NICE I&T IR Newsletter

www.nicevan.co.kr
2020.5th NICE I&T Inc.

1. Performance of 2020 (Consolidated & Separate)

 20. Accumulated (Consolidated) Revenue of 519.3billion KRW
20. 1Q Accumulated (ConsolOperating Income of 36.7 billion KRW
 19. Accumulated (Consolidated) Revenue of 452.3 billion KRW
19. 1Q Accumulated (ConsolOperating Income of 35.6 billion KRW
19. 1Q
(Units :1 million KRW)

Consolidated Separate

Title
’20 ’19 %YoY ’20 ’19 %YoY

Ⅰ. Revenue 519,326 452,314 14.8% 208,781 217,676 -4.1%

1. VAN [sales of products] 14,198 13,651 4.0% 14,198 13,688 3.7%
2. VAN [service revenue] 194,573 203,171 -4.2% 194,583 203,988 -4.6%
3. NICE PAYMENTS 303,973 231,709 31.2% - - -

4. IONPAY 3,783 3,783 0.0% - - -

5. NICE INFO VIETNAM 3 - - - - -

6. CU Networks 2,796 - - - - -

Ⅱ. Operating Expenses -482,602 -416,747 15.8% -178,344 -186,778 -4.5%

Ⅲ. Operating Income 36,724 35,567 3.3% 30,437 30,898 -1.5%
- operating margin 7.1% 7.9% -10.1% 14.6% 14.2% 2.7%
Ⅳ. Interest income and expenses 12 3,711 -99.7% 865 1,638 -47.2%
Ⅴ. Non-Operating Profit and Loss -2,814 -1,602 75.7% -4,652 -2,129 118.5%
Ⅵ. EBT 33,922 37,676 -10.0% 26,650 30,407 -12.4%
Ⅶ. Tax Expenses -20,585 -7,679 168.1% -18,970 -6,479 192.8%
Ⅹ. Net Income -355 -522 -32.0%
- Controlling Interest 12,982 29,475 -56.0% 7,680 23,928 -67.9%
- EPS(1KRW ) 13,506 30,109 -55.1% - - -
ⅩⅠ. Other Comprehensive Income 1,441 3,212 -55.1% 819 2,553 -67.9%
ⅩⅡ. Comprehensive Income 442 -483 -191.5% - - -
- Controlling Interest 13,424 28,992 -53.7% 8,455 23,329 -63.8%

*Subsidiaries : NICE Payments, PT.IONPAY, NICE INFO VIETNAM, NICE TECH CENTER VIETNAM, CU Networks.INC

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2020.5th NICE I&T Inc.

< ‘20, Result (Accumulated base) >

(Units :1 million KRW)

NICE I&T NICE PAYMENTS

Title
2020 2019 2020 2019
Revenue 208,781 217,676 305,657 232,461
Operating Income 30,437 30,898 7,553 6,217
Operating Margin 14.6% 14.2% 2.5% 2.7%

□ Sales: Revenue in the 2020 is 519.3 billion KRW [increased 67.0 billion KRW 14.8%↑YoY]
due to the high growth of NICE PAYMENTS.

 NICE PAYMENT's revenue is 305.7 billion KRW[73.2 billion KRW ↑, YoY 31.5%↑]
- NICE PAYMENTS demonstrated the high sales growth by providing payment service to
O2O clients and securing mobile platform-based clients.

 NICE I&T's revenue is 208.8 billion KRW

- Due to release new POS and card terminals model, sales of products increased to 14
billion KRW [YoY 4.0%↑]
- Service sales reduced slightly due to the increase of the number of online VAN
transaction [YoY 4.6%↓].
- NICE I&T’s market share is 20.7%, [YoY 2.0%p↑]

 PT. IONPAY' sales in ‘20 is 3.8 billion KRW

- As of the impact of COVID-19, local merchants are under-performing, so the growth
rate continues to slow. However, the revenue is maintained as last year’s
performance.

□ Operate Income : Operating Income of NICE I&T IS 36.7 billion KRW.

Operating margin is 7.1%

 NICE Payments earned 7.6 billion KRW operating profit, and demonstrated stable profit
generation [ In’19 Operating profit 6.2 billion KRW]
- Maintain a stable operating margin of 2.5%

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- One-time costs also in 4Q

[The promotion costs and computer system maintenance costs.

These costs are usual investment resulting from the increase in market share in PG market.]

 NICE I&T recorded 30.4 billion KRW despite of the effects of COVID-19, and achieved
the operating margin of 14.6%
- The number of offline VAN transaction declined by up to -20% in March and the
turned to a gradual recovery and slight growth trend after June, however ended with a
stable number of transaction growth. [YoY 9.5%p↑]

2. Performance Comparison of 4Q, 2020 [Seperated]

 NICE I&T (VAN)‘20 4Q Revenue of 52.8 billion KRW,
NICE I&T(VAN) ‘20Operating income of 8.7 billion KRW
 NICE Payments(PG)’20 3Q Revenue of 84.8 billion KRW,
NICE Payments ’20Operating income of 865 million KRW

(Units :1 million KRW)

NICE I&T NICE PAYMENTS

Title
20 4Q 19 4Q 20 4Q 19 4Q
Revenue 52,770 54,287 84,845 67,377
Operating Income 8,680 6,474 865 1,042
Operating Margin 16.4% 11.9% 1.0% 1.5%

□ NICE PAYMENTS : High revenue growth due to non-contact trend payment,

established solid-profit business structure.

 Main Key management indicators such as revenue, transaction amount, and market
share continue to rise.
- '20. 4Q revenue is 84.8 billion (separate basis), 25.9% YoY↑
- Transaction amount YoY 33.3%↑, settled as the fourth largest PG company in the
industry. [The gap in M/S with top PG company is gradually narrowing]

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 In 4Q ‘20, SG&A expenses increased due to marketing expenses.

