Inventory Turns COGS/Average Inventory (Or Year End Inventory)

Gross Margin (Net Revenue COGS)/Net Revenue

Current Ratio Current Assets/Current Liabilities

Quick Ratio (Current Assets-Inventory)/Current Liabilities

Assets \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|l|}{ Current assets } \\ \hline Cash and cash equivalents & 4,7,8 & 4,780,244 & 5,231,504 \\ \hline Short-term financial instruments & 4,7,8 & 1,210,213 & 1,573,559 \\ \hline Financial assets at fair value through profit or loss & 4,5,7,10 & 565,644 & 305,060 \\ \hline Derivative financial assets & 4,5,7,10,26 & 351 & 352 \\ \hline Trade receivables & 4,7,10 & 440,899 & 398,117 \\ \hline Other current financial assets & 4,7,10 & 361,873 & 319,120 \\ \hline Inventories & 15 & 160,328 & 91,808 \\ \hline Other current assets & 14 & 236,180 & 182,674 \\ \hline & & 7,755,732 & 8,102,194 \\ \hline Non-current assets & & & \\ \hline Long-term financial instruments & 4,7,8 & 10,131 & 10,139 \\ \hline \begin{tabular}{l} Financial assets at fair value through profit or \\ loss \end{tabular} & 4,5,7,10 & 502,078 & 302,249 \\ \hline \begin{tabular}{l} Financial assets at fair value through other \\ comprehensive income \end{tabular} & 5,7,10 & 1,449,567 & 1,219,163 \\ \hline Investments in associates and joint venture & 16 & 2,651,898 & 3,215,802 \\ \hline Non-current derivatives assets & 4,5,7,10,26 & 6,211 & \\ \hline Other non-current financial assets & 4,7,10 & 269,788 & 144,002 \\ \hline Property and equipment & 17 & 885,397 & 554,916 \\ \hline Intangible assets & 19 & 6,022,352 & 6,347,795 \\ \hline Investment property & 18 & 20,878 & 101,296 \\ \hline Right-of-use assets & 20 & 1,715,592 & 1,399,234 \\ \hline Net defined benefit assets & 22 & 69,448 & 6,297 \\ \hline Other non-current assets & 14 & 353,770 & 339,173 \\ \hline Deferred income tax assets & 24 & 493,820 & 71,920 \\ \hline & & 14,450,931 & 13,711,986 \\ \hline Assets of financial services business & & & \\ \hline Cash and cash equivalents & 4,7,8 & 55,665 & 94,196 \\ \hline Deposits & 4,7,8 & 66,511 & 247,755 \\ \hline \begin{tabular}{l} Financial assets at fair value through profit or \\ loss \end{tabular} & 4,5,7,10 & 496,616 & 495,952 \\ \hline Financial assets at amortized cost & 4,7 & 16,175 & - \\ \hline Property and equipment & 17 & 15,037 & 11,782 \\ \hline Intangible assets & 19,39 & 70,561 & 33,228 \\ \hline Right-of-use assets & 20 & 3,093 & 11,200 \\ \hline Retirement plan assets & 22 & 289 & - \\ \hline Reinsurance assets & & 108 & - \\ \hline Other financial assets & 4,7,10 & 15,590 & 30,498 \\ \hline Other assets & 14 & 17,181 & 40,768 \\ \hline & & 756,828 & 965,379 \\ \hline Total assets & & 22,963,492 & 22,779,559 \\ \hline \end{tabular} Liabilities Current Liabilities Trade and other payables Short-term borrowings Deposits received Other current financial liabilities Income tax payable Provisions Derivative financial liabilities Short-term lease liabilities Other current liabilities Non-current liabilities Non-current trade and other payables Long-term borrowings Non-current provisions Long-term lease liabilities Net defined benefit liabilities Other long-term employee benefits liabilities Non-current derivative financial liabilities Deferred income tax liabilities Other non-current financial liabilities Other non-current liabilities Liabilities of financial services business Deposits received Net defined benefit liabilities Other long-term employee benefit liabilities Provisions Insurance contract liabilities Lease liabilities Other financial liabilities Other liabilities Total liabilities Equity Share capital Share premium Other components of equity Accumulated other comprehensive income(loss) Retained earnings Equity attributable to owners of the Parent Company Non-controlling interests Total equity Total liabilities and equity \begin{tabular}{|c|c|c|} \hline 4,7,12 & 1,373,954 & 1,230,985 \\ \hline 4,7,21,37 & 1,096,884 & 1,258,828 \\ \hline 4,7,13 & 442,303 & 384,150 \\ \hline 4,7,13 & 38,623 & 653,737 \\ \hline 24 & 157,670 & 188,902 \\ \hline 25 & 20,574 & 11,243 \\ \hline 5,7,26 & 9,573 & 11,912 \\ \hline 4,20,37 & 244,391 & 169,531 \\ \hline \multirow[t]{2}{*}{14} & 1,764,354 & 1,720,986 \\ \hline & 5,148,327 & 5,630,274 \\ \hline 4,7,12 & 110,592 & 63,708 \\ \hline 4,7,21,37 & 1,176,181 & 553,054 \\ \hline 25 & 70,152 & 51,934 \\ \hline 4,20,37 & 1,643,416 & 1,318,155 \\ \hline 22 & 18,514 & - \\ \hline 23 & 73,168 & 67,927 \\ \hline 5,7,26 & 3,540 & \\ \hline 24 & 652,641 & 