Post on 04-May-2022
Investor Relations 2021
www.hyundaiezwel.com
Q1 2021
Disclaimer
This document is designed to help investors better understand Hyundai Ezwel Co., Ltd. (hereinafter referred to as the "Company").
The Company has not taken an independent verification of the information contained herein
and does not offer any warranty or guarantee as to the fairness, accuracy or completeness of
the information and opinions provided below.
Neither the Company nor its affiliates and employees will be held liable for any civil, criminal
or administrative action arising out of or in connection with this document and any information contained herein,
whether by intentional conduct or negligence.
This document contains information that reflects the forecast of the Company (hereinafter referred to as the “forecast”).
The forecast is based on the given assumptions about the future that the company cannot control,
and includes the risks and uncertainties that may result in the consequences
at variance with those expected by the associated forecast.
The Company is not under any obligation to update any changes to the information provided in relation to the forecast.
Please note that all or part of this document may not be separated, reproduced, or redistributed in any way whatsoever,
and any unauthorized distribution and reproduction of the modified document without the prior approval of the Company
may be subject to legal action.
EZWEL sets the benefit
standards of Korea
Chapter 1
01 About the Company
02 History
In March, 2021, Hyundai Ezwel was incorporated into Hyundai Department Store Group as its affiliate,a company ranked 21st (18 trillion won) on the list of the largest companies by asset
30th by net profit during the term (256 billion won), and 15th in terms of the debt ratio (47%),and the Company prides itself on being the No.1 benefit platform provider in Korea.
Chapter 1
CompanyName
ㆍHyundai EZWEL Co., Ltd.
CEO ㆍYoungSoon Chang
Founded on ㆍJanuary 14, 2003
Capital ㆍ11.9 billion Korean won
Employees ㆍ337
MajorBusinesses
ㆍCorporate benefit servicesand public benefit services
Location ㆍ43 Digital-ro 34-gil, Guro-gu, Seoul
LargestShareholder
ㆍHyundai Green Food(ownership percentage: 28.26%) ※ Transaction volume & operating income (as of 2020)
Operating
Income
13.2 billion
Platform User
2million
Key Metrics
Benefit Point
Transaction
Volume
1trillion
541.1 billion
4
01 About Company
2013 2014 2015 2016 2017 2018 2019 2020 2021 -
Transaction volume (million won)
203,018
242,084
269,445 269,310
299,408
376,047
457,932
541078
Listed on KOSDAQ
Surpassed1,000 customers
Order from KT Group
> Surpassed 1,700 customers> Pioneered into the public benefit service
> Operating profitexceeded 10 billion won
02 History
5
Chapter 1
Incorporated into HyundaiDepartment Store Group
Transaction volume (million won)
Since the Company was listed on KOSDAQ in 2013,its benefit business has continued to display a solid growth and launch new businesses to secure a new growth engine.
EZWEL designs customer happiness
with innovation in value
Chapter 2
01 Market Status
02 Business Structure
03 Platform Composition and Features
04 Platform Upgrade Plan
05 Strength
Hyundai Ezwel is market leader that dominates 50% of the corporate benefit market.
01 Market Status
7
Chapter 2
90%
25%
10%
75%
Public agency
General enterprise
Adopted Not adopted
→ The Company targets general enterprises with more than 200
employees and 25% have so far adopted the points,
displaying high growth potential
→ Since the benefit system is important in the HR strategy,
companies are projected to continue adopting benefit points
that result in high employee satisfaction.
General enterprise
Public agency
Adopted Not adopted
The Corporate Welfare Platform targets companies operating an employee benefit system,and the platform’s main source of revenue arises from the sales commission
created from the products and services traded on the platform.
