2014년 3분기 ir 자료 en
TRANSCRIPT
IR Presentation (3Q 2014)
Hyundai Capital Services
DisclaimerThese presentation materials have been prepared by Hyundai Capital Services., Inc. (“HCS 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.
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2012 2013 9M 13 9M 14 YoY
Op Revenues* 3,071 2,921 2,196 2,092 -4.7%
Op Expenses * 2,477 2,487 1,811 1,827 0.9%
Bad Debt Exp. 377 453 311 325 4.3%
Operating Income 595 435 386 265 -31.4%
Net Income 437 391 356 193 -45.9%
Income Statement (KRW Bn)
Special Agenda I – Decrease in Profitability
ROA
Key Highlights
* excl. FX effect
2.6%2.2% 1.9%
1.3%
2011 2012 2013 9M14
Decrease in operating revenues
- Regulation change and elevated competition
Expense maintained at similar level
- Declined interest expenses from lower funding
rate offset by increase in bad debt expenses
Increased revenue from increased car sales and newly
changed models
Intensive cost cutting efforts
Reinforced finance programs to support car sales
Forecast and Strategy
3
2.0%
2.5%2.7% 2.6%
2.3% 2.4% 2%
2011 2012 2013 3Q14
Special Agenda II – Improved Asset Quality
4
Improved Quality of New Origination
0%
3%
6%
9%
12%
15%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
3Q13 4Q13 1Q14 2Q14 3Q14
30+ 3MOB (L)
% of Credit Score (CB) 7 Below(R)
30+ Delinquency Ratio
*Excluding NPL purchased from commercial bank
Total Asset Excluding purchased NPL*
Key Highlights
Risk management reinforced since 3Q13
Per product reinforcement by income and credit
- New car financing: more liens set
- Lease: cut off imported car lease
- Used car: tighter u/w for short credit history customers
- P.loan: cut off high risk
- Mortgage: cut off second mortgage
Continue systematic risk control
Macro turnaround to support asset quality
Forecast and Strategy
5
Special Agenda III – Global Funding Excellency
BPS @ G20 Treasury Secretary Meeting
HCS off-shore ABS selected as
best practice long-term financing
on G-20 Treasury secretary meeting
& IOSCO*
First case in Korean Bank/finance Industry
"“Hyundai Capital Service’s ABS is a popular product
accepted by international investors and the selection as a
model case by an international body is not a surprise“
- Richard Lamb
The Bank of Tokyo-Mitsubishi UFJ
Funding Portfolio Diversification
Portfolio by currency (including ABS)
USD
65.0%
CHF
14.0%
AUD
10.1%
JPY
6.5%
MYR
4.4%
• Balance: 5.9 Tn
144A/RegS, USD 500Mn, 3yr. FRN
- Increased US DM proportion (65% of allocation)
CHF, CHF 280Mn, FRN
- 23mo.+3yr. Dual tranche to meet the investor
needs
2014 Major Issuance
<Background for selection>
Funding cost reduction and portfolio diversification
Enhanced security for the overseas investors with
use of dual SPC (on/offshore)
Introduced new overseas funding option for
emerging economies
* meeting of G-20 Finance Ministers and Central Bank Governors & International Organization of Securities Commissions
Stagnant asset size
- New Car & Lease: sale volume decreased due
to the elevated competition
- P.Loan: sale volume decreased from the risk
management reinforcement
- Mortgage: sale volume decreased with change
in LTV regulation (since July)
Maintain current portfolio proportion
New car volume increase due to the new model
launches from HMC and KMC
* Auto: new car finance, auto lease, used car finance
6
Forecast and Strategy
Asset Portfolio (KRW Tn) Key Highlights
Asset
11.4 11.0 10.5 10.4
3.4 3.8 4.0 3.8
1.6 1.4 1.5 1.5
1.8 2.0 2.1 2.1
1.5 1.6 1.8 1.8 0.1 0.5 0.5 0.5
19.8 20.3 20.4 20.2
2011 2012 2013 3Q14
New Car Lease Used Car P.Loan Mortgage Others
Total Balance : 20.2 Tn
Auto Asset* : 78%
2.0%
2.5%2.7% 2.6%
2.3% 2.4% 2%
2011 2012 2013 3Q14
Asset Quality and Reserve
30+ Delinquency Ratio
Total Receivables
2011 2012 2013 9M14
