Ncsoft (036570 KS) Long-Awaited Mobile Games Strategy to Be Unveiled

NCsoft (036570 KS) Long-awaited mobile games strategy to be unveiled

Game Solid earnings expected in 3Q-4Q In 3Q, we believe royalty income from Blade & Soul China declined QoQ, as the title’s Company Update user indicators have failed to pick up even after its official launch in August. November 4, 2014 Lineage I revenue likely recovered QoQ, boosted by a microtransaction event. Marketing expenses likely fell compared to 2Q, when the company spent heavily on several new releases (WildStar and Blade & Soul Japan ). (Maintain) Buy For 3Q, we forecast revenue and operating profit to come in at W207.3bn (+22% YoY) Target Price (12M, W) 220,000 and W67.1bn (+118% YoY), respectively. We expect revenue to continue to grow in 4Q, supported by multiple microtransaction events for Lineage . Share Price (11/03/14, W) 147,000 New titles & mobile games strategy to be unveiled at G-Star 2014 Expected Return 50% NCsoft will have a significant presence at the annual game trade show, G-Star, which is set to begin in Busan on November 20 th . The company will also hold a premiere event in

Seoul two days before the show’s opening. OP (14F, Wbn) 248 Consensus OP (14F, Wbn) 251 At G-Star 2014, NCsoft is expected to build anticipation for upcoming releases , including Master X Master (MXM) and Lineage Eternal , and provide a clearer picture on its mobile EPS Growth (14F, %) 49.8 games strategy. Market EPS Growth (14F, %) 3.7 P/E (14F, x) 13.5 We see two possible strategies for mobile games. The company could go multi-platform, Market P/E (14F, x) 12.5 releasing both mobile and PC versions of blockbuster games (MXM and Lineage Eternal ), KOSPI 1,952.97 or it could debut a separate lineup for middle-core and hardcore mobile games on which Market Cap (Wbn) 3,224 the firm’s 200 mobile game developers have been working. Given NCsoft’s expertise in Shares Outstanding (mn) 22 high-resolution MMORPG, we have high hopes that new, high-quality mobile games will Free Float (%) 75.9 be unveiled. Foreign Ownership (%) 38.4 Maintain Buy and TP of W220,000 Beta (12M) 0.46 52-Week Low 123,500 NCsoft shares sold off this year, after initially high expectations for Blade & Soul China 52-Week High 248,500 were displaced by disappointment.

(%)(%)(%) 1M1M1M 6M6M6M 12M12M12M We believe the company’s asset holdings , which include W750bn in cash, W300bn in Absolute 17.6 -27.6 -30.0 treasury stock, and W600bn in property, will provide some downside support to shares. Relative 19.0 -27.3 -26.9 NCsoft’s robust assets, combined with a consistently stable cash flow and a potential increase in dividend payout, could shed renewed light on the company’s underlying 130 NCsoft KOSPI value. We maintain Buy on NCsoft with a target price of W220,000. 110

50 10.13 2.14 6.14 10.14

Daewoo Securities CCo.,o., Ltd. FY (Dec.) 12/11 12/12 12/13 12/14F 12/15F 12/16F Revenue (Wbn) 609 754 757 817 906 1,049 [Internet/Game/Entertainment] OP (Wbn) 136 151 205 248 289 326

Chang-kwean Kim OP margin (%) 22.3 20.0 27.1 30.4 31.9 31.1 +822-768-4321 NP (Wbn) 121 156 159 238 256 288 [email protected] EPS (W) 5,529 7,120 7,245 10,851 11,696 13,144

Jeong-yeob Park ROE (%) 14.6 16.8 14.8 19.0 17.2 16.5 +822-768-4124 P/E (x) 55.6 21.1 34.3 13.5 12.6 11.2 [email protected] P/B (x) 7.0 3.0 4.4 2.2 1.9 1.6 Notes: All figures are based on consolidated K-IFRS; NP refers to net profit attributable to controlling interests 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 APPENDIX 1 AT THE END OF REPORT.

