Investor Relations Nov 2015 0 Disclaimer This presentation

Investor Relations Nov, 2015 0

Disclaimer This 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. 1

Danal Business IPN (International Payment Network) (Offline) Barcode Payments Global Business • Smart e-wallet solution • 80+ Direct Connections to • Covers 12, 000+ stores major Mobile Operators Danal Business (Online) Mobile Payments • Simple and Fast • Widely adoptable • Compatible with various • Various carrier partnerships • Universal payment flow platforms/POS • Global payments network 2

Changes in the Domestic Mobile Payment Market (Units : USD Million, 1 USD=1100 KRW) 4 500 2000 FY 3 909 4 000 2001 FY 3 545 3 345 3 500 3 000 2002 FY 2003 FY 2004 FY 2 682 2005 FY 2 243 2 500 1 801 2 000 1 634 1 625 1 227 1 500 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 500 2012 FY 2013 FY - Total Domestic Market Transaction Amount Danal’s Transaction Amount Breakdown 2014 FY Danal's Domestic Market Transaction Amount 2015 FY(E) Market Share by Payment Type (Units : USD Million, 1 USD=1100 KRW) 1 800 Domestic Business 898 1 000 2006 FY 1 600 1 400 1 200 857 1 000 800 600 400 200 - 549 148 29% 1 043 855 252 64% 7% 632 647 681 2010 FY 2011 FY 2012 FY Digital contents 769 2013 FY 590 2014 FY Tangible goods Credit Card Mobile Payment Others 421 2015 3 Q * Domestic corporate communications services market and sector-specific market outlook (KRG, 2014) 3

Danal’s Monthly Transaction Amount Danal's Transaction Amount per transaction (ARPU) (Units : USD Million, 1 USD=1100 KRW) (Units : USD, 1 USD=1100 KRW) 25, 00 150 20, 00 130 16, 89 15, 00 110 90 10, 00 70 5, 00 12, 80 7, 68 18, 74 20, 17 21, 48 10, 21 10, 78 14, 18 8, 22 7, 72 10, 17 2014 FY 2013 FY 2012 FY 2011 FY 2010 FY Important Merchant ec D ov N ct O p Se g Au Ju l Ju n ay r M ar M b Fe n Ja Ap 2015 FY - 2010 FY 2011 FY 2012 FY Digital 2013 FY 2014 FY Tangible Goods 2015 3 Q Domestic Business 50 [Digital] [Tangible] 4

Domestic Online Mobile Payments [Basic] Registration Online Moblie Payment 1 Time [Simple] 5

Bar. Tong ■ Bar. Tong 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. (Bar. Tong 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) Account Setup Input PIN Select Payment Generate Barcode Offline Barcode Payment “You can setup various payment backends to Bar. Tong so that you can customize the way you make payments” Mobile Payment Bank Transfer Credit card 6

Bar. Tong Partners & Services 18, 000+ stores Offline Barcode Payment CU / 7 -11 / Buy. The. Way as well as over Expansion into large department stores and other tourist hotspots 7

Offline Payments (Barcode) Bar. Tong Bank Wallet Kakao • Topup your Kakao Bank Wallet account first (Prepaid) • Simple and fast one-time barcode generation • Through Android’s widgets, offline payments made possible Jeju Bar. Tong • Barcode payments made available at all tourist destinations • Mobile discounts available at tourist destinations (Mobile, Prepaid, Credit Card) We. Chat Pay Offline Barcode Payment • Barcode Technology (incl. Carrier Billing, Credit Card, Bank) • Using Tencent’s We. Chat barcode application, tourists can make purchases at any of our Bar. Tong partner’s locations including convenient stores and tourist destinations 8

Expansion Strategy Danal’s US Subsidiary (Billto. Mobile) Feb. 2011 Sprint launches with Billto. Mobile Aug 2011 May 2009 Verizon launches with Billto. Mobile Oct 2010 T-Mobile signs with Billto. Mobile AT&T launches with Billto. Mobile DANAL Inc established Danal’s US Subsidiary Transaction Amount (Unit : USD) 80 000 70 000 6 000 5 000 4 000 3 000 2015 FY 60 000 Global 2014 FY 50 000 TMO 2013 FY 40 000 SPR 2012 FY 2011 FY 2 000 1 000 - (Unit : USD) 90 000 8 000 Global Business Dec 2006 AT&T 30 000 VRZ 20 000 10 000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec - 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 3 Q 9

Diversified Business & Product Portfolio 1. Mobile Network Authentication 2. Subscriber Data Match 3. Device Account Attributes 5. Payments 6. Autofill 7. Offline Payment Global Business 4. Phone Location 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) 10

