Studio Dragon (253450.KQ) Re-rating is on the way

Although Covid-19 effects have reduced ’s room for top-line Company Comment │Oct 12, 2020 growth via diversification of its programming platforms, we draw attention to stronger margins amid intensified competition among global OTTs. The stiffer ※ Refer to page 2 for competition is to boost production studios’ bargaining power and spur expansion ESG index/event tables of the global content market. We maintain Studio Dragon as our sector top pick. Buy (maintain) TP (12-mth) W110,000 (maintain) Pay attention to strengthening bargaining power and widening margins CP (20/10/08) W85,000 Sector Media/entertainment We maintain a Buy rating on Studio Dragon, continuing to suggest it as our Kospi/Kosdaq 2,391.96 / 871.62 sector top pick in respect of: 1) its increased bargaining power; and 2) intact Market cap (common) US$2,074.5mn expectations towards re-rating in response to global content market expansion. Outstanding shares (common) 28.1mn We view the firm’s recent sale of global broadcasting rights for Jirisan to iQIYI 52W high (’20/07/08) W92,500 as evidencing the emergence of OTT operators in possession of both abundant low (’19/10/10) W65,000 funding power to counter and a willingness to secure content in Asia. Average trading value (60D) US$18.3mn Accordingly, content producers are set to enjoy increased bargaining power. Dividend yield (2020E) 0.00% Meanwhile, with the company currently in talks with both Apple and HBO Max Foreign ownership 9.2% regarding global market original productions, we see opportunities for further Major Shareholders expansion into the global content market. Our earnings estimates are CJ ENM & 5 others 61.3% conservative in light of a downward adjustment in our assumption of the Share perf 3M 6M 12M number of dramas to be aired in 2021 down to 28 dramas (-13% vs our previous Absolute (%) -8.1 13.5 28.0 estimate). We note that ongoing programming disruptions due to Covid-19 Relative (%p) -19.2 -20.9 -6.7 effects has reduced Studio Dragon’s room for top-line growth via diversification 2019 2020E 2021F 2022F of its programming platforms (ie, higher non-captive programming). That said, Sales 468.7 541.2 576.7 672.8 we believe that Studio Dragon will continue to display robust margins going Chg 23.5 15.5 6.6 16.7 forward in line with: 1) an upturn in its recoup rate for new dramas; and 2) a OP 28.7 52.9 86.1 103.8 revitalization of global sales of the firm’s previously-aired dramas. Therefore, Chg -28.1 84.3 62.8 20.6 rather than being disappointed by a likely slowing in the company’s top-line OPM 6.1 9.8 14.9 15.4 growth, we advise investors more to focus upon anticipated continued NP 26.4 41.8 70.0 84.2 improvement in its profitability. EPS 941 1,488 2,489 2,994 Chg -26.4 58.1 67.3 20.3 3Q20 preview: Earnings to arrive in line with lowered consensus P/E 85.9 57.1 34.1 28.4 In line with lowered consensus, we estimate that Studio Dragon’s consolidated 3Q20 P/B 5.3 5.1 4.4 3.8 sales and OP fell to W130.1bn (-0.8% y-y) and W10.6bn (-3.2% y-y), respectively. EV/EBITDA 14.9 12.8 11.6 10.3 The firm’s earnings figure should reflect both pre-sales to Netflix (for It’s Okay to ROE 6.4 9.3 13.9 14.5 Not Be Okay, Stranger 2, and ) and a likely continued uptrend in Debt/equity 35.8 33.9 30.8 27.9 sales of its past libraries. We expect the firm to write off amortization of intangible Net debt -100.7 -89.1 -139.6 -202.6 assets, estimating its depreciation costs for four works (including several Netflix pre- Unit: Wbn, %, won, x sale works and Once Again (KBS2)) at W33bn. In addition, expenses related to Note 1: NP excludes minority interests Note 2: EPS, P/E, P/B, ROE based on NP (excl minority interests) temporary production suspensions stemming from a re-proliferation of Covid-19 Source: NH I&S Research Center estimates will likely be booked as a -time cost item. Looking at 4Q20, the number of domestic films to be aired in Korea should decrease q-q due to a lack of platform diversification. However, the negative impacts of such should somewhat be offset by the likely reflection of earnings for Netflix original production S1, which is confirmed to have a high profit margin (20%).

