GIfticon Business Launch in Japan

1. September 25, 2013
Strictly Confidential
Gifticon Business Launch
In Japan

2. After CEO report on Gifticon launch in Japan, working group has been developing
GTM strategy and having discussions with key external parties
Progress Summary
CEO Japan Visit
Aligned to proceed GTM
Strategy & team set-up
7/16
1st CEO Report
Aligned to proceed
feasibility check
7/11
Jun ’13 Jul ’13 Aug ’13 Sep ’13 Oct ’13 ~
MGMT
Japan Visit
Interim Review
9/3
2nd CEO Report
GTM Strategy &
Next Steps
9/25
3rd CEO Report
Progress
GTM Plans
End Nov.
Key Reports & Meetings
Key
Reports
Key
Meetings
1) Partners
- McDonald
- Family Mart
- LAWSON
- Doutor
1) Partners
- KFC
1) Partners
- Family Mart
2) Dev./ Infra Agencies
- Active Works
- Optima
- Isana
- General Pacific
- AWS
3) PG Agencies
- SB Payment
- GMO
1) Partners
- Starbucks
2) POC
- mixi
- Line (9/26)
3) Dev./ Infra Agencies
- Optima
- Isana
Plan to meet
key brands &
POCs based on
GTM strategy
after making
decisions today

3. Although Most Brands are interested in Gifticon concept, hard to proceed further
discussion without detailed plans including launch timing, investment size, etc.
Progress Summary Key Reports & Meetings
Although we want to play as single
brand, we still open to partnership if
consumers want. We want to see
more solid and detailed plans
including conditions, product
development plan, launch timing, etc.
Also welcome to visit Korea to see
real cases if you invite.
STARBUCKS
We think this could be an interesting
marketing tool and are testing similar
concept with Kakao talk. If it only
takes 2 months for POS linkage, I
think we can discuss at that point.
LAWSON
We are planning to develop new
concept of mobile marketing tool and
to change current system. If we go into
the business, Gifticon can be partner
candidate. Hope discuss with more
detailed plans then.
FAMILY MART
I do not think Gfiticon business fits our
current POS system and business
model. When we upgrade POS and
others are doing this, we may consider.
DOUTOR
Our current POS does not support
Gifticon. Also, I think we can discuss
further when Korea McDonald’s do
Gifticon.
McDonald’s
We know this concept and are
interested in. Also, we are running
test trials in a few stores with SB Gift.
Still POS is concern and we can
discuss further if you can provide
more detailed plans.
KFC

4. 4/40
Contents
 Appendix
1. Recap & Updates from the Previous Meeting
2. Go-to-Market Strategy (WHO/ WHAT/ HOW)
3. Summary & Next Steps (Work Schedule)

5. 5/40
1. Recap & Updates
With fast growing smart phone penetration and comparison to KR market, mobile
commerce market and buying power of JP consumers are considered fully sizable to
play in
Market Dynamics
10
28
43
60
73
83
90
9%
25%
37%
50%
61%
68% 72%
Mar'11 Mar'12 Mar'13e Mar'14e Mar'15e Mar'16e Mar'17e
User M
Penetration Rate
CAGR (’13~‘17) = 20.2%
JP Smart Phone User Growth2)
Mar
11
Mar
12
Mar
13
Mar
14e
Mar
15e
Mar
16e
Mar
17e
1) Nomura Research Institute, Nov 2012/ 2) TCA, Mar 2013 / 3) Strategy Analytics 2012 & eMarketer/
4) Dongyang Securities Research Center, 2011/ eMarketer, Feb 2013/
5) Nomura Research Institute, 2012/ Online Shopping Association 2012/ eMarketer 2012
Mar'11 Mar'12 Mar'13 Mar'14 Mar'15
Stats 10% 25% 37% 50% 60%
Indus. (F) 50% ('13) 60~70%
KR 38% 60% 73% 81% 83%
JP
244
298
349
396
438
476 509
11 12 13e 14e 15e 16e 17e
CAGR (‘13~‘17) = 9.8%
O2O Market Growth1)
(Unit: $ bn)
Stud.
F M F M F M F M F M Univ
End'12 57% 52% 67% 57% 38% 52% 27% 41% 21% 30% 60%
Indus.(F)'13 80%70% 80% 60% 40% 30%
10s 20s 30s 40s 50s
17
21
26
32
38
44
50
11 12 13e 14e 15e 16e 17e
Related Market Size & Key Features
Comparison to KR market3)
Mobile Commerce Market1)
(Unit: $ bn)
CAGR (‘13~’17) = 17.8%
JP KR
Mobile Subscribers 11M 5.3M
M-Contents Market $10 bn $1 bn
Spending (1yr, /person) $80 $15
Mobile Contents Buying Power('11)4)
Comparison to KR Market(‘12)5)
'12 '15 '12 '15
JP $110 bn $145 bn $22bn $40bn
KR $37bn N/A $1.7bn $2.5bn
USD
$2000 (/ person)
$1000 (/person)
eCommerce mCommerce Yearly Spendng
('12, eCommerce)
Total Mobile
Rakuten $16bn $3.5n
11st $4.9bn $0.28bn
Mobile portion
GMV
21.9%
5.7%
'12
Rakuten vs. 11st (‘12)5)
$3.5bn

