KTC57Q2

Make It BetterMake It BetterMake It BetterMake It Better

2012 Report profit 2012 p pImprove overall operational efficiency

2013 Achieved 1,000MB Target profit 2014 “Make It Better”20142017

Make It Better Enhance operating system and marketing programs

2018 in credit card businessNo.14

No.1

% of Total Receivables % of Total Revenue

5Source: KTC

Top 10 Shareholders (as of June 30, 2014)

KTBForeign3.72%

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

2 Mr. Mongkol Prakitchaiwattana 12.92%

3 Thai NVDR 2.95%49.45%

Thai Individual

42.67%

4 Ms. Chantana Jirattitepat 2.12%

5 Mr. Sataporn Ngamruengpong 1.87%

6 Mr. Yue Kwok-Leung 1.41%

Thai Institutional

4.16%

42.67%6 Mr. Yue Kwok Leung 1.41%

7 Mr. Saravut Anakatham 0.95%

8 Mr. Santi Kovitjindachai 0.83%

9 Mr Jaresak Songwutwichai 0 82%9 Mr. Jaresak Songwutwichai 0.82%

10 State Street Bank and Trust Company 0.63%

2011 2012 2013 1H20142011 2012 2013 1H2014

Thai Institutional Holding 51.59% 51.63% 53.18% 53.60%

Thai Individual Holding 38.43% 45.21% 43.45% 42.67%

Foreign Holding 9.97% 3.15% 3.37% 3.72%

Source: TSD

Total Number of Shareholders 4,198 2,735 3,550 3,122

6

Total Credit Card Spending & Private Consumption Expenditure

Baht trillion

30%9

4 38 4.56 5.00 4.995.43 5.74

6.29 6.48

17 1%18.5% 18.9% 20%

25%

30%

6789

4.06 4.38 4.56

1.6011.3% 12.3% 13.5% 13.7% 14.3% 15.0% 15.8%

17.1%

10%

15%

20%

3456

0.46 0.54 0.61 0.69 0.72 0.81 0.91 1.07 1.20 0.30

0%

5%

012

2005 2006 2007 2008 2009 2010 2011 2012 2013 1Q2014

Private Consumption Expenditure (Trillion Baht) Total Credit Card Spending of Industry (Trillion Baht)

Total Credit Card Spending of Industry (%)

2005 2006 2007 2008 2009 2010 2011 2012 2013 1Q2014

Source: BOT and NESDB

Total Credit Card Spending of Industry (%)

8

Credit Card Portfolio Number of Cards

( d )

40%40,000

Million Baht

34 19435,29734 007

(Cards)

1,528,9211,567,283

1,687,555

25%

30%

35%

25,000

30,000

35,000

2012 2013 1H14

34,194

2.2% 2.0%

1 9% 2.5% 2 6%

2.7%

34,007

6.3%2.5%-5.6%%Growth (YoY)

116 23697 3% 98 0%97 8% 5%

10%

15%

20%

000

10,000

15,000

20,000 1.9% 2.5% 2.6%

(Baht Million)

Total Spending

116,236 120,929

61,029

97.3% 98.0%97.8%

0%

5%

0

5,000

2012 2013 1H145.0% 4.0% 5.1%%Growth

(Y Y)2012 2013 1H14

<= 90 days > 90 days

%NPL (90dpd) 2012 2013 1H14

Industry 1 9% 2 3% 2 7%

Delinquency(31-90dpd)

(YoY)

%KTC Mkt Share 2012 2013 1H14

Number of Card 9 1% 8 4% 8 7%

9

Industry 1.9% 2.3% 2.7%

KTC 2.7% 2.2% 2.0%

Source: BoT & KTC

Number of Card 9.1% 8.4% 8.7%

Receivables 13.0% 12.2% 12.4%

Total Spending 10.8% 10.1% 9.9%

% Growth (Y-o-Y)

18.7%

14.3%

# of Cards Credit Card Receivable Credit Card Spending

11.2%

8 2% 8.7%

10.1% 10.0% 9.6% 9.3%

6.3%

11.0%11.7%

9.6%

8.2% 8.7%

5.0%2.9%

7.3%

2.5%

5.6%

3.8% 4.0%3.1%

%4.0%

2012 2013 1Q14 2Q142012 2013 1Q14 2Q14

1.0%

2012 2013 1Q14 2Q14

dIndustry KTC-5.6% Industry KTC

Source: BoT & KTC 10

Industry KTC

Personal Loan Portfolio Number of Accounts

16 000

Million Baht 663,77015,121 15,855 663,770

10,000

12,000

14,000

16,000

638,959

,

1.5% 1.2%

2.5%

13,242

626 326

638,959

98.5%97.5% 98.8%4,000

6,000

8,000 626,3262.1%

3.4% 3.3%626,326

0

2,000

2012 2013 1H14 2012 2013 1H14

D li

2012 2013 2012 2013 1H141H14

> 90 d < 90 d> 90 days <= 90 days

%NPL (90dpd) 2012 2013 1H14

Delinquency(31-90dpd)