3Q20 preview (Unit: Wbn, %) 3Q20E 3Q19 4Q19 1Q20 2Q20 4Q20F Estimate y-y q-q Previous Consen Sales 131.2 97.4 120.3 161.4 130.1 -0.8 -19.4 138.2 123.9 129.4 OP 10.9 -4.0 11.6 16.9 10.6 -3.2 -37.3 17.7 11.8 13.8 OPM 8.3 -4.1 9.7 10.4 8.1 12.8 9.5 10.7 Pre-tax profit 13.1 -5.2 12.0 17.2 12.7 -3.2 -26.2 18.6 12.3 12.9 Hazell Lee, Analyst NP (excl minority 822)768-7535, [email protected] 11.5 -1.6 8.5 13.4 9.9 -14.5 -26.2 18.6 9.6 10.1 interests) Note: K-IFRS consolidated; Source: FnGuide; NH I&S Research Center estimates Studio Dragon www.nhqv.com

Summary

Studio Dragon is a drama production company that was born in May 2016 via the splitting off of CJ ENM’s drama business. The firm manages both planning and production activities for its dramas and possesses its own drama IPs. It signed a contract with Netflix to produce 21 dramas for the global OTT over three years from 2020. Studio Dragon is capable of producing about 40 dramas a year. In 2019, the firm’s sales broke down as: 1) broadcasting revenue (44.6%); 2) distribution revenue (46.8%); and 3) other sales (8.7%). We believe that Studio Dragon boasts differentiated growth potential thanks to both its strong production team lineup and its ample co-operative production experience with global players. Presenting a Buy rating and a TP of W110,000, we offer Studio Dragon as our sector top pick.

Share price drivers/earnings momentum Downside risks

Ÿ Export contracts with non-Netflix global OTT players Ÿ Defection of major scenario writers and directors Ÿ Production cost hikes for original series for global OTT firms and Ÿ Slowing demand from OTT players for original series resulting margin improvement Ÿ Delayed resumption of exports due to Chinese government’s Ÿ Resumption in exports to China upon lifting of Chinese restrictions on Korean content government’s restrictions on Korean content Ÿ Disposal of CJ ENM-owned stake to financial investors (FIs) Ÿ Disposal of CJ ENM’s stake to strategic investors (SIs)

Cross valuations (Unit: x, %) Historical valuations (Unit: x, %)

P/E P/B ROE Company Valuations 2018 2019 2020E 2021F 2022F 2020E 2021F 2020E 2021F 2020E 2021F Netflix 86.0 60.7 22.3 16.4 26.0 27.0 P/E 72.3 85.9 57.1 34.1 28.4 Walt Disney 82.6 47.0 2.7 2.6 3.2 5.5 P/B 6.5 5.3 5.1 4.4 3.8 CJ ENM 21.4 16.2 1.0 0.9 4.5 5.7 P/S 6.8 4.8 4.4 4.1 3.6 J Contentree N/A 24.2 1.4 1.3 -12.8 5.8 ROE 9.3 6.4 9.3 13.9 14.5 AStory 58.6 N/A 2.4 2.5 4.1 -1.7 ROIC 11.5 6.1 11.0 18.7 21.5 Source: Factset, NH I&S Research Center Source: NH I&S Research Center

ESG index (Unit: %, years, hours, ‘000TJ, mn tCO2e, mn tons)

BOD composition Human resources 2017 2018 2019 Kang Cheol-goo CEO Inside Portion of female employees 46.8 52.0 54.0 Kim Young-kyu CEO Inside Portion of contract workers 8.9 10.2 13.7 Ha Yong-soo General management Outside Avg service period per employee 1.4 1.7 2.0 Yun Seok-min - Outside Avg training hours per employee - - -

Environment 2017 2018 2019 Energy consumption - - - Greenhouse gas emissions - - - Recycled water consumption - - - Recycled waste - - - Note: Joint CEO system introduced; Source: Studio Dragon, NH I&S Research Center

ESG events

E – N/A – Released 68-hour workweek drama production guidelines designed to avoid turn-key contracts and encourage the signing of contracts 2018.09 with individual staff members separately S 2017.12 – A drama crew member fell during a production shoot; the firm was embroiled in controversy over a breach of the Labor Standards Act 2017.04 – A program (O’PEN) designed to discover and nurture promising new writers introduced – Despite being in the net black, no dividend has been distributed; there exists room for improvement in terms of the lack of shareholder G 2020.03 return policies Source: Studio Dragon, NH I&S Research Center 2 Studio Dragon www.nhqv.com

Pay attention to increased bargaining power and improving margins Reiterate Buy We maintain a Buy rating on Studio Dragon, continuing to suggest it as our sector top rating pick in respect of: 1) its increased bargaining power; and 2) intact expectations towards re-rating in response to global content market expansion.

