Internet Taking stock of new service traffic
Daum Kakao: KakaoTaxi users are rapidly increasing Overweight (Maintain) Recently, Daum Kakao’s new ventures have been showing several positive indicators. Sector Update Since its release in March, the taxi-hailing app KakaoTaxi has seen increasing user traffic as well as steady session length and app launches, proving the service is taking hold. July 17, 2015 th Daum Kakao also rolled out KakaoTalk in-app services “KakaoTV” on June 16 and “Channel” and “#Search” on June 30 th , which can be viewed as portal services added Daewoo Securities CCCo.,Co., Ltd. onto the messaging platform (rather than the other way around).
[Internet/Game/Entertainment] These new services have yet to generate a meaningful increase in KakaoTalk’s traffic.
Chang-kwean Kim However, traffic could rise sharply in 2H when the company plans to launch aggressive +822-768-4321 marketing efforts, such as content ramp-up and app update promotions. [email protected] Some Kakao services, on the other hand, have lately be en losing traction. Most notably, Jeong-yeob Park Kakao’s game traffic has been declining at an accelerating rate following the release of +822-768-4124 [email protected] Netmarble’s “Raven with NAVER” in March.
NAVER: NAVER Pay users surging; LINE@ & LINE Music attracting new users
As illustrated in the chart below, NAVER Pay has seen a significant rise in unique visitors
since its debut in June, increasing expectations on the mobile payment market. A number of NAVER’s mobile ad indicators are also trending higher.
Meanwhile, LINE Music and LINE@ are set to introduce paid subscriptions on August 9 th and September 1 st , respectively. Judging by their recent account numbers, we believe the two services have strong potential to become a meaningful source of income for LINE from 3Q.
Strong traffic in new services triggers stock rally NAVER and Daum Kakao, Korea’s two largest internet companies , are exhibiting strong traffic in their newest services (KakaoTaxi and NAVER Pay). While it will take some time for these positive indicator s to translate into earnings momentum, we believe stocks will begin to price in bullish expectations.
In 2H, traffic data related to new services and monetization models will likely be one of the biggest determinants of share prices.
Weekly unique visitors to NAVER PayPay’’’’ss website
(persons) 500,000 http://pay.naver.com https://admin.checkout.naver.com http://admin.pay.naver.com 400,000
300,000
200,000
100,000
0 10/14 12/14 2/15 4/15 6/15
Source: KoreanClick, KDB Daewoo Securities
Analysts who prepared this report are registered as research analysts in Korea but not in any other jurisdiction, including t he U.S. PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES & DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT.
July 17, 2015 Internet
Daum Kakao
New KakaoTalk in-app services: #Search, Channel, and KakaoTV
Figure 111.1. #Search, providing an inin----appapp search function (((released(released on June 30 ththth )))
Source: Company data, KDB Daewoo Securities Research
Figure 222.2. Channel, an ininin-in ---appapp portal content viewer ((releasedreleased on June 30 ththth )))
Source: Company data, KDB Daewoo Securities Research
Figure 333.3. KakaoKakaoTVTVTVTV,, a service for video streaming/sharing (released on June 16 ththth )))
Source: Company data, KDB Daewoo Securities Research
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July 17, 2015 Internet
