· an animation and live action film a connecting series is new to Korean film industry. As is...

www.its-new.co.kr

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Global Contents Leader NEW

contents

Prologue04 CEO Message

It's new08 Rise of NEW

10 NEW in the World

12 Management Performances

new culture16 Accepting Challenges & Thinking Outside of the Box

18 Choice and Focus & Risk Management

new contents22 Movie Episodes

26 Contents Panda

28 TV Drama

30 MuSiC & NEW

32 SPORTS & NEW

34 Cinema

new Market38 Korean Market Status & Growth Trends

40 Chinese Market & Potentials

42 HuACE & NEW

aPPendIx46 Subsidiaries' Status

48 Financial information

50 NEW TOP 10 Movies

global contentsleader

sMart and strong coMPany

8 years ago, 5 passionate members started a company.

it was the first step of making a dream come true: a dream to build a great

media group through an organization with a belief in the power of

content and flexible, creative culture.

NEW's creative members have been making new paths in media

industry through quick decision-making and flexible work environment.

These efforts have resulted in new creative business models in every business

segment including movie, TV drama, music, performance art and so on.

We are preparing to enter cinema, sports, and channel platform businesses as well.

Our efforts to change and develop were the reasons we became a major distributor

in such a short time. We are growing fast and changing the industry: listed on KOSDAQ,

largest investment attraction from China, first JV with Chinese company in the industry

and change of contents distribution process model through our first TV

drama <Descendants of the Sun>.

i am more excited to see what the company will become in few years.

We promise to be a ground-breaking total media contents distribution group,

communicating with public and bringing positive effect to the society

by providing quality contents.

Thank You

Global Contents Leader, NEW

Woo-taek Kim, CEO,Next Entertainment World(NEW)

Education: Seoul National university(BA)

Emory university(MBA)

Professional Experience: 1996 Orion Group

1999 Executive Director, Megabox

2003 CEO, Showbox

2011~ CEO, Next Entertainment World

04 _ 05

CEO Message

1.It's new

Rise of NEW 08

NEW in the World 10

Management Performances 12

It's new“NEW, aspiring for the Next Entertainment World”

Starting out as a film distributor, NEW set a new record with the highest return on investment in the industry.

As NEW continues to grow, it endeavors to provide its audience with better contents.

The essence and style only NEW could bring into their tasteful movies have

already been acknowledged by the audience.

Embracing wide ranges of entertainment contents, NEXT ENTERTAiNMENT WORLD will

push its boundaries. Please look forward to NEW as it prepares to expand worldwide.

08 _ 09

1. It's new


2008 20092010

2011

2012

2013

2015

2014

2008 - 20122008.08 Foundation of Next Entertainment World

2008.12 <Twilight> breaks through 1 million admissions

2012.01 Foundation of MuSiC & NEW (Music Business)

2012.09 <Pieta> wins ‘Golden Lion’ at 69th ‘Venice Film Festival’

20132013.01 KRW 10 Billion investment Attraction (4 VCs with KiBO)

2013.01 <Miracle in Cell No.7> breaks through 10 million admissions

2013.08 Foundation of Contents Panda (Ancillary rights and distribution business)

2013.12 Lists as TOP 4 film investment & distribution company in the nation (Ranked as NO.1 Korean film investment & distribution company in 2013)

2016 2016.01 Foundation of HuACE & NEW (JV with Huace Media)

2016.02 Broadcast of <Descendants of the Sun> in both Korea and China (KBS, iQiyi)

2016.03 Launch Cinema Business

2014 - 20152014.01 <The Attorney> breaks through 10 million admissions

2014.03 NEW CEO Woo-taek Kim wins ‘Man of the Year’ at the 5th ‘Korean Film of the Year Awards’

2014.10 KRW 53.6 Billion investment Attraction (Huace Media, China)

2014.12 Listed on KOSDAQ

2016

THE INDUSTRY'S toP Market sHare, ONLY HALF A DECADE AFTER ITS FOUNDATION 2013 NO.1

Box Office Market Share

29.5%(Korean Films)

Rise of NEWNEW in the World

Management Performances

woo-taek kim’s new

makes a surviving model for film

investment and distribution

Next Entertainment World has become a dark-horse of

domestic film investment and distribution industry as it

came up with two 10 million audience movies last year.

