June 2020 | Investor Relations Disclaimer Table of Contents Kakao Ecosystem 4 Kakao Business 12 Talk Biz 13 Mobility 16 Techfin(Pay) 17 Techfin(Bank) 18 Music 19 Game 20 Paid Content 21 IP Business(M) 22 IP Business(IX) 23 B2B Business 24 Financial Overview 25 Kakao ecosystem Kakao business Financial overview 4 Vision “Connect Everything” Innovating the way we connect for a better tomorrow 5 History ● Interactive Business Platform 2013 100million Subscribers Kakao talk 2014 Kakao & Daum Merger 2010 2010 2014 2015 2016 2016 2017 Kakao Kakao Kakao Kakao Kakao Kakao Kakao Talk Talk Gift Pay Taxi Makers Driver Bank 2006 KaKao (I.W.I LAB) Established 2018 Kakao & LOEN 2012 2012 2013 2016 2016 Merger Kakao Kakao Kakao LOEN Kakao Japan Game Friends Page Acquisition Piccoma ● Content Ecosystem & Global Expansion Kakao M Spin off 6 Undisputed Market Leader No1. Mobile Messenger Service in Korea Kakao Talk Monthly Active Users 45 Million MAU in Korea 96% Market Share 45,188 87% Population Penetration 44,731 44,859 44,417 44,076 43,526 43,577 43,662 43,812 #1 Brand Power Across 220 Industries in Korea Most Admired Workplace Among Top 100 Companies in Korea by Market Cap. 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 #1 Social Contribution Index Korea 43,526 43,577 43,662 43,812 44,076 44,417 44,731 44,859 45,188 Among the 57 Largest Conglomerate Groups in Korea Global 50,348 50,113 50,187 50,219 50,547 50,882 51,374 51,495 51,768 Average of monthly MAUs. Global includes domestic MAUs (000). 7 Kakao Ecosystem Interactive Business Platform Content Ecosystem & Global Expansion AI / Web Music / Advertising Commerce Mobility Tech-Fin Game IP Business Blockchain Literature Video Talk board Kakao Unrivaled Leading Future Global Game #1 App Launch Commerce Positioning Tech-Fin Growth Engine Company The Largest Korean Leverage Talk Talk Based No.1 Mobility Innovation in Expanding Development Number of Music Top Talent Board as an Transactional Application Mobile Finance B2B Business& Capabilities for Original IPs Streaming & &Character Entry Point Business Model Blockchain Casual to Hard- Downloads Main Net core Genre “Meaningful “Explosive “Multimodal “Reshaping “Sustained “Competitive “Aggressive “One-of-a-Kind “Cash & Relationship Growth & Platform with the Korean Growth Edge to be a Global Business Model Loyalty Extension” Business All-Inclusive Financial for Future” Formidable Expansion via with Superior Generator Model Transportation Industry” Player” Unique Profitability” Through IP” Expansion” Needs” Business Model” 8 Repeatable Success Formula Unique Success Factors for New Businesses: #1 Internet-Only Bank(1) Large User Base Encompassing an Entire #1 K-Webtoon Sales Platform(2) Nation #1 Multi-modal Platform Kakao’s Nationwide Following Ensuring Success of New Service Launches #1 Consumer Satisfaction(3) #1 Korean Paid Content Platform Unrivaled Access and Insight to User Data #1 Mobile Game Platform #1 Most Likeable Characters(4) Minimal User Acquisition Costs Notes: (1) In terms of asset size. (2) KakaoJapan’s Piccoma, 2019 annual sales record in Japanese digital manga market. (3) Survey by Korea Consumer Board, Consumer satisfaction for mobile payment. (4) Korea Creative Content Agency survey. 9 Global Strategic Partnerships Kakao Mobility Kakao Page Kakao Pay Kakao Games Kakao M Kakao Bank Kakao’s 69.3% 63.6% 60.9% 60.4% 78.2% 33.5% Stake1) ACEVILLE Strategic Partner 0 SKYblueLuxury Transaction Jun. 2017 Jul. 2019 Feb. 2017 Feb. 2018 Mar. 2020 Capital1) Valuation (KRW trn) 1.6 1.2 0.6 0.8 1.7 1.8 500 125 230 140 210 Investment Dec. 2016 Amounts (KRW bn) 24 Jul. 2019 1) Latest filings 10 Company Management Kakao Founder & Chairman Kakao CEO Brian Kim “Korean Web Pioneer” By Forbes Asia Mason Yeo Sean Joh Key Subsidiaries 1998 Founder & CEO KakaoKakao Games Kakao Mobility Kakao Pay One of the first online game portals globally * Merged with NAVER (in 2000) 2001 CEO Nkay Namkoong Leo Cho Alex Ryu Alex Ryu Kakao Kakao Page Kakao Japan Kakao M #1 Search portal in Korea Kakao Page Enterprise 2009 Founder & Chairman #1 Mobile messaging app company in Korea Joy Lee Jay Kim Stephan Kim Andrew Beak *Merged with Daum (in 2014) 11 Kakao ecosystem Kakao business Financial overview 12 Paradigm Shift in Advertising Industry Significant Growth Opportunity in Kakao Talk as a Biz Platform Ad Market Size (2019) Talk Biz Revenue (Unit: KRW trn, %) (Unit: KRW bn) Guidance +50% YoY (Penetration %) 650 53% 47% 13.9 421 258 7.4 6.5 (Digital Ad M/S) 13% 0.9 Total Ad TV, Print, Digital Ad Kakao Ad 2017 2018 2019 2020(E) Market Outdoor, Etc. 1) Kakao Ad includes Talk biz advertising and Portal Biz Revenue in FY2019 13 Talk Biz Advertising(Talk Board) Talk Board, a New Innovative Way to Connect 45million 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 KakaoTalk Purchase Sync Channel Reservation Talk #DISCOVER Payment #CONNECT #ACTION Download Store Registration