Total Reserve* 610 657 763 775
30+ delinquencyCoverage**
151% 143% 154% 149%
Reserve (KRW Bn)
Excluding purchased NPL Stabilizing delinquency
- Risk management reinforced for new
bookings
Increased total reserve
- 30+ delinquency coverage above 140%
Maintain reinforced risk management
Further enhancement from macro recovery* Reserve under IFRS + supplemental reserve** Total Reserve / 30 day+ delinquent asset
7
Key Highlights
Forecast and Strategy
*Excluding NPL purchased from commercial bank
Capital Structure
Leverage (KRW Bn)
Capital Adequacy Ratio
Leverage maintained similar to 2013
- FSS regulation enforced since 2012 : under 10X
Manage leverage within FSS recommended guideline
Dividend in compliance with regulation
* FSS guideline: 7%** Separated Financial Statement
Total Asset / Total Equity*
8
Key Highlights
Forecast and Strategy
13.0%
14.5%15.1%
16.2%
2011 2012 2013 3Q14
8.3X7.2X 6.6X 6.7X
2011 2012 2013 3Q14* Since 2013, previous quarter’s equity have been used for calculation.** Separated Financial Statement
Funding
Funding Portfolio by Product
Funding Portfolio by Currency
Strategic funding based on the market condition
- Bond proportion increased to leverage spread
tightening
Diversification continued
- 144A/Reg S in March (500 Mn USD, 3yr. FRN)
- CHF in October (300 Mn USD equivalent)• Total Balance: 17.4 Tn
• % Long Term : 68.8%
9
Key Highlights
Forecast and Strategy
Product mix guidelines : ABS < 20%, CP < 10%
% of Long-term debt guideline > 60%
Domestic
Bond
51.0%Overseas
Bond
27.2%
CP 1.1%
Loan
7.9%
Domestic
ABS
6.5%
Overseas
ABS
6.3%
1.5%
2.2%
3.4%
4.7%
22.0%
66.2%
MYR
JPY
AUD
CHF
USD
KRW
1,297 1,100 1,304 1,199
2,511 2,480 2,345 2,307
3,808 3,580 3,649 3,505
2011 2012 2013 1H14
63.5% 69.2% 73.7%62.3%
Liquidity Profile (KRW Bn)
Credit LineCash Short-term debt Coverage Ratio*
* Short-term debt Coverage Ratio= (Cash + Unused credit line)/ short-term debt under 1 yr.
Reinforced liquidity guideline under new stress
test model
Early warning detection by monitoring daily
market indicators
Manage less than 1 year maturity by ALM
based funding
Debt maturity > Asset maturity : Maintain ALM
over 100%
Maintain Short-term debt Coverage over 60%
Debt Maturity (KRW Bn)
10
Key Highlights
Forecast and Strategy
Liquidity Position
11,993
29,214 23,837
38,578 38,558 32,156
6.9%
16.8%13.7%
22.1% 22.1%18.4%
4Q14 1H15 2H15 2016 2017 2018~
11
[Appendix] Fact Sheet - HCS
(KRW Bn, %) 2008 2009 2010 2011 2012 2013 9M13 9M14
Domestic Auto Market
Sum(1,000 unit) 1,216 1,455 1,556 1,580 1,542 1,540 1,016 1,059
HMC/KMC M/S 73.0% 76.7% 73.5% 74.5% 74.6% 71.4% 72.2% 72.6%
Asset Portfolio
Total 16,030 16,480 18,788 19,806 20,286 20,397 20,378 20,229
Auto 79.5% 81.1% 81.9% 82.8% 79.8% 78.3% 79.2% 77.7%
Non-Auto 20.5% 18.9% 18.1% 17.2% 20.2% 21.7% 20.8% 22.3%
Asset Quality
Below Precautionary 2.6% 2.3% 2.5% 3.2% 3.9% 5.9% 5.9% 6.1%
NPL 1.6% 1.7% 2.0% 2.5% 3.2% 4.0% 3.6% 3.9%
30+ delinquency 2.3% 1.8% 1.6% 2.0% 2.5% 2.7% 2.6% 2.6%
30+ delinquent Coverage 163.7% 152.7% 157.2% 151.3% 144.9% 154.4% 154.6% 149.3%
Profit Operating Income 505 541 630 659 595 435 386 265
Capital AdequacyCapital Adequacy Ratio 11.5% 15.7% 13.7% 13.0% 14.5% 15.1% 15.8% 16.2%
Asset Leverage 9.7X 7.4X 9.3X 8.3X 7.2X 6.6X 6.5X 6.7X
Funding Portfolio
Total 14,335 14,378 16,560 17,330 17,338 17,755 17,194 17,434
Bond /Loan 70.3% 73.9% 75.0% 80.6% 83.6% 84.6% 84.3% 86.1%
CP 10.6% 6.8% 8.5% 4.3% 3.4% 1.8% 2.4% 1.1%
ABS 19.1% 19.4% 16.5% 15.0% 13.0% 13.6% 13.3% 12.8%
Short-term Coverage 30.4% 36.0% 39.1% 63.5% 69.2% 73.7% 66.3% 62.3%
ALM
ALM Ratio 97.7% 120.4% 138.0% 163.7% 148.0% 142.0% 147.4% 136.8%
Asset maturity (Y) 1.56 1.48 1.36 1.30 1.36 1.43 1.42 1.45
Debt maturity (Y) 1.52 1.78 1.87 2.12 2.02 2.03 2.09 1.99
*based on separate BSPL
