Slide 1: NCSOFT IR Presentation May 2025
NCSOFT IR PRESENTATION May 2025
Slide 2: Agenda
I. Overview 1. Industry Overview 2. Company Overview II. Financials 3. Financial Highlights 4. Sales Breakdown 5. Cost Breakdown 6. FY2026 Sales Guidance III. Investment Points 7. Strength 8. Strategy Appendix 9. Game Pipeline 10. Consolidated Financial Statements 11. NCSOFT ESG Performances 2
Slide 3: Industry Overview: Global Games Market Snapshot
1. Industry Overview : Global Games Market Snapshot Estimated size of ~$150 BN Gaming market is global gaming market in 2026 is in- app purchase across #1 $ 228BN iOS and Google Play in 2024 among other contents industries +4% +5% +2% CAGR expected CAGR expected CAGR expected from 2024 ~ 2027 from 2
Slide 4: Company Overview: Corporate Governance
2. Company Overview : Corporate Governance • NCSOFT’s board of directors comprises 7 members, each contributing to the board’s independence, diversity, and expertise Board Composition & Skills Matrix Ownership Structure (As of Mar 2025) NCSOFT Composition Gender Tenure Retail 12% Management Investor
Slide 5: Company Overview: Yearly Revenues Trend (1998~2024)
2. Company Overview : Yearly Revenues Trend (1998 ~ 2024) • Since 1998, NCSOFT has built a strong asset base through the launch of high-quality MMORPGs that provide long-lifecycle live services • Expecting the next phase of growth with the successful launch of new titles and overseas expansion Growt
Slide 6: Company Overview: Development & Publishing Network
2. Company Overview : Development & Publishing Network • Development studios in Korea and North America • Well-organized publishing arms in major markets such as US, Taiwan, Japan and Europe Globalized Development & Publishing Network Europe APAC North America NC Europe (100%) Korea Japan NC West Ho
Slide 7: Financial Highlights (Quarterly)
3. Financial Highlights (Quarterly) • Q1 sales reported KRW 360.3 billion, down 12% qoq and 9% yoy • Q1 operating profit turned around to KRW 5.2 billion as the impact of severance costs in the previous quarter subsided Quarterly Performance (Unit : KRW MN) Sales Operating Profit 397,911 401,937 409
Slide 8: Financial Highlights (Yearly)
3. Financial Highlights (Yearly) • Full-year 2024 sales recorded KRW 1,578.1 billion (YoY -11%) and operating loss was KRW 109.2 billion (TTR YoY) Performance of Past 3 Years (Unit: KRW MN) 2022 2023 2024 2,571,792 ↓11% YoY 1,779,833 1,578,123 559,006 609,051 ↓ 41% YoY 435,990 ↓ 56% YoY TTR YoY 206,
Slide 9: Sales Breakdown (Quarterly by Game)
4. Sales Breakdown (Quarterly by Game) • Q1 mobile game sales declined 4% qoq to KRW 206.3 billion, accounting for 57% of total sales • Q1 legacy online PC game sales declined 11% qoq to KRW 83.3 billion, representing 23% of total sales Mobile Games PC Online Games (Unit : KRW MN) (Unit : KRW MN) Li
Slide 10: Sales Breakdown (Yearly by Game)
4. Sales Breakdown (Yearly by Game) • Full-year 2024 mobile game sales declined 22% YoY to KRW 936.7 billion, accounting for 59% of total sales • Online PC game sales declined 2% YoY to KRW 351.8 billion, representing 22% of total sales Mobile Games PC Online Games (Unit: KRW MN) (Unit: KRW MN) Line
Slide 11: Sales Breakdown (by Region)
4. Sales Breakdown (by Region) • Q1 Korea sales declined 8% qoq to KRW 228.3 billion • Q1 Asia sales grew 8% qoq to KRW 56.1 billion, driven by increased sales of Lineage W • Q1 Royalty sales declined 39% qoq due to the diminishing impact of TL’s global release but rose 38% yoy to KRW 45.0 billion Q
Slide 12: Cost Breakdown (Quarterly)
5. Cost Breakdown (Quarterly) • Total operating expenses for Q1 decreased 34% qoq to KRW 355.1 billion • Q1 Labor cost decreased 40% qoq to KRW 187.2 billion, as the impact from the previous quarter’s severance costs tapered off • Q1 Marketing expenses decreased 76% qoq to KRW 13.3 billion Quarterly
Slide 13: Cost Breakdown (Yearly)
5. Cost Breakdown (Yearly) • Full-year 2024 operating expenses totaled KRW 1,687.3 billion, up 3% YoY • Labor costs increased 10% YoY to KRW 906.4 billion primarily on severance package payments following organizational efficiency initiatives. • Marketing expenses rose by 51% YoY to KRW 128.2 billio
Slide 14: FY2026 Sales Guidance
6. FY2026 Sales Guidance • Through continued expansion of Legacy IPs and new title launches, sales in FY 2026 are expected to reach KRW 2.0 trillion, with potential upside to KRW 2.5 trillion depending on the success of the new releases FY 2026 Sales Guidance FY 2026 Sales Guidance Breakdown (Unit :
