#1NEXON INVESTOR PRESENTATION Q2 2022 Owen Mahoney President and CEO Shiro Uemura CFO August 9th, 2022 NEXON Co., Ltd. 00#2CEO Highlights#3Summary Growth Driven by Our Best-in-class Live Operation Capability GROWTH DRIVERS ITEM China Dungeon&Fighter 1 Growth in existing Virtual Worlds Korea MapleStory 2 New releases FIFA ONLINE 41 NOTES Y/Y growth in revenue; Q/Q KPI improvement in Q2 MAUS, paying users, and ARPPU all up Y/Y in Q2; expect 2H to sustain this great momentum Marked a quarterly record high for two quarters in a row Dungeon&Fighter Mobile KartRider: Drift ARC Raiders/Project Discovery North America and Europe Console Sustained high user engagement supported by rich content and carefully-managed live operations On track to launch in 2H; internal beta test was successful Accelerated development of Project Discovery to launch around the end of 2022; ARC Raiders is now scheduled for 2023 to avoid launch conflict with Project Discovery Embark's titles and KartRider. Drift to drive western business Mobile momentum continues, driven by Dungeon&Fighter Mobile; HIT2 and more to come out in 2H and 2023 Embark's titles and KartRider. Drift to drive console business 3 Market and platform expansion Mobile 1 Official titles are EA SPORTS™ FIFA ONLINE 4 (PC) and EA SPORTS™ FIFA ONLINE 4 M (mobile). © 2022 NEXON Co., Ld. All Rights Reserved. 3#4Revenue Growth Breakdown On Track for Step-Function Revenue Growth in 2022 (Unit: \ billions) 220.2 2021 Q1-Q3 Y/Y Accumulated Revenue Comparison 24.5 8.1 20.1 6.3 MapleStory 279.2 Other Exisiting UNGEON FIGHTER PC Titles Mobile Titles 2022 Q1-Q3 (High-end) Growth in existing Virtual Worlds New releases © 2022 NEXON Co., Ld. All Rights Reserved. 4#5Strength of Live Operation Three Major Franchises Continue to Grow Over Time Backed by Our Live Operations Revenue 2013 1 PC only 2014 2015 2 Official titles are EA SPORTS™ FIFA ONLINE 4 (PC) and EA SPORTS™ FIFA ONLINE 4 M (mobile). 3 Until 2Q 2022 Trailing 12 Months Revenue History Dungeon&Fighter' MapleStory FIFA ONLINE 42 2016 2017 2018 2019 2020 2021 2022 3 Time © 2022 NEXON Co., Ld. All Rights Reserved. 5#6CFO Highlights#7Q2 2022 Results#8• Q2 2022 Result Highlights Revenues as Planned. Record Q2 Revenue Driven by Growth of Major Franchises and Dungeon&Fighter Mobile Revenues In-line with expectations. FIFA ONLINE 4' exceeded outlook while China Dungeon&Fighter was below outlook Y/Y increase driven by FIFA ONLINE 4', Dungeon&Fighter in China, and MapleStory in Korea as well as a contribution from Dungeon&Fighter Mobile Operating Income In-line with expectations Recording a ¥2.2 billion impairment loss on ARC Raiders' game IP following an adjustment to our Embark release schedule • Y/Y increase driven by a revenue increase, partially offset by increases in variable costs, HR costs4, and marketing expenses Net Income³ • Exceeded outlook driven by a ¥27.7 billion FX gain primarily on U.S. dollar-denominated cash deposits Y/Y increase driven by an operating income increase and a ¥27.7 billion FX gain, partially offset by a tax expense increase (Unit: \ millions, except per share data) (Unit: \billions) Revenues PC² Mobile Q2 2021 ¥56,009 37,980 18,029 Q2 2022 Outlook Q2 2022 YoY % Revenues ¥81,342 55,807 2 ¥87,300 ¥84,122 50% ~ 59,281 55,578 46% 25,535 ~ 28,019 28,544 58% Operating income 15,409 22,666 2 27,278 22,684 47% 56.0 Net income³ 8,957 16,146 ~ 19,689 24,707 176% Earnings per share 10.07 18.27~ 22.28 28.10 Exchange rates 100 KRW/JPY CNY/JPY USD/JPY 9.77 10.22 10.22 10.29 5% 16.94 19.69 19.69 19.61 16% 109.49 126.58 126.58 129.57 18% 84.1 Operating Income Net Income³ 22.7 15.4 9.0 24.7 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 1 Official titles are EA SPORTS™ FIFA ONLINE 4 (PC) and EA SPORTS™ FIFA ONLINE 4 M (mobile). 2 PC revenues include other revenues besides PC online games and mobile games. 3 Net income refers to net income attributable to owners of the parent. 4 HR costs includes HR cost (COGS), HR cost (SG&A) and R&D (SG&A). © 2022 NEXON Co., Ld. All Rights Reserved. 8#9Q2 2022 Revenue Breakdown All Regions Excluding Japan Grew Y/Y; Achieved Record-Breaking Quarterly Revenue in Korea Q2 2022 Financial Results Q2 2022 Revenue Breakdown (Unit: \mllions) Q2 2022 YoY % Change As- Q2 2021 Reported Constant Currency As- Reported Constant 7% Currency⭑ Revenue by Region' 7% 2% Korea ¥32,690 ¥51,248 ¥48,656 57% 49% China 13,484 19,238 16,865 43% 25% Region¹ Japan 2,165 2,149 2,089 (1%) (4%) 23% 61% North America and Europe 4,414 5,738 5,173 30% 17% Rest of World² 3,256 5,749 5,405 77% 66% Nexon Total 56,009 84,122 78,188 50% 40% Revenue by Platform PC3 37,980 Region¹ 55,578 51,252 46% 35% Mobile 18,029 28,544 26,936 58% 49% Korea 61% Nexon Total 56,009 84,122 78,188 ●China 23% 50% 40% FX Rate 100 KRW/JPY CNY/JPY USD/JPY 9.77 10.29 9.77 5% 16.94 19.61 16.94 16% 109.49 129.57 109.49 18% 1 Based on regions where the revenue originates; not a representation of revenues according to Nexon entities. 2 "Rest of World" includes other Asian countries as well as Central and South American countries. 3 PC revenues include other revenues besides PC online games and mobile games. Japan 2% North America & Europe 7% ●Rest of World² 7% 34% Platform Platform PC3 66% Mobile 34% 4 Constant currency is a non-GAAP measure used to show performance unaffected by fluctuations in foreign currency exchange rates. Constant-currency basis amounts are calculated using the average foreign currency exchange rates for the comparable period in the prior year and applied to the current period. As an example, we calculate royalty revenues from China Dungeon&Fighter by applying the same CNY/USD, USD/KRW and KRW/JPY exchange rates from last year's same fiscal quarter. 5 For the KPIs (MAU, Pay Rate and ARPPU) of PC online games, please refer to appendix of this presentation. 66% © 2022 NEXON Co., Ld. All Rights Reserved. 