Danal US’ Mobile Authentication and Autofill Appendix 11

Direct Mobile Billing Coverage Regular Merchant Global Business Reseller & End Merchant 12

Appendix

Local Online Payment Services *Direct Carrier Billing Make purchases directly through your mobile operator’s bill. Local Offline/Store Payment Services *Barcode Payments (Danal’s Bar. Tong, Mobilians M-Tic) By utilizing a merchant’s existing POS system and barcode scanner, we can make use of one-time barcodes to make *Smart Pay Services payments in stores. Korea’s homegrown e. Wallet payment systems are now making payments more convenient. *NFC Payments You can tap and pay with your compatible NFC device at thousands of merchants Korea’s homegrown e. Wallet payment systems that allows P 2 P payment services locally. that accept contactless payments. Overseas Online Payment Services Overseas Offline/Store Payment Services *Pay. Pal *Card Reader Payment Service Pay. Pal is an online money transfers service that acts as an electronic alternative to traditional paper methods like checks and money orders. Companies like Pay. Pal Here, Square, Intuit now make it possible to create a portable, mobile POS system for your business. *Alipay *NFC Payments Alipay is a third-party online payment solution in China. Alipay provides an escrow payment service that reduces transaction risk for online consumers. NFC Card emulation mode enables NFCenabled devices such as smartphones to act like smart cards, allowing users to perform transactions such as payments. *Tenpay *Loop. Pay An integrated payment platform launched by Tencent to meet the needs of its 1. 1 billion QQ users, is one of China’s leading online payment platform. Loop. Pay’s Magnetic Secure Transmission™ (MST) technology turns in-store payment terminals where you normally swipe a credit card into contactless readers. Appendix *Bank Wallet Kakao 14

A New Convenient Online Mobile Payment Service Ø New purchase flow requires less steps than conventional payment methods, providing a more convenient method of payment whilst retaining the same security as before Ø No separate application required / User is not required to input a PIN or Passcode First time usage Input Info & Agree to T&C Subsequent Usage SMS Authentication Verify Info & Agree to T&C SMS Authentication Appendix Complete [Enter Info → Verify Info] Minimal User Interaction 15

Biometric Authentication (bio. Me) 1. Select Payment 2. Check Details 3. Scan Finger 4. Complete Payment [PC] 830101 ******* *** * 830101 ******* * - Review the product and - Authentication and authorize payment - Confirmation of purchase select Bio. Me as the payment by scanning your fingerprint using the shown to user with SMS option. phone’s biometric fingerprint scanner. and/or Email confirmation Appendix [Mobile] depending on setup. - Within 30 seconds (default), complete the next steps to * Reinstallation required after 3 failed login confirm your purchase. attempts. 16

Danal US Mobile Payment Service 415 - 123 - 4567 94410 Appendix 2161 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 purchase. 17

Ownership Structure – Danal Co. , Ltd 18. 7% Ownership Structure – Danal Inc. 18. 57% 2. 1% 11. 94% 79. 2% 60. 19% 9. 30% Largest shareholder & Others Foreigners Others Danal Co. , Ltd Morgenthaler Partners * Based on 2015 -09 -30 information (Units : USD Thousand, 1 USD=1100 KRW) Company Name Ownership DANAL INC. 60. 2% Danal Information Technology Co. , Ltd. DANAL LTD 100% DANAL CS&F BV Danal International Core Business Danal US / Billtomobile 2015. 3 Q (Sales / Operating Income) 1, 989 △ 4, 035 Danal China Business 155 △ 432 50% Danal Europe 378 △ 127 80% Clothing distribution, Retail 2, 318 215 Notes Appendix Danal Subsidiaries / Company Ownership 18

Revenue (*2011 FY-2014 FY : K-IFRS) Profit (*2011 FY-2014 FY : K-IFRS) (Units : USD Million, 1 USD=1100 KRW) 100 10 - 90 80 70 16 60 0, 1 - 6 50 40 30 - 8 - 15 (Units : USD Million, 1 USD=1100 KRW) 77 68 60 93 4 84 8 8 - 10 2010 FY 2011 FY 2012 FY 2014 FY - 1, 4 (2) 2010 FY Contents Revenue 7 60 50 10 7 8 60 82 30 20 55 50 63 73 Mobile ARS 2012 FY 68 60 30 10 2011 FY 84 77 40 20 2010 FY (Units : USD Million, 1 USD=1100 KRW) 50 10 - 93 80 70 40 Content Profit 100 90 7 70 2014 FY Revenue & Profit (*2011 FY-2014 FY : K-IFRS) (Units : USD Million, 1 USD=1100 KRW) 80 2013 FY * As of 2011 -12 -31, the content division has been spun-off Payment Revenue (*2011 FY-2014 FY : K-IFRS) 90 2012 FY Payment Profit * As of 2011 -12 -31, the content division has been spun-off 100 2011 FY Appendix Payment Revenue 2013 FY 8 2 20 - 9 8 2013 FY Prepaid/Gift Cards Others 2014 FY 0 8 2010 FY 8 2011 FY 8 2012 FY Revenue Profit 9 2013 FY 8 2014 FY 19

