Krafton, Inc. · KRX:259960
Krafton — Q4 2021 Earnings Presentation
32 slides from Krafton's earnings presentation, Feb 10, 2022
Slide 1: 4Q21 & FY2021 Earnings Results
4Q21 & FY2021 Earnings Results Investor Relations 2022. 2. 10
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: Our Quests Never End: A Glimpse at 2022
Our Quests Never End : FEBRUARY 2022 A Glimpse at 2022 CEO CH Kim
Slide 4: Our Quests Never End: A Glimpse at 2022
Our Quests Never End : A Glimpse at 2022 Our Core : Games Beyond the Game “ The Potential ” • Games-as-a-Service : Boost player • Expanding into new areas where • A new program that encourages a engagement and improve efficiency KRAFTON’s game production constant flow of small and quick of the live
Slide 5: Boost Play Engagement and Improve Operational Efficiency for PUBG Games
Boost Play Engagement and Improve Operational Efficiency for the Three Most Important PUBG Games “Battlegrounds for All” “Repositioning” “Further grow PUBG fandom” The transition to F2P led to improved new Set a clearly distinctive position in the Strengthen the fandom by constantly user care and mo
Slide 6: Strengthening Global Publishing Capabilities and Improving Operational Efficiency
Strengthening Global Publishing Capabilities and Improving Operational Efficiency Branding & Marketing Service Ops (Including Creative, Communication Digital Marketing / CRM) Community Management Social Media Regional Publishing Monetization (Including Go-to-Market, Localization) PR 6
Slide 7: Key Titles to Launch in 2022
Key Titles to Launch in 2022(1) 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 quality + maximum horror experience ▪ Following the ‘Easy-to-Learn, Hard-to-Master’ formula, + distinguished
Slide 8: KRAFTON Pipeline: 2022 and Beyond
KRAFTON Pipeline : 2022 and Beyond(1) Defense Derby Project M Project Biringam Project Black Budget Rising Wings Unknown Worlds KRAFTON HQ PUBG Studios Real-time strategic defense Turn-based strategy Open world PvP shooter PvPvE Looter Shooter Targeting the first half of 2022 Targeting 2022 for Targ
Slide 9: Our Quests Never End: A Glimpse at 2022
Our Quests Never End : A Glimpse at 2022 Our Core : Games Beyond the Game “ The Potential ” • Games-as-a-Service : Boost player • Expanding into new areas where • A new program that encourages a engagement and improve efficiency KRAFTON’s game production constant flow of small and quick of the live
Slide 10: Swiftly Learn About New Markets Through Small and Quick Experiments
It is Important to Swiftly Learn About New Markets Through Small and Quick Experiments Taking Taking on challenges on challenges in areas we already in new areas have where everyone is a competitive edge on equal footing Continue efforts to further solidify Various small and quick trials our standin
Slide 11: Expandable Areas Leveraging KRAFTON's Game Production Capabilities
Expandable Areas Leveraging KRAFTON’s Game Production Capabilities • A platform that allows a fully immersive experience that goes beyond gamers and can offer expanded interactive content to a broader audience Virtual Reality (VR) • The market is still young to reach mainstream popularity, but the C
Slide 12: An Open API that enables payment
An Open API that enables payment More power to creators ▪ More direct connections between creators and consumers are formed ▪ The role of traditional platforms are further reduced with the expansion of Web 3.0 12
Slide 13: New Projects within the Web 3.0 & NFT Area
New Projects within the Web 3.0 & NFT Area Web 3.0 Business Direction New Web 3.0 Projects We have come a long way as a gaming company and while we continue to do what we do best, Fun we will also nurture a C2E ecosystem wherein User-Generated fresh content is created endlessly. Metaverse Platform W
Slide 14: Our Quests Never End: A Glimpse at 2022
Our Quests Never End : A Glimpse at 2022 Our Core : Games Beyond the Game “ The Potential ” • Games-as-a-Service : Boost player • Expanding into new areas where • A new program that encourages a engagement and improve efficiency KRAFTON’s game production constant flow of small and quick of the live
Slide 15: "The Potential" - Program for Small and Quick Trials
“The Potential” - A New Program that Encourages a Constant Flow of Small and Quick Trials/Challenge-Taking A max 20- Able to set up a team with up to 20 like-minded person colleagues team Key Direction Aiming to produce a build within 1 year that is • Spirit: quickly taking on meaningful worthy of u
