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Investor Relations FY2010
Kiwoom Securities Co., Ltd. “No. 1 Securities Broker in Korea”
Kiwoom: No. 1 Online Market Player
2
0%
5%
10%
15%
20%
25%
FY03 FY04 FY05 FY06 FY07 FY08 FY09
Kiwoom Other (Avg)* 2nd22.33%(May)
7.05%(May)
Online Retail Brokerage Market Share
10.57%(May)
(* Other (Avg): Samsung, Daewoo, Daishin, KIS, Hyundai, Woori)
(Monthly Average)
First
Mover
Advantage
Customer
Oriented
Approach
Efficient
HTS
“No.1”
Securities
Broker
Kiwoom: No. 1 Online Market Player
3
0%
2%
4%
6%
8%
10%
12%
14%
16%
FY 00 FY 01 FY 02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Kiwoom Other (Avg) * 2nd
5.86%(May)
11.17%(May)
Total Brokerage Market Share
(* Other (Avg): Samsung, Daewoo, Daishin, KIS, Hyundai, Woori)
8.15%(May)
No. 1 in Brokerage M/S for 5 consecutive years
Lowest commission rate 1.5bps
Successful acquisition of diverse customer(s)
(Monthly Average)
Expansion of Customer Base
4
Monthly Average Account 13% increase- FY08 16,090 → FY09 18,176
Customer Cash Deposit 46.2% increase
- FY08 808 bln KRW → FY09 1.18 tril KRW
(374 bln KRW increase)
Expand Customer Base
0
200
400
600
800
1,000
1,200
1,400
0
200
400
600
800
1,000
1,200
FY03 FY04 FY05 FY06 FY07 FY08 FY09
Customer Cash Deposit
No. of Accounts
(Unit: KRW Bln)Customer Cash Deposit & No. of Accounts(Unit: 1,000) New Customers (2009)
“Kiwoom”
80% existing clientele below age 45
Larger percentage of new incoming entrants to the “working world”
- 46.4% below age 35
New Customers Age Demographics
1,115(May)
1,301(May)
VIP Clientele & increase of VIP proportion
- 11th: 2,885 people, VIP proportion: 31.62%
Revenue increase 39%
- Stock revenue increase 85%
0%
10%
20%
30%
40%
50%
60%
'080
4
'080
6
'080
8
'081
0
'081
2
'090
2
'090
4
'090
6
'090
8
'091
0
'091
2
'100
2
1,000
1,500
2,000
2,500
3,000
3,500
인원 주식 선물 옵션
VIP Portion from Total Trade Value
10 11 Diff. Rate
No. 1,945 2,885 941 48.36%
Stock 27.72% 31.62% 3.90% 14.08%
Futures 48.16% 45.59% -2.57% -5.33%
Option 44.06% 42.23% -1.83% -4.16%
VIP Clientele
VIP Clientele Portion
5
6
Strong Trading System
Hero
Stability
Speed
Accuracy
[ Top Priority for Kiwoom’s HTS]
Kiwoom HTS’s Key Points
Diverse Order Method(s)- Immediate, Fast, bid order
Qualitative + Quantitative contents- Diverse investment indices & news info
Real-time overseas stock - Cross-border: China, Hong Kong, Japan, U.S.
