Consumer Finance Industry & KTC Portfolio Performances Credit - - PowerPoint PPT Presentation

KTC Story Consumer Finance Industry & KTC Portfolio Performances Credit Card Marketing Program Personal Loan Marketing Program

KTC Story

Total Portfolio

11.4%

Card Spending

14.0% NPL 1.9% COF 3.3%

Net Profit 20.6%

Personal loan

16.0%

Credit card

9.9% 1.0%

Credit card 1.4% Personal loan

(YoY) (YoY)

(%YoY)

(YoY)

4

NIM 15.5%

(%YoY)

Top 10 Shareholders (as of Sep 30, 2016)

2011 2012 2013 2014 2015 3Q16 Thai Institutional Holding 51.59% 51.63% 53.18% 62.87% 72.01% 67.03% Thai Individual Holding 38.43% 45.21% 43.45% 29.32% 21.87% 19.54% Foreign Holding 9.97% 3.15% 3.37% 7.81% 6.12% 13.43% Total Number of Shareholders 4,198 2,735 3,550 3,125 3,426 3,105 5

KTB

Foreign

49.45% 13.43%

Thai Institutional

Thai Individual

17.58% 19.54%

• 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 1 Krung Thai Bank Public Co., Ltd. 49.45% 2

• Mr. Mongkol Prakitchaiwattana

9.42% 3 Thai NVDR 3.91% 4

• Ms. Chantana Jirattitepat

3.25% 5 CHASE NOMINEES LIMITED 2.64% 6 RBC INVESTOR SERVICES BANK S.A. 1.94% 7 TISCO Master Pooled Fund 1.40% 8 Thai Value Focus Equity – Dividend Fund (UOBAM) 1.26% 9 SCB DIVIDEND STOCK 70/30 LONG TERM EQUITY FUND 1.24% 10 NORBAX, INC. 1.23%

Source: TSD

6 (As of September 30, 2016)

Credit Card Personal loan Others

% of Total Receivables

(Circle Loan, KTC Million, and Miscellaneous)

Credit Card Personal loan Others

% of Total Revenue

(Circle Loan and KTC Million)

7

Consumer Finance Industry & KTC Portfolio Performances

Consumer Finance Industry & KTC Portfolio Performances

9

Source: BoT & NESDB

0.61 0.69 0.72 0.81 0.91 1.07 1.20 1.31 1.39 0.71

4.77 5.21 5.13 5.63 5.98 6.54 6.76 6.92 6.98 3.58

12.9% 13.2% 14.0% 14.5% 15.1% 16.4% 17.7% 18.9% 19.9% 20.0% 6M16

Baht Trillion

Total Credit Card Spending of Industry Private Consumption Expenditure Total Credit Card Spending of Industry (%)

Total Credit Card Spending Private Consumption Expenditure

10.1% 4.5% CAGR (%)

PCE Card Spending

CAGR (%)

10

Source: BoT & KTC

9M16

27% 27% 32% 33% 5% 9% 8% 7% 46% 34% 33% 34% 22% 30% 27% 25%

Others Outsources & Telesale KTC Branch KTB

Distribution Channels

Others: Printing Media Insertion, Marketing Events, Internet, Corporate Alliance, Take One Partner, Network Management, Others

48.7% 48.0% 46.5% 45.3% 51.3% 52.0% 53.5% 54.7% 8.4% 8.9% 8.7% 8.9% 9M16

Commercial Banks Non Banks KTC

Market Share

1,567,283 1,807,755 1,887,015 2,039,967

2.5% 15.3% 4.4% 13.4%

9M16 # of cards (unit)

Number of Cards Growth (YoY)

10.0% 9.5% 7.2% 8.1% 2.5% 15.3% 4.4% 13.4% 9M16

Industry KTC

%Growth (YoY)

11 11

Source: BoT & KTC

66.3% 66.9% 66.3% 66.4% 33.7% 33.1% 33.7% 33.6% 10.1% 9.9% 10.5% 11.0% 9M16 Commercial Banks Non-Banks KTC

Market Share

11.2% 9.4% 6.6% 7.2% 4.0% 7.4% 12.3% 14.0% 9M16 Industry KTC

% Growth (YoY)

