This presentation material is prepared by KDB Daewoo Securities Co., Ltd. For the purpose of providing information to currentand prospective investors of the company. The contents in this document are preliminary, and forward looking statements are based on KDB Daewoo Securities’ internal projections. All such statements are subject to certain risks and uncertainties that could causeactual results to differ from those in this material.

Overview

• Overall business divisions slowed down QoQ including S&T income and Brokerage revenue due to unfavorable business environment. Pretax profit came in at W70.4bn (down 55% QoQ) and net profit at W55.4bn (down 53% QoQ).

Brokerage

• As the stock price index fell in the wake of Chinese stock market turmoil in August, both retail client’s equity assets and margin lending balance decreased QoQ. Investor sentiment was weakened, in fact avg. daily trading volume was approximately W1tr below than 2Q, which dragged BK revenue 17.1% down QoQ to W94.5bn.

Wealth Management (Financial product sales revenue)

• WM assets continued to grow and hit a record high of W61.8tr. Despite increased assets, WM revenue slipped 9.8% QoQ to W29.5bn due to 1) decreased sales revenue from reduced ELS issuance and 2) increased low-risk bond-type products which generates low margin.

Investment Banking

• IPO of Tonymoly and I·Controls, rights offering of Hyundai Elevator, CB of Hanwha Galleria Timeworld deals led to a turnaround in ECM earnings. In addition, we expect earnings to improve from expanded pipeline including IPO of Lotte Hotel.

Sales & Trading

• Derivatives trading income fell due to deteriorated ELS (which has #1 M/S) hedge trading environment and reduced early redemption. Bond trading income which showed great performance this year also shrank which led to a large reduction in overall S&T income (down 78.2% QoQ to W43.3bn).

Others

• Non-operating income : △W12.5bn (Impairment loss on goodwill for Indonesia subsidiary)

Key PointsIncome Statement

3

* Net income refers to net income attributable to controlling interests

(Unit : Wbn)20144Q

20151Q

20152Q

20153Q

Net Operating Revenue 226.6 302.3 313.2 218.8

Brokerage 62.0 78.0 111.9 94.5

Wealth Management 23.2 28.8 32.7 29.5

Investment Banking 19.1 12.8 31.2 22.0

Sales & Trading 47.3 134.5 95.8 43.3

Interest Income 59.2 38.6 39.8 31.7

Others 21.2 12.8 11.7 0.9

Commission Expenses △5.4 △3.1 △9.7 △3.1

SG&A Expenses 220.3 159.8 159.6 137.0

Operating Profit 6.3 142.5 153.7 81.8

Net Non-operating Income 5.2 2.6 1.5 △11.5

Net Income before Tax 11.5 145.2 155.1 70.4

Income Tax Expense △1.7 △34.1 △36.7 △14.9

Net Income 9.7 111.0 118.4 55.4

4.3 4.7 6.2 5.9

2.2 2.9

4.1 3.6

4Q 2014 1Q 2015 2Q 2015 3Q 2015KOSPI KOSDAQ

(Unit : Wtr)

(Market) Avg. Daily Trading Volume

(Market) Breakdown by Investor Type

4

(DW) Brokerage Revenue

(DW) M/S & Avg. Commission Rate

9.5

7.66.5

10.3

21.8% 18.6%16.7% 17.9%

18.3% 17.6% 14.7% 14.2%

59.9%

63.8%

68.6% 67.9%

4Q 2014 1Q 2015 2Q 2015 3Q 2015Foreigners Institutions Individuals

5.3%5.7%

6.0%5.6%

6.1%

7.0%7.4%

6.0%

11.5bp

12.4bp 12.9bp

11.7bp

4Q 2014 1Q 2015 2Q 2015 3Q 2015By turnover By commission Avg. commission rate

62.0 78.0

111.9 92.8

4Q 2014 1Q 2015 2Q 2015 3Q 2015

(Unit : Wbn)

3.9 4.3 5.0 4.8

7.5 7.5 8.0 7.2

5.4 6.0 8.0 7.6

6.3 11.0

11.5 9.9

4Q 2014 1Q 2015 2Q 2015 3Q 2015Mutual Fund Wrap Trust/Pension ELS/DLS

(Unit : Wbn)

296 312 280 155

7,450 8,123 8,298 9,683

4,868 4,947 5,249 5,392

4Q 2014 1Q 2015 2Q 2015 3Q 2015

Equity (Hybrid) Bond (Hybrid) Others (CMA)

(Unit : Wbn)

10.7

11.6

12.4

12.7

12.6

13.4

13.8

15.2

10.9

12.6

12.7

11.7

6.4

7.2

7.3

7.4

6.7

6.7

6.6

6.7

8.0

7.9

8.1

8.1

4Q 2014

1Q 2015

2Q 2015

3Q 2015

Mutual Fund Wrap Account Trust/Pension ELS/DLS RP Bond/CP

(Unit : Wtr)

