[China] Autos January 21, 2021

NIO Buy (NIO US) (Maintain)

At the forefront of innovation TP: US$70 ▲ Upside: 21.3%

Mirae Asset Daewoo Co., Ltd. Hyunwoo Jin [email protected]

Valuation and recommendation Raise TP to US$70  We added service revenue (battery and autonomous driving) to our estimates for NIO, and revised up our 2021 and 2022 vehicle sales volume forecasts by 3% and 6%, respectively.  Our DCF-derived target price assumes a WACC of 8.2% and a terminal growth rate of 4.5% from 2030.  Shares are trading at a 2022F EV/sales multiple of 12.1x, vs. 13.0x for Tesla and 9.5x for Xpeng.

Investment points The best China-made EVs  NIO plans to release a premium electric sedan called the ET7 (to be delivered in 1Q22). Meanwhile, sales of the EC6, a coupe-style electric SUV, have been strong (2,505 units sold in December).  A version of the ET7 featuring a 150kWh solid-state battery (supplier undecided) and a driving range of over 1,000km is scheduled for release in 4Q22.  The company unveiled its NIO Autonomous Driving (NAD) technology, which will newly adopt chips from Nvidia (vs. Mobileye previously) and deliver stronger computing power.  The company is expanding and upgrading its battery swap stations (from 177 to 500 by year- end) to provide more convenient charging. An evolving business model: Adding service revenue to our estimates  Subscription service revenue from batteries (“battery as a service,” or BaaS) and autonomous driving (NAD) should generate a steady stream of income post-vehicle sales.  We raise our services/other revenue forecasts for 2021-30 from 8-12% to 9-34% of vehicle sales revenue. As this should also lead to margin improvements, we revise up our 2025-30 gross margin estimates from 23.0-23.5% to 24.0-25.0%. An icon of innovation with increasing brand value  As an icon of China’s electric vehicle (EV) innovation, NIO has adopted a bold premium brand strategy and proven its product competitiveness.  Continued improvements in charging convenience, large-capacity batteries, high-performance software, and premium positioning should set the company apart from competitors.

Risks  Delay in 150kWh solid-state battery adoption and weaker-than-expected competitiveness in autonomous driving: While technology development could take some time, we still think the company will maintain its leading position among Chinese firms.  Intensifying competition with foreign brands, production setbacks (reliance on contract manufacturing), and disruptions in component supplies (chips, etc.)

Key data

1200 Current price (1/20/21, US$) 57.71 Market cap (US$bn) 90.8 NIO SPX 1000 Exchange NYSE Market cap (Wtr) 99.8 800 EPS growth (22F, %) - Shares outstanding (mn) 1,292.3 600 P/E (22F, x) - 52-week low (US$) 2.11 400

200 Dividend yield (%) - 52-week high (US$) 66.99

0 18.9 19.4 19.11 20.6 21.1

Share performance Earnings and valuation metrics (%) 1M 6M 12M FY (Dec.) 2017 2018 2019 2020F 2021F 2022F Absolute 23.5 350.2 1135.8 Revenue (CNYmn) 0.0 4,951.2 7,825.4 16,606.9 30,289.2 50,674.7 Relative 19.0 280.0 968.2 OP (CNYmn) -4,953.6 -9,595.6 -11,078.7 -4,965.5 -3,028.9 -760.1

OP margin (%) 0.0 -193.8 -141.6 -29.9 -10.0 -1.5 NP (CNYmn) -7,561.7 -23,327.9 -11,412.6 -5,392.0 -2,871.8 -880.4 EPS (CNY) -241.26 -17.94 -10.79 -4.86 -2.79 -0.85 ROE (%) -167.8 -313.3 -4,247.7 -341.4 -35.8 -14.3 P/E (x) ------Source: Company data, Mirae Asset Daewoo Research estimates Analysts who prepared this report are registered as research analysts in Korea but not in any other jurisdiction, including the US. PLEASE SEE ANALYST CERTIFICATIONS AND IMPORTANT DISCLOSURES AND DISCLAIMERS IN APPENDIX 1 AT THE END OF REPORT. January 21, 2021 NIO

Table 1. NIO: Vehicles sales volume and services revenue forecasts 2019 2020F 2021F 2022F 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F Vehicle sales (units) 20,139 43,728 81,021 137,123 200,200 258,258 317,657 381,189 457,427 548,912 647,716 764,305

