May 2019 | Investor Relations Disclaimer 2 Table of Contents 3 Kakao ecosystem Kakao business Financial overview 4 Undisputed Market Leader Korea 42,746 43,044 43,201 43,526 43,577 43,662 43,812 44,076 Global 49,468 49,844 49,709 50,348 50,113 50,187 50,219 50,547 5 Kakao Ecosystem Interactive Business Platform Content Ecosystem & Global Expansion AI / Web Music / Advertising Commerce Mobility Tech-Fin Game IP Business Blockchain Literature Video Talk Bizboard Kakao Unrivaled Leading Sustained Business #1 App Launching Commerce Positioning Tech-Fin Growth for Expansion In Mobile Most Likeable Evolving as a Talk based No.1 28 Million Future In-house Literature In Music among Koreans Business transactional Domestic User Expanding IP Game Streaming & Platform Business Model Kakao i & Development Downloading Blockchain Main Net “Launching “Explosive “Multimodal “Reshaping “Future Growth “Regaining “Aggressive “One-of-a-Kind “Cash & TalkBoard Growth & Platform with the Korean Engine” Leadership via Global Business Model Loyalty based on Big Business All-Inclusive Financial Integration” Expansion via with Superior Generator Data and AI Model Transportation Industry” Unique Profitability” Through IP” technology” Expansion” Needs” Business Model” 6 Repeatable Success Formula Notes: (1) In terms of asset size. (2) In terms of Japan App Store Books category. (3) Source: Kakao Mobility (4) Based on app downloads. (5) App Annie. Based on number of games in Top 100 on App Store in Korea in terms of grossing. (6) Korea Creative Content Agency survey 7 Stake of Major Subsidiaries and Strategic Partnerships HongKong ┃ ┃10% ┃4% ┃4% ┃4% ┃4% ┃4% ┃2% 8 Kakao ecosystem Kakao business Financial overview 9 Paradigm Shift in Advertising Industry Significant Growth Opportunity in Kakao Talk as a Biz Platform Ad Market Size (2018) Kakao Total Ad Revenue (Unit: KRW trn, %) (Unit: KRW bn) 20% YoY Guidance (Talk Biz 50% YoY) 670 (Penetration %) 596 60% 534 13.7 40% 8.2 5.5 (Digital Ad M/S) 12% 0.7 Total Ad TV, Print, Digital Ad Kakao Ad 2016 2017 2018 2019(E) Market Outdoor, Etc. 10 Kakao Talk Bizboard (TalkBoard) TalkBoard, a New Innovative Way to Connect 44million Mega Traffic Chat list tab is where Users can get recommendations Users may fulfill any actions users spend the most time of their interests that wish to take AI Chatbot Plus Purchase Sync Friends Reservation Talk #DISCOVER Payment #CONNECT #ACTION Download Store Registration Brand Tab Talk Gift Customer Service Support Talk … 11 Talk Biz Commerce From Leveraging the Social Graph to any Talk-based Transactions Kakao TalkGift TalkBoard will revolutionize daily commerce experience KRW 1trn 2011 2012 2013 2014 2015 2016 2017 2018 12 Mobility Multimodal Platform with All-Inclusive Transportation Needs Kakao T Key Indices 2.9mn+ 21mn+ 7.54mn+ 10mn+ Peak Daily Registered Credit Card MAU Taxi-Hailing Users Orders Registrants 70+% of economically Based on large user Ready to Pay Users Dominant Traffic active population base and registered (As of May 2019) taxi driver base Waygo Blue Rejection-Free Premium Taxi Service Now offering more premium options 13 Tech-Fin No.1 All-Encompassing Financial Platform Kakao Pay Key Indices 28mn+ 15mn+ W10trn+ Accumulated MAU 1Q19 GMV Members FY2018 Total GMV W20trn