1. '24 Q2 Results
- Revenue: 95.7BN (yoy-36.9%)
  : Absence of major artists’ activities resulted in temporary decline
- Operating Profit: 9.3BN (yoy-79.6%)
- Net Profit: 1.2BN (yoy-95.0%)

- GPM: 34.8% (yoy-12.9%p) / OPM: 9.8% (yoy-20.4%p)
  : GPM decreased from rise in other expenses, mainly from increased JYP360 manufacturing cost
  : OPM decreased to 9.8% as revenue declined from lack of major artists' activities

2. Revenue Detail Summary
※ Major Reasons for Revenue Decline
1) Physical revenue dropped (yoy-82%) from the absence of major artists’ new releases

  : Annual album volume to decline vs initially planned from 1) reduced China group purchases and 2) contraction in the album wholesale/retail market; '24 H2 album volume to remain similar to '23 H2
2) MD revenue decreased (yoy-33%) due to lacking concerts activities from major artists

※ Details by Segments
- Despite absence of major artists' concerts, decline in concert revenue was limited (yoy-3%) from overage profit share from LiveNation
- Structural growth of global streaming revenue continued (yoy+5%) despite lack of new album releases
- Management segment revenue increased as key artists’ global popularity rise

  : Ads recorded the highest quarterly revenue of 9.2BN

- IP licensing and fan club resulted in meaningful growth of others-others revenue (yoy+33%)

3. Cost Detail Summary
- Decrease in revenue and increase in JYP 360 manufacturing costs led to margin contraction (GPM: 34.8%, OPM: 9.8%)
  : COGS decreased except Other Expense - Content Production Cost (yoy-57%), Artist Fee (yoy-17%). However, Other Expenses increased (yoy+56%)
- SG&A decreased (yoy-2.7BN), primarily from incentive decline (yoy-8BN)

- Commission fee of JYP360 (PG & shipping, etc.) increased by 1BN

4. P&L Details - Revenue
- Physicals reached 13.5BN including Nayeon and NEXZ, despite no new releases from key artists
- Global streaming sales portion expanded to 84% from continued growth
- Concert reached 14.0BN, supported by overage profit share from LiveNation and DAY6 & ITZY.
- MD reached 14.6BN, including 7.0BN from JYP360

  : JYP360's Q3 results to improve as online revenue of SKZOO pop-up store is expected to be reflected in Q3
  : JYP360 annual guidance remain valid - 30% revenue growth and high-single digit OPM
- Ads achieved the highest quarterly record of 9.2BN, driven by increased global recognition of key artists
- IP Licensing and fan club revenue increased, reaching 18.8BN others-others revenue

5. P&L Details - COGS and SG&A
- Decline in content production costs (-21.8BN) and artist fee (-4.1BN) from lack of artists' activities

- Other expenses increased by 9.0BN as manufacturing costs for JYP360 rises

  : Pre-reflection of manufacturing costs for the SKZOO pop-up online revenue (Q3)
- SG&A decreased by 2.7BN, with incentives reduced by 8.0BN

- Commission fee of JYP360 (PG & shipping, etc.) increased by 1.0BN / lease asset D&A increased by 0.7BN

6. P&L Details - Others
- Financial Income - FX increased by 1.2BN and gains from the fair value measurement of 4BY4 increased 0.5BN
- Financial Expenses - Decline in the fair value of NAVER Z financial assets contributed 1.6BN
- Other Non-operating Expenses - Donations increased by 1.7BN
- Corporate tax (4.6BN) reflected

7. Investment Highlights (Artists)
- Strengthened presence and solid financial performance in Japan expected from TWICE, MISAMO (TWICE Japan unit), Stray Kids, NiziU, and NEXZ debut 
- Various H2 activities of TWICE planned including group, unit, and solo (Tzuyu)
- Strong growth outlook for Stray Kids as their global top-tier K-pop group position solidifies with enhanced mass fans

  : Billboard album/streaming chart performance confirms broad fan base

  : Global festival headliner demand rise and massive world tour planned for H2
- ITZY successfully completed world tour across 28 regions / H2 comeback planned
- NMIXX's growth potential remains strong from positive market feedback / comeback scheduled for August 19
- Various activities of NiziU planned in H2, including album release and fan meetings
- Rapid growth of NEXZ expected from official Japan debut(August 21st), followed by a successful global debut in May
- Planned H2 debut of K-pop boy group and Chinese boy group; L2K project to be launched through a new subsidiary in Latin America 

8. Long-term Outlook
- In short-to-mid-term (1-3 yrs), Stray Kids' successful contract renewal and new artists' line-up expansion support growth momentum 
- In mid-to-long term, new label business to enlarge financial contribution  
- Plan to strengthen overseas market presence including NA and LATAM 
- Rapid monetization of INNIT Entertainment by leveraging existing capabilities; plan to growth and manage various types of artists
- JYP360 in the process of platform integration of JYP SHOP and FANS, together with business and cost structure optimization to increase efficiency

- Additional plans expected to secure future growth