November 4, 2014 NCsoft

Table 111.1. Quarterly and annual earnings (Wbn, %) 1Q131Q131Q13 2Q132Q132Q13 3Q133Q133Q13 4Q134Q134Q13 1Q141Q141Q14 2Q142Q142Q14 3Q14F 4Q14F 201220122012 201320132013 2014F2014F2014F Revenue 185 192 170 210 178 214 207 218 754 757 817 Lineage I 66 85 62 75 41 57 67 77 205 288 242 Lineage II 14 14 13 16 12 14 14 15 65 57 54 Aion 28 23 23 22 22 18 19 19 141 96 79 Blade & Soul 17 14 20 18 19 19 20 19 62 69 78 Guild Wars 2 36 29 24 34 25 22 22 34 165 123 103 WildStar - - - - - 28 15 9 - - 52 Royalties 11 13 10 32 45 38 27 26 64 66 136 Other 13 14 17 14 14 18 23 19 51 58 74 Revenue breakdown Lineage I 35.7 44.2 36.7 35.6 23.0 26.6 32.3 35.3 27.2 38.0 29.6 Lineage II 7.7 7.4 7.7 7.4 6.5 6.3 6.5 7.1 8.6 7.6 6.6 Aion 15.3 12.1 13.3 10.3 12.5 8.6 9.2 8.7 18.8 12.7 9.6 Blade & Soul 8.9 7.4 12.0 8.5 10.8 8.9 9.7 8.8 8.2 9.1 9.5 Guild Wars 2 19.7 15.1 14.4 16.0 14.1 10.4 10.7 15.4 21.9 16.3 12.6 WildStar - - - - - 13.1 7.2 4.0 - - 6.3 Royalties 5.8 6.8 5.8 15.4 25.0 17.6 13.2 12.2 8.5 8.7 16.6 Other 6.9 7.1 10.1 6.8 8.1 8.4 11.1 8.6 6.7 7.6 9.1 Operating profit 56 62 31 57 45 65 67 72 151 205 248 OP margin 30.0 32.4 18.1 27.0 25.0 30.4 32.4 33.0 20.1 27.1 30.4 Net profit 52 34 26 46 37 53 72 77 154 159 238 Net margin 28.3 17.8 15.5 21.8 20.5 24.8 34.7 35.2 20.4 21.0 29.1 YoYYoYYoY growth Revenue 31.0 30.8 -6.8 -25.9 -3.6 11.4 22.1 3.6 23.8 0.4 7.9 Lineage I 51.3 45.1 62.7 15.2 -37.9 -32.9 7.3 2.7 4.9 40.3 -16.1 Lineage II -22.8 -15.5 -1.8 -5.4 -18.5 -5.1 4.0 -1.0 -35.3 -12.2 -5.2 Aion -46.6 -36.0 -16.1 -13.7 -21.4 -21.1 -15.3 -12.9 -36.7 -32.2 -18.0 Blade & Soul - - -37.8 -33.5 16.5 35.2 -1.3 6.9 - 10.8 12.6 Guild Wars 2 - - -46.6 -71.8 -30.9 -23.1 -9.3 0.0 - -25.2 -16.4 Royalties -29.5 -23.9 -34.0 92.1 314.9 188.4 177.8 -18.1 13.3 2.9 106.2 Operating profit 348.4 -660.3 -16.5 -49.9 -19.8 4.3 118.3 26.6 12.3 35.7 21.0 Net profit 321.7 -537.4 -44.2 -55.2 -30.1 54.8 173.1 67.5 28.3 3.2 50.0 QoQQoQQoQ growth Revenue -34.8 3.9 -11.6 23.7 -15.2 20.0 -3.1 5.0

Lineage I 1.8 28.4 -26.5 20.0 -45.1 38.7 17.6 14.8 Lineage II -13.6 0.6 -8.7 19.2 -25.5 17.1 0.0 13.5 Aion 12.9 -17.8 -2.8 -4.4 2.8 -17.4 4.4 -1.7 Blade & Soul -38.7 -14.3 43.5 -11.9 7.5 -0.5 4.7 -4.6 Guild Wars 2 -69.4 -20.6 -15.3 37.1 -25.1 -11.6 0.0 51.0 Royalties -36.2 21.3 -24.4 228.0 37.9 -15.7 -27.2 -3.3 Operating profit -51.0 12.1 -50.6 84.7 -21.5 45.9 3.3 7.1 Net profit -48.7 -34.6 -23.1 73.8 -20.0 44.7 35.6 6.6 Notes: All figures are based on consolidated K-IFRS Source: Company data, KDB Daewoo Securities Research estimates

Table 222.2. Earnings forecast revisions (Wbn, W, %, %p) Previous Revised % chg. 2014F2014F2014F 2015F2015F2015F 2014F2014F2014F 2015F2015F2015F 2014F2014F2014F 2015F2015F2015F Revenue 850 963 817 906 -3.9 -5.9 Operating profit 260 317 248 289 -4.6 -8.8 Pretax profit 303 342 291 314 -4.0 -8.2 Net profit 247 279 238 256 -3.6 -8.2 EPS 11,282 12,745 10,851 11,696 -3.8 -8.2 OP margin 30.6 32.9 30.4 31.9 -0.2 -1.0 Net margin 29.1 29.0 29.1 28.3 0.1 -0.7 Notes: All figures are based on consolidated K-IFRS Source: Company data, KDB Daewoo Securities Research estimates