6. 6/40
1. Recap & Updates
There are many new players who are planning into casual/ social gifting market and
trials repositioning/strengthening while existing players will make market more active
Player Dynamics
Competition Landscape
• SB Gift is trying to expand it s biz model
into casual gifting with mobile voucher
- Currently focusing API sharing & gift delivery
service but expand its BM through
partnerships with casual brands such as
MOS burger & KFC
• Currently figured out one player is coming
but got information more are preparing to
come
- mixi (SNS portal) is preparing to jump in the
social gifting market at end of 2013 or 1Q
2014
Recent Dynamics
Without a current dominant player,
competition for market leadership
is expected to be increased
at least around 1Q ~early 2Q ‘14
MultiSingle
Brands(Partners)
Mobile VoucherDelivery
Service Format
New Start-ups
Revitalization
BM Evolution
• Renewal of Giftee
- Failed initial market penetration
- Renewed web/ mobile UI/ UX and started
trying to have big partners such as Family
Mart
Expand to Mobile • Off-line retailers expand their biz. Into
Mobile
- Starbucks is preparing to launch gifting
voucher biz around 1Q 2014
- Family Mart is considering to join the market
NewEntrance(Planning)StrengtheningPosition

7. 7/40
1. Recap & Updates
Now is the right time to develop the product and prepare to enter the market at
1Q~early 2Q 2014 and if delayed we can lose the market opportunity
Window of Opportunity
Market Aspect Eco-system Aspect Competition Aspect
Late entrance into the market means giving up first mover benefit & entry barrier, and
higher cost for acquiring partners (Brands) and POCs as well as setting trend
• No dominant player
- Currently there is no dominant
player in the market
- Any player to make consumers
perceive it as first mover may
become a market leader
• Increasing smart phone
penetration
- Fast growing
- Chance to be the first mover
• Payment system
- Simple and easy mobile
payment
• POS upgrades due to
consumption tax changes
- POS upgrade is expected
around Apr ’14 by government
policy on consumption tax
increase
• Opening to new concept of
mobile commerce trends
- Social commerce (groupon, Luxa,
etc.)
- Mobile coupons
• Meaningful spending size
5 times more than Korean users’ in
mobile contents purchase a year
- 2 times bigger than Korean
users’ in eCommerce spending
a year
Improving ecosystems
Low competition yet
but signs for fast growing
Emerging new trends &
meaningful spending size
• Many players are planning to
enter
- Many players from various
industry such as mixi (SNS),
Starbucks (beverage), Family
Mart (Convenience), etc.

8. 8/40
Contents
 Appendix
1. Recap & Updates from the Previous Meeting
2. Go-to-Market Strategy (WHO/ WHAT/ HOW)
3. Summary & Next Steps (Work Schedule)

9. 9/40
2. Go-To-Market Strategy
Overview of key questions of Go-To-Market Strategy & Scope of making decisions and
discussion points today
Key Questions of GTM Strategy
Today, we have 3 agenda
1) Agree on
- WHO (Target) & WHAT
- Starting product/ Infra
development
2) Discuss on HOW part
HOW
HOWto win in the
Japan market?
3
Goal& Projection?
Business Model?
- Fee structure & variables
Brand(Partner)
Strategy?
LocalTeamSetting?
POC Strategy?
Marketing Strategy?
KSF Analysis
WHAT
WHAT is our competitive
product& service?
2




DevelopmentPlan?
- Productdevelopmentplan
- Infrastructure development
plan


Competitive Product&
Service?
- Value Proposition
- Brand Name & Character
- Key Features for Japan
market
Planned Work In Progress(Discussion focus) Pending(done by next report)
WHO
WHO do we need to
focus as first priority?
1
Where to play?
- Gift/ Presentculture
- Potential culture/occasion
segmentfor Gifticon

Who will be our target?
- Prime/ 2nd/3rd target
- Sizable?
Who are they?
- Key characteristics of prime
target
- Implications on WHAT&
HOW



10. 10/40
HOW
HOW to win in the
Japan market?
3
Goal & Projection?
Business Model?
- Fee structure & variables
Brand(Partner)
Strategy?
Local Team Setting?
POC Strategy?
Marketing Strategy?
KSF Analysis
WHAT
WHAT is our competitive
product & service?
2




Development Plan?
- Product development plan
- Infrastructure development
plan


Competitive Product &
Service?
- Value Proposition
- Brand Name & Character
- Key Features for Japan
market
2. Go-To-Market Strategy
Overview of key questions of Go-To-Market Strategy
Key Questions of GTM Strategy
Planned Work In Progress(Discussion focus) Pending(done by next report)
WHO
WHO do we need to
focus as first priority?
1
Where to play?
- Gift/ Present culture
- Potential culture/ occasion
segment for Gifticon

Who will be our target?
- Prime/ 2nd/ 3rd target
- Sizable?
Who are they?
- Key characteristics of prime
target
- Implications on WHAT &
HOW



