Investor Relations

Nov, 2015

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DisclaimerThis presentation is for the convenience of investors and future prospects of the company and has been prepared as an informative guide that might assist interested parties in gaining an insight into the financial status of the company. In this context, any opinions expressed within this document, regarding the company's potential future performance, should be viewed as being accurate at the time of preparation. However, cognizance should be taken of the fact that uncertainty may dictate that actual performance differs substantially from any views articulated herein.

Danal Business

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• Simple and Fast

• Widely adoptable

• Universal payment flow

• 80+ Direct Connections to

major Mobile Operators

• Various carrier partnerships

• Global payments network

• Smart e-wallet solution

• Covers 12,000+ stores

• Compatible with various

platforms/POS

(Online) Mobile Payments

(Offline)Barcode Payments Global Business

IPN (International Payment Network)

Dan

al Bu

siness

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Changes in the Domestic Mobile Payment Market

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mestic B

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Danal’s Transaction Amount Breakdown Market Share by Payment Type

Total Domestic Market Transaction Amount Danal's Domestic Market Transaction Amount -

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2,243

898

2,682

1,227

3,345

1,625

3,545

1,634

3,909

1,801

2000FY

2001FY

2002FY

2003FY

2004FY

2005FY

2006FY

2007FY

2008FY

2009FY

2010FY

2011FY

2012FY

2013FY

2014FY

2015FY(E)

(Units : USD Million, 1USD=1100 KRW)

2010FY 2011FY 2012FY 2013FY 2014FY 2015 3Q

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

632 647 681 769 590

421

148 252

549

857 1,043

855

Digital contents Tangible goods

(Units : USD Million, 1USD=1100 KRW)

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* Domestic corporate communications services market and sector-specific market outlook (KRG, 2014)

64%7%

29% Credit Card

Mobile PaymentOthers

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Danal’s Monthly Transaction Amount Danal's Transaction Amount per transaction (ARPU)

Jan

Feb

Mar Apr

May Ju

n Jul

Aug Sep

Oct

Nov Dec

50

70

90

110

130

150

2015 FY 2014 FY 2013 FY

2012 FY 2011 FY 2010 FY

(Units : USD Million, 1USD=1100 KRW)

2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 3Q -

5.00

10.00

15.00

20.00

25.00

7.68 7.72 8.22

10.17 10.21 10.78

12.80 14.18

16.89 18.74 20.17 21.48

Digital Tangible Goods

(Units : USD,1USD=1100 KRW)

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Important Merchant

[Digital]

[Tangible]

Domestic Online Mobile Payments

[Basic]

1 Time Reg-

istration

[Simple]

On

line M

ob

lie Paym

ent

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BarTong

Offlin

e Barco

de P

aymen

t

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Account Setup Input PIN Select Payment Generate Barcode

“You can setup various payment backends to BarTong so that you

can customize the way you make payments”

Credit cardBank TransferMobile

Payment

■ BarTong is an offline mobile payment solution that utilizes barcode technology. With a simple barcode,

you can make payments at any of our preferred merchants and partners.

(BarTong utilizes the merchant’s existing barcode scanner. Even without a scanner, the barcode number

can be manually input into the POS to complete the purchase)

BarTong Partners & Services

Offlin

e Barco

de P

aymen

t

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CU / 7-11 / BuyTheWay as well as over 18,000+ stores

Expansion into large department stores

and other tourist hotspots

Offline Payments (Barcode)

BarTong Bank Wallet Kakao

Jeju BarTong WeChat Pay

• Barcode Technology (incl. Carrier Billing, Credit Card, Bank)

• Simple and fast one-time barcode generation

• Topup your Kakao Bank Wallet account first (Prepaid)

• Through Android’s widgets, offline payments made possible

• Barcode payments made available at all tourist destinations

• Mobile discounts available at tourist destinations (Mobile, Pre-

paid, Credit Card)

• Using Tencent’s WeChat barcode application, tourists can make

purchases at any of our BarTong partner’s locations including con-

venient stores and tourist destinations

Offlin

e Barco

de P

aymen

t

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Danal’s US Subsidiary (BilltoMobile)

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Danal’s US Subsidiary Transaction Amount

Dec 2006DANAL Inc es-tablished

May 2009Verizon launches with BilltoMobile Oct 2010

AT&T launches with BilltoMo-bile

Feb. 2011Sprint launches with BilltoMobile

Aug 2011T-Mobile signs with BilltoMobile

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Expansion Strategy

(Unit : USD)

Jan Feb Mar Apr May

Jun Jul Aug

Sep Oct Nov

Dec

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

2015 FY

2014 FY

2013 FY

2012 FY

2011 FY

(Unit : USD)

2010 FY

2011 FY

2012 FY

2013 FY

2014 FY

2015 3Q

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

Global

TMO

SPR

AT&T

VRZ

1111

Diversified Business & Product Portfolio

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1. Mobile Network Authentication

