NAVER : 3Q 2021 NAVER Review Report

NAVER Corporation and Subsidiaries

Consolidated Interim Financial Statements

September 30, 2021 and 2020 (Unaudited), and December 31, 2020

NAVER Corporation and Subsidiaries

Index

September 30, 2021 and 2020 (Unaudited), and December 31, 2020

Page(s)

Report on Review of Interim Financial Statements ··················································	1 - 2
Consolidated Interim Financial Statements
Consolidated Interim Statements of Financial Position ···················································	3
Consolidated Interim Statements of Comprehensive Income···········································	4
Consolidated Interim Statements of Changes in Equity ··················································	5
Consolidated Interim Statements of Cash Flows···························································	6
Notes to the Consolidated Interim Financial Statements·················································	7 - 57

Report on Review of Interim Financial Statements

(English Translation of a Report Originally Issued in Korean)

To the Shareholders and Board of Directors of

NAVER Corporation

Reviewed Financial Statements

We have reviewed the accompanying consolidated interim financial statements of NAVER Corporation and its subsidiaries (collectively referred to as the "Group"). These financial statements consist of the consolidated interim statement of financial position of the Group as at September 30, 2021, and the related consolidated interim statements of comprehensive income for the three-month and nine-month periods ended September 30, 2021 and 2020, and consolidated interim statements of changes in equity and cash flows for the nine-month periods ended September 30, 2021 and 2020, and a summary of significant accounting policies and other explanatory notes, expressed in Korean won.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated interim financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS) 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to issue a report on these consolidated interim financial statements based on our review.

We conducted our review in accordance with quarterly or semi-annual review standards established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe the accompanying consolidated interim financial statements are not presented fairly, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.

Other Matters

We have audited the consolidated statement of financial position of the Group as at December 31, 2020, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, in accordance with Korean Standards on Auditing. We expressed an unqualified opinion on those financial statements, not presented herein, in our audit report dated March 5, 2021. The consolidated statement of financial position as at December 31, 2020, presented herein for comparative purposes, is consistent, in all material respects, with the above audited statement of financial position as at December 31, 2020.

Review standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to review such financial statements may differ from those generally accepted and applied in other countries.

November 12, 2021

Seoul, Korea

This report is effective as at November 12, 2021, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying consolidated interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that there is a possibility that the above review report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

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NAVER Corporation and Subsidiaries

Consolidated Interim Statements of Financial Position

September 30, 2021 and December 31, 2020

(in Korean won)	Notes	September 30, 2021		December 31, 2020
		(Unaudited)
Assets
Current assets
Cash and cash equivalents	₩	1,816,042,748,969	₩	1,600,304,349,922
Short-term financial instruments		486,178,789,311		291,292,142,737
Financial assets at fair value - profit or loss	4	1,022,763,634,570		922,939,095,062
Trade and other receivables		1,354,474,964,045		986,826,023,076
Inventories		4,555,889,352		4,344,942,323
Current tax asset		5,402,721,698		996,472,888
Other current assets		115,942,830,256		77,702,716,446
Assets held for sale	19	-		6,660,253,457,865
		4,805,361,578,201		10,544,659,200,319
Non-current assets
Property and equipment	6	2,081,500,382,298		1,684,563,340,866
Right-of-use assets	7	200,163,160,778		129,537,198,819
Intangible assets	8	898,336,386,259		105,136,186,861
Long-term financial instruments		14,255,722,000		14,255,722,000
Financial assets at fair value - profit or loss	4	2,245,080,776,746		1,801,384,240,769
Trade and other receivables		27,974,641,793		28,578,223,832
Financial assets at fair value - other comprehensive income	4	2,117,525,280,520		1,330,951,990,243
Investments in associates and joint ventures	9	20,393,105,899,580		1,199,425,686,734
Deferred tax assets		126,329,829,492		108,572,845,624
Other non-current assets		51,244,769,816		67,174,027,703
		28,155,516,849,282		6,469,579,463,451
Total assets	₩	32,960,878,427,483	₩	17,014,238,663,770
Liabilities
Current liabilities
Trade and other payables	₩	906,850,443,776	₩	689,280,186,019
Financial liabilities at fair value - profit or loss	4	-		17,137,640,886
Short-term borrowings	10	769,739,514,820		576,223,326,575
Current tax payables		320,629,493,824		384,340,634,677
Provisions	12	5,432,736,118		31,708,383,889
Current lease liabilities	7	79,821,512,753		53,345,709,463
Other current liabilities		1,785,459,674,738		1,484,474,330,127
Liabilities held for sale	19	-		4,675,241,280,695
		3,867,933,376,029		7,911,751,492,331
Non-current liabilities
Trade and other payables		115,972,025,584		68,448,327,272
Financial liabilities at fair value - profit or loss	4	96,661,822,089		7,962,264,800
Long-term borrowings	10	1,131,031,800,839		150,678,259,061
Debentures	10	1,635,662,775,494		-
Net defined benefit liabilities	11	517,935,957,809		462,094,245,426
Provisions	12	8,875,798,379		9,186,175,870
Non-current lease liabilities	7	135,265,770,208		92,170,749,140
Deferred tax liabilities		1,245,262,566,940		56,519,491,022
Other non-current liabilities		448,655,338		295,623,635
		4,887,117,172,680		847,355,136,226
Total liabilities		8,755,050,548,709		8,759,106,628,557
Equity
Equity attributable to owners of the Parent Company
Share capital	13	16,481,339,500		16,481,339,500
Share premium	13	1,534,391,543,373		1,793,273,489,872
Other components of equity		(595,810,729,835)		(1,059,479,508,530)
Accumulated other comprehensive loss relating to assets held for sale		-		(37,870,641,018)
Retained earnings		22,780,173,642,883		6,654,814,483,478
		23,735,235,795,921		7,367,219,163,302
Non-controlling interest		470,592,082,853		887,912,871,911
Total equity		24,205,827,878,774		8,255,132,035,213
Total liabilities and equity	₩	32,960,878,427,483	₩	17,014,238,663,770

The above consolidated interim statements of financial position should be read in conjunction with the accompanying notes.

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