Services/other revenue 458 1,251 2,405 4,427 7,410 11,269 16,122 21,956 29,840 40,421 53,813 71,232 (CNYmn) % of vehicle sales revenue 7% 8% 9% 10% 11% 13% 16% 18% 22% 26% 30% 35% BaaS (battery subscriptions) Subscription rate for new 35.0% 40.0% 42.0% 44.0% 47.0% 50.0% 53.0% 58.0% 63.0% 68.0% 73.0% vehicles Newly subscribed vehicles 15,305 32,408 57,592 88,088 121,381 158,829 202,030 265,307 345,815 440,447 557,943 (units) Cum. subscribed vehicles (units) 23,908 56,316 113,908 201,996 323,377 482,206 684,236 949,544 1,295,358 1,735,805 2,293,748 Service ASP/year (CNY) 10,800 11,800 12,200 13,860 14,276 14,704 15,145 15,600 16,068 16,550 17,046 YoY 0.0% 9.3% 3.4% 13.6% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Total revenue (CNYmn) 176 453 1,021 2,058 3,695 5,836 8,704 12,558 17,772 24,717 33,844 NAD (autonomous driving subscriptions) Subscription rate for new 30.0% 40.0% 47.0% 50.0% 53.0% 58.0% 63.0% 68.0% 73.0% vehicles Newly subscribed vehicles 41,137 80,080 121,381 158,829 202,030 265,307 345,815 440,447 557,943 (units) Cum. subscribed vehicles (units) 41,137 121,217 242,598 401,427 603,457 868,765 1,214,579 1,655,026 2,212,969 Services ASP/year (CNY) 8,160 8,405 9,161 9,528 9,909 10,900 11,336 11,789 12,261 YoY 3.0% 9.0% 4.0% 4.0% 10.0% 4.0% 4.0% 4.0% Total revenue (CNYmn) 168 672 1,598 3,009 4,883 7,659 11,581 16,590 23,256 Other As % of vehicle sales 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% Total revenue (CNYmn) 1,075 1,952 3,237 4,679 5,976 7,277 8,368 9,624 11,067 12,506 14,132 Note: Services revenue = cumulative subscribed vehicles x avg. ASP in the current and previous year Source: Mirae Asset Daewoo Research estimates

Table 2. NIO: Annual earnings and forecasts (CNYmn) 2018 2019 2020F 2021F 2022F 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F Revenue 4,951 7,825 16,607 30,289 50,675 74,257 96,639 120,078 141,504 167,321 198,524 232,469 273,114 Vehicle sales 4,852 7,367 15,356 27,884 46,248 66,847 85,370 103,955 119,549 137,481 158,103 178,657 201,882 Services/other 99 458 1,251 2,405 4,427 7,410 11,269 16,122 21,956 29,840 40,421 53,813 71,232 COGS -5,207 -9,024 -14,930 -25,140 -40,793 -57,920 -74,412 -91,259 -107,543 -127,164 -150,878 -174,352 -204,835 GP -256 -1,198 1,677 5,149 9,882 16,336 22,227 28,819 33,961 40,157 47,646 58,117 68,278 Gross margin -5.2% -15.3% 10.1% 17.0% 19.5% 22.0% 23.0% 24.0% 24.0% 24.0% 24.0% 25.0% 25.0% Operating expenses -9,340 -9,880 -6,643 -8,178 -10,642 -14,109 -18,361 -21,614 -24,056 -26,771 -31,764 -32,546 -35,505 R&D -3,998 -4,429 -2,823 -3,635 -5,067 -6,683 -8,698 -9,606 -11,320 -11,712 -13,897 -13,948 -15,021 % of revenue -80.7% -56.6% -17.0% -12.0% -10.0% -9.0% -9.0% -8.0% -8.0% -7.0% -7.0% -6.0% -5.5% SG&A -5,342 -5,452 -3,820 -4,543 -5,574 -7,426 -9,664 -12,008 -12,735 -15,059 -17,867 -18,598 -20,484 % of revenue -107.9% -69.7% -23.0% -15.0% -11.0% -10.0% -10.0% -10.0% -9.0% -9.0% -9.0% -8.0% -7.5% OP (EBIT) -9,596 -11,079 -4,965 -3,029 -760 2,228 3,866 7,205 9,905 13,386 15,882 25,572 32,774 OP margin -193.8% -141.6% -29.9% -10.0% -1.5% 3.0% 4.0% 6.0% 7.0% 8.0% 8.0% 11.0% 12.0% Interest income/expenses 10 -210 -372 -164 -128 -86 -39 29 122 262 456 727 1,108 Net other income -31 2 0 0 0 0 0 0 0 0 0 0 0 PBT -9,617 -11,287 -5,338 -3,193 -888 2,141 3,827 7,233 10,028 13,647 16,338 26,299 33,881 Income tax expenses -22 -8 0 0 0 -64 -383 -1,085 -1,504 -2,047 -2,451 -3,945 -5,082 NP -9,639 -11,296 -5,338 -3,193 -888 2,077 3,444 6,148 8,524 11,600 13,887 22,354 28,799 Net margin -194.7% -144.3% -32.1% -10.5% -1.8% 2.8% 3.6% 5.1% 6.0% 6.9% 7.0% 9.6% 10.5% NP attributable to owners -23,328 -11,413 -5,328 -2,761 -768 1,796 2,978 5,317 7,371 10,031 12,009 19,331 24,904 Minority interests -42 -9 -9 -432 -120 281 466 831 1,153 1,569 1,878 3,023 3,895 EPS (CNY) -17.94 -10.79 -4.80 -2.68 -0.75 1.74 2.89 5.16 7.16 9.74 11.66 18.77 24.18 Source: Company data, Mirae Asset Daewoo Research estimates