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November 4, 2014 NCsoft

Figure 111.1. Activision BlizzardBlizzard’’’’ss gamegamegame sales by platform Figure 222.2. EAEAEA’EA ’’’ss gamegamegame sales by platform

(US$bn) PC Multi-player online gaming Console Hand-held (US$bn) Other PC Console Cellular handset 5 5

4 4

3 3

2 2

1 1

0 0 FY08 FY09 FY10 FY11 FY12 FY13 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

Source: Company data, KDB Daewoo Securities Research Source: Company data, KDB Daewoo Securities Research

Figure 333.3. Activision BlizzardBlizzard’’’’ss ss shares hare price gained momentum Figure 444.4. EAEAEA’EA ’’’ss ss shares hare price momentum alsoalsoalso started with mobile when it expanded into the mobile platform business expansion

(US$) (US$) 30 Share price 70 Share price

25 Surge in share price started when 60 developerexpanded into the mobile platform, having formerly focused on PC/console platforms. 50 20 Surge in share price started when developer expanded into the mobile 40 platform, having formerly focused on 15 PC/console platforms. 30 10 20

5 10

0 0 1/08 7/08 1/09 7/09 1/10 7/10 1/11 7/11 1/12 7/12 1/13 7/13 1/14 7/14 1/08 7/08 1/09 7/09 1/10 7/10 1/11 7/11 1/12 7/12 1/13 7/13 1/14 7/14

Source: Thomson Reuters, KDB Daewoo Securities Research Source: Thomson Reuters, KDB Daewoo Securities Research

Figure 555.5. NetEaseNetEase’’’’ssss mobile expansion and share price trends

(US$) Started to release 100 Share price globally successful titles such as Ninja Must Die 2 and World Soccer Collection Announced strategy 80 to expand into mobile platform during 1Q13 earnings release

60 Announced intention to further expand 40 mobile games Release of three mobile games, portfolio including mobile version of well-known MMORPG 20 Westward Journey Focused only on PC MMORPG Launch of TCG Mini Westward Journey 0 1/10 7/10 1/11 7/11 1/12 7/12 1/13 7/13 1/14 7/14

Source: Thomson Reuters, Company data, KDB Daewoo Securities Research

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November 4, 2014 NCsoft

NCsoft (036570 KS/Buy/TP: W220,000)

Comprehensive Income Statement (Summarized) Statement of Financial Condition (Summarized) (Wbn) 12/13 12/14F 12/15F 12/16F (Wbn) 12/13 12/14F 12/15F 12/16F Revenue 757757757 817817817 906906906 1,0491,0491,049 Current Assets 786786786 1,0641,0641,064 1,3661,3661,366 1,7171,7171,717 Cost of Sales 220220220 228228228 252252252 292292292 Cash and Cash Equivalents 123 348 573 798 Gross Profit 537537537 589589589 654654654 757757757 AR & Other Receivables 83 91 101 116 SG&A Expenses 331331331 341341341 364364364 430430430 Inventories 1 1 1 1 Operating Profit (Adj) 205205205 248248248 289289289 326326326 Other Current Assets 579 624 691 802 Operating Profit 205205205 248248248 289289289 326326326 NonNonNon-Non ---CurrentCurrent Assets 694694694 667667667 645645645 630630630 NonNonNon-Non ---OperatingOperating Profit 111111 434343 252525 393939 Investments in Associates 23 25 27 31 Net Financial Income 16 22 29 38 Property, Plant and Equipment 248 223 200 181 Net Gain from Inv in Associates 4 4 4 4 Intangible Assets 112 107 102 98 Pretax Profit 216 291 314 365 Total Assets 1,4801,4801,480 1,7301,7301,730 2,0112,0112,011 2,3462,3462,346 Income Tax 58 53 57 77 Current Liabilities 252252252 272272272 301301301 348348348 Profit from Continuing Operations 159 238 256 288 AP & Other Payables 23 24 27 31 Profit from Discontinued Operations 0 0 0 0 Short-Term Financial Liabilities 3 3 3 3 Net Profit 159 238 256 288 Other Current Liabilities 226 245 271 314 Controlling Interests 159 238 256 288 NonNonNon-Non ---CurrentCurrent Liabilities 696969 747474 818181 939393 Non-Controlling Interests 0 0 0 0 Long-Term Financial Liabilities 5 5 5 5 Total Comprehensive Profit 148148148 238238238 256256256 288288288 Other Non-Current Liabilities 64 69 76 88 Controlling Interests 151 242 261 294 Total Liabilities 321321321 346346346 382382382 441441441 Non-Controlling Interests -3 -5 -5 -6 Controlling Interests 1,1411,1411,141 1,3681,3681,368 1,6121,6121,612 1,8881,8881,888 EBITDA 241 279 316 350 Capital Stock 11 11 11 11 FCF (Free Cash Flow) 135 284 307 350 Capital Surplus 221 221 221 221 EBITDA Margin (%) 31.8 34.1 34.9 33.4 Retained Earnings 1,017 1,243 1,487 1,764 Operating Profit Margin (%) 27.1 30.4 31.9 31.1 NonNonNon-Non ---ControllingControlling Interests 181818 171717 171717 171717 Net Profit Margin (%) 21.0 29.1 28.3 27.5 Stockholders' Equity 1,1591,1591,159 1,3851,3851,385 1,6291,6291,629 1,9051,9051,905

