Investor Relations

May 2020

Disclaimer

This presentation was made as the dates shown and reflected management views as of these dates. All
financial information regarding CJ ENM’s business results and forward looking statements and beliefs about
future events are subject to known risks and uncertainties that may cause actual results to differ from those
stated or implied.

The financial information in this document are consolidated earnings results based on K‐IFRS. This document
is provided for the convenience of investors only, before our external audit on financial results of our
headquarter is completed. These statements involve risks and uncertainties, and actual results may differ.

This document contains “forward‐looking statements” ‐ that is, statements related to future, not past, events.
In this context, “forward‐looking statements” often address our expected future business and financial
performance.

CJ ENM is under no obligation or responsibility to update the information provided in the presentation in
correspondence to their respective dates. This material is a property of CJ ENM and hence should not be
copied, modified, displayed or distributed in any format, nor it may be sold or used to construct any kind of
database without CJ ENM’s prior written permission.
 CONTENTS

1. Company Overview

2. Mid-Long Term Strategy

3. 1Q20 Earnings Review

4. Financial Summary

5. Appendix

Company Overview
WHO WE ARE

Established through merger b/w CJ O Shopping and CJ E&M in Jul 2018

No.1 MPP in Korea

Major subsidiary: Studio Dragon

17 TV ch, M/S 33%

Business divisions: Media, Commerce, Pictures, Music

No.1 home shopping player
M/S 22%
Media: No.1 MPP in paying TV, operating 17 TV channels

Commerce: Major home shopping player, with overseas sites No.1 PIP & MCN
PIP M/S 23%
Pictures: Film producer & distributor both at home and abroad MCN teams 1,400

Music: No.1 Korean total music station with in-house artists/sub-labels No.1 Film in Korea
M/S 46%
Leading media-commerce company building digital & global expertise

COMPANY OVERVIEW

Sales-mix (2019) Snapshot (as of May 2020)

8.8% Outstanding Shares 21,929,154 shrs

9.2%
Media
44.3% Commerce
Market Cap. 2,759 mn USD

Pictures
Shareholders' Equity 3,176 mn USD
Music
37.7%
P/B 0.87 x

Foreign Investment Limit 49.0 %

*KRW/USD = 1,000

Shareholders’ stake Price information

(‘000 KRW)

270
11.7% CJ (001040.KS)
240
Jay Hyun, Lee & affiliates
10.5%
40.1% 210
Foreign Investor
180
17.0% Domestic Institution
150
Treasury stocks
2.6% 120
18.1% Others 90
01.'15 09.'15 05.'16 01.'17 09.'17 05.'18 01.'19 09.'19 05.'20
5
SALES-MIX (2019)

Media Commerce

15.1%
TV Ad. TV
36.5%
MSO subscription 46.8% Digital
50.4%

Others 38.1% Others

13.1%

Pictures ∙ Musical Music

22.5%
Theatre
39.0% Records/digital
Ancillary
4.1%
Musical Others
59.3% 61.0%
14.0% Others

BUSINESS MODEL by Divisions

Media Commerce

Commerce GMV
Media Revenue (TV, Digital, Others)

TV Advertising Subscription Fee Others

Merchandising Brand Business

Vendor CJ ENM
Advertiser MSO
Apparel Vera Wang
Beauty Odense
- Export
CJ ENM - Contents Sale
Living, Food.. Other
17 TV channels
- Digital Ads
(4 Premium, 13 Basic))
(PIP, MCN) Commission Revenue
(30 ~ 40%) (100%)

Commerce Revenue
Production Purchase
Drama, Comedy Contents Aggregation COGS
COGS

Gross Profit

7
BUSINESS MODEL by Divisions

Pictures Music

Box Office Revenue Music Revenue

Movie Theater Distributor

50% 50%
Music
Distribution Concert Artist
Distribution Fee Mgmt
5% (B2B/B2C)

Main Investor
45%
B2B B2C
Copyright (65%) Platform (35%)
Cost Recoupment
(Production, Marketing)

Production Distribution Mnet

$
38% 10.25%
Production Investors
40% 60%
Artist Composer $

6.25% 10.5% Users

…

8
 Mid-Long Term Strategy

10

Media Commerce Pictures Music

Studio Merchandising Studio Sub‐labels+more

Production
Drama Variety PB Sub-labels Convention
Co‐production w.
Overseas Studio
Commission Brands & More & More