CEO Wook-Taek Kim said that “(he) will raise investment

fund for Korean movies by getting listed on KOSDAQ”

and “will make Next Entertainment World a global total

content media distribution company”

business Post

new enters movie theater

business, becoming a total

entertainment company

An analysis that NEW is driving to become a total

entertainment company and is installing an engine

has come out.

“If NEW takes off with theater business, stable cash

flow and revenue source formation will become

possible through major sites” and “on going drama

production since last year, low budget film investment

and distribution (Contents Panda), and sports

content right distribution (SPORTS & NEW) all will

come together to form a diverse business portfolio,

expanding its revenue stream possible”

sisa Press

new, entering china…China’s Huace invests KRW 53.5 Bn. in NEWOn the 10th, NEW announced that NEW and China’s

Huace Media Group agreed to invest KRW 53.5 Bn. to

NEW. The contract was closed on the 7th of April. This

is the largest investment from a Chinese company to

Korea’s film industry in history.

“It is the first case in Korea’s film history to

launch a JV with Chinese contents company,

and be recorded as an exemplary first case of ‘co-

production agreement between South Korea

and China’ which was agreed between China’s

president Xi Jinping and South Korea’s president

Park Geun-hye this July".

My daily

10 _ 11

1. It's new


woo-taek kim, the CEO of NEW,

the hit production company of

<descendants of the sun>

“My role is to make an environment

where creativity is a priority”

“Thanks to my predecessor’s efforts, TV drama markets in international countries, such as

China or Japan, were more open (than movie markets)” and “if well planned, it seemed

that sale of rights and PPL could cover the production cost and make better profit than

movie” said Woo-taek Kim. Like he said, 32 countries, including uS, China, and uK, has

bought the rights to <Descendants of the Sun>. The profit from PPL alone is more than

uSD 3 Mn.(KRW 3.5 Bn.) and the whole production cost, which is about uSD 11 Mn.(KRW

13 Bn.), was covered well before it was even aired.

Woo-taek Kim, holding master’s degree in business, is an M&A professional from

Samsung C&T. it was On Media, a subsidiary of Orion group, that led him to film industry.

He became the CEO of SHOWBOX, the film investment and distribution company, and

while he was at SHOWBOX, he made movies such as <Taeguekgi>(2004) and <The

Host>(2006) hit movies. in 2008, he found NEW. in 2013, <Miracle in Cell No.7>(12.8

mn.), <Hide and Seek>(5.6 mn.), and <New World>(4.7 mn.) all made a huge success,

recording higher total admissions than CJ E&M, gaining the biggest market share in

that year. “investment is decided based on its content and through communication with

people” he said and added that “no matter what contents we look at, the standard will

remain the same”.

He described himself as “not a creative person” but “is good at making an environment

where creators can go 'all in' without worrying about anything else”.

dong-a daily

Korea’s film investment and distribution company NEW and China’s entertainment group Huace Media has teamed up to launch a JV, HuaCE & NEW. The importance of this project is that both companies will be cooperating from scenario selecting stage, not focusing on remaking existing films.

SBS CNBC

china’s Huace Media group andnew launch the first JV,Huace & new, in the industry.Movie “The Witch” will be co-producedin both Korean and Chinese version

'S STEp BECOMES new HIstory

Rise of NEW

NEW in the WorldManagement Performances

Profitable management sinceits foundation in 2008

Net Sales breaks KRW 100 Billion in 2013

Industry-leading workeffciency per capita

First to attract Chinese capitalin the industry nationwide

(Oct 2014, KRW 53.6 Billion)

Invest in Korea's content industry by participting in Cultural Contents Fund

(Funds' total committed capital : KRW 250 Billion)

12 _ 13

1. It's new


cagr

strong growtHExtraordinary Growth and Industry-Leading Efficiency

98

524

1,175

2009 2011 2013

Total Assets (KRW 100 M)

116

380

1,264

2009 2011 2013

Sales (KRW 100 M)

82%

300

1,017

3,736

2009 2011 2013

Admissions (10 K)

88% 86%

18.1

45.1

Sales per Capita (KRW 100 M)

1.9

6.8

Operating Income per Capita (KRW 100 M)

2011 2013 2011 2013

NEW

C Corp.

