Investor Relations 2021

February 2021 Disclaimer

This financial information in this document are consolidated earnings results based on K-IFRS.

This document is provided for the convenience of investors only, before the external audit on our 4Q 2020 and 2020 financial results is completed. The audit outcomes may cause some parts of this document to change.

In addition, this document contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, “forward-looking statements” often address our expected future business and financial performance, and often contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks” or “will”. Our actual results to be materially different from those expressed in this document due to uncertainties. Investor Relations 2021 TABLE OF CONTENTS

I at a Glance

II 4Q20 & 2020 Earnings Release

III 2021 Growth Strategies

Appendix I Studio Dragon at a Glance

1. Highlights 2. Comprehensive Studio 3. Studio Dragon at a Glance 4. No.1 Studio in Korea 1 Highlights

IP Value Up Financial Performance

Viewership Intl. Revenue Intl. Revenue WORLDWIDE Rating Growth Proportion 5titles 7% 41% 43%

International OP Margin Creators ASP Growth Licensing Improvement

231creators 157titles 29% +3%p

5 | Investor Relations 2021 – I. Studio Dragon at a Glance 2I. Comprehensive Studio

6 | Investor Relations 2021 – I. Studio Dragon at a Glance 3I. Studio Dragon at a Glance

6,093 28 27 25 22 18 2,756 16

1,164 1,180

Studio 2015 2016 2017 2018 2019 2020 Dragon

Note (1) Each companies’ audit report (consolidated basis) 7 | Investor Relations 2021 – I. Studio Dragon at a Glance 4I. No. 1 Studio in Korea ① Production Capability (1)

8 | Investor Relations 2021 – I. Studio Dragon at a Glance 4I. No. 1 Studio in Korea ① Production Capability (2)

9 | Investor Relations 2021 – I. Studio Dragon at a Glance 4I. No. 1 Studio in Korea ② Business Capability

10 | Investor Relations 2021 – I. Studio Dragon at a Glance 4II No. 1 Studio in Korea ③ Stable Profit Structure

Annual Production Trend Production Cost to Revenue Revenue to Cost of Sales

Unit: titles Unit: Wbn

525.7 468.7 28 27 25 379.6 22 286.8 18 195.5

89.8% 86.1% 85.8% 83.6% 85.4%

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

Note Companies’ homepage and other sources

11 | Investor Relations 2021 – I. Studio Dragon at a Glance II 4Q20 & 2020 Earnings Release

1. 4Q20 Highlights 2. 4Q20 & 2020 Operating Performance 3. Programming 4. Distribution 5. Cost 1 1 4Q 2020 Highlights

Intl. Revenue ASP Growth Revenue Proportion IP

W137.7bn 52.5% W34.9bn New titles +18% (+41.3% YoY) (+20.0%p YoY) (-8.3% YoY)

13 | Investor Relations 2021 – lI. 4Q20 & 2020 Earnings Release 1 1 4Q20 & 2020 Operating Performance

Summary

 2020 Revenue W525.7bn (+12.2% YoY): IP value up(1) attributable to enhanced presence of K-drama → top-line growth OP W49.1bn (+71.1% YoY): Enlarged intl. proportion driven by distribution leverage, limited cost increase → rapid growth

 4Q20 Revenue W137.7bn (+41.3% YoY): All-time high international revenue(2) → top-line growth OP W4.6bn (TB YoY): Increased cost (+31.2% YoY) mainly due to produce premium quality → led qualitative growth

Revenue Operating Profit Net Profit

Unit: Wbn Unit: Wbn Unit: Wbn 11.5 % 10.8 % 525.7 10.5 % 9.3% 9.4 % 8.3 % 468.7 48.9 6.6 % 40.8 6.1 % 5.6 % 5.6% 379.6 39.4 279.8 286.8 219.2 43.7 162.1 195.5 49.1 32.3 111.9 39.9 35.8 33.0 29.6 75.4 28.7 23.8 26.4 178.1 208.7 197.0 21.2 131.2 13.0 87.8

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

Programming Distribution Others Operating Profit OP Margin Net Profit NP Margin

Note (1) Long-tail value, increased ASP, OSMU, etc., (2) All-time high international revenue via upscaling size of and fortifing distribution efficiency 14 | Investor Relations 2021 – lI. 4Q20 & 2020 Earnings Release 2 4Q20 & 2020 Operating Performance