Content Content Content Content Content

IP Drama Variety Show Movie : Original + IP Remake Concert
TV Home Shopping
Animation MCN Musical : Original + Licensed Convention & Festival
T‐Commerce
Short clip from RMC Web‐drama MD
Branded content Albums & Digital Records
Digital original / spin‐offs Mobile Live In‐house Artists
Commerce short‐form video Commerce

Total Marketing Solution Launch New IP

Total Solution Viewership & Consumption Advertiser’s Demand Analysis Strengthen Trend Analysis
Data Analysis Effective Evaluation Capture the Demand of Viewers and Listeners

Targeted Ad production across Fortify cross—utilization of IP & Artists between divisions

Direct Selling and Offering
Platform and Content Extend Lifecycle of IP both in domestic and overseas

DMP Extend Utilization

Distribution Distribution Distribution Distribution
Distribution Channel Channel Channel Channel
TV Platform Offline Platform Offline Platform : Theatre Streaming Platform
17 TV Channels & More

Digital Platform Content-Commerce Digital Platform Concert + Convention Platform

Digital Platform : OTT and IPTV

Partner
Customer
Advertiser & Viewer Vendor & Consumer Producer & Moviegoer Producer & Audience

11
 Business Strategy and Objectives

Extension of production value chain to grow stronger

Media Music Pictures

• Has top drama writers and producers
• With content power, sells products to
other channels as well as abroad
Extend Production Value Chain
• Expand and secure in‐house artists • Involves in overall project management,
and IPs through sub‐labels training talent and many others
• Maximize synergies with Media’s • Strengthen presence in overseas
music‐oriented TV shows markets with local content

Media Studio Music label Film Studio

Drama studio MMO Film Studio

AOMG
Drama studio
H1GHR Music Records JV in Thailand

Variety show studio Amoeba Culture

CJ Ent.
Turkey subsidiary
Turkey Film
Stone Music
Digital studio D
Swing Entertainment

Belift Lab
Digital studio D

* D stands for division of CJ ENM; Others are CJ ENM’s subsidiaries 12

TV Channels that we own

Own 17 TV Channels including 13 Basic and 4 Premium Channels

General Entertainment Lifestyle Entertainment Movie Entertainment

Representative Channel Movie, Drama

Food, Cooking Content
General Entertainment Ch. Air Drama & Movie of
Air Drama & Variety Shows well‐made genres
for Drama & Variety Shows of Lifestyle Genre
of All Genre
Movie Curation
No.1 Movie Theme, Curation
Infotainment Content Beauty, Fashion Content Ch.
Air Drama & Infotainment Air Variety Shows suggesting
Shows Trendy Styles (Beauty, etc.) Thrill Genre
Movie Ch. specialized for
Millennial Gen. Thrillers/Actions
Air Variety Shows targeting Influencer Content
younger generation Premium Movie
Air Influencer‐made Digital Catch on 1 & 2 are Premium
Content Movie Channels
UHD 4K Content
Offer Premium UHD version
of Ready Made Content Game, e-sports Content Kids Entertainment
Offer e‐sports contents for
younger generation
Animation, Kids
Music Entertainment The first animation‐only Ch.
In Korea and air both
Chinese Content
licensed and in‐house IP
Music Content Air Variety of imported
Variety Shows specialized Chinese Content (Drama) Educational English
for Music Genre Premium Ch. for English
educational content

: Premium Channel (Channel subscription needed)

13
 NEW BIZ MODEL for Digital Strategies

Platform Content Partner Business Model

Ad.
Existing
RMC Advertiser MSO Subscription VOD
Model
TV
Ready Made Content

+
MIM Ad.
RMC PIP
Mobile Advertiser Portal
New UCC ECC
Model Online MCN
Aggregation Archiving OTT

…
Mobile TV(total video) Content Revenue Sharing

Business Feature Current Partners Potential Partners

. Content Curation
. MIM (mobile instant messenger)
. Mobile/online media rep.
PIP . Portals
. Focus on Traffic increase NAVER TV Kakao TV Gom TV
. pre‐roll Ad . Global OTT (over the top)
(Platform In Platform)

. Individuals and Experts created

contents (UCC & ECC)
MCN . Eco‐system for Creators
. Increase Partnership with Global OTT YouTube Youku Tudou iQIYI QQ
(Multi‐Channel Network) Platforms
14

Digital Business

‘2-Way Strategy’ in Digital and Global

PIP (platform in platform) Quarterly PIP traffic PIP enhanced contents consuming
80x <TV ratings share > <PIP traffic share>
70x (%)

