KTC Oppday 58Q2

KTC Story

Consumer Finance Industry & KTC Portfolio Performances

- Credit Card Business

- Personal Loan Business

“Make It Better”

4

11.7%

Credit card spending

Credit Rating

A-/Stable

Net Profit

26%

1,039 MB

Collection Service Outsourcing

in MAY

Total Portfolio

7.7% 8.9%Credit card

Personal loan

5.8% NPL2.2%

Personal loan1.0%

Credit card

1.4%

4.1%Cost of fund

Source: TSD

KTB 49.45%

Thai Institutional

16.88%

Thai Individual

27.43%

Foreign 6.24%

Top 10 Shareholders (as of June 30, 2015)

2011 2012 2013 2014 Jun 30, 2015

Thai Institutional Holding 51.59% 51.63% 53.18% 62.87% 66.33%

Thai Individual Holding 38.43% 45.21% 43.45% 29.32% 27.43%

Foreign Holding 9.97% 3.15% 3.37% 7.81% 6.24%

Total Number of Shareholders 4,198 2,735 3,550 3,125 3,421

5

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

2 Mr. Mongkol Prakitchaiwattana 8.58%

3 Thai NVDR 6.58%

4 Mr. Sataporn Ngamruengpong 2.59%

5 Ms. Chantana Jirattitepat 1.38%

6 Mr. Yue Kwok-Leung 1.33%

7 Thai Value Focus Equity – Dividend Fund (UOBAM)

1.22%

8 State Street Bank and Trust Company 0.97%

9 TISCO Master Pooled Fund 0.86%

10 EGAT Provident Fund (UOBAM) 0.80%

6

% of Total Receivables % of Total Revenue

Total Credit Card Spending & Private Consumption Expenditure

Source: BoT and NESDB

Private Consumption Expenditure Total Credit Card Spending of Industry

Total Credit Card Spending of Industry (%)

0.46 0.54 0.61 0.69 0.72 0.81 0.91 1.07 1.20 1.31 0.66

4.25 4.57 4.77 5.21 5.13 5.63 5.98 6.52 6.72 6.88

3.4410.8% 11.8% 12.9% 13.2% 14.0% 14.5% 15.1% 16.5% 17.8% 19.0% 19.2%

0%

10%

20%

30%

40%

0

2

4

6

8

10

6M2015

8

Baht trillion

Note: Beginning at 1Q2015, calculation method of quarterly Private Consumption Expenditure has been changed from Fixed Base YearMethod (base year of 1988) to Chain Volume Measures: CVM, which all previous data since 1Q1993 have been restated

10.1% 10.0%9.5% 8.6% 8.5% 8.2% 7.5%

-5.6%

2.5%

15.3%12.9%

12.7% 12.6% 12.3%

2012 2013 2014 1Q15 Apr-15 May-15 Jun-15

Industry KTC

49.1% 48.7% 48.0% 47.6% 47.5% 47.3% 46.9%

51.0% 51.3% 52.0% 52.4% 52.5% 52.7% 53.1%

9.1% 8.4% 8.9% 9.0% 9.0% 9.0% 9.1%

1Q15 Apr-15 May-15 Jun-15

Commercial Banks Non-Banks KTC

9

%Growth (YoY)

Market Share

1,528,921 1,567,283

1,807,755 1,895,916

6M15

# of cards (unit)

%Growth (YoY) -5.6% 2.5% 15.3% 12.3%

Number of Cards

Y2011 Y2012 Y2013 Y2014 6M15

23% 26% 27% 27% 29%

7%5% 5% 9% 8%

42% 34%46% 34% 34%

29% 34%

22%

30% 29%Others

Outsource & Telesales

KTC Touch

KTB

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

Network Management, Others

Distribution Channels

6M14 6M15

116,236120,929

129,828

61,02968,141

10

Total Spending

65.3% 66.3% 66.9% 67.2% 66.8% 66.3% 67.2%

34.7% 33.7% 33.1% 32.8% 33.2% 33.7% 32.8%

10.8% 10.1% 9.9% 10.1% 10.6% 10.6% 10.4%



18.7%

11.2%9.4%

8.0%5.2%

6.6%

9.1%

5.0% 4.0%

7.4%

11.0% 9.8% 11.1%

16.0%

2012 2013 2014 1Q15 Apr-15 May-15 Jun-15

Industry KTC

%Growth (YoY)

Baht million

Market Share

Market Share

14.3%

11.0%9.5%

8.7%7.3% 7.7%

7.3%

1.0%

3.8%

6.6%7.9% 7.3% 7.6%

8.9%

2012 2013 2014 1Q15 Apr-15May-15 Jun-15

Industry KTC

11

Portfolio

Portfolio Quality

%Growth (YoY)

