2. 1
Disclaimer
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Financial statements in this document have been prepared in accordance with K-IFRS. Other additional market information has
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3. 2
Maintained dominant market position through Changing sales strategy, Product
Differentiation despite of intensive competition in finance market
Due to cost efficiency and expanded sales volume, Operating income increased
Maintained Excellent asset quality by enhancing risk management
Overview
4. 3
Asset
Asset Portfolio Business Strategies
(Unit: KRW bn)
2012 2013 2014 3Q15 YTD
New Auto
Captive
993 748 949 1,057 11.3%
New Auto
Non-Captive
734 868 1,019 1,051 3.2%
Used Auto 896 1,100 1,279 1,232 -3.7%
Corporate
Finance
631 745 834 1,068 28.1%
Auto-finance
• Focused on B2B financing
• Enlarged line-up of commodity based on service
(lease, rental)
Corporate-finance
• Stable growth on Corporate Finance focusing
captive loans for HMG group
• Diversified asset portfolio (NPL, real estate,
structured finance etc.)(Unit: KRW bn)
2,623 2,716 3,247 3,340
631 745
834 1,0683,254 3,460
4,081 4,408
80.6% 78.5% 79.6%
75.8%
2012 2013 2014 3Q15
Auto asset Non-auto asset % of Auto asset
5. 4
Profitability
Summary of Income Statement
2013 2014 3Q14 3Q15 YoY
Operating Rev 346.2 350.8 259.1 276.9 6.9%
Operating Exp 270.4 286.3 208.9 216.0 3.4%
Interest expense 157.8 152.7 115.1 106.4 -7.6%
Lease expense 0.0 0.2 0.1 1.0 753.3%
SG & A 71.5 81.7 58.6 66.0 12.6%
Bad debt expense 28.6 33.9 25.8 28.4 9.9%
Operating Income 75.9 64.5 50.3 60.9 21.1%
Non-operating
Income
-16.1 -22.5 -6.9 -2.8 n.a
Equity method
income
-16.3 -22.4 -6.6 -3.1 n.a
Net Income 36.6 24.7 29.4 44.2 50.5%
New handling ROA 3.0% 2.7% 2.4% 2.4% 0.0%p
Analysis on Income Statement
Operating Revenue
• Maintained growth of fundamental by increasing
sales volume
• Profit margin of high-yield lease product
increased
Operating Expense
• Interest expense decreased due to key rate drop
• SG & A expense increased due to securing
medium and long term growth
• Bad debt expense increased with asset growth
Net Income
• Loss on equity method valuation of HLI decreased
(Unit: KRW bn)
7. 6
Capital Structure
Capital Adequacy RatioLeverage
① Based on previous quarter’s total capital
2012 2013 2014 3Q15 YTD
Total Asset 3,896 4,155 4,782 5,142 7.5%
Total Capital① 313 358 504 607 20.5%
(Unit: KRW bn) (Unit: KRW bn)
2012 2013 2014 3Q15 YTD
Adjusted
Total Asset
405 427 526 574 9.1%
Adjusted
Total Capital
3,598 3,870 4,535 4,909 8.2%
12.5 X
11.6 X
9.5 X
8.5 X
2012 2013 2014 3Q15
11.3% 11.0% 11.6% 11.7%
2012 2013 2014 3Q15
8. 7
Bond
90%
Loans
5%
CP
5%
Bond
88%
Loans
6%
CP
4%
ABS
2%
Funding
Funding Portfolio by product Asset-Liability Maturity
2014 3Q15
Total Funding 2,344 1,946
Bond 1,463 1,090
Bank loan 272 226
CP 609 630
KRW
4.0tn
(Unit: KRW bn)
Funding Guidelines
• Long-term debt : 60% or more
• By Product : ABS <20%, CP <10%
• ALM Ratio : 100% or more
KRW
4.4tn
2014 3Q15
New funding
Portfolio by product
Source: Internal Sources
1.7yr 1.7yr
1.9yr
1.9yr
129.5%
132.4%
138.0%
129.3%
2012 2013 2014 3Q15
Debt maturity ALM ratio
9. 8
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)
1,346 1,405 1,500 1,569
45.2% 48.8% 44.5% 45.6%
2012 2013 2014 3Q15
Short-term debt Short-term debt coverage ratio
283 281 262 310
325
405 405
405
608
686 667
715
2012 2013 2014 3Q15
Cash Credit line
