INVESTOR RELATIONS · ※The ranking is based on rewritten by company which includes only the video...

INVESTOR RELATIONSApril 2020 I KineMaster Corporation

1st Quarter 2020 Results

The financial information contained in this document is based on consolidated

K-IFRS and has not been reviewed by an independent auditor.

Therefore, the information and financial data contained in this document are

subject to change upon an independent auditor ’s review.

KineMaster Corporation is not liable for providing future updates on all figures

included in this document. Investors should consider this document as only a single

factor in making their investment decision.

Disclaimer

ⓒ KineMaster Corporation 2

3

Contents

ⓒ KineMaster Corporation

01.

02.

03.

04.

05.

Business｜KineMaster / PlayerSDK

1Q 2020｜KineMaster Performance

1Q 2020｜ Earnings Summary

Market Trend｜Video Editing App Market

Appendix｜History / Governance

4

6

10

14

20

4

Business l KineMaster; The Most Powerful Video Editing App on Mobile

▪ An intuitive user interface and experience-based mobile video editing app

▪ Subscription model ; remove watermark and ads, full access to premium assets added every week

▪ Asset store provides professional assets, such as music, sound effects, visual effects and transitions,

stickers, animated overlays, and fonts

▪ The editing app to create professional video content without a computer with Multi-layered, Chroma Key,

Speed Adjust, Transition, Subtitles, Reverse, Color Filters, and Advanced Audio Editing Feature

48 Million

4.7 Million

240 Million

MAU

DAU

Download


Supported

languages 18 +

KRW 6,000 /month

KRW 36,000 /year

iOS & Android

As of Mar 31st, 2020

Serviced

countries 155 +

5

Business l Player SDK; Multiscreen Player SDK for video apps

▪ Provide highest video quality for OTT service providers

▪ Smartphones & Tablets, Smart TVs, STBs, Web Browsers

▪ Excellent and timely customer support

Ove

r 15

0 G

lob

al

Cu

sto

me

rs


122,458

147,995

179,577

209,736

245,867

1Q 19 2Q 19 3Q 19 4Q 19 1Q 20

6ⓒ KineMaster Corporation

1Q 2020 l KineMaster Download

> Cumulative Downloads

Accumulated downloads YoY +101% / QoQ +17% in 1Q20

> 1Q Downloads by Country

Ind ia and Indonesia account for about 40% of As ia -Pac i f ic

(in thousands)

31.9

India

(%)

Americas13.3

Asia-Pacific62.3

EMEA24.1

28.1

India

12.7

Indonesia

6.3

China

5.2

Brazil


※ Average o f month ly MAU.

1Q 2020 l KineMaster MAU

> KineMaster MAU

MAU YoY +65% / QoQ +17% in 1Q20

(in thousands)

> MAU by Country

Ind ia and Indonesia account for about 42% of As ia -Pac i f ic

(%)

※ Android + iOS MAU based on Andro id , and iOS in 1Q20.

25,43127,621

33,55535,837

41,986

1Q 19 2Q 19 3Q 19 4Q 19 1Q 20

Americas12.1

Asia-Pacific61.1

EMEA26.5

27.3

India

15.6

Indonesia

5.3

Iraq

4.9

Brazil

2,318

3,023

4,2204,562

5,025

172198

233

279323

1Q 19 2Q 19 3Q 19 4Q 19 1Q 20


※ Cumulat ive revenue based on Andro id , and iOS in 1Q20. ※ The total revenue includes subscriptions, Ads, and Premium IP Asset with the highest percentage

of subscription revenue.

※ The number of subscribers is the average for each quarter, and Android includes users during the

free trial period.

1Q 2020 l KineMaster Revenue

> Revenue by Country

Uni ted States account for about 21% of Amer ica

> KineMaster Revenue

Revenue YoY +117% / QoQ +10% in 1Q 2020

Subscr ibers YoY +179% / QoQ +39% in 1Q 2020 (in million KRW)

# Subscribers(in thousands)

(%)

Americas29.6

Asia-Pacific52.3

EMEA18.1

20.8

United States

13.5

China

9.3

Korea

8.9

Thailand

9

1,079 1,081

1,008

1,048

1,120

1Q 19 2Q 19 3Q 19 4Q 19 1Q 20


> PlayerSDK RevenueRevenue YoY +4% / QoQ +7% in 1Q 2020

.

8

11

8

10 10

1Q 19 2Q 19 3Q 19 4Q 19 1Q 20

> PlayerSDK CustomersCustomers YoY +25% .

