Kiwoom Securities Co., Ltd · KRX:039490
Kiwoom Securities — Q2 FY2008 Earnings Presentation
19 slides from Kiwoom Securities's earnings presentation, December 2008
Slide 1: Investor Relations FY2008 Q2
Investor Relations FY2008 Q2 Kiwoom Securities Co., Ltd. “No. No. 1 Securities Broker in Korea” Korea 1
Slide 2: Disclaimer
Disclaimer 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
Slide 3: Company Overview
Company Overview ◈ Kiwoom Securities Co Co., Ltd Ltd. provides online-based full securities brokerage service with its focus on online brokerage. ◈ Kiwoom has continued to grow at a remarkable pace since its establishment in January 2000. Kiwoom is currently the market leader in both total and ret
Slide 4: Company Profile
Company Profile Establishment January 2000 CEO C.E.O. M Ki Mr. Kim, Bongsoo B Employees 340 (as of end-Sep 08) Listing KOSDAQ-listed in April 2004 Shareholder’s Equity KRW 367.9 bil (as of end-Sep 08) Outstanding Shares 16 216 230 Shares (as of end-Sep 16,216,230 end Sep 08) Shareholder Structure
Slide 5: "No.1" Securities Broker in Korea
“No.1” Securities Broker in Korea 9 Online-based No brick-and-mortar branch 9 Deep Discount Low brokerage commission rate 9 Market Leader Highest brokerage market share (KRW bil) Net Revenue Breakdown (KRW bil) Operating Profit vs KOSPI Growth Rate 60 40 40% Others Interest 50 30 30% Brokerage Com
Slide 6: Continuous and Unbeatable Market Expansion
Continuous and Unbeatable Market Expansion First Customer “No.1” No.1 Efficient Mover Oriented Securities HTS Advantage Approach Broker Market Share in Total Brokerage Sector Market Share in Online Brokerage Sector 12% 25% 11.21% 22.06% Kiwoom Others Kiwoom Others 10% 20% 8% 15% 6% 10% 5.32% 4% 5%
Slide 7: Higher the Market Share, Larger the Customer Base
Higher the Market Share, Larger the Customer Base •Competitive • Online Steady High Deep p Commission Consulting Growth of Increase of Highest g Q lit Quality C ti Continuous Discount Rate • Voice-of- Customer Customer Market Customer M/S Growth Broker •Strong Brand Customer Base Asset and Share S
Slide 8: Technology Prowess
Technology Prowess 9 User-friendly & Diverse Trading Tools: HTS, WTS, Web, Mobile and Instant Messenger 9 Effectiveness: Powerful yet easy and speedy-designed for active traders 9 Compatibility: Low maintenance cost and flexible upgrades supported by powerful IT parent Kiwoom Order System Structur
Slide 9: Interest: Veiled Source of Revenue
Interest: Veiled Source of Revenue 9 Interest Revenue generated from; Interest from Interest • Customer Cash Deposits Customer Loan ↓ Rate & Cash deposits ↑ • Customers’ Loan 9 Interest Revenue is highly dependant on; Interest from Customers’ Loan ↑ Interest • Balance of Customers Customers’ Loan
Slide 10: Expansion of Business Scope
Expansion of Business Scope ((KRW mil)) Revenue of Fixed-income 4,000 3,500 Fixed-income Proprietary Brokerage Trading 3,000 2,500 2,000 Overseas & Cross-border Domestic Brokerage g 1,500 Derivatives 1,000 Brokerage 500 Online Fund FX Margin Sales 0 Trading FY06 Q2 Q3 Q4 FY07 Q2 Q3 Q4 FY08 Q2 (KRW
Slide 11: Businesses with Potential Growth
Businesses with Potential Growth Cross-Border Brokerage Service Map Outbound Cross-Border Brokerage 9 Retail-focused outbound trading service of foreign exchange-listed exchange listed stocks 9 First and only consolidated HTS for domestic and ♣ ★ ★ cross-border trading ★ 9 Day-trading ay ad g o
Slide 12: New Business Opportunities
New Business Opportunities Capital Markets Consolidation (CMC) Act (effective from Feb 2009) Licenses brokers to engage in wide range of financial products and services Capital Markets Consolidation Act Wide Brokerage Services Domestic Derivatives Foreign Derivatives FX Margin Trading Vast ran
Slide 13: Appendix 1: Balance Sheet
Appendix 1: Balance Sheet ((KRW mil)) ((KRW mil)) FY08 1H FY07 FY06 FY05 FY04 FY03 Total Assets 2,316,872 1,308,436 Total Assets 1,090,247 833,019 492,012 318,203 639,954 I. Current Assets 1,042,578 787,501 457,995 295,419 1. Cash & Deposits 833,758 71,521 1.Cash and financial Inst. 56,388 40,075 49
Slide 14: Appendix 2-1: Annual Income Statement
Appendix 2-1: Annual Income Statement (KRW mil) FY08 1H FY07 FY06 FY05 FY04 FY03 Net Revenue * 80, 579 207,897 123,750 115,340 53,773 50,025 Brokerage Commissions 32 799 32,799 91 357 91,357 50 621 50,621 57 457 57,457 28 021 28,021 29 517 29,517 Interest Revenue 35,950 69,763 40,463 35,749 15,054 1
Slide 15: Appendix 2-2: Quarterly Income Statement
Appendix 2-2: Quarterly Income Statement ((KRW mil)) Q2 FY08 Q4 Q3 Q2 FY07 Q4 Q3 Q2 FY06 Net Revenue * 38,410 42,169 45,169 56,536 53,174 53,017 33,952 30,320 28,403 31,075 Brokerage Commissions 16,682 16,117 21,273 27,248 22,090 20,745 14,173 11,882 11,298 13,269 Interest Revenue 17,160 18,790 17,0
Slide 16: Appendix 3: Market Data
Appendix 3: Market Data (KRW tril) t il) Trading Value in Stock Market (KRW tril) t il) Market Trading On/Off line (%) Investor Breakdown (%) Value (in KRW tril) 300 12 [Source: KRX] Daily Domestic Total Online Offline Individuals Foreigners Total Trading Value Average Institutions 250 10 Daily Aver
Slide 17: Appendix 4: Market Share Data
Appendix 4: Market Share Data KIWOOM KIWOOM Total Brokerage Market Share Total Retail Online Total Retail Online 12% 11.21% FY03 5.71% 7.06% 8.69% FY06 8.11% 11.99% 14.70% 03-May 5.54% 6.97% 8.68% 06-May 7.83% 12.61% 14.92% 10% 03-Jun 5.49% 6.94% 8.75% 06-Jun 7.47% 13.31% 15.57% 03-Jul 5.63% 7.11% 8
Slide 18: Appendix 5: Customer-related Data
Appendix 5: Customer-related Data (KRW bil) Customer Cash Deposits 900 Customer Customers' Collateral Loan (KRW bil) Customer No. of 800 Assets Cash Deposit Accounts Short-term Long-term Collateral (KRW bil) (KRW bil) Margin Loan Margin Loan Loan 700 FY03 823 133 700 133,700 32 211 600 Q2 829 144,33
Slide 19: IR Contacts
& IR Contacts H.Y. Lee, General Manager / Head of IR Jason Kwan Min / IR Associate hylee64@kiwoom.com +82-2-3787-5209 jkmin@kiwoom.com +82-2-3787-4711