S Corp.

Rise of NEW

NEW in the World

Management Performances

Conference at NEW is Another Entertainment

Cafeteria, lobby, wherever we meet

becomes a conference room to discuss and

share NEW ideas

newculture

2.new culture

Accepting Challenges & 16Thinking Outside of the Box

Choice and Focus & 18Risk Management

16 _ 17

2. new culture

Animation and Live Action Film Rendezvous in

<Train to Busan><Train to Busan> has already drawn attention from the public, as it is a live action film

debut of Sang-ho Yeon, the director of award winning animations <The King of Pigs> and

<The Fake>.

<Train to Busan> is a disaster blockbuster movie centering on people fighting for their

lives on the train to Busan and <Seoul Station>, an animated film, is its prequel. No

animation director has tried to make a live action film before and an idea of making

an animation and live action film a connecting series is new to Korean film industry. As

<Seoul Station> is invited to international animation film festivals and <Train to Busan> is

invited to 'Midnight Screenings' section of 69th 'Festival de Cannes', NEW will be showing

the world’s film industry what NEW has prepared for them.

NEW’s Original Musical <December>Going beyond film making and distribution, NEW has been expanding itself to other media

fields. in 2013, NEW expanded its influence to show and performance market through

original musical <December>.

The musical, commemorating deceased Korean musician Gwang-seok Kim’s 50th birthday,

plays Kim’s hit songs and unpublished songs under a motif: the most beautiful love story in

memory. Director Jin Jang, known as “the storyteller of Choong-moo-ro”, the uSD 4 million

worth scale settings, and flawless storyline brought new wave to show industry. Moreover,

great performance by Korea’s leading musical actors such as Junsoo Kim, Gun-hyung Park

and others led the show to a big success. Since the opening day, <December> received

acclamation from thousands of audiences after every show and brought sensation to the

industry.

Participating as a producer of <December>, NEW’s CEO Woo-taek Kim expressed his

attachment to the musical; “i always wanted to make a touching musical that best arouses

the nostalgia Gwang-seok Kim’s music deliver; a musical that will linger in audiences’

memory for a long time,: <December> started in Seoul and traveled down to Busan and

Daegu. Thanks to the audience the musical set a new record in original musical history.


First TV Drama Becomes a Global Sensation

<Descendants of the Sun><Descendants of the Sun>, a product of NEWs know-how in movie investment,

distribution, Contents Panda’s sales network, and MuSiC & NEW's know-hows in music

distribution, all together, succeeded in making a new case in Korean drama production,

giving rights to plan, sell, and distribute to a production company, opposed to what used

to be the roles of TV broadcasting company.

The drama received spotlight from planning stage with issues such as ‘implementing

movie production procedure in TV drama’, ‘first to simultaneously broadcast in Korea

and China’, ‘star casting and staffing'. After being aired, it became a sensation surpassing

viewing rate of 30% on weekdays for the first time in 4 years since <Moon Embracing the

Sun>, and receiving record high viewing of almost 200 million views per episode on iQiyi.

With success of <Descendants of the Sun>, NEW will continue to challenge to produce

meaningful change in drama production.