Figure 444.4. Weekly unique visitors to KakaoTalk and NAVER Figure 555.5. WWWeeklyWeekly unique visitorsvisitors:::: KakaoTalk vs. NAVER
(mn persons) (mn persons) (%) 29 KakaoTalk (L) 19 66 NAVER/KakaoTalk NAVER (R)
64 26 16
62
23 13 60
20 10 58 1/14 4/14 7/14 10/14 1/15 4/15 7/15 1/14 4/14 7/14 10/14 1/15 4/15 7/15 Source: KoreanClick, KDB Daewoo Securities Research Source: KoreanClick, KDB Daewoo Securities Research
Figure 666.6. Weekly avg. time spent on KakaoTalk and NAVER Figure 777.7. WWWeeklyWeekly avg. time spentspent:: KakaoTalk vs. NAVER
(minutes) (%) 270 KakaoTalk NAVER 100 NAVER/KakaoTalk
240 90
210 80
180 70
150 60 1/14 4/14 7/14 10/14 1/15 4/15 7/15 1/14 4/14 7/14 10/14 1/15 4/15 7/15
Source: KoreanClick, KDB Daewoo Securities Research Source: KoreanClick, KDB Daewoo Securities Research
Figure 888.8. Avg. number of days per week on which KakaoTalk Figure 999.9. Avg. number of days per week: KakaoTalk vs. NAVER and NAVER are visited
(days) (%) 7 KakaoTalk NAVER 90 NAVER/KakaoTalk
87 6
84
5 81
4 78 1/14 4/14 7/14 10/14 1/15 4/15 7/15 1/14 4/14 7/14 10/14 1/15 4/15 7/15 Source: KoreanClick, KDB Daewoo Securities Research Source: KoreanClick, KDB Daewoo Securities Research
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July 17, 2015 Internet
Figure 101010.10 . Monthly unique visitors for Kakao services
(mn persons) 35 KakaoTalk KakaoStory 30 Other Kakao services
25
20
Kakao Pick 15 Kakao Group Kakao Topic Kakao Music 10 Kakao Style
5 Kakao Page Kakao Album Kakao Agit 0 1/12 7/12 1/13 7/13 1/14 7/14 1/15
Note: Other services include Kakao Group/Music/Pick/Topic/Home/Page/Agit/Album/Style Source: KoreanClick, KDB Daewoo Securities Research
Figure 111111.11 . Total usage timetimetime by month for Kakao services
(bn minutes) 35 KakaoTalk KakaoStory 30 Other Kakao services
25
20
Kakao Pick 15 Kakao Group Kakao Music Kakao Topic 10 Kakao Style Kakao Album Kakao Agit 5 Kakao Page
0 1/12 7/12 1/13 7/13 1/14 7/14 1/15
Note: Other services include Kakao Group/Music/Pick/Topic/Home/Page/Agit/Album/Style Source: KoreanClick, KDB Daewoo Securities Research
Figure 121212.12 . Avg. usage timetimetime by month for Kakao services
(minutes) 1,400 KakaoTalk Rapid growth of KakaoStory Other Kakao services (Kakao Home excluded) Kakao Page 1,200 and Kakao Agit
1,000
800 Kakao Group Kakao Pick Kakao Music Kakao Topic 600 Kakao Style Kakao Album Kakao Agit 400 Kakao Page
200
0 1/12 7/12 1/13 7/13 1/14 7/14 1/15
Note: Other services include Kakao Group/Music/Pick/Topic/Page/Agit/Album/Style; Kakao Home is excluded, as the way usage time for the app is calculated makes it unsuitable for analyzing avg. usage time Source: KoreanClick, KDB Daewoo Securities Research
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July 17, 2015 Internet
KakaoTaxi traffic growing solidly
Figure 131313.13 . KakaoTaxi app
Source: Company data, KDB Daewoo Securities Research
Figure 141414.14 . Weekly unique visitors to Figure 151515.15 . AAAvg.Avg. usage time per week for Figure 161616.16 . AAAvg.Avg. number of runrunss per
KakaoTaxi app for drivers KakaoTaxi app for drivers week for KakaoTaxi app for drivers
('000 persons) (minutes) (times) 100 Weekly unique visitors 800 Average usage time 180 Average number of runs
150 80 600 120 60 400 90 40 60 200 20 30
0 0 0 3/15 4/15 5/15 6/15 7/15 3/15 4/15 5/15 6/15 7/15 3/15 4/15 5/15 6/15 7/15
Source: KoreanClick, KDB Daewoo Securities Source: KoreanClick, KDB Daewoo Securities Source: KoreanClick, KDB Daewoo Securities Research Research Research
