IR PRESENTATION

2014. 08

This presentation contains forward-looking statements regarding our business strategy and plan based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update this presentation as a result of new information or future events. Company Overview

Shareholding Structure (As of 2014.07.28) 14% 36% 25%

J.W Lee(Founder) Foreign Investors Domestic Investors(E)

Subsidiaries OnNet (86.1%) OnNet USA (86.2%) (As of 2014.06.30) Game Publishing & Developing OnNet Europe (100%) Dialoid (100%) Voice Recognition and Synthesis Technology OnNet Japan (100%)

Daum Service (100%) Daum Service China (100%) Daum CS/ Monitoring Daum Service China YanJiao(100%) Communication Pix View (100%) Local Contents (Roadview) Daum Finger Touch (100%) Digital View Operation(100%) Digital View Operation Daum Global Holdings (100%) Daum Global Asia (100%) New Business Development TNK Factory (75.0%) Mobile Advertising Network Platform Buzzpia (70.4%) Mobile Launcher Service

Daum Games (100%) 2 2Q14 Key Highlights

(Unit: KRW bn) 2Q 13 1Q 14 2Q 14 QoQ QoQ(%) YoY YoY(%) Revenues 129.7 127.1 138.9 +11.9 +9.3% +6.4 +4.8% Search 65.6 64.7 66.6 +1.9 +3.0% +1.0 +1.5% Display 57.0 52.6 63.8 +11.3 +21.5% +6.9 +12.1% Game 8.6 7.8 7.0 -0.8 -10.4% -1.6 -18.8% Transactions 1.2 1.3 1.4 +0.1 +7.6% +0.2 +17.1% Other Subsidiaries 0.2 0.8 0.1 -0.6 -84.3% -0.1 -37.9% Operating Expenses 108.7 111.9 122.3 +10.4 +9.3% +13.6 +12.5% Operating Profit 23.9 15.2 16.6 +1.4 +9.5% -7.2 -30.2% Operating Margin (%) 18.0% 12.0% 12.0% EBITDA 33.4 25.0 27.2 +2.2 +8.7% -6.3 -18.7% Net Profit 17.6 8.3 13.6 +5.3 +63.0% -4.0 -22.7%

. Revenue - 2Q revenue was up 4.8% YoY due to the increase of ad network revenue, mobile ad revenue and special event effect

. Operating Profit - Total operating expenses increased 10.4bn KRW QoQ mainly due to the higher TAC from expanded ad network revenue, increase in game marketing expense and increase in sports contents outsourcing fee

3 Revenue Trend

(Unit: KRW bn , % of Revenue)

Yearly Revenue Trend Quarterly Revenue Trend

350 421 453 531 133 130 144 127 139

0.9%0.1% 0.1% 5.8% 5.0%1.0% 0.1% 0.2% 0.1% 0.9% 6.6%1.1% 0.6% 1.0% 6.5% 6.1%1.0% 6.3%

1.8%0.1% 0.7% 7.5% 2.2% 46.6% 1.6% 43.0% 42.8% 41.4% 43.4% 46.0% 3.1%1.5% 1.5%

49.2% 50.6%

42.7%

49.4% 49.5% 50.9% 46.6% 47.9% 46.3% 40.0% 49.1% 51.3%

2010 2011 2012 2013 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14

Search Ads Display Ads Game Transactions Other Subsidiaries 4 Expense Trend (% of Revenue)

(Unit: KRW bn , % of Revenue)

Yearly Expenses Trend Quarterly Expenses Trend

254 305 352 449 102 109 109 129 112

2.7% 2.5% 2.7% 16.6% 2.6% 2.5% 16.0% 2.5% 16.6%

15.7% 5.6% 15.8% 3.1% 16.0% 4.9% 5.9% 5.8% 5.4% 2.8% 2.5% 14.1% 5.0% 4.0% 4.9% 2.4% 6.5% 3.9% 5.2% 2.6% 14.7% 26.6% 2.7% 26.6% 26.3% 12.3% 5.6% 23.8% 22.0% 24.6% 5.8% 3.7% 17.5% 5.0% 14.6% 2.0% 1.6% 1.6% 1.7% 1.5% 14.4% 1.6% 1.7% 7.6% 2.0% 7.9% 7.5% 7.4% 7.7% 2.2% 7.2% 7.7% 6.4% 5.0% 4.3% 4.2% 4.6% 5.1% 6.9% 4.3% 4.1% 4.6% 4.4% 20.1% 20.1% 18.5% 21.3% 20.0% 19.0% 18.1% 18.9% 18.8%

2010 2011 2012 2013 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14

Labor costs Fringe benefits D&A Rental fees Commissions

Marketing Outsourcing fees Ad Agency fees Others 5 Market Outlook

(Unit: KRW bn, % )

Online Ad Market Mobile Ad

2,170 2,397 2,618 2,913 2,170 2,397 2,618 2,913

892 631 938 416 216 (24%) (31%) 840 (10%) (17%) 777 750

1,981 1,987 2021 1,975 1,954 1,778 1,620 1,420

2012 2013 2014(F) 2015(F) 2012 2013 2014(F) 2015(F)

Search Ad Display Ad Mobile PC

(Source: Cheil worldwide, Daum) 6 Search Ad

Improvements on Search Service

• Plans to launch various search services that focus on identifying the needs of search users to provide the most optimal information.

