BUSINESS BACKGROUND Hana Financial Group FinTech-focused capabilities, and A global financial network Ranks 80th among worldwide present in 24 countries, market leadership in Korea financial groups in tier 1 Capital (Smartphone banking, Digital wallet, with 153 branches worldwide Loyalty programs) 10 Europe & Middle East 23 America 120 Asia & Pacific Innovative and Globally-acclaimed Institution Innovation in technology awards Global banking innovation awards Global banking distribution and marketing innovation awards Celent model bank Best private bank award Best bank in korea Market Trends in Tourism & Payments The popularity of global payment methods through e-wallets is growing rapidly, and it is expected that by 2021, e-wallet use will be greater than the usage for credit cards, bank transfers and debit cards combined. International tourist arrivals increasing Cross-border payment on the rise In 2017, international tourism arrivals worldwide increased 7%, Cross-border payments will have a greater share of the total leading to a rise in overseas spending. payment volume by 2022, with an expected increase of 80%. 1400 8% 80% 1300 6% 1200 4% 1100 2015 2016 2017 2020 2012 2022 (Source: UNWTO Tourism highlights, 2017 ) (Source: Worldpay Global payments report, 2017) Global payment break down Loyalty program market E-wallets will lead the market with 46% of the global payment share. The global loyalty management industry is expected to grow at a *CAGR of 20.8% by 2023. The usage of loyalty points/rewards, coupons, and miles are increasingly considered a new form of digital currency. 23% 15% Others* 8% 13% 16% Debit Card 8000 17% CAGR Bank Transfer 20.8% E-wallet 18% 1.5 Times 46% eWallet Credit Card 29% 2000 51% 15% Credit Card (Unit : US$ Mil.) 2016 2021 2017 2022 (Source: Worldpay Global payments report, 2017) (Source: Loyalty Management Market, Allied market research, 2017) Hana Members In 2015, KEB Hana Bank launched its loyalty program APP, Hana Members, designed to manage all the various loyalty programs under the Hana Financial Group (HFG). Within this application, one Hana Money is equal to 1 Korean won. 13million+ members +Games: Earn Hana Money +Digital Financial Services : while playing games. Savings plan, Smart loans, ATM withdrawal, etc.. +Barcode Payment (Offline): Use Hana Money +Coupon Mall (Online) and to pay at our merchant promotions: Free and paid stores. coupons and promotions +Point Exchange: 24 partners +Hana Talk: Messenger app with transfer and gift money features. INTRODUCTION TO GLOBAL LOYALTY NETWORK About the Global Loyalty Network (GLN) Global Loyalty Network (GLN) is a cross-border platform that allows the use and exchange of digital assets* by connecting various loyalty programs in each country through a wide network of partners called the ‘Global Partnership Platform’. *Digital assets are defined as reward points, miles or coupons from airlines or retailers, as well as digital currencies backed by financial institutions. Worldwide Usage and China Global Alliance Partner GLN International § An enabler managing the GLN network § Connecting Local Partners worldwide § Planning and execution of core GLN Services Interoperability and Japan Korea Seamless Connection Partner GLN Partner International GLN Partner § GLN partnership opportunities are open to financial institutions, payment companies, retailers, loyalty program Digital Assets in providers, ICT Companies, and more. Multiple Currencies US Partner About GLN Services Online/Offline Remittance Asset Exchange Coupon Mall Payment Cross-border transfer of digital Worldwide interoperability of Online/offline payment at A wide range of global assets and conventional digital assets through the GLN worldwide GLN partner stores coupon service offered by currencies through a network of platform using customers preferred apps. GLN partners GLN partners Offline payment QRcode Prepaid card Barcode D Airline Country A Country B A 10 Mileage % % 50 B 15 % % 10 1,140 C 25 10 1,140 Online payment GLN Payment Gate Connecting to GLN Services • Customer may simply log in to their everyday App to use the GLN services. • Since the core platform would be developed by GLN International, GLN Partners would only need to cover the developments involved to connect to the GLN platform from their own app. Remittance Seamless linking to GLN Asset Exchange Connecting via API, SDKs Online/Offline Payment GLN Partner App Coupon Mall GLN Platform GLN Service Scenario GLN customers can experience integrated and seamless benefits regardless of their location and payment method. Remittance Top-up Customer Benefits Barcode Earn Point Enjoy Discounts QR code Easy Management of travel accommodation etc. GLN Service customer Access Prepaid card Payment Exchange Coupon mall.