> 90 days <= 90 days

%KTC Mkt Share 2012 2013 1H14

11

Industry 3.0% 3.7% 4.2%

KTC 2.5% 1.5% 1.2%

Source: BoT & KTC

Number of Acct 6.3% 5.6% 5.7%

Receivables 5.1% 5.1% 5.2%

% Growth (Y-o-Y)

16.1%

PL Receivable# of Accounts

20 5%

10.8%12.5%

20.5%

16.3%

12.9%

7.7%

7.3%2 0% 2 2%

5.3%

8.8%4.1%

14.2%12.7%

9.7%

2.0% 2.2%

2012 2013 1Q14 2Q14 2012 2013 1Q14 2Q14

Industry KTC Industry KTC

Source: BoT & KTC 12

Industry KTC Industry KTC

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

Total Revenue (excluding extra income) 12,622 1.0% 13,036 3.3% 6,883 8.9%

1H14Y2013Y2012Operating Results

( g ) , , ,

Bad Debt Recovery 1,193 40.1% 1,446 21.3% 835 25.5%

Administrative Expenses 6,565 0.4% 4,750 -27.6% 2,544 11.7%

Fee & Outsource Service Expenses 1,658 -24.9% 1,109 -33.2% 555 0.3%

Interest Expense 1,941 0.0% 1,865 -3.9% 876 -5.9%

Pre-Provisioning Profit (exc. extra income) 4,116 2.5% 6,421 56.0% 3,462 1.4%g ( ) , , ,

Write-Off and Provision 3,531 -37.1% 5,090 44.1% 2,424 -2.0%

Profit (loss) before Tax (exc. extra income) 585 136.6% 1,331 127.8% 1,038 10.2%

Income Tax - Income (Expense) (330) -1245.1% (295) 10.6% (212) 7.8%

Net Operating Profit (excluding extraordinary items)

255 115.7% 1,037 306.6% 826 65.3%

Extraordinary income related to the sale of the investment 307

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

13

1,283 Net Profit (Loss)

Sources: KTC

Fund UsageKey B/S Figures

on ht

n BahtBillion Baht Billion Baht

5.0% 4 8%

38.739.438.749.1 49.951.9

43.9 43.545.8

%4.5%4.8%

11% 13%

61% 63%58%

13%

8.5 x 7.5 x 6.8 x

2012 2013 1H14

11% 13%

28% 24%

13%

29%

2012 2013 1H14

5.2 6.46.1

38.7

39.4

38.7

2012 2013 1H14 1H14201320122012 2013 1H142012 2013 1H14

Assets Liabilities Equity

D/E ratio Interest Bearing Debt

Assets Liabilities Equity

2012 2013 1H14 1H1420132012

Short-term Loan

Long-term Loan

KTB

Debenture

14Sources: KTC

14

Cost of fund

Year2012

** Year2013

1H 2014

Net Profit Margin 2.0% 8.0% 12.0%

Cost to Income Ratio 52.0% 36.4% 37.0%

Operating Cost to Income Ratio* 30 1% 28 0% 27 4%Operating Cost to Income Ratio* 30.1% 28.0% 27.4%