Figure 171717.17 . Weekly unique visitors to Figure 181818.18 . Avg. usage time per week for Figure 191919.19 . Avg. number of runs per
KakaoTaxi app for passengers KakaoTaxi app for passengers week for KakaoTaxi app for passengers
('000 persons) (minutes) (times) 1,200 Weekly unique visitors 8 Average usage time 7 Average number of runs
1,000 6 6 5 800 4 600 4 3 400 2 2
200 1
0 0 0 3/15 4/15 5/15 6/15 7/15 3/15 4/15 5/15 6/15 7/15 3/15 4/15 5/15 6/15 7/15
Source: KoreanClick, KDB Daewoo Securities Source: KoreanClick, KDB Daewoo Securities Source: KoreanClick, KDB Daewoo Securities Research Research Research
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July 17, 2015 Internet
Mobile games
Figure 212121.21 . Total usage time by monthmonth:: Kakao/nonKakao/non----KakaoKakao Figure 202020.20 . Monthly unique visitors: Kakao/nonKakao/non----KakaoKakao games games
(mn persons) Non-Kakao games (L) (%) (bn minutes) Non-Kakao games (L) (%) 80 Kakao games (L) 40 35 Kakao games (L) 20 Monthly growth of Kakao games (R) Monthly growth of Kakao games (R) 10 20 28 60 0 0 21 40 -10 -20 14 -20 20 -40 7 -30
0 -60 0 -40 1/13 4/13 7/13 10/13 1/14 4/14 7/14 10/14 1/15 4/15 1/13 4/13 7/13 10/13 1/14 4/14 7/14 10/14 1/15 4/15
Note: Based on games in the top 50 for unique visitors Note: Based on games in the top 50 for unique visitors Source: KoreanClick, KDB Daewoo Securities Research Source: KoreanClick, KDB Daewoo Securities Research
Figure 222222.22 . Monthly unique visitors bybyby game publisher
(mn persons) King.com Supercell Devsisters NHN Ent. Gamevil 45 Com2uS Neowiz Games Wemade Ent. Sundaytoz Netmarble Games Clash of Clans (Supercell) Raven with NAVER Let's Get Rich (Netmarble) 36 (Netmarble)
27
18
9
0 1/13 4/13 7/13 10/13 1/14 4/14 7/14 10/14 1/15 4/15
Note: Based on games in the top 50 for unique visitors Source: KoreanClick, KDB Daewoo Securities Research
Figure 232323.23 . Monthly usage time bybyby game publisher
(bn minutes) King.com Supercell Devsisters NHN Ent. Gamevil Com2uS Neowiz Games Wemade Ent. Raven with NAVER 25 Sundaytoz Netmarble Games (Netmarble)
Clash of Clans 20 (Supercell) Let's Get Rich (Netmarble) 15
10
5
0 1/13 4/13 7/13 10/13 1/14 4/14 7/14 10/14 1/15 4/15
Note: Based on games in the top 50 for unique visitors Source: KoreanClick, KDB Daewoo Securities Research
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July 17, 2015 Internet
Figure 242424.24 . Anipang series Figure 252525.25 . Raven with NAVER
Source: KDB Daewoo Securities Research Source: KDB Daewoo Securities Research
Figure 262626.26 . Weekly unique visitor trends for KoreaKorea’’’’ss toptoptop mobile games
(mn persons) Anipang 2 for Kakao Let's Get Rich Candy Crush Soda Clash of Clans 4 Sachunsung for Kakao Poko Poko for Kakao Anipang for Kakao Candy Crush Saga Seven Knights Raven with NAVER 3
2
1
0 1/15 2/15 3/15 4/15 5/15 6/15 7/15 Source: KoreanClick, KDB Daewoo Securities Research
Figure 272727.27 . Changes in the ranking of KoreaKorea’’’’ss top mobile games
(rank) 0
4
8
12 Raven with NAVER MU: Origin Clash of Clans Seven Knights for Kakao 16 Let's Get Rich for Kakao Chrono Blade with NAVER Anipang 2 for Kakao God of High School Taming Monster for Kakao Hero for Kakao MARVEL Future Fight Hearthstone Heroes of Warcraft 20 FIFA Online 3M by EA Sports Summoners War 1/15 2/15 3/15 4/15 5/15 6/15 7/15
Note: Based on gross revenue ranking on Google Play Games in South Korea Source: App Annie, KDB Daewoo Securities Research