Programming

 2020 Revenue W197.0bn (-5.6% YoY): Fewer lineups on-air due to COVID-19 amid increased digital lineups → slight decrease

 4Q20 Revenue W40.7bn (-10.9% YoY): Titles on-air continually declined, new titles(1) excelled performance→ negative growth

2020 4Q20

Programming Revenue Production Trend(2) Programming Revenue

Unit: Wbn Unit: titles Unit: Wbn

208.7 197.0 65.4 14.4 178.1 28 27 35.3 25 9.5 1 2 22 45.7 45.2 27.6 45.7 131.2 40.7 18 0.8 7.4 25.7 87.8 194.3 27 17.8 168.6 161.7 25 25 21 45.7 44.4 41.2 105.5 18 37.8 38.3 70.0 -0.5 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 4Q19 1Q20 2Q20 3Q20 4Q20

Captive Non-captive TV Digital Captive Non-captive

Note (1) , , etc., (2) Includes all titles in progress 15 | Investor Relations 2021 – lI. 4Q20 & 2020 Earnings Release 3 4Q20 & 2020 Operating Performance

Distribution

 2020 Revenue W279.8bn (+27.6% YoY): IP value up led by upscaling size of original, increased ASP → intl. continued to excel

 4Q20 Revenue W86.3bn (+101.6% YoY): Delivered , expanded library sales, normalized domestic VOD record high

2020 4Q20

Distribution Revenue No. of Library Sales Distribution Revenue

Unit: Wbn Unit: titles Unit: Wbn

※ (1) 0.89bn 1.04bn 1.31bn 1.44bn 1.56bn 179 279.8 86.3 152 27 75.7 66.9 219.2 124 26 108 162.1 25 50.9 226.6 42.8 72.3 85 23 59.4 111.9 160.4 152 52.8 75.4 110.2 19 126 67.2 99 31.7 42.1 83 44.2 66 44.7 51.9 58.8 53.2 16.3 31.2 11.1 14.1 8.8 14.0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 4Q19 1Q20 2Q20 3Q20 4Q20

Domestic International Old Titles New Titles Domestic International

Note (1) Average distribution revenue per title (distribution revenue / number of library sales) 16 | Investor Relations 2021 – lI. 4Q20 & 2020 Earnings Release 4 4Q20 & 2020 Operating Performance

Cost

 2020 OPEXW476.6bn (+8.3% YoY): Fewer lineups, pre-emptively reflected cost, implemented reasonable cost policy → limited increase

 4Q20 OPEX W133.1bn (+31.2% YoY): COGS Ratio 89.1% (-8.7%p YoY), SG&A Ratio 7.6% (+1.2%p YoY)

COGS and SG&A Ratio OPEX Breakdown(1)

Unit: Wbn Unit: Wbn

4Q19 1Q20 2Q20 3Q20 4Q20 2018 2019 2020 89.8 86.1 85.8 Production COGS 48.6 61.9 75.0 46.8 76.3 185.6 232.7 260.0 83.6 85.4

Labor Costs 6.4 5.4 5.4 7.8 9.5 18.8 21.7 28.2

Depreciation 0.5 0.6 0.6 0.8 0.9 0.3 1.9 2.9

Amortization 27.7 25.6 44.7 18.9 24.1 75.0 115.0 113.3 4.9 4.9 4.1 4.1 3.0 Commissions 12.6 11.3 13.9 11.2 15.6 39.1 50.8 52.1

Others 5.6 3.9 4.9 4.8 6.7 20.9 17.9 20.1 2016 2017 2018 2019 2020 OPEX 101.4 108.7 144.5 90.3 133.1 339.7 440.0 476.6 COGS Ratio SG&A Ratio

Note (1) COGS + SG&A Cost 17 | Investor Relations 2021 – lI. 4Q20 & 2020 Earnings Release III 2021 Growth Strategies

1. Industry 2. Growth Strategies - Global, Digital II1 2021 Growth Strategies - Industry

Korea OTT Market Size Korea OTT Market in 2021

(Unit: Wbn)

780 635 ” 514 W400bn for 3 years W870bn in Korea W300bn for 4 years 415

307

Original Collaboration Launched 2H 2021 2016 2017 2018 2019 2020 , with 11 Street Coupang Play

19 | Investor Relations 2021 – lII. 2021 Growth Strategies 2 2021 Growth Strategies

“Strengthen IP, Developed by Studio Dragon”