1) Greater bargaining power: Studio Dragon has recently sold global broadcasting rights for Jirisan to iQIYI instead of Netflix. We believe that while Netflix has also found the drama series appealing, given the author and producer’s filmographies, iQIYI has offered better terms and conditions than Netflix for the drama series. We view this deal as evidencing the emergence of OTT operators in possession of both abundant funding power to counter Netflix and a willingness to secure content in Asia. Accordingly, domestic content producers appear set to enjoy stronger bargaining power going forward.

2) Global content market expansion: With the firm currently in talks with Apple, HBO Max, , Disney, and other western OTT players regarding global market original productions, we see opportunities for further expansion into global markets.

Adhere to TP of For now, however, we stick to a TP at W110,000. While the base year for our TP W110,000 calculations has changed to 2021F (from 2020E), our target EV/EBITDA remains at 15.5x. Although we expect that the firm’s earnings will grow y-y in 2021, we lower our sales estimates in light of continued disruptions in placing its dramas in the broadcast schedules for non-captive channels and a resultant downward revision in the number of dramas assumed to be aired pa. That said, OPM should remain robust going forward.

Target EV/EBITDA valuation (Unit: x, %, Wbn, won, shrs) 2021F Multiple (x) Value Note EV/EBITD Operating value (A) 194.8 15.5 3,019.3 Discounts for Chinese production companies and global OTT players A Net debt (B) -139.6 Total value(A)-(B) 3,158.9 Value per share 112,309 TP 110,000 Upside 29.4% Number of outstanding shares 28,127,000 Source: NH I&S Research Center

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Revise down sales We have revised down our estimates for the number of new drama airings to 26 (-19% forecasts in light of versus our previous estimate) for 2020 and to 28 (-15%) for 2021. In particular, we have downward lowered our forecasts for the number of dramas to be distributed in Korea to 24 (-17%) adjustment to for 2020 and 25 (-17%) for 2021. We note that ongoing programming disruptions due to estimated number Covid-19 effects has reduced Studio Dragon’s room for top-line growth via of drama airings diversification of its programming platforms (ie, higher non-captive programming). Having lowered estimates for the number of drama airings, we have adjusted down overall earnings forecasts for Studio Dragon.

But, focus on That said, anticipated profitability improvement warrants attention. In fact, recoup rates anticipated margins for new dramas are on the rise, and global sales of previously-aired dramas are being improvement revitalized. In particular, rising sales for old dramas for which production costs have already been reflected bode well for margins widening. Moving ahead, with Studio Dragon’s bargaining power strengthening, its recoup rate is being primed to rise further, and we anticipate sales to China of previously-aired dramas.

Earnings forecasts (IFRS-consolidated) (Unit: Wbn, won, x, %) 2019 2020E 2021F 2022F Sales - Revised 468.7 541.2 576.7 672.8 - Previous - 555.8 621.2 669.9 - Change -2.6 -7.2 0.4 OP - Revised 28.7 52.9 86.1 103.8 - Previous - 74.4 119.4 125.2 - Change -28.9 -27.9 -17.1 OPM - Revised 6.1 9.8 14.9 15.4 EBITDA 145.5 179.8 194.8 212.5 NP (excl minority interests) 26.4 41.8 70.0 84.2 EPS - Revised 941 1,488 2,489 2,994 - Previous - 2,110 3,457 3,622 - Change - -29.5 -28.0 -17.3 P/E 85.9 57.1 34.1 28.4 P/B 5.3 5.1 4.4 3.8 EV/EBITDA 14.9 12.7 11.5 10.2 ROE 6.4 9.3 13.9 14.5 Note 1 : EPS, P/E, P/B, and ROE based on NP (excluding minority interests) Note 2: OP volatility expands due to exclusion of S2-related OP Source: NH I&S Research Center estimates

