KTC: Performance 2Q19 Total Membership 3,390,682 accounts (as of - PowerPoint PPT Presentation

KTC: Performance 2Q19 Total Membership 3,390,682 accounts (as of June 30, 2019)

KTC Story Consumer Finance Industry & KTC Portfolio Performances - Credit Card Business - Personal Loan Business 2

KTC Story 3

• 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 Jun 30, 2019) 1 KRUNG THAI BANK PUBLIC COMPANY LIMITED 49.27% 49.27% 9.54% 2 MR. MONGKOL PRAKITCHAIWATTANA 17.14% 3 THAI NVDR 5.42% Thai KTB 4 MR. SATAPORN NGARMRUENGPONG 4.98% Institutional 5 MS. CHANTANA JIRATTITEPAT 4.98% 6 SOUTH EAST ASIA UK (TYPE C) NOMINEES LIMITED 1.61% Foreign Thai 7 MRS. MANEERAT NGARMRUENGPONG 0.88% Individual 8 MR. KIATINUN DENPAISAN 0.82% 4.20% 36.99% 9 MS. RAWISARA NGARMRUNGSIRI 0.63% 10 MRS. LAWAN WANGLEE 0.52% 2014 2015 2016 2017 2018 1H19 Thai Institutional Holding 62.87% 72.01% 67.23% 57.03% 58.10% 58.82% Thai Individual Holding 29.32% 21.87% 22.45% 35.47% 38.20% 36.99% Foreign Holding 7.81% 6.12% 10.33% 7.51% 3.71% 4.20% Total Number of Shareholders 3,125 3,426 3,815 4,376 12,344 10,626 Source: TSD 4

% of Total Receivables % of Total Revenue Credit Card Credit Card Personal loan Personal loan Others (Circle Loan and miscellaneous) Others (Circle Loan and miscellaneous) (As of June 30, 2019) 5

Credit Card Pico Finance Nano Personal Finance Loan Consumer Finance Industry & Consumer Finance Industry & KTC Portfolio Performances KTC Portfolio Performances 6

Credit card Personal loans Nano Finance Pico Finance Minimum 15,000 - - - income THB 36% amount up to 50,000 Interest rate 18% 28% 36% and fees 28% amount over 50,000 Income < 30K (income 15 – 30K) 1.5x 1.5x limited to 3 lenders Maximum (income 30 – 50K) 3x 100,000 100,000 credit line 5x (income ≥ 50K) (income ≥ 3 0K) 5x Multipurpose Multipurpose Business Related Multipurpose Type of loan Unsecure Unsecure Unsecure Secure or Unsecure Service area Nationwide Nationwide Nationwide Provincial Regulator Bank of Thailand Bank of Thailand Bank of Thailand Ministry of Finance 7

Total Credit Card Spending & Private Consumption Expenditure 7.95 Baht Trillion 7.53 7.25 7.01 6.93 6.75 6.54 5.99 5.64 4.11 21.8% 21.6% 20.9% 20.5% 19.9% 18.9% 17.7% 16.4% 14.5% 14.0% 1.73 1.57 1.49 1.39 1.31 1.20 1.07 0.91 0.89 0.81 2010 2011 2012 2013 2014 2015 2016 2017 2018 1H19 Card Spending CAGR (%) 9.1% PCE CAGR (%) 4.3% Total Credit Card Spending of Industry Private Consumption Expenditure Total Credit Card Spending of Industry (%) Source: BoT & NESDB 8

Million Cards Market Share Market Share 2.41 2.39 52.5% 51.7% 51.2% 52.1% 2.25 2.17 47.9% 48.8% 48.3% 47.5% 2.10 10.8% 10.4% 10.7% 10.4% 2016 2017 2018 1H19 Commercial Banks Non-Banks KTC 2016 2017 2018 1H18 1H19 Acquisition Channels - New Application %Growth (YoY) 11.1% 16% 15% 17% 10.1% 9.8% 24% 34% Others 41% 34% 6.1% 38% 8.7% 3.5% Direct Sale & Telesale 2% 6.9% 4% 5% 5% KTC Branch 49% 40% 39% KTB 37% 1.0% 2016 2017 2018 1H19 2016 2017 2018 1H19 Industry KTC Others: Printing Media Insertion, Marketing Events, Online, Corporate Alliance, Take One Partner, Network Management, and others Source: BoT & KTC 9