Global Digital

Create New Culture, . Co-develop global projects . Accelerate shift to digital Premium Asia No. 1 Studio . Secure quality and performance . Diversify genres and formats Storyteller Group . Scale up to blockbuster . Fortify digital platform strategy . Intl. revenue proportion: 70% . Intl. revenue proportion: 43% . Expand lineups and deliveries of . Intl. revenue growth: 50% (5Y CAGR) G G global project . ASP increase: 18% (YoY) [Global Project] [Digital Lineup] . ASP increase: target double digit

. Digital lineup growth: double digit . Expand new business model . Digital lineup: 3 titles 10+titles 2titles →9+titles D (2020) (2021) D . Strategical collaboration with OTTs, maximize profit

Establishment~2020 2021 2022~

20 | Investor Relations 2021 – lII. 2021 Growth Strategies 2 2021 Growth Strategies - Global

International Originals Global Partners

Developed by SD 2titles

Co-developed 8titles

International Original

Skydance

Alison Schapker (Producer/Writer)

21 | Investor Relations 2020 – lII. 2021 Growth Strategies I2 2021 Growth Strategies - Digital

Global Universe Fandom Mid-form Audience

iQIYI etc. 3titles Digital Lineup 3titles

(Unit: titles) Double TVING titles Digit 3+

9+

2 1

2019 2020 2021(E) 2022(E)

22 | Investor Relations 2020 – lII. 2021 Growth Strategies Investor Relations 2021 APPENDIX

1 Corporate Overview

2 Vision

3 Business Model

4 Financial Statements Summary 1. Financial Position 2. Income Statement

5 1Q 2021 Lineups 1I. Corporate Overview

Group Structure Shareholder Structure

Reflects rights offering Reflects rights offering * CJ Corp. * Listed companies (NAVER-SD equity swap)

39.36% Others * CJ ENM 32.12%

54.48% CJ ENM * 54.48%

100% 100% 100% 100% 100% NETFLIX CJ ENM 20% 19% 4.68% 66.08% NAVER 6.26% Related Parties Share Price Trend 2.46%

2017.11.24=100

17.11 18.2 18.5 18.8 18.11 19.2 19.5 19.8 19.11 20.2 20.5 20.8 20.11 Studio Dragon KOSPI KOSDAQ

24 | Investor Relations 2021 – Appendix 2I. Vision

25 | Investor Relations 2021 – Appendix 3I. Business Model

26 | Investor Relations 2021 – Appendix 4I. Financial Statements - Financial Position

(Unit: Wbn) 4Q19 3Q20 4Q20 % QoQ % YoY Total Assets 581.6 637.1 756.6 18.8 30.1 Current Assets 244.5 266.2 227.6 (14.5) (6.9) Cash and Cash Equivalents 99.8 68.9 49.1 (28.8) (50.8) Others 144.7 197.3 178.5 (9.5) 23.4 Non-Current Assets 337.1 370.9 529.0 42.6 56.9 Tangible Assets 1.2 7.9 7.6 (4.0) 531.4 Intangible Assets 233.1 226.7 230.4 1.7 (1.2) Others 102.8 136.3 291.0 113.5 183.3 Total Liabilities 153.3 175.5 147.3 (16.1) (3.9) Current Liabilities 145.1 165.5 131.5 (20.5) (9.4) Non-Current Liabilities 8.2 10.0 15.8 58.0 93.8 Shareholders’ Equity 428.3 461.6 609.3 32.0 42.3 Capital Stock 14.0 14.1 15.0 6.7 6.8 Paid-In Capital in Excess of Par Val 321.7 322.9 470.0 45.6 46.1 Retained Earnings 93.5 126.1 122.9 (2.5) 31.4 Other Components of Equity (0.9) (1.5) 1.4 TB TB Key Financial Ratios Current Ratio (%) 168.4 160.9 173.1 12.3%p 4.7%p Net Debt (Net Cash) to Equity (%) (23.3) (14.9) (8.1) 6.9%p 15.3%p Cash Ratio (%) 68.8 41.7 37.3 (4.3)%p (31.4)%p

Note (1) K-IFRS consolidated basis (2) Current Ratio = Current Assets / Current Liabilities, Net Debt (Net Cash) to Equity = Net Debt (Net Cash) / Shareholders’ Equity, Cash Ratio = Cash and Cash Equivalents / Current Liabilities (3) TR (Turn To Red), TB (Turn To Black), CR (Continue Red), n/a (not available)