A Film Made by the Nation <Northern Limit Line><Northern Limit Line> set a record as the most viewed movie among Korean films released

in first half of 2015. it took seven years for the film to see the light since it first started

planning. The film means a lot in a sense that it raised KRW 2 Billion through crowd funding

with the support of the whole nation. To return our thanks to everyone who participated

in film making we included names of 7,000 people regardless of their ages or jobs in the

ending credit. With a 12 minute-long ending credit to thank the whole nation, <Northern

Limit Line> will long last in Korean film history. <Northern Limit Line> truly is a film that

exemplifies a determination and discerning eyes of NEW.

Crowd funding: The practice of funding a project or venture by raising monetary

contributions from the public or large number of people. it is typically done via the internet.

sets FootstePsENLIGHTENING FOR OTHERS

ACCEPTING ChALLENGES

ThINKING OuTSIdE

OF ThE BOx

Accepting Challenges &Thinking Outside of the Box

Choice and Focus & Risk Management

oncentration

18 _ 19

2. new culture

risk Managementunlike other corporations, NEW does not propose an annual business plan, as operating under

already-set business plan may become a hindrance in making a successful film. NEW values making

quality films, which the audience can long love and remember. Considering the nature of film

industry, many worry about a film’s box offce performance; however, NEW has a stable revenue

structure based on distribution fee, effectively reducing possible business risks. As a result, NEW is

the only company in the industry running in black since its foundation in 2008.

if anyone asks, “risk management” has been one of the key factors for NEW’s success in the field.

NEW gives its best to produce exceptional films out of carefully

selected scenarios. Moreover, NEW has been operating in black since its

foundation in 2008, based on stable earnings structure with

distribution acting as a profit floor.


oncentration

EvERYONE'S OpINIONS MATTER IN

Accepting Challenges &Thinking Outside of the Box

Choice and Focus & Risk Management

3.new contents

Movie Episodes 22

Contents Panda 26

TV Drama 28

MuSiC & NEW 30

SPORTS & NEW 32

Cinema 34

Film, Music, Performance, drama, Sports, Cinema and Beyond

NEW embarks to pursue various genres.

With contents diversification and easy accessibility via platform expansion,

NEW with its “New Style” leads global entertainment industry.

newcontents

22 _ 23

3. new contents


My favorite scene in <New World> is the elevator scene. The scene was all precisely

choreographed in advance. However, once the actual shooting started it did not go

as smoothly as expected. Blood in the set made everything very slippery, and everyone’s

movement became messy. We were able to put together a general choreograph

together, but it was a struggle to pay attention to smaller details. Nonetheless, it was

amazing to see the scene through the monitor. After all, the scene became one of

the best scenes in the film.

- Actor Jung-min Hwang during his press interview -

To be honest, we were little hesitant when the production company brought the proposal.

Not only was the director a rookie, but also the genre was a thriller, which is not the most popular genre

among the audience. However, after examining the script, our minds changed immediately.

Everyone in NEW agreed upon the investment. <Hide and Seek> ended up becoming a

NO.1 Korean thriller of all time. Of course directing and performance of everyone involved were

stunning, but most of all, the film proved to us the significance of solid plotline.

- Film investment Team, NEW -

<New World> <Hide and Seek>

Movie EpisodesContents Panda

TV Drama

MuSiC & NEW

SPORTS & NEW

Cinema

24 _ 25

3. new contents


<Hello Ghost> <All About My Wife>

First film ever for NEW to proceed film investment & distribution, <Hello Ghost>

brought tears to the audience with its unexpected twist at the end. We were worried

about the spoiler, yet people, who attended the film preview made an official blog to

voluntarily monitor spoilers and prevent them from leaking. Thanks to the bloggers,

the film ended up very successful.

- Marketing Team, NEW -

it seems like films with sexual exposure drags a lot of attention, and my film is the right one

for this issue. My name is ‘Sung-ki Jang’, and ‘Sung-ki’ has a same pronunciation with genitals,

and the husband character’s conspiracy (same pronunciation with genital hair) is all over the movie.

- Actor, Seung-ryong Ryu during Production Briefing -

Even ‘Sung-ki’(genitals), and ‘Conspiracy’(genital hair) is all over the movie.

it will still be PG-15.