6

1.9%2.5% 2.3% 2.3%

-

0.02

0.04

0.06

0.08

0.10

0

5

10

15

20

25

30

35

40

45

6M15

<= 90 days > 90 days Delinquency (31-90 days)

2.2%1.4%

2.7%

1.7%

(Baht million)

37,621 35,297

34,007

37,226

59.7% 60.4% 60.8% 60.5% 60.3% 60.3% 60.3%

40.3% 39.6% 39.2% 39.5% 39.7% 39.7% 39.7%

13.0% 12.2% 11.8% 12.4% 12.5% 12.5% 12.5%



%NPL (90dpd) 2012 2013 2014 1Q15 2Q15

Industry 1.93% 2.29% 2.61% 3.05% 3.23%

Commercial Bank 1.99% 2.64% 3.17% 3.81% 4.16%

Non-Bank 1.85% 1.75% 1.75% 1.89% 1.82%

KTC 2.73% 2.19% 1.66% 1.56% 1.42%

10.8%

16.1%

3.2% 2.2% 2.6% 4.0% 5.4%7.3% 2.0%

8.5% 7.9% 8.0% 7.9% 7.7%

2012 2013 2014 1Q15 Apr-15 May-15 Jun-15

Industry KTC

23.6% 25.5% 24.2% 23.8% 23.5% 23.1% 22.5%

76.4% 74.5% 75.8% 76.2% 76.5% 76.9% 77.5%

6.3% 5.6% 5.9% 5.9% 5.9% 5.9% 5.8%



12

%Growth (YoY)

Market Share

Distribution Channels

626,326 638,959693,273 714,708

6M15

%Growth (YoY) 7.3% 2.0% 8.5% 7.7%

(unit)

Number of Accounts

Y2011 Y2012 Y2013 Y2014 6M15

20%33% 30% 29%

39%3%

3% 2% 3%

2%

72%

61% 65% 64%57%

5% 3% 3% 4% 3%

Others

Outsource & Telesales

KTC Touch

KTB

Others: Internet, Marketing

Events, and Others

20.5%

16.3%

4.6%4.7% 4.4% 4.1%4.2%

4.1%

14.2%10.1%

7.6% 7.0% 6.1%5.8%

2012 2013 2014 1Q15 Apr-15 May-15 Jun-15

Industry KTC

13Source: BoT & KTC

Personal Loan Portfolio

Market Share %Growth (YoY)

97.5% 98.5% 98.8% 99.0%

2.5%

1.5%

1.2% 1.0%

2012 2013 2014 6M15<=90 days >90 days

15,12116,644

13,242

16,769(Baht million)

Delinquency(31-90dpd)

2.1%

3.4%3.2% 3.1%

53.1% 52.9% 51.3% 51.4% 51.1% 51.0% 50.8%

46.9% 47.1% 48.7% 48.6% 48.9% 49.0% 49.2%

5.1% 5.1% 5.3% 5.3% 5.3% 5.3% 5.3%


Commercial Banks Non-Bank KTC

1

%NPL (90dpd) 2012 2013 2014 1Q15 2Q15

Industry 2.98% 3.65% 4.55% 4.94% 4.96%

Commercial Bank 3.15% 3.80% 4.56% 5.04% 5.05%

Non-Bank 2.79% 3.48% 4.54% 4.83% 4.87%

KTC 2.55% 1.47% 1.17% 1.10% 1.02%

Portfolio Quality

58

4.1%

6M15

Short-term Loan Long-term Loan

Debentures cost of fund

49.1

51.9

54.5 53.8

43.9 45.8

47.1 46.1

38.7 39.4 41.6 41.4

5.2 6.1 7.4 7.7

8.5 7.5

6.4 6.0

6M15

Assets Liabilities Interest Bearing Debt Equity D/E

14

Fund UsageKey B/S Figures

41.639.4

Sources: KTC

38.7

14

Total Available Credit Line = 23,220 MB KTB = 18,030 MBOthers = 5,190 MB

Baht billion Baht billion

41.4

15Sources: KTC

Million Baht (%YoY) Million Baht (%YoY) Million Baht (%YoY)

Total Revenue (excluding extra income) 13,036 3.3% 14,337 10.0% 7,494 8.9%

Bad Debt Recovery 1,446 21.3% 1,766 22.1% 963 15.4%

Administrative Expenses 4,750 -27.6% 5,377 13.2% 2,868 14.4%

Marketing Expenses 658 -66.4% 945 43.6% 407 -2.2%

Fee Paid Expenses 1,109 -33.2% 1,180 6.4% 732 31.8%

Interest Expense 1,865 -3.9% 1,764 -5.4% 840 -4.1%

Pre-Provisioning Profit (exc. extra income) 6,421 56.0% 7,195 12.0% 3,786 8.2%

Write-Off and Provision 5,090 44.1% 4,989 -2.0% 2,477 0.7%

Profit (loss) before Tax (exc. extra income) 1,331 127.8% 2,206 65.7% 1,309 26.1%