1Q 2020 l KineMaster Revenue

(in million KRW)


1Q 2020 l Earnings Summary

1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 QoQ YoY FY 19

Total Revenue 3,748 4,305 5,512 5,858 6,172 5.36% 64.67% 19,423

KineMaster 2,318 3,023 4,220 4,562 5,025 10.15% 116.78% 14,104

PlayerSDK 1,079 1,081 1,008 1,049 1,120 6.77% 3.8% 4,247

Others 351 201 284 247 27 -89.07% -92.31% 1,072

Operating Expenses 4,381 4,518 4,871 5,337 5,677 6.37% 29.58% 19,105

App commission fee 526 697 1,009 1,086 1,260 16.02% 139.54% 3,318

Operating Profit -633 -212 641 522 495 -5.17% Turnaround 318

% Margin -16.9% -4.9% 11.6% 8.91% 8.02% - - 1.64%

Net Profit -595 -186 705 138 505 265.94% Turnaround 62

% Margin -15.9% -4.3% 12.8% 2.35% 8.19% - - 0.32%

(in million KRW)

(in million KRW)

> Operating Profit

Operat ing prof i t 195mn in 1Q 2020

Operat ing marg in 8.0% in 1Q 2020


(in million KRW)▪

▪

▪

> Total Revenue

KineMaster 81% of to ta l revenue

PlayerSDK 18% of to ta l revenue

Others 0% of to ta l revenue


-633

-212

641

522 495

-16.9%

-4.9%

11.6%

8.9% 8.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

1Q 19 2Q 19 3Q 19 4Q 19 1Q 20

-800

-600

-400

-200

0

200

400

600

800

3,748

4,305

5,5125,858

6,172

1Q 19 2Q 19 3Q 19 4Q 19 1Q 20

62%

29%

9%

70%

25%

5%

76%

19%

5%

78%

18%

7%

81%

18%


✓ Continuously adding a variety of new functions to improve user satisfaction

- Add premium assets for subscribers (Music, Clip graphic, Conversion effect, Sticker and etc)

- Release version 4.13 with video and image clip color adjustment (April 2020)

.

✓ Expanding strategic On/off-line marketing activities with App positioning and Communication

- Official YouTube channel with 970K subscribers: increasing collaborative opportunities with Global

YouTube Influencer and Global Contents Partner

✓ Strategic Plan for 2020

- Focus on expanding subscribers with more benefits for paid users.

- Time-limited promotion from April 2020



(in million KRW)(in million KRW)


Statement of Financial

Posit ion1Q19 2Q19 3Q19 4Q19 1Q20

Current assets 12,363 12,639 13,292 12,303 13,902

Non-current assets 1,642 981 823 2,045 926

Total assets 14,005 13,620 14,115 14,349 14,829

Current liabilities 1,191 1,055 859 1,277 952

Non-Current liabilities 798 728 707 541 750

Total liabilities 1,989 1,783 1,566 1,818 1,701

Capital Stock 3,508 3,508 3,508 3,508 6,773

Additional Paid-in and

Other Capital4,592 4,592 4,592 4,592 1,327

Elements of other

stockholder's equity-2,672 -2,428 -2,428 -2,428 -2,428

Accumulated other

comprehensive income-10 -1 7 -23 73

Retained earnings 6,352 6,166 6,870 6,881 7,382

Total equity 12,015 11,837 12,549 12,531 13,127

Total equity and

liabilities14,005 13,620 14,115 14,349 14,829

Income

Statement1Q19 2Q19 3Q19 4Q19 1Q20 1Q19

Revenue 3,748 4,305 5,512 5,858 6,172 3,748

Operating

expenses4,381 4,518 4,871 5,337 5,677 4,381

Operating profit -633 -212 641 522 495 -633

Margin (%) -16.9 -4.9 11.6 8.9 8.0 -16.9

Non-operating profit 121 183 199 -43 228 121

Non-operating

expenses5 115 43 88 42 5

Net profit before tax -516 -144 798 391 681 -516

Income tax expense 79 42 92 253 175 79

Net profit -595 -186 705 138 505 -595

Total comprehensive

income-590 -178 711 -18 596 -590

EPS(won) -91 -28 108 21 39 -91

(in million KRW)(in million KRW)

※ This material has been updated in Mar 11th to reflect changes made from audit report, 2019.

14

Market Trend l Video Editing App Market – Source:


※ This information is estimated revenue from App annie; it does not include 30% store platform commission, Ads or Android revenue from China.

※ The ranking is based on rewritten by company which includes only the video editing app market, except for the photo editing app market