2. Subscriber Data Match

3. Device Account Attributes

4. Phone Location

5. Payments

6. Autofill

7. Offline Payment

2014 March - Partnership with Billeo

2014 August - Partnership with Locaid

2014 November - Partnership with Western Union

2015 May - Partnership with Level up (officially launches Mobile Authentication)

2015 Jun - Partnership with Orange Mobile

2015 Aug - Partnership with Equicax (consumer credit reporting agency in the United States)

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Danal US’ Mobile Authentication and Autofill

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Direct Mobile Billing Coverage

Reseller & End Merchant Regular Merchant

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ess

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Appendix

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Local Online Payment Services

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Local Offline/Store Payment Services

Overseas Online Payment Services Overseas Offline/Store Payment Services

*Direct Carrier Billing

Make purchases directly through your mo-

bile operator’s bill.

*Bank Wallet Kakao

Korea’s homegrown eWallet payment systems that allows P2P payment ser-vices locally.

*Smart Pay Services

Korea’s homegrown eWallet payment sys-tems are now making payments more con-venient.

*Alipay

Alipay is a third-party online payment so-lution in China. Alipay provides an es-crow payment service that reduces transaction risk for online consumers.

*PayPal

PayPal is an online money transfers ser-vice that acts as an electronic alternative to traditional paper methods like checks and money orders.

*Tenpay

An integrated payment platform launched by Tencent to meet the needs of its 1.1 bil-lion QQ users, is one of China’s leading on-line payment platform.

*LoopPay

LoopPay’s Magnetic Secure Transmis-sion™ (MST) technology turns in-store payment terminals where you normally swipe a credit card into contactless read-ers.

*NFC Payments

NFC Card emulation mode enables NFC-enabled devices such as smartphones to act like smart cards, allowing users to perform transactions such as payments.

*Card Reader Payment Service

Companies like PayPal Here, Square, In-tuit now make it possible to create a por-table, mobile POS system for your busi-ness.

*NFC Payments

You can tap and pay with your compati-

ble NFC device at thousands of mer-

chants that accept contactless payments.

*Barcode Payments

(Danal’s BarTong, Mobilians M-Tic)

By utilizing a merchant’s existing POS

system and barcode scanner, we can

make use of one-time barcodes to make

payments in stores.

New purchase flow requires less steps than conventional payment methods, providing a more convenient method of payment whilst retain-ing the same security as before

No separate application required / User is not required to input a PIN or Passcode

Subsequent UsageFirst time usage

SMS Authentication SMS Authentication

[Enter Info → Verify Info]

Minimal User Interaction

Input Info & Agree to T&C Verify Info & Agree to T&C

Co

mp

lete

A New Convenient Online Mobile Payment Service

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Co

mp

lete

Biometric Authentication (bioMe)

- Confirmation of purchase

shown to user with SMS

and/or Email confirmation

depending on setup.

- Review the product and se-

lect BioMe as the payment op-

tion.

- Within 30 seconds (default),

complete the next steps to con-

firm your purchase.

830101 *******

********

830101 *******

********

830101 *******

********

2. Check Details 3. Scan Finger 4. Complete Payment

- Authentication and authorize payment

by scanning your fingerprint using the

phone’s biometric fingerprint scanner.

* Reinstallation required after 3 failed login

attempts.

1. Select Payment

[PC]

[Mobile]

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1818

Danal US Mobile Payment Service

415 - 123 - 456794410

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1. After selecting the product, enter your Mobile Number, Billing ZIP Code.

2. A random 4-6 digit PIN code will be sent to your mobile device. Enter the PIN code into the payment page.

3. After successfully completing the payment process, we will send a confirmation SMS confirming your pur-chase.

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18.7%

2.1%

79.2%

Largest shareholder & Others Foreigners

Others

Ownership Structure – Danal Co., Ltd Ownership Structure – Danal Inc.

* Based on 2015-09-30 information* Based on 2015-09-30 information

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60.19%

9.30%

11.94%

18.57%

Danal Co., LtdMorgenthaler Partners

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Danal Subsidiaries / Company Ownership

(Units : USD Thousand,1USD=1100 KRW)

Company Name Ownership Core Business2015. 3Q

(Sales / Operating Income)Notes

DANAL INC. 60.2% Danal US / Billtomobile 1,989 △4,035

Danal Information Technology Co.,Ltd.

