Slide 1: Kakao Investor Relations June 2017
Kakao June 2017 | Investor Relations
Slide 2: Table of Contents
Table of Contents 1. Business Area 2. Revenue at a Glance 3. Kakao Talk 4. Advertising 5. Content 6. Commerce 7. Mobility 8. Fintech [Appendix] 1Q 2017 Earnings Results 1
Slide 3: Business Area
Business Area Business Media Content Mobility Daum Portal Talk Channel Kakao Story Kakao Game MelOn Kakao Page Kakao Taxi Kakao Navi Kakao Driver Search Technologies AI / NLP / voice KakaoPay Infrastructure Data Business 2
Slide 4: Revenue at a Glance
Revenue at a Glance Advertising Content Others Portals Daum PC Daum Mobile A D Talk Plus Friend Talk PC Brand Emoticon (KRW mn) V E Messenger Notification Talk Friend Talk Talk Reward R Talk Hairshop* Auto View Talk Order 453,839 T 443,787 I SNS Kakao Story S I 20% 20% Shopping Kakao Style N G Video
Slide 5: Kakao Talk
Kakao Talk • Continue to grow Kakao Talk domestic active users: 351K QoQ • Reinforce user’s content consumption habit by introducing content feed(Talk Channel) and search function (# Search) on Kakao Talk Monthly Active Users Talk Channel #(Sharp) Search 26mn MAUs 10mn MAUs 42,431 41,915 42,080 41,4
Slide 6: Advertising
Advertising • New keyword-based ads product that is more personalized and optimized for PC/Mobile/Kakao Talk users • Maximize advertising efficiency by developing premium branding ads and launching new audience ads platform Advertising Revenue Trend by Platforms Advertising Product Line-ups (KRW mn)
Slide 7: Advertising_Daum(Portal)
Advertising_Daum(Portal) • Daum-PC homepage update and increase of ads loads corresponding to the context (Apr. 2017) • New mobile ads such as 1boon, Focus View, Photo View, native ads, etc., reflecting latest trends PC Portal Advertising Products Mobile Advertising Products [Daum PC Portal] [Daum M
Slide 8: Advertising_Kakao
Advertising_Kakao • Kakao accounts for 23% of total advertising revenue in 1Q 2017 (Kakao Talk 51% > Kakao Story 31% > Kakao Style 18%) • Plan to expand into a business platform, which will enable customer supports, orders, reservations and payments within Kakao Talk Kakao Advertising Product Line-u
Slide 9: Content_Game
Content_Game • Strengthening mobile game content by enhancing marketing capability via the Game-Tab and expanding publishing lineup • Continuous and diligent update on PC publishing titles and new PC game discovery/sourcing Mobile Game Line-ups Revenue Trend by Platforms 93,186 Channeling (KRW mn) 7
Slide 10: Content_Music
Content_Music • Daily new registered users of MelOn more than doubled after linking with Kakao account since Sep.2016 • Improve user experience with addition of the Kakao Pay as a payment method since Jan. 2017 Loen Business Overview Synergy with Kakao ▶ Digital music service(B2C) User increase and
Slide 11: Content_Others
Content_Others • Kakao Page, No1. mobile literature service app in Korea, continues to increase number of paying users • ‘Cash Friend,’ the reward-based ad platform was launched in May 2017 Kakao Page Kakao Page Transaction Volume Trend Other Content Revenue Trend ▶ 12mn users(May. 2017) ▶ Kakao Pag
Slide 12: Commerce_Gift Shop
Commerce_Gift Shop • Mobile social commerce with 2,000 brands and 100,000 products in Kakao Talk • Carry out sustainable growth through UI/UX upgrades such as category expansion, multi-product purchase and feedback features Kakao Talk Gift Shop Example of Gift Shop Use Revenue Growth Trend [Kakao Ta
Slide 13: Commerce_Kakao Friends
Commerce_Kakao Friends • Sustainable growth through large-scale stores, online/global expansion, and product innovation • Secured L-T partnership with large IP licensees, expand publishing business, and cooperate with various brands Quaterly Revenue Trend Flagship Stores / Museum Brand Partnership /
Slide 14: Smart Mobility
Smart Mobility • Lead smart mobility market innovation centering Kakao Taxi • Connect the Kakao Taxi user base seamlessly to more smart mobility services Smart Mobility Kakao Taxi ▶ 14 million passengers, 360 million cumulative number of calls ▶ Test driving marketing for Benz, Volkswagen, Ford and
Slide 15: Fintech
Fintech • Kakao Pay subscribers 14.5 million, total transaction volume 400 billion KRW in 1Q17 • Significantly expanding the base through partnership with Alipay, which has 450 million users worldwide • Received mobile banking business license in April 5, official launch of Kakao Bank will be in 2H1
Slide 16: [Appendix] Earnings Results - Revenue
[Appendix] Earnings Results - Revenue Quarterly Revenue Breakdown (KRW mn) 453,839 443,786 391,391 376,519 90,836 88,668 49,911 66,101 254,046 234,392 241,698 242,483 226,482 229,580 221,521 10,885 221,816 12,168 11,112 13,840 20,746 21,509 190,405 198,365 73,679 76,764 60,404 69,063 67,391 91,588 1
Slide 17: [Appendix] Earnings Results – Revenue Breakdown
[Appendix] Earnings Results – Revenue Breakdown(KRW mn) Advertising - PC Advertising - Mobile Content - Game Content - Music Content - Others 154,966 153,560 145,460 146,677 221,521 221,816 136,203 141,482 198,365 129,385 126,925 133,302 190,405 10% 39% 14% 12% 37% 40% 42% 11% 46% 52% 45% 50% 53% 48
Slide 18: [Appendix] Consolidated Financial Statements
[Appendix] Consolidated Financial Statements Consolidated Statements of Income Consolidated Statements of Financial Position (KRW mn) 1Q16 2Q16 3Q16 4Q16 1Q17 (KRW mn) 2015.12.31 2016.12.31 2017.3.31 Revenues 242,483 376,519 391,391 453,839 443,787 Current Assets 970,067 1,216,958 1,234,450 Advertis
Slide 19: [Appendix] Financial Statements (Kakao Only)
[Appendix] Financial Statements (Kakao Only) Statements of Income Statements of Financial Position (KRW mn) 1Q16 2Q16 3Q16 4Q16 1Q17 (KRW mn) 2015.12.31 2016.12.31 2017.3.31 Revenues 203,027 206,774 210,165 241,239 225,889 Current Assets 718,533 511,067 493,467 Advertising 124,481 130,580 120,915 13