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Teaser Memorandum Investment Opportunities In Korea The First Half of 2017

Teaser Memorandum - KOTRA(大韓貿易投資振興公社)Private & Confidential 5 Business Introduction RBW Artist Incubating System / RAISe ‘RBW Artists Incubating System (RAISe)’

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Page 1: Teaser Memorandum - KOTRA(大韓貿易投資振興公社)Private & Confidential 5 Business Introduction RBW Artist Incubating System / RAISe ‘RBW Artists Incubating System (RAISe)’

Teaser Memorandum

InvestmentOpportunitiesIn Korea

The First Half of 2017

Page 2: Teaser Memorandum - KOTRA(大韓貿易投資振興公社)Private & Confidential 5 Business Introduction RBW Artist Incubating System / RAISe ‘RBW Artists Incubating System (RAISe)’

Table of Contents

Important Notice ………………………………… 1

Key Summary ………………………………… 2

Expected Method of Investment Promotion …………………………… 3

Business Plan ………………………………… 4

Business Introduct ………………………………… 5

License ………………………………… 11

Capacity ………………………………… 12

Market ………………………………… 13

Financial Figures ………………………………… 14

Page 3: Teaser Memorandum - KOTRA(大韓貿易投資振興公社)Private & Confidential 5 Business Introduction RBW Artist Incubating System / RAISe ‘RBW Artists Incubating System (RAISe)’

Private & ConfidentialKey Summary

Category Description

Establishment Date 2013. 8. 26

Revenue 12 Billion Won (12 Million $) (2016)

Website www.rbbridge.com

Current Shareholder Composition

C.E.O. Kim Jin Woo 29.2%, C.E.O. Kim Do Hoon 29.2%, Institutional Investment 31.7%, Executives and Staff5.6%, Etc. 4.3%

Head Office B1F Starhills, Janghan-ro 20-gil, Dongdaemun-gu, Seoul

Number of Employees

55

History 2010. 03 Rainbowbridge Agency, Inc. Incorporation (CEO, Kim Jin Woo)2012. 03 WA Entertainment Inc. Incorporation (CEO, Kim Do Hoon)2014. 01 Overseas Broadcasting Program format (Re:Birth) copyright registration (KOREA COPYRIGHT COMMISSION)2014. 03 Venture Business Certification (No. 20140103411)2014. 04 Laboratory affiliated with the Company (Media & Contents Lab) Certificate (Ministry of Science, No. 2014111725)2014. 10 Investment from KTB Network Project (Re:Birth Project, 1 Billion KRW)2015. 02 Merger between WA Ent., Inc. and Rainbowbridge Agency, Inc. (Transfer of Rights)2015. 02 Change of name from Joint Corporation Rainbowbridge Agency, Inc. -> RBW, Inc. (Co-CEO Kim JinWoo, Kim Do Hoon). 2nd paid-in capital increase (Capital: 350 million KRW ->490 million KRW)2015. 07 Investment of 7 billion KRW from KTB Network, Korean Investment Partners, Posco Venture, NHN (Capital: 490 million KRW-> 710 million KRW)2015. 09 V-App Vietnam PR-Marketing Agency contract with Naver Corporation2016. 01 Selected as an operating institution for the 2016 Youth-employment academy ‘Entertainment-business Talent Training Program’, (by the Ministry of Employment and Labor, Human Resources Development Service)2016. 06 Selected as ‘2016 Excellent Venture Company by Korea Venture Business Association

Company Profiles

Investment Highlights

Key Factors• Business with RBW’s Unique Artist Incubating System

•Affiliation Relationship with International Companies

Description • With analyzing the artists’ potentials and market trend, every stage for training and debuting artists (casting, training, producing, and album production) is efficiently processed under this system.