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July 17, 2015 Internet
Online video
Figure 282828.28 . My Little TelevisionTelevisio nnn, featuring realrealreal-real ---timetime personal broadcasting (via Daum tvpot player) andandand distributed laterlaterlater via terrestrial TV (in a recorded version)
Source: Company data, MBC, KDB Daewoo Securities Research
Figure 292929.29 . NAVER tvcast, a portalportal----basedbased video clip service
Source: Company data, KDB Daewoo Securities Research
Figure 303030.30 . Monthly unique visitor trends for mobile video apps Figure 313131.31 . Monthly unique visitor comparison
(mnpersons) YouTube (L) AfreecaTV (R) (mn persons) (mnpersons) 25 B tv mobile (R) Daum tvpot (R) 5 20 Tving (R) Gom TV (R)
20 4 15
15 3 10
10 2
5 5 1
0 0 0 1/13 7/13 1/14 7/14 1/15 YouTube AfreecaTV B tv mobile Daum tvpot Tving Gom TV Source: KoreanClick, KDB Daewoo Securities Research Note: Based on June 2015 Source: KoreanClick, KDB Daewoo Securities Research
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July 17, 2015 Internet
Figure 323232.32 . Monthly unique visitor trends for PC video apps Figure 333333.33 . Monthly unique visitor comparison
(mn persons) Gomplayer (L) (mn persons) (mn persons) PotPlayer (R) 10 14 Naver Live Streaming (R) 5 NAVER Media Player ® 12 AfreecaPlayer (R) 4 8 10 6 3 8
6 4 2
4 2 1 2 0 0 0 Gomplayer PotPlayer Naver Live NAVER Media AfreecaPlayer 1/13 7/13 1/14 7/14 1/15 Streaming Player
Source: KoreanClick, KDB Daewoo Securities Research Note: Based on June 2015 Source: KoreanClick, KDB Daewoo Securities Research
Figure 343434.34 . Monthly unique visitor trends for mobile video Figure 353535.35 . Monthly unique visitor comparison domaindomainssss
(mn persons) youtube.com (L) (mnpersons) (mn persons) dailymotion.com (R) 5 8 afreeca.com (R) 2 gomtv.com (R) mgoon.com (R) 4 6
3
4 1 2
2 1
0 0 0 1/13 7/13 1/14 7/14 1/15 youtube.com dailymotion.com afreeca.com gomtv.com mgoon.com
Source: KoreanClick, KDB Daewoo Securities Research Note: Based on June 2015 Source: KoreanClick, KDB Daewoo Securities Research
Figure 363636.36 . Monthly unique visitor trends for PC video domaindomainssss Figure 373737.37 . Monthly unique visitor comparison
(mn persons) youtube.com (mn persons) 14 tvcast.naver.com 10 tvpot.daum.net gomtv.com 12 afreeca.com 8
10 6
8 4 6 2 4 0 2
0 1/13 7/13 1/14 7/14 1/15 Source: KoreanClick, KDB Daewoo Securities Research Note: Based on June 2015 Source: KoreanClick, KDB Daewoo Securities Research
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July 17, 2015 Internet
NAVER: NAVER Pay, mobile ads
Figure 383838.38 . NAVER Pay homepage with instructioninstructionssss on joining, using the service, and participating in eventeventssss
Source: Company data, KDB Daewoo Securities Research
Figure 393939.39 . NAVER marketing homepagehomepage,,,, showing expanded lineup ofofof mobile ad products
Source: Company data, KDB Daewoo Securities Research
Figure 404040.40 . Monthly unique visitors to NAVER PayPayPay (((formerly(formerly checkoutcheckout)) homepage
(persons) 600,000 http://pay.naver.com https://admin.checkout.naver.com 500,000 http://admin.pay.naver.com
400,000
300,000
200,000
100,000
0 7/14 9/14 11/14 1/15 3/15 5/15
Source: KoreanClick, KDB Daewoo Securities Research
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July 17, 2015 Internet
Figure 414141.41 . Monthly unique visitors to NAVER marketing homepage for advertisers