- Actor, Sun-gyoon Lee during Production Briefing -

Movie EpisodesContents Panda

TV Drama

MuSiC & NEW

SPORTS & NEW

Cinema

26 _ 27

IThe Last RideI

Founded in 2013, Contents Panda works with

‘ancillary rights distribution’ and ‘diversity

film distribution and investment’. To satisfy

increasing needs and diverse appetites of

audience, Contents Panda deals with multiple

platforms such as international market, iPTV,

and mobile. Contents Panda contributes to

the advancement of Korean film industry as

it continues to support art and experimental

films.

Contents Panda also launched its overseas sales

team to distribute Korean movie contents in

global markets and successfully sold ancillary

rights of TV drama <Descendants of the Sun>

to major international markets including China

and Japan.

IHong Kong FiLMARTI

INo TomorrowI


IHong Kong FiLMARTI

3. new contents Movie Episodes

Contents PandaTV Drama

MuSiC & NEW

SPORTS & NEW

Cinema

The hottest issue of 2016, NEW’s first drama <Descendants

of the Sun> is a case that expanded the boundaries of

the industry through use of NEW’s know-hows in movie

industry, network in China, and capabilities of its subsidiaries,

Contents Panda and MuSiC & NEW. The drama has changed

the traditional drama production process and will be

recorded as a meaningful case in history.

<Descendants of the Sun(太阳的后裔)>


3. new contents

28 _ 29

Through KBS in Korea and iQiyi in China, <Descendants of

the Sun> was broadcasted simultaneously in Korea and

China for the first time. it surpassed viewership of 30%,

exceeding the <My Love from the Star>'s record. Also, every

episode on iQiyi was watched almost 200 million times and

Weibo saw a historic record of 12.5 billion views.

<Descendants of the Sun> took a risk of producing 100%

before it was even aired, but due to NEW’s know-hows in

investing and distributing in diverse contents, including

movie, strong story line of Eun Sook Kim and Won Suk Kim,

and the star castings of Jung-ki Song and Hye Kyo Song, the

result was a huge success.

NEW has sold the rights to the drama to China at the

highest price any Korean drama has before its release.

Along with the profit from PPL, the production cost of

about uSD 1.1 Mn.(KRW 13.5 Bn.) was covered and BEP

was reached. The drama has been sold not only to Asian

countries such as Japan and Hong Kong, but also to other

30 countries including uSA, uK, France, italy, and Germany.

Above all, the fact that the production company played the

main role in planning, making sales and distributing OST

in production process holds a huge meaning. The industry

was used to broadcasting companies playing major roles

in production and outsourcing the drama to outside

production companies This is what makes the drama’s

success more meaningful.

Movie Episodes

Contents Panda

TV dramaMuSiC & NEW

SPORTS & NEW

Cinema

30 _ 31

3. new contents


MuSiC & NEW started to run its music production and management

business in 2012. Talented vocal artists such as M.C THE MAX, SWEET

SORROW, and KCM were recruited to maximize its musical ability.

At the same time, all planning/marketing, investment/production/

distribution, show business, management business, and A&R were

filled with the best in the field to increase capabilities of all division

and produce synergy among them to enhance artists' values and to

expand its influence to concert/performance business.

MuSiC & NEW will continue to invest in established/indie/new/potential artists and

diverse music genres. it will grow to become a matchless professional

music company that produces high-quality music contents through systematized

investment and distribution and broaden its influence to show business.

Also, MuSiC & NEW will strengthen its position as a global company by discovering

good international songs and introducing to domestic market.

Through partnerships with international labels, MuSiC & NEW

will provide new vision for music distribution service.

in fast changing music industry, MuSiC & NEW will continue to expand

centering on investment and distribution of music.

As the first step, the OST of <Descendants of the Sun> was invested and

distributed through MuSiC & NEW and the whole album was a big hit. Also,

exceptional for OST, they were all successfully exported to Japan,

China, Hong Kong, Thailand, Singapore, and Malaysia.

