Investor Relations 2019 Citi Conference, March 2019 Disclaimer This financial information in this document are consolidated earnings results based on K-IFRS. This document is provided for the convenience of investors only, before the external audit on our 4Q 2018 and 2018 financial results is completed. The audit outcomes may cause some parts of this document to change. In addition, this document contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, “forward-looking statements” often address our expected future business and financial performance, and often contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks” or “will”. Our actual results to be materially different from those expressed in this document due to uncertainties. Investor Relations 2019 TABLE OF CONTENTS I Studio Dragon at a Glance II 2018 Earnings Release III 2019 Growth Strategy Appendix I Studio Dragon at a Glance 1. Highlights 2. Comprehensive Studio 3. Studio Dragon at a Glance 4. Studio Centered Industry Change 5. No.1 Studio in Korea We Create New Culture 1 Highlights DOMESTIC M/S REVENUE GROWTH INTL. REVENUE CREATORS 27% 32% 29% 158People +4Titles +64.1% +16.0% +11.9% +1.6%p 110.2 26 51.8 40.1 5.0 35.9 44.7 22 67.2 3.4 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 Production Trend International Revenue Domestic VOD Payment to Creators Viewer Rating (1) (Titles) (Wbn) (Wbn) (Wbn) (%) Note (1) Refers to household average viewer ratings; Excludes Olive’s series <Dear My Room> 5 | Investor Relations 2019 – I. Studio Dragon at a Glance We Create New Culture I.2 Comprehensive Studio 6 | Investor Relations 2019 – I. Studio Dragon at a Glance We Create New Culture I.3 Studio Dragon at a Glance 26 4,013 22 19 16 991 373 473 2 4 Studio Dragon 2015 2016 2017 2018 Note (1) Each companies’ audit report (consolidated basis) 7 | Investor Relations 2019 – I. Studio Dragon at a Glance We Create New Culture I.4 Studio Centered Industry Change 8 | Investor Relations 2019 – I. Studio Dragon at a Glance We Create New Culture I.5 No. 1 Studio in Korea ① Production Capability (1) 9 | Investor Relations 2019 – I. Studio Dragon at a Glance We Create New Culture I.5 No. 1 Studio in Korea ① Production Capability (2) 10 | Investor Relations 2019 – I. Studio Dragon at a Glance We Create New Culture I.5 No. 1 Studio in Korea ② Business Capability 11 | Investor Relations 2019 – I. Studio Dragon at a Glance We Create New Culture II.5 No. 1 Studio in Korea ③ Stable Profit Structure Annual Production Trend Production Cost to Revenue Revenue to Cost of Sales Unit: titles Unit: Wbn 379.6 26 286.8 22 19 195.5 16 97.4 86.1% 93.5% 83.6% 85.4% 2015 2016 2017 2018 2015 2016 2017 2018 Note Companies’ homepage and other sources 12 | Investor Relations 2019 – I. Studio Dragon at a Glance II 2018 Earnings Release 1. Operating Performance 2. Programing 3. Distribution 4. Cost We Create New Culture II.1 2018 Operating Performance Summary 4Q18 Revenue (+41.5% YoY) – Strengthened IP differentiation (<100 Days My Prince>, <Memories of the Alhambra>, etc.) led to rapid growth in programming and distribution revenue OP (-87.3% YoY)– Declined due to additional amortization of intangible assets