#1INVESTOR PRESENTATION Q1 2020 May 13, 2020 NEXON Co., Ltd. NEXON Owen Mahoney President and CEO Shiro Uemura CFO#2CEO Highlights © 2020 NEXON Co., Ltd. All Rights Reserved. 2#3• Q1 Results Above Outlook Record-breaking Quarter in Korea; In-line Results in China Performance reflects strong franchises coupled with new focused strategy Game development on track with no major disruption from COVID-19 China Dungeon&Fighter's performance within the expected range despite the temporary closure of some PC cafés Dungeon&Fighter 2D Mobile' completed 2nd closed beta with encouraging results Generated EBITDA of ¥49.9 billion in Q1; at the quarter end had ¥517.6 billion in total cash² 1 Mobile game based on original IPs. 2 Aggregated amount of "Cash and cash equivalents" and "Other deposits" on balance sheet. © 2020 NEXON Co., Ltd. All Rights Reserved. 3#4Korea: Strong Q1 Performance Across Our Portfolio. Up 78% Y/Y MapleStory SPORTS FA FIFA ONLINE 4. FIFA OFFICIAL UNGEON IGHER SUDDEN ATTACK PC: 132% Y/Y growth Mobile: 184% Y/Y growth Record-high quarter. Significant Y/Y growth 53%¹ Y/Y growth 52% Y/Y growth 1 Year-over-year growth on a constant currency basis © 2020 NEXON Co., Ltd. All Rights Reserved. 4#5China Dungeon&Fighter 地下城与勇士 • • Performed within outlook range but revenue down Y/Y ⚫ Lunar New Year update and March updates • • both well-received, earning great reviews and improving engagement Temporary closure of PC cafés in some regions affected momentum Expect more players to return and KPIs to improve as PC cafés re-open • Continue to be optimistic about the long-term growth of this game in China © 2020 NEXON Co., Ltd. All Rights Reserved. 5#6China Dungeon&Fighter 2D Mobile¹ E Pre-Registration 34 million² 嗰 Stores AOS/iOS Launch Date Summer 2020 手游 1 Mobile game based on original IPs. © 2020 NEXON Co., Ltd. All Rights Reserved. 6 2 Pre-registration as of May 12th, 2020#7ctrl 117 S O O 더운 여름 산타 저리구요 산타 겨울 요정 커피 붕어빵 네오 내가 이긴 다오 ctrl Пед 240 km/h CRAZYRACING KARTRIDER 00:05 ( F3) REC 2/2 LAP+/ 00:00:48 TIME 02:21:15 BEST 01:14:25 3:39 100:40:22 11 2/2바퀴 Chitivi Azblu KARTRIDER RUSH+ DRIFT 연속 순부 191.8#8SEA SC 2-0 스포르팅 KC 62:56 IRCM 크리스티아누 호날두 MAJOR LE 크리스티아누 호날두 RCM 15 S. 5-8 17 FIFA EA FIFA ONLINE 4* SPORTS DE 0-0 에릭 45:26 원액 () 밸런스 자동 SELF M 압박수비 슬라이딩 변경 질주 태클 EA FIFA SPORTS MOBILE FIFAⓇ OFFICIAL LICENSED PRODUCT#9CFO Highlights © 2020 NEXON Co., Ltd. All Rights Reserved. 9#10Q1 2020 Results © 2020 NEXON Co., Ltd. All Rights Reserved. 10#11Q1 2020 Result Highlights Strong Performance in Korea; China Revenues within Expected Range Revenues Exceeded our outlook. Stronger-than- expected performances of our major franchises in Korea including MapleStory, FIFA ONLINE 4', Dungeon&Fighter and V4 Operating Income In-line with our expectation. Revenue outperformance as well as lower-than- planned HR costs were partially offset by a ¥6.1 billion impairment loss primarily on Nexon GT's goodwill and Pixelberry's game IP Net Income² Exceeded our outlook largely driven by an ¥18.7 billion FX gain primarily on U.S. dollar-denominated cash deposits (Unit: \millions, except per share data) (Unit: \ billions) Q1 2019 Q1 2020 Outlook Q1 2020 YoY % Revenues Operating Income Net Income² Revenues PC³ ¥93,077 77,639 ¥74,038 ¥58,730 ~ ¥80,689 ¥82,762 (11%) 93.1 ~ ¥63,979 65,725 (15%) 82.8 Mobile 15,438 Operating income 52,601 ¥15,308 ¥35,982 2 ¥16,711 17,037 10% ~ ¥42,098 41,543 (21%) Net income² 53,400 ¥31,731 ~ ¥36,638 49,911 (7%) 52.6 53.4 49.9 41.5 Earnings per share 59.67 36.00 2 41.57 56.57 Exchange rates 100 KRW/JPY CNY/JPY USD/JPY 9.80 9.39 9.39 9.15 (7%) 16.33 15.80 15.80 15.62 (4%) 110.20 109.89 109.89 108.92 (1%) Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2019 Q1 2020 1 Official titles are EA SPORTS™ FIFA ONLINE 4 (PC) and EA SPORTS™ FIFA ONLINE 4 M (mobile). 2 Net income refers to net income attributable to owners of the parent, as stated in Nexon's consolidated financial results. 3 PC revenues include other revenues besides PC online games and mobile games. © 2020 NEXON Co., Ltd. All Rights Reserved. 