NAVER TV Kakao TV Gom TV 60x 38

“Extend platforms and boost up traffic” 50x
Top 5
40x 10
9
MCN (multi channel network) 30x
7
20x 7
Creator: 1,400 teams 10x Others 29
0x
“Expand digital creators and channels” 1Q15 1Q16 1Q17 1Q18 1Q19 1Q20
Source: CJ ENM, Portal site ‘A’ Source: Nielsen, CJ ENM
Digital
Business
In-house OTT Outer Platforms


NAVER TV Kakao TV Youku Netflix
“In-house OTT platform, tving”
‐ Enhance the content library
+ “Diversify ads revenue streams”

‐ Partner with global OTT players ‐ Diversify ads products and clients
‐ Increase the traffic for the digital contents
‐ Adapt to changing media marketplace
‐ Expand further into other OTT platforms
‐ Launch “tving” globally by region

15
 Digital Business Timeline
Acquired Mezzo Media
Korea’s Major Digital Media Rep.
Optimized tool for digital marketing
on online, mobile, and social
media
Built Media Player Vingo
Full HD and Dolby 5.1.
Compatible with Mobile, PC, TV,
etc.
DB
Built Own Solution(CMS)
Digitizing, Archiving of contents.
DB Library of video contents based
on user feed and traffic analysis
YouTube MCN Partnership
Continue expanding official
channels of media, music, etc.
Competitiveness through increase
in subscribers and traffic
2012 ...
Global Business Timeline
Movie, Global Projects
In 2013, expanded co‐production
films for the overseas market.
Box‐office hits <A Wedding
Invitation> in China, <Snowpiercer>
in Global, etc.
Vietnam Cultural Relations
Over 10 years experience in
Vietnam.
Drama <Muingogai> has a record of
35% viewership rating. Expanded
social network and whole body
business in Media & Entertainment
Pop Convention, MAMA
In 2010, renewed <MAMA>,
it had 10 years of history since
2000.
Now representing K‐pop cultures in
Asia, followed by <K‐CON> in
various regions.
2004 ... 2014
Dive deep into digital transformation
tv Pot
Provide Content to Naver & Daum
Online and mobile service of
RMC(ready made contents) of
drama, entertainment, music,
lifestyle, etc.
To expand platforms with portal,
MIM, SNS, etc.
Opened Digital Studio
Digital Exclusive Studio for creator
groups of individuals, experts,
CPs, etc. Production facility
optimized for creating
contents for online, mobile,
and social media
Expand Creator Group
Extend specialties in various
contents including music,
beauty, game, lifestyle, etc.
Korea’s largest content production
partnership
2014
Rolling-out Localization Through the Best Experience
JV Partnership under MOU
Preparing JV with Vietnam VTV.
To expand local contents for the
broadcasting, films, and
advertising, etc.
Export Driven, Program Format
and Production Support
Expand including co‐production such
as <Grandpas over Flower> etc.
and production support
satellite TV such as <happy
invitation> etc. in China
China M Academy
M Academy is a local agency &
training studio. Makes synergy
with cultural relations like as
the M Studio and K‐pop school
2015
Expand to MIM, OTT Platform
Create Basis for global expansion
for Creator Groups Broaden
spectrum to OTT Platforms in
Europe, China, etc.
Expansion through strategic
partnership with leading MCN
players
C Ad
Increase PIP Serviced Platforms
Expand Digital channels and PIP
service with our own CMS solution
and curation.
To bolster digital ad. Revenue
growth through service
expansion linked with our own
ad server
Enhance the Content Library
Partnership with global OTT players
Adapt to changing media
marketplace
2015 2016
Expand Business Capabilities of
Local Culture
Expanding local co‐productions.
To secure competitiveness in
operating stable culture &
entertainment business with
investment/production/
distribution
Establish Local Subsidiary in
China
(YiHeYa),
Established in 2Q15
Amount of Capital raised : W5bn
Shanghai FTZ
Become comprehensive content
studio producing drama,
animation, movies, music, etc.
2016
Compelling original TV & digital
contents
drama, comedy, and reality shows.
Various mix of DOCs
Rebranding & Overseas
expansion of in‐house OTT
Rebranding in Korea.
Launch in Japan and prepare
global launch to increase
presence in OTT market
Expand to V‐Commerce Platform
2015 2016
Continue to show strong data
points at Digital Ads
Accelerate digital Ads revenue
with superior traffic thanks to
our high‐end content
2017
Co‐production with Global
Partners
Co‐work with global networks and
productions, building up know‐
hows and experience on local
content production
Develop co‐produced local
contents further
movie, drama, variety shows,
animation
Premiers of <Final Recipe> in China
Capturing overseas customers:
Establish JV with Major
Cineplex Group
10 co‐productions for next 3 years
2017
Speed up earnings growth with
outstanding content
Enhancing data solution
Strengthen local business models
Use strong data analytics to gain
in Asian markets &
insights into audience. Utilize
pursue new market entrants
strengthened big data
to drive earnings
analytics capability to offer
advertisers data‐driven
marketing solutions
Strengthen Digital business
and Media mix
Maximize synergies from
As an effort to diversify sales traditional TV ads and Digital Ads
channel and to boost both
younger generation and
overseas traffic, DADA Studio
was launched. DADA Studio
offers numerous product
introductory clips in overseas
and home, accumulating a total
of 500 million views in 2017
2018 2020E
16
Expand Global Network
Expand overseas network based on
growth in Asia Region.
Global Culture Leader of Cultural
Trend.
Establish CJ Ent Turkey
Film production & distribution
Recorded W12.0bn revenue &
ASIA No.1 Contents Creator
31% distribution M/S in 4Q17
Increase co‐production with local
production and networks.
Expand local cultural biz. and
business opportunities.
Increase contents power in global
market.
Establish global platform
In July 2018, a global online
commerce platform was
launched. CelebShop global
meets customers world‐wide,
offering the service in 89
countries
2018 2020E
17
1. 2020 Business Outlook