11. 11/40
2-1. The Who – Where to play Japanese gift culture
In order for Gifticon to succeed in Japanese market, new value proposition is needed
due to the unique cultural/emotional concept of “gift/present” among Japanese.
Japanese concept of “gift/present”
“From the bottom of heart”
Care about what recipient will like
Give & Take
• The most important thing in giving a gift/
present is “the heart” in the gift
• To show respect and heart, nice wrapping and
msg cards are critical
• Giving gifts in person is considered serious &
polite
• Key driver of giving a gift is to please the
recipient
• Whether the recipient will like the gift or not is
the main concern when giving a gift
• Accepting a gift can create a sense of unfulfilled
obligation to repay the favor on the part of the
receiver
Gifticon Service
Sending a barcode (indirect giving)
Gift chosen by sender/ Exchange by recipient
• When sending a gift, Barcode with a product
picture is sent
• No wrapping service, no customized msg card
service
• Sending a gift by mobile, rather giving it in
person
• In most cases, gift is chosen by a sender
• This concept prevents consumers from
considering Gifticon as gifting tool
• Currently not supporting ‘giving & take’ culture
• Since receiver needs to go to the store to get
the gift, it can give the perception of impolite
Price
• Usually the price range of a “gift” is from 2,000
yen to 10,000 yen ($20~$100)
Price
• The price range of Gifticon is usually from 500
yen to 2,000 yen ($5~$20)
Emotional
Barrier
In order to remove the emotional barrier of Japanese users,
the service should be positioned in the another area rather than “gift/present”

12. 12/40
Japanese gift culture
There are some other areas of “gift” in Japan that we should look into to find a new
service concept
Respect and Care
 ギフト(기프토)
 おくりもの
(오쿠리모노)
 おれい
(오레이)
 おかえし
(오카에시)
 てみやげ
(테미야게)
Repay the favor
Sharing experiences
Relationship
care
Cheering up
 おみやげ
(오미야케)
 プレゼント
(프레젠토)
Everyday Life
Light
Anniversary/Special Event
Heavy
おごる(오고루)
Areas of “Gift/ Present” & Quasi-gift
2-1. The Who – Where to play
Inexpensive
To say
Sorry/
Thank you
Feeling
Good
Caring
Someone
Small
treat
Food/
Beverage
Light/
No pressure
おごる
The lighter, everyday concept of “treating”
“おごる”(오고루)

13. 13/40
おごる culture
Japanese also has the culture of “おごる,” which means “쏘다”, and this culture is
where our new value proposition could be placed upon
 The closest concept of “쏘다” (not splitting a bill)
 Buy close people (i.e., friends, colleagues, company
juniors) inexpensive meals or small snacks, to care
the relationships or to lighten up the mood
 At least 1~ at most 3 times a month
 1,000 yen to 5,000 yen ($10~$50) worth of treat
“おごる culture” Key Values from ”おごる”
New Value Proposition
“A convenient and fun way to
show others that you care”
Female
Univ.student
Female worker
in the 30’s
“I often ask my friends if they want any
snacks or dessert. If they say yes, then I buy
the snacks”
“I naturally buy juniors meals at work. My
senior used to buy me meals, so I do it too.
I also feel good when I see their smiles”
Source : Consumer FGD
2-1. The Who – Where to play
Caring
for
others
Impulsive/
Surprise
Feeling Good
Amusement
Thanks/
Even
Burden Free/
Light

14. 14/40
2-1. The Who – Target Definition Target Segmentation
Our main target is female workers between in the 20’s and 30’s
Target Selection
• The Range of social relationship
- Female worker group (26~35) seems to
have the widest range of people they
feel that they should care about,
throughout all of the groups
• Needs to care people
- Workers > Students
• Purchasing power
- Students use their parents’ card and
money to buy things on the internet
since they cannot make a credit card on
their own
- Worker group has more purchasing
power
• Willingness to try the service
- Female > male
- 10’s > 20’s and 30’s
• Interest in Gifticon service
- Female > male
Prime Target Segmentation



• Female worker groups in the late 20’s and the early 30’s show the most interest in the
service
• Although high school/University students show the highest willingness to try the service,
it is hard to take them as our prime target when considering their purchasing power
• The range of social relationship means the number/type of people that the participants
feel like to take care of
Source : Consumer FGD/Online Survey

20’s~30’s Female Worker

M F M F M F M F M F
★ ★★
Interest in Gifticon ★★ ★★ ★ ★★ ★ ★★★
★★★
17~25 yr old 26~29 30~35
Worker
36~39 40~45
★★★ ★★★ ★
Needs to care people ★ ★
Student
★★ ★★ ★★ ★★★ ★★
★★ ★★★ ★★ ★★★
★★★Purchasing power
Willingness to use ★★★ ★★★ ★ ★★
★ ★ ★★ ★★ ★★★
★★ ★★★ ★★★ ★★★
The Range of
relationship to care
★ ★ ★ ★
★★★
★ ★★ ★ ★★
★★★ ★★★ ★★★
Target Selection 3rd 2nd 3rd
√ 3rd
√ 3rd 3rd - -

15. 15/40
2.3 million
2-1. The Who –Target Definition
2nd Target
Female
high/Univ
student
3rd Target
Male
Student/Worker
Prime Target & Sizing
Our prime target is 26~35 year old female worker, the 2nd target female High/Univ.
students and the 3rd target male in the 20’s~30’s, respectively
Prime
Target
Sizing
29 year old single female
living alone in Tokyo
Ogura Yuki
Prime Target Profile
Morning
Noon
Evening
• Working at Tokyo office at a corporate
• Getting a coffee at Starbucks
• Chatting with friends/family members on LINE on
Smartphone
• Lunch with a close colleague, buy her a simple meal to
thank her for her help the other day
• Take a donut break at Mister Donut with a junior in
her team and Ogura pays the bill
• Dinner with 3 other close friends, gives a small b day
present to one of them
• On the way home, mobile shopping on Rakuten and
pays with a registered credit card
5.6 million1st
Segmentation
Residential Area
Tokyo/ Osaka Area
2.9 million
Annual Salary
$30,000 +
Higher spending,
higher willingness to
try
Prime target 2nd target
2.7 million
20s~30s female workers
1.4 million

