Naver : 4Q 2016 NAVER Earnings Release

Fourth Quarter and FY 2016 Earnings Results

January 26th, 2017

ⓒ NAVER Corp.

Disclaimer

The financial information in this document are earnings results based on K-IFRS.

This document is provided for the convenience of investors only, before the external audit on our financial results is completed; therefore, the audit outcomes may cause some part(s) of this document to change.

The company does not make any representation or accept liability, as to the accuracy or completeness of the financial and operational results stated, and is also not responsible for providing updates on the figures contained in this document.

1. Earnings Summary (Consolidated)
   • [Operating revenue] Operating revenue was 1.08 tn KRW, up 21.7% Y/Y and 7.1% Q/Q
   • [Operating income] Operating income was 290.3 bn KRW, up 28.9% Y/Y and 2.8% Q/Q

     (bn KRW)	4Q15	3Q16	4Q16	Growth		2016	Growth
     				Y/Y	Q/Q		Y/Y
     Operating revenue	891.4	1,013.1	1,085.0	21.7%	7.1%	4,022.6	23.6%
     Ads	646.9	749.5	821.9	27.1%	9.7%	2,967.0	27.8%
     Contents	216.4	227.5	224.2	3.6%	-1.5%	924.9	9.0%
     Other	28.2	36.0	38.9	38.1%	8.0%	130.8	58.1%
     Operating expenses	666.2	730.8	794.7	19.3%	8.8%	2,920.6	20.5%
     Operating income	225.2	282.3	290.3	28.9%	2.8%	1,102.0	32.7%
     Margin(%)	25.3%	27.9%	26.8%	1.5%p	-1.1%p	27.4%	1.9%p
     Pre-tax income	203.0	288.0	276.1	36.0%	-4.1%	1,131.8	37.5%
     Tax	30.4	85.6	92.6	204.8%	8.3%	352.7	54.0%
     Net income from continuing operations	172.6	202.5	183.4	6.3%	-9.4%	779.0	31.1%
     Discontinued operations income	-31.1	-4.5	7.5	n/a	n/a	-11.8	n/a
     Net income	141.5	198.0	190.9	34.9%	-3.6%	767.2	48.4%

     * Tax increased due to recognition of enterprise unappropriated earnings

   • / Fourth Quarter and FY2016 Earnings Results

2. Revenue Proportion (Consolidated)
   • [By Platform] PC revenue was 391.9bn KRW with 36% and mobile revenue was 693.1 bn KRW with 64%
   • [By Region] Domestic revenue was 710.4 bn KRW with 65% and overseas was 374.6 bn KRW with 35%
PC vs. Mobile Domestic vs. Overseas

(bn KRW)

(bn KRW)

987.31,013.1

937.3

891.4

1,085.0

891.4

937.3

987.31,013.1

35%37%

1,085.0

35%

57%60%

62% 64%

64%

33%36%

43% 40% 38% 36%36%

67% 64% 65% 63%

65%

4Q15	1Q16	2Q16	3Q16	4Q16	4Q15	1Q16	2Q16	3Q16	4Q16
PC	Mobile	Domestic	Overseas

1. / Fourth Quarter and FY2016 Earnings Results