11#12Q1 2020 Revenue Breakdown Q1 2020 YoY % Change Q1 2020 Revenue by Region¹ North America and Europe 5% Rest of World² (Unit: millions) Q1 2019 As- Reported Constant Currency As- Constant 4 Reported 4 Currency Revenue by Region¹ Japan 2% China ¥57,550 ¥33,499 ¥35,372 (42%) (39%) Korea 22,357 39,744 42,565 78% 90% Japan 3,833 1,567 1,614 (59%) (58%) North America and Europe 5,551 4,168 4,272 (25%) (23%) Rest of World² 3,786 3,784 3,958 (0%) 5% Korea 48% Nexon Total 93,077 82,762 87,781 (11%) (6%) Revenue by Platform PC³ 77,639 65,725 69,741 (15%) (10%) Mobile 15,438 17,037 18,040 10% 17% Nexon Total 93,077 82,762 87,781 (11%) (6%) FX Rate 100 KRW/JPY 9.80 9.15 9.80 (7%) CNY/JPY 16.33 15.62 16.33 (4%) USD/JPY 110.20 108.92 110.20 (1%) 5% China 40% Q1 2020 Revenue by Platform Mobile 21% PC3 79% 1 Based on the regions in which revenues originate; 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 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. 6 Nexon Group has made a change to a part of its regional segmentation of revenue from external customers from the three months ended March 31, 2020. The numbers for the three months ended March 31, 2019 have also been adjusted accordingly. ©2020 NEXON Co., Ltd. All Rights Reserved. 12#13Q1 2020 China / Korea - Highlights China Dungeon&Fighter performed within expected range. Temporary closure of PC cafés slowed revival • Introduced Lunar New Year update (1/14 - 4/9); the new key update - Level Cap Release and the Third Awakening¹ (3/19) · Q/Q MAUS and paying users decreased, negatively affected by closure of PC cafés in some regions . Q/Q Revenue and ARPPU increased due to typical seasonality Korea Exceeded our outlook. Achieved our highest quarterly revenue driven by strength across portfolio • • MapleStory: Revenue grew 132% 5 Y/Y. Achieved record quarter FIFA ONLINE 44: Revenue grew significantly Y/Y. Generated highest quarterly revenue Dungeon&Fighter: Built momentum following a major update in January. Improved user metrics; Y/Y revenue growth of 53%5 . Y/Y MAUS and paying users decreased due to churn of users in 2H 2019 and reduced bots following stricter player identification measurements • Y/Y Revenue and ARPPU decreased due to last year's strong sales from the Lunar New Year package offerings YoY% change: (Unit: \ millions) 57,550 As Reported: Constant Currency²: -42% -39% 33,499 • Sudden Attack: Revenue grew 52%5 Y/Y • V4: Strength driven by the major update in February. • MapleStory M: Revenue grew 184%5 Y/Y. Achieved highest quarterly revenue YoY% change: As Reported: Constant Currency²: +78% +90% 39,744 22,357 23,657 24,393 21,282 19,387 29,240 PC³ 17,783 15,632 33,047 PC3 15,765 16,798 13,844 19,269 16,014 1,769 15,172 460 452 Mobile 5,559 5,543 8,628 10,504 Mobile 4,388 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 1 Third awakening allows players to gain new skills for their characters 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 titles is EA SPORTS™ FIFA ONLINE 4 (PC). 5 Year-over-year growth on a constant currency basis © 2020 NEXON Co., Ltd. All Rights Reserved. 13#14Q1 2020 Japan / North America and Europe/ Rest of World' - Highlights Japan Revenues slightly below our outlook Benefited from MapleStory M which launched in Q2 2019, but revenue was more than offset by the decreases in FAITH, Dynasty Warriors: Unleashed and OVERHIT Disposition of gloops in February 2020 added to the Y/Y revenue decline North America and Europe Better-than-expected revenues driven by Choices and MapleStory MapleStory revenue increased Y/Y This was more than offset by revenue declines of Choices, Darkness Rises and AxE • • Rest of World¹ Outperformance driven by stronger-than-expected revenue from MapleStory MapleStory revenue increased Y/Y Benefited from World of Dragon Nest (launched in Southeast Asia on 1/8), as well as V4 (launched in Taiwan, Hong Kong and Macau on 3/25) These were more than offset by declines in revenue from AxE, MapleStory M and Moonlight Blade (Unit: \ millions) YoY% change: As Reported: -59% Constant Currency²: -58% YoY% change: As Reported: -25% Constant Currency²: -23% YoY% change: As Reported: -0% Constant Currency²: +5% 5,551 5,148 4,608 887 4,561 3,833 1,073 4,192 4,168 3,786 3,784 866 966 3,440 3,151 3,205 967 932 PC3 1,015 2,764 1,433 965 3,742 2,262 696 1,106 1,775 PC³ 1,340 2,818 2,186 1,566 1,567 731 PC3 836 Mobile 4,664 1,047 4,075 3,595 3,225 3,236 Mobile 2,353 2,334 1,865 1,717 2,009 Mobile Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 "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. 