CJ HelloVision : 1Q 2017 Earnings Release

1Q17 Earnings Results‌‌‌‌‌‌ Apr 27, 2017The financial information in this document are earnings results based on K-IFRS. This document is provided for the convenience of investors only, before our external audit on 1Q 2017 is completed .The audit outcomes may cause some parts of this document to change. This document may contain "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. These uncertainties may cause our actual results to be materially different from those expressed in1

this document.

• CATV subscribers expanded by 30k QoQ elevating the total subscriber number to 4.15mn
• Aggressive digitization effort led to another 43k subscribers QoQ, escalating the total number to 2.69mn
• MVNO added 12k subscribers during 1Q posting 865k subscribers while LTE portion climbed to 52%

• ▣ CATV Subscribers ▣ Digital TV Subscribers ▣ MVNO Subscribers & LTE % QoQ +30k QoQ +43kMVNO LTE (%)50% 52% YoY +52k4.104.124.15 YoY +121k 2.65 2.69 41% YoY +34k 853 QoQ +12k 865 2.57(Mn) (Mn)831(Thousand)1Q16 4Q16 1Q17 1Q16 4Q16 1Q17 1Q16 4Q16 1Q17

(Unit: Subscriber, %)	2015				2016				2017
	1Q15	2Q15	3Q15	4Q15	1Q16	2Q16	3Q16	4Q16	1Q17
Cable TV	4,117,279	4,104,932	4,103,495	4,102,128	4,097,771	4,096,150	4,096,693	4,119,228	4,149,715
- Analog	1,619,199	1,586,308	1,571,136	1,549,214	1,530,718	1,515,180	1,495,261	1,473,942	1,461,341
- Digital	2,498,080	2,518,624	2,532,359	2,552,914	2,567,053	2,580,970	2,601,432	2,645,286	2,688,374
- Digital Penetration rate	61%	61%	62%	62%	63%	63%	64%	64%	65%
Internet	901,510	887,409	872,796	860,253	850,214	837,230	827,136	825,331	829,632
VoIP	729,437	713,193	693,485	673,167	654,395	634,263	616,210	598,919	583,762
MVNO	856,647	881,449	853,283	843,350	830,987	824,723	823,913	853,254	865,354
- LTE	270,126	302,185	303,347	328,295	343,660	358,385	376,896	423,410	448,802

• 2

• Digital TV ARPU dropped by 1.5% QoQ but meaningfully slowed down signaling for rebound
• MVNO ARPU fell by 1.1% QoQ strategically offering price competitive plans in return for subscriber expansion
• On-going strategic move to beef up scriber base continued into 1Q17 at a cost of slight ARPU drop

• ▣ Digital TV ARPU ▣ MVNO ARPU(KRW)10,521 10,270 10,121(KRW)21,650 21,92721,691-3.8% YoY -1.5% QoQ +0.2% YoY -1.1% QoQ 1Q16 4Q16 1Q17 1Q16 4Q16 1Q17

(Unit: KRW, %)	2015				2016				2017
	1Q15	2Q15	3Q15	4Q15	1Q16	2Q16	3Q16	4Q16	1Q17
Cable TV	8,236	8,262	8,458	8,299	8,013	7,937	8,029	7,854	7,771
- Analog	4,012	3,893	3,716	3,529	3,399	3,290	3,202	3,100	3,016
- Digital	10,737	10,787	11,150	10,948	10,521	10,417	10,558	10,270	10,121
Internet	11,899	11,869	11,834	11,786	11,704	11,639	11,635	11,551	11,375
VoIP	6,693	6,734	6,396	6,304	5,886	5,662	5,691	5,801	5,963
MVNO	19,079	19,507	21,142	21,457	21,650	22,234	22,026	21,927	21,691

• 3

• Revenue increased by 5.2% QoQ due to previous quarter's base effect and posted W275.2bn
• D-TV revenue remained flat QoQ posting W828bn but VOD revenue picked up by 4.5% QoQ posting W185bn
• MVNO revenue stretched by 4.5% QoQ enhanced by better quality mix within subscribers

▣ Revenue ▣ Digital TV ▣ VOD ▣ MVNO

262 275 83 83 19 18 70 67 +5.2% QoQ(KRW bn)-0.1% QoQ +4.5%QoQ+4.5%QoQ 4Q16 1Q17 4Q16 1Q17 4Q16 1Q17 4Q16 1Q17

(Unit: KRW bn)		1Q16	4Q16	1Q17
Revenue		278.6	261.5	275.2
TV	Analog	14.8	13.0	12.9
Digital	82.6	82.9	82.8
VOD	19.1	17.7	18.5
Internet&phone	Internet	31.2	29.3	28.8
VoIP	11.4	10.3	10.3
Advertising	Homeshopping	59.6	39.8	57.0
Local Adv.	7.8	10.8	6.5
Adjacent businesses	MVNO	66.1	66.7	69.7
Service	54.2	55.4	55.8
Handset	12.0	11.2	13.8
Miscellaneous		5.0	8.8	7.2

QoQ (%)	YoY (%)
5.2%	-1.2%
-0.8%	-12.9%
-0.1%	0.2%
4.5%	-2.9%
-1.6%	-7.6%
0.0%	-10.1%
43.3%	-4.3%
-39.4%	-15.9%
4.5%	5.3%
0.7%	3.1%
23.0%	15.4%
-18.7%	43.4%

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