16. 16/40
2-1. The Who – Target Profiling Target Profiling & implication
The WHAT and HOW strategies will be heavily dependent on the lifestyle of
the prime target
Setting up WHAT & HOW Strategy
POCBrandMTKG
Occasion X Relationship
• Female workers have a wide range of people that they feel
pressure to care about as they get a job
- Needs to care about college friends, college juniors,
company colleagues, company juniors etc.,
- Needs to care about family members
• The most frequent occasion for “おごる” is when there is a
need to cheer up or show appreciation to the other side
Preference
• Communicate with friends/family members/lovers on LINE/Twitter
• Participate in groups and circles on mixi
• Post pictures and find out friends’ b-day on Facebook
Beverage
Fast Food
Dessert
Restaurant
Most Trusted
Media
1) WOM (recommendations & reviews)
2) TV Commercial / Editorial
Interest
Trigger
Book/Things
1) TV Commercial / Editorial
2) Magazines/ Papers
√ √
Friends
Family
Members
Boyfriend
/ Husband
Colleague Junior
√
√ √
√ √ √ √
√
√ √ √
Appreciation √ √ √ √
Expression of love
Saying Hello
Cheering up
Lighten up mood
Sorry
Relationship
Occasion

17. 17/40
HOW
HOW to win in the
Japan market?
3
Goal & Projection?
Business Model?
- Fee structure & variables
Brand(Partner)
Strategy?
Local Team Setting?
POC Strategy?
Marketing Strategy?
KSF Analysis





2. Go-To-Market Strategy
Overview of key questions of Go-To-Market Strategy
Key Questions of GTM Strategy
Planned Work In Progress(Discussion focus) Pending(done by next report)
WHO
WHO do we need to
focus as first priority?
1
Where to play?
- Gift/ Present culture
- Potential culture/ occasion
segment for Gifticon

Who will be our target?
- Prime/ 2nd/ 3rd target
- Sizable?
Who are they?
- Key characteristics of prime
target
- Implications on WHAT &
HOW


WHAT
WHAT is our competitive
product & service?
2
Competitive Product &
Service?
- Value Proposition
- Brand Name & Character
- Key Features for Japan
market
Development Plan?
- Product development plan
- Infrastructure development
plan



18. 18/40
2-2. Competitive Product & Service?
The value proposition of “Caring your relationships in a more convenient and fun
way” can be summarized in
Value Proposition of Gifticon Japan
An Interactive
Marketing Platform
A Wider Range of
Brands (提携社) &
POCs
User creating message
& gifting (selection)
format (UI/UX)
Simple & Easy
User Experience
Customizing
Convenience
Marketing
Hub
Abundance
Relationship
Care
more convenient &
fun way
Value Propositions of Gifticon Japan

19. 19/40
2-2. WHAT – Competitive Product & Service? Brand Name & Character
Overall, very negative response
from consumers
-Hard to pronounce and sounds
a bit strange
-Seems long and hard to catch
what this brand stand for
-‘Con’ sounds weird and hard to
pronounce
-Hard to memorize
Overall consumers are more
open and prefer to having
character but,
very negative response to
current character
-Not cute enough
-Seems too childish
-Seems targeting very niche
group (not generally likable)
-Seems cheap
-Hard to be popular
Consumer Reaction Key Findings
Consumers’ recommendations
were
-Petite Pre/ Choi Pre/ Sma Pre
Key Findings to Consider
• Easy to pronounce
• Easy to make short
• Easy to memorize
• Reflect ‘small treat’
Consumers’ recommendations
were
-Line style character
Key Findings to Consider
• Cute
• Generally accepted
• Eye catching
For Brand name and
Character, team plans
Running research
Having guide from
branding expert in Japan
Having talented designers
for character



Since it was found that current brand name and character are not fit to Japanese
consumers, team plans to run further research for branding and leverage brand/
character design expert in Japan

20. 20/40
Apply culturalized features that please Japanese Consumers and Brand Partners (提携
社), while introducing Basic Functions from Korean Gifticon service
2-2. WHAT – Competitive Product & Service? Key Features for Japan Market
Korean Gifticon Japanese Gifticon
• MMS / App PushSending
Return
Concept
• Link to Homepage
• Sending & Redemption
Content
• Redemption in Store
Certification • Barcode/Key-in
• Delivery Product
Basic
Feature
• Various Sending Tool
• Emotional Decoration
• Choice-con
paid by Credit Card
• Strengthen return
function
• SNS Linkage
• Various certification
Service Concept
Channel
• B2C : App, mWeb, Web
• B2B : Bizcon
• B2B : Sales
• Own SNS FunctionSNS
• Choice-con
paid by Gifticon cash
Choice
Features
Culturizing
(Localizing
)
• Self DecorationDecoration
Differentiation