5 Nexon Group has made a change to a part of its regional segmentation of revenue from external customers from the three months ended March 31, 2020. The numbers for the last year have also been adjusted accordingly. © 2020 NEXON Co., Ltd. All Rights Reserved. 14#15Q2 2020 Outlook © 2020 NEXON Co., Ltd. All Rights Reserved. 15#16Q2 2020 Financial Outlook Expect Year-over-year Growth Primarily Driven by Korea Businesses Revenues Operating Income Net Income³ • Constant currency¹ up 16% to 26% • Expect strong Y/Y growth in Korea driven by our major franchises • Expect China Dungeon&Fighter revenue to grow Y/Y including one-time royalty gain • Expect a Y/Y increase primarily driven by the top line growth Expect lower Other Expense - in Q2 2019, we recorded a ¥3.6 billion impairment loss² • • to the operating income growth Expect a Y/Y increase primarily due Expect lower Finance Income - in Q2 2019, we recorded a ¥5.9 billion FX gain (Unit: billions) Q2 Accumulated (High-end) Revenues 146.9 146.8 24% (Unit: millions, except per share data) Q2 2019 Q2 2020 Outlook YoY % Revenues PC4 ¥53,865 38,125 ¥59,044 ~ ¥64,008 10% ~ 19% 43,248 Mobile 15,740 15,796 ~ ~ 46,585 13% ~ 17,423 0% Operating income 12,987 21,911 ~ 26,212 69% ~ ~ 22% 11% 102% Net income³ 19,145 20,291 ~ 23,708 6% Earnings per share 21.37 22.98 ~ 26.85 FX Rate Assumptions 100 KRW/JPY 9.43 8.83 8.83 (6%) CNY/JPY 16.10 15.24 15.24 (5%) USD/JPY 109.90 107.53 107.53 (2%) Forex sensitivity: Every one Japanese yen move against the U.S. dollar would have the following impact on our financials for Q2 2020 Revenues Operation Income 0.57 billion yen 0.24 billion yen 53.9 64.0 Operating Income Net Income 72.5 73.6 65.6 67.8 19.1 13.0 23.7 Q2 26.2 93.1 82.8 52.6 53.4 49.9 41.5 10 Q1 2019 2020 2019 2020 2019 2020 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. 2 In Q2 2019, we recorded a ¥3.6 billion impairment loss primarily on right-of-use assets related to the adoption of IFRS 16 Leases and prepaid royalties. 3 Net income refers to net income attributable to owners of the parent, as stated in Nexon's consolidated financial results. 4 PC revenues include other revenues besides PC online games and mobile games. 5 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. 16 © 2020 NEXON Co., Ltd. All Rights Reserved.#17Q2 2020 China / Korea Outlook China Expect Dungeon&Fighter local-currency revenue to increase Y/Y including one-time royalty income gain. Dungeon&Fighter 2D Mobile¹ is not included in our Q2 outlook • • Introduced Labor Day update (4/23); scheduled to introduce the 12th Anniversary update (June) Expect local-currency revenue to be roughly flat Y/Y even when compared with high base set in Q2 2019 In addition, we expect to record a ¥2.3 billion one-time royalty income gain as an estimated adjustment for the past six-year period • Korea Expect revenues to increase Y/Y driven by continued strength of our major franchises, as well as recently-launched KartRider Rush+¹ MapleStory: Expect strong momentum to continue into Q2, with its revenue growing triple-digits Y/Y Also expect Y/Y revenue growth in other major franchises, including FIFA ONLINE 43, Sudden Attack and Dungeon&Fighter Expect to benefit from V4 and KartRider Rush+1 (launched on May 12th) MapleStory M: Expect triple-digit Y/Y revenue growth (Unit: \ millions) Q2 2019 Q2 2020 Outlook Actual Low-end High-end 21,282 21,325 ~ ~ YoY % Change As-Reported Constant Currency² 23,793 0% 12% 6% ~ 18% 78,832 21,282 57,292 23,793 Q2 57,550 33,499 Q1 Q2 2019 Q2 2020 Outlook YoY % Change Actual Low-end High-end As-Reported 19,387 27,942 ~ 29,472 44% ~ 52% Constant Currency² 54% ~ 62% 69,216 29,472 Q2 41,744 19,387 39,744 Q1 10 22,357 2019 1 Mobile game based on original IPs. 2020 (High-end) 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. 