Yuanta Securities Korea Co., Ltd.Investor Relations

Disclaimer

This presentation material includes Yuanta Securities Korea’s earnings,

business goals, strategies, and corporate governance led by Yuanta

Financial Holdings.

Due to the predictable nature of markets, the content of this report may

differ from actual data.

Although we are not obliged to do so, the IR Team of Yuanta Securities

Korea will update this material every quarter.

Contents

Ⅰ. FY19 1Q Earnings Summary

Ⅱ. Profiles of Yuanta Securities and Yuanta Financial Holdings

Ⅲ. Vision & Mission

Ⅳ. Pro forma statement of financial conditions

4

FY19 1Q Earnings Summary

Earnings and Assets under management

Ⅰ

(Unit : ₩100mn)

Total assets under management

Note) Sum of prop trading assets and assets of retail and institutional investors

(As of end of period)

FY15 FY16 FY17 FY19 1Q

29.429.7

33.8

34.0

Retail assets under management

Note) Sum of assets of retail and institutional investors

(As of end of period)

FY15 FY16 FY17 FY19 1Q

25.024.4

25.326.8

(Unit : W 1tn)

Debt capital market (DCM) deals

eTECenc(manager)

W 15.0bn issued in total

Ma 2019

DAYOU(manager)

W 5.0bn issued in total

Ja 2019

5

Brokerage market share And Major IB deals

FY19 1Q Earnings SummaryⅠ

Equity brokerage On-line Off-line

FY15 2.70% 2.27% 0.43%

FY16 2.38% 2.02% 0.36%

FY17 2.20% 1.83% 0.37%

FY18 3Q 1.83% 1.55% 0.28%

Brokerage market share

Hanjin(manager)

W 100.0bn issued in total

Ja 2019

GScaltex(manager)

W 500.0bn issued in total

Ja 2019

ECOprobm(manager)

W 5.2bn issued in total

Fe 2019

Equity capital market (ECM) deals

FY15 FY16 FY17 FY19 1Q

6

Financial instrument sales

6

FY19 1Q Earnings SummaryⅠ

(Unit : W100mn)

Wrap account

(End of period)

Equity-type beneficiary certificate balance Commercial paper balance ELS,DLS,DLB issuance

Bondsales

Advisory

Total(End of period)

(Cumulative)

(Cumulative)

(End of period)

FY15 FY16 FY17 FY19 1Q

10,821 10,6248,539 8,200

FY15 FY16 FY17 FY19 1Q

34,007

28,801

19,871

33,830

FY15 FY16 FY17 FY19 1Q

9,307

15,008

19,477

6,582

10,660

5,670

12,172

2,578

FY15 FY16 FY17 FY19 1Q

7,880(187)

14,347(165)

26,402 (186)

31,774(114)

7

1,702

Jun 1962

Jan 1988

Dec 2001

Oct 2005

Mar 2010

Dec 2011 Merchant banking license expires

Oct 2014 Major shareholder changes

Renamed Yuanta Securities Korea

Company established

Listed on KOSPI

Merges with TY Hyundai Merchant Bank

Renamed Tongyang Securities

Merges with Tongyang Orion I&S

Merges with Tongyang Futures

ICR (KRW/foreign currencies): A+ (Stable)

(Korea Ratings: From Dec 2017 to present)

Ⅱ Profiles of Yuanta Securities Korea and Yuanta Financial Holdings

Timeline

Employees (end-Mar, 2019)

66

Branches (end-Mar, 2019)

Yuanta Securities Asia Financial Services

Limited (54.62%)

Major shareholder (end-Mar, 2019)

2 (Hong Kong, Cambodia)

Overseas subsidiaries

Shareholders’ equity

Assets

Credit rating

Market cap

(Unit : ₩ 1tn )

(Unit : ₩ 1tn )

(Unit : ₩ 100mn )

8.910.3

11.611.9

10,994 11,895

9,89710.327

FY15 FY16 FY17 FY18

FY15 FY16 FY17 FY18

0.80조0.73조

0.62조 0.62조

FY15 FY16 FY17 FY18

Taiwan’s largest financial group engaged

in securities, banking, venture capital,

and futures in NE Asia’s financial

centers, including Korea, China, Taiwan,

Hong Kong and London

8

Global credit rating (Fitch, as of Jul 22, 2016)

BBB+ | Yuanta Financial Holdings,

Yuanta Securities,

Hewlett-Packard, Hyundai Motor

Ⅱ Profiles of Yuanta Securities Korea and Yuanta Financial Holdings

Yuanta Financial Holdings

Yuanta

Securities

(100%)

Yuanta

Commercial

Bank

(100%)

Yuanta

Securities

Finance

(100%)

Yuanta

Futures

(68.65%)

Yuanta Life

(100%)

Yuanta Securities

Asia Financial Services

(100%)

Yuanta

Investment

Consulting

(Beijing)

(100%)

Yuanta

Securities

Hong Kong

(100%)