Pictures

RBW is a K-POP (Hallyu) contents production company founded by producer/songwriter Kim Do Hoon, Kim Jin Woo, and Hwang Sung Jin, who have produced numerous K-POP artists such as CNBLUE, Whee-sung, Park Shin Hye, GEEKS, 4MINUTE etc. Based on the “RBW Artist Incubating System’, the company researches and provides various K-POP related products such as OEM Artist & Music Production (Domestic/Overseas), Exclusive Artist Production (MAMAMOO, Basick, Yangpa etc.), Overseas Broadcasting Program Planning & Production (New concept music game show/Format name: RE:BIRTH), and K-POP Educational Training Program. With its business ability, RBW is currently making a collaboration with various domestic and overseas companies, including POSCO, NHN, Human Resources Development Service of Korea, Ministry of Labor & Employment, and KOTRA.

2

Page 4: Teaser Memorandum - KOTRA(大韓貿易投資振興公社)Private & Confidential 5 Business Introduction RBW Artist Incubating System / RAISe ‘RBW Artists Incubating System (RAISe)’

Private & ConfidentialExpected Method of Investment attraction

Category Description

Method of Investment Common Stock or RCPS

The amount of fund

comes from

Investment Attraction

10 Billion Won (Approx.)

Investment Location All Area of Japan

Purpose of Using Invested Fund

- The entry of RBW Artists in global market and Japan Artists in Korean market / Establishment of a subsidiary company in Japan for expansion of OEM/ODM Education business

- Extending the company’s business to various global markets, including South-East Asia, China-related nations, Vietnam, Europe, and Mid/North America, with Japan co-investors.

Customers Various Asian countries, including China, Taiwan, Hong-Kong, Vietnam, Japan

Actual Exports Approximately 20% of Total Sales

Investment Requirement

Method of Investment –RCPS or Common Stocks that worth about 10 billion Won.

Purpose of Using Invested Fund – Establishment of a subsidiary company in Japan and extending the business field for various types of business and global expansion

USD 1.5Million

USD 10Million

Vietnam, Japan & Etc

2016's export record1.5 million $ exports to Vietnam, Japan, China,

and Indonesia

Investment Planplanning the global expansion with co-investors in Japan by establishing the branch office

with investments funds.

International customers making connections with

internal partner companies and advancing

abroad by establishing Vietnam branch company

3

Page 5: Teaser Memorandum - KOTRA(大韓貿易投資振興公社)Private & Confidential 5 Business Introduction RBW Artist Incubating System / RAISe ‘RBW Artists Incubating System (RAISe)’

Private & ConfidentialBusiness Plan

Categories of Business PlanCategories Description

Artist Incubating System

Developing the business that produces OEM Artists and contents with making a connectionwith overseas companies (BtoB/BtoC)

Expected Sales: 2 billion Won / year Be able to dominate the market, because of absence of strong competitors

Production and Planning of

Concerts/Performances

Developing the business that produces and plans the K-POP artists’ world tour More than ten businesses and 2 billion won sales per year, are expected Diversification of business and creating stable revenue

K-POP travel Package

Developing BtoC products that attract K-POP fans with its popularity and high accessibility.

Developing contents that utilize Korea and Japan’s geographical proximity and active cultural communication between them

Increasing the company’s brand value and popularity.

Categories 2016 2017 2018

Sales 10,623 15,934 18,165

Sales Cost - - -

(The rate of Sales Cost) (%) - - -

Gross Margin 10,623 15,934 18,165

Selling and Administrative Expenses

9,964 14,810 16,668

depreciation cost 348 464 499

Operating Profit 658 1,124 1,497

The Rate of Operating Profits (%)

6.19% 7.05% 8.24%

Net Profit During the Term 881 1,293 1,672

R&D NA NA NA

R&D compared to Sales NA NA NA

Forecasting Financial Figures

Categories Description

The Estimated Net Profit During the Term 4,500

Equity Value (Late 2018) 135,000

Valuation (Late 2018)

Equity Value The Estimated Relative Value (Late

2018)

(Million Won)

4

(Million Won)

Page 6: Teaser Memorandum - KOTRA(大韓貿易投資振興公社)Private & Confidential 5 Business Introduction RBW Artist Incubating System / RAISe ‘RBW Artists Incubating System (RAISe)’

Private & Confidential

5

Business Introduction

RBW Artist Incubating System / RAISe

‘RBW Artists Incubating System (RAISe)’ is RBW. inc.’s unique production system that manages the artists effectively. With

analyzing the artists’ potentials and market trend, every stage for training and debuting artists (casting, training, producing, and

album production) is efficiently processed under this system.

