KT Skylife (053210 KS) Challenging Market Environment and Lack of Positive Catalysts

KT Skylife (053210 KS) Challenging market environment and lack of positive catalysts

Media 4Q15 review: Service revenue weak, but platform revenue better than expected KT Skylife reported 4Q15 earnings that slightly topped our expectations and the Results Comment consensus. January 27, 2016 Positives: Platform revenue was stronger than expected, as the addition of T-commerce channels boosted shopping channel transmission commissions. Thanks to increased revenue from the high-margin platform business, overall operating profit improved 10% (Downgrade) Trading Buy YoY. Non-operating expenses also declined YoY, contributing to an improvement in net profit. Target Price (12M, W) 17,000 Negatives: Service revenue contracted QoQ and YoY due to a simultaneous decline in the number of subscribers (QoQ) and ARPU. The fall in ARPU comes despite the fact Share Price (01/26/16, W) 14,900 that the mix of Olleh TV Skylife (OTS; a bundled package from KT IPTV and KT Skylife), which has a below-average ARPU, is declining, while the mix of UHD offerings, which Expected Return 14% have above-average ARPU, is steadily increasing. Meanwhile, the company declared a 2015 cash dividend of W350 per share. The company did not increase its dividends because its net profit growth was largely due to one-time reversals of expenses. OP (15F, Wbn) 98 Consensus OP (15F, Wbn) 97 Unfavorable market environment and limited DCS and UHD effects

EPS Growth (15F, %) 33.8 Market environment: April will likely mark a major inflection point for the domestic pay- Market EPS Growth (15F, %) 20.4 TV market, as SK Telecom (SKT), the largest domestic telco, is set to take over CJ P/E (15F, x) 11.1 HelloVision, the largest domestic cable operator. If the deal goes through, the domestic Market P/E (15F, x) 11.1 pay-TV market is likely to become a two-horse race between KT affiliates (combined KOSPI 1,871.69 subscriber m/s of 30%) and SKT affiliates (27% m/s).

Market Cap (Wbn) 713 Wired/wireless integration: With domestic LTE penetration now exceeding 70%, we Shares Outstanding (mn) 48 believe mobile video services will become even more important. And as bundled Free Float (%) 49.4 packages between wired and wireless services become more widespread in the pay-TV Foreign Ownership (%) 18.3 industry, investor attention will likely fall on companies that can generate business Beta (12M) 0.97 synergies from such integration. In this context, we think telcos owning IPTV businesses 52-Week Low 14,100 are better positioned to take the lead in the pay-TV market. 52-Week High 23,900 DCS/UHD: KT Skylife’s services are optimized to real-time TV broadcasts, rather than (%)(%)(%) 1M1M1M 6M6M6M 12M12M12M mobile. And the company has focused on standalone satellite services since 2H15. The company’s dish convergence solution (DSC), which was supposed to begin this year, has Absolute -14.6 -34.2 -10.0 been approved only for shadow zones, meaning the impact on subscriber attraction will Relative -9.2 -28.1 -6.9 likely be limited. Meanwhile, UHD broadcasting is becoming more widely adopted , but it

150 KT Skylife KOSPI will likely take some time for it to have an actual impact on service ARPU.

130 Downgrade to Trading Buy and Cut TP to W17,000 110 We downgrade our rating on KT Skylife to Trading Buy (from Buy) and cut our target

90 price to W17,000 (from W25,000), reflecting a lower P/E multiple. In 2016, earnings are expected to decline YoY due to the dissipation of last year’s one-time items. In addition, 70 1.15 5.15 9.15 1.16 the company could fall behind the broader trends reshaping the industry, while DCS and UHD are unlikely to serve as any meaningful share catalysts. Daewoo Securities CCo.,o., Ltd. FY (Dec.) 12/12 12/13 12/14 12/15F 12/16F 12/17F Revenue (Wbn) 551 600 623 626 648 663 [Telecom Service / Media] OP (Wbn) 67 102 78 98 87 90