Mirae Asset Daewoo Research 2 January 21, 2021

Figure 1. NIO: Monthly vehicle sales volume trend

(Units) 8,000 ES8 ES6 EC6 7,000

6,000

5,000

4,000

3,000

2,000

1,000

0 1/19 2/19 3/19 4/19 5/19 6/19 7/19 8/19 9/19 1/20 2/20 3/20 4/20 5/20 6/20 7/20 8/20 9/20 10/19 11/19 12/19 10/20 11/20 12/20

Source: Company data, Mirae Asset Daewoo Research

Table 3. NIO: Monthly vehicle sales volume outlook (Units) Monthly vehicle sales volume 2020 2021F 2022F ES8 905 1,086 1,195 ES6 2,329 2,795 3,074 EC6 410 2,871 3,158 ET7 4,000 Source: Company data, Mirae Asset Daewoo Research estimates

In 2020, NIO raised a total of CNY29bn (W4.9tr) through two equity issues. We believe the company’s successful capital raising, together with its operating cash flow (expected to turn positive in 2022), will allow it to fund capacity expansions and accelerate technology development and distribution network expansion. NIO outsources its manufacturing to JAC Motors and currently has the capacity to produce 150,000 units annually in two shifts.

Figure 2. NIO: OP and OP margin outlook Figure 3. NIO: Free cash flow outlook

(CNYbn) (CNYbn) 10 6.0% 50% 8 OP (L) 3.0% OP margin (R) 6 0% 5 4 -1.5% 2 -50% 0 0 -100% (2) (5) (4) -150% (6) (10) (8) -200% (10) (15) -250% (12) 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2025F 2016 2017 2018 2019 2020F 2021F 2022F 2023F 2024F 2025F

Source: Company data, Mirae Asset Daewoo Research estimates Source: Company data, Mirae Asset Daewoo Research estimates

Mirae Asset Daewoo Research 3 January 21, 2021

Table 4. NIO: DCF valuation (CNYmn) 2019 2020F 2021F 2022F 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F Terminal

Revenue (CNYmn) 7,825 16,607 30,289 50,675 74,257 96,639 120,078 141,504 167,321 198,524 232,469 273,114 Tax-effected EBIT -11,071 -4,965 -3,029 -760 2,161 3,479 6,124 8,420 11,378 13,500 21,736 27,858 + Depreciation & amortization 999 1,161 1,212 1,255 1,367 1,332 1,549 1,867 2,210 2,442 2,580 2,700 - Capex & acq. of intangibles -1,707 -1,500 -1,500 -2,000 -2,500 -3,000 -4,000 -4,500 -4,000 -3,500 -3,500 -2,500 + Decrease in net working capital 703 888 1,006 1,800 1,914 2,439 2,389 2,527 3,045 3,681 3,101 4,637 FCF -11,076 -4,416 -2,311 295 2,942 4,250 6,062 8,314 12,633 16,123 23,917 32,694 917,793 PV of FCF -4,416 -2,135 252 2,321 3,098 4,084 5,175 7,266 8,568 11,745 14,835

