KrungThai Card Public Co. Ltd. · SET:KTC

KrungThai Card Public — Investor Presentation (2017)

18 slides from KrungThai Card Public's investor presentation, 2017

  1. Slide 1: KTC: Performance Y2016

    KTC: Performance Y2016

  2. Slide 2: KTC Story, Consumer Finance Industry & KTC Portfolio Performances

    KTC Story Consumer Finance Industry & KTC Portfolio Performances - Credit Card Business - Personal Loan Business

  3. Slide 3: KTC Story

    KTC Story

  4. Slide 4: Company history and top 10 shareholders

    • Incorporated in 1996 as a credit card servicing subsidiary company of Krungthai Bank PLC • In July 2002, KTB sold the credit card portfolio to KTC which subsequently transformed KTC into a full consumer finance company and later listed on the SET in October 2002 Top 10 Shareholders (as of Dec 31,

  5. Slide 5: Receivables and revenue by product

    % of Total Receivables % of Total Revenue Credit Card Credit Card Personal loan Personal loan Others (Circle Loan and KTC Million) Others (Circle Loan, KTC Million, and Miscellaneous) (As of December 31, 2016) 5

  6. Slide 6: Regulations & Policies

    e Regulations & Policies BOT’s regulations Credit Card Personal Loan Income Requirements: > Minimum monthly income of Baht 15,000 per month Interest rate and fees capped at 20% per annum Credit line not to exceed 5x of monthly income Minimum repayment at 10% of receivables Interest rate and fees cap

  7. Slide 7: Consumer Finance Industry & KTC Portfolio Performances: Credit Card

    Credit Card Personal Loan Consumer Consumer Finance Finance Industry Industry & & KTC Portfolio Performances KTC Portfolio Performances

  8. Slide 8: Total Credit Card Spending vs Private Consumption Expenditure

    Total Credit Card Spending Private Consumption Expenditure Baht Trillion 7.02 7.28 6.75 6.94 6.54 5.99 5.64 5.21 5.13 4.77 18.8% 19.8% 20.4% 16.4% 17.7% 14.0% 14.5% 15.1% 12.9% 13.2% 1.20 1.31 1.39 1.49 0.81 0.91 1.07 0.61 0.69 0.72 Card Spending CAGR (%) 10.4% PCE CAGR (%) 4.8% Total Credit Card Sp

  9. Slide 9: Credit card market share and distribution channels

    Market Share # of cards (unit) 53.5% 55.5% 51.3% 52.0% 2,095,563 1,807,755 1,887,015 48.7% 48.0% 46.5% 1,567,283 44.5% 15.3% 11.1% 4.4% 8.4% 8.9% 8.7% 9.1% 2.5% 2013 2014 2015 2016 Commercial Banks Non Banks KTC Number of Cards Growth (YoY) Distribution Channels %Growth (YoY) 15.3% 22% 30% 27% 24% 1

  10. Slide 10: Credit card spending market share

    Market Share Baht Million 66.3% 66.9% 66.3% 66.1% 164,991 33.7% 33.1% 33.7% 33.9% 145,800 129,828 10.1% 9.9% 10.5% 11.1% 120,929 2013 2014 2015 2016 Commercial Banks Non-Banks KTC % Growth (YoY) 13.2% 12.3% 13.2% 12.3% 11.2% 9.4% 7.4% 4.0% 7.4% 6.6% 6.8% 4.0% 2013 2014 2015 2016 Industry KTC Spendin

  11. Slide 11: Credit Card Portfolio Quality

    Baht Million Market Share % Growth (YoY) 46,195 60.4% 60.8% 60.9% 60.9% 11.0% 11.5% 9.5% 10.1% 39.6% 39.2% 39.1% 39.1% 41,412 6.6% 6.5% 5.8% 3.8% 12.2% 11.8% 12.3% 12.9% 37,621 35,297 2013 2014 2015 2016 2013 2014 2015 2016 Commercial Banks Non-Banks KTC Industry KTC Portfolio Quality % NPL (90dpd)

  12. Slide 12: Personal loan market share and distribution channels

    Market Share (unit) 818,068 79.1% 81.8% 747,343 74.5% 75.8% 693,273 638,959 8.5% 9.5% 25.5% 24.2% 7.8% 20.9% 18.2% 5.6% 5.9% 5.8% 6.0% 2.0% 2013 2014 2015 2016 Commercial Banks Non Banks KTC Amount %Growth (YoY) Distribution Channels % Growth (YoY) 12.5% 3% 4% 3% 3% 9.5% 8.5% 8.6% Others 65% 64% 57%

  13. Slide 13: Personal Loan Portfolio Quality

    Market Share % Growth (YoY) Baht Million 21,959 53.7% 52.9% 51.3% 51.4% 18.2% 16.3% 47.1% 48.7% 48.6% 46.3% 11.6% 10.1% 18,583 14.2% 4.6% 4.1% 16,644 3.8% 5.1% 5.3% 5.7% 6.5% 15,121 2013 2014 2015 2016 2013 2014 2015 2016 Commercial Banks Non Banks KTC Industry KTC Portfolio Quality %NPL (90dpd) 201

  14. Slide 14: Key B/S Figures and Fund Usage

    Key B/S Figures Fund Usage Baht billion Baht billion 51.1 68.3 45.1 41.6 60.2 39.4 58.0 54.5 51.9 51.4 51.1 47.1 4.8% 45.8 45.1 4.4% 41.6 3.7% 39.4 3.1% 7.5 6.4 5.9 5.6 10.3 Short-term Loan Long-term Loan Debentures Cost of fund 7.4 8.7 6.1 Total Available Credit Line = 26,190 MB  KTB = 18,030 MB O

  15. Slide 15: Operating Results

    Y2014 Y2015 Y2016 Operating Results Million Baht (%YoY) Million Baht (%YoY) Million Baht (%YoY) Total Revenue 14,337 10.0% 15,559 8.5% 17,580 13.0% Bad Debt Recovery 1,766 22.1% 2,037 15.3% 2,398 17.7% Administrative Expenses 5,377 13.2% 6,139 14.2% 6,902 12.4% Marketing Expenses 945 43.6% 956 1.2%

  16. Slide 16: Key financial ratios

    Year Year Year 2014 2015 2016 Net Profit Margin 12.2% 13.3% 14.2% Cost to Income Ratio 37.5% 39.5% 39.3% Operating Cost to Income Ratio(1) 27.3% 29.4% 28.5% Average Interest Received (including credit usage) 18.7% 18.2% 18.2% Average Cost of Fund 4.4% 3.7% 3.1% Net Interest Margin (including credit

  17. Slide 17: Net profit and growth targets

    Net Profit (MB) %Growth (YoY) – Total Port 1,755 7.4% 2,073 10.3% Target 15% 2,495 13.2% (20%) %Growth (YoY) – Total Card Spending %NPL - Total Port 7.4% 2.4% 12.3% 2.1% Target Target 15% ≤ 2.1%

  18. Slide 18: Thank You

    THANK YOU Disclaimer: This presentation is intended only for use by Krungthai Card Public Company Limited (KTC). No copy or use of this presentation should occur without the permission of KTC. KTC retains all intellectual property interests associated with the presentation. KTC makes no claim, promi

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