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FSA, a personal insolvency restructuring firm and sub-prime home loan lender, has had a stellar run since this research piece was published. Many investors made great returns. Great CEO vision, strategy and execution.
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FSA, a personal insolvency restructuring firm and sub-prime home loan lender, has had a stellar run since this research piece was published. Many investors made great returns. Great CEO vision, strategy and execution.
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Discover how Ada catches up with web application development.
Ada on Rails is a bleeding edge Ada tooled framework environment that enables web applications development.
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Understanding User Needs and Satisfying ThemAggregage
https://www.productmanagementtoday.com/frs/26903918/understanding-user-needs-and-satisfying-them
We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
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As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
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(i.e., industry structure in the language of economics).
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Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
2. 1
Disclaimer
This presentation material is being presented to you solely for your information only and may not be taken away by you and 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.
These presentation materials have been prepared by Hyundai Card Corporation., Ltd. (“HCC or the Company”), solely for the use at this
presentation and have not been independently verified. 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. Neither the
Companies nor any of theirs affiliates, advisers or representatives accepts any responsibility whatsoever for any loss or damage arising from any
information presented or contained in this presentation. 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. Neither the Companies nor any of their affiliates, advisers or
representatives make any undertaking to update any such information subsequent to the date hereof. This presentation should not be
construed as legal, tax, investment or other advice.
Certain information and statements made in this presentation contain “forward-looking statements.” Such forward-looking statements can be
identified by the use of forward-looking terminology such as
“anticipate,”“believe,”“considering,”“depends,”“estimate,”“expect,”“intend,”“plan,” “planning, ”planned,” “project,” “trend,” and similar
expressions. All forward-looking statements are the Companies’ current expectation of future events and are subject to a number of factors
that could cause actual results to differ materially from those described in the 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.
Certain industry and market data in this presentation was obtained from various trade associations, and the Companies have not verified such
data with independent sources. Accordingly, the Companies make no representations as to the accuracy or completeness of that data, and such
data involves risks and uncertainties and is subject to change based on various factors.
This presentation does not constitute an offer or invitation to purchase or subscribe for any shares or other securities of the Companies and
neither any part of this presentation nor any information or statement contained therein shall form the basis of or be relied upon in connection
with any contract or commitment whatsoever. Any decision to purchase shares in any offering of shares of the Companies should be made
solely on the basis of the information contained in the offering document which may be published or distributed in due course in connection
with any offering of shares of the Companies, if any.
3. 2
Major issues in 1H15
Focus on Member acquisition and management to prepare for enhanced profitability going-
forward
Maintain Stability and improve customer profile through finance product's qualitative growth
Secure Loyal members and strengthen New members’ lock-in through Differentiated branding
4. 3
Business Environment
Domestic Economy Private Consumption
(unit: KRW tn)
Slow growth of card industry
• Card usage closely linked to private consumption, as a
major means of payment
Economic recovery delayed
• GDP growth rate lowered (Bank of Korea, ‘15. 7)
Low interest continued
• Competition intensified as funding cost gap narrows
2.0%
2.8%
3.3%
2.4%
2.75%
2.50%
2.00%
1.50%
2012 2013 2014 1H15
GDP growth rate Key rate
708 728 749
192
478 490 501
123
67.6% 67.3% 66.9% 64.4%
2012 2013 2014 1Q15
Private consumption Credit card usage
% of credit card usage
5. 4
Asset
Asset Portfolio Business Strategies 2015
(unit: KRW tn)
2012 2013 2014 1H15 YTD
Lump sum 4,397 4,263 4,445 4,113 -7.5%
Installment 2,208 2,133 2,470 2,488 0.7%
Cash advance 940 849 838 785 -6.3%
Card loan 2,352 2,702 3,048 3,072 0.8%
(unit: KRW bn)
Reference : E-mart E card
Strengthened New member Acquisition
• Focus on prime customer
• Expand recruiting channel strategic alliance with large
distribution company
Prime-focused Recruitment
• Provide customized benefits
• Mobile App integrating Card mgmt. and payment (1st in industry)
• Reinforce finance service marketing to prime customers
Creating a New Rule of Alliance
• SSG Point accumulated for all spending
• No hurdles e.g. Min. usage etc.