(persons) 90,000 http://mktg.naver.com
70,000
50,000
30,000
10,000 8/14 10/14 12/14 2/15 4/15 6/15
Source: KoreanClick, KDB Daewoo Securities Research
Figure 424242.42 . NAVER search ads homepagehomepage,,,, showing expanded Figure 434343.43 . Monthly unique visitors to NAVER search ads
lineup of mobile ad products homepage
(persons) 250,000 http://searchad.naver.com
200,000
150,000
100,000
50,000
0 7/14 9/14 11/14 1/15 3/15 5/15
Source: Company data, KDB Daewoo Securities Research Source: KoreanClick, KDB Daewoo Securities Research
Figure 444444.44 . Store Farm homepagehomepage:: PPPlatformPlatform for building online Figure 454545.45 . Monthly unique visitors to Store Farm homepage shopping malls
(persons) 160,000 http://sell.storefarm.naver.com
120,000
80,000
40,000 7/14 9/14 11/14 1/15 3/15 5/15 Source: Company data, KDB Daewoo Securities Research Source: KoreanClick, KDB Daewoo Securities Research
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July 17, 2015 Internet
V. LINE: LINE Music, LINE@
Figure 464646.46 . LINE MusicMusic:: NNNetworkNetworketwork----basedbased streaming service
Source: Company data, KDB Daewoo Securities Research
Figure 474747.47 . Music market in Japan as of 2014 Figure 484848.48 . Japan music market size and growth
Mobile (US$bn) Market size in 2014 (L) (%) (ringtone), 2% Streaming, 3% 3 2013-2018 CAGR (R) 30 MP3 downloads, 20 12%
2 10
0
Concert tickets, 1 -10 20% Album, 57% -20
Concert 0 -30 sponsorship, Album Concert Concert MP3 Streaming Mobile 6% sponsorship tickets downloads (ringtone)
Source: PwC, KDB Daewoo Securities Research Source: PwC, KDB Daewoo Securities Research
TableTableTable 111.1. Comparison with Korean services (W) MelonMelonMelon MnetMnetMnet BugsBugsBugs GenieGenieGenie LINE Music (KOR)(KOR)(KOR) (KOR)(KOR)(KOR) (KOR)(KOR)(KOR) (KOR)(KOR)(KOR) (JPN)(JPN)(JPN) Songs 3,800 3,600 4,300 5,000 1,500 Streaming only 6,500 6,500 5,900 6,000
Streaming + download (DRM) 8,500 8,500 8,400 7,000
Streaming + download up to 30 song limit (MP3) 9,500 9,500 8,900 9,000
20 hours/month 5,000
Unlimited 10,000
Source: Company data, KDB Daewoo Securities Research
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July 17, 2015 Internet
Figure 494949.49 . LINE@LINE@:: Ad platform for smallsmall////midmidmidmid----sizedsized enterprises
Source: Company data, KDB Daewoo Securities Research
Figure 505050.50 . LINE@ global accounts
('000 accounts) 600 LINE@ global accounts 590 The expansion of target countries and advertisers, as well as the promotionof free usage, contributed to the sharp growth in LINE@ accounts. 450 Approx. W50,000/month to be charged from Sep. 2015 370
300
150 140 100 20 24 15 30 40 0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Note: Our assumption, based on press release and conference call Source: Company data, KDB Daewoo Securities Research
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July 17, 2015 Internet
APPENDIX 1
Important Disclosures & Disclaimers 222-2---YearYear Rating and Target Price History
Company (((Code)(Code)Code)Code) DateDateDate RatingRatingRating Target Price Company (((Code)(Code)Code)Code) DateDateDate RatingRatingRating Target Price NAVER(035420) 05/04/2015 Buy 890,000 03/31/2015 Buy 138,000 03/06/2014 Buy 1,050,000 01/25/2015 Buy 210,000 01/13/2014 Buy 920,000 11/09/2014 Buy 172,000 11/26/2013 Buy 870,000 10/06/2014 Buy 211,000 10/16/2013 Buy 700,000 06/22/2014 Buy 144,000 09/15/2013 Buy 670,000 02/16/2014 Buy 93,000 08/29/2013 Buy 483,000 08/11/2013 Buy 108,000 07/12/2013 Buy 382,000 05/13/2013 Buy 115,000 Daum Kakao(035720) 05/14/2015 Buy 130,000