Customer-centric live bulletin- VoC (Voice-of-Customer)
User-friendly - Anywhere user login; same screen visibility
7
Strong IT System
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
Order Exec
-
200
400
600
800
1,000
1,200
Concurrent User
42 mil
28 mil
97 k
[ Monthly Avg. Order & Exec. ] [ Monthly Avg. “Hero” Concurrent User]
Kiwoom’s IT Capability
Max. Monthly Average Concurrent Users: 109,000 users (2008.01 ~ 2010.03)
Max. traded value: 4.1 tril KRW / day (2008.01 ~ 2010.03)
Max. Monthly Average Order Executed: 32 mil (2008.01 ~ 2010.03)
8
Net Revenue Breakdown
48.1%
36.8%
3.1%
11.5%
0.4% 0.1%
(FY09 Q4)
Brokerage
Interest Income
IB
AMOther
PI
Kiwoom: South Korea’s No. 1 Securities Firm
Hero
88%
Homepage
7%
Mobile
2%
Others
3%
(As of Mar. 2010)
Other Trade Channels
9
(Unit KRW, Bln, Qtrly Avg)Customer Cash Deposit Margin Loan
0
200
400
600
800
1,000
1,200
1,400
FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09
0
100
200
300
400
500
600
700
800
FY03 FY04 FY05 FY06 FY07 FY08 FY09 May
Long-term Collateral
Total
Core Interest Income: Customer Cash Deposit, Margin Loan
Interest Income:
1,301
(May)
640(May)
204(May)
388 (May)
(Unit KRW, Bln, Qtrly Avg)
10
1. Increase Retail M/S
2. Focus on profitability
3. Successful settlement of new business(es)
FY 2010 Sales Strategy
(단위 : 백만원, %)
Enhance Brand Power
Enhance contents
IncreaseLeverage
StrengthenCustomer
Management
Strengthen Marketing to attract
new customers
Strengthen Customer Service
Expand
Brokerage
M/S
11
FY 2010 M/S Expansion Strategy
Launch of FX Margin Trade (2/22)
Status of F/X Margin Trade- 14th day of biz launch exceed 1,000 contracts
(Stock trade value 75BN KRW)- Active accounts 10%, 1,500 test-accounts
Kiwoom: Status of F/X Margin Trade
Key Points of F/X Margin Trade
- No overlap of domestic trade hours
- Transition from “under-market” “open market”
12
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
Contract
Account
(Account / Contract)
BEP
2010 Entry of iphone (smart phone)
13
Market Status
- Mobile Market Trade Size-> 2008 40tril KRW, 2009년 67tril KRW
- Rapid smart-phone supply(i.e. Credit Card companies)
2010 Entry of iphone(smart phone)
Kiwoom
- Trade Proportion - 2%- Commission Rate Contribution - 9.8%- Commission Rate: 12bps (8 times HTS)
※ Kiwoom Mobile User Status*Monthly: 18,000 users 30,000 users*Monthly M/S: 17% 20% (12 firms)*Monthly CR Proportion: 9.6% 11.1%
Expectation
- Peak interest in “iphone”- Supplement to existing HTS- Existing Kiwoom customers transition to mobile trade
14
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Mobile
Smartphone
(KRW Hundred Million)
15
Successful entry into online security market
Cutting Edge HTS System
Customer-focused Sales structure
(Structured margin level)
Customer Satisfaction (VoC system)
Creative Entrepreneurial Mindset
Kiwoom: Key Success Factors
Appendix 1: Financial Highlights
17
117 123