9#10Q2 2022 Accumulated Results (Unit: millions, except per share data) Q1-Q2 2022 YoY % Change (Unit: \ billions) Q2 Accumulated Revenues Operating Income Net Income4 Constant Q1-Q2 2021 As-Reported As-Reported Currency Constant Currency Revenue by Region' Korea ¥82,857 ¥99,128 ¥95,888 20% 16% 175.2 China 39,282 48,999 43,904 25% 12% Japan 5,547 4,943 4,862 (11%) (12%) 144.3 North America and Europe 9,228 10,437 9,610 13% 4% Rest of World² 7,408 11,649 11,165 57% 51% 84.1 Nexon Total 144,322 175,156 165,429 21% 15% 56.0 Revenue by Platform 65.0 PC3 103,747 123,308 115,629 19% 11% 58.7 61.2 55.0 Mobile 40,575 51,848 49,800 28% 23% 15.4 22.7 9.0 24.7 Nexon Total 144,322 175,156 165,429 21% 15% 88.3 91.0 43.3 46.0 38.5 40.3 Operating income 58,730 61,204 56,001 4% (5%) Net income4 54,991 64,968 60,127 18% 9% 2021 2022 2021 2022 2021 2022 Earnings per share 61.90 73.54 1 Based on the regions in which revenues originate; not a representation of revenues according to Nexon entities. 2 "Rest of World" includes Europe as well as other Asian countries and South American countries. 3 PC revenues include other revenues besides PC online games and mobile games. 4. Net income refers to net income attributable to owners of the parent, as stated in Nexon's consolidated financial results. 5 Constant currency is a non-GAAP measure used to show performance unaffected by fluctuations in foreign currency exchange rates. Constant-currency basis amounts are calculated using the average foreign currency exchange rates for the comparable period in the prior year and applied to the current period. As an example, we calculate royalty revenues from China Dungeon&Fighter by applying the same CNY/USD, USD/KRW and KRW/JPY exchange rates from last year's same fiscal quarter. 22 Q2 ō © 2022 NEXON Co., Ld. All Rights Reserved. 10#11Q2 2022 Korea / China - Highlights Korea Results as planned. Significant Y/Y growth driven by FIFA ONLINE 4', MapleStory and Dungeon&Fighter Mobile PC2 revenues up 52% Y/Y FIFA ONLINE 41: Grew over 2x Y/Y and achieved record quarterly revenue; MAUS, paying users and ARPPU all up driven by successful events and sales promotions MapleStory: Grew 38% Y/Y; MAUS, paying users and ARPPU all up driven by well-received 19th Anniversary Update in April and Summer Update in June Dungeon&Fighter. Grew 34% Y/Y Mobile revenues up 65% Y/Y; up 25% Q/Q Dungeon&Fighter Mobile: user engagement remained high driven by rich content and carefully-managed live operations Y/Y contributions from Dungeon&Fighter Mobile and Blue Archive, and growth in FIFA ONLINE 4 M³ were partially offset by decreases in V4 and The Kingdom of the Winds: Yeon • • China Below outlook. Dungeon&Fighter's revenue increased Y/Y driven by well- received Labor Day package sales Introduced Labor Day update (4/21 – 6/16); 14th Anniversary Update and Level Cap Release (6/16) Continued to focus on increasing user engagement rather than short-term monetization. As a result, while revenue was lower than planned, user metrics improved following the Level Cap Release and MAUs/paying users increased Q/Q despite the seasonality Q/Q ARPPU and revenue decreased due to typical seasonality Y/Y MAUS slightly decreased while paying users, ARPPU and revenue increased YoY% change: (Unit: \ millions) YOY% change: As Reported: +57% Constant Currency4: +49% As Reported: +43% Constant Currency4: +25% 51,248 47,880 40,364 32,690 31,462 31,620 PC2 29,761 32,164 22,933 28,623 19,238 20,813 19,692 13,484 11,877 19,628 22,769 11,741 11,770 15,716 Mobile 13,360 124 164 11,380 11,254 126 29,608 153 19,096 142 PC² Mobile Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 1 Official title is EA SPORTS™ FIFA ONLINE 4 (PC). 2 PC revenues include other revenues besides PC online games and mobile games. 3 Official title is EA SPORTS™ FIFA ONLINE 4 M (mobile). 4 Constant currency is a non-GAAP measure used to show performance unaffected by fluctuations in foreign currency exchange rates. Constant-currency basis amounts are calculated using the average foreign currency exchange rates for the comparable period in the prior year and applied to the current period. As an example, we calculate royalty revenues from China Dungeon&Fighter by applying the same CNY/USD, USD/KRW and KRW/JPY exchange rates from last year's same fiscal quarter. © 2022 NEXON Co., Ld. All Rights Reserved. 11#12Q2 2022 Japan / North America and Europe/ Rest of World - Highlights Japan Slightly below outlook due to Counter.Side Benefited from Counter.Side TRAHA and V4 decreased Y/Y North America and Europe Results as planned Benefited from new games MapleStory M grew Y/Y Choices and MapleStory decreased Y/Y Rest of World' Exceeded outlook driven by MapleStory franchises and new games • Benefited from new games • MapleStory franchises grew significantly Y/Y (Unit: \ millions) YOY% change: YoY% change: As Reported: -1% Constant Currency²: -4% As Reported: Constant Currency²: +30% +17% YOY% change: As Reported: +77% Constant Currency²: +66% 5,738 5,562 5,900 5,749 4,890 4,414 4,550 4,699 1,617 PC3 4,077 2,462 PC3 1,378 2,794 1,470 1,313 1,196 3,256 3,585 3,889 2,481 2,165 2,441 2,149 2,200 873 1,679 658 988 835 783 PC3 4,121 2,944 3,237 3,512 Mobile 3,503 3,287 Mobile 1,507 1,493 1,606 1,921 1,366 Mobile 1,577 1,977 1,877 2,011 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 1 "Rest of World" includes other Asian countries as well as Central and South American countries. 2 Constant currency is a non-GAAP measure used to show performance unaffected by fluctuations in foreign currency exchange rates. Constant-currency basis amounts are calculated using the average foreign currency exchange rates for the comparable period in the prior year and applied to the current period. As an example, we calculate royalty revenues from China Dungeon&Fighter by applying the same CNY/USD, USD/KRW and KRW/JPY exchange rates from last year's same fiscal quarter. 3 PC revenues include other revenues besides PC online games and mobile games. 4 Official title is Choices: Stories You Play. © 2022 NEXON Co., Ld. All Rights Reserved. 