Financial Glossary and Balance Sheet Summary slide image

Financial Glossary and Balance Sheet Summary

• Q4 2023 Result Highlights Record-Setting Q4 Revenues Driven by MapleStory, Wars of Prasia, MapleStory: The Legends of Maple', and THE FINALS Revenues Below outlook due to shortfalls in MapleStory in Korea, FC ONLINE2, Dungeon&Fighter in China Roughly flat Y/Y. Growth from MapleStory and contributions from Wars of Prasia, MapleStory. The Legends of Maple in China, and THE FINALS were offset by decreases from Dungeon&Fighter, FC ONLINE2 and HIT2 • Operating Income Below outlook due to revenue underperformance and one-time expenses such as Change of retention incentive plan, which resulted in an additional expense of ¥3.3 billion Impairment loss of ¥1.4 billion primarily on prepaid royalties Recognition of ¥1.3 billion penalty imposed by the Korean FTC Y/Y decrease due to increases in HR costs³ and marketing expenses Net Loss 4,5 Below outlook due to operating income underperformance, ¥9.3 billion FX loss on U.S. dollar-denominated cash deposits, and an impairment loss of ¥44.4 billion on the AGBO investment booked as an equity-method company (Unit: millions, except per share data) (Unit: \ billions) Q4 2022 Q4 2023 Outlook Q4 2023 YoY % Revenues Operating Income Net Loss 4,5 Revenues ¥81,095 ¥87,921 PC6 54,152 61,370 ¥96,158 66,582 ¥84,577 59,804 4% 10% 81.1 84.6 Mobile 26,943 26,551 29,576 24,773 Operating income 10,968 11,364 2 17,819 4,546 (8%) (59%) Net loss 4,5 (7,591) 8,857 13,878 (41,887) na Earnings (Loss) per share5 (8.79) 10.44 ~ 16.36 (49.47) Exchange rates 100 KRW/JPY CNY/JPY USD/JPY 1 Official title of MapleStory M in China. 2 Official title is EA SPORTS FC™ ONLINE (PC) and EA SPORTS FCM ONLINE M (mobile). 3 HR costs includes HR cost (COGS), HR cost (SG&A) and R&D (SG&A). 4 Net profit/loss refers to net profit/loss attributable to owners of the parent. 5 As a result of finalizing the provisional accounting treatment for a certain investment where the equity method is applied, "Equity loss of affiliates, equity method companies" decreased by 0.3 billion yen and "Net loss" decreased by 0.3 billion yen in Q4 2022. There is no financial impact on the annual performance of 2022. 6 PC revenues include other revenues besides PC online games and mobile games. 11.0 4.5 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 (7.6) 10.42 11.09 11.09 11.22 8% 19.95 141.59 20.69 20.69 20.59 3% (41.9) 149.60 149.60 147.89 4% © 2024 NEXON Co., Ltd. All Rights Reserved. 7
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