207
175
236
FY05 FY06 FY07 FY08 FY09 Q4
TOTAL NET REVENUES
833
1,090
1,308
1,741
2,464
FY05 FY06 FY07 FY08 FY09 Q4
TOTAL ASSETS
65 61
125
80
117
FY05 FY06 FY07 FY08 FY09 Q4
OPERATING PROFIT
126163
352
451
705
FY05 FY06 FY07 FY08 FY09 Q4
SHAREHOLDER’S EQUITY
4844
90
54
88
FY05 FY06 FY07 FY08 FY09 Q4
NET INCOME
47.4%
30.4%34.5%
13.5%17.4%
FY05 FY06 FY07 FY08 FY09 Q4 *
ROE
(KRW Bln, %)
* Calculated with Annualized Net Income
Appendix : Balance Sheet
18
(KRW Mil)
FY09 Q4 FY08 FY07
Total Assets 2,464,221 1,741,188 1,308,436
1. Cash & Deposit 1,231,156 1,146,557 639,954
2. Securities 435,895 126,126 71,521
3. Derivatives 342 883 390
4. Loans 601,847 368,405 513,328
5. Tangible Fixed Assets 106,221 22,721 20,717
6. Other Assets 88,761 76,496 62,526
Total Liabilities 1,759,041 1,290,023 956,399
1. Deposit 1,342,639 1,117,713 707,780
2. Borrowings 342,485 123,730 199,514
3. Other Liabilities 73,918 48,580 49,105
Total Shareholder’s Equity 705,180 451,165 352,036
1. Common Stock 121,722 97,297 81,081
2. Capital Surplus 275,931 123,186 87,615
3. Adjustments 2,909 3,226 -277
4. Retained Earnings 303,384 227,455 183,617
FY06 FY05 FY04 FY03
Total Assets 1,090,247 833,019 492,012 318,203
I. Current Assets 1,042,578 787,501 457,995 295,419
1.Cash and financial Inst. 56,388 40,075 49,054 40,091
2.deposit 475,144 393,622 236,322 164,275
3.Trading securities 55,201 35,502 21,592 17,348
4.Options purchased 3,247 430 311 611
5.Loans 331,664 195,258 89,060 42,615
6.Other current assets 123,432 124,886 62,792 31,130
7.Allowance for Loans -2,498 -2,273 -1,137 -650
II. Fixed Assets 47,670 45,518 34,016 22,784
1.Investment securities 8,091 7,226 5,519 4,305
2.Investment assets 11,380 10,399 6,638 4,565
3.PP&E 14,783 15,010 10,127 5,422
4.Other non-current assets 13,416 12,883 11,732 8,492
Total Liabilities 926,884 707,165 415,336 255,866
I. Current liabilities 925,207 706,172 415,117 255,418
1.Call money 0 25,500 12,200 20,500
2.Short-term borrowings 389,109 221,309 124,914 22,615
3.Customers’ deposit 501,277 426,294 266,834 204,680
4.Securities sold 0 0 0 0
5.Options sold 753 516 149 236
6.Other current liabilities 34,068 32,553 11,020 7,387
II. Fixed liabilities 1,676 992 219 447
Total Shareholders’ Equity 163,363 125,854 76,676 62,337
I. Paid-in capital 61,309 61,309 57,500 50,000
II. Capital surplus 2,134 2,134 2,139 0
IV. Retained earnings 100,031 62,260 17,179 12,549
V. Capital adjustments -110 151 -142 -211
(KRW Mil)
※ New accounting standard applied since FY 2007
FY09 FY08 FY07 FY06 FY05 FY04
Net Revenue 235,695 175,461 206,976 123,341 116,985 55,233
Brokerage Commission 121,144 97,355 104,006 60,456 69,315 36,463
Interest 73,224 61,758 68,308 40,463 35,749 11,935
Asset Management 1,115 1,015 1,189 103 78 80
Investment Banking 15,637 5,665 10,703 6,687 2,394 1,952
Principal Investment 24,201 9,200 22,349 15,273 9,180 4,579
Others 369 467 420 358 269 225