Fortify Content Hit-Ratio and Expand Convergence Digital Distribution

MEDIA TV Ad 10%+, Digital revenue 20%+ growth, profitability focused production

COMMERCE Fortify high profit portfolio, maximize operation synergy of multi-channel

PICTURES Enforce in-house production and project profit, strategical penetration into U.S.

MUSIC Strengthen strategic production and secure global mega-IP

“Secure profitability by “Strengthen Shareholder

“Strengthen
cost-reduction & communication
Digital 〮 Global Business”
production efficiency” Payout ratio 15% or more”
<Revenue> <Operating Profit> <Guidance & Dividend>
CAGR CAGR
(Wtn) (Wbn)
+9% +17%
3.79 3.80  2020 Guidance
3.31
2.94 310.0
2.70
246.1
269.4 Revenue 3.8 Wtn
214.8
163.9
Operating Profit 310.0 Wbn

 Payout ratio 15% or more

2016 2017 2018 2019 2020E
2020 2016 2017 2018 2019 2020
2020E

18
* FY2016 ~ FY2018 is based on CJ ENM consolidated pro‐forma statements excluding CJ Hello earnings as CJ Hello has been liquidated as of Dec. 26th,2019
 1Q20 Earnings Review

20

1. Key Achievements and Strategies

Despite COVID-19, fortify Content & Commerce competitiveness, expand competency for Digital Shift

Weak Revenue High revenue growth in

Due to COVID-19 Untact related and Digital Business
Revenue decrease in TV Ad.,
TVING Paid Media Music Pictures Box Office, Music
TV Ad. Pictures B.O. Subscribers Digital Rev. Albums/Records
Concerts due to Corona Crisis
- 29 % - 82 % + 79 % + 29 % + 47 %
VS. Whereas, Untact related and
Pictures Digital Digital Revenue growth derived by
Music Concert Ancillary TV Commerce Commerce TVING Paid Subscriber, Media
Digital Revenue, Music
- 89 % + 111 % + 18 % + 37 %
Albums/Records, Pictures Ancillary,
(%, YoY) (%, YoY) TV and Digital Commerce

Business Focus

Reduce TV Content Correspondence and

Production Cost risk management on “Secure Content 〮 Commerce Biz-Capability”
2020 Strengthen economic status and
“Reinforce Profitability focused Management”
Financial Soundness market condition

21
2-1. 1Q20 Financial Highlights

High revenue growth in Commerce and Digital, Strengthening risk management

Revenue Operating Income Net Income

(Unit: Wbn) (Unit: Wbn) (Unit: Wbn)

1,005.5 1,014.1 87.4

860.2 153.8
909.9 66.0 79.0
62.9 93.1 810.8
52.1 67.8 84.3
104.1 39.8 60.3
54.2 65.8
409.9 49.0
357.6 335.8 30.9
324.1 375.9 42.7 39.7 30.2
(87.1)
380.0 426.4 426.9 445.1
340.8

1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20
Media Commerce Pictures Music 1Q19 2Q19 3Q19 4Q19 1Q20