Standard Content Collections Daum Instant Answer Real-time Music Search

ex) Weather of USA in April ex) Size of Seoul Music broadcasted on TV or Radio

Real time

7 Search Ad

Search Ad Network

• More than 200 Search Ad network partners(publishers)including Nate, Bing, Zum • ROI of advertisers improved more than 50% compare to Overture platform due to the quality control of platform

daum.net nate.com Search Ad Network(Publishers)

Paid Search Listings by Daum SA Platform

8 Display Ad

Expansion of Video Ad

• Due to increasing demand in mobile video contents, expansion of those area will be followed by strengthening partnership with terrestrial broadcasts. • Strengthens advertising product lineup intended for devices(PC and mobile) and video contents(VOD, Live broadcast, etc.)

Video Content Video Ad Product (In-stream)

TV channel(MBC, KBS, SBS, EBS Cable TVs etc.) RMC Sports (K league, Road FC etc) Game (Ongame.net , FiFA online 3 etc.) Life/ Entertainment/ Education VOD Bumper Ad UCC User Created contents through Daum TV Pot Pre Post Daum Daum Producing Contents roll roll Ad Ad

Cable TV (News Y, YTN, OngameNet, JTBC etc.) RMC Sports (MLB, UEFA, Bundesliga etc.) LIVE UCC User live streaming

※ Price : CPM (6,000-10,000 KRW) or Bundle Purchase Beginning Middle Ending

9 Display Ad

Integrated Mobile Advertising Platform

【CPM. CPC】 【CPA】

Ad@m TNK Ad network Cash Slide(NBT Partners)

No.1 Mobile Branding Ad Platform Acquisition in July 1, 2013 Strategic Alliance in June, 2013 9,100 Partners & 16bn Monthly PV 2,000 Partners & 100mn Downloads Smart phone lock screen ad platform (Including Mobile Daum) Specialized in game reward apps 10mn downloads

“View Content “Unlock or Ads” the screen“ Slide Slide

Reward Ad platform Cashslide Ad

10 Display Ad

Daum Display Network (DDN)

• Bidding based CPC display advertising product which enables advertisers to display their targeting ads on high quality sites including Daum and 60 publishers’ websites such as Afreeca TV, Zum, Nate and etc. (Launched in March 2014)

• Targeting technologies for higher ROI : Site retargeting, interest based targeting(Daum Only), profile targeting

Network Power Targeting Solution

[Daum Services]

Site Retargeting User Intention

Media Finance Car Miznet Interest Based Targeting

+ Stripe T-shirt [Network Partners : 40 websites] Shopping Category Search Profile Targeting

Gender Age Location Nate Zum Joins afreeca 11 Service_Mobile

Mobile Daum

• Premium contents for attracting mobile users and enhancing the activity rate

Story Ball Webtoon Sports contents

• Exclusive mobile optimized • Webtoon app downloads • Various sports contents contents on various themes exceeds 6mn includes EPL, Bundesliga, • 154 stories & 3,200 episodes UEFA Champions League, available MLB, and etc.

12 Service_Mobile

Buzz Launcher

• SNS based launcher service allows users to create and share their home screens • Since its official launch in June 2013, the number of users has steadily grown and the app downloads exceeds 9mn.

Buzz Launcher Downloads

10.0 9mn Widget

8.0

6.0

4.0

Icons & Apps 2.0

Dock bar

Homepack buzz : 0.0 Layout settings & Wall paper Home screen sharing platform

• No. of Buzz homepacks: 450,000 • No. of Buzz homepacks downloads: 70,000,000 13 Service_Mobile

Marketing Alliance for Buzz Launcher

• Focuses on the increase of users through Daum in Korea and Yahoo in Japan. • Co-markets and produces hompack on popular subjects with various partners (ex. SKT, YG Entertainments, etc.)

Buzz Launcher in Daum Homepack with partners

Buzz launcher for Expedia Buzz launcher for SKT (Gianna Jun)

Opened Buzz Laucher section in Mobile Daum

14 Service_Game

Game Publishing Strategy • Plans to publish three large scale online PC games in 2014 (June: PS2, 2H : Black Deserts, Winning Putt) • Strengthens Daum’s young user base which leads to attracting advertisers • Seeks opportunities in competitive mobile game market while leveraging traffic with PC games

2014 PC Online Game Line-up Black Deserts

Black Deserts Winning Putt PlanetSide2 (MMORPG) (Sports-Golf) (MMOFPS) • Developer : Pearl Abyss

• Main Features : - Strong non-targeting action with seamless movement - Variety of contents (Open world) - Reality of graphic design

• Schedule - CBT : 1st CBT Oct 2013 /2nd CBT May 2014 - OBT : 2H 2014

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