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3. 2013 2014 1Q14 1Q15 YoY
Op. Revenue 346.2 350.8 84.4 90.3 6.9%
Op. Expenses 270.4 286.3 69.0 74.7 8.3%
Bad debt expense 28.6 33.9 7.9 11.8 49.4%
Op. Income 75.9 64.5 15.4 15.6 1.3%
Net Income 36.6 24.7 7.7 9.4 22.1%
3.0%
2.7%
2.5% 2.5%
2012 2013 2014 1Q15
* New handling ROA
Profitability
Income Statement
(KRW Bn)
Key Highlights
• Increase in operation revenues and Income
- Maintained growth of fundamental by increasing sales volume
- Profit margin of high-yield lease product increased
• Increase in net income
- Loss on equity method valuation of HLI decreased
Outlook & Strategy
• Increase sales volume by diversified revenue stream
• Pursue efficiency by keeping a good balance in expenses
ROA
4. New Auto
47.7%
Used Auto
29.9%
Machine
Tool 4.9%
Corporate
Finance
12.9%
PF 4.5%
Market Share
• Total Balance : 4.3 Tn KRW
• Auto portion : 77.6%
86.0% 81.6%
88.1% 84.1%
53.0% 48.9% 51.7% 51.4%
2012 2013 2014 1Q15
* RV : Residual Value
Asset Portfolio and Market Share
Asset Portfolio Key Highlights
Outlook & Strategy
• Maintained dominant market position
- Beyond B2C and focused on B2B financing
- Enlarged line-up of commodity based on service (lease, RV* etc.)
• Diversified asset portfolio
- Corporate finance, Machine tool increased
- Stable growth on Corporate Finance focusing captive loans for HMG
group
• Continue to develop high-yield products
- Operating lease, Rental, NPL, Structured Finance
Used AutoNew Auto Captive
5. • Superb asset quality
- Delinquency rate decreased despite the recession
- Maintained no-loss in real-estate PF
• Conservative reserve policy
- Total reserve well exceeded regulatory requirement
1.1%
0.7% 0.7% 0.7%
2012 2013 2014 1Q15
Asset Quality and Reserve
30+ day delinquency Rate Key Highlights
Total Reserve Outlook & Strategy
(KRW Bn)
2012 2013 2014 1Q15
Total reserve 38.1 41.3 46.7 47.0
Total reserve
/Regulatory Requirement
142% 137% 145% 144%
• Maintain reinforced risk management
• Maintain current customer portfolio proportion
6. 11.3% 11.0% 11.6%
10.6%
2012 2013 2014 1Q15
16.0X 11.6X
9.5X 9.8X
2012 2013 2014 1Q15
Capital Structure
Leverage Key Highlights
Capital Adequacy Ratio Outlook & Strategy
Total Asset / Total Equity • Comply with FSS regulation
- Increased capital from issue of hybrid-bond in ‘14.1H
(120 Bn KRW)
• Manage leverage and capital adequacy ratio within FSS regulation
7. Bonds
89.9%
ABS 1.2%
Loans
5.5%
CP 3.8%
* KOFC excluded
*
• Total Balance : 4.3 Tn KRW
• Long-term Borrowings : 61.4%
• ALM : 134.1%
Funding
Funding Portfolio by Product Key Highlights
Outlook & Strategy
• Flexibly reflect financial market monitoring results on funding strategy
- Gradually Increased portion of Bonds by using low-interest
situations
- Long-term Funding due to short-term and long-term interest rate
reduction
• Pursue stability and efficiency
(Increase long-term Bonds, low interest CP)
• Long-term borrowings target > 60%, ALM > 120%
8. 46.2% 48.6% 44.5% 38.9%
① Short-term Debt Coverage Ratio
= (cash + Trading securities + Unused committed credit line)/
short-term debt balance
Credit LineCash Short-term Debt Coverage Ratio ①
1,269.9
1,059.0
824.4
1,193.0
29.2%
24.4%
19.0%
27.4%
2015 2016 2017 2018~
282.8 280.5 261.9 268.0
325.0 405.0 405.0 385.0
607.8
685.5 666.9 653.0
2012 2013 2014 1Q15
Liquidity Position
Liquidity Profile Key Highlights
Debt Maturity Outlook & Strategy
(KRW Bn)
(KRW Bn)
• Solid liquidity position
- Debt maturity has been extended to cover 2-year cash flows
• Liquidity coverage target > 3M
• Manage stable liquidity through contingency Plan