4 Studio Dragon www.nhqv.com

Earnings forecasts, by division (Unit: episodes, Wbn, %) 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20E 4Q20F 2018 2019 2020E 2021F Number of dramas 6 6 6 8 7 8 7 5 8 6 7 6 25 27 26 28 TV (domestic) 6 6 6 8 7 8 6 5 7 6 7 5 25 26 24 25 OTT ------1 - 1 - - 1 - 1 2 3 Sales 79.9 74.3 123.7 101.7 111.8 128.2 131.2 97.4 120.3 161.4 130.1 129.4 379.6 468.7 541.2 576.7 Broadcasting 40.7 34.1 48.9 54.4 44.1 58.1 60.8 45.7 45.2 65.4 47.8 38.8 178.1 208.7 197.3 200.6 revenue IP + VOD 32.1 28.8 63.4 37.8 56.2 60.3 60.0 42.8 66.9 75.7 69.4 80.9 162.1 219.3 292.9 330.1 Other (DVD, OST) 7.1 11.4 11.4 9.5 11.5 9.8 10.4 8.9 8.2 20.3 12.9 9.6 39.4 40.6 51.0 46.0 y-y (%) 6.0 19.6 59.7 41.5 40.0 72.6 6.0 -4.3 7.6 25.9 -0.8 32.8 32.4 23.5 15.5 6.5 COGS 66.2 63.7 98.9 95.2 96.8 112.8 115.9 95.2 103.6 139.6 115.5 108.9 324.0 420.8 467.6 469.2 Production costs 44.6 33.3 47.7 60.0 48.8 64.5 70.8 48.6 61.9 75.0 59.8 68.3 185.6 232.7 264.9 275.6 Amortization costs 12.6 13.1 23.3 25.9 26.7 32.5 28.4 27.4 25.6 44.7 33.9 21.8 74.9 115.0 126.0 107.7 Other 9.1 17.2 27.9 9.3 21.3 15.8 16.6 19.3 16.1 19.9 21.8 18.8 63.5 73.1 76.7 86.0 GP 13.6 10.6 24.8 6.5 15.0 15.4 15.3 2.1 16.7 21.8 14.7 20.5 55.6 47.9 73.7 107.4 GPM 17.1 14.3 20.1 6.4 13.4 12.0 11.7 2.2 13.8 13.5 11.3 15.9 14.6 10.2 13.6 18.6 OP 10.7 7.3 21.5 0.4 11.0 10.8 10.9 -4.1 11.6 16.9 10.6 13.8 39.8 28.7 52.9 86.1 OPM 13.3 9.9 17.4 0.4 9.9 8.4 8.3 -4.2 9.6 10.5 8.1 10.7 10.5 6.1 9.8 14.9 y-y (%) -23.7 -17.6 218.5 -88.9 3.5 47.3 -49.2 TTL 4.8 57.1 -3.2 TTP 20.5 -28.0 84.2 62.8 NP 7.9 8.9 17.3 1.7 9.2 7.3 11.5 -1.6 8.5 13.4 10.0 9.9 35.8 26.4 41.8 70.4 NPM 9.8 12.0 14.0 1.7 8.2 5.7 8.8 -1.7 7.1 8.3 7.7 7.7 9.4 5.6 7.7 12.2 Note: Number of dramas based on those aired in each quarter (if a drama is aired through two consecutive quarters, 0.5 is reflected for each quarter) Source: NH I&S Research Center estimates

Studio Dragon’s 2H20 drama lineups Earnings Title Broadcasting date Channel Episodes Peak rating Remarks reflected in Once Again 20.03.28~20.09.13 2Q,3Q KBS2 50 37.0% Prior amortization My Unfamiliar Family 20.06.01~20.07.21 2Q. 3Q tvN 16 5.4% Tentpole; simultaneous It’s Okay to Not Be Okay 20.06.20~20.08.09 2Q, 3Q tvN 16 7.3% release on Netflix Train 20.07.11~20.08.16 3Q OCN 12 1.4% Flower of Evil 20.07.29~20.09.23 3Q tvN 16 5.7% Tentpole; simultaneous Stranger S2 20.08.15~20.10.04 3Q, 4Q tvN 16 9.4% release on Netflix Missing 20.08.29~20.10.11 3Q, 4Q OCN 12 3.8% Tentpole; simultaneous Record of Youth 20.09.07~20.10.27 3Q, 4Q tvN 16 8.2% release on Netflix Tale of a Gumiho 20.10.07~20.11.26 4Q tvN 16 5.8% Tentpole; simultaneous Start-Up 20.10.17~20.12.06 4Q tvN 16 - release on Netflix Wonderful Rumor (E) 20.11.21~21.01.10 4Q, 1Q tvN 16 Day and Night (E) 20.11.30~21.01.19 4Q, 1Q tvN 16 True Beauty (E) 20.12.02~21.01.21 4Q, 1Q tvN 16 Sweet Home S1 4Q Netflix 8 N/A Netflix Original series Source: Studio Dragon, Media report, NH I&S Research Center estimates