WM (Financial product sales) Assets

(Key Product) ELS/DLS Issuance

5

WM (Financial product related) Revenue

(Key Product) Wrap Account Assets

15,230

12,614 13,382 13,827

55.3

61.8

59.4

60.9

29.5

23.2

28.832.7

3,361 3,674 3,018

2,307

-720 684 755 747

4Q 2014 1Q 2015 2Q 2015 3Q 2015ELS DLS

(Unit : wbn)

Aircraft investment

USD 144.6mn

4.7 0.9 0.5 3.7

3.9 4.9 6.9 4.2

10.5 7.0

23.7

13.6

4Q 2014 1Q 2015 2Q 2015 3Q 2015

ECM DCM Advisory

(Unit : Wbn)

2015 Major Deals

6

IPO W94.1bn

CB W50bn

Block Sale W324bn

Financial Advisoryin acquiring KT Rental

W400bn

IB Revenue

IB League Table (2015 Accumulated)

31.2

21.5

12.8

19.1

* Source : The Bell League Table (ECM-IPO, Rights Offering, ELB, DCM-Corporate Bonds, Financial Bonds, ABS)

8%

92%

ECM

KDB DW Others

17%

83%

DCM

KDB DW Others

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GALLERIA TIMEWORLD

7

Fixed Income Balance

Client Book Balance

Sales & Trading Income

(Market) Interest Rate

2.15

1.75

1.67

1.59

2.10

1.72

1.80

1.57

2.61

2.16

2.45

2.07

4Q 2014 1Q 2015 2Q 2015 3Q 2015

1Y Bank Debenture 3Y KTB Yield 10Y KTB Yield

(Unit : %)

47.3

134.5

95.8

43.3

4Q 2014 1Q 2015 2Q 2015 3Q 2015

(Unit : Wbn)

16.7 18.1 18.6 18.2

7.7%8.5%

8.0% 8.0%

4Q 2014 1Q 2015 2Q 2015 3Q 2015FI Balance Portion of Foreign Currency Denominated Bonds

(Unit : Wtr)

10.4 11.6 11.5 11.3

8.3 8.4 9.0 8.5

4Q 2014 1Q 2015 2Q 2015 3Q 2015

차트 제목

Derivative-combined Securities Sold Securities sold under R.P

(Unit : Wtr)

169.0 116.5 113.4

87.4

6.2

3.7 6.9 6.5

45.1

39.6 39.3 43.1

4Q 2014 1Q 2015 2Q 2015 3Q 2015Salary Advertising Others

(Unit : Wbn)

17.8 18.3 20.6 20.7

68.3 65.7 56.2 54.7

4Q 2014 1Q 2015 2Q 2015 3Q 2015

Financial product assets Equities, etc.

(Unit : Wtr)

55.3 59.4 60.9 61.8

81.3 88.7 78.4 77.2

4Q 2014 1Q 2015 2Q 2015 3Q 2015Financial product assets Equities, etc.

(Unit : Wtr)

8

Total Client Assets SG&A

Retail Client Assets HNWI Client (with assets of W100mn+)

86.1 84.076.8 75.4

137.0

220.3

* Retail client assets decreased W10tr due to withdrawing Cheil Ind. in June 2015

136.6148.1

139.3 139.0

159.8

* W8.0tr (approx.) of retail assets is reclassified as non-retail assets (Jan. 2015)

* Cheil Ind. (W15.5tr) was withdrawn in Jun. 2015 as lockup period expires * One-off expense : W25.4bn (Voluntary retired employees in June 2015)

159.6

38.7 41.5

36.0 34.8

51.3

56.9

61.7 60.3

4Q 2014 1Q 2015 2Q 2015 3Q 2015

Asset of HNWI Number of HNWI

(Unit : Wtr, '000)

KDB Bank

43%

Institutions

10%

Foreigners

17%

Individuals

29%

General History

Shareholder Structure

10

Date of Established 23 September 1970

Date of Listing 30 September 1975

No. ofShares

Common 326,700,891 shares

Preferred 14,075,750 shares

Paid-in-CapitalW1.7tr (Shareholders’ equity : W4.4tr)

No. of Employees 2,968

Domestic Network 102 (99 Branches, 3 Stores)

OverseasNetwork

OverseasSubsidiaries

Hong Kong (1994, 2014),

London (1991), New York (1992),

Beijing (2011), Singapore (2012),

Mongolia (2013), Indonesia (2013)

BranchOffice Tokyo (2011)

Rep. OfficesBeijing (2008), Shanghai (2010),

Ho Chi Minh (2007)

Credit RatingAA+ Stable(3 Domestic Rating Agencies) Baa2 (Moody’s)

September 1970 Established as Dong Yang Securities

September 1975 Initial Public Offering

October 1983 Renamed as Daewoo Securities Co., Ltd.