MuSiC & NEW will actively invest in show business and expand

its content portfolio. The first project was an original musical

<December>, which was planned, produced,

and invested by MuSiC & NEW. it set a record high profit

for an original musical. Another original musical 'Dorian Gray', a

musical that re-interprets Oscar Wilde’s ‘The picture of

Dorian Gray' is another work MuSiC & NEW has invested in

hopes to inspire the show business industry

through diverse subjects and new challenges.

Movie Episodes

Contents Panda

TV Drama

MuSIC & NEWSPORTS & NEW

Cinema

32 _ 33

SPORTS & NEW is

mainly focusing on sports

rights and marketing.

SPORTS & NEW is planning to

expand its business

through global sports events and

other sports-related business.

Lately due to the emergence of Cable TV, satellite broadcasting

and iPTV, demands for sports-related contents have increased

exponentially. Also, change in labor conditions such as five-day

workweek policy in Korea, has increased consumers’ needs for

sports contents. Satisfying the needs of the consumers, SPORTS &

NEW will offer diverse sports contents to please individuals’ varying

appetites.


3. new contents Movie Episodes

Contents Panda

TV Drama

MuSiC & NEW

SPORTS & NEWCinema

34 _ 35

3. new contents


CiNE STATiON Q is a new multiplex brand NEW proudly presents.

With the know-hows and experience the management has from launching

and developing the largest multiplex theater in Korea, Megabox, NEW will be

presenting a differentiated multiplex to the audience.

NEW will continue to acquire highly profitable sites and transform them into

cultural space where people are presented with happiness.

Movie Episodes

Contents Panda

TV Drama

MuSiC & NEW

SPORTS & NEW

Cinema

“gate to tHe MagIc”The logo is created to illustrate CiNE STATiON Q

as the red carpet leading to the new gate that

invites audience to the new world that NEW

has prepared for them

newMarket

4.new Market

Korean Market Status 38& Growth Trends

Chinese Market & Potentials 40

HuACE & NEW 42

in 2014, NEW set strategic partnership with Huace Media,

the NO.1 TV drama corporation in China to expand

its field beyond Korea, a heart of Asian entertainment industry.

Setting its footstep in its neighboring country,

NEW will flourish as a Global Contents Leader.

52.0%Admissions for Korean MoviesOut of Total Admissions

4.4xNumber of Admissions for Korean Film compared to Foreign Film

2008 2009 2010 2011 2012 2013 2014 2015 2008 2009 2010 2011 2012 2013 2014 2015

2008 2009 2010 2011 2012 2013 2014 2015

113 mil

110 k

380 Films

20.0%

151 mil

590 k

108 Films

635 mil

320 k

19.0%

217 mil

490 k

19.8% 2.1Trillion

19%

Number of Korean Films Released

Film Industry Sales Growth Trend-due to outstanding manpower andhigh quality productions

151 mil

1.2 Tril

217 mil

2.1Tril

52%

78%

4. new Market

38 _ 39


Continuous Sales Expansion in Ancillary Rights due to development of digital instruments

Korean Box Office(KRW Trillion)

2.11

1.201.221.33

1.44

1.711.88

2.03

2009 2010 2011 2012 2013 2014 20152008

232 Films

1,172 Films

2008 2009 2010 2011 2012 2013 2014 2015

2008 2009 2010 2011 2012 2013 2014 2015

KRW 2.1Trillion

growIng Industry 2015 KOREAN FILM INDUSTRY

Released Korean Films Total Admissions Total Sales Revenue (KRW)

Total Admissions Korean Movie Admissions Ancillary Rights Sales Ratio

Admissions per Foreign Film Admissions per Korean Film

Korean Film Market Share (Based on total admissions in 2015)

IPTV/ Digital Cable Market Share (Based on total additionalpublication sales 2015)

