Details Comment
2011
Jan Small merchant segment expanded
Add tax-exempt merchant/non-profit corp./local government,
6M grace period when excluded from segment
Mar Debit card MDR lowered 2 track : General (max 2.5→1.7%), mid (2.1~1.8→1.0%)
Apr Small merchant segment expanded Merchant w/ NTS* reported income <120MM
2012
Jan
Small merchant segment expanded
/ MDR lowered
Merchant w/ NTS reported income <200MM Special MDR↓ (2.1→1.8%)
Sep
Small merchant segment expanded
/ MDR lowered
Merchant w/ NTS reported income ≤200MM or card sales
≤150MM
Special MDR↓ (1.8→1.5%)
Dec New MDR scheme enforced MDR scheme reformed in line with amended SCFBA*
2013
Jan Regular update of small merchants Regular application of special MDR to small merchants
Jul Regular update of small merchants
Regular application of special MDR to small merchants and
1st
phased restoration
2014
Jan Regular update of small merchants
Regular application of special MDR to small merchants and
2nd
phased restoration
Jul Regular update of small merchants
Regular application of special MDR to small merchants and
3rd
phased restoration
2015 Jan
Regular update of small merchants
and new mid merchant segment
Regular application of special MDR to small merchants and
4th
phased restoration, first application of special MDR to
mid merchants (200MM<income≤300MM)
Small : Credit 1.5, debit 1.0%
Mid : Credit 2.0, debit 1.5%
2016
Jan
Regular MDR
adjustment/reduction
MDR unit cost re-calculated, MDR lowered for small/mid
merchants
Small : Credit 0.8, debit 0.5%
Mid : Credit 1.3, debit 1.0%
Jul
Regular update of special MDR
applied merchants
Increase rate restricted (1.5/1.8) on merchants excluded from
small/mid segment due to increased income
2017
Jan
Regular update of special MDR
applied merchants
Increase rate restricted (2.39) on merchants excluded from
small/mid segment due to increased income
Jul
Small/mid merchant segments
expanded
- Small : Merchant w/ NTS reported income <300MM
- Mid : Merchant w/ 300MM< NTS reported income ≤500MM
2018 Jan
Regular update of small/mid
merchants
Regular application of special MDR to small/mid merchants
(same as Jul'17)
*NTS : National Tax Service, *SCFBA : Specialized Credit Financial Business Act