Brand Tab Talk Gift Customer Service Support Talk … 14 Talk Biz Commerce From Leveraging the Social Graph to any Talk-based Transactions Talk Gift Kakao Makers TalkBoard will revolutionize Apparel/Fashion>Socks daily commerce experience Kakao Friends Half Socks 9,900 KRW Most Popular 7 days left until deal close Number of Orders 10 Number of minimum order Number of maximum order Baskin Robins Starbucks Order Now Like 24,000 KRW 12,700 KRW Talk Store Talk Deal Recommendation My Stores Number of Deal Participants 1734 Buy Now Talk Deal Price 12,900KRW 8,900KRW Deals opened 7┃Deals accomplished 866 Deal Participation Deal Participation 15 Mobility Multimodal Platform with All-Inclusive Transportation Needs Kakao T Key Indices 2.9mn+ 10mn+ 25mn+ 10.3mn+ Registered Peak Daily Credit Card MAU Users Taxi-Hailing Registrants Orders 70+% of Economically Based on Large User Ready to Pay Users Dominant Traffic Active Population Base and Registered (As of March 2020) Taxi Driver Kakao T Application Taxi Service Option Creating a Kakao's Own Mobility Ecosystem thru Partnerships Premium Paying Service Option Kakao T Blue Expanding the service coverage in the regional area 16 Techfin(Pay) No.1 All-Encompassing Daily Financial Platform Kakao Pay Key Indices 30mn+ 20mn+ W14.3trn Accumulated MAU 1Q20 GMV Members +39% YoY (FY2019 Total GMV W48trn) Money 2.0 Strategy Kakao Pay Money Upgrade Creating New Investment Culture Money 1.0 Money 2.0 AI, Big data Customized WM Prepaid Top-up BM Real Name Account (Non-Benefit for Deposit) (Interest Benefit) Differentiated Financial Content Equivalent to Limit on Balance WM Service Improvement Brokerage Account Limited Scope of Diversified Financial Real Name Based Account Financial Service Products Daily Financial Platform 17 Techfin(Bank) No.1 Internet-Only Bank with Innovation Kakao Bank Key Indices W1.8trn 12mn+ W21.3trn W16.7trn W18.5bn Net Income Capital Deposits Credit Loans 1Q20 FY2019 Net Profit W13.7bn Kakao Bank Moim Service(Dec 2018) Pioneering a New Market Frontier Platform Business Expansion - Partnership with 4 credit card companies 1trn+ Offered 1trn+ Mid-priced Loans in 2019 (Equivalent to 110% of total mid-priced loan in 2018) 1) Kakao Bank key indices as of March 2020 2) Moim service: Kakao Talk-based group banking account 18 Music # 1 Digital Music Platform with Unparalleled Market Presence Melon Key Indices 5.07mn+ 40mn+ 103mn+ Paying Song Library Playlists Subscribers 7mn Unique Visitor More Personalized& Largest Music Content Dominant Traffic Customized Functions Customized Curation Increased Streaming Trend Music Revenue 1) Melon DJ, FOR U thru Talk Music (Unit: W bn) 151 # of Streaming 137 (Apr 2019~) 126 110 Profile Music Revamp Apr Jul Dec 1Q17 1Q18 1Q19 1Q20 1) Music revenue includes Melon, kakao music, digital music distribution and ticket 19 Game Multi-Platform Game Company encompassing PC and mobile Game Key Indices 1,100+ No.1 Global Publishing Publisher Potential 20mn+ MAU Game Service Going Global No.1 Mobile Game Encompassing Leveraging Proven IPs Platform PC and Mobile Game Marketing Platform Publishing Game Line-up Global Business Expansion Partnership Development 20mn+ MAU Expansion in overseas In company publishing thru development expertise Princess TERA Legendary global partnerships MOBILE connect! Classic Moonlight Re:dive Sculptor Casual Game Development Kakao Talk 10mn+ PUBG POE ELYON Friends Friends Doraemon Channel PC 2020(E) Racing Town Park 20 Paid Content (Web Literature) Growth through Innovative Business Model and Original IPs Paid Content Key Indices W139bn 7,000+ +130% Global GMV Piccoma GMV Original IPs in 1Q20 in FY2019 The Fastest Growing +51% YoY The Largest # of Manga Platform (W430bn in FY2019) Original IPs in Japan Secondary Video Content Accelerating K-Content Distribution Story IP Value & Utilization Up based on Original IPs Web toon Web Drama novel Summit: Steel Love Alarm Itaewon Class Memorist Rain(2019) Game Movie Indonesia Kakao Japan Kakaopage Global Piccoma 21 IP Business(M) Transforming into a Leading Global Content Provider Kakao M Key Indices No.1 W80bn+ 19mn+ 90+ 150+ Music Investment 1theK Musician Actors& Distribution in K-pop Subscriber Actresses Annual Investment in No.1 K-pop Korea’s Largest Stable Cash Flow 4 Music Labels Music Distribution YouTube Channel Talent Pool Vertical Integration in Kakao M's Music Business Portfolio Content Production Capability Content Production Investment Distribution Talent Pool Production Mega Monster, Distribution Competitive in-house casting power Producer production studio Concert Performing Musician Production /Musical Mgmt Story IP Key Creator 1theK Original IPs from Top-notch Kakao Page and producers with Digital Content Piccoma the expertise Marketer Production 22 IP Business(IX) Successfully Expanded into a Full-Fledged IP Business Player Kakao Friends IP Going Global Japan┃Tokyo Omotesando store open(Dec.