Slide 16: WHY HOW WHAT
WHY We believe games will become the world’s most powerful medium. HOW Based on our creativity, steadfast dedication toward new challenges and technological development, WHAT We will further expand our original IPs and build immersive, virtual worlds, where our fans play together and share fun momen
Slide 17: CFO Dongkeun Bae
FEBRUARY 2022 CFO Dongkeun Bae
Slide 18: 2021 Results at a Glance
2021 Results at a Glance Key performance 180m PUBG IP Sales Efficiency PUBG Universe Global MAU(1) Key metrics expansion Short-form content, in PC, Mobile, Console webtoons Key financial Highlights 25 % YoY 13 % YoY 94 % PUBG IP Revenue Revenue Overseas Revenue Note: (1) Global MAU is the total aver
Slide 19: 2021 & 4Q21 Financials
2021 & 4Q21 Financials Revenue 2021 KRW 1,886.3bn (+12.9% YoY) 4Q21 KRW 444.0bn (+25.9% YoY, -14.9% QoQ) Operating Profit 2021 KRW 639.6bn (-17.3% YoY) 4Q21 KRW 43.0bn (-53.6% YoY, -78.0% QoQ) Annual Quarterly Revenue Quarterly Operating Profit KRW bn 46% KRW bn KRW bn 49% 37% 33% 92% 38% 37% 34% 1,
Slide 20: PC: Battlegrounds for all
PC Secure long-term growth momentum with increased traffic after PUBG’s transition to F2P • (2021 Revenue +50.6% YoY) Increase in in-game ARPU through strengthened live service and monetization, expect sustainable growth on increased traffic in 2022 • (4Q21 Revenue +91.9% YoY, -11.2% QoQ) Various BM
Slide 21: Mobile
Mobile Mobile continue to grow by increased sales efficiency of PUBGM and strong live service of BGMI & New State • (2021 Revenue +5.7% YoY) With enlarged PUBG user pool, expect accelerated revenue growth through premium live service and loyal user base in 2022 • (4Q21 Revenue +9.9% YoY, -20.2% QoQ)
Slide 22: Mobile (cont) - BGMI / India
Mobile (cont) - BGMI / India Solidify our presence in India with loyal user base, securing business partnerships through investments Build “Content Platform”, expanding investment to games, deep tech in 2022 <Nodwin Gaming> 16 % USD 22.5M (15.0%) Indian Game Market 2021-2024E CAGR(1) <FRND> <Pratili
Slide 23: Mobile (cont) - New State
Mobile (cont) - New State 인도에서의 충성도 Differentiate New 높은 State’s 이용자층 positioning 기반 시장with 선점 the highlight 강화, 급성장하는 on core시장에서의 gameplay: 투자 Mini-Royale 및 협업 확대로and Big 경쟁Drop 우위 update 격차를 확보 1월 2~3월 2분기 JAN FEB~MAR 2Q Extreme BR Mode 출시 차별화된 게임성 강화 신규 맵 등 대규모 업데이트 Extreme BR Mode Unique Experi
Slide 24: Revenue Breakdown
Revenue Breakdown Revenue 2021 KRW 1,886.3bn (+12.9% YoY) 4Q21 KRW 444.0bn (+25.9% YoY, -14.9% QoQ ) • (Console) 2021 -34.3% YoY, 4Q21 -14.3% YoY, +22.3% QoQ 4Q21 declined YoY due to fewer content update ahead of F2P transition, and increased QoQ on back of inclusion of consolidated subsidiary Unkno
Slide 25: Expense Breakdown
Expense Breakdown Operating Costs 2021 KRW 1,246.7bn (+39.1% YoY) 4Q21 KRW 401.0bn (+54.2% YoY, +22.8% QoQ) • (Personnel) 2021 +6.8% YoY, 4Q21 -12.4% YoY, +17.3% QoQ • 4Q21 declined YoY due to change in accounting standard on performance-based incentives, rose QoQ on inclusion of consolidated subsid
Slide 26: Operating Profit / Adj. EBITDA
Operating Profit / Adj. EBITDA Operating Profit 2021 KRW 639.6bn (-17.3% YoY) 4Q21 KRW 4.3bn (-53.6% YoY, -78.0% QoQ) Adj. EBITDA(2) 2021 KRW 874.2bn (+2.3% YoY) 4Q21 KRW 120.6bn (+7.7% YoY, -57.4% QoQ) • Adj. EBITDA increased 7.7% YoY, with adj. EBITDA margin of 27.2% Operating Profit (Quarterly) A
Slide 27: Net Profit
Net Profit Profit Before Income Tax 2021 KRW 750.4 bn (+12.5% YoY) 4Q21 KRW 37.2bn (TTB YoY, -86.2% QoQ) Net Profit 2021 KRW 519.9bn (-6.5% YoY) 4Q21 KRW 6.2bn (-84.9% YoY, -96.5% QoQ) • Net Profit decreased due to the recognition of impairment loss on intangibles and higher corporate income tax Non
Slide 28: Summary of Financial Statements
Summary of Financial Statements Consolidated Income Statement Consolidated Statement of Financial Position KRW bn 4Q20 1Q21 2Q21 3Q21 4Q21 2020 2021 (Unit: KRW bn) 4Q20 1Q21 2Q21 3Q21 4Q21 Revenue 352.6 461.0 459.3 521.9 444.0 1,670.4 1,886.3 Current Assets 1,292.5 1,440.6 1,554.8 4,441.2 3,653.7 Ca
Slide 29: BG Chang, CH Kim, Dongkeun Bae
Chairman CEO CFO BG Chang CH Kim Dongkeun Bae
Slide 30: PROJECT: FF
PR owe ¢ om ea “t ye PROJECT: FF
Slide 31: More Details are on the way. Stay tuned
More Details are on the way Stay tuned
Slide 32: Our Vision
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