27 | Investor Relations 2021 – Appendix 4I. Financial Statements - Income Statement

(Unit: Wbn) 4Q19 1Q20 2Q20 3Q20 4Q20 % QoQ % YoY 2019 2020 % YoY

Sales Revenue 97.4 120.3 161.4 106.3 137.7 29.6 41.3 468.7 525.7 12.2

Programming 45.7 45.2 65.4 45.7 40.7 (10.9) (10.9) 208.7 197.0 (5.6)

Distribution 42.8 66.9 75.7 50.9 86.3 69.5 101.6 219.2 279.8 27.6

Others 8.9 8.2 20.3 9.7 10.7 10.8 19.8 40.8 48.9 20.3

OPEX 101.4 108.7 144.5 90.3 133.1 47.5 31.2 440.0 476.6 8.3

Cost of Goods Sold 95.2 103.6 139.6 85.0 122.7 44.3 28.8 420.8 450.9 7.2

SG&A 6.2 5.1 4.9 5.3 10.4 98.2 67.5 19.2 25.7 33.7

Operating Profit (4.0) 11.6 16.9 16.0 4.6 (71.2) TB 28.7 49.1 71.1

Margin (%) (4.1) 9.7 10.4 15.1 3.3 (11.7)%p 7.5%p 6.1 9.3 3.2%p

Non-operating Profit (1.1) 0.4 0.3 (0.8) (7.5) CR CR 4.4 (7.6) TR

Non-operating Income (0.9) 7.3 0.1 0.1 3.0 2,458.8 TB 10.7 10.5 (2.0)

Non-Operating Expenses 0.2 6.9 (0.2) 0.9 10.5 1,038.1 5,720.3 6.3 18.1 183.6

Pre-tax Profit (5.1) 12.0 17.2 15.2 (2.9) TR CR 33.1 41.5 25.7

Income Taxes (3.5) 3.5 3.8 4.6 (0.0) return return 6.7 11.9 79.8

Net Profit (1.6) 8.5 13.4 10.6 (2.8) TR CR 26.4 29.6 12.1

Margin (%) (1.7) 7.1 8.3 10.0 (2.1) (12.0)%p (0.4)%p 5.6 5.6 0.0%p

Note (1) K-IFRS consolidated basis (2) TR (Turn To Red), TB (Turn To Black), CR (Continue Red), n/a (not available)

28 | Investor Relations 2021 – Appendix 5 1Q 2021 Lineups

Distributor ∙ OCN ∙ tvN ∙ tvN ∙ tvN Date (#. of episodes) ∙ Nov. 28~Jan. 24 (16) ∙ Dec. 9~Feb. 4 (16) ∙ Dec. 12~Feb. 14 (20) ∙ Feb. 1~Mar. 9 (12) Writer / Director ∙ Yeo Ji-Na, Kim Sae-Bom/ YooSun-Dong ∙ Lee Si-Eun / Kim Sang-Hyeop ∙ Park Gye-Ock, Choi Ah-Il / Yoon Sung-Sik ∙ Chun Sung-Il / Kim Hong-Sun Main Cast ∙ Cho Byeong-Kyu, Kim Se-Jung ∙ Cha Eun-Woo, Moon Ga-Young ∙ Shin Hye-Sun, Kim Jung-Hyun ∙ Kim Rae-Won, Lee Da-Hee

Navillera

Distributor ∙ tvN ∙ OCN ∙ tvN ∙ Netflix Original Date (#. of episodes) ∙ Feb. 20~Apr. 25 (20) ∙ Feb. 20~Mar. 28 (12) ∙ Mar. 22~Apr. 27 (12) ∙ 1Q21 (6) Writer / Director ∙ Park Jae-Bum / Kim Hee-Won ∙ Lee Sae-Bom / Yoon Jong-Ho ∙ Lee Eun-Mi / Han Dong-Hwa ∙ YooBo-Ra, Cha Yun-Soo / Kim Jin-Woo Main Cast ∙ Song Joong-Ki, Jeon Yeo-Been ∙ Lee Seo-Jin, Kim Young-Chul ∙ Song Kang, Park In-Hwan, Na Moon-Hee ∙ Kim So-Hyun, Song Kang

29 | Investor Relations 2021 – Appendix Thank You

Studio Dragon Investor Relations | [email protected] | www.studiodragon.net