Cash Flows (Summarized) Forecasts/Valuations (Summarized) (Wbn) 12/13 12/14F 12/15F 12/16F 12/13 12/14F 12/15F 12/16F Cash Flows from Op Activities 236 284 307 350 P/E (x) 34.3 13.5 12.6 11.2 Net Profit 159 238 256 288 P/CF (x) 21.1 10.8 10.4 9.3 Non-Cash Income and Expense 99 59 52 60 P/B (x) 4.4 2.2 1.9 1.6 Depreciation 29 25 22 20 EV/EBITDA (x) 19.9 8.2 6.4 4.8 Amortization 6 5 5 4 EPS (W) 7,245 10,851 11,696 13,144 Others 64 29 25 36 CFPS (W) 11,778 13,556 14,068 15,868 Chg in Working Capital -16 15 24 38 BPS (W) 56,765 67,033 78,183 90,780 Chg in AR & Other Receivables -9 -6 -10 -15 DPS (W) 600 600 600 600 Chg in Inventories 1 0 0 0 Payout ratio (%) 7.5 5.0 4.7 4.2 Chg in AP & Other Payables 1 1 1 1 Dividend Yield (%) 0.2 0.4 0.4 0.4 Income Tax Paid ---26 -262626 ---53-535353 ---57-575757 ---77-777777 Revenue Growth (%) 0.4 7.9 10.9 15.8 Cash Flows from Inv Activities -214 -46 -68 -109 EBITDA Growth (%) 26.8 15.8 13.3 10.8 Chg in PP&E -101 0 0 0 Operating Profit Growth (%) 35.8 21.0 16.5 12.8 Chg in Intangible Assets -1 0 0 0 EPS Growth (%) 1.8 49.8 7.8 12.4 Chg in Financial Assets -112 -46 -68 -109 Accounts Receivable Turnover (x) 9.6 9.7 9.8 10.0 Others 000 000 000 000 Inventory Turnover (x) Cash Flows from Fin Activities -17 -12 -12 -12 Accounts Payable Turnover (x) 30.9 29.1 29.5 30.1 Chg in Financial Liabilities -15 0 0 0 ROA (%) 11.4 14.8 13.7 13.2 Chg in Equity 1 0 0 0 ROE (%) 14.8 19.0 17.2 16.5 Dividends Paid -12 -12 -12 -12 ROIC (%) 42.6 93.4 135.0 200.7 Others 999 000 000 000 Liability to Equity Ratio (%) 27.7 25.0 23.5 23.2 Increase (Decrease) in Cash 0 224 225 225 Current Ratio (%) 311.9 391.6 454.3 493.7 Beginning Balance 123 123 348 573 Net Debt to Equity Ratio (%) Ending Balance 123123123 348348348 573573573 798798798 Interest Coverage Ratio (x) Source: Company data, KDB Daewoo Securities Research estimates

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November 4, 2014 NCsoft

APPENDIX 1

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

Company (((Code)(Code)Code)Code) DateDateDate RatingRatingRating Target Price (W) NCsoft NCsoft(036570) 07/16/2014 Buy 220,000 500,000 05/18/2014 Buy 280,000 400,000 11/26/2013 Buy 310,000 04/25/2013 Buy 250,000 300,000 02/05/2013 Buy 200,000 200,000 12/17/2012 Buy 280,000 11/07/2012 Buy 310,000 100,000

09/27/2012 Buy 420,000 0 Nov 12 Nov 13 Nov 14

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.

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 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

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November 4, 2014 NCsoft

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