Market Share 66.1% 65.3% 65.2% 65.5% Baht Million 34.7% 34.8% 34.5% 33.9% 193,101 11.1% 11.2% 11.2% 11.3% 176,777 165,404 2016 2017 2018 1H19 Commercial Banks Non-Banks KTC %Growth (YoY) 100,282 13.4% 90,785 10.5% 10.0% 6.9% 9.2% 8.2% 6.9% 5.7% 2016 2017 2018 1H19 2016 2017 2018 1H18 1H19 Industry KTC Source: BoT & KTC 10 10

Market Share Baht Million %Growth (YoY) %Growth (YoY) 11.5% 60.6% 60.5% 59.9% 60.2% 51,062 9.4% 49,658 8.1% 0.99% 40.1% 39.5% 39.8% 39.4% 48,338 6.2% 1.01% 99.0% 8.0% 1.12% 46,195 99.0% 46,251 7.4% 98.9% 12.8% 12.3% 12.2% 12.5% 5.6% 1.22% 1.08% 4.6% 98.9% 98.8% 2016 2017 2018 1H19 2016 2017 2018 1H19 Commercial Banks Non-Banks KTC Industry KTC Portfolio Quality 1.9% 1.6% 1.5% 1.6% 1.5% %NPL (90dpd) 2015 2016 2017 2018 1H19 Industry 3.09% 2.84% 1.92% 1.81% 1.85% 2016 2017 2018 1H18 1H19 Commercial Bank 3.95% 3.69% 2.39% 2.17% 2.21% <= 90 Days > 90 Days Delinquency Non-Bank 1.72% 1.54% 1.21% 1.26% 1.31% KTC 1.35% 1.22% 1.12% 0.99% 1.01% Source: BoT & KTC 11

Number of Accounts Market Share 985,037 81.3% 81.1% 81.1% 79.6% 951,882 867,236 852,915 818,068 20.4% 18.9% 18.7% 18.9% 6.7% 6.7% 7.1% 6.5% 2016 2017 2018 1H19 Commercial Banks Non-Banks KTC 2016 2017 2018 1H18 1H19 Acquisition Channels - New Application %Growth (YoY) 2% 2% 3% 4% 16.5% 11.6% 9.5% 58% 58% 58% Others 61% 13.6% Direct Sale & Telesale 4.6% 4% 1% 4% KTC Branch 3% 2.6% 5.3% 4.3% KTB 38% 37% 36% 32% 2016 2017 2018 1H19 2016 2017 2018 1H19 Industry KTC Others: Online, Marketing Events, and Others Source: BoT & KTC 12

Market Share %Growth (YoY) Baht Million * 48.9% 56.5% 56.1% 53.8% 53.0% 27,177 26,821 0.81% 25,423 0.76% 47.0% 46.2% 24,757 43.9% 43.5% 99.2% 99.2% 0.77% 18.2% 0.76% 99.2% 12.7% 21,959 99.2% 8.3% 6.9% 7.0% 7.0% 6.6% 5.1% 0.94% 4.6% 8.2% 6.4% 99.1% 2016 2017 2018 1H19 2016 2017 2018 1H19 Industry KTC Commercial Banks Non-Banks KTC Portfolio Quality 2.5% 2.3% 2.2% 2.1% 2.1% %NPL (90dpd) 2015 2016 2017 2018 1H19 Industry 5.17% 3.16% 2.50% 2.54% 3.49% 2016 2017 2018 1H18 1H19 Commercial Bank 5.01% 4.08% 3.02% 2.97% 5.19% Non-Bank 5.33% 2.35% 2.10% 2.22% 2.03% <= 90 Days > 90 Days Delinquency KTC 1.04% 0.94% 0.76% 0.76% 0.81% * Starting in February 2019 BOT includes Car Title Loan into the Personal loan amount. Retroactive data was not provided. Source: BoT & KTC 13