Special producer’s

evaluation and

selection of would-

be artists

Various training

activities (Dance, Vocal,

Stage) for improving

artists’ abilities

Music production

specialized for artists’ styles

Includes composing lyrics,

arranging, mixing &

mastering

Establishing the special

concepts for each artist

Dance Production,

Supporting filming MVs

Artist Debut

Acting as a proxy in

advertising and marketing

afterward

01 03 04 0502

CASTING TRAINING PRODUCTION (MV, 안무,

의상)

DEBUTPRODUCING

Main Business ①-1 OEM Artist & Music Production (B2B)

Development of music and artist with the request of agencies (Domestic/Overseas)

RBW offers customized production agency services that fit the conditions and needs of customers, from artist casting,

training, music producing, and style consulting to album production. With the production agency service, clients can

minimize the cost for human and material resources to establish an entertainment company. In addition, the possibility of

success in producing artists gets bigger by applying RBW’s effective training system.

LYN

TRAINING,

MUSIC

- PRODUCING,

PRODUCTION

SEVENSENSE

TRAINING,

MUSIC

- PRODUCING

S.I.N.G

TRAINING,

MUSIC

- PRODUCING

XL

TRAINING

Stage남단

TRAINING

FRIDAY

TRAINING

S4S.O.S

CASTING,

TRAINING,

MUSIC

- PRODUCTION

SHU-I

MUSIC - PRODUCTION

CODE-V

CASTING,

TRAINING,

MUSIC

- PRODUCING

TUNG LEE LIME

CASTING,

TRAINING,

MUSIC

- PRODUCTION

CASTING,

TRAINING,

MUSIC

- PRODUCTION

CASTING,

TRAINING,

MUSIC

- PRODUCTION

KELVIN KHANH

TRAINING

PRODUCING

NOO PHUOC THINH

TRAINING

CHI PU

TRAINING

OEM Artists and Music Productions (Oversea)

Process of OEM Artist Production

Requesting Production Scheduling

Designating the staff and producers

Setting the scope of business and

estimating

Sending the weekly and

monthly reports

Progress of production

Artist Debut

Page 7: Teaser Memorandum - KOTRA(大韓貿易投資振興公社)Private & Confidential 5 Business Introduction RBW Artist Incubating System / RAISe ‘RBW Artists Incubating System (RAISe)’

Private & ConfidentialBusiness Introduction

Main Business ①-2 OEM Artist & Music Production (B2B)

OEM Artists Production (Domestic)

Nam Gyuri & KyulA Man and Woman’s First

Meeting

WheesungMasterpiece of You

BrianPretty Woman (Feat.

Mario)

YeonjiWoman’s Age about

30

Standing EggLean On Me

(Feat. Park Se Young)

Lee JungTomorrow Without

You

PhantomPhantom City

Park Se YoungShall we dance

G.NA, SanchezBeautiful Day

Park Shin HyeMy Dear

SoulstarRainy Street

Crayon Pop (SoYul)Y-Shirt

Cosmic GirlDon't you worry 'bout me (feat. San-

E)

Louie(Geeks), Lee Hyun Woo

Your Face

Tiny-G

Training

GnGProduction

Geeks

Agent

HOW Ent, GrandlineEnt.

VIXX-LEO

Casting, Training

Jellyfish Ent

GAVY N J

Casting, Training

KW Ent,Good FellasEnt

OEM Music Production (Domestic)

Main Business - ② Exclusive Artist Planning & ProductionMAMAMOO

With accumulated experiences in artist & music production, RBW handles planning, PR and management of artists under exclusive contracts.

MAMAMOO is a girl group composed of 4

members, Solar, Moonbyul, Wheein and Hwasa.