SG&A Expense 119,193 95,900 81,911 62,350 51,856 43,667
Compensation & Benefit 48,047 38,066 33,784 25,881 19,205 16,148
IT 24,070 20,214 14,631 11,605 10,245 8,057
Advertising 8,387 6,924 6,907 4,598 3,611 2,661
Fee 9,553 8,808 8,054 6,557 6,719 6,633
Property Rent 3,357 2,552 1,629 1,078 1,144 1,597
Depreciation 11,948 9,373 7,964 6,128 5,476 4,570
Others 13,831 9,964 8,942 6,505 5,458 4,002
Operating Profit 116,501 79,561 125,064 60,991 65,129 11,566
Net Profit 87,603 54,380 89,717 43,902 47,956 7,131
19
(KRW Mil)
Appendix 3-1: Income Statement (Annual)
FY09Q4 FY09Q3 FY09Q2 FY09Q1 FY08Q4 FY08Q3 FY08Q2 FY08Q1
Net Revenue 58,030 56,550 57,787 63,328 44,798 50,018 38,477 42,168
Brokerage Commission 27,886 29,331 31,483 32,444 23,224 35,389 19,342 19,401
Interest 21,369 17,691 16,707 17,457 12,804 14,280 16,612 18,062
Asset Management 256 274 264 321 275 206 212 322
Investment Banking 1,817 3,679 3,539 6,602 1,494 1,329 1,745 1,097
Principal Investment 6,655 5,436 5,709 6,401 6,884 -1,304 448 3,173
Others 44 136 85 104 117 118 119 113
SG&A Expense 33,822 29,387 28,476 27,508 25,735 26,005 22,111 22,048
Compensation
& Benefit15,644 10,528 11,644 10,231 12,165 9,949 7,271 8,682
IT 6,609 5,670 5,472 6,319 4,952 5,056 5,394 4,813
Advertising 1,196 2,693 1,819 2,679 1,354 2,799 1,438 1,333
Fee 2,468 2,482 2,692 1,911 2,065 2,135 2,730 1,878
Property Rent 891 883 868 715 672 638 636 606
Depreciation 3,172 3,055 2,952 2,769 2,257 2,457 2,360 2,299
Others 3,841 4,077 3,028 2,885 2,271 2,971 2,283 2,439
Operating Profit 24,207 27,163 29,311 35,820 19,063 24,012 16,366 20,119
Net Profit 18,838 19,323 22,123 27,319 11,385 17,998 10,337 14,659
20
Appendix 3-2: Income Statement (Qtrly)(KRW Mil)
Appendix 4: Equity Market Data
21
Market Trading Value
(KRW Trn)On/Off line (%) Investor Breakdwon (%)
TotalDaily
AverageOnline Offline Individuals Foreigners
DomesticInstitutions
FY07 141.7 6.7 53.2% 46.8% 65.6% 16.8% 17.6%
May 145.5 6.9 51.7% 48.3% 65.1% 18.8% 16.1%
June 196.7 9.8 53.0% 47.0% 66.4% 17.6% 16.0%
July 204.7 9.7 52.0% 48.0% 66.1% 17.2% 16.7%
Aug 180.9 8.2 52.3% 47.7% 63.6% 19.2% 17.2%
Sept 132.2 7.8 52.5% 47.5% 64.5% 18.1% 17.6%
Oct 231.1 10.5 49.9% 50.1% 62.6% 19.7% 17.6%
Nov 198.9 9.0 50.1% 49.9% 59.8% 20.3% 20.0%
Dec 127.4 7.1 51.6% 48.4% 60.7% 20.3% 19.0%
Jan 155.6 7.1 49.1% 50.9% 57.0% 22.5% 20.5%
Feb 110.0 6.1 50.2% 49.8% 59.2% 21.2% 19.7%
Mar 128.4 6.1 46.2% 53.8% 54.5% 24.2% 21.3%
FY08 150.7 7.2 48.0% 52.0% 57.7% 22.1% 20.2%
May 139.0 7.3 46.2% 53.8% 55.4% 23.2% 21.4%
June 120.1 6.0 49.1% 50.9% 56.6% 22.2% 21.3%
July 138.6 6.0 47.8% 52.2% 54.0% 23.3% 22.7%
Aug 97.3 4.9 45.3% 54.7% 51.3% 25.9% 22.8%
Sept 139.6 6.6 44.0% 56.0% 50.2% 27.3% 22.5%
Oct 148.3 6.7 49.4% 50.6% 55.6% 22.6% 21.8%
Nov 132.0 6.6 60.3% 39.7% 67.3% 14.5% 18.2%
Dec 135.5 6.5 60.5% 39.5% 68.5% 11.5% 20.0%
Jan 112.8 5.9 58.4% 41.6% 66.8% 13.0% 20.2%
