Krafton, Inc. · KRX:259960
Krafton — Q1 2022 Earnings Presentation
17 slides from Krafton's earnings presentation, May 12, 2022
Slide 1: 1Q 2022 Earnings Results
1Q 2022 Earnings Results Investor Relations 2022. 5. 12
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: 2022 1Q Results at a Glance
2022 1Q Results at a Glance Key performance User Engagement Live Service Monetization Expanded User Base Diversified Content & Dev Improved Sales Efficiency and Loyalty Key financial Highlights + 17 % YoY + 14 % YoY + 37 % YoY PUBG IP Revenue(1) Revenue Operating Profit Note: (1) Revenue is the tota
Slide 4: PC / Console
PC / Console Looking Ahead Next 10+ Years, Successful F2P, Full-Packed Live Service, and Increased Traffic will Further Solidify Growth 2022 PUBG Live Service plan Training Mode Weapon Balancing Weapon Balancing Released in JUL Shop Feature Social Feature User Engagement Sanhok Rollback Galaxy Squad
Slide 5: Mobile
Mobile Continued Growth from PUBGM, BGMI with Diversifying BM and Content, Fresh BR Experience from New State via New Map Stronger Traffic Retention & Monetization Localized Strategy Specialized for India Increased Playtime with Fast Paced BR <Spider-Man: No Way Home> <Lamborghini Vehicle Skins> <Qu
Slide 6: New Growth (I) – Pipeline
New Growth (I) – Pipeline Growing Global Presence with Highly Immersive, yet Different New Titles from Independent Studios in North America Project M Unknown Worlds Striking Distance Studios ▪ A turn-based strategy game set in a Sci-Fi world ▪ Quad A (AAAA), All day! (PC, Mobile) ▪ Highest level of
Slide 7: New Growth (II) – Special Project (SP2), Deep Learning
New Growth (II) – Special Project 2 (SP2), Deep Learning Leveraging Our Core Strength and R&D in Deep Learning into Both Gaming/Non-Gaming, Investing More on Global Deep Tech SP2 → New Era of Gaming Deep Learning R&D → Impacting Non-Gaming Areas with Virtual Human & Chatbot Foundation Model Project
Slide 8: New Growth (III) – Web 3.0, NFT Metaverse Platform
New Growth (III) – Web 3.0, NFT Metaverse Platform To Provide New Value for Gamers & Creators thru Content Production Tools where Fresh Interactive Content is Created Endlessly Crypto Shopping Brand Showroom Content User & Consumer New Fun Sustainability Entertainment Avatar used as entertainment C2
Slide 9: 1Q22 Financials
1Q22 Financials Revenue KRW 523.0bn (+13.5% YoY, +17.8% QoQ) Sustained growth momentum of PUBG, on back of accumulated game development and global service expertise, led to another record high quarterly revenue Operating Profit KRW 311.9bn (+37.3% YoY, +625.5% QoQ) High YoY and QoQ growth driven by
Slide 10: Revenue Breakdown
Revenue Breakdown Revenue KRW 523.0bn (+13.5% YoY, +17.8% QoQ) • (PC) KRW 106.1bn (+60.6% YoY, -7.2% QoQ) High YoY growth backed by new BM expansion, yet, QoQ declined due to the impact of free G-Coins distributed thru Starter Pack sales and legacy user rewards • (Mobile) KRW 395.9bn (+4.5% YoY, +30
Slide 11: Expense Breakdown
Expense Breakdown Operating Costs KRW 211.1bn (-9.7% YoY, -47.4% QoQ) • (Personnel) KRW 110.5bn (+30.5% YoY, +16.6% QoQ) • YoY and QoQ rose on the increase in headcount from business expansion, employees subject to performance incentives, and inclusion of consolidated subsidiaries • (Paid Commission
Slide 12: Operating Profit / Adj. EBITDA
Operating Profit / Adj. EBITDA Operating Profit KRW 311.9bn (+37.3% YoY, +625.5% QoQ) Adj. EBITDA KRW 278.1bn (+10.3% YoY, +130.6% QoQ) • Adj. EBITDA increased 10.3% YoY, with adj. EBITDA margin of 53.2% Operating Profit Adj. EBITDA(2) KRW bn KRW bn 60% 55% 54% 53% 49% 47% 38% 37% 311.9 27% 278.1 (5
Slide 13: Net Profit
Net Profit Profit Before Income Tax KRW 329.6bn (YoY +21.5%, QoQ +785.2%) Net Profit KRW 245.2bn (YoY +26.4%, QoQ +3,829.7%) • Strong net profit growth on increased operating profit and non-operating profit, with net profit margin of 47% Non-operating Profit & Profit Before Income Tax Net Profit KRW
Slide 14: Summary of Financial Statements
Summary of Financial Statements Consolidated Income Statement Consolidated Statement of Financial Position KRW bn 1Q21 2Q21 3Q21 4Q21 1Q22 KRW bn 1Q21 2Q21 3Q21 4Q21 1Q22 Revenue 461.0 459.3 521.9 444.0 523.0 Current Assets 1,440.6 1,554.8 4,441.2 3,653.7 3,715.7 Cash and Cash Operating Costs 233.8
Slide 15: Q&A
Q&A
Slide 16: Our Vision: Why, How, What
Our Vision WHY HOW WHAT We believe games will become the world’s most powerful medium. Based on our creativity, steadfast dedication toward new challenges and technological development, We will further expand our original IPs and build immersive, virtual worlds, where our fans play together and shar
Slide 17: the fallen city awaits
the fallen city awaits