Teaser Memorandum

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Teaser Memorandum Teaser Memorandum The First Half of 2017 Investment Opportunities In Korea Table of Contents Important Notice ………………………………… 1 Key Summary ………………………………… 2 Expected Method of Investment Promotion …………………………… 3 Business Plan ………………………………… 4 Business Introduct ………………………………… 5 License ………………………………… 11 Capacity ………………………………… 12 Market ………………………………… 13 Financial Figures ………………………………… 14 Key Summary Private & Confidential Investment Highlights RBW is a K-POP (Hallyu) contents production company founded by producer/songwriter Kim Do Hoon, Kim Jin Woo, and Hwang Sung Jin, who have produced numerous K-POP artists such as CNBLUE, Whee-sung, Park Shin Hye, GEEKS, 4MINUTE etc. Based on the “RBW Artist Incubating System’, the company researches and provides various K-POP related products such as OEM Artist & Music Production (Domestic/Overseas), Exclusive Artist Production (MAMAMOO, Basick, Yangpa etc.), Overseas Broadcasting Program Planning & Production (New concept music game show/Format name: RE:BIRTH), and K-POP Educational Training Program. With its business ability, RBW is currently making a collaboration with various domestic and overseas companies, including POSCO, NHN, Human Resources Development Service of Korea, Ministry of Labor & Employment, and KOTRA. • Business with RBW’s Unique Artist Incubating •Affiliation Relationship with International Key Factors System Companies Description • With analyzing the artists’ potentials and market trend, every stage for training and debuting artists (casting, training, producing, and album production) is efficiently processed under this system. Pictures Company Profiles Category Description Establishment Date 2013. 8. 26 Revenue 12 Billion Won (12 Million $) (2016) Website www.rbbridge.com Current Shareholder C.E.O. Kim Jin Woo 29.2%, C.E.O. Kim Do Hoon 29.2%, Institutional Investment 31.7%, Executives and Staff Composition 5.6%, Etc. 4.3% Head Office B1F Starhills, Janghan-ro 20-gil, Dongdaemun-gu, Seoul Number of 55 Employees History 2010. 03 Rainbowbridge Agency, Inc. Incorporation (CEO, Kim Jin Woo) 2012. 03 WA Entertainment Inc. Incorporation (CEO, Kim Do Hoon) 2014. 01 Overseas Broadcasting Program format (Re:Birth) copyright registration (KOREA COPYRIGHT COMMISSION) 2014. 03 Venture Business Certification (No. 20140103411) 2014. 04 Laboratory affiliated with the Company (Media & Contents Lab) Certificate (Ministry of Science, No. 2014111725) 2014. 10 Investment from KTB Network Project (Re:Birth Project, 1 Billion KRW) 2015. 02 Merger between WA Ent., Inc. and Rainbowbridge Agency, Inc. (Transfer of Rights) 2015. 02 Change of name from Joint Corporation Rainbowbridge Agency, Inc. -> RBW, Inc. (Co-CEO Kim Jin Woo, Kim Do Hoon). 2nd paid-in capital increase (Capital: 350 million KRW ->490 million KRW) 2015. 07 Investment of 7 billion KRW from KTB Network, Korean Investment Partners, Posco Venture, NHN (Capital: 490 million KRW-> 710 million KRW) 2015. 09 V-App Vietnam PR-Marketing Agency contract with Naver Corporation 2016. 01 Selected as an operating institution for the 2016 Youth-employment academy ‘Entertainment-business Talent Training Program’, (by the Ministry of Employment and Labor, Human Resources Development Service) 2016. 06 Selected as ‘2016 Excellent Venture Company by Korea Venture Business Association 2 Expected Method of Investment attraction Private & Confidential Investment Requirement Method of Investment –RCPS or Common Stocks that worth about 10 billion Won. Purpose of Using Invested Fund – Establishment of a subsidiary company in Japan and extending the business field for various types of business and global expansion Category Description Method of Investment Common Stock or RCPS The amount of fund comes from 10 Billion Won (Approx.) Investment Attraction Investment Location All Area of Japan - The entry of RBW Artists in global market and Japan Artists in Korean market / Establishment of a subsidiary Purpose of Using company in Japan for expansion of OEM/ODM Education business Invested Fund - Extending the company’s business to various global markets, including South-East Asia, China-related nations, Vietnam, Europe, and Mid/North America, with Japan co-investors. Customers Various Asian countries, including China, Taiwan, Hong-Kong, Vietnam, Japan Actual Exports Approximately 20% of Total Sales USD 1.5 Vietnam, Million Japan & Etc USD 10 Million 2016's export record 1.5 million $ exports to International customers Vietnam, Japan, China, making connections with and Indonesia internal partner companies and advancing abroad by establishing Investment Plan Vietnam branch company planning the global expansion with co-investors in Japan by establishing the branch office with investments funds. 