(W) NAVER (W) Daum Kakao 1,200,000 250,000
1,000,000 200,000 800,000 150,000 600,000 100,000 400,000
200,000 50,000
0 0 Jul 13 Jul 14 Jul 15 Jul 13 Jul 14 Jul 15
Stock Ratings Industry Ratings Buy : Relative performance of 20% or greater Overweight : Fundamentals are favorable or improving Trading Buy : Relative performance of 10% or greater, but with volatility Neutral : Fundamentals are steady without any material changes Hold : Relative performance of -10% and 10% Underweight : Fundamentals are unfavorable or worsening Sell : Relative performance of -10% Ratings and Target Price History (Share price ( ─), Target price ( ▬), Not covered ( ■), Buy ( ▲), Trading Buy ( ■), Hold ( ●), Sell ( ◆)) * Our investment rating is a guide to the relative return of the stock versus the market over the next 12 months. * Although it is not part of the official ratings at Daewoo Securities, we may call a trading opportunity in case there is a technical or short-term material development. * The target price was determined by the research analyst through valuation methods discussed in this report, in part based on the analyst’s estimate of future earnings. * The achievement of the target price may be impeded by risks related to the subject securities and companies, as well as general market and economic conditions.
Equity Ratings Distribution BuyBuyBuy Trading Buy HoldHoldHold SellSellSell 72.36% 13.57% 14.07% 0% * Based on recommendations in the last 12-months (as of June 30, 2015)
Disclosures As of the publication date, Daewoo Securities Co., Ltd and/or its affiliates do not have any special interest with the subject company and do not own 1% or more of the subject company's shares outstanding.
Analyst Certification The research analysts who prepared this report (the “Analysts”) are registered with the Korea Financial Investment Association and are subject to Korean securities regulations. They are neither registered as research analysts in any other jurisdiction nor subject to the laws and regulations thereof. Opinions expressed in this publication about the subject securities and companies accurately reflect the personal views of the Analysts primarily responsible for this report. Daewoo Securities Co., Ltd. policy prohibits its Analysts and members of their households from owning securities of any company in the Analyst’s area of coverage, and the Analysts do not serve as an officer, director or advisory board member of the subject companies. Except as otherwise specified herein, the Analysts have not received any compensation or any other benefits from the subject companies in the past 12 months and have not been promised the same in connection with this report. No part of the compensation of the Analysts was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report but, like all employees of Daewoo Securities, the Analysts receive compensation that is impacted by overall firm profitability, which includes revenues from, among other business units, the institutional equities, investment banking, proprietary trading and private client division. At the time of publication of this report, the Analysts do not know or have reason to know of any actual, material conflict of interest of the Analyst or Daewoo Securities Co., Ltd. except as otherwise stated herein.