120,929 129,828 145,800 103,926 118,433

4.0% 7.4% 12.3% 11.9% 14.0% 9M15 9M16 Baht Million Spending Growth (YoY)

%NPL (90dpd) 2013 2014 2015 9M16 Industry 2.29% 2.61% 3.10% 3.75% Commercial Bank 2.64% 3.17% 3.95% 5.02% Non-Bank 1.75% 1.75% 1.79% 1.82% KTC 2.19% 1.66% 1.35% 1.37%

Portfolio Quality

12

Source: BoT & KTC

60.4% 60.8% 60.9% 60.1% 39.6% 39.2% 39.1% 39.9% 12.2% 11.8% 12.3% 13.1% 9M16 Commercial Banks Non-Banks KTC

Market Share

11.0% 9.5% 5.8% 6.0% 3.8% 6.6% 10.1% 9.9% 9M16 Industry KTC

%Growth (YoY) 97.8% 98.3% 98.7% 98.6%

2.2% 1.7% 1.3% 1.4%

35,297 37,621 41,412 41,325

2.5% 2.3% 2.0% 2.1%

2013 2014 2015 9M16

<= 90 days > 90 days Delinquency

Baht Million

13

Source: BoT & KTC

25.5% 24.2% 20.9% 18.8% 74.5% 75.8% 79.1% 81.2% 5.6% 5.9% 5.8% 5.9% 9M16

Commercial Banks Non Banks KTC

Market Share

638,959 693,273 747,343 793,486

2.0% 8.5% 7.8% 7.9% 9M16

Amount %Growth (YoY)

(unit)

2013 2014 2015 9M16

30% 29% 38% 39% 2% 3% 2% 1% 65% 64% 57% 57% 3% 4% 3% 3%

Others Outsources & Telesale KTC Branch KTB

Others: Internet, Marketing Events, and Others

Distribution Channels

12.5% 3.2% 8.6% 6.6% 2.0% 8.5% 7.8% 7.9% 9M16

Industry KTC

%Growth (YoY)

14

Source: BoT & KTC

Portfolio Quality

52.9% 51.3% 48.6% 47.0% 47.1% 48.7% 51.4% 53.0% 5.1% 5.3% 5.7% 6.1%

9M16

Commercial Banks Non Banks KTC

Market Share

16.3% 4.6% 3.8% 3.6% 14.2% 10.1% 11.6% 16.0%

9M16

Industry KTC

%Growth (YoY)

15,121 16,644 18,583 20,294

9M16

<= 90 days > 90 days Delinquency

Baht Million

%NPL (90dpd) 2013 2014 2015 9M16 Industry 3.65% 4.55% 5.17% 3.46% Commercial Bank 3.80% 4.56% 5.01% 4.63% Non-Bank 3.48% 4.54% 5.33% 2.43% KTC 1.47% 1.17% 1.04% 1.01%

15

Source: KTC

Key B/S Figures Fund Usage

51.9 54.5 60.2 61.1 45.8 47.1 51.4 51.4 39.4 41.6 45.1 46.0 6.1 7.4 8.7 9.7

7.5 6.4 5.9 5.3 9M16

Assets Liabilities Interest Bearing Debt Equity D/E

Baht billion

29% 30% 31% 27% 13% 13% 4% 58% 57% 65% 73%

39.4 41.6 45.1 46.0

4.8% 4.4% 3.7% 3.3%

2013 2014 2015 9M16

Short-term Loan Long-term Loan Debentures Cost of fund

Baht billion

Total Available Credit Line = 25,390 MB  KTB = 18,030 MB Others = 7,360 MB

KTC rating : A+ by TRIS

16

(1) The company’s total comprehensive income was THB 2,074 million (Other comprehensive income THB 0.9 million – net of income tax). Source: KTC