21. 21/40
Will design localized features which accommodate emotional and caring culture of
Japanese Target Users and brand infrastructures.
Emotional
Decoration
• Needs : Expression of emotional and thoughtful treating
• Function : Provide functions for the highest quality Design Template & Self Design
Choice
• Needs : Like to send what the other party wants
• Function : Receiver selects 1 out of multiple gifts
( Choice con)
Various
Sending Tool
• Needs : Line/Facebook for Smartphone, Mail for Features phone
• Function : Provides various sending/receiving tools of LINE, Facebook, Twitter, Carrier Mail
/ general e-mail
Return
• Needs : Return what received always (‘Okaeshi’ Culture)
• Function : Strengthen return function
(Recommends Same product/price range, and half price range)
POS
certification
• Needs : Need authorization tool upon various Infra of brands (提携社)
• Function : Consider Web POS, User phone authorization & NFC other than
interconnecting brands (提携社) POS (Barcode/Key-in)
User
Needs
Partner
Needs
2-2. WHAT – Competitive Product & Service? Key Features for Japan Market
SNS Linkage
• Needs : Managements of anniversary and friends’ birthdays tied with SNS
• Function : Notice and link with Facebook anniversary and birthday
Sending function during conversation linked with Line Sticker

22. 22/40
Possible to differentiate from Japanese competitors in terms of service features as
well as contents and POCs
Gifticon
(Tentative)
Giftee SB Gift
Big Franchise
/Brands
Mainly Small Store
/Delivery
& Family Mart
Mainly Delivery
& MOS burger,
7eleven
App, Web, M Web
Various
Sending Tool
Emotional
Decoration
Return
POS
certification
FB, Mail,
Line, Twitter
O
O
POS, Phone POS,
Web POS
Brand Driven
(Starbucks, etc)
Own Product Only
FB, Mail,
Line, twitter
O
X
POS, Phone POS
FB, Mail
X
X
POS
Mail
O
(TBD)
POS
Own POC
Partner POC O
Web, M Web
X
Web
X
Web
X
Content
Service
Feature
POC
Comparison to Competitors2-2. WHAT – Competitive Product & Service?
SNS Linkage O X X (TBD)
Choice O X
△
(Catalog Gift)
(TBD)

23. 23/40
• KR dev company develop
the system similar to
the existing system
Selected the method developing new system in Japan for localization and flexibility
• 3-Methods of Development
KR only KR + JP JP only
Development Options2-2. WHAT – Development Plan?
• KR dev company develop
the back-end system, and
JP dev company do the
front-end side
• JP dev company develop
the entire system newly
• High utilization of
the existing system(KR)
(Operation of existing
system is verified but
isn’t optimized to Japan)
• Fast implementation of
each side
(back-end / front-end)
• Localization is possible in
front-end side
• Perfect localization is
possible
• High system flexibility
• Efficiency in operation
switching after launching
• Hard to localization
• Inefficiency in operation
switching after launching
• KR system is too
complicate to apply to JP
• Synchronization problem
between back-end and
front-end
• Takes a lot of time for
troubleshooting
• Low utilization of the KR
system
Method
Pros.
Cons.

24. 24/40
Primarily we selected 2 Japanese companies for development through comparison assessment.
Estimated period is 6.5 months and estimated cost is 2 million USD.
• Dev. Company Comparison
• Product Dev. Plan
Requirement
Definition
(1 month)
System
Design
(1 month)
Implementation
(3.5 months)
Test
(1 month)
Service
Launch
• Implement POC/Transmission/Auth./BO
• POS linkage(2~3 months per each partner)
Oct ’13 Nov ‘13 Dec ‘13 Mar ‘14 Apr ‘14
• Create storyboard & WBS
1) Excluding costs related to linkage with partners system(ex. POS upgrade, leased
line),security assessment
• Design screen & process logic
• Infra configuration
• Unit/Integration Test
• Security assessment
• System stabilization
• Achieving deliverables
May ‘14
Product Development Plan(Tentative)2-2. WHAT – Development Plan?
▽ ▽ ▽ ▽ ▽ ▽▼
* UX design is an important factor for the formation of barriers to entry, we need to outsource a special UX design agency
Understanding
Requirements.
EC Experience Competency Period Cost(mil USD)1)
Assessment
Active Works ☆ ★ ☆ 6 Months 1.0~1.5 ☆
Optima ★★ ★★ ★★★ 7 Months 1.0~1.5 ★★★
Isana ★★★ ★★ ★★ 6.5 Months 1.5~2.0 ★★★
General Pacific ★ ★ ★★ 8 Months 1.0~1.5 ★
* Additional meetings are needed(with large SI company : IBM, NEC, etc)

25. 25/40
- No initial investment cost
- Low operation cost
Utilize AWS(Amazon Web Services) for cost savings and operation efficiency
• AWS Features
• Infra Architecture & Operation Cost
Cost
savings
Load
Balancer
<Architecture> : Dualization. Similar to KR Gifticon <Operation Cost> : About $5,000/month
…
Web
Web
Web
WAS
WAS
DB
DBWeb
…
• could be fluctuated depending on # of server / spec. / traffic
• After defining requirements, we can design concrete Infra
architecture and assess operation cost
- Efficient capacity management
(flexible server expansion/reduction)
- Short procurement time(server, storage)
Operation
efficiency
- AWS Users in Japan : 20 thousand
(Jun ’13)
 Most Japanese dev. companies
have AWS experience
High utilization
in Japan
□ Includes
- Network : Load Balancer, Firewall, etc..
- Server & Disk : Web / WAS / DB, Cache, Storage
- Service : Backup Service, Technical Support
Infrastructure Development Plan2-2. WHAT – Development Plan?