756,812 \\ \hline 4,7,13 & 25,620 & 43,010 \\ \hline \multirow[t]{2}{*}{14} & 70,105 & 30,495 \\ \hline & 3,843,929 & 2,885,095 \\ \hline 4,7,13 & 394,287 & 598,311 \\ \hline 22 & - & 338 \\ \hline 23 & 2,342 & 1,020 \\ \hline \multirow[t]{2}{*}{25} & 1,124 & 1,151 \\ \hline & 190 & \\ \hline 4,20,37 & 2,327 & 10,266 \\ \hline 4,5,7,13 & 33,213 & 49,080 \\ \hline \multirow[t]{3}{*}{14} & 5,890 & 14,052 \\ \hline & 439,373 & 674,218 \\ \hline & 9,431,629 & 9,189,587 \\ \hline \end{tabular} \begin{tabular}{crrr} 1,27 & W & 44,641 \\ 27 & & 44,952 & 7,781,245 \\ 29 & & 8,115,902 & 77,071 \\ 30 & & 41,031 & 371,824 \\ 31 & (1,250,708) & 1,709,599 \\ \cline { 2 - 3 } & 3,046,458 & 9,984,380 \\ & 9,997,276 & 3,605,592 \\ \cline { 2 - 3 } & 3,534,587 & 13,589,972 \\ \cline { 2 - 3 } & 13,531,862 & 22,779,559 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline (in millions of Korean won, except per share amounts) & \multicolumn{2}{|l|}{ Note } & 2022 & 2021 \\ \hline Revenue & 6,11 & W & 7,106,837 & 6,136,669 \\ \hline \begin{tabular}{l} Operating expenses \\ Bad debt expense \\ Other operating expenses \end{tabular} & 32 & & \begin{tabular}{r} 6,526,521 \\ 10,795 \\ 6,515,726 \\ \end{tabular} & \begin{tabular}{r} 5,541,752 \\ 3,558 \\ 5,538,194 \\ \end{tabular} \\ \hline Operating profit & & & 580,316 & 594,916 \\ \hline Other non-operating income & 33 & & 2,013,527 & 1,733,429 \\ \hline Other non-operating expenses & 33 & & 1,111,461 & 407,247 \\ \hline Finance income & 34 & & 342,770 & 177,819 \\ \hline Interest income & & & 122,729 & 36,889 \\ \hline Other finance income & & & 220,041 & 140,930 \\ \hline Finance costs & 34 & & 463,160 & 315,317 \\ \hline Share of income of associates and joint venture & 16 & & 100,294 & 596,401 \\ \hline Share of loss of associates and joint venture & 16 & & 157,923 & 86,308 \\ \hline Profit before income tax & 6 & & 1,304,363 & 2,293,693 \\ \hline Income tax expense & 24 & & 241,786 & 647,540 \\ \hline Profit for the year & & & 1,062,578 & 1,646,153 \\ \hline Profit attributable to: & & & & \\ \hline \begin{tabular}{l} Equity holders of the Parent Company \\ Non-controlling interest \end{tabular} & & & \begin{tabular}{r} 1,352,936 \\ (290,358) \\ \end{tabular} & \begin{tabular}{r} 1,392,152 \\ 254,001 \\ \end{tabular} \\ \hline \begin{tabular}{l} Other comprehensive income \\ Items not to be reclassified subsequently to profit or loss: \end{tabular} & & & & \\ \hline Remeasurement of net defined benefit liabilities & & & (2,212) & (5,968) \\ \hline \begin{tabular}{l} Gain (loss) on valuation of equity instruments at fair value \\ through other comprehensive income \end{tabular} & & & (1,728,675) & 368,152 \\ \hline \begin{tabular}{l} Share of other comprehensive income (loss) of \\ associates, net of tax \end{tabular} & & & (50,961) & 33,127 \\ \hline Revaluation surplus & & & - & (1,126) \\ \hline Items to be reclassified subsequently to profit or loss: & & & & \\ \hline \begin{tabular}{l} Share of other comprehensive income (loss) of \\ associates, net of tax \end{tabular} & & & 1,927 & 1,290 \\ \hline \begin{tabular}{l} Change of retained earnings in equity method \\ Foreign currency translation adjustments, net of tax \end{tabular} & & & 49,085 & \begin{tabular}{r} (624) \\ 36,950 \\ \end{tabular} \\ \hline \begin{tabular}{l} Other comprehensive income(loss) for the year, \\ net of tax \end{tabular} & & & (1,730,837) & 431,801 \\ \hline Total comprehensive income(loss) for the year & & W & (668,259) & 2,077,954 \\ \hline \begin{tabular}{l} Total comprehensive income(loss) for the year is \\ attributable to: \end{tabular} & & & & \\ \hline \begin{tabular}{l} Equity holders of the Parent Company \\ Non-controlling interest \end{tabular} & & W & \begin{tabular}{l} (268,602) \\ (399,657) \end{tabular} & \begin{tabular}{r} 1,691,423 \\ 386,531 \end{tabular} \\ \hline \begin{tabular}{l} Earnings per share to the equity holders \\ of the Parent Company (in Korean won) \end{tabular} & & & & \\ \hline Basic earnings per share & 35 & W & 3,106 & 3,221 \\ \hline Diluted earnings per share & 35 & & 3,055 & 3,146 \\ \hline \end{tabular} Attributable to equity holders of the Parent Company (in millions of Korean won) Balance at January 1, 2021 Comprehensive income : Profit for the year Foreign currency translation adjustments, net of tax Share of other comprehensive loss of associates, net of tax Share or retained earnings of associates Gain (loss) on valuation of financial instruments at fair value through other