3 Business Plan Private & Confidential Categories of Business Plan Categories Description Developing the business that produces OEM Artists and contents with making a connection Artist Incubating with overseas companies (BtoB/BtoC) System Expected Sales: 2 billion Won / year Be able to dominate the market, because of absence of strong competitors Production and Developing the business that produces and plans the K-POP artists’ world tour Planning of More than ten businesses and 2 billion won sales per year, are expected Concerts/Performances Diversification of business and creating stable revenue Developing BtoC products that attract K-POP fans with its popularity and high accessibility. K-POP travel Package Developing contents that utilize Korea and Japan’s geographical proximity and active cultural communication between them Increasing the company’s brand value and popularity. Forecasting Financial Figures (Million Won) Categories 2016 2017 2018 Sales 10,623 15,934 18,165 Sales Cost - - - (The rate of Sales Cost) (%) - - - Gross Margin 10,623 15,934 18,165 Selling and Administrative 9,964 14,810 16,668 Expenses depreciation cost 348 464 499 Operating Profit 658 1,124 1,497 The Rate of Operating Profits 6.19% 7.05% 8.24% (%) Net Profit During the Term 881 1,293 1,672 R&D NA NA NA R&D compared to Sales NA NA NA Valuation (Late 2018) (Million Won) Categories Description The Estimated Net Profit During the Term 4,500 Equity Value (Late 2018) 135,000 Equity Value The Estimated Relative Value (Late 2018) 4 Business Introduction Private & Confidential RBW Artist Incubating System / RAISe ‘RBW Artists Incubating System (RAISe)’ is RBW. inc.’s unique production system that manages the artists effectively. With analyzing the artists’ potentials and market trend, every stage for training and debuting artists (casting, training, producing, and album production) is efficiently processed under this system. 01 02 03 04 05 CASTING TRAINING PRODUCING PRODUCTION (MV, 안무, DEBUT 의상) Special producer’s Various training Music production Establishing the special Artist Debut evaluation and activities (Dance, Vocal, specialized for artists’ styles concepts for each artist Acting as a proxy in selection of would- Stage) for improving Includes composing lyrics, Dance Production, advertising and marketing be artists artists’ abilities arranging, mixing & Supporting filming MVs afterward mastering Process of OEM Artist Production Setting the scope Designating Sending the Requesting Progress of of business and the staff and Scheduling weekly and Artist Debut Production production estimating producers monthly reports Main Business ①-1 OEM Artist & Music Production (B2B) Development of music and artist with the request of agencies (Domestic/Overseas) RBW offers customized production agency services that fit the conditions and needs of customers, from artist casting, training, music producing, and style consulting to album production. With the production agency service, clients can minimize the cost for human and material resources to establish an entertainment company. In addition, the possibility of success in producing artists gets bigger by applying RBW’s effective training system. OEM Artists and Music Productions (Oversea) LYN SEVENSENSE S.I.N.G XL Stage남단 TRAINING, TRAINING TRAINING, TRAINING, TRAINING MUSIC MUSIC MUSIC - PRODUCING, - PRODUCING - PRODUCING PRODUCTION FRIDAY CODE-V SHU-I S.O.S S4 TRAINING CASTING, MUSIC CASTING, CASTING, - PRODUCTION TRAINING, TRAINING, TRAINING, MUSIC MUSIC MUSIC - PRODUCING - PRODUCTION - PRODUCTION TUNG LEE LIME KELVIN NOO CHI PU PHUOC CASTING, CASTING, KHANH THINH TRAINING TRAINING, TRAINING, TRAINING TRAINING MUSIC MUSIC PRODUCING - PRODUCTION - PRODUCTION 5 Business Introduction Private & Confidential Main Business ①-2 OEM Artist & Music Production (B2B) OEM Artists Production (Domestic) Tiny- Gee VIXX- GAVY G ks LEO N J Casting, Training Agent Casting, Training Training GnG HOW Ent, KW Ent, Producti Grandline Jellyfish Good Fellas on Ent. Ent Ent OEM Music Production (Domestic) Standing Egg Lee Jung Phantom Park Se Young Yeonji Louie(Geeks), Lee Hyun Nam Gyuri & Kyul Lean On Me Tomorrow Without Phantom City Shall we dance Woman’s Age about Woo A Man and Woman’s First (Feat. Park Se Young) You 30 Your Face Meeting G.NA, Sanchez Park Shin Hye Soulstar Wheesung Cosmic Girl Brian Crayon Pop (SoYul) Beautiful Day My Dear Rainy Street Masterpiece of You Don't you worry 'bout me (feat. San- Pretty Woman (Feat. Y-Shirt E) Mario) Main Business - ② Exclusive Artist Planning & Production MAMAMOO With accumulated experiences in artist & music production, RBW handles planning, PR and management of artists under exclusive contracts. MAMAMOO is a girl group composed of 4 members, Solar, Moonbyul, Wheein and Hwasa. Peppermint . Rookie of the Year’ Award,
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