Jee-hyun Moon OP margin (%) 12.2 17.0 12.5 15.7 13.4 13.6 +822-768-3615 NP (Wbn) 56 73 56 74 67 69 [email protected] EPS (W) 1,178 1,526 1,162 1,554 1,395 1,438 ROE (%) 17.6 19.3 13.2 16.0 12.9 12.1 Nu-ri Ha +822-768-4130 P/E (x) 28.4 19.4 15.8 11.1 10.7 10.4 [email protected] P/B (x) 4.6 3.4 2.0 1.7 1.3 1.2 Notes: All figures are based on non-consolidated K-IFRS Source: Company data, KDB Daewoo Securities Research estimates

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 APPENDAPPENDIXIX 1 AT THE END OF REPORT.

January 27, 2016 KT Skylife

Earnings and forecasts

TableTableTable 111.1... 4Q15P review (Wbn, %) 4Q15P Growth 444Q144Q14Q14Q14 333Q13Q1Q1Q15555 Preliminary KDB Daewoo Consensus YoYYoYYoY QoQQoQQoQ

Revenue 156 161 164 161 159 5.1 2.1 Operating profit 21 14 23 22 22 9.8 66.0 OP margin 13.2 8.5 13.8 13.7 13.6 Net profit 13 9 18 15 17 38.7 101.6 Notes: All figures are based on non-consolidated K-IFRS, Source: Company data, FnGuide, KDB Daewoo Research estimates

TableTableTable 222.2. Quarterly and annual earnings (Wbn, %) 1Q151Q151Q15 2Q152Q152Q15 3Q153Q153Q15 4Q154Q154Q15P4Q15 PPP 1Q161Q161Q16F1Q16 FFF 2Q162Q162Q16F2Q16 FFF 3Q163Q163Q16F3Q16 FFF 4Q164Q164Q16F4Q16 FFF 201420142014 201520152015 2016F2016F2016F Revenue 147 154 161 164 160 161 163 164 623 626 648 Service 90 89 89 88 88 89 87 86 378 356 351 Platform 34 39 43 46 46 46 48 50 130 162 191 Cost-related 11 11 13 12 12 12 11 10 53 47 46 Other 13 14 17 18 13 14 17 18 62 62 62 Operating profit 30 31 14 23 33 23 14 17 78 98 87 OP margin 20.6 20.1 8.5 13.8 20.6 14.5 8.4 10.2 12.5 15.7 13.4 Net profit 22 26 9 18 25 18 10 13 56 74 67 Net margin 14.7 16.7 5.6 11.0 15.6 11.0 6.4 8.0 8.9 11.8 10.3 QoQ growth Revenue -5.6 4.3 4.5 2.1 -2.7 1.0 1.2 0.4 Service -1.9 -0.3 -0.8 -0.9 0.2 0.6 -1.4 -1.1 Platform -1.8 15.2 8.5 9.4 0.0 0.0 3.0 3.8 Cost-related -14.4 4.4 17.4 -5.0 -2.1 0.0 -5.0 -10.5 Operating profit 47.7 1.8 -56.0 66.0 45.4 -29.1 -41.2 22.6 Net profit 65.9 18.5 -65.0 101.6 37.2 -28.8 -40.8 25.0 YoY growth Revenue -2.5 -0.6 0.2 5.1 8.4 4.9 1.6 -0.1 3.7 0.6 3.5 Service -7.1 -6.3 -5.4 -3.8 -1.8 -0.9 -1.6 -1.8 -3.4 -5.7 -1.5 Platform 14.4 26.3 23.1 34.4 36.8 18.7 12.7 6.9 20.8 24.8 17.5 Cost-related -22.0 -18.6 -4.5 -0.4 13.9 9.2 -11.7 -16.8 -1.3 -12.0 -2.3 Operating profit -5.6 80.1 77.0 9.8 8.1 -24.7 0.7 -25.7 -23.6 25.5 -11.3 Net profit -9.2 78.2 118.3 38.7 14.7 -31.1 16.6 -27.7 -23.8 34.1 -11.2 Key variables and

assumptions Cumulative subscribers 4,262 4,292 4,312 4,310 4,318 4,343 4,364 4,376 4,261 4,310 4,376 (‘000 persons) % of OTS subscribers 54 54 53 51 51 50 49 48 55 51 48 Notes: All figures are based on non-consolidated K-IFRS; Assuming recognition of negotiation of home shopping commissions in platform revenue in 3Q16 and expenses related to broadcasting development fund Source: Company data, KDB Daewoo Research estimates