WACC 8.2%

NPV of FCF 2020-30F (CNYmn) 50,792 Cost of debt 5.5%

NPV of terminal value 416,456 Weight of debt 70.0%

EV 467,248 Tax rate 15.0%

- Net debt -21,137 Cost of equity 16.5%

- Minority interests 9,171 Weight of equity 30.0%

Equity value 479,214

Shares outstanding (mn) 1,030 CAPM 16.5%

Equity value per share (CNY) 465 Risk-free rate 3.0%

Equity value per share (US$) 70.50 Risk premium 9.0%

Target price (US$) 70.00 Beta 1.5

Current price (US$) 57.71

Upside 21.3% Terminal growth rate 4.5% Source: Mirae Asset Daewoo Research estimates

Table 5. NIO: DCF sensitivity analysis (US$)

Terminal growth rate 3.5% 4.0% 4.5% 5.0% 5.5% 7.2% 76 87 102 123 157 7.7% 66 73 84 98 118 WACC 8.2% 57 63 70 80 94 8.7% 50 55 61 68 77 9.2% 45 48 53 58 65 Source: Mirae Asset Daewoo Research estimates

Table 6. Peer valuation table

Price Market cap EV/sales (x) P/S (x) Company Ticker (US$) (US$mn) 2020F 2021F 2022F 2020F 2021F 2022F NIO NIO US 57.71 90,769 36.9 20.2 12.1 37.7 20.7 12.3 Tesla TSLA US 850.45 806,142 25.9 17.2 13.0 25.8 17.1 13.0 Xpeng XPEV US 52.46 41,438 46.0 18.7 9.5 48.9 19.9 10.1 Li Auto LI US 35.60 31,954 19.5 9.2 5.4 22.8 10.8 6.3 Source: Bloomberg, Mirae Asset Daewoo Research estimates

Mirae Asset Daewoo Research 4 January 21, 2021

Figure 4. NIO ET7 exterior

Source: Company materials, Mirae Asset Daewoo Research

Figure 5. NIO ET7 interior

Source: Company materials, Mirae Asset Daewoo Research

Table 7. NIO ET7 vs. competing models ET7 Model S E-Class 5 Series Manufacturer NIO Tesla Mercedes-Benz BMW Price ('000 CNY) 448/506 734 498-680 489-697 Battery capacity (kWh) 70/100 100 ICE ICE Wheelbase (mm) 3060 2960 3079 3105 0 -100km (s) 3.9 3.8 6.1 6.9 Driving range (km, NEDC) 500/700 719 - - New ET7 equipped with 150kWh solid-state battery to be launched in 4Q22 (driving range: Notes 1,000km+); Model S specifications are based on import standards. Source: Company data, ChinaAutoWeb, Mirae Asset Daewoo Research

Mirae Asset Daewoo Research 5 January 21, 2021

Table 8. NIO ET7 price and BaaS subscription fees Standard Long-range Premier Selling price (CNY) 448,000 506,000 526,000 Selling price (W) 76,160,000 86,020,000 89,420,000 Battery capacity (kWh) 70 100 100 Driving range (km, NEDC) 500 700 700 Selling price with BaaS subscription (CNY) 378,000 378,000 398,000 Selling price with BaaS subscription (W) 64,260,000 64,260,000 67,660,000 BaaS monthly subscription fee (CNY) 980 1,480 1,480 BaaS monthly subscription fee (W) 166,600 251,600 251,600 Note: CNY/KRW = 170 Source: Company data, Mirae Asset Daewoo Research

Table 9. NAD subscription fees and breakdown NAD (autonomous driving) Release date 1Q22 (initial delivery of the ET7) NAD monthly subscription fee (CNY) 680 NAD monthly subscription fee (W) 115,600 NAD breakdown 33 high-performance sensors (11 8MP cameras, one 1550nm LiDAR sensor, five 1) NIO Aquila Super Sensing mmWave radar sensors, etc.) 2) NIO Adam Super Computing Four Nvidia Drive Orin chips; total computing power of 1,016 TOPS Note: CNY/KRW=170 Source: Company data, Mirae Asset Daewoo Research

Figure 6. No. of Power Swap Station 2.0 sites: 177  500 by year-end

Source: Company materials, Mirae Asset Daewoo Research

Mirae Asset Daewoo Research 6 January 21, 2021

NIO (NIO US)

