Goldman Sachs Internet Conference Las Vegas, NV May 21, 2008
Disclaimer These presentation materials have been prepared by Gmarket Inc. ( Gmarket or the Company ) and have not been independently verified. No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in these materials. Neither the Company nor any of its affiliates, advisers or representatives accepts any responsibility whatsoever for any loss or damage arising from any information presented or contained in these materials. The information presented or contained in these materials is current as of the date hereof and is subject to change without notice and its accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or representatives make any undertaking to update any such information subsequent to the date hereof. In addition, certain information and statements made in this presentation contain forward-looking statements. Such forward-looking statements can be identified by the use of forward-looking terminology such as anticipate, believe, considering, depends, estimate, expect, intend, plan, planning, planned, project, and similar expressions. All forward looking statements are the Company s current expectation of future events and are subject to a number of factors that could cause actual results to differ materially from those described in the forward-looking statements. Caution should be taken with respect to such statements and you should not place undue reliance on any such forward-looking statements. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares or other securities of the Company and neither any part of the materials nor any information or statement contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Any decision to purchase shares in any offering of shares of the Company should be made solely on the basis of the information contained in the prospectus which may be published or distributed in due course in connection with any offering of shares of the Company. 2
Overview Korea s Leading E-commerce Company Undisputed Market Leadership Strong Growth Opportunity Dynamic Revenue Model Continuous Margin Improvement 3
Overview Our Business Model Integrated Commerce Platform Provider Marketplace Advertising Platform Value Added Services Five Trading Platforms, Vast Product Selection, Wide Range of Categories Seller & Non-Seller Ads, Keywords, Banners & Co-Promotional Events Customer Service, Loyalty Programs, Seller Empowerment 4
Overview Recent Performance Highlights 1Q 2008 YoY Revenues 64.65 bn Won 35% Operating Income 10.32 bn Won 89% Net Income 10.32 bn Won 55% GMV 933.4 bn Won 29% 5
Our Strategy Expand Product Category Selection Improve Margins Develop New Markets Strategy Increase Advertising Revenue Explore International Opportunities 6
Our Strategy Marketplace Overview Product Category Portfolio Analysis Category Grouping Profitability Growth Opportunity Clothing/Accessories High Moderate Computers/Electronics Low Moderate Lifestyle (Child Care/Food/Living) Moderate High Travel/Books Moderate/High High 7
Our Strategy Product Category Analysis (1) Clothing/Accessories 2005 Gmarket Market Share vs. Industry ( ) Industry Total GMV in billions of Won 28% (1,583) 1Q08 GMV: +8% (YoY) Flagship franchise 2006 39% (2,372) Key profit driver 2007 39% (2,714) 8
Our Strategy Product Category Analysis (2) Computers/Electronics 2005 Gmarket Market Share vs. Industry ( ) Industry Total GMV in billions of Won 11% (2,911) 1Q08 GMV: +27% (YoY) Traffic channel 2006 19% (3,357) Potential base for nonseller/manufacturer advertisements 2007 27% (3,978) 9
Our Strategy Product Category Analysis (3) Lifestyle Products (Child Care/Food/Living) 2005 Gmarket Market Share vs. Industry ( ) Industry Total GMV in billions of Won 8% (3,877) Lifestyle Products 1Q08 GMV: +48% (YoY) 2006 14% (4,886) Food Category 1Q08 GMV: +82% (YoY) Current growth engine 2007 19% (5,699) 10
Our Strategy New Market Opportunities Travel Media Products Service Products Create marketplace for travel & tour products Books, music, digital content & mobile shopping platform Develop new market for innovative service products 1Q08 GMV: +91% YoY 1Q08 GMV: + 187% YoY 1Q08 GMV: +328% YoY 11
Our Strategy International Opportunities Current Short-term Mid-term Long-term Japan - Testing period for www.gmarket.co.jp -2 nd Half 08: Full-service launch Southeast Asia U.S. and China 12
Our Strategy Advertising Revenue Overview Advertising Revenue Mix (in billions of Won) 92.87 43% of total revenues in 1Q08 54.88 Increasing seller advertisements in nonclothing categories 13.56 Growing base of non-seller advertisers 2005 2006 2007 Premium Listings Seller Ads Non-Seller Misc 13
Accelerated Margin Growth Margin Trend OP Income Margin Pre-tax Income Margin 21.0% 7.0% 5.1% 12.7% 9.2% 16.0% 11.9% 16.0% 2005 2006 2007 1Q08 (in billions of Won) Operating Income Pre-tax Income 3.6 14.2 26.5 10.3 5.0 19.6 35.7 13.6 14
Conclusion Industry-leading marketplace and revenue model Capturing current growth and future opportunities Consistently improving profitability 15
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