26. 26/40
WHAT
WHAT is our competitive
product & service?
2
Development Plan?
- Product development plan
- Infrastructure development
plan

Competitive Product &
Service?
- Value Proposition
- Brand Name & Character
- Key Features for Japan
market
WHO
WHO do we need to
focus as first priority?
1
Where to play?
- Gift/ Present culture
- Potential culture/ occasion
segment for Gifticon

Who will be our target?
- Prime/ 2nd/ 3rd target
- Sizable?
Who are they?
- Key characteristics of prime
target
- Implications on WHAT &
HOW


2. Go-To-Market Strategy
Overview of key questions of Go-To-Market Strategy
Key Questions of GTM Strategy
Planned Work In Progress(Discussion focus) Pending(done by next report)





HOW
HOW to win in the
Japan market?
3
Goal & Projection?
Business Model?
- Fee structure & variables
Brand(Partner)
Strategy?
Local Team Setting?
POC Strategy?
Marketing Strategy?
KSF Analysis

27. 27/40
2-3. HOW- Goal & Projection?
Team has set the vision of Gifticon Japan as ‘Japan’s No. 1 Mobile product voucher
player by creating new & fun experiences on caring relationship’
Vision & Goals of Gifticon Japan
Gifticon Japan’s Vision
“Japan’s No. 1 Mobile product voucher
player by creating new & fun
experiences on caring relationship”
Goals and Objectives
#1 Mobile product voucher
Player
Positive EBITDA
2015
2016
2017
GMV Over 147 mil USD
>15% EBITDA
※ Optimistic case

28. 28/40
Strengthen the business
covering all target
rangesDrive retrial to prime
target and trial expansion
to 2nd targetDrive awareness & trial
among prime target
1st Year
Apr’14 ~ Dec’14
Gliding path of Japan Gifticon Business
Financial Target & Projection2-3. HOW – Goal & Projection?
Conservative General Optimistic
11
2
△8
※ Key Assumption
- Optimistic : Line partnership & 3 or more Top Brand(提携社) partnership from 1st Year
- General : mixi partnership & 1~2 Top Brand(提携社) partnership from 1st Year
- Conservative : No major POC partnership & No Top Brand(提携社) partnership from 1st Year
- Marketing: referred from Target research & Line/ other IT case
- B2C : B2B: 7:3
2nd Year
2015
3rd Year
2016
GMV
Revenue
EBITDA
Monthly Unique
Buyer (‘000)
CAPEX
Marketing
(mil USD)
802613
5
1.3
△5
3
0.8
△3
2.6
7.0
2.6
3.5
2.6
2.1
48
11
△3
2006432
22
6
△2
13
3
△2
0.5
5.0
0.5
2.5
0.5
1.5
103
23
3
40012864
48
12
0.9
27
7
△0.2
0.5
3.0
0.5
1.4
0.5
0.8
Conservative General Optimistic Conservative General Optimistic

29. 29/40
Key success factors of Japan Gifticon have been defined based on analysis about
Korean Gifticon and strategic Directions of Japan
KSFs of Korean Gifticon Defined KSFs of Japan Gifticon
Under the umbrella of SK Telecom and SK
Group…
• Early acquisition of Top brands
- Focused on the brands preferred by 20~30s
- Starbucks, Baskin Robins, Paris Baguette, etc.
- Benefits provided: Pre-purchase, System linkage
support, Low commissions
• Leverage No.1 Messengers
- NateOn at initial > Kakao Talk at smart phone era
• Brand Power & Trend Setting
- Marketing (Commercials, SKT Channel marketing),
Co-Promotion, etc.
• Stable B2B Market
- Secure scales by leverage SKT &SK group
promotions
• Stable System Operations
- Initial investment about 2 mil USD
- Internalized system operations
- Fast customer service
Becoming First Mover
• Building perception of
Gifticon as first mover in
consumers’ mind
• Setting trends
Building Entry Barrier
• On top of first mover,
leveraging POC/
Brands as competitive
edge to existing players
and entry barrier to
new comers
• Lack of umbrella/
backgrounds in Japan
• Sufficient investments
are key for success
Strategic Directions
Securing Investments
• Defining Target consumers & culture
- Define WHO to make our loyal consumers
- Which culture to touch (present? Treat?)
• Developing Partnership with Top Brands
- Based on target consumers’ preference
- At least one or two brands within top 3 in each
category
- Benefits provided: Pre-purchase, System linkage
support, Low commissions
• Securing Strong POC
- SNS (Line > mixi > Facebook)
- Own POC (App, Web, etc.)
• Marketing & Trend Setting
- Min-Max simulation to build trend & first mover
benefit
• Building B2B Market
- Assess the size and build relationship withB2B
agency
• Building Stable & Fully Localized Product
- Key service features based on WHO research
- Launch timing/ cost assessment




 Planned Work In Progress Only Direction
Defined KSFs of Japan Gifticon2-3. HOW – KSF Analysis