comprehensive income Reclassification of gain on valuation of financial instruments at fair value through other comprehensive income Changes in revaluation surplus Remeasurement of employee benefits 22,30 Total comprehensive income for the year Transactions with equity holders: Exercise of stock options Share-based compensation Conversion of convertible bonds Exchange of exchangeable bond Cash dividends Change in ownership interest over subsidiaries Change in scope of consolidation Total transactions with equity holders Balance at December 31, 2021 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[t]{2}{*}{ Note } & \multicolumn{2}{|c|}{\begin{tabular}{c} Share \\ capital \end{tabular}} & \multirow{2}{*}{\begin{tabular}{c} \begin{tabular}{c} Share \\ premium \end{tabular} \\ 5,833,100 \end{tabular}} & \multirow{2}{*}{\begin{tabular}{r} \begin{tabular}{c} Other \\ components \\ of equity \end{tabular} \\ 18,617 \end{tabular}} & \multirow{2}{*}{\begin{tabular}{c} \begin{tabular}{c} Accumulated \\ other comprehensive \\ income (loss) \end{tabular} \\ 86,577 \end{tabular}} & \multirow{2}{*}{\begin{tabular}{r} \begin{tabular}{r} Retained \\ earnings \end{tabular} \\ 316,325 \end{tabular}} & \multirow{2}{*}{6,298,920Total} & \multirow{2}{*}{\begin{tabular}{c} \begin{tabular}{c} Non- \\ controlling \\ interest \end{tabular} \\ 1,128,809 \end{tabular}} & \multirow{2}{*}{\begin{tabular}{c} \begin{tabular}{c} Total \\ equity \end{tabular} \\ 7,427,729 \end{tabular}} \\ \hline & W & 44,301 & & & & & & & \\ \hline & & - & - & - & - & 1,392,152 & 1,392,152 & 254,001 & 1,646,153 \\ \hline 30 & & - & - & - & 26,680 & - & 26,680 & 10,271 & 36,951 \\ \hline \multirow[t]{2}{*}{16,30} & & - & - & - & 15,548 & - & 15,548 & 18,869 & 34,417 \\ \hline & & & & & & (624) & (624) & & (624) \\ \hline 30 & & - & - & - & 262,743 & - & 262,743 & 105,409 & 368,152 \\ \hline 30 & & - & - & \begin{tabular}{l} - \\ - \end{tabular} & (14,647) & 14,647 & - & - & - \\ \hline 30 & & - & - & - & (1,126) & - & (1,126) & & (1,126) \\ \hline \multirow[t]{2}{*}{22,30} & & \begin{tabular}{l} - \\ \end{tabular} & \begin{tabular}{l} - \\ \end{tabular} & \begin{tabular}{l} - \\ \end{tabular} & (3,951) & 1 & (3,950) & (2,018) & (5,968) \\ \hline & & - & - & - & 285,247 & 1,406,176 & 1,691,423 & 386,532 & 2,077,954 \\ \hline 27,28 & & 264 & 286,790 & (27,134) & - & - & 259,920 & 25,767 & 285,687 \\ \hline 28 & & - & - & 80,652 & - & - & 80,652 & 44,401 & 125,053 \\ \hline 21,27 & & 76 & 17,914 & - & - & - & 17,990 & - & 17,990 \\ \hline 21 & & - & 10,262 & - & - & - & 10,262 & - & 10,262 \\ \hline \multirow[t]{5}{*}{36} & & - & - & - & - & (12,902) & (12,902) & - & (12,902) \\ \hline & & - & 1,621,416 & - & - & - & 1,621,416 & 1,925,932 & 3,547,347 \\ \hline & & \begin{tabular}{c} - \\ \end{tabular} & 11,764 & 4,936 & - & - & 16,700 & 94,152 & 110,852 \\ \hline & & 340 & 1,948,145 & 58,453 & - & (12,902) & 1,994,037 & 2,090,252 & 4,084,289 \\ \hline & W & 44,641 & 7,781,245 & 77,070 & 371,825 & 1,709,599 & 9,984,380 & 3,605,593 & 13,589,972 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ (in millions of Korean won) } & \multirow[b]{2}{*}{ Note } & \multicolumn{6}{|c|}{ Attributable to equity holders of the Parent Company } & \multirow[b]{2}{*}{\begin{tabular}{c} Non- \\ controlling \\ interest \end{tabular}} & \multirow[b]{2}{*}{\begin{tabular}{l} Total \\ equity \end{tabular}} \\ \hline & & \begin{tabular}{l} Share \\ capital \end{tabular} & \begin{tabular}{c} Share \\ premium \end{tabular} & \begin{tabular}{c} Other \\ components \\ of equity \end{tabular} & \begin{tabular}{c} Accumulated \\ other comprehensive \\ income (loss) \end{tabular} & \begin{tabular}{l} Retained \\ earnings \end{tabular} & Total & & \\ \hline \begin{tabular}{l} Balance at January 1, 2022 \\ Comprehensive income : \end{tabular} & & W 44,641 & 7,781,245 & 77,071 & 371,824 & 1,709,599 & 9,984,380 & 3,605,592 & 13,589,972 \\ \hline Profit for the year & & - & - & - & - & 1,352,936 & 1,352,936 & (290,358) & 1,062,578 \\ \hline \begin{tabular}{l} Foreign currency translation \\ adjustments, net of tax \end{tabular} & 30 & - & \begin{tabular}{c} - \\ - \end{tabular} & - & 33,987 & - & 33,987 & 15,097 & 49,085 \\ \hline \begin{tabular}{l} Share of other comprehensive loss \\ of associates, net of tax \end{tabular} & 16,30 & - & - & - & (31,345) & - & (31,345) & (17,689) & (49,034) \\ \hline \begin{tabular}{l} Gain (loss) on valuation of financial \\ instruments at fair value through other \\ comprehensive income \end{tabular} & 30 & - & - & - & (1,622,830) & - & (1,622,830) & (105,845) & (1,728,675) \\ \hline \begin{tabular}{l} Reclassification of gain on valuation of \\ financial instruments at fair value through \\ other comprehensive income \end{tabular} & 30 & - & - & - & (991) & 991 & - & - & - \\ \hline Remeasurement of employee benefits & 22,30 & - & - & - & (1,354) & 5 & (1,349) & (862) & (2,212) \\ \hline Total comprehensive income for the year & & z & z & & (1,622,533) & 1,353,931 & (268,602) & (399,657) & (668,259) \\ \hline olders: & & & & & & & & & \\ \hline \begin{tabular}{l} Exercise of stock options \\ Share-based compensation \end{tabular} & \begin{tabular}{c} 27,28 \\ 28 \end{tabular} & 276 & & \begin{tabular}{r} (39,607) \\ 84,564 \end{tabular} & \begin{tabular}{l} - \\ - \end{tabular} & \begin{tabular}{l} - \\ - \end{tabular} & \begin{tabular}{l} 71,041 \\ 84,564 \end{tabular} & \begin{tabular}{l} 41,273 \\ 74,584 \end{tabular} & \begin{tabular}{l} 112,314 \\ 159,148 \end{tabular} \\ \hline \begin{tabular}{l} Share-based compensation \\ Retirement of treasury stocks \end{tabular} & 21,27 & (324) & 81,317 & (80,996) & - & - & (2) & 14,004 & \begin{aligned} 159,148 \\ \( (2)\end{aligned} \) \\ \hline Cash dividends & 36 & - & - & - & - & (22,990) & (22,990) & - & (22,990) \\ \hline \begin{tabular}{l} Change in ownership interest \\ over subsidiaries \end{tabular} & & - & (23,205) & - & - & - & (23,205) & 101,796 & 78,590 \\ \hline Change share premium to retained earnings & & - & (5,918) & - & - & 5,918 & - & - & - \\ \hline Change in scope of consolidation & & - & (11,461) & - & - & - & (11,461) & (25,744) & (37,204) \\ \hline Changes in corporate tax effect & & - & 183,551 & - & - & - & 183,551 & 136,742 & 320,293 \\ \hline Total transactions with equity holders & & (48) & 334,657 & (36,039) & - & (17,072) & 281,498 & 328,651 & 610,149 \\ \hline Balance at December 31, 2022 & & \# 44,592 & 8,115,902 & 41,031 & (1,250,708) & 3,046,458 & 9,997,276 & 3,534,587 & 13,531,862 \\ \hline \end{tabular} (in millions of Korean won) Cash flows from operating activities Cash generated from operations Interest received Interest paid Dividend received Income tax paid Net cash inflow from operating activities Cash flows from investing activities Increase in short-term financial instruments Decrease (increase) in long-term financial instruments Purchase of property and equipment Disposal of property and equipment Purchase of intangible assets Disposal of intangible assets Acquisition of financial assets at fair value through profit or loss Disposal of financial assets at fair value through profit or loss Acquisition of financial assets at fair value through other comprehensive income Disposal of financial assets at fair value through other comprehensive income Acquisition of associates and joint ventures Disposal of associates and joint ventures Acquisition of subsidiaries, net of cash acquired Disposal of subsidiaries, net of cash transferred Decrease (increase) in other current financial assets Increase in other non-current financial assets Decrease in financial liabilities at fair value through profit or loss Cash outflow from transfer of business Other cash outflow from investing activities Net cash outflow from investing activities Cash flows from financing activities Proceeds from short-term borrowings Repayments of short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Principal elements of lease payments Exercise of stock options Payments of dividends Cash inflows from transactions with non-controlling interests Cash outflows from transactions with non-controlling interests Other cash flows from financing activities Net cash inflow from financing activities Note 2022 2021 \begin{tabular}{rr} 342,616 & (886,796) \\ 7 & 35 \\ (452,916) & (216,219) \\ 14,340 & 3,506 \\ (189,960) & (154,485) \\ 99,340 & 78,083 \\ (2,161,219) & (1,189,751) \\ 1,744,502 & 993,407 \\ (63,014) & (36,281) \\ & \\ 43,396 & 294 \\ (58,343) & (679,860) \\ 79,372 & 177,652 \\ (174,036) & (1,223,774) \\ 34,851 & 2,435 \\ 18,982 & (39,136) \\ (66,252) & (87,996) \\ (754,073) & \\ - & (38,229) \\ (31,698) & (43,894) \\ \hline(1,574,105) & (3,341,009) \\ \hline & \\ 1,263,672 & 1,184,504 \\ (1,560,734) & (456,913) \\ 710,478 & 518,562 \\ (413) & (6,350) \\ (148,175) & (105,689) \\ 72,490 & 64,551 \\ (22,990) & (12,902) \\ 281,706 & 3,409,728 \\ (209,035) & (159,581) \\ 24,822 & 5,256 \\ \hline 411,821 & 4,441,166 \\ \hline & \\ \hline & \end{tabular} KAKAO CORP. AND