Income statement (summarized) Balance sheet (summarized) (CNYmn) 2019 2020F 2021F 2022F (CNYmn) 2019 2020F 2021F 2022F Revenue 7,825 16,607 30,289 50,675 Current assets 4,928 40,053 40,418 44,709 COGS -9,024 -14,930 -25,140 -40,793 Cash & equivalents 974 34,269 32,420 31,707 GP -1,198 1,677 5,149 9,882 Accounts receivable 1,352 1,820 2,490 4,165 Operating expenses -9,880 -6,643 -8,178 -10,642 Inventory 890 1,473 2,480 4,023 EBITDA -10,080 -3,804 -1,817 495 Other current assets 1,713 2,491 3,029 4,814 EBIT -11,079 -4,965 -3,029 -760 Non-current assets 9,654 10,050 10,398 11,205 Net interest income/expenses -210 -372 -164 -128 PP&E & intangibles 7,741 8,080 8,368 9,113 Net other income 2 0 0 0 LT investments & receivables 773 773 773 773 Pretax profit -11,287 -5,338 -3,193 -888 Other non-current assets 1,140 1,197 1,257 1,320 Income tax expenses -8 0 0 0 Total assets 14,582 50,102 50,816 55,915 NP -11,296 -5,338 -3,193 -888 Current liabilities 9,499 11,216 14,437 21,241 NP attributable to owners -11,413 -5,328 -2,761 -768 Accounts payable & accruals 7,328 9,653 12,363 18,385 YoY ST debt 1,817 817 817 817 Revenue 58.1% 112.2% 82.4% 67.3% Other current liabilities 354 746 1,257 2,040 GP NM NM 207.0% 91.9% Non-current liabilities 9,905 12,963 12,023 11,086 EBITDA NM NM NM NM LT debt 8,753 11,753 10,753 9,753 EBIT NM NM NM NM Other non-current liabilities 1,152 1,209 1,269 1,332 NP NM NM NM NM Total liabilities 19,404 24,179 26,460 32,327 Margins Equity -4,822 25,924 24,356 23,588 Gross margin -15.3% 10.1% 17.0% 19.5% Common equity & APIC 40,230 69,600 69,600 69,600 EBITDA margin -128.8% -22.9% -6.0% 1.0% Retained earnings -46,326 -51,655 -54,416 -55,183 EBIT margin -141.6% -29.9% -10.0% -1.5% Other/minority interests 1,275 7,978 9,171 9,171 Net margin -145.8% -32.1% -9.1% -1.5%

Cash flow statement (summarized) Key ratios/per-share data(summarized)) (CNYmn) 2019 2020F 2021F 2022F 2019 2020F 2021F 2022F Operating cash flow -8,722 -3,075 151 2,287 EV/sales (x) 5.1 36.4 20.0 11.9 NP -11,287 -5,328 -2,761 -768 P/S (x) 3.7 37.7 20.7 12.3 Depreciation & amortization 999 1,161 1,212 1,255 P/E (x) NM NM NM NM Decrease in net working capital 703 888 1,006 1,800 EV/EBITDA (x) NM NM NM 1,221 Other 863 204 693 0 EPS -10.79 -4.80 -2.68 -0.75 Cash flow from inv. activities 3,382 -1,500 -1,500 -2,000 Payout ratio (%) - - - - Capex -1,707 -1,500 -1,500 -2,000 Dividend yield (%) - - - - ST investments 5,120 0 0 0 Accounts receivable turnover (x) 5.8 9.1 12.2 12.2 Other -32 0 0 0 Inventory turnover (x) 10.1 10.1 10.1 10.1 Cash flow from fin. activities 3,095 37,871 -500 -1,000 Accounts payable turnover (x) 2.9 4.1 5.2 6.6 Dividends paid 0 0 0 0 ROE (%) -4,247.7 -91.5 -16.7 -5.2 Debt issuance/repayment 3,044 2,000 -1,000 -1,000 ROIC (%) -148.8 -21.4 -6.7 -1.9 Equity issuance/repurchase 51 29,371 0 0 ROA (%) -68.3 -16.5 -5.5 -1.4 Chg. in minority interests 0 6,500 500 0 Net debt/equity ratio (%) NM -120.9 -137.3 -146.6 Other 0 0 0 0 Net increase in cash -2,245 33,295 -1,849 -713 Beginning cash 3,219 974 34,269 32,420 Ending cash 974 34,269 32,420 31,707 Source: Company data, Mirae Asset Daewoo Research estimates

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Appendix 1

Important disclosures and disclaimers Two-year rating and TP history

Company Date Rating TP (US$) NIO (NIO US) 1/21/21 Buy 70 9/3/20 Buy 24 8/21/20 Buy 17