Korean Market Status & Growth Trends

Chinese Market & Potentials

HuACE & NEW

20132012201120102009 2014 2015

12.6

40 _ 41

4. new Market

31,627

13,118

2012

18,398

2013

24,317

2014

4,723

2009

6,256

2010

9,286

2011

4.3

12.7%10.0%

5.4%

2.0%0.9%

NA

CHN

uK

JPN

FRA

iND

KOR

71.8

101.9

20.4

20.0

17.4

16.4

16.4


2015

6.12

4.62

3.452.371.82

8.3

51.81%

45.57%

32.4%35.62%

30.22%33.91%

CHINA WILL HAvE tHe world's largest box oFFIce IN 2016

4.1

1.30.9

Growth Trend of Chinese Film Screen Numbers 2009 - 2015(Source : Ent Group Report)

Over 30% Increase in

Number of Chinese Admissions Every Year

Film admissions growth trend in China 2009 - 2015(Source : Ent Group Report)

Total Admissions Growth Rate

Global Box Office Revenue in 2015(uSD 100 Million)

Annual Movie Admissions per Capita,by Country(Source : 2015, LiG investment & Securities)

*NA includes uSA and Canada(Source : Screen Digest) KOR NA JPN CHN

8% of Korean movie admissions per capita equalsthat of total Chinese movie admissions per capita

World's biggest growth trend nationby 12.7% a year

Worldwide Film MarketAnnual Average Growth Prediction (Source : 2014, PWC)

CHN iND NA KOR JPN



HuACE & NEW

4. new Market

42 _ 43


281.84

2010

403.07

2011

720.91

2012

920.47

2013

1,916.07

2014

2,646.17

2015

HuACE & NEW

China-driven ProjectThe PhoneDirected by Chinese director

One Source Two Films-ProjectThe WitchSeparate versions to be produced in both KOR and CHN

Korea-driven ProjectThe Beauty Inside Directed by Korean director

⦁ Listed 13th in Forbes China's Top Publicly Traded Small Businesses for 2014 Listed in Forbes China's Top Publicly Traded Small Businesses for 4 consecutive years as of 2015

⦁No.1 TV drama production company in China⦁Wide ranges of Platform⦁Forerunner of Chinese media: drama, entertainment, film, etc.

⦁JV HuACE & NEW, founded in Jan. 2016⦁Starting from movie, business portfolio will expand to drama content⦁Remake of domestic content and production of new content through co-production⦁Continuous investment to pave its way to global markets including Hollywood and etc.

Revenue Growth Trend(uSD Million)

new to cHInaEstablishment of HuACE & NEW withHuace Film & TV. the largest TV drama production company in ChinaViewers Rating 18%, No.1 Market Share

Huace Film & TV

HuACE & NEW KOR·CHN Joint Projects



huACE & NEW

5.aPPendIx

Subsidiaries' Status 46

Financial information 48

NEW TOP 10 Movies 50

appendixThis section includes information regarding

NEW’s subsidiaries and financial information as of 2016.

Also, NEW’s TOP 10 movies since the corporation’s foundation in 2008 are included

Next Entertainment World

new busIness

Since its foundation in 2008, NEW has

been mainly focusing on film investment

and distribution. NEW started its music

business in January 2012. in the following

year, NEW established Contents Panda, an

ancillary rights distribution and diversity

film business. Later in the year, NEW

initiated its performance business with

original musical <December>.

in 2015, NEW started sports marketing

and management business by launching

SPORTS & NEW. With its establishment

of HuACE & NEW in January 2016 and

distribution of TV drama <Descendants

of the Sun> in February 2016, NEW is

expanding its business and taking steps

towards a 'Total Media Contents Group'.