Feb 124.3 6.2 59.4% 40.6% 67.7% 12.1% 20.2%
Mar 145.4 6.6 59.1% 40.9% 67.2% 13.9% 18.9%
FY09 232.9 10.6 63.8% 36.2% 73.6% 9.8% 16.6%
May 205.4 10.8 61.4% 38.6% 70.8% 12.0% 17.2%
June 166.3 7.6 58.8% 41.2% 67.3% 13.7% 19.0%July 174.1 7.6 58.1% 41.9% 66.8% 13.9% 19.3%
Aug 196.6 9.4 59.8% 40.2% 69.0% 12.0% 19.0%
Sept 217.2 9.9 57.4% 42.6% 66.5% 14.0% 19.5%
Oct 154.4 7.4 54.8% 45.2% 62.6% 17.2% 20.2%
Nov 120.7 5.7 55.0% 45.0% 64.0% 16.4% 19.6%
Dec 138.0 6.6 56.1% 43.9% 66.8% 14.4% 18.8%
Jan 187.3 9.4 59.7% 40.3% 69.9% 14.5% 15.6%
Feb 119.4 6.3 60.6% 39.4% 69.4% 15.8% 14.8%
Mar 145.1 6.6 57.5% 42.5% 67.7% 16.3% 16.1%
FY10 165.1 7.5 53.6% 46.4% 65.1% 16.8% 18.1%
May 152.7 7.6 53.7% 46.3% 64.4% 18.1% 17.5%
Online and Retail Penetration in Stock Market
30%
40%
50%
60%
70%
80%
FY04 FY05 FY06 FY07 FY08 FY09
Retail Market Penetration
[Source: KRX]
Trading Value in Stock Market(KRW trn)
[Source: KRX]
0
2
4
6
8
10
12
0
50
100
150
200
250
300
FY03 FY04 FY05 FY06 FY07 FY08 FY09
Total Trading Value
Daily Average Trading Value
53.7%
64.4%
Appendix 5: Market Share Data
22
Retail & Online Brokerage Market Share
19.53%
22.33%
0%
5%
10%
15%
20%
25%
FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Retail
Online
0%
2%
4%
6%
8%
10%
12%
14%
16%
FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09
Total Brokerage Market Share
11.17%
KIWOOM KIWOOM
Total Retail Online Total Retail Online
FY05 FY08
Apr 7.36% 10.72% 13.33% Apr 9.14% 15.49% 18.45%
May 8.17% 11.27% 13.83% May 8.73% 15.52% 18.42%
Jun 8.37% 11.27% 13.92% Jun 10.08% 17.79% 20.33%
Jul 7.87% 10.43% 12.99% Jul 10.17% 18.78% 21.03%
Aug 7.92% 11.02% 13.47% Aug 9.97% 19.22% 21.55%
Sept 7.21% 10.23% 12.87% Sept 9.57% 18.89% 21.28%
Oct 8.78% 11.97% 14.59% Oct 11.21% 19.81% 22.06%
Nov 8.51% 11.39% 14.20% Nov 14.54% 21.49% 23.79%
Dec 8.98% 11.53% 14.19% Dec 13.91% 20.34% 22.88%
Jan 8.87% 11.89% 14.35% Jan 13.18% 19.79% 22.42%
Feb 9.20% 12.94% 15.27% Feb 13.15% 19.49% 22.00%
Mar 8.92% 13.06% 15.43% Mar 13.09% 19.45% 21.89%
FY06 FY09
Apr 8.11% 11.99% 14.70% Apr 14.15% 19.45% 22.23%
May 7.83% 12.61% 14.92% May 13.81% 19.51% 22.33%
Jun 7.47% 13.31% 15.57% Jun 13.28% 19.67% 22.26%
Jul 7.68% 12.75% 15.20% Jul 12.42% 18.68% 21.20%
Aug 7.97% 13.14% 15.77% Aug 12.56% 18.44% 21.03%
Sept 8.47% 13.22% 15.80% Sept 12.31% 18.52% 21.28%
Oct 8.79% 13.84% 16.25% Oct 11.95% 19.25% 21.61%
Nov 8.73% 13.75% 16.33% Nov 12.20% 19.44% 21.96%
Dec 9.29% 14.59% 16.99% Dec 11.90% 18.09% 21.00%
Jan 9.25% 14.69% 17.03% Jan 12.46% 18.24% 20.82%
Feb 8.21% 13.86% 16.51% Feb 13.08% 19.65% 21.92%
Mar 9.13% 13.97% 16.51% Mar 11.71% 19.46% 22.37%
FY07 FY10
Apr 8.50% 12.73% 15.60% Apr 10.55% 18.12% 22.17%
May 8.34% 12.67% 15.80% May 11.17% 19.53% 22.33%
Jun 8.48% 12.57% 15.61% Jun
Jul 7.91% 11.71% 14.78% Jul
Aug 9.29% 14.31% 17.28% Aug
Sept 9.97% 15.14% 18.40% Sept
Oct 9.66% 14.93% 18.65% Oct
Nov 10.20% 16.32% 19.37% Nov
Dec 10.44% 16.83% 19.70% Dec