Stock ratings Sector ratings Buy Expected 12-month performance: +20% or greater Overweight Expected to outperform the market over 12 months Trading Buy Expected 12-month performance: +10% to +20% Neutral Expected to perform in line with the market over 12 months Hold Expected 12-month performance: -10% to +10% Underweight Expected to underperform the market over 12 months Sell Expected 12-month performance: -10% or worse

Rating and TP history: Share price (─), TP (▬), Not Rated (■), Buy (▲), Trading Buy (■), Hold (●), Sell (◆) * Our investment rating is a guide to the expected return of the stock over the next 12 months. * Outside of the official ratings of Mirae Asset Daewoo Co., Ltd., analysts may call trading opportunities should technical or short-term material developments arise. * The TP was determined by the research analyst through valuation methods discussed in this report, in part based on estimates of future earnings. * TP achievement may be impeded by risks related to the subject securities and companies, as well as general market and economic conditions.

Ratings distribution and investment banking services Buy Trading Buy Hold Sell Ratings distribution 76.22% 11.59% 11.59% 0.60% Investment banking services 75.00% 10.00% 15.00% 0% * Based on recommendations in the last 12 months (as of June 30, 2020)

Disclosures As of the publication date, Mirae Asset Daewoo Co., Ltd. and/or its affiliates do not have any special interest in 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 or regulations thereof. Each Analyst responsible for the preparation of this report certifies that (i) all views expressed in this report accurately reflect the personal views of the Analyst about any and all of the issuers and securities named in this report and (ii) no part of the compensation of the Analyst was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report. Mirae Asset Daewoo Co., Ltd. (“Mirae Asset Daewoo”) 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. Like all employees of Mirae Asset Daewoo, the Analysts receive compensation that is determined by overall firm profitability, which includes revenues from, among other business units, the institutional equities, investment banking, proprietary trading, and private client divisions. 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 Mirae Asset Daewoo except as otherwise stated herein.

Disclaimers This report was prepared by Mirae Asset 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 in good faith and from sources believed to be reliable, but such information has not been independently verified and Mirae Asset 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. In case of 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. 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 or regulations or subject Mirae Asset Daewoo or any of its affiliates to registration or licensing requirements in any jurisdiction shall receive or make any use hereof. This report is for general information purposes only and is not and shall not be construed as an offer or a solicitation of an offer to effect transactions in any securities or other financial instruments. The report does not constitute investment advice to any person, and such person shall not be treated as a client of Mirae Asset Daewoo by virtue of receiving this report. This report does not take into account the particular investment objectives, financial situations, or needs of individual clients. The report is not to be relied upon in substitution for the exercise of independent judgment. Information and opinions contained herein are as of the date hereof and are subject to change without notice. The price and value of the investments referred to in this report and the income from them may depreciate or appreciate, and investors may incur losses on investments. Past performance is not a guide to future performance. Future returns are not guaranteed, and a loss of original capital may occur. Mirae Asset Daewoo, its affiliates, and their directors, officers, employees, and agents

Mirae Asset Daewoo Research 8 January 21, 2021

do not accept any liability for any loss arising out of the use hereof. Mirae Asset Daewoo may have issued other reports that are inconsistent with, and reach different conclusions from, the opinions presented in this report. The reports may reflect different assumptions, views, and analytical methods of the analysts who prepared them. Mirae Asset Daewoo may make investment decisions that are inconsistent with the opinions and views expressed in this research report. Mirae Asset 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. Mirae Asset 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. 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 Mirae Asset Daewoo. For further information regarding company-specific information as it pertains to the representations and disclosures in this Appendix 1, please contact [email protected] or +1 (212) 407-1000.

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Mirae Asset Daewoo Research 9 January 21, 2021

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Mirae Asset Daewoo Co., Ltd. (Seoul) Mirae Asset Securities (HK) Ltd. Mirae Asset Securities (UK) Ltd. One-Asia Equity Sales Team Units 8501, 8507-8508, 85/F 41st Floor, Tower 42 Mirae Asset Center 1 Building International Commerce Centre 25 Old Broad Street, 26 Eulji-ro 5-gil, Jung-gu, Seoul 04539 1 Austin Road West London EC2N 1HQ Korea Kowloon United Kingdom Hong Kong Tel: 82-2-3774-2124 Tel: 852-2845-6332 Tel: 44-20-7982-8000

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