Million Baht (%YoY) Million Baht (%YoY) Million Baht (%YoY) Total Revenue 14,337 10.0% 15,559 8.5% 12,840 12.5% Bad Debt Recovery 1,766 22.1% 2,037 15.3% 1,756 18.4% Administrative Expenses 5,377 13.2% 6,139 14.2% 5,084 14.3% Marketing Expenses 945 43.6% 956 1.2% 800 23.7% Fee Paid Expenses 1,180 6.4% 1,701 44.2% 1,512 25.4% Interest Expense 1,764 (5.4%) 1,621 (8.1%) 1,116 (9.2%) Pre-Provisioning Profit 7,195 12.0% 7,799 8.4% 6,640 15.8% Write-Off and Provision 4,989 (2.0%) 5,183 3.9% 4,314 13.6% Profit before Tax 2,206 65.7% 2,616 18.5% 2,326 20.1% Income Tax - Income (Expense) (451) 53.2% (543) 20.3% (472) 18.0%

Net Profit (Loss) 1,755 36.8% 2,073 18.1% 1,854 20.6%

Operating Results

Y2014 Y2015(1) 9M16

17

(1) Excluding Net Interchange & Marketing Expenses Source: KTC

Year 2014 Year 2015 9M16

Net Profit Margin 12.2% 13.3% 14.4% Cost to Income Ratio 37.5% 39.5% 39.6% Operating Cost to Income Ratio(1) 27.3% 29.4% 29.0% Average Interest Received (including credit usage) 18.7% 18.2% 18.8% Average Cost of Fund 4.4% 3.7% 3.3% Net Interest Margin (including credit usage) 14.3% 14.5% 15.5% D/E Ratio (times) 6.4 5.9 5.3 ROE 26.0% 25.7% 26.8% ROA 3.3% 3.6% 4.1% Allowance/Total Receivables 8.9% 8.2% 8.3% Allowance/NPL 363.9% 399.9% 445.8% Earning per share 6.8 8.0 7.2 Book Value per Share (Baht) 28.6 33.9 37.8 Dividend Payout Ratio 40.4% 40.4% NA

12.3% 7.4%

%Growth (YoY) – Total Card Spending

14.0%

(9M16)

2,073 1,755

Net Profit (MB)

Target 15%

1,854 (9M16)

11.4% 10.3% 7.4%

%Growth (YoY) – Total Port

(9M16)

2.1% 2.4% %NPL - Total Port

Target ≤ 2.1%

1.9%

(9M16)

CREDIT CARD BUSINESS

Marketing Program

Get special benefit ‘5% Cash Back’ when spend at least 5 transactions/card/month (maximum cash back of 250 B./card/month)

Samsung Pay is a new payment service by Samsung Electronics to let us make payments using compatible Samsung Galaxy devices, can be used almost

• anywhere. The service supports both

contactless payments using near- field communications (NFC), and also supports magnetic stripe cards. For KTC Visa/Mastercard cardmembers will get special privileges for spending transactions and at strategic partners, from 1 Nov 2016 – 31 January 2017

Get 1 Free benefits when spend at strategic partners (minimum spending required)

SHOPPING

NEW YEAR 2017 Spending + Pts. Redemption Get Cash Rebate Up To 17% Best Redemption 12-15% & Gift Voucher promo: Buy Gift voucher 1,000 Bht + 2017 Pts get 1,300 Bht. Get Discount Up To 15% or FLEXI 0% Cash Rebate Up To 5% or Up To 17% with Tier Spd. /or Pts. Redemption

Focus on shopping centers, department stores, fashion retail shops

Popular categories

Campaigns

DINING

Ensure nationwide coverage with chain restaurants Ensure satisfaction of premium customer segments Ensure presence in strategic locations

Big Campaign - encourage Group Spending in Hotels Worldwide Secure Spending in Mass Hotels

เที่ยวโอซาก้า ยกแก๊ง 4 คน 4 คืน เที่ยวบาหลี ยกแก๊ง 4 คน 4 คืน

เที่ยวในประเทศ ยกแก๊ง 4 คน 4 คืน อิ่ม ยกแก๊ง 4 คน ตลอดปี

กินพักเที่ยว

เปรี้ยว ยกแก๊ง

4 คน ต่อรางวัล

ใช้จ่ายในหมวดโรงแรม ทุกที่ทั่วโลก

ลุ้นรางวัล

รวม 13 รางวัล มูลค่า 790,000 บาท

กินพักเที่ยว

เปรี้ยวยกแก๊ง

400 400 hotel els s in 23 23 count ntries es joined d this s campa paign gn

Hotel Hotel Dining / Wedding / Holiday travel

TRAVEL & LEISURE

• KTC World Travel Service : One stop travel service center
• Promotion in all promotion categories to capture holiday travel season

