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3Q26 Earnings Release Studio Dragon Nov 5th, 2026
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Disclaimer This financial information in this document are consolidated earnings results based on K-IFRS. This document is provided for the convenience of investors only, before the external audit on our 3Q 2026 financial results is completed. The audit outcomes may cause some parts of this document to change. In addition, 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, and often contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks” or “will”. Our actual results to be materially different from those expressed in this document due to uncertainties.
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CONTENTS 01. 3Q26 Highlights 02. 3Q26 Business Performance 03. Growth Strategies 04. Appendix º Summary º Revenue Breakdown º Cost Breakdown
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- 4 - 3Q26 HIGHLIGHTS +44% Profitability 60% Pre-SalesCost Efficiency ~8% Project Size FINANCE PERFORMANCE Record High * Based on the tvNlineup OP YoY OPM 9.5%Efficiency Gains Total Production Budget*3Q26 YTD Global-Scale Content Share* Global Viewership * Tantara
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8.9 2.8 6.6 13.0 4.5 6.5% 1.9% 4.2% 9.0% 2.9% 3Q25 4Q25 1Q26 2Q26 3Q26 NP NPM 10.5 18.5 6.4 15.4 15.1 7.7% 12.7% 4.1% 10.6% 9.5% 3Q25 4Q25 1Q26 2Q26 3Q26 OP OPM 136.5 145.9 155.3 145.3 159.0 3Q25 4Q25 1Q26 2Q26 3Q26 SUMMARY Revenue Operating Profit Net Profit - 5 - Unit : Wbn Unit : Wbn Unit : Wbn 3Q26 Revenue W159.0bn(YoY +16.5%), OP W15.1bn(YoY +44.4%) Growth driven by large-scale global OTT originals, overseas pre-sales and cost efficiency 4Q26 Expanded pre-sales and a higher hit ratio → Broader reach and sustained structural turnaround
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38.4 70.5 60.0 92.7 26.6 98.1 75.4 95.2 52.6 132.4 136.5 145.9 155.3 145.3 159.0 3Q25 4Q25 1Q26 2Q26 3Q26 Domestic Overseas 27.6 37.0 48.4 15.5 17.1 105.9 103.1 104.5 126.9 139.6 3.0 5.7 2.4 2.9 2.3136.5 145.9 155.3 145.3 159.0 3Q25 4Q25 1Q26 2Q26 3Q26 Programming Distribution Others 81.4 57.6 87.3 91.7 108.9 55.1 88.3 67.9 53.6 50.1 136.5 145.9 155.3 145.3 159.0 3Q25 4Q25 1Q26 2Q26 3Q26 1st Window 2nd Window Channels, Distribution sales grew(YoY +31.7%) on large-scale titles, despite a smaller lineup(60eps, YoY -12eps) Regions, Overseas revenue increased(YoY +35.0%) on full delivery of Netflix original Tantara and pre-sales* Windows, 1st window revenue rose(YoY +33.8%)on a stronger mix of large-scale TV∙global OTT titles REVENUE BREAKDOWN Channels Regions Windows (*) - 6 - Unit : Wbn Unit : Wbn Unit : Wbn * Global pre-sales: 10 eps of <Four Hands, Two Sonatas> to Netflix, 8 eps of <See You at Work Tomorrow!> to Amazon Prime Video (*) 1st Window = Rev. from TV programming, OTT original Series, Sponsorship, etc. / 2nd Window = VOD, Licensing, other business excel. sponsorship, etc.