30. 30/40
Revenue of Gifticon is made up of Brand Commission, Non-redemption
and B2B commission.
PG fee
POC fee
Message fee
• (B2C) Transaction Fee
• Payments : Credit Card, Phone Bill, Account
Transfer, OCB Point
• (B2C) Sales POC Fee（B2C）
• Partner POC : Kakao talk, Nate On
• Fee for MMS
- Credit card: 2.5~2.6%
- Phone bill: 3.3%
- Account Transfer: 1.2%
3~5%
Avg. 100 KRW/Case
Variable
Cost
Brand
Commission
Non-redemption
(未交換收益)
B2B commission
• Commission upon Brand (提携社) product
sales/exchange
• Brand (提携社) : BR, Starbucks, etc.
• Un-exchanged amount until expiration
• Commission for B2B sending service
• Commission upon B2B exchange
5~15 %
B2C 10%
B2B 30%
- 300 KRW/case + 10% of
exchanged amount
Revenue
Earning Structure Contents Korea case
Fee Structure & Variables2-3. HOW – Business Model?

31. 31/40
Category
B2C B2B
Own POC Partner
Sending
base
Redemption
base
Rev.
Partner Commission 8% 8% 8% 8%
Non-redemption 10% 10% 25% 0%
B2B Commission 0% 0% 0% 7%1)
Revenue Total 18% 18% 33% 15%
Variable
Cost
PG fee 4% 4% 0% 0%
POC fee 0% 5% 0% 0%
Message fee 2)
1% 1% 1% 1%
B2B Agent fee 3)
0% 0% 20% 5%
Refund/Donation 4)
1% 1% 1% 1%
Cost Total 6% 11% 22% 7%
Contribution Profit 12% 7% 11% 8%
Rev. Portion 35% 35% 20% 10%
Average Contribution Profit 9.65%
※ Assumption
1) B2B Commission : 70% Exchange*Commission 10% = 7% assumed (no cost for message)
2) Message Fee : use Open API for Line, Facebook, E-mail (Currently free of charge, but might change to charge model
3) B2B Agent Fee : 20% of Sales agency fee for sending basis, and 5% of our fee for exchange basis
4) Refund/Donation: 1% of GMV is assumed for Refund + Donation
When recognizing Non-redemption profits, Business Model is almost same as in
Korea.With 8% of Brand Commission, Contribution Margin will be same as in Korea.
Korea case
Avg. 8%
B2C 10%
B2B 30%
Avg. 7%
Avg. 3%
NateOn : 3%
Kakao : 5%
B2C 1.1%
B2B 2%
Same
0.3%
9.1%
(’12 Contribution
Profit based on
GMV)
Japan
case
Fee Structure & Variables2-3. HOW – Business Model?

32. 32/40
B2B Promotion Market
- Improve Promotion Delivery Process
- Instant effect
- Cost Saving (Price /Delivery)
1. Own Sales
2. Agent Sales
Market
Enterprise Promotion
Market
Promo-
Market
Main Player
Credit
Card
Insurance
Etc.
• AMEX, Rakuten Card, etc.
• AXA Direct, ORIX Life, etc.
• F&B such as Sapporo beer
• Consumer goods as P&G, Lion
Sales Strategy
BM
Needs
Sales
Sending
Exchange
: # of Sending ▷ Non-redemption
: # of Redemption ▷ Exchange Fee
Delivery : # of Delivery ▷ Delivery Fee
Mobile
Boucher
Large Client
Brands Client
Ad Agency
Solution Sales Agency
Product Sourcing Agency
Etc
Plan to do our own sales and use sales agent for B2B business, and
report Business plan for B2B later after market study.
: Marketing + CRM
Directions for B2B2-3. HOW – Business Model?

33. 33/40
Need to acquire key brands for building entry barriers against competitors
Key Brand Candidates2-3. HOW – Brand (提携社) Strategy?
Requirement for
Key Brands
Candidate Brands
Key Brands 2nd Brands
 Need to list up more potential brands with the requirements
 Focus to capture key partners first, while contacting other partners
 Cooperate with Korea Gifticon to build relationship with global brands such as
Seven Eleven, Baskin Robins, Burger King, EdenRed, etc.
Brand
Beverage
Fast Food
Dessert
Restaurant
Book/
Things
Brands from
Consumer Research
Brand Image
Preference
Rank in
Category
# of Stores
POS Status
Price Range

34. 34/40
Contact key and 2nd brands together with different strategies
Brand Strategy2-3. HOW – Brand (提携社) Strategy?
Packages
Key Brands 2nd Brands
LowOurPriorityHigh
gifticon W/S in
Korea ● ● ● ● ◐ ◐ ◐ ◐
POS Connection
Cost Support ● ● ● ● ◐ ◐ ◐ ◐
Co-Marketing
Cost Support ● ● ● ● ◐ ◐ ◐ ◐
Pre-Purchase for
initial partnership ◐ ◐ ◐ ◐ ○ ○ ○ ○
Customization for
each brand ◐ ◐ ◐ ◐ ◐ ◐ ◐ ◐
Fee Negotiation ◐ ◐ ◐ ◐ ○ ○ ○ ○
 Offer different packages to each brands in accordance with the situations
 Fee negotiation will be the last measure to acquire partners

