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Nov. 2020

AfreecaTV

Investor Relations

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Disclaimer

This presentation material has been prepared solely for informational purposes only to enhance investors’

understanding. This is written based on the objective facts as much as possible. However, forward-looking

statements such as company’s plan, estimates, and forecasts at present time are subject to certain risks and

uncertainties that could cause actual results to differ. No reliance should be placed on the accuracy and

completeness of the information presented or contained in this presentation.

The information contained in this document should not be utilized in regards to investors’ investment results.

The company hereby expressly disclaims any and all liability for any loss or damage resulting from the

investors’ reliance on the information contained herein.

Therefore, this material cannot be used for any legal purposes in regard to investor’s investment results. Any

part of this document cannot be evidence in terms of investment decisions.

Anybody Can Freely Cast !

1. Business Area

2. Service

3. Content

4. Key Index

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TV ‘Afreeca Colosseum’

• National wide - KT IPTV, SK Btv, LG U+

• Regional cable - D‘live

BJ created content Original content Podcast

‘PodFreeca’- ‘eSports League’ASL, GSL, LCK, APL, AHL, PCS, Overwatch(Korea contenders)

Content

Expansion

1. Business Area

- variety show- web drama series

• Off-line studio for BJs

• eSports stadium

• 18 branches in Korea

Off-Line

‘Open Studio’

Content diversification: BJ created content, original content, and ‘PodFreeca’.

Platform expansion: online to offline and TV platform.

Variety

Gaming

Sports

Mokbang

Pet

Music

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2. Service

Social/Live/Multi-media platform on which anyone can freely broadcast and watch/participate

CommunityConnectionCommunication

Content

Gaming, Visual radio, Mokbang,

Hobbies, Educational, Beauty etc.

Olympics, Word Cup, MLB, EPL etc.

Secure broadcasting right for the popular events.

Originally planned & produced by AfreecaTV.

eSports League, Talent shows, etc.

BJ created content Original contentProfessionally generated content

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Gaming Variety & Talk show Sports Mokbang

3. Content - BJ Created Content

Educational Knowledge sharing Experts – legal, financial Current Events

Hobby - Fishing Beauty/Fashion VR – Magic취미방송Hobby - clay

Category expansion

Diversifying content through alliances

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3. Content – Original Content

Turnkey solution: produce/operate/broadcast original eSports leagues

Offline stadium and professional eSports team to strengthen AfreecaTV’s eSports ecosystem

[ AfreecaTV eSports leagues ]

[ eSports professional team ]

• ‘Afreeca Freecs’ - LOL / PUBG• ‘Open studio’

Utilize 18 PC-café as eSport stadium

[ eSports stadium ]

• FreecUp studio

eSports

• The Colosseum Stadium

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Collaborate on production of unique original content with BJs

Broadcast original content on both AfreecaTV platform and TV channel

[ Entertainment – Dance, Quiz ]

[ Sports ][ Music ]

3. Content – Original Content

[ Education –History, Law, Language ]

[ Hobby – Go, Omok, Billiards, Fishing ]

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Channeling service - Ad Balloon

Strengthening the eco-system by diversifying contents and securing new monetization for streamers

Providing varied purchasing channels through channeling service and platform infrastructure

Case1) BJ Yuambosung with Hyundai Mall [VOD] Case2) BJ Kim Min Kyo [VOD]

Platform infra - AfreecaTV Shop

Transferring to purchase page via ‘Ad Balloon’ link in live streaming Online sales channels utilizing in-house platform ‘AfreecaTV shop’

3. Contents – Live Commerce

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Gaming

(52%)

Variety & Talk Show

(32%)

Sports

(5%)

Others

(10%)

Best+Partner BJ 2,014

[ Gender ] [ Age ]

4. Key Index

Content category by traffic (’20.Q3)

BJ composition

Active BJ 17,118

User demographics

Best/Partner BJ star balloon sales contribution

≒ 47.5%(’20.Q3) Male(82%)

(Login Base)

Female(18%)

(Login Base)20s

(43%)30s

(28%)

40s(12%)

Others(3%) 10s

(8%)

50s(6%)