Average Interest Received (including credit usage) 18.2% 18.2% 18.9%

Average Cost of Fund 5.0% 4.8% 4.5%

Net Interest Margin (including credit usage) 13.2% 13.4% 14.4%

D/E Ratio (times) 8.5 7.5 6.8

ROE 5 1% 18 3% 26 3%ROE 5.1% 18.3% 26.3%

ROA 0.5% 2.1% 3.2%

Allowance/Total Receivables 7.3% 8.8% 9.3%

Allowance/NPL (times) 2.0 2.9 3.3

Dividend Payout Ratio 40.4% 40.2% N/A

B k V l Sh (B ht) 20 1 23 8 25 0

15

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

Book Value per Share (Baht) 20.1 23.8 25.0

marketing activitiesCredit Card

August ’2014

17

Secure & grow spending

Build trust &offer convenience

in key categories

& spending privileges

for online users

Expand privileges to upper dining &

Create satisfaction & card spending &

l lt ith upper dining & retail & travel segment

loyalty with targeted

promotions

More focus in key provinces, both

new cards &

Maintain privileges momentumnew cards &

spending momentumin other categories

Targeted i i

Online channel/ social network

Targeted media

Internal communication

channels

PR activities communication channel

18

Secure & grow spending in key categories

Expand privileges to upper dining retail travel segment

ShoppingExpand privileges to upper dining, retail, travel segment

19

Dining

Upper Dining Key provinces : stand alone restaurants

• 100 restaurants in Chiang Mai• 50 restaurants in Udon ,

Ubon, Khon-Khan • 20 restaurants in Phuket• 40 restaurants in Hua-Hin• 50 restaurant in Chonburi• 30 restaurants in Korat,Khaoyai30 restaurants in Korat,Khaoyai

20

ONE STOP TRAVEL SERVICE EXTENSIVE TRAVEL & LEISURE PRIVILEGES

Travel

Flyer RewardsFlyer RewardsCar Rentals

World Class Attractions

Online BookingOnline Booking

k hWorkshops

21

Travel

22

Maintain privileges momentum in other categories

Health & Beauty Auto/Home & Family “enhance frequent usage ““secure key partners”

23

ms

“attractive point earning campaign”

prog

ram

Earning tactic

burn

ing tactic

rnin

g &

b

“Friday delight … the super value point campaign”

both

ear

lanc

ing

b

Burning tactic

Bal

24

More focus in key provinces

Promotion events with key partners Property Developers Hardware stores

Electrical appliances stores IT stores

Joint promotion with local partners

Electrical appliances stores IT stores

HospitalsHotels RestaurantsHospitals

25

Targeted promotions

Increase spendingWin back

26

Online usage privileges with key partners

25% off with www.moxyst.com

Targeted Online promotion

300THB off with www.tohome.comShop online to get X10 reward point

g p

27

600THB off with www.lazada.com Flexi 0% with 3 leading websites200THB off with www.sanoga.com

“TapKTC” & “ClickKTC”

• Simple & easy to use• Convenience

• Secure & consistent

28

The Acquisition PromotionThe Acquisition PromotionThe Acquisition PromotionThe Acquisition PromotionThe objective:• To acquire new member for KTC PROUD• To stimulate for first withdrawal behavior

1st cash WD, pay interest only

• To create value perception among potential

One Baht

• Any new member approved during 1 Jun – 30 Sep 2014Any new member approved during 1 Jun 30 Sep 2014

• Pay interest only “One Baht” for any amount of 1st cash WDvia ATM (1st cash WD within first 2 cycles only)

• Register via SMS to 081-376-1387 or KTC website by 15 Oct

2014

Communication channel: Sales talk/Leaflet/Poster/Counter stand/

Website/Plasma @ touch2929

Mechanic: KTC Existing Revolving loan customers who have incremental interest and usage fee at least 50 baht get Cash Back up to 50%Cash Back up to 50% And 1,000 baht Cost-Saving Vouchers when registered every 100 number

Promotion period : 1 June – 20 September 2014Communication :Internal Media : The Stories, Statement envelop, Statement message, Website, Standee @ TouchE-newsletter

3030

3131

สินเชื่อพร้อมใช้สนเชอพรอมใชใช้ชีวติที่คณภมใิจใชชวตทคุณภมูใจ

3232

KTC PROUDKTC PROUDKTC PROUDKTC PROUD

Cash Cash CashCash Min PayMin Pay

WDWD ATM Touch

Cash Cash

WDWD 33%%

@Partners

Asset Asset

InstallInstallAsset Asset

I t ll tI t ll t

InstallmentInstallment

3636mmInstallInstallInstallmentInstallment MaxMax 3636mmInstallment

33

Not only cash cardBut also…

เบิกถอนเงินสดเพื่อชาํระค่าสินค้า

3434

Press Conference

July 8, 2014

35

Press Release

3636

TVC 30 & 60 sec

Strip ad Press ad 37

TVC 60 Sec

38

TVC 30 Sec

39

Name Title Email Telephone

1 Linda Chaisrisukumporn VP – Investor Relations [email protected] +66 2 828 5067

2 Burin Kanchanomai IR Officer [email protected] +66 2 828 5059

3 Piyada Eiamsopa IR Officer [email protected] +66 2 828 5317

4 Thitaya Dhewongraksa IR Officer [email protected] +66 2 828 5310

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