TableTableTable 333.3. Earning forecast revisions (Wbn, W, %) Previous Revised % chg. NotesNotesNotes 202020120 1116666FFFF 202020120 1117777FFFF 202020120 1116666FFFF 202020120 1117777FFFF 202020120 1116666FFFF 202020120 1117777FFFF - Revised up platform revenue estimates, assuming fall in Revenue 635 648 648 663 2.0 2.3 service ARPU will gradually slow - Reflects improvement in margin from higher Operating profit 78 81 87 90 11.5 11.1 platform revenue estimates - Revised down non-operating expenses estimates & Net profit 57 60 67 69 17.5 15.0 revised effective tax rate EPS 1,195 1,255 1,395 1,438 16.7 14.6 OP margin 12.3 12.5 13.4 13.6 Net margin 9.0 9.3 10.3 10.4 Notes: All figures are based on non-consolidated K-IFRS Source: KDB Daewoo Research estimates

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January 27, 2016 KT Skylife

Main points

Figure 111.1. Domestic paypay----TVTV market to become a twotwo----horsehorse race betbetweenween KT and SKT

Source: KCTA, company data, KDB Daewoo Securities Research

Figure 222.2. Sluggish growth in KT Skylife subscribers

('000 persons) (%) 4,350 Number of KT Skylife subscribers (L) 56 Proportion of KT-KT Skylife OTS bundled product (R) 4,300 55

4,250 54

4,200 53

4,150 52

4,100 51 1/14 4/14 7/14 10/14 1/15 4/15 7/15 10/15

Notes: OTS refers to Olleh TV Skylife that is a bundled product of KT IPTV and KT Skylife satellite Source: Company data, KDB Daewoo Securities Research

Figure 333.3. MMMajorMajor paypay----TVTVTVTV stocksstocks’’’’ 121212-12 ---monthmonth ffforwardforward PP/E/E/E/E trending lower

(x) KT Skylife CJ Hellovision 18 Sky Perfect JSAT (JP) Shaw Comms. (CN)

8 1/15 2/15 3/15 4/15 5/15 6/15 7/15 8/15 9/15 10/15 11/15 12/15 1/16

Source: Thomson Reuters, KDB Daewoo Securities Research

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January 27, 2016 KT Skylife

KT Skylife (053210 KS/Trading Buy/TP: W17,000)