Rookie of the Year’ Award, Seoul Success Awards

(2014)

‘Rookie of the Year (Girl Group) ’, the 4th Gaon Chart

K-POP Awards (2014)

Selected as ‘Top 5 Remarkable Super Rookies’ by

Billboard (2015)

8 First-Place trophies on music programs with

‘You’re The Best’ (2016)

Top 10 on 2016 Melon Music Award

‘Best Entertainer’ on 2016 Asia Artists Awards

Don’t Be Happy

2014.01.09Don’t Be Happy

Peppermint Chocolate(Feat. Whee Sung)

2014.02.11Peppermint Chocolate

Hi Hi Ha He Ho2014.05.30

Hi Hi Ha He Ho

Mr. Ambiguous2014.06.18

HELLO

Love Lane2014.07.18

Marriage Not Dating OSTPart 2

This Song2014.09.18

My Lovely Girl OST Part 1

Piano Man2014.11.21Piano Man

AHH OOP!2015.04.02AHH OOP!

SOLAR GAMSUNG Part.1

2015.10.23Lived Like a Fool

SOLAR GAMSUNG Part.2

2015.12.11Only Longing

Grows

Melting2016.02.26You’re The

Best

LG G5 & Friends OST2016.04.04Woo Hoo

SOLAR GAMSUNG Part.32016.07.12

In My Dream

MEMORY2016.11.07

Decalcomanie

6

Page 8: Teaser Memorandum - KOTRA(大韓貿易投資振興公社)Private & Confidential 5 Business Introduction RBW Artist Incubating System / RAISe ‘RBW Artists Incubating System (RAISe)’

The One – Miracle in 7 Days

- Country of Production : Vietnam, South Korea

- Broadcasting Station : Naver Xin Chao V- KHANH KHANH SHOW: one of the most

famous programs for teenagers in Vietnam. Kelvin Khanh and Duy Khanh are the hosts.

- Hat theo yeu cau: an innovative music program that suggests a slogan, “you order, we sing”

KHANH KHANH SHOW, Hat theo yeu cau

Private & ConfidentialBusiness Introduction

Main Business - ③ Overseas Broadcasting Program Planning & Production

Overseas Broadcasting Program Planning and Co-Production

RBW has developed the format of a ‘Reality Music Game Show (Format name: Re:Birth)’ containing the artist incubating

system of selecting and training foreign pre-artists, with multi-location shooting in Korea and overseas. Starting with

Indonesia, the program also has been planned, produced and aired in Vietnam. Season 2 of Vietnam and a new program in

China is in the stage of planning.

- Country of Production: Indonesia, Korea- Main Sponsor: Samsung Electronics- Broadcasting Station: Indosiar- Broadcasting Period: 2012.2.19~2012.7.1 (20Episodes) ※ Sunday Prime Time 20:00 ~ 21:00, Total of 22 Episodes

GALAXY SUPERSTAR

<Program Logo and Picture of Audition Spots>

No.1 in Ratings

- Country of Production: Vietnam, Korea- Main Sponsor: Lotte Group- Broadcasting Station: VTV3- Broadcasting Period: 2014.3.15 ~ 2014.7.1 (20 Episodes)※ Saturday Prime Time 20:00 ~ 21:00, Total of 20 Episodes

VK-POP SUPERSTAR

<Ho Chi Minh City, Hanoi – Auditions>

No.1 in Ratings

Main Business - ③ Overseas Broadcasting Program Planning & Production

- Country of Production : China, South Korea- Broadcasting Station : SOHU TV- The program that a famous singer ‘The

One’ trains normal people in 7 days

With various skills and techniques while producing the contents for domestic/international artists, RBW headquarter solely

invested and established foreign investment corporation, the special office, and broadcasting studio in Ho Chi Minh, Vietnam.

RBW Vietnam office acts as a proxy in producing NAVER V App contents. As a result, over one hundred thousand people have

watched our exclusive program “KHANH KHANH SHOW”. Also, the first episode of “Hat theo yeu cau” has been viewed by over

thirty thousand viewers.

PhotosAvailable

later

Photos available

later

7

Page 9: Teaser Memorandum - KOTRA(大韓貿易投資振興公社)Private & Confidential 5 Business Introduction RBW Artist Incubating System / RAISe ‘RBW Artists Incubating System (RAISe)’

Private & ConfidentialBusiness Introduction

Main Business - ③ Overseas Broadcasting Program - New Format Production

Overseas Broadcasting Program - New Format “RE:BIRTH PROJECT” (CHINA / THAILAND)

Asia’s first ever, new concept entertainment-music show!Project to produce a global top starBrand new format, a guarantee for high ratings and issue-makingBirth of the best idol group is approaching

12 pre-stars are divided into the ‘debut group’ and‘second group‘. A fierce competition to remain as adebut group takes place every week!