SUBSIDIAIRIES Consolidated Statements of Cash Flows, Continued For the years ended December 31, 2022 and 2021 Assets \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|l|}{ Current assets } \\ \hline Cash and cash equivalents & 4,7,8 & 4,780,244 & 5,231,504 \\ \hline Short-term financial instruments & 4,7,8 & 1,210,213 & 1,573,559 \\ \hline Financial assets at fair value through profit or loss & 4,5,7,10 & 565,644 & 305,060 \\ \hline Derivative financial assets & 4,5,7,10,26 & 351 & 352 \\ \hline Trade receivables & 4,7,10 & 440,899 & 398,117 \\ \hline Other current financial assets & 4,7,10 & 361,873 & 319,120 \\ \hline Inventories & 15 & 160,328 & 91,808 \\ \hline Other current assets & 14 & 236,180 & 182,674 \\ \hline & & 7,755,732 & 8,102,194 \\ \hline Non-current assets & & & \\ \hline Long-term financial instruments & 4,7,8 & 10,131 & 10,139 \\ \hline \begin{tabular}{l} Financial assets at fair value through profit or \\ loss \end{tabular} & 4,5,7,10 & 502,078 & 302,249 \\ \hline \begin{tabular}{l} Financial assets at fair value through other \\ comprehensive income \end{tabular} & 5,7,10 & 1,449,567 & 1,219,163 \\ \hline Investments in associates and joint venture & 16 & 2,651,898 & 3,215,802 \\ \hline Non-current derivatives assets & 4,5,7,10,26 & 6,211 & \\ \hline Other non-current financial assets & 4,7,10 & 269,788 & 144,002 \\ \hline Property and equipment & 17 & 885,397 & 554,916 \\ \hline Intangible assets & 19 & 6,022,352 & 6,347,795 \\ \hline Investment property & 18 & 20,878 & 101,296 \\ \hline Right-of-use assets & 20 & 1,715,592 & 1,399,234 \\ \hline Net defined benefit assets & 22 & 69,448 & 6,297 \\ \hline Other non-current assets & 14 & 353,770 & 339,173 \\ \hline Deferred income tax assets & 24 & 493,820 & 71,920 \\ \hline & & 14,450,931 & 13,711,986 \\ \hline Assets of financial services business & & & \\ \hline Cash and cash equivalents & 4,7,8 & 55,665 & 94,196 \\ \hline Deposits & 4,7,8 & 66,511 & 247,755 \\ \hline \begin{tabular}{l} Financial assets at fair value through profit or \\ loss \end{tabular} & 4,5,7,10 & 496,616 & 495,952 \\ \hline Financial assets at amortized cost & 4,7 & 16,175 & - \\ \hline Property and equipment & 17 & 15,037 & 11,782 \\ \hline Intangible assets & 19,39 & 70,561 & 33,228 \\ \hline Right-of-use assets & 20 & 3,093 & 11,200 \\ \hline Retirement plan assets & 22 & 289 & - \\ \hline Reinsurance assets & & 108 & - \\ \hline Other financial assets & 4,7,10 & 15,590 & 30,498 \\ \hline Other assets & 14 & 17,181 & 40,768 \\ \hline & & 756,828 & 965,379 \\ \hline Total assets & & 22,963,492 & 22,779,559 \\ \hline \end{tabular} Liabilities Current Liabilities Trade and other payables Short-term borrowings Deposits received Other current financial liabilities Income tax payable Provisions Derivative financial liabilities Short-term lease liabilities Other current liabilities Non-current liabilities Non-current trade and other payables Long-term borrowings Non-current provisions Long-term lease liabilities Net defined benefit liabilities Other long-term employee benefits liabilities Non-current derivative financial liabilities Deferred income tax liabilities Other non-current financial liabilities Other non-current liabilities Liabilities of financial services business Deposits received Net defined benefit liabilities Other long-term employee benefit liabilities Provisions Insurance contract liabilities Lease liabilities Other financial liabilities Other liabilities Total liabilities Equity Share capital Share premium Other components of equity Accumulated other comprehensive income(loss) Retained earnings Equity attributable to owners of the Parent Company Non-controlling interests Total equity Total liabilities and equity \begin{tabular}{|c|c|c|} \hline 4,7,12 & 1,373,954 & 1,230,985 \\ \hline 4,7,21,37 & 1,096,884 & 1,258,828 \\ \hline 4,7,13 & 442,303 & 384,150 \\ \hline 4,7,13 & 38,623 & 653,737 \\ \hline 24 & 157,670 & 188,902 \\ \hline 25 & 20,574 & 11,243 \\ \hline 5,7,26 & 9,573 & 11,912 \\ \hline 4,20,37 & 244,391 & 169,531 \\ \hline \multirow[t]{2}{*}{14} & 1,764,354 & 1,720,986 \\ \hline & 5,148,327 & 5,630,274 \\ \hline 4,7,12 & 110,592 & 63,708 \\ \hline 4,7,21,37 & 1,176,181 & 553,054 \\ \hline 25 & 70,152 & 51,934 \\ \hline 4,20,37 & 1,643,416 & 1,318,155 \\ \hline 22 & 18,514 & - \\ \hline 23 & 73,168 & 67,927 \\ \hline 5,7,26 & 3,540 & \\ \hline 24 & 652,641 & 756,812 \\ \hline 4,7,13 & 25,620 & 43,010 \\ \hline \multirow[t]{2}{*}{14} & 70,105 & 30,495 \\ \hline & 3,843,929 & 2,885,095 \\ \hline 4,7,13 & 394,287 & 598,311 \\ \hline 22 & - & 338 \\ \hline 23 & 2,342 & 1,020 \\ \hline \multirow[t]{2}{*}{25} & 1,124 & 1,151 \\ \hline & 190 & \\ \hline 4,20,37 & 2,327 & 10,266 \\ \hline 4,5,7,13 & 33,213 & 49,080 \\ \hline \multirow[t]{3}{*}{14} & 5,890 & 14,052 \\ \hline & 439,373 & 674,218 \\ \hline & 9,431,629 & 9,189,587 \\ \hline \end{tabular} \begin{tabular}{crrr} 1,27 & W & 44,641 \\ 27 & & 44,952 & 7,781,245 \\ 29 & & 8,115,902 & 77,071 \\ 30 & & 41,031 & 371,824 \\ 31 & (1,250,708) & 1,709,599 \\ \cline { 2 - 3 } & 3,046,458 & 9,984,380 \\ & 9,997,276 & 3,605,592 \\ \cline { 2 - 3 } & 3,534,587 & 13,589,972 \\ \cline { 2 - 3 } & 13,531,862 & 22,779,559 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline (in millions of Korean won, except per share amounts) & \multicolumn{2}{|l|}{ Note } & 2022 & 2021 \\ \hline Revenue & 6,11 & W & 7,106,837 & 6,136,669 \\ \hline \begin{tabular}{l} Operating expenses \\ Bad debt expense \\ Other operating expenses \end{tabular} & 32 & & \begin{tabular}{r} 6,526,521 \\ 10,795 \\ 6,515,726 \\ \end{tabular} & \begin{tabular}{r} 5,541,752 \\ 3,558 \\ 5,538,194 \\ \end{tabular} \\ \hline Operating profit & & & 580,316 & 594,916 \\ \hline Other non-operating income & 33 & & 2,013,527 & 1,733,429 \\ \hline Other non-operating expenses & 33 & & 1,111,461 & 407,247 \\ \hline Finance income & 34 & & 342,770 & 177,819 \\ \hline Interest income & & & 122,729 & 36,889 \\ \hline Other finance income & & & 220,041 & 140,930 \\ \hline Finance costs & 34 & & 463,160 & 315,317 \\ \hline Share of income of associates and joint venture & 16 & & 100,294 & 596,401 \\ \hline Share of loss of associates and joint venture & 16 & & 157,923 & 86,308 \\ \hline Profit before income tax & 6 & & 1,304,363 & 2,293,693 \\ \hline Income tax expense & 24 & & 241,786 & 647,540 \\ \hline Profit for the year & & & 1,062,578 & 1,646,153 \\ \hline Profit attributable to: & & & & \\ \hline \begin{tabular}{l} Equity holders of the Parent Company \\ Non-controlling interest \end{tabular} & & & \begin{tabular}{r} 1,352,936 \\ (290,358) \\ \end{tabular} & \begin{tabular}{r} 1,392,152 \\ 254,001 \\ \end{tabular} \\ \hline \begin{tabular}{l} Other comprehensive income \\ Items not to be reclassified subsequently to profit or loss: \end{tabular} & & & & \\ \hline Remeasurement of net defined benefit liabilities & & & (2,212) & (5,968) \\ \hline \begin{tabular}{l} Gain (loss) on valuation of equity instruments at fair value \\ through other comprehensive income \end{tabular} & & & (1,728,675) & 368,152 \\ \hline \begin{tabular}{l} Share of other comprehensive income (loss) of \\ associates, net of tax \end{tabular} & & & (50,961) & 33,127 \\ \hline Revaluation surplus & & & - & (1,126) \\ \hline Items to be reclassified subsequently to profit or loss: & & & & \\ \hline \begin{tabular}{l} Share of other comprehensive income (loss) of \\ associates, net of tax \end{tabular} & & & 1,927 & 1,290 \\ \hline \begin{tabular}{l} Change of retained earnings in equity method \\ Foreign currency translation adjustments, net of tax \end{tabular} & & & 49,085 & \begin{tabular}{r} (624) \\ 36,950 \\ \end{tabular} \\ \hline \begin{tabular}{l} Other comprehensive income(loss) for the year, \\ net of tax \end{tabular} & & & (1,730,837) & 431,801 \\ \hline Total comprehensive income(loss) for the year & & W & (668,259) & 2,077,954 \\ \hline \begin{tabular}{l} Total comprehensive income(loss) for the year is \\ attributable to: \end{tabular} & & & & \\ \hline \begin{tabular}{l} Equity holders of the Parent Company \\ Non-controlling interest \end{tabular} & & W & \begin{tabular}{l} (268,602) \\ (399,657) \end{tabular} & \begin{tabular}{r} 1,691,423 \\ 386,531 \end{tabular} \\ \hline \begin{tabular}{l} Earnings per share to the equity holders \\ of the Parent Company (in Korean won) \end{tabular} & & & & \\ \hline Basic earnings per share & 35 & W & 3,106 & 3,221 \\ \hline Diluted earnings per share & 35 & & 3,055 & 3,146 \\ \hline \end{tabular} Attributable to equity holders of the Parent Company (in millions of Korean won) Balance at January 1, 2021 Comprehensive income : Profit for the year Foreign currency translation adjustments, net of tax Share of other comprehensive loss of associates, net of tax Share or retained earnings of associates Gain (loss) on valuation of financial instruments at fair value through other comprehensive income Reclassification of gain on valuation of financial instruments at fair value through other