Business Model

1. Platform Service

2. Advertisement

3. Multi-platform

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Real time communication

Stickers

Quick view

Subscription

Star balloon

Gifting star balloon & other functional items

OGQ(emoticon)

User clip

Ad balloon

[Users] [BJ]

1. Platform Service – Gift Economy & Functional Items

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1. Platform Service – Gift Economy Trend

Platform revenue : 41.5 billion won (+6.2% QoQ, +22.7% YoY)

Increase of ARPPU and Paying User backed by user engagement expansion

Platform service(unit : 100 million won)

152 155 161 173

641

185 194 202 212

792

232 239 256 275

1,003

296 330 338 321

1,285

345 391

415

Q1 '16 Q2 '16 Q3 '16 Q4 '16 FY2016 Q1 '17 Q2 '17 Q3 '17 Q4 '17 FY2017 Q1 '18 Q2 '18 Q3 '18 Q4 '18 FY2018 Q1 '19 Q2 '19 Q3 '19 Q4 '19 FY2019 Q1 '20 Q2 '20 Q3 '20

CAGR(’16~’19)+26%

’20.Q2YoY +22.7% ↑QoQ +6.2% ↑

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2. Advertisement – Platform Advertising

Targeted advertising

Pre-roll / Mid-roll / Post-roll

Banner & Sliding AD Balloon

Engaging form of advertisement which users can gift to BJ

Pre-roll Ads Mid-roll Ads Post-roll Ads

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Continuing expansion of new inventory for Mobile application and PC page

Synergy is expected with new open advertisement platform scheduled to open on 2021

Mobile Banner PC Banner

2. Advertisement – New Inventory for Platform Advertising

[Main Banner] [Chatting Space Banner][Keyword

Advertisement][Mid-Banner]

[Chatting Space Banner]

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Game leagues Influential BJ game streams

Extend lifecycle of game by running/broadcasting game leagues/contests.

Case1) ‘FIFA Online4 High school FIFA’ amateur league [VOD] Case2) Dungeon & Fighter BJ tournament [VOD]

2. Advertisement – Branded Content Advertising

Case ① Gaming

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Brand live show

KOL advertising leveraging AfreecaTV’s strong community

Product placement opportunities

Real time user feedback

Case1)‘Rexton’ sports fishing competition [VOD]

Users give a real-time feedback through chat.

Case2) Lotte ‘Pappico’ reaction contest Season2 [VOD]

BJ, User produce their own VOD and participate in contest

2. Advertisement – Branded Content Advertising

Case ② Non-Game

Brand VOD – BJ/User participation

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2. Advertisement – Revenue Trend

Advertisement revenue : 7.0 billion won (+63.5% QoQ / -12.4% YoY)

Recovered thanks to execution of pent-up advertising demand and high-season effect

2840 42 39

148

29 2941 38

137

37 3747

71

193

6258

80 87

288

42 43

70

Q1'16 Q2'16 Q3'16 Q4'16 FY

2016

Q1'17 Q2'17 Q3'17 Q4'17 FY

2017

Q1'18 Q2'18 Q3'18 Q4'18 FY

2018

Q1'19 Q2'19 Q3'19 Q4'19 FY

2019

Q1'20 Q2'20 Q3'20

OthersContents AdvertisementPlatform Advertisement

(Unit: 100 million won)

CAGR(’16~’19)+25%

’20.Q3YoY -12.4% ↓

QoQ +63.5% ↑

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32 166 270482

949 684920

1,2991,409

4,312

1,785 1,844 1,9551,977

7,561

1,881

1,044 9082

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4 4

5

8

9

12 12 12

14 14

17 17

18 18 18

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

'17 1Q '17 2Q '17 3Q '17 4QFY 2017 '18 1Q '18 2Q '18 3Q '18 4QFY 2018 '19 1Q '19 2Q '19 3Q '19 4QFY 2019 '20 1Q '20.Q2 '20.Q3

Revenue No of Branches

(Unit : Revenue: million won/ No of branches – each)

3. Multi-platform- Open Studio

18 nation wide PC-café (’20.Q3)