Income Tax - Income (Expense) (295) -10.6% (451) 53.2% 270 27.5%

Net Operating Profit

(excluding extraordinary items)

Extraordinary income 307 - - - -

Income tax - income (expense) of Extraordinary items (61) - - - -

Net Profit (Loss) 1,283 1,755 36.8% 1,039 25.7%

1,039 25.7%

6M15Operating Results

Y2013 Y2014

1,037 306.6% 1,755 69.3%

16

* Excluding Net Interchange/Marketing Expenses/Loss from impairment assets in 2012/Acquisition** Excluding extraordinary items related to the sale of the investment

Year

2012

** Year

2013

Year

20146M15

Net Profit Margin 2.0% 8.0% 12.2% 13.9%

Cost to Income Ratio 52.0% 36.4% 37.5% 38.3%

Operating Cost to Income Ratio* 30.1% 28.0% 27.3% 29.1%

Average Interest Received (including credit usage) 18.2% 18.2% 18.7% 18.7%

Average Cost of Fund 5.0% 4.8% 4.4% 4.1%

Net Interest Margin (including credit usage) 13.2% 13.4% 14.3% 14.6%

D/E Ratio (times) 8.5 7.5 6.4 6.0

ROE 5.1% 18.3% 26.0% 27.6%

ROA 0.5% 2.1% 3.3% 3.8%

Allowance/Total Receivables 7.3% 8.8% 8.9% 8.7%

Allowance/NPL 195.2% 292.9% 363.9% 392.8%

Earning per share 0.99 4.02 6.81 4.03

Book Value per Share (Baht) 20.1 23.8 28.6 29.9

Dividend Payout Ratio 40.4% 40.2% 40.4% N/A

17

Net Profit (MB)

2012

2014

255

1,037

1,755

2013*

%Growth (YoY) – Total Port

2012

2013

2014

1.6%

6.5%

7.4%

%Growth (YoY) – Total Card Spending

2012

2013

2014

5.0%

4.0%

7.4%

% NPL – Total Port

2012

2013

2014

3.8%

3.0%

2.4%

*Excluding extraordinary items related to the sale of the investment

2015: Target growth = 10-15% 2015: Target growth = 10%

2015: Target growth = 15% 2015: Target Maintained

6M15 1,039 6M15 7.7%

6M15 11.7% 6M15 2.2%

Q2

Opportunity Day August 9’ 5

5 ….The year of moving forward

Credit Card

The year of “Moving Forward”

“STRENGTHEN” Portfolio

“GROW”Share of Wallet

The growth continues >>>>>>>>>>>>>>>>>>>>>

“Grow”

Share of Wallet

“Top of Mind” Brand

“Affirm Leadership”

In Loyalty campaign & Digital mkt

“Strengthen” Portfolio

To Be “NO. ” Preferred Card

19

KTC - Bangchak CardRe-communicate card features & benefits to the cardholders

New CardmembersUsage activation program

“Strengthen”

Portfolio

• Targeted approach• Re-communicate co-branded card that drives acquisition and strengthens

partnership

Frequency for Occasional usersEncourage everyday spending and usage familiarity to become ‘Front of Wallet”

Credit Line IncreaseProactively monitor credit line increase needs to increase customer convenience

Segmentation Approach To ensure relevancy, increase response rate and satisfaction

20

Stand Alone Restaurants

Key Chain Restaurants (Forever Rewards / privilege)

Corporate Chain Dining Campaign Medium Chain Restaurants

“Grow “ Share of Wallet

Dining• “Must Have” card in wallet for dining privileges

• Enhance spending in the key chain & stand alone restaurants

21

“Grow “ Share of Wallet • A wide variety of shopping experiences

• “Value for Money” using Forever Rewards and cash back offer

• Strengthen relationship with “premium brands” ShoppingDepartment Store & Shopping Complex Outlet Mall & Duty FreeCosmetics

Point discount & cash back

Point discount Top spender


Point discount


Gift with purchasePoint discount & cash back

Apparel & Jewelry Grocery

Flexi & cash back

Point discount & cash back Cash back

Flexi & cash back


1,000 points = 100 Baht

Cash back

by Gift Voucher

Cash back by Gift voucher

22

All gas stations, outside InApril - June

Alliance with Toyota Thailand, both new car and after sales service

Tire Program “Flexi” + Cash Back : key brands

April - May

April - May


Gas & Auto

• Drive “value for money” benefit for Gasoline, using Forever Rewards as tool to enhance everyday usage.

