February 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 Financial Overview 24 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 87% Population Penetration 44,731 44,859 44,417 44,076 43,526 43,577 43,662 43,812 43,201 #1 Brand Power Across 220 Industries in Korea Most Admired Workplace Among Top 100 Companies in Korea by Market Cap. 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 #1 Social Contribution Index Korea 43,201 43,526 43,577 43,662 43,812 44,076 44,417 44,731 44.859 Among the 57 Largest Conglomerate Groups in Korea Global 49,709 50,348 50,113 50,187 50,219 50,547 50,882 51,374 51,495 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 Sustained Global Game #1 App Launch Commerce Positioning Tech-Fin Growth for Company The Largest Most Likeable Leverage Talk Talk Based No.1 Mobility Innovation in Future Development Number of Music among Koreans Board as an Transactional Application Mobile Finance Expanding Capabilities for Original IPs Streaming & Entry Point Business Model Kakao i & Casual to Hard- Downloads Blockchain core Genre Main Net “Meaningful “Explosive “Multimodal “Reshaping “Future Growth “Competitive “Aggressive “One-of-a-Kind “Cash & Relationship Growth & Platform with the Korean Engine” Edge to be a Global Business Model Loyalty Extension” Business All-Inclusive Financial 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 Downloads in Books(2) Nation 10+ Million Kakao Taxi MAU(3) Kakao’s Nationwide Following Ensuring Success of New Service Launches #1 Consumer Satisfaction(4) #1 App in Mobile Literature(5) Unrivaled Access and Insight to User Data #1 Mobile Game Publisher(6) #1 Most Likeable Characters(7) Minimal User Acquisition Costs Notes: (1) In terms of asset size. (2) In terms of Japan App Store Books category. (3) Source: Kakao Mobility (4) Survey by Korea Consumer Board, Consumer satisfaction for mobile payment (5) Based on app downloads. (6) App Annie. Based on number of games in Top 100 on App Store in Korea in terms of grossing. (7) Korea Creative Content Agency survey 9 Global Strategic Partnerships Kakao Mobility Kakao Page Kakao Pay Kakao Games Kakao Bank Kakao’s 69.3% 63.6% 60.9% 60.4% 33.5% Stake1) 0 Strategic ACEVILLE Partner SKYblueLuxury Investment 500 125 230 140 1,188 Amounts Jun. 2017 Dec. 2016 Feb. 2017 Feb. 2018 (KRW bn) 24 Jul. 2019 1) Latest filings 10 Company Management Kakao Founder & Chairman Kakao CEO Brian Kim “Korean Web Pioneer” Mason Yeo Sean Joh By Forbes Asia Key Subsidiaries 1998 Founder & CEO KakaoKakao Games 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 #1 Search portal in Korea KakaoKakao Page Kakao Japan Kakao M 2009 Founder & Chairman #1 Mobile messaging app company in Korea *Merged with Daum (in 2014) Joy Lee Jay Kim Stephan Kim 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 (2018) 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+ 9.6mn+ 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 Dec 2019) taxi driver base Kakao T Application Taxi Service Option Creating a Kakao's Own Mobility Ecosytem 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+ W48trn+ Accumulated MAU FY2019 GMV Members +140% YoY (FY18 Total GMV KRW20trn) 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 Differentiated (Non-Benefit for Deposit) (Interest Benefit) 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 11mn+ W20.7trn W14.9trn W15.4bn Capital Deposits Credit Loans 3Q19 Accum. 4Q19 4Q19 Net Income Capital Increase W500bn Nov. 2019 Kakao Bank Moim Service(Dec 2018) Pioneering a New Market Frontier Platform Business Expansion 1trn+ Offering 1trn+ Mid-priced Loans in 2019 (Equivalent to 110% of total mid-priced loan in 2018) 1) Moim service: Kakao Talk-based group banking account 18 Music # 1 Digital Music Platform with Unparalleled Market Presence Melon Key Indices 5.02mn+ 40mn+ 99mn+ 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) 153 # of Streaming 137 (Apr 2019~) 126 110 Profile Music Revamp Apr Jul Dec 1Q17 1Q18 1Q19 4Q19 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 Multi-platform Game Going Global No.1 Mobile Game Service Encompassing Leveraging Proven IPs Platform PC and Mobile Game Marketing Platform Publishing Game Line-up Global Business Expansion 20mn+ MAU Partnership Development Expansion in overseas In company publishing thru development expertise global partnerships Princess TERA Legendary MOBILE connect! Classic Moonlight Re:dive Sculptor Casual Game Development Kakao Talk 10mn+ PUBG POE A:IR Friends Friends Allstar Channel PC 2020(E) Racing Town Smash 20 Paid Content (Web Literature) Growth through Innovative Business Model and Original IPs Paid Content Key Indices W430bn 7,000+ +130% Global GMV Piccoma Original IPs in 2019 GMV Growth The Fastest Growing +47% YoY The Largest # of Manga Platform (W290bn in 2018) 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+ 17mn+ 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 Music Distribution 4 Music Labels YouTube Channel Talent Pool Business Vertical Integration in Kakao M's Music Business Portfolio Content Production Capability Content Production Investment Distribution Talent Pool Production Distribution Mega Monster, Competitive in-house Producer casting power production studio Concert Performing Musician Production