Krafton, Inc. · KRX:259960
Krafton — Q1 2023 Earnings Presentation
16 slides from Krafton's earnings presentation, May 9, 2023
Slide 1: 1Q 2023 Earnings Results
1Q 2023 Earnings Results Investor Relations 2023. 5. 9
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: 2023 1Q Results at a Glance
2023 1Q Results at a Glance Key performance PUBG PC/Console Revenue Scale-Up the Creative Studio Investments 70%↑YoY 24+ Projects (1) 4 / 12 (2) (3) Key financial Highlights 538.7 bn 283.0 bn 53 % Record High Quarterly Revenue Operating Profit Operating Profit Margin Note: (1) Incubating Projects as
Slide 4: PC / Console
PC / Console PUBG PC/Console Recorded the Highest Ever In-game Revenue with Expanded Traffic and New Monetization Content Intense BR Clan System Scheduled in July Arcade Center Scheduled in 4Q Tutorial Update User Engagement Survivor Pass: Map Rotation Map Update Gunplay Update Map Update New Map Th
Slide 5: Mobile
Mobile Solid Mobile Revenue Trend Driven by the Traffic Growth in New Regions and Live Service Content Innovations “New Diverse Content Tailored to User Engagement Expanded Traffic Inflows in Emerging and Some Key Markets” New Content Attracting Healthy Traffic Enhanced Monetization with High-qualit
Slide 6: Scale-Up the Creative
Scale-Up the Creative Scale-Up the Future Growth Potential with Transition from a Global Game Company into a Global Publisher Scale-Up the Creative in 2023 2024 and Beyond “Project Pipelines + Minority Investments” “Strengthen Game Development Process “Scale-Up Future Growth Potential 2PP and Publis
Slide 7: Beyond Game
Beyond Game Focusing on Enhancing Efficiency in Game Development and Discovering New Gameplay Through AI/Deep Learning Virtual Game Friend Innovations in Game Development Process Project Migaloo Chatbot AI Diffusion AI/Deep Learning technology applied to develop core components and content in the
Slide 8: 1Q23 Financials
1Q23 Financials Revenue KRW 538.7bn (+13.7% QoQ, +3.0% YoY) Solid revenue from strong PC revenue and favorable seasonality for mobile, PUBG PC led the growth setting a new record high for quarterly revenue Operating Profit KRW 283.0bn (+124.3% QoQ, -10.1% YoY) Rose QoQ on sound revenue growth levera
Slide 9: Expense Breakdown
Expense Breakdown Operating Costs KRW 255.7bn (-26.4% QoQ, +22.9% YoY) • (Personnel) KRW 100.8bn (+59.0% QoQ, -6.9% YoY) • Declined YoY due to the limited increase in headcount • (Paid Commissions) KRW 61.6bn (-40.0% QoQ, +10.3% YoY) • Declined QoQ on falling expenses related to Esports and outsourc
Slide 10: Operating Profit / Adj. EBITDA
Operating Profit / Adj. EBITDA Operating Profit KRW 283.0bn (+124.3% QoQ, -10.1% YoY) Adj. EBITDA KRW 319.0bn (+99.0% QoQ, +13.7% YoY) • Adj. EBITDA increased 14% YoY, with Adj. EBITDA margin of 59% Operating Profit Adj. EBIDTA(1) Unit: KRW bn Unit: KRW bn 60% 59% 53% 54% 39% 42% 40% 33% 34% 27% 333
Slide 11: Net Profit
Net Profit Profit Before Income Tax KRW 362.4bn (Turned to Profit QoQ, +8.9% YoY) Net Profit KRW 267.2bn (Turned to Profit QoQ, +9.0% YoY) • Net profit rose QoQ and YoY on increased non-operating profit impacted by low base from impairment of intangible assets in 4Q22 and FX effects, with net profit
Slide 12: KRAFTON Pipeline
KRAFTON Pipeline Incubating Pipeline Game Release Plan Title Categories Total ‘23 ‘24 ‘25~ Details 24+ • Project BlackBudget • The Next Subnautica Strategic 6 - 4 2 • Project Impact • Project GoldRush • Project Windless 14 Creative Studio 7 3 2 2 • Project Isegye 10 (PC, Console) Creative Studio 7 5
Slide 13: KRAFTON Pipeline – Project Introduction
KRAFTON Pipeline – Project Introduction Project BlackBudget The Next Subnautica Project GoldRush Project Windless Challenging ourselves to popularize The sequel to Subnautica, a survival Targeting a Western audience of the Aspiring for high-quality the extraction shooter genre based adventure game t
Slide 14: Mid-to-Long Term Shareholder Return Policy
Mid-to-Long Term Shareholder Return Policy Focus Financial Resource Execution Method Shareholder return policy to create higher Buyback and Retirement of (FCF(1) - Investment) x 40% shareholder value as a listed company Treasury Shares Build trust with our shareholders and ‘Investment’ excludes inve
Slide 15: Summary of Financial Statements
Summary of Financial Statements Consolidated Income Statement Consolidated Statement of Financial Position (KRW bn) 1Q22 2Q22 3Q22 4Q22 1Q23 (KRW bn) 1Q22 2Q22 3Q22 4Q22 1Q23 Revenue 523.0 423.6 433.7 473.8 538.7 Current Assets 3,715.7 3,811.0 3,979.2 3,892.6 4,075.3 Operating Costs 208.0 257.7 289.
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