[1Q20] Revenue W810.8bn (YoY -5.7%), OP W39.7bn (YoY -49.7%)

: Despite TV Ad. market slow‐down and COVID‐19 affecting Pictures·Music, Commerce and Digital growth defended market condition and revenue level
: Reduced profitability due to decreased TV Ad. and Box Office revenue, stable profit from Commerce and improvement in BEP profitability of Music

[2Q20] Content Production Cost Reduction and Expansion of Digital Business

: Fortify profitability through reduction of TV content production cost and expense control, risk management and earnings contribution from Commerce
: Reinforce competitiveness through planning and production capability, Strengthening Content and Commerce digital business strategy

22

2-2. Media – Financial Results

Despite sluggish TV Ad. market, strengthened the core by Digital Acceleration

(Unit: Wbn) (Unit: Wbn) Major Shows

426.4 426.9 445.1
380.0 <Crash Landing on You>
340.8 107.2 Dec 14th ~ Feb 16th (16 eps)
201.5 229.4 91.5 Highest rating: 21.2%
227.9 88.2 85.9 82.7
187.2
184.2 92.6
52.7 61.4 84.8 83.2 <Hospital Playlist>
53.0 52.5
57.8 69.6 Mar 12th ~ (12 eps)
139.8 172.3 146.5 154.4 58.0 Highest rating: 12.1%
98.8
4% 9% 4% 1% 1%
<The Cursed>
1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 Feb 10th ~ Mar 17th (12 eps)
Highest rating: 6.7%
Ads Subscription Others OPM Content Sales Premium Ad.

[1Q20] Revenue W340.8bn (YoY -10.3%), Operating Profit W3.9bn (YoY -71.7%)
: Due to TV Ad. market slump driven by COVID‐19 and seasonality, execution of TV Ad. decreased → Contractionof TV Ad. Revenue (YoY ‐29.3%)
: Major YouTube channel subscribers (QoQ +125.6%) and TVING paid subscribers (YoY +78.5%) → High growth of Digital revenue (YoY +29.0%)

[2Q20] Restore content power via anchor IP and Enhance TV  Digital Ad. Mix based on audience competitiveness
: Fortify content <Three Meals a Day>, <O My Baby>,and <Voice of Korea 2020>, Expand Ch. power through rebranding of Mnet  OCN
: Diversify Ad. solution via TV  digital integrated packages → Offer unique Ad. mix through DMP‐based integrated Ad. performance analysis

23
2-3. Commerce – Financial Results

Expand channel competitiveness and strengthen profitability upon PB

Product Portfolio
409.9 375.9
357.6 1,036.8 1,018.3 1,015.6 [Profitable Products]
324.1 335.8 52.3 974.2 986.1
36.4 30.1 32.9 26.2 0.8
56.1 20.1 34.2 Others
100%
4.6
51.9
55.1 90% 7.8 <A+G>
161.7 477.4
167.4 451.8 423.8 470.2 Interior 80% 15.1
134.9 479.0
124.5
122.6 <Celebshop>
70%

Fashion 60%
/ Jewelry 17.0

529.3 Hair / Cosmetics

50%

146.4 166.6 159.4 195.9 533.6 530.2 519.2 < Karl Lagerfeld >
172.1 472.9
40%
31.3
Appliances
30%

20%
Food / houseware
<Vera Wang>
13% 10% 9% 10% 10% 10% 23.4
1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 Apparel
<Odense>
0%

TV Digital Others OPM TV Digital Others 1Q20

[1Q20] Revenue W375.9bn (YoY +16.0%), Operating Profit W37.9bn (YoY -9.8%)
: Revenue hiked due to increased demand for foodhousewareappliances and continued profit growth considering one‐time profit on 1Q19
: Higher PB’s GMV(YoY +55.8%) and its portion(13.3%, YoY +5.2%p), such as <A+G>  <CelebShop>  <Vera Wang>  <Odense>

[2Q20] Meet the demand for both seasonality and Untact consumption, Aim for increasing profitability
: Reinforce product line‐up centered on nutritional supplements  toys/games, extend PB fashion and home appliances line‐up for summer season
: Fortify T‐commerce product portfolio, strengthen Mobile channel competitiveness by eTV  Video Commerce etc.