despite strong content sales 2018 Enhanced production capability and diverse genre continued to accelerate influence in domestic and global market Revenue Operating Profit Net Profit Unit: Wbn Unit: Wbn Unit: Wbn 11.5 % 10.8 % 10.5 % 9.4 % 379.6 8.3 % 39.4 6.6 % 286.8 43.7 162.1 4.0 % 195.5 32.3 111.9 2.7 % 39.9 35.8 1.3 % 1.4 % 103.1 97.4 75.4 33.0 23.8 4.8 3.6 178.1 21.2 40.2 39.0 131.2 13.0 87.8 58.1 54.8 1.3 1.4 4.2 2.6 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Programing Distribution Others Operating Income OPM Net Income NP Margin 14 | Investor Relations 2019 – lI. 2018 Earnings Release We Create New Culture II.2 2018 Operating Performance Programming 4Q18 Secured solid growth of 39.5% YoY, mainly attributable to increase in captive (OCN, Olive) lineups 2018 Revenue grew 35.7% YoY to W178.1bn, driven by increased number of TV series (+4 titles YoY) and tentpoles Programming Revenue Production Trend (1) Unit: Wbn Unit: Wbn 100.0% 100.0% 100.0% 54.4 87.5% 48.9 0.6 0.2 71.4% 40.7 39.0 7.7 34.1 10.8 1.0 53.8 48.7 11 8 8 33.0 33.1 7 7 28.2 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q18 3Q18 4Q18 Captive Non-captive Current Titles % of Captive Titles Note (1) Each quarter includes all titles in progress 15 | Investor Relations 2019 – lI. 2018 Earnings Release We Create New Culture II.3 2018 Operating Performance Distribution 4Q18 Recorded strong growth of 46.9% YoY on the back of continued domestic influence and expanded overseas sales regions 2018 Revenue grew 44.9% YoY to W162.1bn via robust overseas sales based on core IP competitiveness Distribution Revenue Library Sales Unit: Wbn Unit: Titles 0.24bn 0.31bn 0.29bn 0.61bn 0.35bn ※ (1) 106 108 63.4 102 101 104 7 25 12 17 25 46.2 37.8 32.1 28.8 25.8 95 89 24.8 81 87 83 22.7 16.5 15.4 17.2 10.4 9.4 12.3 13.0 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17 1Q18 2Q18 3Q18 4Q18 Domestic International Old Titles New Titles Note (1) Average distribution revenue per title 16 | Investor Relations 2019 – lI. 2018 Earnings Release We Create New Culture II.4 2018 Operating Performance Cost 4Q18 Increased due to additional amortization, considering changes in media market environment (COGS +47.8% YoY) 2018 OPEX W339.7bn (+33.8% YoY) : COGS Ratio 85.4% (-1.8%p YoY), SG&A Ratio 4.1% (-0.8%p YoY) COGS and SG&A Ratio OPEX Unit: % Unit: Wbn 4Q17 1Q18 2Q18 3Q18 4Q18 93.6 89.6 85.7 COGS 64.4 66.2 63.7 98.9 95.2 82.9 79.9 Labor Costs 2.4 1.5 1.6 1.8 2.8 Dep. & Amort. 0.1 0.1 0.1 0.1 0.1 Commissions 0.4 0.5 0.5 0.5 0.7 5.5 5.9 4.4 3.7 Marketing 0.5 0.2 0.2 0.1 0.0 2.7 Others 0.6 0.7 0.9 0.8 2.5 4Q17 1Q18 2Q18 3Q18 4Q18 OPEX 68.4 69.2 67.0 102.2 101.3 COGS Ratio SG&A Ratio 17 | Investor Relations 2019 – lI. 2018 Earnings Release III 2019 Growth Strategy 1. Media Industry 2. Expand IP Business Scope 3. Global Expansion 4. Outlook We Create New Culture II.1 2019 Growth Strategy – Media Industry Global OTT BIGBANG Maintain competitiveness Expand Presence 19 | Investor Relations 2019 – lII. 2019 Growth Strategy We Create New Culture II.2 2019 Growth Strategy – Expand IP Business Scope Studio Dragon 2.0 Build global business model through OIMU (One IP Multi Use), diversify