5 Studio Dragon www.nhqv.com

STATEMENT OF COMPREHENSIVE INCOME Valuation / Profitability / Stability (Wbn) 2019/12A 2020/12E 2021/12F 2022/12F 2019/12A 2020/12E 2021/12F 2022/12F Sales 468.7 541.2 576.7 672.8 Price/Earnings (x) 85.9 57.1 34.1 28.4 Growth (%) 23.5 15.5 6.6 16.7 Price/Book Value (x) 5.3 5.1 4.4 3.8 COGS 420.8 467.6 469.2 541.2 Price/Gross Cash Flow (x) 15.1 13.3 12.3 11.4 Gross Profit 47.9 73.7 107.4 131.6 Price/Sales (x) 4.8 4.4 4.1 3.6 Gross margin (%) 10.2 13.6 18.6 19.6 EV/EBITDA (x) 14.9 12.8 11.6 10.3 SG&A 19.2 20.8 21.3 27.8 EV/EBIT (x) 75.7 43.5 26.1 21.1 Operating Income 28.7 52.9 86.1 103.8 Fully diluted EPS (won) 941 1,488 2,489 2,994 Growth (%) -28.1 84.3 62.8 20.6 BVPS (won) 15,242 16,713 19,202 22,196 Operating margin (%) 6.1 9.8 14.9 15.4 Sales PS (won) 16,698 19,257 20,503 23,919 EBITDA 145.5 179.8 194.8 212.5 ROE (%) 6.4 9.3 13.9 14.5 Non-Operating Profit 4.4 1.9 1.9 1.9 ROA (%) 4.8 6.9 10.5 11.2 Financial Income(Costs) 4.3 1.9 1.9 1.9 ROIC (%) 6.1 11.0 18.7 21.5 Other Non-Operating Profit 0.1 0.0 0.0 0.0 Dividend Yield (%) 0.0 0.0 0.0 0.0 Gains(Losses) in Associates, Subsidiaries and JVs 0.0 0.0 0.0 0.0 Payout Ratio (%) 0.0 0.0 0.0 0.0 Pre-tax Profit from Cont. Op. 33.1 54.7 88.0 105.8 Total Cash Dividend (Wbn) 0.0 0.0 0.0 0.0 Income Taxes 6.6 12.9 18.0 21.5 Cash DPS (won) 0 0 0 0 Profit from Continuing Op. 26.4 41.8 70.0 84.2 Net debt(cash)/ equity (%) -23.5 -18.9 -25.8 -32.4 Net Profit 26.4 41.8 70.0 84.2 Debt/ equity (%) 35.8 33.9 30.8 27.9 Growth (%) -26.3 58.3 67.5 20.3 Interest-Bearing Debts (Wbn) 0.0 0.0 0.0 0.0 Net margin (%) 5.6 7.7 12.1 12.5 Current Ratio (%) 168.4 164.6 196.5 227.9 Net Profit of Parent 26.4 41.8 70.0 84.2 Total shares (mn) 28 28 28 28 Net Profit to Non-Controlling 0.0 0.0 0.0 0.0 Par value (won) 500 500 500 500 Other Comprehensive Income -0.7 0.0 0.0 0.0 Share price (won) 80,900 85,000 85,000 85,000 Total Comprehensive Income 25.7 41.8 70.0 84.2 Market Cap (Wbn) 2,273 2,391 2,391 2,391

