Slide 1: Investor Presentation
Investor Presentation February 2025
Slide 2: Disclaimer
Disclaimer Financial statements included in this document are consolidated results of KRAFTON, Inc. (the “Company”) and its subsidiaries and have been prepared in accordance with K-IFRS. Financial results and operational performance included herein have been prepared for investors’ convenience only
Slide 3: The next 5 years of KRAFTON: Franchise IP
The next 5 years of krafton: Franchise IP
Slide 4: Part 1. The growth and future of PUBG IP Franchise
Part 1. The growth and future of PUBG IP Franchise 4 4
Slide 5: Value of PUBG IP Franchise Proven through Stable Growth and Sustainability
Looking Back on 2024 Value of PUBG IP Franchise Proven through Stable Growth and Sustainability 2024 Message Recap: PUBG IP Key Achievements of 2024 • Strengthening Sustainable Service for Stepwise Growth • Annual Growth Across All Core Services - Continuous service enhancement and content updates -
Slide 6: Growth through Continuous Updates and Enhanced Premium Content after F2P
Growth Drivers of PUBG PC Growth through Continuous Updates and Enhanced Premium Content after F2P1) Localized Content and Marketing Campaigns Collaboration-driven Cultural Experiences Value-centered Premium Content Proactive Community Care Expanding beyond In-game Content to Deliver Comprehensive S
Slide 7: Investing in Content and Services for a Broader Fan Experience
Direction of PUBG IP Franchise Investing in Content and Services for a Broader Fan Experience Investing and Sharing Content for Core Services1) Evolving PUBG PC as a gameplay platform Targeting Updates Sequentially from Late 2025 & Collaboration Core-content Core Enhancement (UE5 Updates) (Music, Ca
Slide 8: Developing New Titles to Attract Potential Fans Across Multiple Platforms and Generations
Direction of PUBG IP Franchise Developing New Titles to Attract Potential Fans Across Multiple Platforms and Generations Black Budget Blindspot (ARC) Valor Unannounced Project PC 18+ 1) PC 15+ Console 18+ Mobile 12+ Extraction Shooter Top-down Tactical Shooter Battle Royale Hybrid Casual Inheriting
Slide 9: Part 2. New growth drivers
Part 2. New growth drivers 9 9
Slide 10: Implementing 'Scale-up the Creative' Strategy and Redefining Long-term Growth
Progress and Developments Implementing ‘Scale-up the Creative’ Strategy and Redefining Long-term Growth 2024 Message Recap: Scale-up the Creative Key Achievements of 2024 • Evolving from ‘Original Creative’ to ‘Scale-up the Creative’ • Ongoing Development of New Titles - inZOI, Dark & Darker Mobile,
Slide 11: Securing Big Franchise IP: Large-Scale Investments for More Attempts
Growth Drivers of KRAFTON Securing Big Franchise IP: Large-Scale Investments for More Attempts 11 11
Slide 12: Resource Allocation Focused on Four Areas for Securing Franchise IP
Potential IP for Investment Resource Allocation Focused on Four Areas for Securing Franchise IP Marketability-Driven Original Creative-Driven Emerging Genre Champions Long-term growth in an area without an ‘Ultimate Game’ Becoming an ‘Ultimate Game’ in markets various in size Infant market with high
Slide 13: Increase in Production & Publishing, while Enhancing Quality and Management System
Strategic Direction Increase in Production & Publishing, while Enhancing Quality and Management System Self Production: Increase in Quantity and Quality Publishing: Increased Volume of New Titles Development Costs1) Increase to KRW 300bn/Year for the Next 5 Years C H A 1PP L Concept/ Vertical Active
Slide 14: The All-out Challenges to Secure Big Franchise IP
Strategic Titles for 2025 The All-out Challenges to Secure Big Franchise IP Genre Life Simulation Genre Extraction RPG Genre Underwater Survival Adventure Genre Frontier Life Simulation Platform PC/Console Platform Mobile Platform PC/Console Platform Multi-platform • PC Early Access in March 2025 •
Slide 15: Discovering New Gameplay through CPC, Investment to Drive Game Innovations
Deep Learning Discovering New Gameplay through CPC, Investment to Drive Game Innovations PUBG IP Franchise: PUBG Ally inZOI: Smart Zoi CPC1) PUBG Ally applies CPC technology to make Smart Zoi is a CPC simulation technology allowing decisions and strategically cooperate with players interaction betwe
Slide 16: Sustaining Long-term Growth and Business Expansion of BGMI
India Sustaining Long-term Growth and Business Expansion of BGMI Broadening BGMI Userbase through Content Updates and Localized Strategies Expanding Publishing Titles for Games with High Potential in India Continued Investment and Exploring New Opportunities 16 16
Slide 17: Aggressive Investment in Production to Secure Key Big Franchise IPs
Conclusion Aggressive Investment in Production to Secure Key Big Franchise IPs Targeting KRW 7tn Revenue & 2X Corporate Value within 5 Years through Long-term Stepwise Growth 17 17
Slide 18: FY2024 & 4Q24 Financial Performance
FY2024 & 4Q24 Financial Performance
Slide 19: Results at a Glance
Record-high Revenue and 41.8% YoY Growth Revenue KRW 2.7 tn driven by Strong PUBG IP Performance 2024 Operating Exceeding Annual OP of KRW 1 trillion and Results at a Glance KRW 1.2 tn 54.0% YoY Growth due to Strong Revenue Growth Profit 5 Year Revenue CAGR of 20% through Various 5-Year CAGR 5 Year
Slide 20: Revenue Breakdown
Revenue Breakdown Revenue (KRW bn) 4Q 2023 3Q 2024 4Q 2024 QoQ YoY FY2023 FY2024 YoY Revenue 534.6 719.3 617.6 -14.1% 15.5% 1,910.6 2,709.8 41.8% 2024 KRW 2,709.8bn (YoY 41.8%↑) PC 167.1 274.3 232.6 -15.2% 39.2% 583.9 941.9 61.3% 4Q24 KRW 617.6bn (QoQ 14.1%↓, YoY 15.5%↑) Mobile 342.7 425.4 362.2 -14
Slide 21: Operating Expenses & Profit
Operating Expenses & Profit Operating Expenses (KRW bn) 4Q 2023 3Q 2024 4Q 2024 QoQ YoY 2023 2024 YoY Operating Costs 370.2 394.9 402.1 1.8% 8.6% 1,142.6 1,527.3 33.7% 2024 KRW 1,527.3bn (YoY 33.7%↑) Personnel 120.9 133.1 132.7 -0.3% 9.7% 427.3 516.8 20.9% 4Q24 KRW 402.1bn (QoQ 1.8%↑, YoY 8.6%↑) Pla
Slide 22: Net Profit
Net Profit Net Profit (KRW bn) 4Q 2023 3Q 2024 4Q 2024 QoQ YoY 2023 2024 YoY Non-Operating Profit (138.0) (127.7) 387.1 T/P1) T/P1) 60.6 540.2 791.8% 2024 KRW 1,302.6bn (YoY 119.3%↑) Non-Operating Income 190.6 (21.5) 417.3 T/P1) 119.0% 521.0 729.6 40.0% 4Q24 KRW 491.2bn (QoQ 304.7% ↑, YoY T/P1)) Oth