12#13Q3 2022 Outlook#14Q3 2022 Financial Outlook Expect Group Revenues to Grow Y/Y Driven by Growth of Major Franchises and New Mobile Titles in Korea Revenues Operating Income Net Income5 • Constant currency up 13% to 22% • PC2: Growth driven by FIFA ONLINE 43, and Korea MapleStory • Mobile: Expect to benefit from Dungeon&Fighter Mobile and HIT2, scheduled to launch in Korea on August 25 . Expect a Y/Y increase driven by revenue growth Expect increased variable costs, HR costs4, and marketing costs as well as server costs • Expect a Y/Y decrease • In Q3 2021, we recorded an ¥16.1 billion FX gain primarily on U.S. dollar-denominated cash deposits and a revaluation gain of ¥1.7 billion due to movements in the market price of bitcoin (Unit: millions, except per share data) Q3 2021 Q3 2022 Outlook YoY % Revenues PC2 ¥75,890 ¥96,039 ¥104,038 27% 2 37% 57,278 67,298 72,221 17% 26% Mobile 18,612 28,741 31,817 54% 71% (Unit: \ billions) Q3 Accumulated (High-end) Revenues Operating Income Net Income 5 279.2 Operating income 29,835 30,143 36,635 1% 23% Net income5 37,902 21,559 26,395 (43%) (30%) 220.2 104.0 Earnings per share 42.44 24.94 30.53 75.9 FX Rate Assumptions 100 KRW/JPY CNY/JPY USD/JPY 9.51 10.48 10.48 10% 17.02 20.32 20.32 110.11 136.79 136.79 19% 24% 84.1 56.0 97.8 88.6 92.9 91.4 36.6 29.8 37.9 26.4 15.4 22.7 9.0 24.7 88.3 91.0 43.3 38.5 46.0 40.3 Forex sensitivity: Every one Japanese yen move against the U.S. dollar would have the following impact on our financials for Q3 2022 Revenues Operating Income 0.72 billion yen 0.26 billion yen 1 Constant currency is a non-GAAP measure used to show performance unaffected by fluctuations in foreign currency exchange rates. Constant-currency basis amounts are calculated using the average foreign currency exchange rates for the comparable period in the prior year and applied to the current period. As an example, we calculate royalty revenues from China Dungeon&Fighter by applying the same CNY/USD, USD/KRW and KRW/JPY exchange rates from last year's same fiscal quarter. 2021 2022 2 PC revenues include other revenues besides PC online games and mobile games 3 Official title is EA SPORTS™ FIFA ONLINE 4 (PC). 4 HR costs includes HR cost (COGS), HR cost (SG&A) and R&D (SG&A). 5 Net income refers to net income attributable to owners of the parent. 2021 2022 2021 2022 6 In most situations, the exchange rates of both the South Korean Won and the Chinese Yuan are linked to the U.S. Dollar. For simplicity, forex sensitivity is calculated based on the assumption that Korean Won and Chinese Yuan move similarly against Japanese Yen when there is an exchange rate movement in U.S. Dollar and Japanese Yen. © 2022 NEXON Co., Ld. All Rights Reserved. 14#15• Q3 2022 Korea / China Outlook Korea Expect revenues to increase Y/Y driven by FIFA ONLINE 4' and MapleStory as well as contributions from Dungeon&Fighter Mobile and HIT2 PC2: Expect to increase Y/Y - MapleStory: Expect to increase Y/Y; MAUS in July reached to the level of Q3 2020 when we achieved record Q3 revenue Expect FIFA ONLINE 4¹ to grow significantly while Dungeon&Fighter and Sudden Attack to decrease Y/Y Mobile: Expect to increase Y/Y Expect to benefit from Dungeon&Fighter Mobile and HIT2, which is scheduled to launch on August 25 Expect FIFA ONLINE 4 M³ to increase Y/Y while The Kingdom of the Winds: Yeon, KartRider Rush+, and V4 to decrease Y/Y • • China Expect Dungeon&Fighter's revenue to decrease Y/Y due to a challenging comparison with Q3 2021 Introduced Summer Update (7/14); scheduled to introduce National Day Update (September) In July, MAUS and paying users were at a lower level compared to the same period of last year following the successful 13th Anniversary and Summer Update Expect Q3 revenue to decrease Y/Y due to a challenging comparison with Q3 2021; in the last Q3, we achieved 33% Y/Y revenue growth on a constant currency in China driven by the successful Summer Update and well-received new initiatives Continue to focus on user engagement over monetization to retain existing players and to attract returning players (Unit: \ millions) Q3 2021 Q3 2022 Outlook YoY % Change Actual Low-end High-end As-Reported 40,364 61,386 ~ 65,521 52% ~ 62% Constant Currency 38% ~ 47% 65,521 Q3 30 40,364 51,248 32,690 22 50,167 47,880 Q1 2021 2022 (High-end) 1 Official title is EA SPORTS™ FIFA ONLINE 4 (PC). 2 PC revenues include other revenues besides PC online games and mobile games 3 Official title is EA SPORTS™ FIFA ONLINE 4 M (mobile). Q3 2021 Q3 2022 Outlook YoY % Change Constant Actual Low-end High-end As-Reported Currency 22,933 20,329 ~ 22,888 (11%) ~ (0%) (25%) ~ (16%) 22,888 Q3 22,933 13.484 25,798 19,238 29,761 σ 2021 2022 (High-end) 4 Constant currency is a non-GAAP measure used to show performance unaffected by fluctuations in foreign currency exchange rates. Constant-currency basis amounts are calculated using the average foreign currency exchange rates for the comparable period in the prior year and applied to the current period. As an example, we calculate royalty revenues from China Dungeon&Fighter by applying the same CNY/USD, USD/KRW and KRW/JPY exchange rates from last year's same fiscal quarter. © 2022 NEXON Co., Ld. All Rights Reserved. 15#16Q3 2022 Japan / North America and Europe/ Rest of World 1 Outlook Japan Expect revenues to increase Y/Y Expect to benefit from Counter.Side and Blue Archive Expect Y/Y decreases in TRAHA and V4 • • North America and Europe Expect revenues to increase Y/Y Expect to benefit from new games Expect a Y/Y decrease in Choices³ Rest of World' Expect revenues to increase Y/Y • Expect to benefit from new games (Unit: \millions) Q3 2021 Q3 2022 Outlook YoY % Change Q3 2021 Q3 2022 Outlook Constant Actual Low-end High-end As-Reported Actual Low-end 2,481 2,492 ~ 2,886 0% ~ 16% Currency² (4%)~ High-end As-Reported YoY % Change Constant Currency² 11% 4,550 5,012 ~ 5,491 10%~ 21% (6%). ~ 2% Q3 2021 Q3 2022 Outlook Actual Low-end High-end As-Reported YoY % Change Constant Currency² 5,562 6,820 ~ 7,252 23%~ 30% 10% ~ 17% 7,252 Q3 5,491 Q3 4,550 5,562 5,749 5,738 Q2 Q2 2,481 2,886 Q3 4,414 3,256 2,165 2,149 Q2 4,814 3,382 4,699 5,900 Q1 2,794 Q1 4,152 2021 2022 (High-end) 2021 2022 2021 (High-end) 2022 (High-end) 1 "Rest of World" includes other Asian countries as well as Central and South American countries. 