Comprehensive Income Statement (Summarized) Statement of Financial Condition (Summarized) (Wbn) 12/14 12/15F 12/16F 12/17F (Wbn) 12/14 12/15F 12/16F 12/17F Revenue 623623623 626626626 648648648 663663663 Current Assets 249249249 286286286 338338338 401401401 Cost of Sales 000 000 000 000 Cash and Cash Equivalents 108 131 168 215 Gross Profit 623623623 626626626 648648648 663663663 AR & Other Receivables 88 93 96 98 SG&A Expenses 545545545 528528528 562562562 573573573 Inventories 3 3 3 4 Operating Profit (Adj) 787878 989898 878787 909090 Other Current Assets 50 59 71 84 Operating Profit 787878 989898 878787 909090 NonNonNon-Non ---CurrentCurrent Assets 421421421 430430430 433433433 423423423 NonNonNon-Non ---OperatingOperating Profit ---9 -999 111 111 111 Investments in Associates 25 26 27 28 Net Financial Income 1 2 3 4 Property, Plant and Equipment 309 297 298 287 Net Gain from Inv in Associates 0 0 0 0 Intangible Assets 39 40 40 41 Pretax Profit 69 99 88 91 Total Assets 670670670 715715715 771771771 824824824 Income Tax 14 24 22 22 Current Liabilities 221221221 148148148 153153153 157157157 Profit from Continuing Operations 56 74 67 69 AP & Other Payables 0 0 0 0 Profit from Discontinued Operations 0 0 0 0 Short-Term Financial Liabilities 80 0 0 0 Net Profit 56 74 67 69 Other Current Liabilities 141 148 153 157 Controlling Interests 56 74 67 69 NonNonNon-Non ---CurrentCurrent Liabilities 131313 747474 747474 757575 Non-Controlling Interests 0 0 0 0 Long-Term Financial Liabilities 0 60 60 60 Total Comprehensive Profit 525252 747474 676767 696969 Other Non-Current Liabilities 13 14 14 15 Controlling Interests 52 74 67 69 Total Liabilities 235235235 222222222 228228228 232232232 Non-Controlling Interests 0 0 0 0 Controlling Interests 436436436 493493493 543543543 593593593 EBITDA 149 174 163 164 Capital Stock 120 120 120 120 FCF (Free Cash Flow) 33 75 68 83 Capital Surplus 161 161 161 161 EBITDA Margin (%) 23.9 27.8 25.2 24.7 Retained Earnings 161 219 269 318 Operating Profit Margin (%) 12.5 15.7 13.4 13.6 NonNonNon-Non ---ControllingControlling Interests 000 000 000 000 Net Profit Margin (%) 9.0 11.8 10.3 10.4 Stockholders' Equity 436436436 493493493 543543543 593593593

Cash Flows (Summarized) Forecasts/Valuations (Summarized) (Wbn) 12/14 12/15F 12/16F 12/17F 12/14 12/15F 12/16F 12/17F Cash Flows from Op Activities 128 153 143 143 P/E (x) 15.8 11.1 10.7 10.4 Net Profit 56 74 67 69 P/CF (x) 5.6 4.5 4.4 4.4 Non-Cash Income and Expense 102 108 95 92 P/B (x) 2.0 1.7 1.3 1.2 Depreciation 68 74 74 71 EV/EBITDA (x) 5.4 4.1 3.3 3.0 Amortization 3 3 3 3 EPS (W) 1,162 1,554 1,395 1,438 Others 31 31 18 18 CFPS (W) 3,287 3,820 3,390 3,361 Chg in Working Capital -6 -19 0 0 BPS (W) 9,266 10,455 11,502 12,532 Chg in AR & Other Receivables 18 -9 -3 -2 DPS (W) 350 350 410 420 Chg in Inventories -3 0 0 0 Payout ratio (%) 30.0 22.4 29.2 29.1 Chg in AP & Other Payables -11 -24 0 0 Dividend Yield (%) 1.9 2.0 2.8 2.8 Income Tax Paid ---25 -252525 ---12-121212 ---22-222222 ---22-222222 Revenue Growth (%) 3.8 0.5 3.5 2.3 Cash Flows from Inv Activities -12 -92 -89 -75 EBITDA Growth (%) -9.7 16.8 -6.3 0.6 Chg in PP&E -94 -78 -75 -60 Operating Profit Growth (%) -23.5 25.6 -11.2 3.4 Chg in Intangible Assets -4 -9 -3 -3 EPS Growth (%) -23.9 33.7 -10.2 3.1 Chg in Financial Assets 90 -5 -11 -12 Accounts Receivable Turnover (x) 6.6 6.9 6.9 6.8 Others ---4 -444 000 000 000 Inventory Turnover (x) 159.3 191.0 189.6 188.6 Cash Flows from Fin Activities -24 -37 -17 -20 Accounts Payable Turnover (x) 0.0 0.0 0.0 0.0 Chg in Financial Liabilities -1 -20 0 0 ROA (%) 8.3 10.7 9.0 8.6 Chg in Equity 0 0 0 0 ROE (%) 13.2 16.0 12.9 12.1 Dividends Paid -22 -17 -17 -20 ROIC (%) 20.6 23.2 20.7 21.8 Others ---1 -111 000 000 000 Liability to Equity Ratio (%) 53.9 45.0 41.9 39.1 Increase (Decrease) in Cash 91 23 37 47 Current Ratio (%) 112.6 192.7 220.6 255.6 Beginning Balance 17 108 131 168 Net Debt to Equity Ratio (%) -16.8 -24.5 -30.8 -38.3 Ending Balance 108108108 131131131 168168168 215215215 Interest Coverage Ratio (x) 21.0 46.8 48.5 50.5 Source: Company data, KDB Daewoo Securities Research estimates