Ranking

(1Q’20)App

Revenue

1Q’19

Revenue

4Q’19

Revenue

1Q’20QoQ YoY % of Total

1 - $4,076,097 $5,140,323 $5,711,756 11.12% 40.13% 12.19%

2 - $7,542 $2,826,121 $3,864,542 36.74% 51140.28% 8.25%

3 - $3,614,227 $3,322,527 $3,709,492 11.65% 2.64% 7.92%

4 - $5,126,068 $4,126,631 $3,436,855 -16.72% -32.95% 7.34%

5 - $4,953,784 $2,716,791 $3,099,211 14.08% -37.44% 6.62%

6 - $2,299,788 $3,130,095 $2,812,434 -10.15% 22.29% 6.00%

7 - $5,068,819 $3,091,634 $2,592,727 -16.14% -48.85% 5.53%

8 - $1,477,389 $2,422,739 $2,539,441 4.82% 71.89% 5.42%

9 - $1,392,821 $1,752,140 $2,111,918 20.53% 51.63% 4.51%

10 - $374,458 $2,161,649 $1,925,369 -10.93% 414.17% 4.11%

11 - $1,021,593 $1,349,444 $1,208,467 -10.45% 18.29% 2.58%

12 - $1,228,101 $1,200,184 $1,175,571 -2.05% -4.28% 2.51%

13-27 - $7,999,572 $7,389,307 $8,055,444 9.01% 0.70% 17.20%

Total $38,640,259 $40,629,585 $42,243,227 3.97% 9.32% 100.00%


Android & iOS Estimated Revenue (1Q‘17 ~ 1Q‘20)

15


※ This information is estimated MAU from App annie.


16



Ranking

(1Q’20)App

MAU

1Q’19

MAU

4Q’19

MAU

1Q’20QoQ YoY % of Total

1 - 24,857,922 39,229,481 53,188,612 35.58% 113.97% 31.00%

2 - 14,569,171 26,905,695 39,316,236 46.13% 169.86% 22.92%

3 - 18,006,180 21,529,733 25,155,362 16.84% 39.70% 14.66%

4 - 8,998,043 10,996,212 10,842,844 -1.39% 20.50% 6.32%

5 - 6,695,764 8,131,235 10,591,565 30.26% 58.18% 6.17%

6 - 3,878,085 11,433,253 8,863,283 -22.48% 128.55% 5.17%

7 - 5,498,986 6,012,566 5,856,911 -2.59% 6.51% 3.41%

8 - 2,956,807 2,569,037 3,163,591 23.14% 6.99% 1.84%

9 - 2,282,224 2,292,674 2,784,164 21.44% 21.99% 1.62%

10 - 498,157 816,221 1,763,165 116.02% 253.94% 1.03%

11 - 1,712,898 882,620 1,572,027 78.11% -8.22% 0.92%

12 - 346,132 949,287 1,409,773 48.51% 307.29% 0.82%

13-27 - 4,405,666 4,697,742 7,066,084 50.41% 60.39% 4.12%

Total 94,706,035 136,445,756 171,573,617 25.74% 81.16% 100.00%




Android & iOS Estimated MAU (1Q‘17 ~ 1Q‘20)

17




Android & iOS Growth(2Q’19 ~ 1Q‘20)Android & iOS User attention (2Q’19 ~ 1Q‘20)

ⓒ KineMaster Corporation 18

Ave

rage

tim

e/

Use

r

Dow

nlo

ad

Active User Active User

※ The information is estimated data provided by App Annie does not math the actual performance.




Tik Tok app search trend (1Q’18 ~ 1Q’20) Video edit ing app search trends (1Q’18 ~ 1Q’20)

Tik Tok

Tik Tok KineMaster MagistoSlideShow VivaVideo Videoleap

19

100

75

50

25

100

75

50

25

2018.1.7 2018.9.9 2019.5.12 2020.1.12 2018.1.7 2018.10.21 2019.8.4

History

▪ 2002 Company founded

▪ 2005 Provided streaming player to Samsung Electronics

▪ 2010 Provided streaming player to LG Electronics

▪ 2011 Listed on KOSDAQ

▪ 2011 Provided Android player SDK to HBO

▪ 2012 Started KineMaster app development

▪ 2013 Provided Player SDK to Time Warner Cable

▪ 2013 KineMaster Android version

▪ 2013 SingPlay Android version

▪ 2015 Provided video editing solution to XiaoMi

▪ 2017 KineMaster iOS version

▪ 2018 KineMaster exceeded 80M total downloads

▪ 2019 KineMaster exceeded 120M total downloads /25M MAU

▪ 2019 Changed the company name to KineMaster Corporation


▪ 2019 BeatSync Android version

▪ 2020 Capital increase without compensation


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Appendix l History / Governance


I l - taek Lim 1,709,870 12.62% Cofounder 〮 CEO

Jae-won Chung 1,076,286 7.95% Cofounder 〮 COO

Treasury Stock 487,515 3.60% -

SOLBORN,Inc and

part ies concerned4,732,188 31.98% Investors

Etc 5,940,514 43.85% -

Total 13,546,373 100.00% -

List of shareholders

Subsidiary

HQ

KineMaster and SDK Business

Employees: 79 (108)

US

KineMaster

Employees: 3 (4)

CHINA

KineMaster

Employees: 5

SPAIN

Player SDK

Employees: 17

Ownership: HQ 100% Ownership: HQ 100% Ownership: HQ 100%

※ ( ) are based on total operating employees including key freelancers and outsourced staffs.

1st Quarter 2020 Results l KineMaster Corporation

Business Planning Team l [email protected]/ [email protected]

www.kinemastercorp.com l www.kinemaster.com

INVESTOR RELATIONS · ※The ranking is based on rewritten by company which includes only the video...

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