Slide 1: 2Q 2023 Earnings Results
2Q 2023 Earnings Results Investor Relations 2023. 8. 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 2Q Results at a Glance
2023 2Q Results at a Glance Key performance PUBG PC Revenue Resumed Service Studio Investments YoY 35%↑ May 29th (1) 7 / 15 (2) (3) Key financial Highlights 387.1 bn KRW 131.5 bn KRW 34 % Revenue Operating Profit Operating Profit Margin Note: (1) Service resumed on May 29, 2023 after a 10-month susp
Slide 4: PC / Console
PC / Console PUBG PC/Console Maintaining Sustainable Global Live Service with Diverse Updates and Improved Monetization Enhancing In & Out Game Experience under F2P + No P2W Key Live Service Content for 3Q23 Tactical Gears Renewal New Arcade Mode: Bluebomb Rush Aston Martin & Seasonal Workshop Stree
Slide 5: Mobile
Mobile PUBGM Generating Solid Traffic and Revenue Led by Growth in New Regions, BGMI Revenue Contribution Expected in 2H23 Live Service Expanding Traffic and Revenue IP Collaborations and Revamping Service in India New Pass System RP A Series Dinoground Mode Dragon Ball Collaboration Skins & Mode In
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 Games to be Launched(2) 24+ Vector North 1. Publishing Accountability 2. Publishing Organization Studio/Project supervised by Champions Publishing by HQ (1PP & 2PP) 14 Virtua
Slide 7: Beyond Game
Beyond Game Focusing on Enhancing Efficiency in Game Development and Discovering New Gameplay Through AI and Deep Learning Deep Learning R&D Objectives and Core Technologies Project Migaloo ① Game Dev Efficiency ② New Gameplay Language Model TTS & Chatbot Image Generation 3D Avatar & Animation Dee
Slide 8: 2Q23 Financials
2Q23 Financials Revenue KRW 387.1bn (-28.2% QoQ, -8.6% YoY) Revenue stabilized due to seasonality and major content updates concentrated in 2H23 Operating Profit KRW 131.5bn (-53.5% QoQ, -20.7% YoY) QoQ decline from stabilized revenue in 2Q23 Net Profit KRW 128.5bn (-51.9% QoQ, -33.7% YoY) Revenue O
Slide 9: Expense Breakdown
Expense Breakdown Operating Costs KRW 255.6bn (-0.0% QoQ, -0.8% YoY) • (Personnel) 2Q23 +2.4% QoQ, +9.6% YoY • Increased QoQ and YoY due to increase in headcount • (Paid Commissions) 2Q23 +14.6% QoQ, -13.5% YoY • Increased QoQ on expenses related to PGS1 Esports event, decreased YoY from BGMI servic
Slide 10: Operating Profit / Adj. EBITDA
Operating Profit / Adj. EBITDA Operating Profit KRW 131.5bn (-53.5% QoQ, -20.7% YoY) Adj. EBITDA KRW 167.7bn (-47.4% QoQ, -5.4% YoY) • 2Q23 Adj. EBITDA decreased 5% YoY, with Adj. EBITDA margin of 43% Operating Profit Adj. EBIDTA(1) Unit: KRW bn Unit: KRW bn 59% 53% 42% 43% 40% 39% 34% 33% 34% 319.0
Slide 11: Net Profit
Net Profit Profit Before Income Tax KRW 159.5bn (-56.0% QoQ, -38.7% YoY) Net Profit KRW 128.5bn (-51.9% QoQ, -33.7% YoY) • 2Q23 Net Profit decreased YoY due to decreased Operating Profit and FX effects impacting Non-operating Profit Non-Operating Profit & Profit Before Income Tax Net Profit Unit: KR
Slide 12: Q&A
Q&A
Slide 13: 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