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January 27, 2016 KT Skylife

APPENDIX 1

Important Disclosures & Disclaimers 222-2---YearYear Rating and Target Price History

Company (((Code)(Code)Code)Code) DateDateDate RatingRatingRating Target Price (W) KT Skylife KT Skylife(053210) 01/26/2016 Trading Buy 17,000 40,000 10/27/2015 Buy 25,000 07/28/2015 Buy 29,000 30,000 04/24/2015 Buy 24,000 01/28/2015 Trading Buy 20,000 20,000 10/30/2014 Trading Buy 23,000 10,000 10/05/2014 Trading Buy 25,000

07/28/2014 Buy 29,000 0 04/29/2014 Buy 30,000 Jan 14 Jan 15 Jan 16 11/18/2013 Trading Buy 34,000

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 71.08% 11.76% 17.16% 0.00% * Based on recommendations in the last 12-months (as of December 31, 2015)

Disclosures As of the publication date, Daewoo Securities Co., Ltd and/or its affiliates do not have any special interest with the subjec t 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 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

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January 27, 2016 KT Skylife

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

Daewoo Securities Co. Ltd. (Seoul) Daewoo Securities (Hong Kong) Ltd. Daewoo Securities (America) Inc. Head Office Two International Finance Centre 320 Park Avenue 34-3 Yeouido-dong, Yeongdeungpo-gu Suites 2005-2012 31st Floor

Seoul 150-716 8 Finance Street, Central New York, NY 10022 Korea Hong Kong, China United States Tel: 82-2-768-3026 Tel: 85-2-2845-6332 Tel: 1-212-407-1000 Daewoo Securities (Europe) Ltd. Daewoo Securities (Singapore) Pte. Ltd. Tokyo Branch 41st Floor, Tower 42 Six Battery Road #11-01 7th Floor, Yusen Building 25 Old Broad St. Singapore, 049909 2-3-2 Marunouchi, Chiyoda-ku London EC2N 1HQ Tokyo 100-0005 United Kingdom Japan Tel: 44-20-7982-8000 Tel: 65-6671-9845 Tel: 81-3- 3211-5511

Beijing Representative Office Shanghai Representative Office Ho Chi Minh Representative Office 2401A, 24th Floor, East Tower, Twin Towers Room 38T31, 38F SWFC Suite 2103, Saigon Trade Center B-12 Jianguomenwai Avenue 100 Century Avenue 37 Ton Duc Thang St,

Chaoyang District, Beijing 100022 Pudong New Area, Shanghai 200120 Dist. 1, Ho Chi Minh City, China China Vietnam Tel: 86-10-6567-9299 Tel: 86-21-5013-6392 Tel: 84-8-3910-6000 Daewoo Investment Advisory (Beijing) Co., Ltd. Daewoo Securities (Mongolia) LLC PT. Daewoo Securities Indonesia 2401B, 24th Floor, East Tower, Twin Towers #406, Blue Sky Tower, Peace Avenue 17 Equity Tower Building Lt.50 B-12 Jianguomenwai Avenue, 1 Khoroo, Sukhbaatar District Sudirman Central Business District Jl.

Chaoyang District, Beijing 100022 Ulaanbaatar 14240 Jendral Sudirman Kav. 52-53, Jakarta Selatan China Mongolia Indonesia 12190 Tel: 86-10-6567-9699 Tel: 976-7011-0807 Tel: 62-21-515-1140

KDB Daewoo Securities Research 6