02 Business Structure
Category Description
Revenue
Structure
ㆍ Sales commission
- 5-20% of the sales price
Service
Scale
ㆍ Customers: 1,700
ㆍ Members: 2 million
ㆍ Benefit point: 1 trillion won
Welfare
Content
ㆍ 220 contents in operation on health, travel,
culture, personal development, hobbies,
shopping and more
ㆍ CPs (contents providers): 5,000
Platform
User
ㆍ Composition ratio by customer type
- Central government official: 15%
- Local government official: 22%
- Public corporation employees: 15%
- General enterprise employees: 48%
Welfare system
operation
Welfarecontent
Welfare budget
spending
Welfare budgetmanagement
8
Chapter 2
03 Platform Composition and Features (1)
Customized buildingon account of customer-specific system features
(The system’s flexible structure to respond to the corporate needs)
Uniform processingfrom the allocation of benefit points to refund
(Various benefit resources are availablefor conversion into or operation as points)
Creating the largest content ecosystemexclusive for B2B in Korea
(health/personal development/culture/leisure/travel/shopping/life)
Combining offline services
(on-site payment with benefit points + membership network)
Pointsettlement
Pointallocation
Easy payment(Ezwel PAY)
Welfarecard
refund
Welfaremall
Membership(EZ members)
Administratorsystem
Usersystem
Welfareplatform
Welfarebudget
spending
Welfarecontent
[Welfare system]operation
Welfare budgetmanagement
9
Chapter 2
The benefit platform is tailored to the selective benefit system (benefit points)and it allows the integrated management of the corporate benefit system. operated by enterprises.
03 Platform Composition and Features (2)
10
Chapter 2
The platform is custom built to be tailored to the specific needs of each customer,and it is available on desktop and mobile.
Operating income (4 years)
11
30
35
40
45
50
55
60
65
0
20000
40000
60000
80000
100000
2017 2018 2019 2020
47%
42%38%
37%
Increase in Sales VSDecrease in the ratio of SG&A
Chapter 2
05 Strength (1)
→ Performance rises regardless of economic conditions(not sensitive to business cycles)
→ Allocated points must be spent in the same year
→ Platform relies less on specific customers
→ Selling, general, and administrative expenses rise toa limited extent compared to the increase in sales.
→ Profitability has continued to improve since 2017
→ Operating income ratio is on the rise.
: 11.3% in 2018 > 12.6% in 2019 > 15.1% in 2020
The benefit points ensure a stable performance anddue to the nature of the platform business, the increase in costs is limited
2017 2018 2019 2020
4.3 billion
13.3 billion
9.8 billion
7.8 billion
54.2 billion
67.9 billion
76.4 billion
87.3 billion
Cust
omer
s
DB
Life cycle
Advertising
Membership
Familymembers
Finance
Funeralservice
Life
• Paid membership service
• Turning the family members of the customers into new customers
• Childcare/marriage/home-buying/years after retirement Loan and insurance sales
• Customer and family funeral service
• Advertising revenue on the benefit platform
12
• Home-moving/wedding/consulting services
→ Secure top-ranking office employees with good employment stabilityand purchasing power as customers
→ Create a variety of added values in addition to the sales based onthe benefit points
→ The benefit platform is designed to be customizedwith small resources when extending into other areas
→ Enables rapid platform expansion.
Universal
Platform
Efficient
Platform
Affordable
Platform
Chapter 2
05 Strength (2)
Our top-ranking customers allow you to earn extra revenue andthe benefit platform is structured to facilitate your business expansion.
EZWEL continues to grow based on
its solid financial structure
Chapter 3
01 Performance in 1Q 2021
02 Summary Financial Statement (Annual)
03 Summary Financial Statement (Quarterly)
04 Investment Highlights
14
Chapter 4
01 Performance in 1Q 2021
1Q FY2021
1Q 2020 1Q 2021
Sales
55
71
`20.1Q `21.1Q
영업이익
4.5% 28.2%
1Q FY2021
53
120
`20.1Q `21.1Q
경상이익
39
103
`20.1Q `21.1Q
당기순이익
125.3%161.9%
(1) Sales: 27.1 billion won (4.5% YOY growth)
- An increase in new customers who adopt the benefit points
and the rise of online use (31% in 2020 → 33% in 2021)
and the increase in the amount of personal payment due to
products improvement (21.3 billion won in the first quarter
of 2020 → 28.8 billion won in 2021, 35% ↑)
have resulted the transaction volume on the benefit mall
to reach 182.1 billion won, a 17% rise from the previous year.
- Sales grew by 4.5% due to the low growth in the sales arising
from gift certificates
(2) Operating income: 7.1 billion (28.2% YOY growth)
- A rise in the operating income from due to a solid sales growth
and efficient execution of SG&A.