The 12 participants pair up with top stars of eachcountry and acquire stage items throughentertainment games. Afterwards, with collaborationmissions using the items, the best music stages begin.

A program that contains every aspect from a wholenew fun, the best music stages, collaboration with topstars to the tears and laughter of a reality show.

Intention of Planning

Title RE:BIRTH PROJECT

Genre Reality Music Game Show

Duration Weekly, Prime Time

Episode 14 times

New format of ‘Music + Entertainment’

New format of ‘Music + Entertainment’

Support of Top Producers

& Debut Stage

Support of Top Producers

& Debut Stage

Multi-location,Exchange of Culture

Multi-location,Exchange of Culture

Collaboration with top stars,

High ratings guaranteed

Collaboration with top stars,

High ratings guaranteed

Reality Music Game ShowReality Music Game Show

Program Features

Performance, Event Planning & Production

Based on experiences of artist and music production, RBW provides the client a customized ‘performance and event planning & production’. With top producing personnel and professionals of Korea, we have accumulated experiences in producing broadcasting programs and exclusive artists. RBW would be able to satisfy clients by offering effective online events and performance planning & production with a wide range of experiences.

Cases in KoreaCases in KoreaConcerts & Fan meetings of Korean/Foreign Artists

Various Corporate Events

Exhibitions Local/College Festivals

Cases OverseasCases OverseasT-ARA’s Fan meeting in Vietnam (2016)

BTS’s Performance in Vietnam (2016)

Basick’s Performance in Vietnam (2016)

4MINUTE’s Performance in Indonesia (2012)

Main Business - ④ Performance, Event Planning & Production

8

Page 10: Teaser Memorandum - KOTRA(大韓貿易投資振興公社)Private & Confidential 5 Business Introduction RBW Artist Incubating System / RAISe ‘RBW Artists Incubating System (RAISe)’

Private & ConfidentialBusiness Introduction

9

Skillful Instructor groups and RBW’s unique training techniques

Main Business ⑤ K-POP Educational Training Program _Dream Withus(B2C)

< Analysis > < Recording Training >

< Artist Lecture >

< Producer Lecture >

< Dance Training >

< Style Consulting >

< Stage Training > < MIDI Lecture >

< Vocal Training >

< Lyrics Lecture >

< Tour> < Performance>

This program is held in RBW Global Training Center (2,312㎡) with one-week course. Participants can experience high-quality and professional training programs with skillful K-POP producers, directors, and instructors. Also, outstanding participants will have an opportunity to have RBW audition. Stage videos will be edited and provided to all participants. In addition, special tour during the schedule will fully satisfy the participants by experiencing fantastic moment in various places of South Korea.

K-POP Educational Training Program “Dream Withus”

“Dream Withus” is an unique program of RBW for people who visit South Korea and who have a dream to become singers, dancers, and entertainers. The program offers a valuable chance to experience the process of becoming K-POP artists from casting to debut.

Skillful and competent

instructors who have

trained several famous K-POP

artists

Curriculum and practicing places

are same as artists’

‘Dream Withus’ with international

members in

same dream

Dream

With

Us

<Taiwan Participants>

<VietnamParticipants>

<China Participants>

<USA Participants><Dream Withus 3 Keywords>

Main Business ⑤ K-POP Educational Training Program _Dream Withus(B2C)

Page 11: Teaser Memorandum - KOTRA(大韓貿易投資振興公社)Private & Confidential 5 Business Introduction RBW Artist Incubating System / RAISe ‘RBW Artists Incubating System (RAISe)’

Private & ConfidentialBusiness Introduction

10

RBW Core Competencies

RBW’s 4 Core Competencies

To make an artist’s talent shine more brightly

RBW Artist Incubating System

A systemized artist training program

and casting network based on years

of OEM/ODM production of

Korean/foreign artists

RBW operates an integrated artist

training program including vocal,

dance, styling, stage performance and

language skills.

