Slide 1: 2Q22 & 1H22 Earnings Results
2Q22 & 1H22 Earnings Results Investor Relations 2022. 8. 11
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 1H Results at a Glance
2022 1H Results at a Glance Key Performance ~27M From 2H21 10% ↑ Record High UV, 1.8M New users to PUBG(1) Mobile Avg. ARPPU(2) Global eSports Tournament Key financial Highlights(3) + 3 % YoY + 18 % YoY + 31 % YoY Revenue Operating Profit Net Income Note: (1) Cumulative NRU (New Registered Users) of
Slide 4: PC/Console
PC/Console Improving Overall Gaming Experience for All Users, Yet More Efforts on Securing New and Returned Users 2Q22 Live Service Fostering In & Out Game Experience 3Q22 Live Service & Marketing Plan Dev Talk Live Streaming Original Sanhok Map Rollback +3X YoY 8x8 New Map DESTON Neymar Live Stream
Slide 5: Mobile – PUBGM / New State
Mobile – PUBGM / New State PUBGM on Steady Growth Track backed by Full-Packed Live Service Content, and New State on More Concerted Live Structure Stronger User Engagement and Monetization Faster Gameplay, with Attractive Global Brand Collaborations and Mode Services Better engagement User Engagemen
Slide 6: INDIA
INDIA Continuing the Path for Mutual Growth with India, Pursuing Diverse Business Areas and Expanding Strategic Partnerships India’s Beloved Game with 100M+ Downloads Investment of USD ~100M <KuKuFM> USD 7M cumulative as of 2Q22 (11.7% share) <Silvanus X-Suit Skin> <Evangelion Collaboration> Secure
Slide 7: New IP Project – 2022/23 (Project M)
New IP Project – 2022/23 New Global Titles from the US to Expand KRAFTON’s Game IP Library and Attract More Fans from Diverse Genres Project M ▪ Turn-based strategy PC game set in a Sci-Fi world ▪ New AAA Title by Glen Schofield & Team ▪ Following the ‘Easy-to-Learn, Hard-to-Master’ formula, ▪ Globa
Slide 8: New IP Project – Project Windless
New IP Project – Project Windless A New IP Expansion Project by KRAFTON, Targeting Global Multi-Media Franchise, Game Development Finally Announced Project Windless ▪ Korean fantasy novel with unique settings and rich narratives ▪ Expansion into media productions backed by strong fan base ▪ Visual R
Slide 9: New Growth – Web 3.0 Metaverse & Virtual Human
New Growth – Web 3.0 Metaverse & Virtual Human Leverage Our Core Technology on Building Interactive Virtual World, C2E Metaverse ‘Project Migaloo’ and Virtual Human ‘ANA’ C2E Metaverse: Project Migaloo Virtual Human: ANA Platform Fee Content Web 3.0 Creator Gen. Z Metaverse (Sandbox) Brand/IP Conten
Slide 10: 2Q22 Financials
2Q22 Financials Revenue 1H22 KRW 946.7bn (+2.9% YoY) 2Q22 KRW 423.7bn (-7.8% YoY, -19.0% QoQ) Operating Profit 1H22 KRW 474.2bn (+18.1% YoY) 2Q22 KRW 162.3bn (-6.8% YoY, -48.0% QoQ) 1H Earnings 2Q Revenue 2Q Operating Profit KRW bn 50% 60 KRW bn KRW bn 44% 31% 40 60% 94% 966.0 25% 946.7 20 920.3 38%
Slide 11: Revenue Breakdown
Revenue Breakdown Revenue 1H22 KRW 946.7bn (YoY +2.9%) 2Q22 KRW 423.7bn (YoY -7.8%, QoQ -19.0%) • (PC) 1H22 +25.9% YoY, 2Q22 flat YoY, -16.5% QoQ 2Q22 was flat YoY given elimination of package sales and impact of free G-Coins after F2P transition, and decreased QoQ with more live service focusing on
Slide 12: Expense Breakdown
Expense Breakdown Operating Costs 1H22 KRW 472.5bn (-9.0% YoY) 2Q22 KRW 261.3bn (-8.4% YoY, +23.8% QoQ) • (Personnel) 1H22 +16.4% YoY, 2Q22 +3.7% YoY, -12.4% QoQ • Despite the increase in headcounts from business expansion, 2Q22 slightly rose YoY, but declined QoQ due to the decrease in performance-
Slide 13: Operating Profit / Adj. EBITDA
Operating Profit / Adj. EBITDA Operating Profit 1H22 KRW 474.2bn (+18.1% YoY) 2Q22 KRW 162.3bn (-6.8% YoY, -48.0% QoQ) Adj. EBITDA 1H22 KRW 452.6bn (-3.8% YoY) 2Q22 KRW 174.5bn (-20.0% YoY, -37.2% QoQ) • 2Q22 Adj. EBITDA declined 20% YoY, with adj. EBITDA margin of 41% Operating Profit (2Q) Adj. EBI
Slide 14: Net Profit
Net Profit Profit Before Income Tax 1H22 KRW 586.5bn (+32.3% YoY) 2Q22 KRW 256.8bn (+49.5% YoY, -22.1% QoQ) Net Profit 1H22 KRW 439.2bn (+31.0% YoY), RECORD HIGH 2Q22 KRW 194.0bn (+37.3% YoY, -20.9% QoQ) • 2Q22 net profit rose YoY due to increased non-operating profit caused by f/x effects, with net
Slide 15: Summary of Financial Statements
Summary of Financial Statements Consolidated Income Statement Consolidated Statement of Financial Position KRW bn 2Q21 3Q21 4Q21 1Q22 2Q22 KRW bn 2Q21 3Q21 4Q21 1Q22 2Q22 Revenue 459.3 521.9 444.0 523.0 423.7 Current Assets 1,554.8 4,441.2 3,653.7 3,715.7 3,811.0 Cash and Cash Operating Costs 285.2
Slide 16: Our Vision: Why, How, What
Our Vision WHY We believe games will become the world’s most powerful medium. H OW Based on our creativity, steadfast dedication toward new challenges and technological development, WH AT We will further expand our original IPs and build immersive, virtual worlds, where our fans play together and sh
Slide 17: } WORLD, IT'S ME ANA! @
} WORLD, IT'S ME ANA! @