comprehensive income Changes in revaluation surplus Remeasurement of employee benefits 22,30 Total comprehensive income for the year Transactions with equity holders: Exercise of stock options Share-based compensation Conversion of convertible bonds Exchange of exchangeable bond Cash dividends Change in ownership interest over subsidiaries Change in scope of consolidation Total transactions with equity holders Balance at December 31, 2021 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[t]{2}{*}{ Note } & \multicolumn{2}{|c|}{\begin{tabular}{c} Share \\ capital \end{tabular}} & \multirow{2}{*}{\begin{tabular}{c} \begin{tabular}{c} Share \\ premium \end{tabular} \\ 5,833,100 \end{tabular}} & \multirow{2}{*}{\begin{tabular}{r} \begin{tabular}{c} Other \\ components \\ of equity \end{tabular} \\ 18,617 \end{tabular}} & \multirow{2}{*}{\begin{tabular}{c} \begin{tabular}{c} Accumulated \\ other comprehensive \\ income (loss) \end{tabular} \\ 86,577 \end{tabular}} & \multirow{2}{*}{\begin{tabular}{r} \begin{tabular}{r} Retained \\ earnings \end{tabular} \\ 316,325 \end{tabular}} & \multirow{2}{*}{6,298,920Total} & \multirow{2}{*}{\begin{tabular}{c} \begin{tabular}{c} Non- \\ controlling \\ interest \end{tabular} \\ 1,128,809 \end{tabular}} & \multirow{2}{*}{\begin{tabular}{c} \begin{tabular}{c} Total \\ equity \end{tabular} \\ 7,427,729 \end{tabular}} \\ \hline & W & 44,301 & & & & & & & \\ \hline & & - & - & - & - & 1,392,152 & 1,392,152 & 254,001 & 1,646,153 \\ \hline 30 & & - & - & - & 26,680 & - & 26,680 & 10,271 & 36,951 \\ \hline \multirow[t]{2}{*}{16,30} & & - & - & - & 15,548 & - & 15,548 & 18,869 & 34,417 \\ \hline & & & & & & (624) & (624) & & (624) \\ \hline 30 & & - & - & - & 262,743 & - & 262,743 & 105,409 & 368,152 \\ \hline 30 & & - & - & \begin{tabular}{l} - \\ - \end{tabular} & (14,647) & 14,647 & - & - & - \\ \hline 30 & & - & - & - & (1,126) & - & (1,126) & & (1,126) \\ \hline \multirow[t]{2}{*}{22,30} & & \begin{tabular}{l} - \\ \end{tabular} & \begin{tabular}{l} - \\ \end{tabular} & \begin{tabular}{l} - \\ \end{tabular} & (3,951) & 1 & (3,950) & (2,018) & (5,968) \\ \hline & & - & - & - & 285,247 & 1,406,176 & 1,691,423 & 386,532 & 2,077,954 \\ \hline 27,28 & & 264 & 286,790 & (27,134) & - & - & 259,920 & 25,767 & 285,687 \\ \hline 28 & & - & - & 80,652 & - & - & 80,652 & 44,401 & 125,053 \\ \hline 21,27 & & 76 & 17,914 & - & - & - & 17,990 & - & 17,990 \\ \hline 21 & & - & 10,262 & - & - & - & 10,262 & - & 10,262 \\ \hline \multirow[t]{5}{*}{36} & & - & - & - & - & (12,902) & (12,902) & - & (12,902) \\ \hline & & - & 1,621,416 & - & - & - & 1,621,416 & 1,925,932 & 3,547,347 \\ \hline & & \begin{tabular}{c} - \\ \end{tabular} & 11,764 & 4,936 & - & - & 16,700 & 94,152 & 110,852 \\ \hline & & 340 & 1,948,145 & 58,453 & - & (12,902) & 1,994,037 & 2,090,252 & 4,084,289 \\ \hline & W & 44,641 & 7,781,245 & 77,070 & 371,825 & 1,709,599 & 9,984,380 & 3,605,593 & 13,589,972 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ (in millions of Korean won) } & \multirow[b]{2}{*}{ Note } & \multicolumn{6}{|c|}{ Attributable to equity holders of the Parent Company } & \multirow[b]{2}{*}{\begin{tabular}{c} Non- \\ controlling \\ interest \end{tabular}} & \multirow[b]{2}{*}{\begin{tabular}{l} Total \\ equity \end{tabular}} \\ \hline & & \begin{tabular}{l} Share \\ capital \end{tabular} & \begin{tabular}{c} Share \\ premium \end{tabular} & \begin{tabular}{c} Other \\ components \\ of equity \end{tabular} & \begin{tabular}{c} Accumulated \\ other comprehensive \\ income (loss) \end{tabular} & \begin{tabular}{l} Retained \\ earnings \end{tabular} & Total & & \\ \hline \begin{tabular}{l} Balance at January 1, 2022 \\ Comprehensive income : \end{tabular} & & W 44,641 & 7,781,245 & 77,071 & 371,824 & 1,709,599 & 9,984,380 & 3,605,592 & 13,589,972 \\ \hline Profit for the year & & - & - & - & - & 1,352,936 & 1,352,936 & (290,358) & 1,062,578 \\ \hline \begin{tabular}{l} Foreign currency translation \\ adjustments, net of tax \end{tabular} & 30 & - & \begin{tabular}{c} - \\ - \end{tabular} & - & 33,987 & - & 33,987 & 15,097 & 49,085 \\ \hline \begin{tabular}{l} Share of other comprehensive loss \\ of associates, net of tax \end{tabular} & 16,30 & - & - & - & (31,345) & - & (31,345) & (17,689) & (49,034) \\ \hline \begin{tabular}{l} Gain (loss) on valuation of financial \\ instruments at fair value through other \\ comprehensive income \end{tabular} & 30 & - & - & - & (1,622,830) & - & (1,622,830) & (105,845) & (1,728,675) \\ \hline \begin{tabular}{l} Reclassification of gain on valuation of \\ financial instruments at fair value through \\ other comprehensive income \end{tabular} & 30 & - & - & - & (991) & 991 & - & - & - \\ \hline Remeasurement of employee benefits & 22,30 & - & - & - & (1,354) & 5 & (1,349) & (862) & (2,212) \\ \hline Total comprehensive income for the year & & z & z & & (1,622,533) & 1,353,931 & (268,602) & (399,657) & (668,259) \\ \hline olders: & & & & & & & & & \\ \hline \begin{tabular}{l} Exercise of stock options \\ Share-based compensation \end{tabular} & \begin{tabular}{c} 27,28 \\ 28 \end{tabular} & 276 & & \begin{tabular}{r} (39,607) \\ 84,564 \end{tabular} & \begin{tabular}{l} - \\ - \end{tabular} & \begin{tabular}{l} - \\ - \end{tabular} & \begin{tabular}{l} 71,041 \\ 84,564 \end{tabular} & \begin{tabular}{l} 41,273 \\ 74,584 \end{tabular} & \begin{tabular}{l} 112,314 \\ 159,148 \end{tabular} \\ \hline \begin{tabular}{l} Share-based compensation \\ Retirement of treasury stocks \end{tabular} & 21,27 & (324) & 81,317 & (80,996) & - & - & (2) & 14,004 & \begin{aligned} 159,148 \\ \( (2)\end{aligned} \) \\ \hline Cash dividends & 36 & - & - & - & - & (22,990) & (22,990) & - & (22,990) \\ \hline \begin{tabular}{l} Change in ownership interest \\ over subsidiaries \end{tabular} & & - & (23,205) & - & - & - & (23,205) & 101,796 & 78,590 \\ \hline Change share premium to retained earnings & & - & (5,918) & - & - & 5,918 & - & - & - \\ \hline Change in scope of consolidation & & - & (11,461) & - & - & - & (11,461) & (25,744) & (37,204) \\ \hline Changes in corporate tax effect & & - & 183,551 & - & - & - & 183,551 & 136,742 & 320,293 \\ \hline Total transactions with equity holders & & (48) & 334,657 & (36,039) & - & (17,072) & 281,498 & 328,651 & 610,149 \\ \hline Balance at December 31, 2022 & & \# 44,592 & 8,115,902 & 41,031 & (1,250,708) & 3,046,458 & 9,997,276 & 3,534,587 & 13,531,862 \\ \hline \end{tabular} (in millions of Korean won) Cash flows from operating activities Cash generated from operations Interest received Interest paid Dividend received Income tax paid Net cash inflow from operating activities Cash flows from investing activities Increase in short-term financial instruments Decrease (increase) in long-term financial instruments Purchase of property and equipment Disposal of property and equipment Purchase of intangible assets Disposal of intangible assets Acquisition of financial assets at fair value through profit or loss Disposal of financial assets at fair value through profit or loss Acquisition of financial assets at fair value through other comprehensive income Disposal of financial assets at fair value through other comprehensive income Acquisition of associates and joint ventures Disposal of associates and joint ventures Acquisition of subsidiaries, net of cash acquired Disposal of subsidiaries, net of cash transferred Decrease (increase) in other current financial assets Increase in other non-current financial assets Decrease in financial liabilities at fair value through profit or loss Cash outflow from transfer of business Other cash outflow from investing activities Net cash outflow from investing activities Cash flows from financing activities Proceeds from short-term borrowings Repayments of short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Principal elements of lease payments Exercise of stock options Payments of dividends Cash inflows from transactions with non-controlling interests Cash outflows from transactions with non-controlling interests Other cash flows from financing activities Net cash inflow from financing activities Note 2022 2021 \begin{tabular}{rr} 342,616 & (886,796) \\ 7 & 35 \\ (452,916) & (216,219) \\ 14,340 & 3,506 \\ (189,960) & (154,485) \\ 99,340 & 78,083 \\ (2,161,219) & (1,189,751) \\ 1,744,502 & 993,407 \\ (63,014) & (36,281) \\ & \\ 43,396 & 294 \\ (58,343) & (679,860) \\ 79,372 & 177,652 \\ (174,036) & (1,223,774) \\ 34,851 & 2,435 \\ 18,982 & (39,136) \\ (66,252) & (87,996) \\ (754,073) & \\ - & (38,229) \\ (31,698) & (43,894) \\ \hline(1,574,105) & (3,341,009) \\ \hline & \\ 1,263,672 & 1,184,504 \\ (1,560,734) & (456,913) \\ 710,478 & 518,562 \\ (413) & (6,350) \\ (148,175) & (105,689) \\ 72,490 & 64,551 \\ (22,990) & (12,902) \\ 281,706 & 3,409,728 \\ (209,035) & (159,581) \\ 24,822 & 5,256 \\ \hline 411,821 & 4,441,166 \\ \hline & \\ \hline & \end{tabular} KAKAO CORP. AND SUBSIDIAIRIES Consolidated Statements of Cash Flows, Continued For the years ended December 31, 2022 and 2021