WELLNESS / HEALTH/ BEAUTY

Hospital Beauty

Fitness

Ensure wide coverage and competitive offers

AUTO / SPORTS/H OBBIES

AUTO: Promotion with key motor brands for car sales & after sale services ; tire &accessories for travel season SPORTS: Secure privileges in more than 300 outlets both local & global brand stores HOBBIES: Not just spending gained, but cardmember’s satisfaction & relationship with partners Hobbies Auto Sports

KTC Flexi Installment plan remains the key marketing tool

Mobile Phones Consumer Electronics Home Improvements IT gadgets Furniture Camera Education Amway

KTC Flexi “Flexi Conversion” as one of the year-end highlights

Chiangmai Nakornrachasrima Chonburi Phuket Petchburi Prachuapkhirikhan

Chonburi Prachupkhirikhan & Petchburi Nakornrachasrima Chiangmai Phuket

Upcountry Promotion

Focus on popular tourist destinations

Exclusive Online privileges to KTC Card up to 70 leading with Online partners : please visit www.ktc.co.th/shoponline

Ensure coverage of key strategic online partners

ONLINE PROMOTION

KTC

FOREVER REWARDS

Dining Sports Department Store Grocery Duty Free Online booking KTC World Travel Service

KTC USHOP

THE MOST CONVENIENT “ 24/7/365 Point Redemption Service” 1) www.ktc.co.th/ushop 2) Line@ 3) Merchandise leaflets 4) Email Over 10,000 quality products in different categories from reliable vendors, distributors and importers

Insurance Special offers to meet the year-end needs

Spending Range E-Money Card (by KTB)

50,000-150,000 KTB E-money Card มูลค่า บาท

1.2 เท่า

150,001-300,000 KTB E-money Card มูลค่า , บาท

1.3 เท่า

300,001- 1,000,000 KTB E-money Card มูลค่า , บาท

1.4 เท่า

1,000,0001 - 3,000,000 KTB E-money Card มูลค่า , บาท

1.5 เท่า

, , ขึ้นไป KTB E-money Card มูลค่า , บาท

1.5 เท่า

ทุก 1,000 คะแนน = เงินลงทุน100 บาท

Investment Season

Donation Sharing happiness to the less fortunates

Marketing Program Personal Loan

Free up to 600 Baht gift voucher

New approved member during 1 Sep – 31 Dec 2016 Note :

• Free gift voucher for the first 2 cycles only
• Registration is required via SMS or www.ktc.co.th/proudnew within Jan 15, 2017

KTC PROUD Off-line Acquisition promotion To achieve new member target of Year 2016

Voucher 300 baht

IF maintain principal 18,000 baht everyday for each cycle

Alternative from PUSH Strategy To create effective PULL Channel

“KTC PROUD MGM 2016”

Cash Back 500 Baht

for both introducer and friend if friend get approval KTC PROUD and maintain principal 18,000 baht everyday for first 2 cycles

Introduce friends via SMS

1st

in the market

• Introduce friends via SMS or www.ktc.co.th/ktcproudmgm
• Period: Nov 2016 - Feb 2017 and get approved by Mar 2017
• No limit on number of friend to introduce

Current KTC PROUD and KTC Credit card members could join

• Current member who withdraw and

maintain outstanding balance every 2,000 Baht get 1 right to win the lucky draw

• SMS registration is required
• Campaign starts 1 Oct - 31 Jan, 2017

Less customer burden via Mass Activation Program More chances to wipe out debts with 3 rounds and More Prizes

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, promise, or guarantee

• f any kind about the accuracy, completeness, or satisfactoriness of the content of the presentation and expressly disclaims liability for errors and
• missions in such content

THANK YOU