24

2-4. Pictures – Financial Results

Weak Box Office, while Ancillary Revenue increased with COVID-19 Situation

(Unit: Wbn) (Unit: Wbn) Major Movies

35%
104.1
93.1
17.0
84.3 24% <The Closet>
4.0
7.2 67.8 9.7 Release date : Feb. 5th
3.8 40.0 21%
12.0 54.2 B.O. W11.0bn
0.5 14.3 17%
13.7 6.1 14% Attendance: 1.27mn
13.6 19.9
75.9
5.4 19.4
56.4
41.5 33.4 15.2 14.6
13.8
11.2
18% 15% 19% (1%) 9.3
(4%)
3.7
1Q19 2Q19 3Q19 4Q19 1Q20
1Q19 2Q19 3Q19 4Q19 1Q20
Theater Ancillary Musical
Others OPM Moviegoers Distribution M/S

[1Q20] Revenue W452bn (YoY -47.9%), Operating Loss W2.0bn (CR)

: Decreased B.O. revenue(YoY ‐81.9%) and operating loss due to weak B.O. from <Closet> and last year’s high‐base earnings
: Strong ancillary revenue(YoY +111.0%) from <Ashfall>, <Parasite> and continued contribution from <Parasite> to global revenue

[2Q20] Strategical correspondence to domestic market condition, Continue to plan ∙ develop global projects
: <Parasite> black and white version of the award‐winning movie
: Expansion of global project from B.O. hit IP’s such as <Extreme Job>, <Exit> in US, China, Turkey, etc.

25
2-5. Music – Financial Results

Defended market condition thanks to In-house artist albums∙records and OST revenue

(Unit: Wbn) (Unit: Wbn) Major Content

153.8
<IZ*ONE> BLOOM*IZ
Released on Feb. 17th
Total sales : 0.46mn
111.1
125.7
62.9 66.0
52.1 <Kim Jae Hwan> Good bye
19.6 28.5 39.8 Released on Feb. 2nd
30.5 8.1 20.4 16.3 14.7
28.1
43.3 37.5 31.7 2.2
21.6

9% 3% (2%) (4%) (0%) 1Q19 2Q19 3Q19 4Q19 1Q20 <JO1> PROTOSTAR
1Q19 2Q19 3Q19 4Q19 1Q20 Released on Mar. 4th
Total sales : 0.36mn
Albums/records Others OPM Concert revenue

[1Q20] Revenue W39.8bn (YoY -23.5%), Operating Loss W0.02bn (TR)

: Despite delay and cancellation of major concerts, defended market condition by high growth of albums· records revenue(YoY +46.8%)
: <IZ*ONE> and <Crash Landing on You> OST led the revenue, and successful debut of <JO1> in Japan started to contribute to sales and profit

[2Q19] Expand global artists and Reinforce albums ∙records revenue

: Launch in‐house artist by programming <Belift Lab> and aim for profit contribution via local performance of <JO1>
: Expand albums· records revenue through collaboration with media division including <Good Girl >,<Voice of Korea 2020>, and <Road to Kingdom>

26
 Financial Summary

28

Appendix 1-1. Balance Sheet Summary

(Unit: Wbn) 4Q19 1Q20 QoQ (%)

Total Assets 5,435 5,662 4.2

Current Assets 1,676 1,673 (0.2)
Cash and Cash Equivalents 270 405 50.0
Other Current Financial Assets 1,406 1,268 (9.8)
Non‐Current Assets 3,759 3,989 6.1
Tangible Assets 948 966 1.9
Intangible Assets 1,038 1,122 8.1
Total Liabilities 2,283 2,485 8.9
Current Liabilities 1,661 1,864 12.3
Non‐Current Liabilities 622 621 (0.2)
Shareholders' Equity 3,152 3,176 0.8
Equity capital 212 212 0.0
Retained Earnings 1,146 1,145 (0.1)
Other Reserves 1,589 1,597 0.5

Key financial ratios

(Unit: %) 4Q19 1Q20 QoQ (%)

Current Ratio (%) 100.9 89.7 ‐11.2%p

Net Debt Ratio (%) 11.0 17.9 6.9%p
Cash Ratio (%) 22.2 27.5 5.3%p
29
Appendix 1-2. Income Statement Summary

(Unit: Wbn) 1Q19 4Q19 1Q20 YoY (%) QoQ (%)

Sales Revenue 860 1,014 811 (5.7) (20.1)

Media 380 445 341 (10.3) (23.4)

Commerce 324 410 376 16.0 (8.3)

Pictures 104 93 54 (47.9) (41.8)

Music 52 66 40 (23.5) (39.7)

OPEX 781 971 771 (1.3) (20.6)

