IR Presentation (3Q 2014)

Hyundai Card Corporation

DisclaimerThese presentation materials have been prepared by Hyundai Card Corporation, Inc. (“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.

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2012 2013 9M 13 9M 14 YoY

Op Revenues* 2,469 2,515 1,862 1,906 2.3%

Op Expenses * 2,232 2,295 1,699 1,644 -3.2%

Product/Service Expense

560 566 289 257 -11.4%

Operating Income 237 220 171 269 57.4%

Net Income 194 163 127 205 61.3%

Income Statement (KRW Bn)

Special Agenda I – Enhanced Profit

2.6%2.0% 1.7%

0.02774518

2011 2012 2013 9M14

ROA

Increase in operating revenues

- Installment sales volume normalized

- Interest income Increased from finance product

sales increase

Decrease in operating expenses

- Decrease in product/service expenses

Result of Chapter 2 linked to profit enhancement

Continue Optimizing cost efficiency (Chapter 2)

Accrue more members to broaden profit base

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Key Highlights

Forecast and Strategy

* excl. FX effect

*# members with at least one transaction per month / # eligible card holder

**based 3 MOB of new members acquired through the offline channel, excluding no transaction members

74%

83%

Ch 1 Ch 2

38%

51%

Ch 1 Ch 2

+ 9%

+ 13%

Card Usage* Key Highlights

% of New Members with Spending > KRW 500K**

Achieving customer portfolio with actual users

- Differentiate rewards based on loyalty

New members quality enhanced

- High spending customer focused

Expand M-point accepted merchants to expand

customer’s variety of point spending choice

Establish “Farming” customer mgnt. framework to

provide customized offers for generate steady profit

Forecast and Strategy

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Special Agenda II – Enhanced Customer Portfolio with Chapter2

Awarded for Ethical Business Management:

Hyundai Card

HCC (CEO: Ted Chung) has been renounced as the 22nd winner of the

“Most ethically managed company” by the Korean Association of

the business Ethics on October 14th…

HCC has “3 no-tolerance policy” for customer information

protection, clear business transaction, and collusion” that the

company has internal/external auditing system empowered to

investigate the wrong-doings of the personnel as high as CEO.

The company also has more than 10 initiatives, including compliance

training, external hotline, cyber auditing unit and etc…

Executive VP Hwang said, “the company’s core value of business

ethics is closely related to the survival, and our endeavors to keep

such value has been recognized. We’ll continue to reinforce the

ethical business management.”

HCC Media Exposure

Source: 2014-11-14 FN Times

Changing the rule in credit card with ‘Simple’

Ted chung , CEO of HCC, has made a serious statement that

“Simplification is the key targets for the year 2014. I will be leading

the task.” The concept is to eliminate inefficient “extras” to be

able to focus on the core.

Ever since, the company is undergoing the ‘simplification’

companywide. The intranet is flooded with over 13 thousand ideas in

just two months and turned into the new systems. For example, a

customer handling department used to write about 15 thousand

notes to able to access the phone recordings, yet it’s been

simplified by giving multi-level permissions to the limited party of

the employees…

The top result came from the simplification of the product portfolio.

The “Chapter 2” launched in July last year simplifies the benefits of

the card products into either ‘point’ or ‘cashback’… The result is

the 64% increased net income of KRW 137 Bn, compared to the same

period last year…

Source: 2014-10-17 Korea Economy News

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15.5% 15.5%14.5% 14.2%

14.3% 14.5%13.8% 13.8%

2011 2012 2013 9M14

Asset Portfolio (KRW Tn)

Asset and Market Share

Market Share

Total (Credit*+ Finance)Credit*

* retail spending only

Source: FISIS

Profitability/Stability balance with credit purchase

centered portfolio

- Lump sum + Installment: 61.8%

Increased proportion of finance to enhance

profitability

- Mainly increased with card loans, for lower risk

Maintained 3rd in market share

Qualitative growth by stronger customer

management based on Chapter 2

Increase finance proportion within total risk

management limit

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Key Highlights

Forecast and Strategy

4.1 4.4 4.3 4.1

2.4 2.2 2.1 2.2

1.0 0.9 0.8 0.9

2.0 2.3 2.6 3.0

9.6 9.9 9.9 10.2

2011 2012 2013 3Q14

Lump Sum Installment CA CL Others

Asset Quality and Reserve

30+ Delinquency Ratio

0.6%0.7% 0.8%

0.9%

2011 2012 2013 3Q14

2011 2012 2013 3Q14

Total Reserve* 378 544 594 649

FSS Coverage** 199.1% 157.1% 144.0% 138.0%

Delinquency under 1% maintained

- Slight increase with increase of finance

product volume vs. 2013, yet maintained at

0.9% since 1Q14

Increased total reserve

- FSS Coverage about 142%

Maintain stability/profitability balance with total

risk management

Maintain conservative reserve policy

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Key Highlights

Forecast and Strategy

Reserve (KRW Bn)