2 Constant currency is a non-GAAP measure used to show performance unaffected by fluctuations in foreign currency exchange rates. Constant-currency basis amounts are calculated using the average foreign currency exchange rates for the comparable period in the prior year and applied to the current period. As an example, we calculate royalty revenues from China Dungeon&Fighter by applying the same CNY/USD, USD/KRW and KRW/JPY exchange rates from last year's same fiscal quarter. 3 Official title is Choices. Stories You Play. © 2022 NEXON Co., Ld. All Rights Reserved. 16#17Q3 2022 Operating Income & Cost Outlook (Unit: \ billions) Y/Y Operating Income Comparison (High-end) 29.8 28.1 8.0 7.6 3.2 2.5 1 Operating Income Revenue increase 2021 Q3 Variable Costs HR Costs Marketing Costs Others 1 HR costs includes HR cost (COGS), HR cost (SG&A) and R&D (SG&A).. 2 Official titles are EA SPORTS™ FIFA ONLINE 4 (PC) and EA SPORTS™ FIFA ONLINE 4 M (mobile). Increased revenues Increased variable costs including: • • PG fees associated with mobile revenue growth Royalty costs in relation to increased revenues from FIFA ONLINE 42 36.6 Operating Income 2022 Q3 (High-end) Increased HR costs' related to: • • Headcount for development and launch of multiple new Virtual Worlds Bonus accruals for contributions to great performances Increased marketing costs primarily associated with promotions for new games including HIT2 Others include: Increased server costs • Increased outsourcing fees © 2022 NEXON Co., Ld. All Rights Reserved. 17#18Shareholder Return Dividend ☐ ☐ Scheduled to pay the annual dividend of 10 yen per share for 2022 Approved an interim dividend of 5 yen per share on August 9th, 2022 Buy-back The Board of Directors approved a new share repurchase policy to buy-back up to 100 yen billion over the next three years Conduct the share repurchase by August 2025 by considering several factors including investment opportunities, financial and market conditions ¥ (Unit: per share) 2.5 LQ 5 10 7.5 Six-month ¥30 Bn Buyback Policy Three-year ¥100 Bn Buyback policy New Three-year ¥100 Bn Buyback policy Completed earlier than planned Conducted \32.5 Bn per year on average Plan to conduct 2019 2020 2021 2022 2019 2020 2021 2022 2023 2024 2025 © 2022 NEXON Co., Ld. All Rights Reserved. 18#192022 China Dungeon&Fighter Update Schedule Period Tier 1 Content Update 이 Q1 ☆ Lunar New Year Update Labor Day Update Q2 Q3 Q4 ☆ 2021 January 21st April 22nd 2022 January 20th April 21st Anniversary Update Level Cap Release Summer Update National Day Update Winter Update June 17th June 16th N/A July 8th September 14th N/A June 16th July 14th September TBD Indicates financially important updates * 2022 update schedule is subject to change depending on various operational factors © 2022 NEXON Co., Ld. All Rights Reserved. 19#20Pipeline¹ Dungeon&Fighter Mobile2 HIT22 Veiled Experts Π 1 Chart is illustrative excerpt of pipeline. 2 Games based on original IP. 3 Tentative title & FIGHTER MOBIL D KARTRIDER DRIFT KartRider: Drift² embark Project Discovery³ 9 9 著 PROJECT MOD 4 WARRIORS Tales Weaver. SecondRun² Dynasty Warriors 9 Project MOD³ Mobile2,3 프라시아전기 WARS OF PRASIA Project HP³ HP KOREA CHINA JAPAN # PC ONLINE MOBILE CONSOLE NORTH AMERICA & REST OF THE WORLD ARC Raiders embark ARC Raiders * PROJECT THE FIRST DESCENDANT The First Descendant Project AK2,3,4 DUNGEON & FIGHTER OVERKILL MABINOGI MOBILE² WARS OF PRASIA 4 PC 3D action RPG based on Dungeon&Fighter universe. 5 PC 3D side-scrolling action RPG based on Dungeon&Fighter universe. 6 Game titles in Korea and Japan are subject to change. Argent Twilight: Secret of the Dark Orbs6 7 The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which are shown in this material are trademarks, registered trademarks, copyrighted works or other legally protected materials owned by respective right holders # OVERKILL 2,3,5 © 2022 NEXON Co., Ld. All Rights Reserved. 20#21Appendix#22Financials#23Summary of Results and Key Operational Metrics (Unit: millions, except per share data) (By Region) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q12022 Q2 2022 YOY% Korea ¥50,167 ¥32,690 ¥40,364 ¥31,462 ¥47,880 ¥51,248 57% China 25,798 13,484 22,933 11,380 29,761 19,238 43% Japan 3,382 2,165 2,481 2,441 2,794 2,149 (1%) North America and Europe 4,814 4,414 4,550 4,890 4,699 5,738 30% Rest of World' 4,152 3,256 5,562 4,077 5,900 5,749 77% (By Platform) PC 2 65,768 37,980 57,278 35,359 67,730 55,578 46% Mobile 22,545 18,029 18,612 18,891 23,304 28,544 58% Revenue 88,313 56,009 75,890 54,250 91,034 84,122 50% Operating income 43,321 15,409 29,835 2,976 38,520 22,684 47% Net income 3 46,034 8,957 37,902 21,995 40,261 24,707 176% Earnings per share 51.86 10.07 42.44 24.56 45.35 28.10 FX rate 100 KRW/JPY CNY/JPY USD/JPY KPI (Excluding Mobile) MAU (millions) Pay Rate ARPPU (as-reported) 1 "Rest of World" includes other Asian countries as well as Central and South American countries. 9.52 9.77 9.51 9.62 9.65 10.29 5% 16.33 16.94 17.02 17.81 18.30 19.61 16% 105.90 109.49 110.11 113.71 116.20 129.57 18% 16.4 14.0 15.2 12.4 13.3 13.6 (3%) 19.7% 19.3% 22.1% 21.1% 22.5% 10,516 7,103 9,241 6,356 12,586 22.5% 8,920 26% 2 PC revenues include other revenues besides PC online games and mobile games. 3 Net income refers to net income attributable to owners of the parent. © 2022 NEXON Co., Ld. All Rights Reserved. 23#24FY2021 FY2022 Q1 Q2 Q3 Q4 Q1 Q2 Total Cost of Revenue' 2 ¥18,699 ¥16,702 ¥18,739 ¥17,981 ¥21,924 ¥24,966 Royalty 7,977 5,967 7,712 5,634 9,013 9,142 HR cost (COGS) ³ 3 7,281 7,489 7,553 8,576 8,671 10,960 Other (COGS) 4 3,441 3,246 3,474 3,771 4,240 4,864 COGS and SG&A¹ (Unit: \ millions) Total SG&A' 26,317 23,948 27,467 30,758 30,475 34,322 HR cost 6,582 6,586 6,818 8,566 7,423 7,835 PG fee 5 8,299 6,350 6,894 6,614 8,480 10,909 R&D 4,976 4,935 5,203 5,883 5,790 6,637 Marketing/advertising expenses 3,132 2,968 5,078 6,209 4,856 5,564 Depreciation and amortization 1,453 1,463 1,439 1,088 1,065 934 Other 1,875 1,646 2,035 2,398 2,861 2,443 6 Other Income Other Expense Includes: impairment loss 1 Breakdown of COGS and SG&A are unaudited. 2 Royalty includes royalties paid to third-party developers in order for us to obtain the right to publish their games. 3 HR cost includes salaries, bonuses and benefits for our live game developers, who support post launch servicing, updating and support for our games. 