Slide 1: IR Presentation
IR PRESENTATION 2014. 08 This presentation contains forward-looking statements regarding our business strategy and plan based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update this presentation as a result of new information or future events.
Slide 2: Company Overview
Company Overview Shareholding Structure (As of 2014.07.28) 14% 36% 25% J.W Lee(Founder) Foreign Investors Domestic Investors(E) Subsidiaries OnNet (86.1%) OnNet USA (86.2%) (As of 2014.06.30) Game Publishing & Developing OnNet Europe (100%) Dialoid (100%) Voice Recognition and Synthesis Technology O
Slide 3: 2Q14 Key Highlights
2Q14 Key Highlights (Unit: KRW bn) 2Q 13 1Q 14 2Q 14 QoQ QoQ(%) YoY YoY(%) Revenues 129.7 127.1 138.9 +11.9 +9.3% +6.4 +4.8% Search 65.6 64.7 66.6 +1.9 +3.0% +1.0 +1.5% Display 57.0 52.6 63.8 +11.3 +21.5% +6.9 +12.1% Game 8.6 7.8 7.0 -0.8 -10.4% -1.6 -18.8% Transactions 1.2 1.3 1.4 +0.1 +7.6% +0.2 +
Slide 4: Revenue Trend
Revenue Trend (Unit: KRW bn , % of Revenue) Yearly Revenue Trend Quarterly Revenue Trend 350 421 453 531 133 130 144 127 139 0.1% 0.1% 0.9% 1.0% 5.8% 5.0% 0.1% 0.2% 0.1% 0.9% 1.1% 0.6% 1.0% 6.5% 6.6% 1.0% 6.3% 6.1% 0.1% 1.8% 0.7% 7.5% 2.2% 46.6% 1.6% 43.0% 42.8% 43.4% 41.4% 46.0% 1.5% 3.1% 1.5% 49.2
Slide 5: Expense Trend (% of Revenue)
Expense Trend (% of Revenue) (Unit: KRW bn , % of Revenue) Yearly Expenses Trend Quarterly Expenses Trend 254 305 352 449 102 109 109 129 112 2.7% 2.5% 2.7% 16.6% 2.5% 2.6% 2.5% 16.0% 16.6% 16.0% 15.7% 5.6% 15.8% 3.1% 5.8% 4.9% 5.9% 5.4% 2.8% 2.5% 14.1% 5.0% 4.0% 4.9% 2.4% 6.5% 3.9% 14.7% 5.2% 2.6%
Slide 6: Market Outlook
Market Outlook (Unit: KRW bn, % ) Online Ad Market Mobile Ad 2,170 2,397 2,618 2,913 2,170 2,397 2,618 2,913 892 938 631 416 (31%) 840 216 (17%) (24%) (10%) 777 750 1,954 1,981 1,987 2021 1,975 1,778 1,620 1,420 2012 2013 2014(F) 2015(F) 2012 2013 2014(F) 2015(F) Search Ad Display Ad Mobile PC (Sour
Slide 7: Search Ad: Improvements on Search Service
Search Ad Improvements on Search Service • Plans to launch various search services that focus on identifying the needs of search users to provide the most optimal information. Standard Content Collections Daum Instant Answer Real-time Music Search ex) Weather of USA in April ex) Size of Seoul Music
Slide 8: Search Ad Network
Search Ad Search Ad Network • More than 200 Search Ad network partners(publishers)including Nate, Bing, Zum • ROI of advertisers improved more than 50% compare to Overture platform due to the quality control of platform daum.net nate.com Search Ad Network(Publishers) Paid Search Listings by Daum SA
Slide 9: Display Ad: Expansion of Video Ad
Display Ad Expansion of Video Ad • Due to increasing demand in mobile video contents, expansion of those area will be followed by strengthening partnership with terrestrial broadcasts. • Strengthens advertising product lineup intended for devices(PC and mobile) and video contents(VOD, Live broadcast
Slide 10: Integrated Mobile Advertising Platform
Display Ad Integrated Mobile Advertising Platform 【CPM. CPC】 【CPA】 Ad@m TNK Ad network Cash Slide(NBT Partners) No.1 Mobile Branding Ad Platform Acquisition in July 1, 2013 Strategic Alliance in June, 2013 9,100 Partners & 16bn Monthly PV 2,000 Partners & 100mn Downloads Smart phone lock screen ad p
Slide 11: Daum Display Network (DDN)
Display Ad Daum Display Network (DDN) • Bidding based CPC display advertising product which enables advertisers to display their targeting ads on high quality sites including Daum and 60 publishers’ websites such as Afreeca TV, Zum, Nate and etc. (Launched in March 2014) • Targeting technologies for
Slide 12: Mobile Daum
Service_Mobile Mobile Daum • Premium contents for attracting mobile users and enhancing the activity rate Story Ball Webtoon Sports contents • Exclusive mobile optimized • Webtoon app downloads • Various sports contents contents on various themes exceeds 6mn includes EPL, Bundesliga, • 154 stories &
Slide 13: Buzz Launcher
Service_Mobile Buzz Launcher • SNS based launcher service allows users to create and share their home screens • Since its official launch in June 2013, the number of users has steadily grown and the app downloads exceeds 9mn. Buzz Launcher Downloads 10.0 9mn Widget 8.0 6.0 4.0 Icons & Apps 2.0 Dock
Slide 14: Marketing Alliance for Buzz Launcher
Service_Mobile Marketing Alliance for Buzz Launcher • Focuses on the increase of users through Daum in Korea and Yahoo in Japan. • Co-markets and produces hompack on popular subjects with various partners (ex. SKT, YG Entertainments, etc.) Buzz Launcher in Daum Homepack with partners Buzz launcher f
Slide 15: Game Publishing Strategy
Service_Game Game Publishing Strategy • Plans to publish three large scale online PC games in 2014 (June: PS2, 2H : Black Deserts, Winning Putt) • Strengthens Daum’s young user base which leads to attracting advertisers • Seeks opportunities in competitive mobile game market while leveraging traffic