2019 3 Official titles is EA SPORTS™ FIFA ONLINE 4 (PC). 2020 (High-end) © 2020 NEXON Co., Ltd. All Rights Reserved. 17#18Q2 2020 Japan / North America and Europe/ Rest of World¹ Outlook Japan Expect revenues to decrease Y/Y Expect to benefit from TRAHA which launched on April 23rd However, we anticipate this will be more than offset by disposition of gloops and Y/Y revenue decrease in MapleStory M due to high comps of Q2 2019 • • North America and Europe Expect revenues to decrease Y/Y Expect to benefit from KartRider Rush+3 which launched on May 12th Expect this to be more than offset by revenue declines in OVERHIT, AxE, and Darkness Rises Rest of World¹ Expect revenues to be roughly flat Y/Y Expect to benefit from KartRider Rush+3 which launched on May 12th, as well as V4 and World of Dragon Nest - both launched in Q1 2020 Expect growth of these titles to be offset by declines in revenue from OVERHIT, Moonlight Blade, AxE and MapleStory M (Unit: \ millions) Q2 2019 Q2 2020 Outlook YoY % Change Q2 2019 Q2 2020 Outlook As- Actual Low-end High-end Reported Constant Currency² Actual Low-end High-end 4,608 2,253~ 2,485 (51%) (46%) (49%) ~ (44%) 5,148 4,344 ~ 4,744 (16%) (8%) (13%) - (5%) YoY % Change Q2 2019 Q2 2020 Outlook YoY % Change As- Reported Constant As- Actual Low-end Currency² High-end Reported ~ 3,440 3,181 ~ 3,514 (8%) ~ 2% Constant Currency (3%) ~ 8% 8,441 4,608 4,052 2,485 Q2 3,833 1,567 Q1 10,699 8,912 7,226 7,298 5,148 4,744 Q2 3,440 3,514 10 Q2 5,551 4,168 Q1 3,786 3,784 Q1 2019 2020 (High-end) 2019 2020 (High-end) 2019 2020 (High-end) 1 "Rest of World" includes other Asian countries 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 Mobile game based on original IPs. 4 Nexon Group has made a change to a part of its regional segmentation of revenue from external customers from the three months ended March 31, 2020. The numbers for the last year have also been adjusted accordingly. © 2020 NEXON Co., Ltd. All Rights Reserved. 18#19Historical China Revenues (Unit: \ billions) ■ Q1 ■ Q2 ■Q3 ■Q4 133.0 +15% -16% 17.9 115.4 112.2 22.8 15.6 +56% 31.2 17.8 75.4 -2% 74.2 27.8 +13% 67.0 23.2 21.3 16.5 15.4 16.4 20.8 20.2 17.4 15.7 15.6 16.0 13.5 60.7 57.6 44.0 25.8 21.3 22.7 23.8 33.5 FY14 FY15 FY16 FY17 FY18 FY19 FY20 (High-end) © 2020 NEXON Co., Ltd. All Rights Reserved. 19#20Q2 2020 Operating Income Outlook (Unit: \ billions) Y/Y Operating Income Comparison 13.0 10.1 3.6 0.5 1.0 +Increased revenues + Decreased impairment loss¹ of ¥3.6 billion recorded in Q2 2019 +Others include: 26.2 • • Decreased marketing costs Increased amortization costs on intangible assets associated with the launch of V4 Increased variable costs associated with revenue growth in Korea Operating Income 2019 Q2 Revenue increase Imparirment Loss Others Variable Costs Operating Income 2020 Q2 (High-end) In Q2 2019, we recorded a ¥3.6 billion impairment loss primarily on right-of-use assets related to the adoption of IFRS 16 Leases and prepaid royalties. © 2020 NEXON Co., Ltd. All Rights Reserved. 20 20#21FY 2020 Shareholder Return Outlook • At the end of FY 2019 we reinitiated a semi-annual 2.5 yen per share dividend • Plan to pay the same dividend per share for the interim and year-end of FY 2020. • Nexon remains disciplined in delivering shareholder value by growing our business globally and maintaining consistent dividends © 2020 NEXON Co., Ltd. All Rights Reserved. 21#222020 China Dungeon&Fighter Update Schedule Period Tier 1 Content Update 2019 2020 -مم Lunar New Year Update January 21st January 14th Q1 Level Cap Release January 21st March 19th Labor Day Update April 23rd April 23rd Q2 Anniversary Update June 18th June Summer Update July 4th TBD Q3 National Day Update September 24th TBD Q4 Winter Update N/A TBD ✰ Indicates financially important updates * 2020 update schedule is subject to change depending on various operational factors © 2020 NEXON Co., Ltd. All Rights Reserved. 