124 163 197 321 160 136 100 113 46 19 97 5 2,856 2,820 275 2,286 241 2,219 4 Other (COGS) primarily consists of depreciation and amortization of assets related to existing games, connection fees (mainly comprised of co-location and datacenter fees, internet bandwidth and access fees), and the costs of purchasing and maintaining our servers and computer equipment. 5 PG fee in SG&A includes commissions made to external payment gateway companies when users purchase in- game items in PC Online games that we service. It also includes mobile carrier-related commissions we pay regarding our Japanese mobile browser games, commissions we pay to Apple/Google regarding our mobile native games globally, and platform commission fees related to mobile browser games. 6 Other Income includes other non-operating income, reversal of deferred revenue, gain on sale of properties, gain on change in equity and gain on step acquisition. 7 Other Expense includes other non-operating expenses, loss on sale/disposal of properties, loss on impairment of tangible fixed assets, loss on impairment of intangible assets, loss on impairment of other fixed assets and loss on change in equity. It also includes impairment loss of game IPs and goodwill. © 2022 NEXON Co., Ld. All Rights Reserved. 24 24#25P&L Below Operating Income (Unit: \ millions) FY2021 FY2022 Q1 Q2 Q3 Q4 Q1 Q2 Operating Income ¥43,321 ¥15,409 ¥29,835 ¥2,976 ¥38,520 ¥22,684 Finance Income' 20,995 3,949 18,404 6,926 23,308 31,844 Finance Costs 2 650 1,264 1,160 681 3,695 4,176 (Loss) / reversal of loss on revaluation ³ (4,499) 1,714 1,196 339 (5,334) Equity profit/(loss) of affiliates, (91) 300 (435) (773) (1,271) (3,320) equity method companies Income before Income Tax 63,575 13,895 48,358 9,644 57,201 41,698 Tax expense 17,842 5,361 10,677 (11,474) 17,082 17,280 Non-controlling interests Net income 4 (301) (423) (221) (877) (142) (289) 46,034 8,957 37,902 21,995 40,261 24,707 1 Finance Income includes interest income primarily on cash deposits. 2021 Q1, Q3, Q4, and 2022 Q1, Q2 Finance Income includes FX conversion gains related to foreign currency deposits and accounts receivable. 2 2021 Q2 Finance Costs are primarily caused by FX conversion loss related to foreign currency deposits and accounts receivable. 3 Loss/reversal of loss on revaluation refers to loss/ reversal of loss on revaluation of cryptocurrency. 4 Net income refers to net income attributable to owners of the parent. © 2022 NEXON Co., Ld. All Rights Reserved. 25#26Cash Flow Statement (Unit: \ millions) 6 months ended June 30, 2021 ¥37,234 6 months ended June 30, 2022 ¥58,498 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash and cash equivalents 10,968 15,041 (2,569) (87,585) 45,633 (14,046) Cash and cash equivalents at beginning of fiscal year 252,570 365,239 Effect of exchange rate change on cash and cash equivalents 8,384 44,491 Cash and cash equivalents at end of fiscal year 306,587 395,684 © 2022 NEXON Co., Ld. All Rights Reserved. 26#27Balance Sheet (Unit: \ millions) December 31, 2021 June 30, 2022 December 31, 2021 June 30, 2022 Asset Current Assets Liability Current liabilities Cash and cash equivalents ¥365,239 ¥395,684 Other deposits Other current assets Total current assets 169,689 58,789 593,717 147,799 Current tax liabilities Current borrowings 16,599 23,571 68,177 Others 36,726 45,929 611,660 Noncurrent assets Total current liabilities Noncurrent liabilities 53,325 69,500 Tangible assets 24,448 26,433 Non-current borrowings Goodwill 38,938 42,759 Others 87,414 93,891 Intangible assets 17,703 11,651 Total noncurrent liabilities 87,414 93,891 Investments accounted for using equity method 58,933 90,155 Total liabilities 140,739 163,391 Other non-current financial assets 202,588 200,228 Others Total noncurrent assets 50,305 392,915 57,329 Shareholders' equity 428,555 Capital stock Total assets 986,632 1,040,215 Capital surplus Treasury shares 34,255 37,306 14,961 16,703 (17,863) (101,831) Other equity interest Retained earnings 92,747 142,306 712,568 773,104 Non-controlling interests 9,225 9,236 Total equity 845,893 Total liabilities and total equity 986,632 876,824 1,040,215 © 2022 NEXON Co., Ld. All Rights Reserved. 27#28P&L by Reporting Segment (Unit: \ millions) Japan Revenue from external customers Q1 FY2021 Q2 Q3 Q4 FY2022 Q1 Q2 Segment profit/(loss) ¥1,340 ¥1,025 ¥1,339 ¥1,338 ¥1,270 ¥1,017 (2,285) (2,449) (2,814) (4,391) (3,075) (2,757) Korea Revenue from external customers 81,502 50,105 69,827 48,693 85,375 79,085 Segment profit/(loss) 45,606 18,266 33,272 12,047 43,044 30,270 China Revenue from external customers 1,049 674 901 526 899 719 Segment profit/(loss) 736 298 525 121 506 288 North America Revenue from external customers 4,075 3,975 3,436 3,418 3,077 3,023 Segment profit/(loss) 262 519 (162) (794) (615) (1,561) Others Revenue from external customers 347 230 387 275 413 278 Segment profit/(loss) (1,023) (1,258) (1,149) (1,472) (1,224) (1,401) Adjustments Revenue from external customers Segment profit/(loss) Total Revenue from external customers Segment profit/(loss) (17) 12 (1) (5) 88,313 56,009 75,890 54,250 91,034 43,297 15,359 29,684 5,511 38,635 84,122 24,834 1 Representation based on location of Nexon's entities; not based on regions where the revenue originates. © 2022 NEXON Co., Ld. All Rights Reserved. 28#29NJ Corporate Entity Financial Statement (1) (Unit: \ millions) Income Statement FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 Revenue Cost of revenue Gross profit SG&A ¥5,815 ¥5,208 ¥5,927 ¥7,024 ¥6,016 ¥5,411 ¥5,898 3,117 3,134 3,438 3,510 3,249 2,681 3,040 2,698 2,074 2,489 3,514 2,767 2,730 2,858 6,470 6,736 6,941 9,447 7,910 7,893 11,269 Operating profit/(loss) (3,772) (4,662) (4,452) (5,933) (5,143) (5,163) (8,411) Non-operating income 19,163 636 5,049 15,646 32,565 47,902 94,274 Includes: dividend income 18,869 22 4,612 15,025 30,313 46,460 87,397 Non-operating expenses 1,246 1,826 1,969 9,352 4,063 2,802 1,700 Ordinary income/(loss) 14,145 (5,852) (1,372) 361 23,359 39,937 84,163 Extraordinary income 6,443 852 58 109 635 189 1,007 Extraordinary losses 6,897 39,573 9,643 138 77 647 78 Income/(loss) before income taxes 13,691 (44,573) (10,957) 332 23,917 39,479 85,092 Tax expense 5,519 (201) 234 755 1,520 2,327 6,425 Net income/(loss) 8,172 (44,372) (11,191) (423) 22,397 37,152 78,667 1 Excerpt of NEXON Co., Ltd.'s standalone financial statements included in Annual Securities Report (Yuuka Shouken Houkokusho). Please note NEXON Co., Ltd.'s standalone financial statements are based on J-GAAP (Nexon Group's consolidated financial statements are based on IFRS). © 2022 NEXON Co., Ld. All Rights Reserved. 