Operate PC-café and eSports stadium

‘20.Q3 results were affected by reduced operating hours due to COVID-19

’20.Q3YoY -53.6% ↓QoQ -13.0% ↓

'17 Q1 Busan/Hongdae branch open

'17 3Q Daegu branch open

'17 4Q Gwangju branch open

'18 Q1 Jamsil branch open

'18 2Q Daejun/Wonju/Jeonju branch open

'18 3Q Suwon branch open

'18 4Q Ulsan/Cheonan branch open

’19 2Q 2nd Gwangju branch/Jeju branch open

‘19 4Q Goyang/Incheon/Suwon branch open

’20 Q1 Seoul Lotter World branch open

[Total 18 branches]

Business Performance

1. Revenue & Operating Income

2. Cost Breakdown

3. Summary of Consolidated Financial Statements

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1. Revenue & Operating Income

Quarterly Earnings Annual Earnings

Robust Platform revenue and recovery of Advertisement driven the earning increase

183198

203214215

225248

258279

290

324

373381

416

448434

415

453

502

36

(19.8%)

37

(19.1%)

35

(17.4%)

51

(23.7%)47

(21.9%)43

(19%)

49

(19.7%) 44

(17.2%)

60

(21.6%)

61

(21.2%)

74

(22.9%)

75

(22.9%)

91

(23.6%)

96

(23.0%)

108

(24.0%)

73

(16.8%)

81

(19.5%)

107

(23.7%)

139

(27.7%)

Platform

Advertisement

Multi-Platform

Others

Operating Income(% of sales)

(Unit: 100 million won)

798

946

1,266

1,67920.1%

19.4%

21.4%21.9%

FY2016 FY2017 FY2018 FY2019

(Unit: 100 million won)

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* (%) : /Operating revenue

(Unit: million won)

2. Cost Breakdown

2020.3Q 2020.2QQoQ

2019.3QYoY

% % %

Operating revenue 50,226 100% 45,272 100% 11% 44,815 100% 12%

Operating expense 36,318 72% 34,552 76% 5% 34,050 76% 7%

Employment costs 11,129 22% 10,890 24% 2% 9,944 22% 12%

Commission (copyright & others)

3,682 7% 3,621 8% 2% 4,422 10% -17%

Commission (Advertising) 2,252 4% 1,239 3% 82% 2,691 6% -16%

Paying charges 4,807 10% 4,312 10% 11% 4,227 9% 14%

Dedicated internet circuit expense

2,978 6% 3,206 7% -7% 2,333 5% 28%

BJ support expense 1,195 2% 1,869 4% -36% 924 2% 29%

Contents production costs 2,352 5% 1,658 4% 42% 2,828 6% -17%

Depreciation 3,796 8% 3,657 8% 4% 2,853 6% 33%

Rent 173 0% 144 0% 20% 53 0% 227%

Advertising expense 312 1% 282 1% 10% 167 0% 87%

Event expense 239 0% 59 0% 304% 300 1% -20%

Others 3,404 7% 3,614 8% -6% 3,310 7% 3%

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3. Summary of Consolidated Financial Statement

(Unit: million won)

2020.3Q 2020.2Q 2019.3Q 2019

Total assets 258,282 245,640 215,114 228,550

Total liabilities 121,115 118,726 98,699 106,761

Total shareholders’ equity 137,168 126,915 116,415 121,789

Capital stock 5,747 5,747 5,747 5,747

Operating revenue 50,226 45,272 44,815 167,869

Operating profit 13,908 10,719 10,765 36,726

Income/losses before income taxes 13,803 11,914 11,797 41,938

Net profit 10,966 10,239 9,073 34,160

www.afreecatv.comGyeonggi-Do, Seongnam-Si, Bundang-Gu, Sampyeong-Dong, 625, Pangyo Seven Venture Valley 1-2

ContactEllen Jiyeon Kim, Head of IREmail: jiyeonkim@afreecatv.comTel: +82-031-622-8247

Jeffrey Lee, IREmail: jeffreylee@afreecatv.comTel: +82-031-622-6849

Isla Kyunghee Jun, IREmail: isla@afreecatv.comTel: +82-031-622-8225

David Heonhee Park, IREmail: david@afreecatv.comTel: +82-031-622-8078