22#23Pipeline¹ Dungeon&Fighter 2D Mobile² KartRider: Drift² Embark Studios CORTO 7 KartRider Rush+² The kingdom of the winds: Yeon² Final Fantasy XI R² Dynasty Warriors 9 Mobile O Project BBQ FIFA MOBILE³ TALESWEAVERM² TRAHA O Arcane Showdown ☐ MABINOGI MOBILE² KOREA CHINA JAPAN NORTH AMERICA & REST OF THE WORLD 1 Chart is illustrative excerpt of pipeline. 3 Official title is EA SPORTS™ FIFA MOBILE. 2 Games based on original IPs. 4 PC 3D action RPG based on Dungeon&Fighter universe. PC ONLINE MOBILE CONSOLE 5 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 © 2020 NEXON Co., Ltd. All Rights Reserved. 23#24Append x © 2020 NEXON Co., Ltd. All Rights Reserved. 24 24#25Summary of Results and Key Operational Metrics (Unit: \ millions, except per share data) (By Region) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 YoY% China ¥57,550 ¥21,282 ¥17,783 ¥15,632 ¥33,499 (42%) Korea 22,357 19,387 23,657 24,393 39,744 78% Japan 3,833 4,608 3,151 2,262 1,567 (59%) North America and Europe 5,551 5,148 4,561 4,192 4,168 (25%) Rest of World 3,786 3,440 3,205 2,764 3,784 (0%) (By Platform) PC 2 77,639 38,125 38,554 33,647 65,725 (15%) Mobile 15,438 15,740 13,803 15,596 17,037 10% Revenue 93,077 53,865 52,357 49,243 82,762 (11%) Operating income 52,601 12,987 24,419 4,518 41,543 (21%) Net income 3 53,400 19,145 39,844 3,275 49,911 (7%) Earnings per share 59.67 21.37 44.42 3.68 56.57 FX rate 100 KRW/JPY CNY/JPY USD/JPY 9.80 9.43 9.00 9.26 9.15 (7%) 16.33 16.10 15.32 15.46 15.62 (4%) 110.20 109.90 107.35 108.76 108.92 (1%) KPI (Excluding Mobile) MAU (millions) 35.0 34.6 35.4 27.4 27.1 (23%) Pay Rate 16.5% 16.4% 11.5% 14.8% 15.4% ARPPU (as-reported) 9,265 3,885 4,837 4,223 9,031 (3%) 1 "Rest of World" includes other Asian countries as well as central and south American countries. 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, as stated in Nexon's consolidated financial results. 4 Nexon Group has made a change to a part of its regional segmentation of revenue from external customers from the three months ended March 31, 2020. The numbers for the last year have also been adjusted accordingly. © 2020 NEXON Co., Ltd. All Rights Reserved. 25#26COGS and SG&A (Unit: \ millions) Total Cost of Revenue ¹ 2 Royalty 3 HR cost (COGS) ³ Other (COGS) 4 FY2019 FY2020 Q1 Q2 Q3 Q4 Q1 1 ¥15,899 ¥15,055 ¥14,180 ¥14,451 ¥15,343 4,510 4,119 4,344 3,694 5,738 7,163 6,685 6,010 7,367 6,443 4,226 4,251 3,826 3,390 3,162 Total SG&A 1 22,055 22,178 19,189 21,695 20,614 HR cost 4,770 4,756 3,964 4,475 3,907 5 PG fee 6,108 5,829 4,952 5,661 6,696 R&D 3,266 3,499 3,950 4,180 3,907 Marketing/advertising expenses 5,194 5,500 3,767 4,260 2,836 Depreciation and amortization 866 792 820 1,490 1,299 Other 1,851 1,802 1,736 1,629 1,969 6 Other Income Other Expense 7 Includes: impairment loss 1 Breakdown of COGS and SG&As 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. 429 181 7,708 741 1,197 2,950 3,826 2,277 9,320 6,459 2,890 3,648 2,228 9,240 6,063 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. © 2020 NEXON Co., Ltd. All Rights Reserved. 26#27P&L Below Operating Income (Unit: \ millions) FY2019 FY2020 Q1 Q2 Q3 Q4 Q1 Operating Income Finance Income ¥52,601 ¥12,987 ¥24,419 ¥4,518 ¥41,543 1 9,810 9,663 18,910 3,051 21,918 2 Finance Costs 265 466 723 12,212 1,585 Equity profit/(loss) of affiliates, (334) (101) 14 96 113 equity method companies Income (Loss) before Income Tax 61,812 22,083 42,620 (4,547) 61,989 Tax expense 9,005 3,588 3,596 (7,457) 12,235 Non-controlling interests (593) (650) (820) (365) (157) Net income 3 53,400 19,145 39,844 3,275 49,911 1 Finance Income includes interest income primarily on cash deposits. 2019 Q1, Q2, Q3 and 2020 Q1 Finance Income includes FX conversion gains related to foreign currency deposits and accounts receivable. 2 2019 Q4 Finance Costs are primarily caused by FX conversion loss related to foreign currency deposits and accounts receivable. 3 Net income refers to net income attributable to owners of the parent, as stated in Nexon's consolidated financial results. © 2020 NEXON Co., Ltd. All Rights Reserved. 