29#30NJ Corporate Entity Financial Statement¹ (2) (Unit: \ millions) Balance Sheet Current assets Includes: cash and cash equivalents Non-current assets December 31, 2015 December 31, 2016 December 31, 2017 December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 ¥70,444 ¥52,632 ¥42,946 68,997 38,190 49,531 6,438 41,868 ¥55,209 53,096 ¥45,374 43,100 5,494 4,836 17,630 ¥85,462 83,523 17,851 ¥144,774 143,334 44,903 Property, plant and equipment 200 74 7 3 1 6 5 Intangeble assets 66 Investments and other assets 37,924 6,364 5,487 Total assets 108,634 59,070 48,440 4,833 60,045 17,629 17,845 63,004 103,313 44,898 189,677 Current liabilities Non-current liabilities Total liabilities 3,506 2,341 1,796 2,303 2,037 2,085 4,376 498 448 457 415 363 469 468 4,004 2,789 2,253 2,718 2,400 2,554 4,844 Shareholder's equity Capital stock 99,779 50,669 41,230 50,838 53,133 92,510 174,099 56,227 3,307 9,183 14,199 17,757 22,470 34,167 Capital surplus 36,087 88,621 43,021 36,846 39,981 21,720 33,417 Includes: other capital surplus 30,000 86,064 34,588 23,397 22,974 Retained earnings 7,465 (41,259) (10,974) (206) 22,614 48,320 122,547 Includes: other retained earnings 6,160 (41,476) (11,191) (423) 22,397 48,103 122,330 Treasury shares (27,219) (0) (16,032) Valuation and translation adjustments 246 77 (10) (21) (28) (21) (15) Subscription rights to shares 4,605 5,535 4,967 6,510 7,499 8,270 10,749 Total net assets 104,630 56,281 46,187 57,327 60,604 100,759 184,833 Statement of changes in equity (excerpt) Payment of dividends Acquisition of treasury shares Cancellation of treasury shares FY2015 FY2016 FY2017 (4,305) (4,352) (10,000) (5,000) 10,000 5,000 (10,000) 10,000 1 Excerpt of NEXON Co., Ltd.'s standalone financial statements included in Annual Securities Report (Yuuka Shouken Houkokusho). Please note NEXON Co., Ltd.'s standalone financial statements are based on J-GAAP (Nexon Group's consolidated financial statements are based on IFRS). FY2018 FY2019 (27,218) FY2020 FY2021 (4,418) (2,783) 30,002 (4,440) (16,032) © 2022 NEXON Co., Ld. All Rights Reserved. 30#31Number of Employees by Reporting Segment Full-time employees March 31 2021 June 30 2021 September 30 2021 December 31 2021 March 31 June 30 2022 2022 Japan 265 265 265 270 269 Korea China 274 5,143 5,246 5,404 5,457 5,555 5,750 213 207 202 203 202 203 North America 342 342 357 353 357 383 Others Total 334 347 372 400 425 457 6,297 6,407 6,600 6,683 6,808 7,067 © 2022 NEXON Co., Ld. All Rights Reserved. 31#32Historical Financials (Unit: \billions) Revenue by Region¹ North America and Europe 7% Rest of World² 6% Korea China Japan North America and Europe Rest of World2 293.0 274.5 253.7 16.5 248.5 Japan 234.9 19.9 17.0 11.4 10.4 18.7 4% 13.2 9.8 21.5 10.5 19.5 190.3 183.1 172.9 12:1 14.1 13.9 81.2 73.6 155.3 4.4 2.7 12.5 6.4 21.0 4.1 7.9 16 11.4 29.9 108.4 8.0 115.4 133.0 112.2 36.4 4.4 75.4 74.2 China 27% FY2021 Revenue by Region¹ Korea 56% 7.8 67.0 19.2 165.0 154.7 63.9 48.4 65.4 77.0 74.2 80.5 89.8 73.8 43.0 28.7 4 4 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Revenue by Platform PC3 Mobile 293.0 274.5 253.7 248.5 234.9 97.1 78.1 54.9 190.3 60.6 Mobile 28% 183.1 51.4 172.9 155.3 42.0 34.2 43.3 108.4 28.4 FY2021 Revenue by Platform 8.2 198.9 183.5 188.0 195.9 196.4 138.7 148.3 139.8 127.0 100.2 FY12 FY13 FY14 FY15 4 FY16 FY17 FY18 1 Based on regions where the revenue originates; not a representation of revenues according to Nexon entities. 2 "Rest of World" includes other Asian countries as well as Central and South American countries. 3 PC revenues include other revenues besides PC online games and mobile games. 4 FY16 and FY19 grew Y/Y on a constant currency basis. 4 FY19 FY20 FY21 5 Nexon Group has made a change to a part of its regional segmentation of revenue from external customers from Q1 2020. The numbers for the past years have also been adjusted accordingly PC3 72% © 2022 NEXON Co., Ld. All Rights Reserved. 32#33Key Titles by Region¹ Korea | PC³ ☐ MOBILE China Japan N. America and Europe Rest of World2 C EA SPORTS™M FIFA ONLINE 4 Dungeon&Fighter Mobile Dungeon&Fighter Blue Archive MapleStory M MapleStory ☐ MapleStory EA SPORTS™M FIFA ONLINE 4 M MapleStory ☐ Dungeon&Fighter The Kingdom of the Winds: Yeon Counter Strike Online 口 Sudden Attack Blue Archive 7% 7% 2% TOTS 23% FY2022 Q2 Region¹ Mabinogi PC3 EA SPORTS™ FIFA MOBILE MOBILE 1 Based on regions where the revenue originates; not a representation of revenues according to Nexon entities. 2 "Rest of World" includes other Asian countries as well as Central and South American countries. A MapleStory Choices: Stories You Play e MapleStory M MapleStory M MapleStory KartRider Rush+ Korea 61% China 23% Japan 2% 61% North America & Europe 7% Rest of World² 7% 34% FY2022 Q2 Platform 66% 3 PC revenues include other revenues besides PC online games and mobile games. 4 The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which are shown in this material are trademarks, registered trademarks, copyrighted works or other legally protected materials owned by respective right holders PC3 66% Mobile 34% © 2022 NEXON Co., Ld. All Rights Reserved. 33#34NEXON IP#35DUNGEON &IGHER 凸 Dungeon&Fighter Franchise LTD Overview Launched 2005 Over 850 million registered users worldwide Life-to-date gross revenue well over $20 billion USD Gross revenue several billion dollars more than life-to-date box office of Star Wars and Harry Potter series; more than double the revenue of the entire Avengers series¹ Constantly evolving for 17 years with new characters, skills and communities Mobile version launched in Korea on March 24, 2022. Highest ranking #1 on iOS and AOS Easy-to-learn, hard-to-master accessibility, action-packed gameplay and iconic, pixelated art make Dungeon&Fighter one of the world's most popular and enduring game franchises 1 Life-to-date global box office revenues as of August 8th, 2022 sourced from BoxOfficeMojo.com 2 The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which are shown in this material are trademarks, registered trademarks, copyrighted works or other legally protected materials owned by respective right holders © 2022 NEXON Co., Ltd. All Rights Reserved. 