October 1999 Split from Daewoo Group

October 2009KDB Financial Group established and

becomes majority shareholder

November 2011 Capital increase (W1.12tr)

December 2014Majority shareholder changed to KDB Bank / KoFC, KDBFG and KDB Bank merged

(As of 31 December 2014, common shares)

11

(Unit : Wbn)FY2012 FY2013 2014 2015

FY12 FY13 20142015

(YTD)1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

Net Operating Revenue 166.8 211.5 150.7 182.0 130.4 124.4 108.1 178.0 183.7 210.4 226.6 302.3 313.2 218.8 711.1 362.9 798.7 834.4

Brokerage 57.5 66.2 58.1 59.8 67.6 58.3 52.4 55.3 53.6 65.6 62.0 78.0 111.9 94.5 241.5 178.3 236.6 284.5

Wealth Management 23.9 25.2 25.2 27.7 25.1 23.5 24.9 23.7 24.4 25.7 23.2 28.8 32.7 29.5 101.9 73.4 97.0 90.9

Investment Banking 6.9 9.3 9.8 10.5 14.2 9.9 19.2 11.8 15.7 12.3 19.1 12.8 31.2 22.0 36.5 43.4 58.8 65.9

Sales & Trading 36.1 91.2 31.1 51.6 2.9 15.9 18.9 49.4 46.2 72.0 47.3 134.5 95.8 43.3 210.0 37.6 214.9 273.6

Interest Income 40.9 37.0 32.0 32.3 33.2 26.0 24.6 29.8 37.9 30.5 59.2 38.6 39.8 31.7 142.2 83.8 157.5 110.0

Others 5.8 △12.3 0.5 4.2 △5.3 △2.9 △23.6 12.6 11.5 9.5 21.2 12.8 11.7 0.9 △1.9 △31.8 54.9 25.4

Commission Expenses △4.3 △4.9 △5.9 △4.1 △7.3 △6.2 △8.3 △4.7 △5.7 △5.2 △5.4 △3.1 △9.7 △3.1 △19.2 △21.8 △21.0 △15.9

SG&A Expenses 138.2 142.2 135.0 132.3 126.6 127.6 144.1 116.6 119.4 71.5 220.3 159.8 159.6 137.0 547.7 398.3 527.9 456.3

Operating Profit 28.6 69.4 15.8 49.6 3.8 △3.2 △36.0 61.3 64.3 138.9 6.3 142.5 153.7 81.8 163.4 △35.4 270.8 378.0

Net Non-operating Income 8.8 6.6 △0.7 1.5 3.4 3.7 △7.8 0.4 2.8 △5.4 5.2 2.6 1.5 △11.5 16.1 △0.6 3.0 △7.4

Net Income before Tax 37.4 76.0 15.0 51.1 7.2 0.6 △43.8 61.8 67.1 133.5 11.5 145.2 155.1 70.4 179.5 △36.0 273.8 370.7

Income Tax Expense △6.4 △17.3 △5.0 △7.2 0.1 △5.8 13.1 △15.7 △15.2 △35.4 △1.7 △34.1 △36.7 △14.9 △35.8 7.3 △68.0 △85.8

Net Income 31.0 58.7 10.1 43.9 7.2 △5.5 △30.9 46.0 51.6 97.9 9.7 111.0 118.4 55.4 143.7 △29.2 205.2 284.9

Balance Sheet (Wtr)

Total Assets 23.2 25.8 23.7 25.4 26.4 27.5 26.0 27.5 28.2 28.4 30.6 34.2 34.9 35.2 25.4 26.0 30.6 35.2

Total Liabilities 19.2 21.7 19.7 21.4 22.4 23.5 22.1 23.5 24.2 24.3 26.4 30.0 30.6 30.8 21.4 22.1 26.4 30.8

Shareholders’ Equity 3.9 4.0 4.0 4.1 4.0 4.0 3.9 4.0 4.0 4.1 4.2 4.2 4.3 4.4 4.1 3.9 4.2 4.4

Net Capital Ratio (NCR) 546% 506% 535% 488% 519% 520% 511% 505% 449% 422% 428% 932% 953% 939% 488% 511% 428% 939%

Net Capital 2,950 3,050 3,070 3,186 3,067 3,012 2,929 3,065 2,925 2,983 3,174 3,199 3,303 3,339 3,186 2,929 3,174 3,339

Total Risk Amount 540 603 574 652 591 579 573 607 651 708 742 694 741 816 652 573 742 816

12

* Net income refers to net income attributable to controlling interests

* The new NCR formula was applied from 1Q 2015, new NCR formula = (net operating capital-gross risks)/sum of equity capital required to maintain each business unit’s license (W268.8bn) * 100

Investor Relations Team Junsoo Kim, Youngbae Shin, Minjeun Lee, Jieun Lee irteam@dwsec.com | www.kdbdw.com

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