Investor Presentaiton
Q2 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
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