Yuanta

Asia

Investment

(100%)

Yuanta

Securities

(UK)

(100%)

Polaris

Investment

Management

Cayman

(100%)

Yuanta

Securities

Korea

(54.62%)

9

Taiwan’s largest financial group (as of FY2016) engaged in securities,

banking, venture capital, and futures in Taiwan, Hong Kong, and China, led

by Yuanta Securities Taiwan (about 155 branches, 5,000 employees) and

expanding to major Asian countries and Europe

Ⅱ Profiles of Yuanta Securities Korea and Yuanta Financial Holdings

10

Ⅱ Profiles of Yuanta Securities Korea and Yuanta Financial Holdings

11

VISION & MISSIONⅢ

Artificial intelligence system that analyses share price fluctuations and picks stocks either in the “Sunshine” or “Fog” section

12

IB의 주요 Deal RecordVISION & MISSION

tRadar 3.0

Ⅲ

12

티레이더 투자노트

티레이더 인공지능이 개별 종목의 최신정보부터

분석까지 제공하는 서비스

BigRadar

빅데이터 분석을 통해 시장의 투자심리를 분석하는 서비스

일반투자자 심리 분석 Social View와 전문가 의견 분석Analyst View로 구성

Artificial intelligence system that analyses share price fluctuations and picks stocks either in the “Sunshine” or “Fog” section

13

IB의 주요 Deal RecordVISION & MISSION

tRadar 3.0

Ⅲ

티레이더 Finder

티레이더가 제공하는 햇빛/안개 신호 등의 지표와 재무 등 기타지표를 활용하여

나만의 추천종목을 추출해 볼 수 있는 종목 검색 서비스

Artificial intelligence system that analyses share price fluctuations and picks stocks either in the “Sunshine” or “Fog” section

14

IB의 주요 Deal RecordVISION & MISSION

tRadar 3.0

Ⅲ

15

tRadar 3.0

Chance to profit from down market Provides stock-picking information

VISION & MISSION

Provides lists of market leading plays, demand

and supply dynamics, stocks with strong upside,

and various charts

Displays list of stocks to short or long

Ⅲ

16

tRadar 3.0

Provides information on SH-HK Stock Connect investmentProvides major market movements

VISION & MISSION

Spots major movements of institutional and foreign investors

regarding particular stocks

Lists stocks seeing massive net-selling by institutional or

foreign investors

Utilizes Yuanta’s Greater China network to

provide timely investment information including

which stocks to buy and when

Ⅲ

Provides stock and sector reports of Yuanta’s local analysts in

Greater China

Provides real-time market information based on close

collaboration with analysts on site

17

VISION & MISSION

We Know China

Differentiated China investment contentExpansive Greater China network

Publishes “China Daily”

Provides information on 300 major SH-HK Stock Connect plays

Ⅲ

18

VISION & MISSION

Guidebook on SH-HK Stock Connect

YSK was the first Korean securities firm to publish a guidebook on the SH-HK Stock Connect, using

the Shanghai, Hong Kong, and Taiwan network of Yuanta Financial Group.

Follow-up reports have been published on the top-100 plays covered in the guidebook.

The guidebook also provided comparisons with similar Korean plays.

Korean M/S: 26.1% (as of 3Q15)

No. of clients: 26,740 clients (2Q16)

Total balance: W140.7bn (2Q16)

SH-HK Stock Connect business at YSK

Ⅲ

19

VISION & MISSION

Guidebook on SZ-HK Stock Connect

It is SZ-HK Stock Connect made by around a hundred analyst part of research center in Shanghai, Hong Kong,

Taiwan and Korea. They worked in close co-operation with branch analyst’s own ability

This book is required reading about China investment consist of Top-100 SZ-HK Stock Connect plays, major

industry & company and Top-10 must-have plays

Ⅲ

CONTENTS

SZ-HK Stock Connect Top-10 must-have plays

Forecast of China stock market

Huge of China economy

SZ-HK Stock Connect Summary

SZ Exchange major industry & company

Top-100 SZ-HK Stock Connect plays

FAQ regarding Chinese market

20

Non face-to-face ID verification

Regain No. 1 status in CMA market Introduction of internet-primary banks

and rise of fintech

VISION & MISSION

Changing attitudes of financial consumers with advancing

IT and globalization of financial markets

No of accounts (as of Nov 11, 2016) : 15,757 accounts

• Clients: new 7,966, existing 7,791

• Accounts: brokerage 12,338, CMA 3,419

Key tasks and action plan

Develop and enhance non face-to-face (smart)

channel solution

Build non face-to-face sales environment

Systemize online customer management

The old Tongyang Securities led the CMA sector as of 2013

Clients: 4mn clients, CMA deposit balance: around W5bn

Ⅲ

21

Selected as SME-focused securities company (May 2018)

Utilize national network of 71 branches Focus on facilitating crowd funding

market growth

VISION & MISSION

Signed MOU

Search for promising startups and arrange meetings

IPO services (also covering KONEX)