27#28Cash Flow Statement (Unit: \ millions) 3 months ended March 31, 2019 ¥15,241 3 months ended March 31, 2020 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash and cash equivalents ¥29,548 (994) 1,034 731 (4,177) 14,978 26,405 Cash and cash equivalents at beginning of fiscal year 205,292 253,636 Effect of exchange rate change on cash and cash equivalents (99) (4,897) Cash and cash equivalents at end of fiscal year 220,171 275,144 © 2020 NEXON Co., Ltd. All Rights Reserved. 28#29Balance Sheet (Unit: \ millions) December 31, 2019 March 31, 2020 December 31, March 31, 2019 2020 Asset Liability Current Assets Current liabilities Cash and cash equivalents ¥253,636 ¥275,144 Current tax liabilities 7,403 16,247 Other deposits 257,331 242,479 Current borrowings 2,223 1,962 Other current assets 42,529 70,004 Others 31,542 34,406 Total current assets 553,496 587,627 Total current liabilities 41,168 52,615 Noncurrent assets Noncurrent liabilities Tangible assets 23,481 21,977 Non-current borrowings Goodwill 42,480 36,694 Others 46,789 42,595 Intangible assets 21,519 16,597 Total noncurrent liabilities 46,789 42,595 Others 78,112 75,233 Total liabilities 87,957 95,210 Total noncurrent assets 165,592 150,501 Total assets 719,088 738,128 Shareholders' equity Capital stock Capital surplus 17,967 19,003 35,688 13,762 Treasury shares (27,219) Other equity interest 38,511 4,055 Retained earnings 555,038 595,718 Non-controlling interests 11,146 10,380 Total equity 631,131 Total liabilities and total equity 719,088 642,918 738,128 © 2020 NEXON Co., Ltd. All Rights Reserved. 29#30P&L by Reporting Segment' (Unit: \ millions) Notice of correction to P&L by Reporting Segment Corrections has been made to Q1 2019 Investor Presentation, disclosed on May 10, 2019. Corrected "Revenue from external customers" of each reporting segment in Q1 2019 are underlined. Japan Q1 FY2019 Q2 Q3 Q4 FY2020 Q1 Revenue from external customers Segment profit/(loss) ¥2,469 ¥1,884 ¥1,952 ¥1,344 ¥895 (958) (1,165) (455) (912) (655) Korea Revenue from external customers 84,572 47,079 45,521 43,261 76,336 Segment profit/(loss) 56,865 19,038 20,849 15,513 47,724 China Revenue from external customers 870 669 695 587 903 Segment profit/(loss) 596 324 381 256 653 North America Revenue from external customers 4,716 3,862 3,730 3,648 3,714 Segment profit/(loss) (1,385) (1,613) (1,233) (1,296) (461) Others Revenue from external customers 450 371 459 403 914 Segment profit/(loss) 2 36 (560) (435) (461) Adjustments Revenue from external customers Segment profit/(loss) 2 12 6 (29) 5 Total Revenue from external customers 93,077 53,865 52,357 Segment profit/(loss) 55,122 16,632 18,988 49,243 13,097 82,762 46,805 1 Representation based on location of Nexon's entities; not based on regions in which revenues originate. © 2020 NEXON Co., Ltd. All Rights Reserved. 30#31Number of Employees by Reporting Segment Full-time employees March 31, 2019 June 30, 2019 September 30, 2019 December 31, March 31, 2019 2020 Japan 535 516 503 422 294 Korea 5,168 5,232 5,225 5,149 5,210 China 223 204 207 207 209 North America 487 485 422 418 408 Others 86 131 212 232 240 Total 6,499 6,568 6,569 6,428 6,361 © 2020 NEXON Co., Ltd. All Rights Reserved. 31#32NJ Corporate Entity Financial Statement' (1) (Unit: \ millions) Condensed Income Statement FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Revenue ¥11,236 ¥7,987 ¥5,815 ¥5,208 ¥5,927 ¥7,024 ¥6,016 Cost of revenue 4,829 3,679 3,117 3,134 3,438 3,510 3,249 Gross profit SG&A 6,407 4,308 2,698 2,074 2,489 3,514 2,767 7,275 7,585 6,470 6,736 6,941 9,447 7,910 Operating profit / (loss) (868) (3,277) (3,772) (4,662) (4,452) (5,933) (5,143) Non-operating income 14,186 28,335 19,163 636 5,049 15,646 32,565 Includes: dividend income 12,926 24,613 18,869 22 4,612 15,025 30,313 Non-operating expenses 603 526 1,246 1,826 1,969 9,352 4,063 Ordinary income/ (loss) 12,715 24,532 14,145 (5,852) (1,372) 361 23,359 Extraordinary income 244 6,443 852 58 109 635 Extraordinary losses 4,451 18,717 6,897 Income/(loss) before income taxes 8,264 6,059 13,691 39,573 (44,573) 9,643 138 77 (10,957) 332 23,917 Tax expense 725 4,656 5,519 (201) 234 755 1,520 Net income/(loss) 7,539 1,403 8,172 (44,372) (11,191) (423) 22,397 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). © 2020 NEXON Co., Ltd. All Rights Reserved. 