35#36MapleStory a D MapleStory Franchise LTD Overview Revenue E Ŀ Launched 2003 Over 180 million registered users worldwide. Player registrations equal to 45% of Korean population Life-to-date franchise revenue over $3 billion USD Ill Combined PC and mobile revenue exceeds global box office of the movie franchise Frozen - one of Disney's biggest¹ An easy-to-learn, hard-to-master MMORPG with cross-cultural appeal that has been growing players and revenue over 19 years. Players love personalizing their characters Korea MapleStory Revenue Korea MapleStory M 2003 Year 2021 2016 2021 1 Life-to-date global box office revenues as of August 8th, 2022 sourced from BoxOfficeMojo.com 2 The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which are shown in this material are trademarks, registered trademarks, copyrighted works or other legally protected materials owned by respective right holders Year © 2022 NEXON Co., Ltd. All Rights Reserved. 36#37CRAZYRACING KARTRIDER TM KARTRIDE www W KartRider Franchise LTD Overview $ Launched 2004 Registered users over 380 million PC platform alone Over half of all Korean population; over 45% of Taiwanese population has played the game Combined PC and mobile Life-to-date gross revenue over $1.0 billion A fast-paced online casual racing game with easy-to-learn, hard-to-master UI, and a universe of compelling characters which can be stylized to the player's taste 1 The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which are shown in this material are trademarks, registered trademarks, copyrighted works or other legally protected materials owned by respective right holders © 2022 NEXON Co., Ltd. All Rights Reserved. 37#38SUDDEN ATTACK S.A Sudden Attack LTD Overview Launched 2005 Registered users over 23 million $ Life-to-date revenue over $0.7 billion Highly accessible online First-Person Shooter with fast, visceral action 1 The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which are shown in this material are trademarks, registered trademarks, copyrighted works or other legally protected materials owned by respective right holders © 2022 NEXON Co., Ltd. All Rights Reserved. 38#39바람의나라 年 The Kingdom of the Winds Franchise LTD Overview F Launched 1996 Registered users over 26 million World's longest-running graphic MMORPG. Over 26 year service period Mobile version launched on July 15, 2020. Highest ranking #1 on iOS and #2 on AOS A popular and enduring MMORPG based on historical comic about the Goguryeo Dynasty 1 The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which are shown in this material are trademarks, registered trademarks, copyrighted works or other legally protected materials owned by respective right holders © 2022 NEXON Co., Ltd. All Rights Reserved. 39#40fantasy LIFE Mabinogi Mabinogi LTD Overview Launched 2004 Registered users over 20 million $ Life-to-date revenue over $0.6 billion MMORPG with life-oriented content and contemporary music, fashion, and cooking. Highly differentiated from existing battle- focused games that saturate the market 1 The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which are shown in this material are trademarks, registered trademarks, copyrighted works or other legally protected materials owned by respective right holders © 2022 NEXON Co., Ltd. All Rights Reserved. 40#41NEXON'S Business#42Global Leader in Virtual Worlds Nexon is Well-positioned to Benefit from the Paradigm Shift in the Entertainment Industry Immersive Offline ALIEN ISOLATION TACTICAL ESPIONAGE ACTION METAL GEAR Gardenscapes PLANTS VEZOMBIES CIVILIZATION VI SIMCITYA DELUXE EDITION ريال grand theft auto UNGEON MapleStory 바람의나라 IGHER CALL DUTY BOWMASTERS 1 The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which are shown in this material are trademarks, registered trademarks, copyrighted works or other legally protected materials owned by respective right holders. Light Animal Crossing PUZZLE DRAGONS MONSTER STRIKE KARTRIDER DRIFT FORTNITE CHAPTER CLASH ROYALE 2 The categorization of the games shown in this material is based on our own view. It may not necessarily reflect the common views in the market. Online © 2022 NEXON Co., Ld. All Rights Reserved. 42#43Nexon Focus III.. * 1 FOCUS ON VIRTUAL WORLDS 2 PLATFORM EXPANSION 1 The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which are shown in this material are trademarks, registered trademarks, copyrighted works or other legally protected materials owned by respective right holders. SE IN embark 3 LEVERAGE OUR OWN IP 4 INVEST IN NEW IP AND TECHNOLOGY © 2022 NEXON Co., Ld. All Rights Reserved. 43#44Solid Foundation. Significant Opportunities for Growth Big Growth Opportunities Layered on Top of Core Business REVENUE MapleStory DUNGEON &IGHER MOBILE 7 CRAZYRACING KARTRIDER 2022 1 The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which are shown in this material are trademarks, registered trademarks, copyrighted works or other legally protected materials owned by respective right holders. UNGEON IGHER WARS OF PRASIA MABINOGI MOBILE ARC Raiders KARTRIDER DRIFT PROJECT HP The First Descendant Argent Twilight. Secret of the Dark Orbs Opportunity HIT2 Solid Foundation EA SPORTS FIFA FIFA SUDDEN ATTACK ONLINE 4 바람나라 Time © 2022 NEXON Co., Ld. All Rights Reserved. 44#45Mental Model of Virtual Worlds Virtual Worlds Can Grow Over a Period of Years Despite the Near-term Ups and Downs REVENUE → TIME VIRTUAL WORLDS O TRADITIONAL GAMES © 2022 NEXON Co., Ld. All Rights Reserved. 