Slide 15: Strength: Multiple Successful IPs
7. Strength : Multiple Successful IPs Lineage Lineage 2 ✓ Launched in 1998 (remastered in 2019) ✓ Launched in 2003 ✓ Set the standard for Korean MMORPGs by pioneering RvR content, ✓ Full 3D graphics MMORPG with ‘seamless open world’ specifically castle siege wars ✓ Ranked first in PC cafés in Japan
Slide 16: Strength: Multiple Successful IPs
7. Strength : Multiple Successful IPs AION Blade & Soul Guild Wars 2 Massively Multi-player Experience on Mobile ✓ Launched in 2008 ✓ Launched in 2012 ✓ Launched in 2012 ✓ The first Korean game to introduce aerial PvP ✓ An action MMORPG featuring oriental martial ✓ Released 5 expansion packs ✓ Maint
Slide 17: Strength: Expertise in Live Services
7. Strength : Expertise in Live Services • Deliver timely and continuous content updates to extend the lifecycle of live-serviced games • Diversify the product portfolio by unlocking the value of legacy IP to drive sustainable growth Extending Lifecycle of Legacy IPs (# of years after its launch, by
Slide 18: Strength: Our Technology
7. Strength : Our Technology Massive scale live service AI-powered development Data-driven approach Massively Multi-player Experience on Mobile ✓ NCSOFT strives to ensure top-notch stability ✓ NCSOFT established an AI research department ✓ A data-driven approach, encompassing data and connectivity a
Slide 19: Strategy to Achieve Growth
8. Strategy to Achieve Growth • NCSOFT aims for continuous sales growth driven by four key pillars: 1) Legacy IP, 2) In-house development of new IP, 3) Strategic investments in external IP, and 4) Inorganic growth through M&A 4 strategic pillars to achieve sales growth Revenue M&A New IP (External)
Slide 20: Strategy: Unlocking Legacy IP Value
8. Strategy : Unlocking Legacy IP Value • Strengthening legacy IPs is key to building a solid foundation • Dedicated to extending the lifecycle of our legacy IPs, expanding their global reach, and diversifying their genres How to unlock and expand legacy IP value Extending Product Lifecycle Geograph
Slide 21: Strategy: Building a Global IP Portfolio
8. Strategy : Building a Global IP Portfolio • Striving to continuously diversify our portfolio across IPs, genres, platforms, and regions through: 1) Innovative in-house development, and 2) Promising publishing titles Inhouse R&D and Securing Publishing titles for Portfolio Diversification < Portfo
Slide 22: Strategy: Diversifying the Genre Portfolio
8. Strategy : Diversifying the Genre Portfolio • Build genre-specific clusters to create a synergy for each core genre • Accelerate global publishing through genre-specific clusters Building genre-specific clusters < Main Genre Directions > MMORPG NC’s traditional core genre Shooting Subculture Laun
Slide 23: Strategy: Collaboration with Partners
8. Strategy : Collaboration with Partners • Building strong relationships with global partners is one of the most effective strategies for bringing our products to audiences worldwide • Investing in external developers through equity stakes and publishing rights will create new business opportunitie
Slide 24: Game Pipeline
9. Game Pipeline ‘25 ’26+ MMO MMO Shooting TPS (Publishing) 3rd legacy-IP based title Animation RPG (Publishing) 2nd A global-IP based A shooter game with legacy-IP based title MMORPG innovative concept …. and others 24
Slide 25: Consolidated Financial Statements
10. Consolidated Financial Statements Statement of Financial Position (Unit : KRW MN) FY 2024 1Q 25 FY 2024 1Q 25 Assets Liabilities I. Current Assets 1,788,537 1,822,166 I. Current Liabilities 322,188 368,172 Cash and cash equivalents 1,260,473 464,239 Borrowings - - Short-term financial Account pa
Slide 26: Consolidated Financial Statements
10. Consolidated Financial Statements Income Statement (Unit : KRW MN) 1Q 24 2Q 24 3Q 24 4Q 24 1Q 25 Sales 397,911 368,869 401,937 409,407 360,278 Operating Expenses 372,188 360,025 416,228 538,897 355,058 Operating Income 25,723 8,844 (14,291) (129,491) 5,220 Non-operating Income 52,642 76,069 (17,
Slide 27: NCSOFT ESG Performances
11. NCSOFT ESG Performances KCGS ESG Ratings MSCI ESG Ratings Sustainalytics ESG Risk Rating ■ Comprehensive Rating 2020 [B+] → 2024 [A] ■ Comprehensive Rating 2020 [BBB] → 2024 [AA] ■ Risk Rating 2021 [16.8] → 2023 [14.3] Environment (E) B+ A (comprehensive) Social (S) A+ Governance (G) A [Ref] ESG
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