continuous revenue streams New Systemize Release Universe Production Seasons Tour/ Game Animation Exhibition VR Goods . Secure global target IPs . Systemize writers, . IP branding directors, and casting [Asadal Chronicles] . Human fantasy historical . Built production site in . Release 2nd season in 2020 genre Osan (In Progress) Game Animation Tour Goods VR -209 -| Investor Relations 2019 – lII. 2019 Growth Strategy We Create New Culture II.3 2019 Growth Strategy – Global Expansion (1) US $214.9bn Love Alarm Holo (WT) (M/S 46.5%) China $39.0bn (8.4%) Europe Japan $80.0bn $29.5bn (6.4%) Korea (17.3%) $7.5bn What’s Wrong with (1.6%) My Mister 100 Days My Secretary Kim Prince Source KOCCA (2017) 21 | Investor Relations 2019 – lII. 2019 Growth Strategy We Create New Culture II.3 2019 Growth Strategy – Global Expansion (2) (Unit: Wbn) 7.3% “ ” 63.4 4.6% 4.0% 3.9% 4.2% 3.6% 3.2% 2.7% 36.5 37.8 32.1 28.8 26.3 23.3 25.8 <Memories of the Alhambra> 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 <Guardian> <Stranger> <Live Up to <Because This is <Live> <What’s Wrong <Mr. Sunshine> <Memories of the Your Name> My First Life> with Secretary Kim> Alhambra> 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Distribution (domestic+overseas) Sales Avg. Viewer Rating 22 | Investor Relations 2019 – lII. 2019 Growth Strategy We Create New Culture II.3 2019 Growth Strategy – Global Expansion (3) Distribution Overseas Domestic Overseas Domestic Domestic Overseas 23 | Investor Relations 2019 – lII. 2019 Growth Strategy We Create New Culture II.4 2019 Outlook PRODUCTION INTL. PRODUCTION INTL. GROWTH RATE 31Titles 5 Titles 30%↑ In-house Producers Production Subsidiaries 6 26 110.2 25 2018 2019E 2018 2019E Captive Non-Captive Production Trend International Revenue (Titles) (Wbn) 24 | Investor Relations 2019 – lII. 2019 Growth Strategy Investor Relations 2019 APPENDIX 1 Corporate Overview 2 Vision 3 Business Model Canvas 4 Financial Statements Summary 1. Financial Position 2. Income Statement 5 1Q 2019 Lineups We Create New Culture I.1 Corporate Overview Group Structure Shareholder Structure * Listed companies As of end-2018 * Foreign CJ Corp. ESOP 0.22% Investors 2.85% 39.36% Institutional Investors CJ ENM * 13.19% 71.30% Retail Investors * 9.38% Related Parties 100% 100% 100% 3.06% CJ ENM 71.30% Share Price Trend 2017.11.24=100 11.17 12.17 1.18 2.18 3.18 4.18 5.18 6.18 7.18 8.18 9.18 10.18 11.18 12.18 1.19 2.19 Studio Dragon KOSPI KOSDAQ 26 | Investor Relations 2019 – Appendix We Create New Culture I.2 Vision 27 | Investor Relations 2019 – Appendix We Create New Culture I.3 Business Model Canvas 28 | Investor Relations 2019 – Appendix We Create New Culture I.4 Financial Statements - Financial Position (Unit: Wbn) 4Q17 3Q18 4Q18 % QoQ % YoY Total Assets 459.5 491.2 512.4 4.3 11.5 Current Assets 289.8 256.9 247.2 (3.8) (14.7) Cash and Cash Equivalents 191.6 162.8 153.0 (6.0) (20.1) Others 98.2 94.1 94.2 0.1 (4.1) Non-Current Assets 169.6 234.3 265.2 13.2 56.3 Tangible Assets 1.1 1.1 1.0 (7.9) (7.1) Intangible Assets 127.5 171.9 198.5 15.5 55.7 Others 41.0 61.3 65.7 7.1 60.1 Total Liabilities 91.0 91.0 111.1 22.1 22.1 Current Liabilities 90.7 84.7 108.2