45#46Glossary of Terms Term/Abbreviation FPS (first person shooter) MMORPG (massively multiplayer online role playing game) MAU (monthly active user) ARPPU (average revenue per paying user) Pay Rate MCCU (maximum concurrent users) Closed Beta Test (CBT) Open Beta Test (OBT) Tier One Update Tier Two Update Meaning A game in which the player plays from the point of view of the game character in three-dimensional graphics An online role-playing game that has a "massive" number (usually several hundred or more) of players who play concurrently Monthly total number of users who logged in and played Nexon's PC online games. MAU in this presentation is the quarterly average of such numbers. Nexon's PC online games include game developed and serviced by Nexon group, games developed by Nexon group and serviced by non-Nexon group publishers, and game developed by non Nexon group acquired publishing rights. The amount obtained by dividing monthly PC online game gross revenues by the number of monthly paying users. ARPPU in this presentation is the quarterly average of such numbers. Gross revenues used in the calculation are in-game sales, and exclude other revenues included in PC revenues such as sales from PC café time charge. The percentage rate obtained by dividing the number of monthly paying users by the number of monthly active users. Pay rate in this presentation is calculated using the quarterly average of such numbers. The maximum number of users concurrently accessing a game at a particular moment. MCCU is generally used to measure the popularity of a game A trial version (beta version) of a game offered for a certain period of time to a limited number of users or groups. A Limited Beta Test in an even smaller-scale trial mode of a game with fewer numbers of users or group A trial version (beta version) of a game a certain period of time without restrictions on participation. OBT is usually conducted after CBT. Large scale update to existing PC games typically launched in Q1 or Q3 around peak season Smaller update to existing PC games released throughout the year © 2022 NEXON Co., Ld. All Rights Reserved. 46#47Disclaimer This presentation is prepared to offer reference information about NEXON group to the investors and is intended to generally provide investors and analysts with financial and operational information about Nexon, but not to solicit or recommend any sale or purchase of stock or other securities of Nexon. NEXON Co., Ltd. ("Nexon") has not verified and would assume no responsibility for the accuracy, appropriation, or completeness thereof. This presentation does not contain all relevant information relating to Nexon or the sale of its shares, including, without limitation, the information that would be stated under the captions "Risk Factors", "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business" in an annual report. Any investment decision with respect to any shares of Nexon should be made solely upon the basis of the information contained in the disclosure documents and is qualified in its entirety by reference to the detailed information appearing in the disclosure documents. This presentation includes non-GAAP and non-IFRS financial measures, including but not limited to key performance indicators, as well as ratios calculated on the basis thereof. These non-GAAP and non-IFRS financial measures should not be considered in isolation or as a substitute for the most directly comparable financial measures included in our consolidated financial statements and presented in accordance with IFRS. This presentation includes forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “anticipate", "assume", "believe", "estimate", "expect", "forecast", "may", "plan", "potential”, “predict", "seek", "should", or "will", or by other similar terminology. These statements discuss expectations, identify strategies, contain projections of Nexon's financial condition or results of operations or state other forward-looking information. The forward-looking statements in this presentation are subject to various risks, uncertainties and assumptions about Nexon's business and results of operations. The expectations expressed in these forward-looking statements may not be achieved, and actual results could differ materially from and be worse than expectations. Potential risks and uncertainties that could cause actual results to differ materially from expectations include, without limitation: © 2022 NEXON Co., Ld. All Rights Reserved. 47#48Disclaimer Continued growth and popularity of Nexon's key titles; Nexon's ability to maintain favorable relationships with key licensing partners; Nexon's continued ability to offer games in China, through local partners or otherwise; Nexon's ability to compete effectively in the online games industry; Nexon's ability to address hacking, viruses, security breaches and other technical challenges; Fluctuations in currency exchange rates; Nexon's ability to maintain and further develop its brand name; Effective acquisition of new companies, businesses, technologies and games from third parties and the possibility of recognizing impairment losses; Continued growth of the online games market, including the underlying infrastructure, and free-to-play/item-based revenue generation model; Nexon's ability to adapt to new technologies; Nexon's ability to enter into licensing arrangements for third-party titles on terms favorable to it; Effective defense of Nexon's intellectual property; and Legislative, regulatory, accounting and taxation changes in the countries in which Nexon operates. Nexon does not intend, and disclaims any duty, to update or revise any forward-looking statements contained in this presentation to reflect new information, future events or otherwise. We caution you not to place undue reliance on the forward-looking statements contained in this presentation. © 2022 NEXON Co., Ld. All Rights Reserved. 48#49Q3 2022 Earnings Release Schedule Q3 2022 financial results are scheduled for release on Wednesday, November 9th, 2022. Nexon management is scheduled to host an earnings conference call for investors, analysts and the media on the same day. Details of the earnings conference call will be available on our IR website about a month prior to the release. 49 © 2022 NEXON Co., Ld. All Rights Reserved. 49#50NEXON