* Reserve under IFRS + supplemental reserve** Total Reserve / FSS Requirement

19.6%18.7% 19.4%

20.5%

2011 2012 2013 3Q14

Capital Structure

5.4x 5.1x 5.0x 4.8x

2011 2012 2013 3Q14

Capital Adequacy Ratio

Increased capital from retained earning

- Leverage decreased despite the asset increase

- FSS regulation enforced since 2012: under 6X

Manage leverage within FSS regulation

Dividend in compliance with regulation

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Key Highlights

Forecast and Strategy

Leverage (KRW Bn)

Total Asset / Total Equity*

* FSS guideline: 7%** Separated Financial Statement

* Since 2013, previous quarter’s equity have been used for calculation.** Separated Financial Statement

• Total Balance: 7.5 Tn

• % Long Term : 72.7%

Funding Portfolio by Product

Funding

Strategic Funding based on the market

condition

- Bond proportion increased to leverage spread

tightening

- Reinforced monthly funding balance with CP

Diversification in currency

- Overseas ABS 290 USD Mn (2Q)

Product mix guidelines : ABS < 20%, CP < 10%

% of Long-term debt guideline > 60%

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Key Highlights

Forecast and Strategy

Domestic

Bond

85.5%

CP 1.7%

Loan

2.7%

ABS

10.1%

743 690 780 1,015

841 824 866 620

1,584 1,514 1,646 1,635

2011 2012 2013 3Q14

Liquidity Position

79.0%65.5%

87.5% 80.0%

Liquidity Profile (KRW Bn)

Debt Maturity (KRW Bn)

Reinforced liquidity guideline under new stress

test model

More cash for stronger liquidity position

(replacing Credit Line)

Early warning detection by monitoring daily

market indicators

ALM based funding: Only 27% of total debt

maturing within 1 year

Debt maturity > Asset maturity : maintain ALM

over 100%

Maintain short-term debt coverage over 60%

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Key Highlights

Forecast and Strategy

Credit LineCash Short-term debt Coverage Ratio*

* Short-term debt Coverage Ratio= (Cash + Unused credit line)/ short-term debt under 1 yr.

5,400 11,000 9,530

17,000 17,315 14,610

7.2%

14.7% 12.7%

22.7% 23.1%19.5%

4Q14 1H15 2H15 2016 2017 2018~

[Appendix] Fact Sheet - HCC

(KRW Bn, %) 2008 2009 2010 2011 2012 2013 9M13 9M14

MarketShare

Retail Credit 13.8% 15.7% 15.7% 15.5% 15.5% 14.5% 14.6% 14.2%

Retail Credit + Finance 11.2% 13.1% 14.1% 14.3% 14.5% 13.9% 13.9% 13.8%

Asset Portfolio

Total 5,616 7,136 9,186 9,563 9,898 9,947 9,431 10,967

Lump Sum + Installment 72.9% 74.3% 65.7% 68.1% 66.7% 64.3% 63.5% 61.8%

Finance 27.1% 25.7% 34.3% 31.7% 32.9% 35.1% 35.9% 37.4%

Other 0.0% 0.0% 0.1% 0.2% 0.4% 0.6% 0.6% 0.7%

Asset Quality

Below Precautionary 0.7% 0.4% 0.5% 0.7% 3.5% 4.5% 4.0% 4.9%

NPL 0.1% 0.1% 0.1% 0.1% 0.2% 0.4% 0.3% 0.5%

30+ delinquency 0.7% 0.3% 0.4% 0.6% 0.7% 0.8% 0.8% 0.9%

FSS Coverage 143.3% 123.9% 127.7% 199.1% 157.1% 144.0% 146.0% 138.0%

Profit Operating Income 258 286 379 324 237 220 171 269

Capital AdequacyCapital Adequacy Ratio 23.6% 22.5% 18.7% 19.6% 18.7% 19.4% 20.8% 20.5%

Asset Leverage 4.6X 4.9X 6.0X 5.4X 5.1X 4.9X 4.7X 4.8X

Funding Portfolio

Total 3,980 5,165 7,197 7,068 7,073 7,243 6,733 7,485

Bond /Loan 67.6% 74.8% 83.6% 86.7% 82.4% 89.7% 85.8% 88.2%

CP 14.1% 11.0% 9.1% 6.9% 4.9% - 0.9% 1.7

ABS 18.3% 14.1% 7.2% 6.3% 12.7% 10.3% 13.3% 10.1%

Short-term Coverage 32.7% 18.6% 36.7% 79.0% 65.5% 87.5% 81.5% 80.0%

ALM

ALM Ratio 90.2% 120.9% 132.5% 149.0% 133.4% 158.7% 138.7% 145.4%

Asset maturity (Y) 1.50 1.43 1.38 1.39 1.37 1.34 1.38 1.38

Debt maturity (Y) 1.35 1.73 1.83 2.07 1.82 2.12 1.91 2.01

11* Based on separate BSPL

Contacts

IR Homepage : http://ir.hyundaicard.com

IR email address : irhcc@hyundaicard.com

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