• Full line-up : check card to corporate card
→ Differentiated benefits and wide usage
6,605 6,396 6,915 6,601
3,292 3,552
3,885 3,857
9,898 9,947
10,800 10,458
66.7% 64.3% 64.0% 63.1%
2012 2013 2014 1H15
Credit purchase Finance % of Credit purchase
6. 5
Profitability
(unit: KRW bn)
① Excluding FX effects
Summary of Income Statement
2013 2014 1H14 1H15 YoY
Operating Rev①
2,527.5 2,618.0 1,268.0 1,269.4 0.1%
Card revenue 2,453.3 2,515.8 1,241.3 1,242.1 0.1%
Operating Exp①
2,307.6 2,318.0 1,093.4 1,129.0 3.3%
Card expense 1,028.2 1,041.3 498.4 529.3 6.2%
SG&A 636.5 647.0 300.3 332.7 10.8%
Interest expense 312.9 305.9 153.6 140.8 -8.3%
Bad debt expense 247.7 265.9 126.3 105.9 -16.1%
Operating income 219.9 300.0 179.2 145.1 -19.1%
Net income 163.2 205.1 137.0 110.8 -19.1%
ROA 1.8% 2.2% 2.8% 2.1% -0.7%p
Analysis on Income Statement
Operating Revenue
• Credit purchase stagnant due to consumption decrease
• Intensified competition on Finance
Operating Expense
• Increased card expense due to acquisition and marketing
to prepare for LT profitability
• Interest and bad debt expense reduction to sustain
profitability
25.7 26.2
1H14 1H15
Sales volume of credit purchase
7. 6
Asset Quality
Delinquency and Reserve Risk Management Strategies
2012 2013 2014 1H15 YTD
Total Reserve 544 594 649 596 -8.3%
Allowance 181 205 236 231 -1.9%
Reserve 363 389 413 364 -11.9%
FSS coverage 157% 144% 132% 133% 1.0%p
Qualitative growth pursued on Finance
• Pursue finance sales focused on Prime customers
• Restriction of card loan sales to sub-prime (CB 8 or lower)
(unit: KRW bn)
0.7%
0.8%
0.9% 0.9%
0.5%
0.6% 0.6% 0.6%
2012 2013 2014 1H15
30+days delinquency ratio
30+days delinquency ratio (excl. re-aged loan)
4.2 4.2 4.1 4.0 4.0 3.9
51.9% 52.0%
53.8%
56.1% 56.1%
58.2%
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15
Avg. CB of card loan customer % of CB 1-4
8. 7
Capital Structure
Leverage
① Based on previous quarter’s total capital since 2013
2012 2013 2014 1H15 YTD
Total Asset 11,252 11,521 12,397 12,112 -2.3%
Total Capital① 2,192 2,325 2,549 2,615 2.6%
(Unit: KRW bn)
Capital Adequacy Ratio
2012 2013 2014 1H15 YTD
Adjusted
Total Asset
9,638 9,616 11,273 10,928 -3.1%
Adjusted
Total Capital
1,801 1,869 2,048 2,198 7.4%
(unit: KRW bn)
5.1X 5.0X 4.9X
4.6X
2012 2013 2014 1H15
18.7% 19.4%
18.2%
20.1%
2012 2013 2014 1H15
9. 8
Funding
Funding Portfolio by product Asset-Liability Maturity
2014 1H15
Total Funding 3,584 900
Bond 1,820 540
ABS 604 -
others 1,160 360
(unit: KRW bn)
Funding Portfolio Guidelines
• Long-term debt : 60% or more
• By Product: ABS <20%, CP <10%
• ALM ratio : 100% or more
Domestic
bond
87.6%
Domestic
ABS
4.0%
Overseas
ABS
5.0%
Loans
2.7%
CP
0.7%
2014 1H15
1.8yr
2.1yr 2.1yr
1.9yr
133.4%
158.7%
137.9% 140.7%
2012 2013 2014 1H15
Debt maturity ALM ratio
Domestic
bond
84.2%
Domestic
ABS
3.8%
Overseas
ABS
9.5%
Loans
2.5%
KRW
7.9tn
KRW
7.5tn
10. 9
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)
Liquidity Management
• Satisfies Basel III Liquidity coverage ratio
• Diversified Credit lines by lender and tenor
(unit: KRW bn)
690 780 810 973
824
866
490
490
1,514
1,646
1,300
1,463
2012 2013 2014 1H15
Cash Credit line
2,311
1,881 2,083 2,103
65.5%
87.5%
62.4%
69.6%
2012 2013 2014 1H15
Short-term debt Short-term debt coverage ratio
11. 10
Branding Progress
2013.2
Design Library
2015.5
Music Library + UNDERSTAGE
Hyundai card Library Card Factory
2014.4
Travel Library
Visualize financial capital through industrial capital
• Demonstrates manufacturing process of “Card”, the most
advanced currency
• Design motifs on Industrial Revolution
• Provides user experience of actual card issuance