46 _ 47

5. aPPendIx Subsidiaries' StatusFinancial information

NEW TOP 10 Movies

48 _ 49

5. aPPendIx


2013 2014 2015

Assets

Liquid Asset 95,685,262 152,035,966 167,807,621

illiquid Assets 21,812,357 27,297,576 32,622,494

Total Assets 117,497,620 179,333,543 200,430,116

Liabilities

Liquid Liabilities 71,881,692 49,391,403 57,935,675

illiquid Liabilities 14,230,122 750,000 9,540,000

Total Liabilities 86,111,814 50,141,403 67,475,675

Equity

Corporate Shareholder Equity 31,182,655 129,186,192 131,085,009

Common Stock 3,660,440 6,851,527 13,703,053

Capital in Excess of Par Value 1,738,689 92,913,517 86,024,731

Other Equities -1,610,177 -397,483 156,374

Retained Earnings 27,393,703 29,818,631 31,200,851

Non-corporate Shareholder 203,151 5,948 1,869,432

Total Equity 31,385,805 129,192,140 132,954,441

Total Capital and Liabilities 117,497,620 179,333,543 200,430,116

2013 2014 2015

Sales 126,443,565 61,981,056 82,586,150

Sales Cost 95,309,666 47,452,410 73,838,928

Gross Income 31,133,899 14,528,646 8,747,222

Sales and Maintenance Cost 12,023,923 8,465,295 11,273,746

Operating Income 19,109,976 6,063,352 -2,526,524

Other Revenues and Expense -1,038,051 611,040 408,504

Financing or interest Expense -601,114 -22,206 1,672,758

Equity Method investment income /

Loss3,905,809 1,009,125 -606,118

Net income Before Corporate Tax 21,376,620 7,661,310 -1,051,380

Corporate Tax 2,507,268 4,608,309 -1,968,684

Net Income 18,869,352 3,053,001 917,304

(in KRW thousands) (in KRW thousands)

3-Year Income Statement (Consolidated)3-Year Balance Sheet (Consolidated)

FInancIal InForMatIon

Subsidiaries' Status

Financial Information NEW TOP 10 Movies

Northern Limit Line (2015) director : Hak-soon Kim

Writer : Hak-soon Kim

Starring : Mu-yeol Kim,

Jin Goo,

Hyun-woo Lee

Cold Eyes (2013) directors : Byung-seo Kim,

Eui-seok Cho

Writer : Eui-seok Cho

Starring : Kyung-gu Seol,

Woo-sung Jung,

Hyo-ju Han

The Attorney (2013) director : Woo-seok Yang

Writers : Woo-seok Yang,

Hyun-ho Yoon

Starring : Kang-ho Song,

Young-ae Kim,

Dal-soo Oh

hide and Seek (2013) director : Jung Heo

Writer : Jung Heo

Starring : Hyun-ju Sohn,

Jung-hee Moon,

Mi-sun Jeon

The Grand heist (2012) director : Joo-ho Kim

Writer : Min-sung Kim

Starring : Tae-hyun Cha,

Ji-ho Oh,

Hyo-rin Min

Miracle in Cell NO.7 (2013) director : Hwan-kyung Lee

Writers : Hwan-kyung Lee,

Hwang-sung Kim,

Young-suk Kim

Starring : Seung-ryong Ryu,

Shin-hye Park,

So-won Gal

Total Admissions : 12.81 mil






NEW TOP 10 Movies

50 _ 51

5. aPPendIx


New World (2013) director : Hoon-jung Park

Writer : Hoon-jung Park

Starring : Jung-jae Lee,

Min-sik Choi,

Jungmin-Hwang

unbowed (2012) director : Ji-young Jung

Writers : Hyun-geun Han,

Ji-young Jung

Starring : Sung-gi Ahn,

Won-sang Park,

Young-hee Na

hello Ghost (2010) director : Young-tak Kim

Writer : Young-tak Kim

Starring : Tae-hyun Cha,

Ye-won Kang,

Moon-su Lee

Twenty (2015) director : Byeong-heon Lee

Writer : Byeong-heon Lee

Starring : Woo-bin Kim,

Jun-ho Lee,

Ha-neul Kang

Total Admissions : 4.68 mil Total Admissions : 3.46 mil

Total Admissions : 3.02 milTotal Admissions : 3.04 mil

Subsidiaries' Status

Financial information

NEW TOP 10 Movies

· an animation and live action film a connecting series is new to Korean film industry. As is...

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