Brokerage service for unlisted stocks and direct-

investment

Signed MOU

Search for promising startups and arrange meetings

IPO services (also covering KONEX)

Brokerage service for unlisted stocks and direct-investment

Signed MOU with Yonsei Enterprise Support Foundation

YSK IB

YSK Compliance team (YSK)

Regional RM centers (YSK)

SMEs, startup companies

Request funding arrangement Establish sales network

Review potential deals and arrange

deals

Reward

Research Center

Provides training program

Creative Economy Innovation

Centers in 18 regions

Ⅲ

22

Selected as SME-focused securities company (May 2018)

YSK searches for promising Korean startups and introduces them to investors

VISION & MISSION

Introduce promising Korean startups and prepare introductory documents

Select final candidates

Review of direct/indirect investment

Financial support including offices and accommodation

Communication

Secure investors utilizing Yuanta network

Support for handling legal and administrative issues

Startup support centers of regional governments in China

Korean startup

company

Local Chinese incubator

Ⅲ

FY19 1Q FY18 FY17 FY16 FY15

Asset

Ⅰ. Cash and deposits 1,613,047,223 1,390,050,620 1,484,413,354 1,333,476,766 1,315,130,488

Ⅱ. Financial asset designated at fair value through P/L

7,216,725,588 7,278,203,351 6,911,185,922 6,135,704,072 5,058,924,623

Ⅲ. Available for sale securities 195,132,415 199,393,679 301,188,003 299,457,838 231,672,439

Ⅳ. Loans 2,498,601,006 2,412,264,205 2,182,776,535 1,903,349,284 1,616,366,500

Ⅴ. Tangible assets 150,438,064 62,984,771 64,335,803 66,983,466 68,116,475

Ⅵ. Other 651,539,173 324,386,659 486,687,947 365,555,425 371,715,839

Total 12,521,562,171 11,861,797,105 11,651,173,407 10,363,054,944 8,923,245,082

Liabilities

Ⅰ. Deposits 2,657,400,577 2,554,079,404 2,788,214,967 2,735,551,683 2,763,919,642

Ⅱ. Financial liabilities designated at fair value through P/L

2,161,840,035 2,049,814,297 1,907,149,701 1,333,353.673 1,116,695,777

Ⅲ. Borrowings and debentures 5,607,047,260 5,442,036,146 5,260,645,267 4,942,641,964 3,728,884,401

Ⅳ. Other 895,745,983 626,328,896 595,733,772 318,790,276 324,038,867

Total liabilities 11,322,033,855 10,672,258,743 10,551,743,707 9,330,337,596 7,933,538,687

Total equity 1,199,528,316 1,189,538,362 1,099,429,700 1,032,717,348 989,706,395

Total liabilities and equity 12,521,562,171 11,861,797,105 11,651,173,407 10,363,054,944 8,923,245,082

23

Balance sheet (consolidated)Ⅳ

FY19 1Q FY18 FY17 FY16 FY15

Operating revenue 725,663,896 2,037,181,455 1,928,025,083 1,460,456,185 1,217,436,226

Ⅰ. Fee income 62,243,884 269,556,006 226,570,758 201,425,765 249,275,708

Ⅱ. Gain on valuation (sales) of financial products 554,289,720 1,385,527,314 1,395,266,160 977,692,012 702,512,270

Ⅲ. Interest income 56,915,683 212,175,359 185,179,634 164,248,628 163,997,983

Ⅳ. Gain on valuation (sales) of loans - 440,572 286,858 9,839,417 471,924

Ⅴ. Gain on FX transactions 23,168,298 61,623,262 41,639,903 42,977,600 36,412,269

Ⅵ. Other 24,407,684 107,858,942 79,081,770 64,272,763 64,766,072

Operating expense 701,764,577 1,946,033,709 1,869,573,197 1,447,286,784 1,195,425,793

Ⅰ. Fee expense 6,404,532 28,374,926 27,186,554 20,353,476 18,425,603

Ⅱ. Loss on valuation (sales) of financial products 539,017,599 1,318,977,952 1,308,592,252 963,631,217 697,434,613

Ⅲ. Interest expense 33,985,363 116,757,832 99,356,764 105,612,676 110,025,583

Ⅳ. Loss on valuation (sales) of loans 2,224,666 6,696,743 177,167 - 10,339,734

Ⅴ. Loss on FX transactions 20,963,180 56,635,437 83,319,817 40,289,921 27,826,334

Ⅵ. SG&A 80,162,204 333,661,674 301,483,506 292,352,231 323,654,470

Ⅶ. Other 19,007,033 84,929,145 49,457,137 25,047,263 7,719,456

Operating profit 23,899,319 91,147,746 58,451,886 13,169,401 22,010,433

Non-operating income 4,247,373 30,517,541 22,305,669 27,659,558 29,600,820

Net profit 23,037,615 104,712,022 70,682,652 31,307,655 58,138,792

24

Income statement (consolidated)Ⅳ

25

Thank You