Key B/S Figures Fund Usage Baht billion Baht billion 79.6 78.4 73.6 68.3 54.1 53.4 53.5 63.3 61.1 61.2 51.1 58.0 54.1 53.5 53.4 51.1 84% 81% 84% 81% 5.62 4.85 3.87 3.56 17.2 16.4 12.6 10.3 2016 2017 2018 1H19 3.1% 3.1% Assets Liabilities Interest Bearing Debt Equity D/E 2.9% 2.9% 51.1 81% 53.4 3.1% 81% 3.1% Baht billion 84% 53.5 84% 54.1 2.9% 2.9% Long-Term Loans Short-term loans Total Credit Line = 29,540 MB → KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS 19% 19% 2017 2016 1H19 2018 16% Others = 11,510 MB KTB = 18,030 MB Cost of fund 16% Debenture Remaining Term (ST & LT) 19% 19% 16% 16% Average Duration = 3.63 yrs. ≤1Y 2016 2017 2018 1H19 20% 5Y - 10Y Short-term loans Debenture (Fixed Rate Bonds) Cost of fund 32% 10,929 17,045 Total Credit Line = 29,540 MB → KTB = 18,030 MB Others = 11,510 MB KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS KTC rating : A+ by TRIS 25,505 >1Y - 4Y 48% 14

Y2017 Y2018 1H19 Consolidated Operating Results Million Baht (%YoY) Million Baht (%YoY) Million Baht (%YoY) Total Revenue 19,525 11.1% 21,198 8.6% 11,102 7.1% Bad Debt Recovery 2,855 19.0% 3,342 17.1% 1,766 3.3% Administrative Expenses 7,143 3.5% 7,524 5.3% 3,753 2.9% Marketing Expenses 866 (22.8%) 909 5.0% 432 9.0% Fee Paid Expenses 2,258 9.5% 2,366 4.7% 1,172 (1.1%) Interest Expense 1,629 9.9% 1,555 (4.5%) 771 (1.2%) Pre-Provisioning Profit 10,754 16.9% 12,119 12.7% 6,578 10.7% Bad Debt and Doubtful Account 6,627 9.2% 5,703 (13.9%) 2,937 4.9% Profit before Tax 4,127 32.0% 6,416 55.5% 3,640 16.0% Income Tax Expense (822) 30.3% (1,277) 55.2% (728) 16.6% Net Profit 3,304 32.5% 5,140 55.5% 2,913 15.8% 15

Y2016 Y2017 Y2018 1H18 1H19 Net Profit Margin 14.2% 16.9% 24.2% 24.3% 26.2% Cost to Income Ratio 39.3% 36.6% 35.5% 35.2% 33.8% Operating Cost to Income Ratio* 28.5% 27.6% 26.6% 26.8% 25.5% 18.2% 18.2% 18.0% 18.2% 18.3% Average Interest Received (including credit usage) 3.1% 3.1% 2.9% 3.0% 2.9% Average Cost of Fund 15.1% 15.1% 15.1% 15.3% 15.4% Net Interest Margin (including credit usage) 5.62 4.85 3.87 4.24 3.56 D/E Ratio (times) 26.2% 28.9% 35.5% 38.2% 34.8% ROE 3.9% 4.7% 6.7% 6.9% 7.4% ROA 7.9% 7.8% 7.0% 7.7% 7.1% Allowance/Total Receivables 473% 589% 616% 605% 622% Allowance/NPL Charge-off Rate 9.4% 9.3% 7.5% 7.7% 7.6% Earning per share 0.97 1.28 1.99 0.98 1.13 Book Value per Share (Baht) 4.00 4.88 6.34 5.32 6.66 Dividend Payout Ratio 0.41 0.41 0.41 NA NA * Excluding Net Interchange & Marketing Expenses 16

2019 Outlook NET PROFIT (MB) Total Port Growth (YOY) 2017 2017 3,304 7.0% Growth 32% 2018 2018 5,140 6.4% Growth 56% 1H19 Growth 16% 1H19 2,913 7.1% Target Growth Target 2019 2019 10% 10.0% Total Card Spending Growth % NPL – Total Portfolio 2017 1.3% 2017 6.9% 2018 1.1% 2018 9.2% 1H19 1.1% 1H19 10.5% 2019 2019 1.1% Target 15.0% Maintain 2018 17