- App advertising, promotion costs are recognized in 4Q. These are necessary
investment costs to drive market share of PG business.

□ NICE I&T : NICE I&T’S VAN market share up to 22.2%,[4Q separate basis]
generated synergy effect of O2O payment service.
 ‘20. 4Q M/S[cumulative basis] is 20.7%[YoY 2.0%p ↑]
- Market share increased due to additional recruitment of major merchants.
- While, the number of transactions decreased due to Covid-19 is in the phase of
recovery.
 In the fourth quarter, the number of VAN transactions increased by 12.1%
YoY ↑ due to the expansion of online payments.
[’17-’19, annually grow 13.0%]

 Van fees have been mostly reorganized from flat-fees to fixed-rate fees.
- Sales and profit declined due to the base effect of the lowering of fees ’19 2H.
- However, the operating margin improved from 9.3% in 1Q, 14.8% in 2Q,
17.2% in 3Q and 16.5% in 4Q (Increasing application of online VAN unit prices does
not directly lead to sales growth, but related operating expenses have decreased.)

 Rapid growth of Online VAN continues, which means that NICE I&T is improving its
business portfolio into Online-Offline integrated payment settlement company.
(Units : million)
Title 2016 2017 2018 2019 2020 2019 4Q 2020 4Q

Total Transaction 2,506 2,986 3,147 3,581 3,922 939 1,053

VAN Growth (YOY) 21.1% 19.2% 5.4% 13.8% 9.5% - 12.1%

ONLINE Transaction 65 135 272 511 898 166 298

VAN Growth (YOY) 63.5% 107.1% 101.2% 87.9% 75.6% - 79.9%

 The number of online VAN transaction in 4Q ‘20 is 900 million, YoY 75.6% ↑
 The number of online VAN transaction composed 22.9% of total VAN transaction of
NICE I&T

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 NICE I&T IR Newsletter
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2020.5th NICE I&T Inc.

[Summary of quarterly sales]

*2020 ( Unit : 1 million KRW)

NICE I&T NICE PAYMENTS

Title
20 1Q 20 2Q 20 3Q 20 4Q 20 1Q 20 2Q 20 3Q 20 4Q

Revenue 48,370 53,263 54,378 52,770 66,608 72,274 81,930 84,845

Operating Income 4,515 7,901 9,341 8,680 1,875 2,224 2,589 865

Operating Margin 9.3% 14.8% 17.2% 16.4% 2.8% 3.1% 3.2% 1.0%

*2019 ( Unit : 1 million KRW)

NICE I&T NICE PAYMENTS

Title
19 1Q 19 2Q 19 3Q 19 4Q 19 1Q 19 2Q 19 3Q 19 4Q

Revenue 50,938 56,908 55,543 54,287 52,962 53,759 58,363 67,377

Operating Income 5,640 9,755 9,029 6,474 1,766 1,543 1,866 1,042

Operating Margin 11.1% 17.1% 16.3% 11.9% 3.3% 2.9% 3.2% 1.5%

□ Implementation of new business

NICE TAX FREE (TAX REFUND)
 On 21st march 2019, The 31st General Meeting of Shareholders added the following
business purposes in the articles of incorporation. (No. 6-8)
[6. Foreign tax refund agency and tax refund booth operation 7. Foreign exchange
and foreign exchange remittance business

 NICE I&T aims to expand the TAX REFUND market by implementing 'immediate refund'
service.

 NICE I&T expects to realize synergy effect for VAN business and tax refund business
by providing tax refund service to our VAN service merchants through POS solution
upgrade without any additional cost to merchants.

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 After the official service launch in September, 2019, NICE I&T provides this service as
an
additional service to our merchants’ stores. We are currently expanding our service
point.
 Due to the impact of COVID-19, number of incoming overseas tourists have plunged.
In this situation, contracting new merchants for providing TAX REFUND is in
difficulties.

NICE ORDER
 On 21st march 2019, The 31st General Meeting of Shareholders added the following
business purposes in the articles o
f incorporation. (No. 20 ~ 25).
[20. Poll and research business, 21. Telecommunications billing service business, 22.
Special purpose communication business, 23. Location information and location
based service, 24. Marketing consulting business, 25. Interior design consulting
business]

 The mobile order service is implemented to meet the demands of our mid-to-small
size franchise merchants

 Officially opened on November 1st, being distributed to our secured merchants, and
continuing to develop service system.

5. Major Disclosures after the third quarter of 2020

(2020.10 ~ 2021.03)

◈ The 33st annual general meeting of shareholders

 2021.03.25. Approval of 33nd FY financial statements

 Revised articles of incorporation

(The purpose of the business is added and the revised commercial law is reflected)

 Granting stock purchase options (total of 110,000 shares to three directors)

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 Appointment of two registered directors ( one executive director, one nonexecutive

director to serve as the audit committee member)

◈ Determination of cash dividends

 2021.03.09 Dividends of 460 KRW per share

(1.6% market dividend rate)

DISCLAMER

This report (hereafter “Report”) was prepared by NICE I&T Inc. (hereafter “the Company”) based on the

information publicly released, for the purpose of providing information on the Company to the shareholders and potential

investors. In regard to using this Report, the followings should be noted so that shareholders and potential investors can

properly utilize this Report for the decision-making process.

The Company provide or will provide no guarantee or representation, expressed or implied, as to the accuracy or integrity of

contents of this Report. The Company expressly disclaims any responsibility or liability whatsoever in connection with possible

losses and limitation of interests that may result from the decisions made based on the contents of this Report.

Submission, registration and approval of this Report is not legally binding.

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