35. 35/40
Our Own and External POCs2-3. HOW – POC Strategy?
Team is considering to develop 3 POCs for our own and to build partnership with
Line and mixi
# of Users ★★★ ★ ★★★ ★★ ★★
Often Used ★★★ ★ ★★ ★★ ★★
# of Buddy ★★★ ★ ★★★ ★★ ★★
B-day Link - - ★★★ ★★★ -
Partnership
Purchase Promotion
User’s
Credibility
App ◎ ◎ △
Mobile Web ◎ ◎ △
PC Web ○ ○ ◎
POC
OurOwnExternal
 Role: Stable revenue
 Build 3 POCs altogether
upon approval
 Both Android & iOS
 PC Web is essential for
building user’s
credibility
 Role: Dramatic growth
 Potential POC: Line,
mixi, Facebook
 Not possible with
Facebook
 Partnership Candidates:
Line & mixi
 Line # 1, mixi #2
 

36. 36/40
Next Step for External POCs2-3. HOW – POC Strategy?
For external POCs, Line and mixi would be potential candidates.
Current Status Strategic Fit Next Step
- Mostly used comm. Channel
in Japan
- Announced commerce
business (Line Mall)
- Best for 1:1 gifting
- Can use sticker store
- (09.26) Line CEO meeting
: For strategic partnership in
gifticon business
: will offer further
discussion
- Had meetings on 4th SEP
- Planning to launch social
gifting service early next
year
- Currently declining service
in terms of users and visits
- Still has a chance to revive
- Can use some interface for
birthday or small circle
- (09.26) Meeting with
Commerce Service Director
: find out mixi’s new service
: tap possibility for
partnership
 Line
: the most necessary POC in Japan Operation
: Will offer several packages, such as Co-promotion, flexible fee schedule, and MG.
 mixi
: Similar direction with each other’s services
: has some needs to re-boost with some disruptive services, such as gifticon

37. 37/40
Contents
 Appendix
1. Recap & Updates from the Previous Meeting
2. Go-to-Market Strategy (WHO/ WHAT/ HOW)
3. Summary & Next Steps (Work Schedule)

38. 38/40
• Positive Market Circumstances
− Opening to new concept of mobile commerce trends
− Meaningful spending size
• Improving Ecosystem
− Increasing smart phone penetration/ Simple and easy
mobile payment/ POS upgrades due to consumption tax
changes
• Chance to be first mover (Less competition)
− No dominant players and new service concept
• Culture (Target & Where to play)
− Found there has been ‘treating’ culture called ‘おごる’ &
meaningful size of Target
• Regulation
− Currently no legal issues/ clear guideline on no-redemption
profit & expiry dates for exchange
• Less development cost than expected
Opportunities Challenges
Even though there are some challenges, team considers are
able to overcome and lose all the opportunities in Japan if we
are not entering now. Team asks management to approve the
budget of product development and sales (BD) activities right
now
Summary (Opportunities & Challenges)
• Challenges on engaging brands & POCs
− No halo of SK group in Japan (SKPJ is just small and
unknown company)
− No products and plans for development (cannot commit
any timeline)
− Rough estimation for investment size
• Challenges on BM development
− Hard to proceed further discussions with Brands & POCs
due to the reasons above
− Unclear B2B market (work in process of studying)
• Various types of POS system
− Increase efforts & cost on product development
• Expectations on competition in 1Q ~ 2Q of 2014
− Repositioning of current players and plans of new comers

39. 39/40
Team Setting
Apr 15 ’14Sep 25 ‘13 Late Oct ‘13
HQ
SKPJ
Position Status
Current
Member
Personnel
Product
Head
Hiring Matsuda 1
Business
Development
1 Hired
(1 Hiring)
Bahn/
Ogura
2(+1)
Tech
Engineer
Hiring - 1
TOTAL 4
SKPJ HQ
Team Member Personnel
COO HW Hong 1
CTO DU Seo 1
Global Business Strategy
BH Park
Lan Lee
Jieun Lee
3
TOTAL 5
• Team Involvement
Hiring
Finalization
Currently SKPJ is planning to hire two more local members by end of Oct and will
report plan for hiring more members after November if needed

40. 40/40
Next Steps & work schedule
Key
Deliverables
WHATHOW
9/25 End of Nov End of Jan End of Feb
CEO report
1. Agree on
- WHO & WHAT
- Starting product
development
2) Discuss on HOW
CEO report
1. Goal & Forecasting
(most updated)
2. Finalized BM Strategy
3. Brand/POC
(BM & fee structure
finalization)
4. Marketing Strategy
(detailed plan)
5. B2B
(Plan &
candidate agency list)
6. Product development
Progress Update
7. Hiring finalization
CEO report
Progress Update
CEO report
Finalized
launch plan
Product
Developmet
Sep Oct Nov Dec Jan Feb Mar Apr
Requirement
Brand
POC
Negotiation
• Reach the final stage of decision with 3 +α top tier
brands (Agree on directions/conditions/svc
process/supports etc.,)
Contract
• Close the deal with at least 3 top
tier brands
• Tapping onto 4 +α brands
• POS & system link
• Beta test
• Build more brand network
Negotiation Contract
• Focus on Line and mixi • Close the deal with at least 1 main
POC
• System link with the POC
• Beta test
• Product development/ Infra setting / optimization etc.,
• General localization/ customization/ UI & UX development/ Character design etc.,
Launch
Development
Negotiation/POS link
System link

41. 41/40
Thank you!