COGS 503 643 473 (6.0) (26.4)

SG&A 278 329 298 7.2 (9.4)

Operating Profit 79 43 40 (49.7) (6.9)

Non‐Operating PL (2) (73) (1) CR CR

Financial PL (3) (11) 4 TB TB

Equity method G/L 6 4 12 86.9 164.5

Others (6) (67) (16) CR CR

Pre‐tax profit 77 (31) 39 (49.3) TB

Tax Expenses 26 11 9 (66.4) (21.9)

Ongoing Operating Income 51 (42) 30 (40.4) TB

Discontinued Operating Income (2) (45) 0 (100.0) (100.0)

Net profit 49 (87) 30 (38.4) TB

30
 Appendix

32

Media Industry Outlook

Top-line Growth through Digital New Biz. in Jumping Market

Positive Growth for Digital Media – Extend and Expand Content Business based on Long-tail

: 2018 domestic ad. market $11bn ‐ digital ad. to grow to 38% of total ad.

: 2018(E) video streaming market $17bn ‐ 47% from mobile ad., driving growth

: Digital content production system + new biz. model such as PIP and MCN → Secure growth in growing domestic/overseas market

Domestic Ad. Mkt., Positive Outlook for Digital Ad. Video Streaming Mkt. in China, Mobile Ad. Driving Growth
($ bn) ($ bn)
12 25
Mobile Video Ad
20 Online Video Ad
9 Digital Others
TV 15
6
Printing
10
Others
3
5

0 0
2001 2006 2011 2016 2012 2013 2014 2015 2016 2017 2018E 2019E
source: KOBACO, CJ ENM source: China Internet Watch, iResearch, CJ ENM
33
Comparison of Digital Ad. Model

Revenue Diversification from Media-Mix

Traditional TV ad. Paid VOD Models Digital CPM ad. Digital CPV ad.

. UAP / 15 sec. . price per episode . cost per millennium . cost per view

16 W mn 1 W th 10 W th 10 won

+ X + X

10% viewership
ratings 10 mn views 1 ‘000
impressions 1 bn
views

Cost per household Gross Sales Cost per impression Gross Sales
10 won W10bn 10 won W10bn

($ bn) Domestic Digital Ad. Market

5 5year : Domestic digital ad. spending will reach $4.2bn in 2018
Cagr 10%
4
: emerging importance of digital media‐mix with
3
traditional media
2 : competitive edge with analysis system for measuring ad.
effectiveness
1

0 : increase digital media revenue with various media mix

2000 2004 2008 2012 2016
source: KOBACO, CJ ENM 34

Fortifying with In-house Studio (2016)

Studio Dragon, aiming for new growth in Asian Contents market

R&D

66% Immerse in local market Story

. Expand distribution
. Co-produced contents
4.99%
Production

100% 100% 100% The Spin-off of Drama subdivision, New entity for the Drama
: Acquisition of the well‐known production company
Culture Hwa & Dam → Develop high‐end dramas
KPJ
Depot Pictures
Launch of a major studio to lead the content market
Culture Depot : 2013 <My Love from the Star>, <来自星星的你> : Expertise in storytelling, diversified genre contents,
: 2016 <The Legend of the Blue Sea>, <蓝色海洋的传说>
Introducing a cinematic quality to TV storytelling
Hwa & Dam Pictures : 2016 <Descendants of the Sun>, <太阳的后裔>
: 2016 <Goblin>, <鬼怪>
Growing into a global production company
KPJ : 2003 <Dae Jang Geum>, <大长今>
: 2011 <Deep Rooted Tree>, <树大根深> : Local‐partnership, co‐produced contents
35
 Rising Drama Production Competency

Paving the way to become “Content Powerhouse”

Quality drama production to enlarge content library going forward

: Viewership rating of dramas constantly improving – from recording low‐single digit to achieving record‐high rating

: Growing recognition from viewers leading to increasing ads (TV & digital) and stronger channel branding

: Expect to leverage massive original content library to maximize IP utilization in the long run

Viewership Rating of Major Fri/Sat Dramas UAP of Major Fri/Sat Dramas

25% Reply 1988 (Wmn) 20.7

Goblin
2016 2015
Mr. Sunshine
20%
2018 13.8

10.4
15%
The Incomplete
10% 2014 3.5
1.7

5% Gabdong:
The Serial Killer
2014 2014 2015 2016 2018
2014 Gabdong: The Incomplete Reply 1988 Guardian Mr. Sunshine
0% The Serial Killer
Ep.01 Ep.03 Ep.05 Ep.07 Ep.09 Ep.11 Ep.13 Ep.15 Ep.17 Ep.19 Ep.21 Ep.23

Source: Nielson Korea, CJ ENM Source: CJ ENM

36

GAMES STRUCTURE after JV (2014)

Partnership Accelerates Move into the Global Market

 Partnership in New Corp.