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COST BREAKDOWN OPEX, COGS ratio fell(YoY -1.2%p) on lower amortization and cost efficiency, despite higher original costs Intangible Asset, Advances and Construction-in-progress rose(YoY +8.9%) on large-scale titles and 2027 lineup 3Q25 4Q25 1Q26 2Q26 3Q26 Production COGS 74.5 61.8 85.2 77.7 98.0 Labor Costs 5.7 7.1 7.6 6.8 7.7 Depreciation 0.9 0.8 0.8 0.8 0.8 Amortization 29.0 32.6 41.3 27.3 19.9 Commissions 13.9 22.8 12.3 14.9 15.6 Others 2.1 2.3 1.7 2.4 1.8 OPEX 126.0 127.4 148.9 129.8 143.9 - 7 - Unit : Wbn Unit : Wbn OPEX Breakdown (P/L) Intangible Asset (B/S) 33.4 42.9 38.8 28.2 32.1 150.8 125.9 98.9 145.0 183.0 3Q25 4Q25 1Q26 2Q26 3Q26 Copyright Construction-in-Progress
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KEY STRATEGIES Driving Sustainable Growth Through Structural Transformation Growth in Production Cost per Ep. (Captive) 20.1% 7.1% 9.8% -6.2% FY 2023 FY 2024 FY 2025 9M 2026 +1.0% ★Cost Efficiency Initiatives Operating Profit Growth -14.3% -34.9% -16.5% +212.6% FY2023 FY2024 FY2025 9M 2026 ★9M YoY * Based on Netflix & Disney+ Original productions by Studio Dragon 55.3% -5.2% 20.3% 4.6% FY2023 FY2024 FY2025 FY2026 FY2027(E) ★Continued growth expected in 2027 Growth in Production Cost per Ep. (Global OTT Originals*) - 8 - ✓ Enhancing production management system ✓ Improving cost efficiency through AI adoption ✓ Achieved ~8% cost savings in 9M26 → Targeting ~10% for FY2026 ✓ Tentpole-focused lineups on tvN ✓ Expanding global pre-buy & Improving recoupment rates ✓ Increasing production budgets for OTT Originals ✓ Securing new revenue via global TVING brand sections ✓ OP up 212.6% YoY in 9M26 ✓ Continuing to enhance content quality & production efficiency ✓ Securing additional upside potential through IP monetization Cost Efficiency Sustainable Growth Profit Improvement
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KEY STRATEGIES Strong 4Q Lineup Momentum → Valuation Re-rating on Improving Fundamentals - 9 - 3.7 4.6 6.9 6.5 5.6 5.9 4.6 11.6 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 4Q Average TV Ratings : 11.6% GIFT tvN • Kim Woobin, Seo Eunsoo • Releasing on Dec. 5th UPCOMING : Sustaining MomentumNOW SHOWING Reference : Netflix Tudum, Flixpatrol * 4Q26 figures are based on episodes aired through Nov. 5th 100 Days of Deception tvN • Highest Viewership 11.6% • Netflix Global TV Shows No. 8 Non-Eng TV Shows No. 4 Tantara Netflix • Song Hyekyo, Gong Yoo • Releasing on Dec. 11th The Substitute TVING • Bae Hyeonseong, Cha Kangyoon • Releasing on Nov. 23rd