Jan 9.94% 17.24% 19.90% Jan
Feb 10.18% 17.08% 19.98% Feb
Mar 9.02% 16.24% 18.96% Mar
Appendix 6: Customer Data
23
(KRW Bln / Qtrly Average) Customer Cash Deposit
0
200
400
600
800
1,000
1,200
1,400
FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY09
Customer
Assets
(KRW Bln)
No. of
Accounts
Customers’ Loan
(KRW Bln / Qtrly Average)Customer Cash
Deposit
(KRW Bln /
Qtrly Average)Short-term
Margin
Long-term
MarginCollateral
FY03 823 133,700 32 211
Q2 829 144,337 35 4 197
Q3 903 158,545 30 18 198
Q4 955 169,369 29 21 201
FY04 918 181,022 32 22 227
Q2 927 188,566 40 27 197
Q3 1,035 198,655 45 3 36 201
Q4 1,342 217,745 67 12 52 258
FY05 1,596 234,649 56 27 70 276
Q2 1,970 258,738 93 36 76 348
Q3 2,602 290,370 174 50 94 412
Q4 2,737 321,941 177 69 122 460
FY06 2,704 346,084 108 67 136 488
Q2 3,059 367,503 77 51 130 448
Q3 3,279 393,884 93 61 150 477
Q4 3,532 424,755 94 101 169 466
FY07 4,786 487,581 46 440 181 678
Q2 5,771 568,649 26 315 232 835
Q3 5,945 639,466 29 273 280 777
Q4 5,697 689,043 19 210 275 690
FY08 6,154 730,269 22 251 275 778
Q2 5,067 771,908 17 198 254 720
Q3 4,666 837,086 22 161 122 832
Q4 5,480 882,042 18 189 101 950
FY09 7,095 946,694 30 257 124 1,256
Q2 8,056 1,009,967 30 242 156 1,264
Q3 7,869 1,048,637 47.4 271 174 1,147
Q4 8,313 1,090,705 26.0 340 196.2 1,251
April 8,386 1,102,788 39.0 364 199 1,287
May 8,459 1,114,540 48.0 388 204 1,301
1,301 (May)
Margin Loan
0
100
200
300
400
500
600
700
800
FY03 FY04 FY05 FY06 FY07 FY08 FY09 May
Long-term Collateral Total640
(May)
204(May)
388 (May)
(KRW Bln / Qtrly Average)
Company Profile
C.E.O. Mr. Yongwon Kwon
January 2000Establishment
Listing KOSPI-listed 2009 (A039490 KS)
24
Employees 436 **
Shareholder’s Equity KRW 705.1 bln **
Outstanding Shares 22,099,740 Common Stock Shares**
2,244,669 Redeemable Preferred Stock Shares ***
51.41%
29.30%
19.29%
Shareholder Structure **
Domestic
Investors
Foreign
Investors
Daou Tech
** Last updated: 30 April 2010
*** Last Updated: 28 Oct 09
Disclaimer
25
All reasonable measures have been taken to ensure the quality and accuracy of the information available in this
document. Kiwoom Securities Co., Ltd. makes no warranty, express or implied, nor assumes any legal liability or
responsibility for the accuracy, correctness, completeness or use of any information that is available in this document.
Nor does Kiwoom Securities Co., Ltd. accept any liabilities for loss or damage (including consequential loss or
damage), however caused, which may be incurred by any person or organization arising from reliance on or use of
information in this document.
The figures presented in this document are subject to change without prior notice, and Kiwoom Securities Co., Ltd is
neither obligated to provide revisions, nor responsible for any loss or inconvenience caused by changes regarding the
projection and forecast in this document.