Disclaimers This report is published by Daewoo Securities Co., Ltd. (“Daewoo”), a broker-dealer registered in the Republic of Korea and a member of the Korea Exchange. Information and opinions contained herein have been compiled from sources believed to be reliable and in good faith, but such information has not been independently verified and Daewoo makes no guarantee, representation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the information and opinions contained herein or of any translation into English from the Korean language. If this report is an English translation of a report prepared in the Korean language, the original Korean language report may have been made available to investors in advance of this report. Daewoo, its affiliates and their directors, officers, employees and agents do not accept any liability for any loss arising from the use hereof. This
KDB Daewoo Securities Research 14
July 17, 2015 Internet
report is for general information purposes only and it is not and should not be construed as an offer or a solicitation of an offer to effect transactions in any securities or other financial instruments. The intended recipients of this report are sophisticated institutional investors who have substantial knowledge of the local business environment, its common practices, laws and accounting principles and no person whose receipt or use of this report would violate any laws and regulations or subject Daewoo and its affiliates to registration or licensing requirements in any jurisdiction should receive or make any use hereof. Information and opinions contained herein are subject to change without notice and no part of this document may be copied or reproduced in any manner or form or redistributed or published, in whole or in part, without the prior written consent of Daewoo. Daewoo, its affiliates and their directors, officers, employees and agents may have long or short positions in any of the subject securities at any time and may make a purchase or sale, or offer to make a purchase or sale, of any such securities or other financial instruments from time to time in the open market or otherwise, in each case either as principals or agents. Daewoo and its affiliates may have had, or may be expecting to enter into, business relationships with the subject companies to provide investment banking, market-making or other financial services as are permitted under applicable laws and regulations. The price and value of the investments referred to in this report and the income from them may go down as well as up, and investors may realize losses on any investments. Past performance is not a guide to future performance. Future returns are not guaranteed, and a loss of original capital may occur.
Distribution United Kingdom: This report is being distributed by Daewoo Securities (Europe) Ltd. in the United Kingdom only to (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), and (ii) high net worth companies and other persons to whom it may lawfully be communicated, falling within Article 49(2)(A) to (E) of the Order (all such persons together being referred to as “Relevant Persons”). This report is directed only at Relevant Persons. Any person who is not a Relevant Person should not act or rely on this report or any of its contents. United States: This report is distributed in the U.S. by Daewoo Securities (America) Inc., a member of FINRA/SIPC, and is only intended for major institutional investors as defined in Rule 15a-6(b)(4) under the U.S. Securities Exchange Act of 1934. All U.S. persons that receive this document by their acceptance thereof represent and warrant that they are a major institutional investor and have not received this report under any express or implied understanding that they will direct commission income to Daewoo or its affiliates. Any U.S. recipient of this document wishing to effect a transaction in any securities discussed herein should contact and place orders with Daewoo Securities (America) Inc., which accepts responsibility for the contents of this report in the U.S. The securities described in this report may not have been registered under the U.S. Securities Act of 1933, as amended, and, in such case, may not be offered or sold in the U.S. or to U.S. persons absent registration or an applicable exemption from the registration requirements. Hong Kong: This document has been approved for distribution in Hong Kong by Daewoo Securities (Hong Kong) Ltd., which is regulated by the Hong Kong Securities and Futures Commission. The contents of this report have not been reviewed by any regulatory authority in Hong Kong. This report is for distribution only to professional investors within the meaning of Part I of Schedule 1 to the Securities and Futures Ordinance of Hong Kong (Cap. 571, Laws of Hong Kong) and any rules made thereunder and may not be redistributed in whole or in part in Hong Kong to any person. All Other Jurisdictions: Customers in all other countries who wish to effect a transaction in any securities referenced in this report should contact Daewoo or its affiliates only if distribution to or use by such customer of this report would not violate applicable laws and regulations and not subject Daewoo and its affiliates to any registration or licensing requirement within such jurisdiction.
KDB Daewoo Securities International Network
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