32 32#33NJ Corporate Entity Financial Statement' (2) (Unit: \ millions) Condensed Balance Sheet December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 December 31, 2018 December 31, 2019 Current assets ¥45,632 Includes: cash and cash equivalents 32,367 Non-current assets 135,011 ¥46,760 30,711 101,337 ¥70,444 ¥52,632 ¥42,946 68,997 49,531 41,868 38,190 6,438 5,494 ¥55,209 53,096 4,836 Property, plant and equipment Intangeble assets 183 56 222 60 200 74 7 ¥45,374 43,100 17,630 3 1 66 Investments and other assets 134,772 101,055 37,924 Total assets 180,643 148,097 108,634 6,364 59,070 5,487 48,440 4,833 60,045 17,629 63,004 Current liabilities Non-current liabilities Total liabilities 13,103 16,345 39,644 23,154 3,506 498 2,341 1,796 2,303 2,037 52,747 39,499 4,004 448 2,789 457 2,253 415 363 2,718 2,400 Shareholder's equity 110,163 98,122 99,779 50,669 41,230 50,838 53,133 Capital stock 51,868 52,332 56,227 3,307 9,183 14,199 17,757 Capital surplus 51,728 42,192 36,087 88,621 43,021 36,846 39,981 Includes: other capital surplus 50,000 40,000 30,000 86,064 34,588 23,397 22,974 Retained earnings 6,567 3,598 7,465 (41,259) (10,974) (206) 22,614 Includes: other retained earnings 6,130 2,724 6,160 (41,476) (11,191) (423) 22,397 Treasury shares (0) (0) (27,219) Valuation and translation adjustments 15,844 6,536 246 77 (10) (21) (28) Subscription rights to shares Total net assets 1,889 127,896 3,940 108,598 4,605 104,630 5,535 56,281 4,967 46,187 6,510 57,327 7,499 60,604 December 31, Statement of changes in equity (excerpt) 2013 December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 December 31, 2018 December 31, 2019 Payment of dividends Acquisition of treasury shares (4,807) (0) (4,372) (10,000) (4,305) (10,000) Cancellation of treasury shares 10,000 10,000 (4,352) (5,000) 5,000 (10,000) 10,000 (1) (27,218) 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). © 2020 NEXON Co., Ltd. All Rights Reserved. 33#34Historical Financials (Unit: \ billions) Revenue by Region¹ 253.7 248.5 234.9 11.4 13.2 9.8 21.5 19.5 12.1 14.1 13.9 190.3 17.1 183.1 4.4 172.9 12.5 6.4 155.3 36 11.4 73.8 21.0 16.9 80.5 89.8 8.0 29.9 Revenue by Platform 253.7 248.5 234.9 54.9 60.6 51.4 190.3 183.1 172.9 155.3 42.0 43.3 34.2 28.4 36.4 108.4 77.0 74.2 4.4 7.8 65.4 19.2 43.0 108.4 8.2 198.9 183.5 188.0 148.3 133.0 138.7 139.8 28.7 127.0 115.4 112.2 100.2 75.4 74.2 63.9 67.0 48.4 FY12 FY13 FY14 FY15 China Korea ■Japan FY16 FY17 FY18 FY19 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 ■Rest of World² PC3 Mobile North America and Europe 1 Based on the regions in which revenues originate; 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 Nexon Group has made a change to a part of its regional segmentation of revenue from external customers from the three months ended March 31, 2020. The numbers for the past years have also been adjusted accordingly. © 2020 NEXON Co., Ltd. All Rights Reserved. 34#35Key Titles by Region¹ China Korea Japan N. America, Europe, and Row Dungeon&Fighter MapleStory Dungeon&Fighter KartRider MapleStory M MapleStory DomiNations MapleStorys EA SPORTSTM FIFA ONLINE 4 KartRider Rush + MapleStory M MapleStory MapleStory M Darkness Rises KartRider Rush+ Sudden Attack Mabinogi V4 (Unit: \billions) 112.2 89.8 PC ONLINE Mabinogi Choices: Stories You Play KartRider Rush+ MOBILE FY2019 Revenue by Region¹ North America and Europe 8% Rest of World² 5% Japan 6% 19.5 13.9 13.2 Korea 36% China Korea Japan North America and Europe Row² China 45% FY2019 Revenue by Platform Mobile 24% PC3 76% 1 Based on the regions in which revenues originate; 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 Nexon Group has made a change to a part of its regional segmentation of revenue from external customers from the three months ended March 31, 2020. The numbers for the last year have also been adjusted accordingly. © 2020 NEXON Co., Ltd. All Rights Reserved. 