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Investor Presentaiton

Q2 2021 Financial Outlook Expect Y/Y Decrease Given Tough Comparison with Q2 2020 Revenues • • Constant currency¹ down 23% to 16% • Expect Y/Y decrease due to a challenging comparison given the strong performance in Q2 2020 when our topline grew 27% Y/Y on a constant currency basis Operating Income Expect a Y/Y decrease primarily due to the revenue decrease Expect increased HR costs and outsourcing costs Net Income² Expect a Y/Y decrease primarily due to the operating income decline (Unit: millions, except per share data) (Unit: \billions). Q2 Accumulated (High-end) Revenues Operating Income Net Income² Q2 2020 Q2 2021 Outlook Revenues ¥64,466 ¥54,451 ¥59,596 (16%) PC³ 44,923 37,142 40,624 (17%) ~ YoY % (8%) (10%) Mobile 19,543 17,309 18,972 (11%) ~ (3%) Operating income 147.2 26,711 12,039 147.9 P 16,384 (55%) - (39%) Net income² 19,763 8,965 12,254 (55%) P (38%) Earnings per share 22.37 10.09 13.79 64.5 59.6 FX Rate Assumptions 100 KRW/JPY 8.83 9.77 9.77 11% CNY/JPY 15.18 16.72 16.72 10% USD/JPY 107.62 108.70 108.70 1% Forex sensitivity: Every one Japanese yen move against the U.S. dollar would have the following impact on our financials for Q2 2021 Revenues Operating Income 0.51 billion yen 0.15 billion yen 68.3 69.7 59.7 58.3 19.8 26.7 16.4 12.3 82.8 88.3 82 Q2 49.9 41.5 43.3 46.0 Q1 2020 2021 2020 2021 2020 2021 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 Net income refers to net income / loss attributable to owners of the parent. 3 PC revenues include other revenues besides PC online games and mobile games 4 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. © 2021 NEXON Co., Ltd. All Rights Reserved. 12
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