Advisor : Integration of Game Biz. (Netmarble & CJ Games)
Jun Hyuk, Bang : Collaborate with Tencent for higher synergies
and stronger publishing
35% 36% 28%
 Equity Investment from Tencent
: US $500mn with 28% stake
: As a fully‐loaded Strategic Investor rather than FI
CJ Games
 Removal of Regulatory Barrier
Netmarble Games
: Restructuring to facilitate M&A
(Developing studios are great‐grandsons of
Subsidiary Studios
the holding company. Partial acquisition is
banned by FTC in current conditions)

Netmarble Netmarble Netmarble Netmarble Overseas

N2 Nexus Monster Npark branch

* Current stakes after IPO (May 12, 2017):

Equipped to Become a Global Player
Mr. Bang 24.4%, CJ ENM 22.0%, Tencent 17.7%, Ncsoft 6.9%
(Ncsoft initially held a stake of 9.8% through a capital increase in Feb 2015)
37
 The OTT Market

Global OTT Market Projection Domestic OTT Market Projection

($ bn) ($ mn)
80 Europe 800
North America 68
Asia Pacific
60 55 600
Other Regions 48

39
40 400
30
23
20 18 200
CAGR +24.7%
0 0
2014 2015 2016 2017 2018E 2019E 2020E 2012 2014 2016 2018E 2020E
Source : Strategy Analysis Source : Korea Communications Commission

Service positioning of platforms Service positioning of platforms

Subscription C
Business Model Type of Contents Platform
Netflix

A Subscription RMC tving

A
tving Ready B Ads UCC CH DIA
DIA TV
Creator Ideal
Position Made
Content
B Content
C Subscription RMC Netflix
CH DIA Kakao TV

D E D Ads UCC Youtube

YouTube Youku Naver TV

Tudou
E Ads UCC + RMC Youku Tudou
F2P w/ Ads
38
Source : CJ ENM Source : CJ ENM

Music
Drama, Film

Commerce

Musical, Live

Media channel

Any Content, Any Commerce

Content
Theme park

Digital platform

Animation, Toy

Data solution VR, Voice UX

39
Main Line-ups for 2Q20

Media Pictures

[Scripted Format]
[Pictures]
<Hi Bye, mama!> (Feb 22nd ~ Apr 19th) : Sat/Sun Drama on tvN
<Parasite – black & white edition>
<Hospital Playlist> (Mar 12th ~ May 28th) : Thu Drama on tvN (Released on Apr 29th)

<Rugal> (Mar 28th ~ May 17th) : Mon/Tue Drama on OCN [Musical]

<When my love blooms> (Apr 25th ~ Jun 14th) : Sat/Sun Drama on tvN <42nd Street> (Jun 20th ~ Aug 23rd)
<Oh My Baby> (May 13th ~ Jul 2nd) : Sat/Sun Drama on tvN

<Team Bulldog : Off‐duty investigation> (May 23rd ~ Jun 28th)

: Mon/Tue Drama on OCN
Music
<My unfamiliar family> (Jun 1st ~ Jul 21st) : Mon/Tue Drama on tvN
[Non-scripted Format] [Albums/Records]
<Mapo hipster> (Feb 28th ~ May 8th) : Variety show on tvN <Reason For Being : 仁> (Apr 1st ) : TOO

<Road to Kingdom> (Apr 30th ~ Jun 18th) : Variety show on Mnet <1719> (Apr 23rd ) : HA:TFELT
<Three meals a day : Fishing Village 5> (May 1st ~ Jul 10th) <Nineteen> (May 7th ) : Natty
: Variety show on tvN

<ON & OFF> (May 2nd ~ ) : Variety show on tvN

OST : <Hospital Playlist>, <The king : Eternal Monarch >,
<When my love blooms>
<Body talk> (May 11th ~ ) : Variety show on tvN [Concert]
<Good Girl> (May 14th ~ Jul 2nd) : Variety show on Mnet <Refection of you in your smile> (Jun 13th ~ Aug 29th)
<Voice of Korea 2020> (May 29th ~ Jul 10th ) : Variety show on Mnet : Shin Seung Hun

40