35#36UNGEON &IGHER Dungeon&Fighter LTD Overview Launched 2005 Over 700 million registered users worldwide Life-to-date gross revenue well over 15 billion U.S. dollars EI Gross revenue several billion dollars more than life-to-date box office of Star Wars and Harry Potter series; approximately double the revenue of the entire Avengers series¹ 1 Life-to-date global box office revenues as of May 12th, 2020 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 © 2020 NEXON Co., Ltd. All Rights Reserved. 36#37Revenue NE 2003 MapleStory Franchise LTD Overview MapleStory Launched 2003 E Over 180 million registered users worldwide. Player registrations equal to 45% of Korean population Combined PC and mobile revenue exceeds global box office of the movie franchise Frozen one of Disney's biggest¹ Korea MapleStory Korea MapleStory M Revenue Year 2019 2016 1 Life-to-date global box office revenues as of May 12th, 2020 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 2019 © 2020 NEXON Co., Ltd. All Rights Reserved. 37#38Х CRAZY RACING KARTRIDER TM KartRider 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 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 © 2020 NEXON Co., Ltd. All Rights Reserved. 38#39The Four Quadrants Massive TAM¹ Growth In Deeply Immersive Online Games, Enabled by Mobile Deep Offline ALIEN ISOLATION METALGEAR Gardenscapes PLANTS ZOMBIES VS. CIVILIZATION VI grand theft auto MapleStory UNGEON IGHER CALL DUTY Candin Crush PUZZLE DRAGONS BOWMASTERS MONSTER STRIKE KARTRIDER DRIFT CLASHIN OF CLANS 1 TAM means "Total Addressable Market". 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. Casual 3 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. FORTNITE CHAPTER CLASH ROYALEL Online © 2020 NEXON Co., Ltd. All Rights Reserved. 39#40Focus 1 Fully-online multiplayer games 2 Multiple platforms: PC, console and mobile 3 Leveraging Nexon's substantial IP portfolio 4 Selective Investment in highly unique new IPs MapleStory 바람의나라 KARTRIDER DRIFT Tantasy LIFE malinogi ✔embark 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 © 2020 NEXON Co., Ltd. All Rights Reserved. 40#41Solid Foundation. Significant Opportunities for Growth Nexon is Well-positioned to Lead the Next Wave of Online Games REVENUE MapleStory embark KARTRIDER DRIFT 7 CRAZYRACING KARTRIDER UNGEON IGHER FIFA ONLINE 4 FIFA SUDDEN ATTACK 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. Opportunity Solid Foundation YEAR © 2020 NEXON Co., Ltd. All Rights Reserved. 41#42Glossary of Terms Term / Abbreviation Meaning AOS FPS (first person shooter) RTS (real-time strategy) 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 Immersive Games AOS is a sub-genre of the real-time strategy genre, in which two teams of players compete with each other in discrete games, with each player controlling a single character through an RTS-style interface. A game in which the player plays from the point of view of the game character in three-dimensional graphics A game that is usually played from a third-person on perspective, in which the player controls vast numbers of in- game characters in a tactical scenario 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 Games that are designed to be played continuously for hours and enable thousands of concurrent users to interact with each other in real time. Our games are architected to evolve over years., in contrast to packaged goods games, which often have finite story lines and comparatively less open-ended player engagement. © 2020 NEXON Co., Ltd. All Rights Reserved. 42#43Disclaimer 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: © 2020 NEXON Co., Ltd. All Rights Reserved. 43#44Disclaimer 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. © 2020 NEXON Co., Ltd. All Rights Reserved. 44#45Q2 2020 Earnings Release Schedule Q2 2020 financial results are scheduled for release on Thursday, August 6th, 2020. 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. © 2020 NEXON Co., Ltd. All Rights Reserved. 45#46NEXON