Slide 1: 2021 3Q Earnings Release
2021 3Q Earnings Release Investor Relations November 11, 2021
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: 3Q21 Results at a Glance
3Q21 Results at a Glance Key Highlights Global Battlegrounds PUBG: NEW STATE PUBG Universe Live Service Mobile India Key performance +42 % YoY +17 % YoY +54 % Revenue Operating Profit Adj. EBITDA Margin(1) Note: (1) Adj. EBITDA = EBITDA + Share-based payment expenses 3
Slide 4: Our Way to Meet the World
Our Way to Meet the World We believe games will become the world’s most powerful medium 1 2 3 4 Create Powerful IPs where Establish Leadership in Secure unique Creativity and Take lead in New Technology Interactive Virtual World Emerging Markets including new Growth through M&As including Deep Learn
Slide 5: PUBG PC / Console
PUBG PC / Console Paying User Expansion with Differentiated Live Service Efforts including Maps, Modes, Collaborations BR Content and Event Mode Updates Diversified Business Model Encompassing Casual and Core Users POBG <BLACKPINK> <Heung-min Son> <Don Lee> Zombie Survival Zone Tag Again <Weapon Ski
Slide 6: PUBG Mobile
PUBG Mobile Enhanced In-Game Monetization backed by Attractive Content and Speedy Updates Suitable for Mobile Platform RPM 4 <PUBGM x TESLA> Royale Pass Month Live Service(1) Enhanced Monetization New Update Every Month Collaborations & Modes Premium Collaborations 50 Million ~42 Million <Diwali Eve
Slide 7: PUBG: NEW STATE
PUBG: NEW STATE Now Ready to Wow the 55 million Global Fans Around the World with EXTREME Game Experience We are next-gen battle royale Phase II Expand Paying Users Enhanced Sales Efficiency through Diverse BM Secure and Retain Traffic 55 Million(1) Expand Global Users Phase I Continuous Content Upd
Slide 8: PUBG Universe
PUBG Universe Soon Reaching Out to Broader Global Audience Beyond the Game Narratives <Mysteries Unknown> <Fall of Troi> <100> <Night of Silence> <The Retreats> <India Pratilipi> <Ground Zero> <All Hunters Eve> 8
Slide 9: Unknown Worlds Entertainment: New Growth
Unknown Worlds Entertainment: New Growth 468K+ 84K+ 345K+ Subscribers Members Followers Build truly unique game experiences in unimaginable worlds Take players on a journey to 115K+ 62K+ Followers Followers the unknown Create Original Creativity Beloved Open-World Survival Games of All-Time Loyal Fa
Slide 10: 3Q21 Financials
3Q21 Financials Revenue KRW 521.9bn (+42.3% YoY, +13.6% QoQ ) Global live service expertise, diversified BM, and BGMI(1) launch accelerated growth in all PC, Mobile, and Console segment, led to a record high quarterly revenue Operating Profit KRW 195.3bn (+16.5% YoY, +12.1% QoQ) Solid revenue growth
Slide 11: Revenue Breakdown
Revenue Breakdown Revenue KRW 521.9bn (+42.3% YoY, +13.6% QoQ) • Mobile segment revenue reached KRW 380.5bn, a 31.1% increase YoY • Continuous growth of PUBG Mobile and BGMI launch led Mobile segment to excel for two consecutive quarters • PC segment revenue reached KRW 129.5bn, a 111.7% increase Yo
Slide 12: Expense Breakdown
Expense Breakdown Operating Costs KRW 326.6bn (+64.0% YoY, +14.5% QoQ) • Personnel costs increased 19.2% YoY at KRW 80.8bn • YoY increased due to higher headcount from ongoing business expansion and salary raise • Paid commissions increased 27.9% YoY at KRW 70.0bn • YoY increased due to in-house cre
Slide 13: Operating Profit
Operating Profit Operating Profit KRW 195.3bn (+16.5% YoY, +12.1% QoQ) Adj. EBITDA KRW 283.3bn (+49.6% YoY, +29.9% QoQ) • Adj. EBITDA increased 49.6% YoY, with adj. EBITDA margin of 54% • Operating Profit Adj. EBIDTA(1) KRW bn KRW bn 49% 55% 54% 46% 52% 47% 38% 37% 26% 32% 283.3 227.2 252.1 10.0 70.
Slide 14: Net Profit
Net Profit Profit Before Income Tax KRW 269.9bn (+89.5% YoY, +57.1% QoQ) Net Profit KRW 178.3bn (+62.1% YoY, +26.2% QoQ) • Increase in both operating profit and non-operating profit led net profit to increase 62.1% YoY, with Net Profit Margin of 34% • Non-operating Profit & Profit Before Income Tax
Slide 15: Summary of Financial Statements
Summary of Financial Statements Consolidated Income Statement Consolidated Statement of Financial Position (Unit: Billions KRW) 3Q20 4Q20 1Q21 2Q21 3Q21 (Unit: Billions KRW) 3Q20 4Q20 1Q21 2Q21 3Q21 Revenue 366.8 352.6 461.0 459.3 521.9 Current Assets 1,322.2 1,292.5 1,440.6 1,554.8 4,441.2 Operatin
Slide 16: 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