Business Portfolio Embedded in Landing Page Investment Service KakaoTalk (Launched Nov 2018) Payment Finance B2B Apeach Money Transfer Investment Certification Payment Insurance Electronic Bills Membership Payment Bills E-Receipts Credit-based transaction 14 Kakao Bank No.1 Internet-Only Bank with Innovation Kakao Bank Key Indices W1.3trn 9mn+ W14.9trn W9.7trn W6.6bn Capital Deposits Credit Loans 1Q19 Net Income 26 weeks Kakao bank Money transfer My credit installment saving moim service to abroad information 15 Music # 1 Digital Music Platform with Unparalleled Market Presence Melon Key Indices 6mn+ 40mn+ 85mn+ Unique Visitor Song Library Playlists More personalized, Dominant Traffic Largest Music Content customized functions Melon Paying Subscribers Real-Time Charts Melon DJ Music DNA Kakao related (Unit: mn) (Brand Power) (Human Curation) (Big Data) contents 5.08 5.13 4.55 4.00 3.55 4Q15 4Q16 4Q17 4Q18 1Q19 16 Multi-Platform Publisher to Global Game Provider Mobile Game Channel Mobile/PC Game Publishing Mobile Game Development Global Expansion ✔ . ✔ ✔ 17 Growth through Innovative Business Model and Original IPs Kakao Page Piccoma (Kakao Japan) Global Expansion 20 mm cumulative registered Japanese webtoon platform Established K-Content ecosystem users launched by kakao Japan in 2016 in Southeast Asia 5.5 mm monthly active users Ranking #1 Top, #2 Grossing Largest original IP Pool in Korea App in the Google Play Store book category Daewon C.I Successful localization efforts Haksan Publishing Neobazzar, Secured Seoul Media Comics Launched ‘Piccoma TV’ in July Indonesia IPs DNC Media 2018 Samyang CNC Daon Creative Kakao Page Piccoma Maximize the content value through creating Super IPs +32% YOY +177% WEB YOY NOVEL웹툰 뮤지 WEB DRAMA TOON컬 SUPER IP 드라 GAME영화 MOVIE 마 18 Transforming into a Leading Global Content Provider Music Content Talent/Original IP Video Content # 1 Digital Music Distribution Vertical integration in content Expanding into mobile short- production value chain by form content production along acquiring talent management with well-made originals companies Secured the top-tier talent pool with more than 100 actors <Red moon, Blue sun> Nov 2018 on MBC Collaboration with Kakao Page, who boasts the most # of original IPs in Korea Production: Multi-label System <1theK> K-POP Content Production <Touch your heart> 2019.2 on tvN 19 Successfully Expanded into a Full-Fledged IP Business Player Kakao Friends IP Going Global Japan┃Tokyo Omotesando store open(Dec. 2018) China┃Tmall(domestic & global), JD.com North America ┃ Amazon Merchandising Game Licensing Flagship & Global Stores Japan Tokyo GangNam HongDae Busan Omotesando July 2016 November 2016 August 2017 December 2018 20 Kakao ecosystem Kakao business Financial overview 21 Changes in Revenue Breakdown Changes in revenue breakdown from 1Q 2019 to reflect KakaoTalk platform-centric business strategies AS-IS TO-BE KakaoTalk KakaoTalk Kakao (Plus Friends, #Tab, Talk Store, etc.) (Plus Friends, #Tab, Talk Store, etc.) KakaoTalk Brand Emoticon Talk Gift Shop, Kakao Makers Advertising Kakao Story/Style/Page Talk Biz KakaoTalk Brand/B2C Emoticon Daum PC Daum Mobile New BM in KakaoTalk Daum Other Subsidiaries’ Ad (Talk Bizboard, Chat Bot, etc.) Platform Game Mobile PC Kakao VX