• Additional car related benefits that create mega & holistic “automotive” impact

23

Extensive Travel Privileges both Local & Inter


Travel & Leisure

• Expand partners & privileges for holistic travel experience• Delivering optimum flying satisfaction • Capitalize on local and International partners for best benefits

to travelers

One stop travel service

24


Hotel Marketing

• Strengthen high-end privileges while securing the variety offer for mass target• Cover wide range of privileges both Hotel accommodation, and upper dining• Exclusive program with key strategic partners , with the untapped opportunity

“wedding”

Hotel Accommodations Hotel Dining

Wedding

25

1 Mar – May’ 5 1 Apr – May’ 51 Apr – 31 May’15 1 Jun’15 – 31 Jul’161 Jun – 3 Jul’

Exclusive Promotion with very popular restaurant in Chiangmai

Free Instant Premium for

local shopper in TDP

Exclusive Promotion with UD Town; very popular

Community Mall in NE

Long-term Discount at local restaurant in Huahin


UPC marketing

• Aggressive expansion to 14 Key Provinces by securing long term

privileges at local partners , covering restaurants and community mall

• More exclusive TDP program, creating “the everyday” spend for local

shoppers

26

Cash Back for all spending in foreign currency


Overseas Spending

• Generate card usage of premium card segment with the continuity

of overseas spending promotion

27

KTC Corporate online promotion Credited cash back 15% when redeem Forever Rewards points in an amount equivalent to the amount spent online per transaction

Online promotion with key strategic online partners500THB off with Asiabook.com

500THB off with Luxola.co.th

450THB off with Lazada.co.th 300THB off with Zalora.co.th 12% off with Tohome.com 5% off with Dtac.co.th

300THB off +5% with Directtoshop.com 250THB off with Konvy.com 10% off with Ensogo.co.th

Plus enjoy online privileges up to 35 leading online partners : please visit www.ktc.co.th/shoponline

Affirm “Leadership “ in

Digital Mkt.• Continue momentum through both Corporate promotion & Joint

promotion, with key strategic online partners

28


Digital Mkt.

• Intelligent Digital Platform through Online Channels

(Mobile/ Smart Devices [TapKTC] & Website/ PC/ Laptop [ClickKTC])

• Convenience & User-friendly

• Secure & Consistent with Standard Monitoring Process

29

Big Point Redemption more than 90 partners involved

Point donation with Operation Smile

Recurring Campaign with partner’s offer on-top


Loyalty

• Maintain category rhythm momentum through big “Forever Fever” campaign

• Create “WOW” effect “Monthly surprise” to reward customer while

strengthening partner relationship

• CSR campaign , leverage point for donation with Operation Smile Thailand

• Enhance Recurring usage via KTC offer, with partner on top

30

•

• Increase brand awareness via marketing activities • Selected communication media to maximize effectiveness I

“Top of mind”

KTC Brand

New look of my world magazine

New KTC world website Testimonial approach

Premium look materials

Visibility all around

31

สนใจสมัครบัตรไดท้ี ่02 665 5000

ตดิตาม ขา่วสารสทิธพิเิศษ ดีๆ จาก เคทซีี

ไดท้ี ่ www.ktc.co.th

32

http://www.ktc.co.th/

Personal Loan Business

Marketing Program

Q2-Q3/2015

Q2 Opportunity Day

Campaign objective:• To strengthen loan equity “fast approval”• To create “Pull Strategy acquisition ” via KTC TOUCH

Launched Jul 16, 2015

34

ดอกเบีย้ฯ

ราคาเดียว199

ใช้เทา่ไหร่ก็จ่าย

One Price 199-

Only 199B. Interest for each cycle• If maintain principal 18kB everyday for each cycle• Interest 199 baht lasts for the first 2 cycles• Register via SMS/website

Jan – Apr’15 May – Aug’15

KTC PROUDNew Acquisition Promotion

September – December 2015

35

Clear 100% : 6 prizesClear 10% : 360 prizes

Mechanic is every 2,000 B incremental of outstanding bal. get 1 right Register via sms & website by Dec’ 5

Campaign period 1 June – 20 Dec 2015

More chances to wipe out debtswith 6 rounds and More Prizes 366

All seasons KTC helped wiped out debts from almost 3,000 members with over 9 million baht

36

Already Rewarded 191 Prizes Including Gold Necklace and Goat-Shaped Gold Pendant Worth Over 1 Million Bahtto lucky KTC PROUD members by July 2015

37

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

mailto:[email protected]

mailto:[email protected]

Automotive

KTC Oppday 58Q2