Best infrastructure, a foundation of growth for talents

RBW Global Training Center

The global training center(2,314 m2)

contains facilities needed from

recording studios, dance training

rooms, ensemble room, fitness room

to dormitories for effective

production of Korean/foreign artists.

In addition, producers, scriptwriter,

director, trainer and A&R experts are

available at all times.

In-house top producers, monopoly of copyright for hit songs

RBW Music Producing System

We operate an effective non-stop

producing system(planning,

development, production) with top

in-house producers including Kim

Do Hoon, Chief Executive Producer.

With songwriters of famous K-POP

songs for CNBLUE, Baek Ji Young,

Ailee, Wheesung etc. affiliated with

the company, the right to use the

songs is secured in advance.

Wide range of K-POP star-casting abilities

RBW Agency Network

RBW has established a wide network

with various artists/agencies in Korea

and overseas through projects and

collaborations.

Casting of judges, mentors and guest

appearances of K-POP stars essential

for an audition program is easier with

RBW. Also, we possess a pool of

composers, arrangers and musicians

who guarantee the quality of music in

broadcasting programs.

Page 12: Teaser Memorandum - KOTRA(大韓貿易投資振興公社)Private & Confidential 5 Business Introduction RBW Artist Incubating System / RAISe ‘RBW Artists Incubating System (RAISe)’

Private & ConfidentialLicense

11

License

No. Category Description

40-2015-0087912 Trademark Registration ‘MAMAMOO’ Light Stick and Related Products (Code 28)

40-2015-0087913 Trademark Registration MAMAMOO Light Stick and Related Products (Code 28)

40-2015-0087916 Trademark Registration MAMAMOO (Logo) Light Stick and Related Products (Code 28)

40-2015-0075779 Trademark Registration ‘MAMAMOO’ Cosmetics and Related Products (Code 3)

40-2015-0075834 Trademark Registration MAMAMOO (Logo) Cosmetics and Related Products (Code 3)

40-2015-0075835 Trademark Registration MAMAMOO (Logo) Glasses and Related Products (Code 9)

40-2015-0075838 Trademark Registration MAMAMOO (Logo) Stationary and Related Products (Code 16)

40-2015-0075840 Trademark Registration MAMAMOO (Logo) Bag and Related Products (Code 18)

40-2015-0075850 Trademark Registration MAMAMOO (Logo) Clothes and Related Products (Code 25)

40-2015-0075842 Trademark Registration MAMAMOO (Logo) Head Accessories and Related Products (Code 26)

40-2015-0075837 Trademark Registration MAMAMOO (Logo) Jewelry Accessories and Related Products (Code 14)

40-2015-0075830 Trademark Registration MAMAMOO Head Accessories and Related Products (Code 26)

40-2015-0075828 Trademark Registration MAMAMOO Clothes and Related Products (Code 25)

40-2015-0075826 Trademark Registration MAMAMOO Bag and Related Products (Code 18)

40-2015-0075825 Trademark Registration MAMAMOO Stationary and Related Products (Code 16)

40-2015-0075823 Trademark Registration MAMAMOO Jewelry Accessories and Related Products (Code 14)

40-2015-0075804 Trademark Registration MAMAMOO Glasses and Related Products (Code 09)

40-2015-0075801 Trademark Registration MAMAMOO Cosmetics and Related Products (Code 03)

40-2015-0075799 Trademark Registration ‘MAMAMOO’ Head Accessories and Related Products (Code 26)

40-2015-0075795 Trademark Registration ‘MAMAMOO’ Clothes and Related Products (Code 25)

40-2015-0075793 Trademark Registration ‘MAMAMOO’ Bag and Related Products (Code 18))

40-2015-0075789 Trademark Registration ‘MAMAMOO’ Stationary and Related Products (Code 16)

40-2015-0075784 Trademark Registration ‘MAMAMOO’ Jewelry Accessories and Related Products (Code 14)

40-2015-0075782 Trademark Registration ‘MAMAMOO’ Glasses and Related Products (Code 09)

41-2015-0049069 Trademark Registration MAMAMOO Performance Rights and Related Products (Code 41)