Daum PC Daum Mobile Portal Biz Other Subsidiaries’ Ad Melon Kakao Music Music Kakao Story/Style/Page Digital Music Distribution Ticket Content Mobility, Pay Kakao Page Daum Webtoon New Biz Paid Misc. (Other Subsidiaries) Piccoma Content KakaoTalk B2C Emoticon Game Mobile PC Kakao VX Melon Kakao Music Talk Gift Shop Music Digital Music Distribution Ticket Commerce Kakao Makers Kakao IX Content Paid Kakao Page Daum Webtoon Content Piccoma Others Mobility, Pay Kakao M Kakao IX Misc. IP Business (Excluding Digital Music Distribution) Kakao M and Others Misc. (Excluding Digital Music Distribution) © Kakao Corp. 22 Total Revenue 1Q Total Revenue YoY +27% / QoQ +5% Platform Business accounts for 44%, Content Business 56% Revenue Breakdown KakaoTalk Platform Content (Plus Friends, #Tab, Talk Store, etc.) Talk Gift Shop, Kakao Makers 706,312 Talk Biz 673,345 KakaoTalk Brand/B2C Emoticon New BM in KakaoTalk 599,293 588,933 Platform (Talk Bizboard, Chat Bot, etc.) 555,421 Daum PC Daum Mobile 44% 45% Portal Biz Other subsidiaries’ ad Kakao Story/Style/Page 43% 42% 42% Mobility, Pay New Biz Misc. (Other Subsidiaries) Game Mobile PC Kakao VX Melon Kakao Music Music Digital music distribution Ticket 55% 56% Paid Kakao Page Daum Webtoon 57% 58% Content 58% Content Piccoma Kakao IX IP Business Kakao M and Others (Excluding digital music distribution) 1Q18 2Q18 3Q18 4Q18 1Q19 (in million KRW) © Kakao Corp. 23 Platform / Content Platform YoY +35% / QoQ +3% Content YoY +22% / QoQ +6% Platform Content (in million KRW) (in million KRW) Talk Biz Potal Biz New Biz Game Music Paid Content IP Business and Others 393,199 370,378 337,876 346,283 313,114 323,141 87,291 302,967 66,602 44,932 50,412 47,514 59,791 251,057 253,010 45,303 50,845 60,482 63,313 74,647 232,281 43,767 25,103 30,326 22,014 129,793 126,416 130,461 128,367 115,545 126,269 135,991 140,129 137,228 121,723 127,871 126,906 107,139 111,638 88,544 97,587 105,591 99,397 100,334 94,033 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 © Kakao Corp. 24 Platform┃ Talk Biz Portal Biz New Biz Talk Biz YoY +43% / QoQ -1% Portal Biz YoY +4% / QoQ -3% New Biz YoY +172% / QoQ +32% Talk Biz Portal Biz New Biz (in million KRW) (in million KRW) (in million KRW) 129,793 127,871 126,906 128,367 126,416 121,723 115,545 107,139 97,587 88,544 59,791 45,303 30,326 25,103 22,014 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 © Kakao Corp. 25 Content ┃ Game Music Game YoY -11% / QoQ -6% Kakao VX +5% (y) / -16% (q) Mobile -33% (y) / -15% (q) PC +20% (y) / +5% (q) Music YoY +9% / QoQ -2% Game Music (in million KRW) (in million KRW) Kakao VX Mobile PC 140,129 135,991 137,228 130,461 126,269 111,638 105,591 6% 99,397 100,334 6% 94,033 8% 8% 8% 46% 43% 57% 47% 42% 48% 49% 45% 50% 37% 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 © Kakao Corp. 26 Content ┃ Paid Content IP Business and Others Paid Content YoY +71% / QoQ +18% Piccoma (Japan) +177% (y) / +34% (q) Kakao Page +46% (y) / +12% (q) IP Business and Others YoY +84% / QoQ +31% Paid Content IP Business and Others (in million KRW) (in million KRW) Piccoma (Japan) Kakao Page 87,291 74,647 63,313 66,602 60,482 30% 50,845 27% 25% 50,412 47,514 43,767 44,932 22% 19% 70% 75% 73% 78% 81% 1Q18 2Q18 3Q18 4Q18 1Q19 1Q18 2Q18 3Q18 4Q18 1Q19 © Kakao Corp.