(3) Ordinary income: 12 billion (125.3% YOY growth)
- Reflects 5.51 billion won arising from the disposition of
the subsidiary and beneficiary certificates
Unit: KRW 100 million
Unit: KRW 100 million
259
271
Revenue OperatingIncome
OrdinaryIncome
Net Income
15
Category 2018 2019 2020 2021.1Q
Current Assets 46,763 55,405 116,049 129,637
Non-Current Assets 35,923 34,803 20,243 19,199
I. Total Assets 82,686 90,208 136,292 148,836
Current Liabilities 53,388 51,841 74,426 79,221
Non-Current Liabilities 1,220 1,992 157 519
Ⅱ. Total Liabilities 54,608 53,833 74,582 79,739
Capital Stock 5,037 5,496 11,873 11,873
Capital Surplus 9,603 16,278 19,864 18,233
Other CapitalComponents (6,136) (6,136) - -
Accumulated othercomprehensive income (437) (3,007) (2,388) (2,390)
Retained earnings 19,631 23,645 32,361 41,380
Ⅲ. Total ShareholdersEquity 28,078 36,375 61,710 148,836
Category 2018 2019 2020 2021.1Q
1 Sales 73,065 82,317 87,188 27,104
2 Gross Profit 35,500 40,636 43,471 14,843
3 SG&A 28,499 31,229 30,160 7,769
4 Operating Income 7,001 9,407 13,311 7,075
5 Ordinary Income 2,443 6,531 12,604 12,038
6 Net Income 1,688 4,691 7,854 10,325
Unit: Million won Unit: Million won
Chapter 4
01 Summary Financial Statement (Annual)
※ Financial statements published prior to 2021 are consolidated financial statements
16
Category
2020 2021
Q1 Q2 Q3 Q4 Annual Q1 Q2 Q3 Q4 Annual
1 Sales 25,929 20,591 22,725 17,941 87,188 27,104
2 Gross Profit(Margin)
13,541(52.2%)
12,536(60.9%)
10,134(44.6%)
7,259(40.5%)
43,471(49.9%)
14,843(54.8%)
3 SG&A(Margin)
8,024(30.9%)
9,324(45.3%)
8,732(38.4%)
4,080(22.7%)
30,160(34.6%)
7,769(28.7%)
4 Operating Income(Margin)
5,517(21.3%)
3,213(15.6%)
1,402(6.2%)
3,179(17.7%)
13,311(15.3%)
7,075(26.1%)
5 Ordinary Income(Margin)
5,342(20.6%)
3,024(14.7%)
754(3.3%)
3,483(19.4%)
12,604(14.5%)
12,038(44.4%)
6 Net Income(Margin)
3,942(15.2%)
2,112(10.3%)
314(1.4%)
1,486(8.3%)
7,854(9.0%)
10,325(38.1%)
Unit: Million won
Chapter 4
02 Summary Financial Statement (Quarterly)
17
Chapter 4
03 Investment Highlights
Continuously growing benefit points (No.1 in the industry)1
- Introducing the selective benefit system and increasing the amount as the benefit of employees has become increasingly more important in the corporate management
- Benefit points ordered: “900 billion in 2019 → 1 trillion in 2020
Increasing customer satisfaction with unique and differentiated benefits2
- Over 1.2 million products and content from more than 5,000 CPs- The competitive advantage of Hyundai Ezwel's unique benefit mall, “Rainbow Benefit”
(① lowest price policy for company N), ② lowest price guarantee, ③ free exchange, ④ free return, ⑤ compensation
for late delivery, ⑥ compensation for sold-out products, and ⑦ guarantee of genuine products)
Creating synergy with Hyundai Department Store Group for the second leap forward3
– Hyundai Department Store Group's introduction of the benefit points for its affiliatesand plans to obtain orders from all affiliates
– Selling highly reliable products and content, thus, enhancing the competitive edge of the benefit mall(Department/home shopping products, clothes and accessories of the Handsome, green Hyundai Green Food,the total interior products of Livart, etc.)
Improving the corporate value along with enhanced corporate governance and shareholder value 4
Synergy with Hyundai Department Store Group is expected to drivethe competitive edge of our products and content.
Thank you.
www.ezwel.com