41-2015-0049068 Trademark Registration MAMAMOO Cosmetics Wholesale Business and Related Products (Code 35)

41-2015-0049055 Trademark Registration ‘MAMAMOO’ Performance Rights and Related Products (Code 41)

41-2015-0049072 Trademark Registration MAMAMOO (Logo) Cosmetics Wholesale Business and Related Products (Code 35)

41-2015-0049084 Trademark Registration MAMAMOO (Logo) Performance Rights and Related Products (Code 41)

41-2015-0049054 Trademark Registration ‘MAMAMOO’ Cosmetics Wholesale Business and Related Products (Code 35)

Technological Differentiation – Exclusive Right of contents (Artists, Music) and related patents and trademarksPatent – 12 Patent Application total and 7 Registered Patent total in the company

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Private & ConfidentialCapacity

Capacity

Korea Headquarter Office: located in Dongdaemun-gu, Seoul (2,312㎡). Includes training center, office, recording studioVietnam Branch Office: Established in Thành phố Hồ Chí Minh on March 2016. Provides various broadcasting/music/performance/concert contents via NAVER V App

12

< Main Entrance > < Interior > < Office Area > < Styling Room >

< Recording Studio 1 >< Recording Studio 2 > < Dance Practice Room >< Producer’s Studio >

< Conference Room >

<Individual Practice Rooms>

< Cafe >< Performance Stage > < Recording Studio >< Studio > < Dance Practice Room>

B1

1F

<Korea Headquarter Office>

<Vietnam Branch Office>

< Company View >

Page 14: Teaser Memorandum - KOTRA(大韓貿易投資振興公社)Private & Confidential 5 Business Introduction RBW Artist Incubating System / RAISe ‘RBW Artists Incubating System (RAISe)’

Private & ConfidentialMarket

Production of OEM Artists & Contents: Even though there were several cases of K-POP artists’ global expansion, it is hard to find the similar business to RBW’s unique OEM artist & content production system in the global market. It is highly expected that RBW can develop and advance their businesses globally (China, Indonesia, Vietnam) and earn nearly 5~10 billion won per year.Many K-POP producers (composers and lyricists) have recently worked in J-POP market. Many contents can be provided to the market by utilizing RBW's unique content producing system. It is highly expected that our company's technologies and know-hows would be helpful for developing the related business (Artist casting, training, music and album production) and exporting the contents or systems to other markets.

The popularity of the business item: The music market of Japan is very similar to K-POP market; many idol groups are being debuted and trained in both markets. It is expected that the similarity of both markets would be helpful for minimizing costs (Time, money) of the business.

Markets

Localization strategies

Characteristics of the local market and various

strategies

RBWOEM

SYSTEM

The most outstanding producing team in South Korea.

RBW's unique and exclusive artist incubating system from

casting to debut

excellent contents of

J-POP market

Ability to develop and expand the business by utilizing the

advantages of the leading company

13

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Private & ConfidentialFinancial Figures

Categories2013

Unaudited

2014

Unaudited

2015

Audited

Sales 825 2,231 5,248

Sales Cost - - -

(The rate of Sales Cost) - - -

Gross Margin 825 2,231 5,248

Selling and Administrative Expenses

631 2,104 4,515

depreciation cost 0 0 0

Operating Profit 194 126 733

The Rate of Operating Profits (%)

23.5% 5.6% 14%

Net Profit During the Term 170 181 424

R&D 0 71 110

R&D compared to Sales (%) 0% 3.2% 2.1%

EBITDA 194 126 969

Total Capital 353 2,391 10,199

Total Liabilities 133 1,734 1,980

Net Property 220 657 8220

Debt Ratio 60.7% 246.5% 24.1%

(million won)

Total sales of 10.6 billion won in 2016 (Audited): Total sales of 2015 is 1.7 billion won, which were a 100% rise from 2014’s total sales. The stable growth of total sales and net profit during the term: the net profit and total sales has been increased from 2013 to 2016.Diversification of sales: Different from other entertainment companies that focus on their artists, big part of sales of RBW, Inc. comes from various businesses including OEM/ODM content & artist production, educational business, and broadcasting production.

14

Financial Records in the last three years