요약 재무제표(K-GAAP 기준) Financial Statement (K-IFRS Separate) (Units : USD Million, 1 USD=1100 KRW) Separate Financial Statement 2013 FY 2014 FY 2015. 3 Q (Units : USD Million, 1 USD=1100 KRW) Separate Income Statement 2013 FY 2014 FY 2015. 3 Q 93. 361 83. 971 68. 681 33. 968 Operating Costs 84. 217 75. 963 63. 439 9. 453 36. 317 Operating Profit 9. 144 8. 008 5. 242 50. 801 83. 867 138. 395 (4. 730) (7. 022) (5. 285) 41. 135 44. 336 48. 166 Investment Income 0. 936 1. 432 1. 061 Tangible Assets 1. 239 1. 029 0. 901 Investment Cost 0. 467 0. 247 1. 126 Intangible Assets 5. 362 3. 956 3. 166 Non-operating Revenue 2. 218 7. 942 6. 211 34. 534 39. 351 44. 099 Non-operating Costs 5. 762 4. 781 4. 285 152. 020 164. 860 256. 846 Income before Taxes 1. 339 5. 332 1. 817 68. 055 74. 729 99. 328 Income Tax Expense 2. 408 3. 051 0. 051 2. 554 2. 686 50. 179 Net Income (1. 615) 2. 282 1. 766 70. 608 77. 415 149. 507 Earnings Per Share (1 USD) (0. 055) 0. 115 0. 082 9. 286 9. 579 9. 854 Paid-in Capital 66. 513 70. 219 73. 771 Other Capital Components (0. 623) (0. 723) 14. 468 6. 235 8. 369 9. 247 81. 412 87. 445 107. 340 110. 885 120. 524 208. 680 Cash & Cashable Assets 40. 904 27. 204 Short-term Funds 19. 181 Other Current Assets Non-current Assets Other Non-current Assets Total Assets Current Liabilities Non-Current Liabilities Total Liabilities Capital Accumulated Earnings Total Ownership Interest Gain on sale of investments Appendix Operating Revenue Assets 20

요약 재무제표(K-GAAP 기준) Financial Statement (K-IFRS Consolidated) (Units : USD Million, 1 USD=1100 KRW) Consolidated Financial Statement 2013 FY Current Assets 2014 FY 2015. 3 Q 209. 375 189. 609 210. 164 (Units : USD Million, 1 USD=1100 KRW) Consolidated Income Statement 2013 FY 2014 FY 2015. 3 Q Operating Revenue 107. 367 89. 566 73. 700 Cash & Cashable Assets 46. 210 30. 227 34. 725 Operating Costs 103. 235 85. 849 73. 883 Short-term Funds 19. 181 9. 457 27. 231 Operating Profit 4. 133 3. 717 (0. 183) Gain on sale of investments (Subsidiary) 2. 821 0. 000 Loss on sale of investments in associates 0. 054 0. 000 Loss on valuation of equity method investments 2. 991 2. 405 0. 814 Other Current Assets Non-current Assets 143. 985 149. 925 148. 207 54. 583 65. 125 Tangible Assets 1. 573 1. 206 1. 003 Intangible Assets 28. 173 25. 866 25. 563 Investment Income 1. 085 1. 415 0. 994 Other Non-current Assets 20. 573 27. 510 38. 559 Investment Cost 5. 291 3. 523 1. 954 Total Assets 259. 694 244. 192 275. 288 Non-operating Income 5. 725 7. 039 6. 324 Current Liabilities 171. 274 149. 577 118. 960 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 (2. 523) (2. 258) (1. 797) 0. 140 0. 128 0. 119 Noncurrent Liabilities Total Liabilities Shared owned by Dominant Firm Capital 11. 765 13. 205 55. 647 183. 039 162. 783 174. 607 81. 770 88. 160 109. 391 9. 286 9. 579 9. 854 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 Paid-in Capital Non-controlling interest in income Earnings Per Share (1 USD) Appendix 50. 318 21