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(Unit : Wbn) 3Q25 2Q26 3Q26 QoQ (%) YoY (%) Total Assets 1,127.3 1,031.6 1,009.7 (2.1) (10.4) Current Assets 276.6 287.5 283.0 (1.6) 2.3 Cash and Cash Equivalents 58.9 50.7 79.9 57.5 35.6 Others 217.8 236.8 203.2 (14.2) (6.7) Non-Current Assets 850.6 744.1 726.7 (2.3) (14.6) Tangible Assets 10.4 10.9 7.6 (29.9) (27.0) Intangible Assets 264.3 230.1 267.9 16.4 1.4 Others 575.9 503.1 451.1 (10.3) (21.7) Total Liabilities 270.1 253.1 245.5 (3.0) (9.1) Current Liabilities 224.5 238.4 236.8 (0.7) 5.4 Non-Current Liabilities 45.6 14.6 8.7 (40.6) (80.9) Shareholder’s Equity 857.1 778.5 764.2 (1.8) (10.8) Capital Stock 15.0 15.0 15.0 0.0 0.0 Paid-In Capital in Excess of Par Val 473.4 473.4 473.4 0.0 0.0 Retained Earnings 282.3 303.3 307.8 1.5 9.0 Other Components of Equity 86.4 (13.1) (31.9) CR TR Key Financial Ratios Current Ratio(%) 123.2 120.6 119.5 (1.0)%p (3.7)%p Net Debt(Net Cash) Ratio(%) (1.9) 2.8 (1.6) (4.4)%p 0.3%p Cash Ratio(%) 26.2 21.3 33.7 12.5%p 7.5%p FINANCIAL STATEMENT - 10 - Note (1) K-IFRS consolidated basis (2) Current Ratio = Current Assets / Current Liabilities, Net Debt (Net Cash) to Equity = Net Debt (Net Cash) / Shareholders’ Equity, Cash Ratio = Cash and Cash Equivalents / Current Liabilities (3) TR (Turned Red), TB (Turned Black), CR (Continued Red), n/a (not available)
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(Unit : Wbn) 3Q25 4Q25 1Q26 2Q26 3Q26 QoQ (%) YoY (%) 3Q25 YTD 3Q26 YTD YoY (%) # of Episodes Aired 72 58 91 77 60 (22.1) (16.7) 172 228 32.6 TV 39 46 64 50 38 (24.0) (2.6) 106 152 43.4 OTT 33 12 27 27 22 (18.5) (33.3) 66 76 15.2 Revenue 136.5 145.9 155.3 145.3 159.0 9.4 16.5 384.8 459.6 19.4 Programming 27.6 37.0 48.4 15.5 17.1 10.0 (38.1) 78.2 81.0 3.6 Distribution 105.9 103.1 104.5 126.9 139.6 10.0 31.7 296.6 370.9 25.1 Others 3.0 5.7 2.4 2.9 2.3 (19.1) (20.9) 10.0 7.6 (24.1) OPEX 126.0 127.4 148.9 129.8 143.9 10.8 14.2 373.0 422.6 13.3 COGS 119.4 121.2 142.7 122.7 137.1 11.7 14.8 352.5 402.4 14.2 SG&A 6.7 6.2 6.2 7.1 6.8 (4.6) 2.4 20.5 20.1 (1.6) Operating Profit 10.5 18.5 6.4 15.4 15.1 (2.1) 44.4 11.8 37.0 212.6 Margin(%) 7.7 12.7 4.1 10.6 9.5 (1.1)%p 1.8%p 3.1 8.0 5.0%p Non-Operating Profit 1.3 (18.4) 2.1 1.2 (8.0) TR TR (0.4) (4.8) CR Non-Operating Income 1.2 1.8 4.1 2.1 (0.1) TR TR 5.5 6.1 11.7 Non-Operating Expenses (0.0) 20.2 2.0 0.9 8.0 754.9 TB 5.9 10.9 84.7 Pre-tax Profit 11.8 0.2 8.5 16.6 7.1 (57.3) (39.8) 11.4 32.2 182.0 Income Taxes 2.9 (2.6) 2.0 3.6 2.5 (28.9) (10.9) 3.9 8.1 108.9 Net Profit 8.9 2.8 6.6 13.0 4.5 (65.2) (49.1) 7.5 24.1 219.7 Margin(%) 6.5 1.9 4.2 9.0 2.9 (6.1)%p (3.7)%p 2.0 5.2 3.3%p INCOME STATEMENT - 11 - Note (1) K-IFRS consolidated basis (2) TR (Turned Red), TB (Turned Black), CR (Continued Red), n/a (not available)
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4Q26 LINEUP Appendix - 12 - 100 Days of Deception tvN 16 eps Oct. 10th ~ Nov. 29th GIFT tvN 12 eps Dec. 5th ~ Jan. 10th The Substitute TVING 10 eps Nov. 23rd Happy Anding tvN 12 eps Nov. 11th ~ Dec. 17th
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