DANAL LTD 100% Danal China Business 155 △432

DANAL CS&F BV 50% Danal Europe 378 △127

Danal International 80% Clothing distribution, Retail 2,318 215

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Revenue (*2011FY-2014FY : K-IFRS)

Payment Revenue (*2011FY-2014FY : K-IFRS) Revenue & Profit (*2011FY-2014FY : K-IFRS)

* As of 2011-12-31, the content division has been spun-off * As of 2011-12-31, the content division has been spun-off

2010FY 2011FY 2012FY 2013FY 2014FY -

10

20

30

40

50

60

70

80

90

100

50 55 63

82 73

7 10

8

7

7

Mobile ARS

Prepaid/Gift Cards Others

2010FY 2011FY 2012FY 2013FY 2014FY

0

10

20

30

40

50

60

70

80

90

100

60

68

77

93

84

8 8 8 9 8

Revenue Profit

2010FY 2011FY 2012FY 2013FY 2014FY -

10

20

30

40

50

60

70

80

90

100

60 68

77 93

84

16 15 -

-

Payment Revenue Contents Revenue

2010FY 2011FY 2012FY 2013FY 2014FY (2)

-

2

4

6

8

10

8 8 8 9

8

0.1

-1.4

-

-

Payment Profit Content Profit

(Units : USD Million,1USD=1100 KRW)

(Units : USD Million,1USD=1100 KRW)

(Units : USD Million,1USD=1100 KRW)

(Units : USD Million,1USD=1100 KRW)

Profit (*2011FY-2014FY : K-IFRS)

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요약 재무제표 (K-GAAP 기준 )Financial Statement (K-IFRS Separate)

Separate Financial Statement 2013FY 2014FY 2015.3Q

Assets 110.885 120.524 208.680

Cash & Cashable Assets 40.904 27.204 33.968

Short-term Funds 19.181 9.453 36.317

Other Current Assets 50.801 83.867 138.395

Non-current Assets 41.135 44.336 48.166

Tangible Assets 1.239 1.029 0.901

Intangible Assets 5.362 3.956 3.166

Other Non-current Assets 34.534 39.351 44.099

Total Assets 152.020 164.860 256.846

Current Liabilities 68.055 74.729 99.328

Non-Current Liabilities 2.554 2.686 50.179

Total Liabilities 70.608 77.415 149.507

Capital 9.286 9.579 9.854

Paid-in Capital 66.513 70.219 73.771

Other Capital Components (0.623) (0.723) 14.468

Accumulated Earnings 6.235 8.369 9.247

Total Ownership Interest 81.412 87.445 107.340

Separate Income Statement 2013FY 2014FY 2015.3Q

Operating Revenue 93.361 83.971 68.681

Operating Costs 84.217 75.963 63.439

Operating Profit 9.144 8.008 5.242

Gain on sale of investments (4.730) (7.022) (5.285)

Investment Income 0.936 1.432 1.061

Investment Cost 0.467 0.247 1.126

Non-operating Revenue 2.218 7.942 6.211

Non-operating Costs 5.762 4.781 4.285

Income before Taxes 1.339 5.332 1.817

Income Tax Expense 2.408 3.051 0.051

Net Income (1.615) 2.282 1.766

Earnings Per Share (1USD) (0.055) 0.115 0.082

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(Units : USD Million,1USD=1100 KRW)

(Units : USD Million,1USD=1100 KRW)

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요약 재무제표 (K-GAAP 기준 )Financial Statement (K-IFRS Consolidated)

Consolidated Financial Statement 2013FY 2014FY 2015.3Q

Current Assets 209.375 189.609 210.164

Cash & Cashable Assets 46.210 30.227 34.725

Short-term Funds 19.181 9.457 27.231

Other Current Assets 143.985 149.925 148.207

Non-current Assets 50.318 54.583 65.125

Tangible Assets 1.573 1.206 1.003

Intangible Assets 28.173 25.866 25.563

Other Non-current Assets 20.573 27.510 38.559

Total Assets 259.694 244.192 275.288

Current Liabilities 171.274 149.577 118.960

Noncurrent Liabilities 11.765 13.205 55.647

Total Liabilities 183.039 162.783 174.607

Shared owned by Dominant Firm 81.770 88.160 109.391

Capital 9.286 9.579 9.854

Paid-in Capital 66.513 70.219 73.771

Other Capital Components 0.940 0.752 14.684

Accumulated Earnings 5.030 7.611 11.083

Non-Controlling Interests (5.115) (6.751) (8.710)

Total Shareholders' Equity 76.655 81.408 100.681

Consolidated Income Statement 2013FY 2014FY 2015.3Q

Operating Revenue 107.367 89.566 73.700

Operating Costs 103.235 85.849 73.883

Operating Profit 4.133 3.717 (0.183)

Gain on sale of investments (Subsidiary) 2.821 0.000 0.000

Loss on sale of investments in associates 0.054 0.000 0.000

Loss on valuation of equity method in-vestments

2.991 2.405 0.814

Investment Income 1.085 1.415 0.994

Investment Cost 5.291 3.523 1.954

Non-operating Income 5.725 7.039 6.324

Non-operating Costs 3.841 3.430 3.793

Income before Taxes 1.586 2.814 0.575

Income Tax Expense 1.404 2.505 (0.217)

Net Income 0.183 0.308 0.792

Equity holders of the Parent Company profit and loss

2.705 2.567 2.589

Non-controlling interest in income (2.523) (2.258) (1.797)

Earnings Per Share (1USD) 0.140 0.128 0.119

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(Units : USD Million,1USD=1100 KRW)

(Units : USD Million,1USD=1100 KRW)

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