STATEMENT OF FINANCIAL POSITION CASH FLOW STATEMENT (Wbn) 2019/12A 2020/12E 2021/12F 2022/12F (Wbn) 2019/12A 2020/12E 2021/12F 2022/12F Cash and Cash Equivalents 59.8 46.1 94.5 155.2 Operating Cash Flow -12.2 155.7 170.8 190.8 Accounts Receivables 83.6 98.6 108.5 111.7 Net Profit 26.4 41.8 70.0 84.2 Total Current Assets 244.5 249.7 311.9 380.1 Depreciation & Amortization 116.8 127.0 108.7 108.7 Tangible Assets 1.2 1.2 1.2 1.2 + Loss(Gains) from Subs 0.0 0.0 0.0 0.0 Investment Assets 13.4 16.1 16.9 17.7 + FC translation loss(profit) 0.6 0.0 0.0 0.0 Non-Current Assets 337.1 379.6 394.5 418.7 Gross Cash Flow 150.0 179.1 193.6 209.8 Assets 581.6 629.3 706.4 798.7 - Incr. (Decr.) in WC -142.9 -10.6 -4.8 2.5 Short-Term Debt 2.0 2.3 2.5 2.9 Investing Cash Flow -81.0 -169.0 -122.6 -130.5 Account Payables 18.4 18.4 18.8 19.5 + Decr. In Tangible Assets 0.2 1.0 1.0 1.0 Current Liabilities 145.1 151.7 158.8 166.8 - Incr. In Tangible Assets (capex) -0.6 -2.0 -2.0 -2.0 Long-Term Debt 7.9 7.3 7.3 7.3 + Disp.(Acq.) of Inv. Assets -9.7 -2.7 -0.8 -0.8 Long-Term Allowance 0.2 0.3 0.3 0.3 Free Cash Flow -12.8 153.7 168.8 188.8 Non-Current Liabilities 8.2 7.5 7.6 7.6 Net Cash Flow -93.1 -13.4 48.2 60.3 Liabilities 153.3 159.2 166.3 174.4 Financing Cash Flow 0.0 -0.3 0.2 0.4 Capital Stock 14.0 14.0 14.0 14.0 Equity Financing 1.7 0.0 0.0 0.0 Capital Surplus 321.7 321.7 321.7 321.7 Debt Financing -1.7 -0.3 0.2 0.4 Retained Earnings 93.5 135.4 205.4 289.6 Incr.(Decr.) in Cash -93.2 -13.7 48.4 60.7 Non-Controlling Interests Equity 0.0 0.0 0.0 0.0 Ending Cash and Cash Equivalents 59.8 46.1 94.5 155.2 Shareholders' Equity 428.3 470.1 540.1 624.3 Net Debt (Cash) -100.7 -89.1 -139.6 -202.6 Source: NH I&S Research Center estimates

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Rating and TP update Studio Dragon (253450.KQ)

Disparity ratio (%) Date Rating TP Avg Max/Min (won) Closing Price Target price(12M) 2020.07.22 No change for 1 year - - 200,000 2019.07.23 Buy W110,000(12M) -31.0% -15.9% 2019.06.04 Buy W115,000(12M) -39.5% -35.8% 160,000 2019.02.15 Buy W135,000(12M) -34.2% -27.2% 120,000 2018.07.30 Buy W150,000(12M) -32.9% -22.5% 80,000 40,000 0 '18.10 '19.2 '19.6 '19.10 '20.2 '20.6 '20.10

NH Investment & Securities stock ratings

1. Rating based on a stock’s forecasted absolute return over a period of 12 months from the date of publication.

l Buy: Greater than +15% l Hold: -15% to +15% l Sell: Less than -15% 2. Regarding listed companies under NH I&S’ coverage, our stock ratings break down as follows (as of Oct 9, 2020).

l NH I&S’ stock rating distribution Buy Hold Sell 70.3% 29.2% 0.5%

- The stock rating on an individual company can change at irregular intervals. Our stock rating distribution is calculated on a weekly basis.

Compliance notice

l NH I&S does not have a stake greater than or equal to 1% in Studio Dragon as of the preparation date. l NH I&S has not provided this material to any institutional investor or other third party in advance. l The analyst and his/her spouse do not own any securities of Studio Dragon as of the preparation date. l This report correctly reflects the analyst’s opinion and was written without any external influence or intervention.

Disclosures The research is based on current public information that NH I&S considers reliable, but NH I&S does not represent it as accurate or complete and it should not be relied on as such. Furthermore, the research does not take into account particular investment objectives, financial situations or individual client needs, and NH I&S is in no way legally responsible for future returns or loss of original capital. All materials in this report are the intellectual property of NH I&S. Copying, distributing, transmitting, transforming or lending of this material without NH I&S' consent is prohibited.

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