Financial Glossary and Balance Sheet Summary slide image

Financial Glossary and Balance Sheet Summary

• FY 2023 Financial Results Record-breaking Revenues and Operating Income Driven by Strong Growth in Major Franchises and Successful Launch of New Games Revenues • PC¹ revenues grew 25% Y/Y MapleStory achieved record full-year revenue in its 20th year FC ONLINE² marked record full-year revenues for the fifth year in a row China Dungeon&Fighter achieved solid growth Mobile revenues grew 9% Y/Y; significant growth in FC MOBILE³ and Blue Archive Strong contributions from Wars of Prasia, DAVE THE DIVER, MapleStory. The Legends of Maple in China and THE FINALS (Unit: \ billions) 423.4 Operating Income • . Increased Y/Y driven by revenue increases Operating income margin went up from 29% last year to 32%, driven by strong top-line growth HR costs increased Y/Y as we made further investments in new talent for both new and live games, as well as performance-based bonuses for the strong 2023 Net Income Decreased Y/Y primarily due to Decreased FX gain; recording a gain of ¥10.4 billion in 2023 vs. ¥41.7 billion in 2022 Impairment loss of ¥44.4 billion on the AGBO investment Increased tax expense; recording an expense of ¥54.8 billion in 2023 vs. ¥40.5 billion in 2022 353.7 134.7 103.7 100.3 70.6 2022 As reported: Constant currency: 2023 +20% +14% 1 PC revenues include other revenues besides PC online games and mobile games 2 Official title is EA SPORTS FC™ ONLINE (PC) and EA SPORTS FC™ ONLINE M (mobile). 3 Official title is EA SPORTS FC MOBILE. 4 Official title of MapleStory M in China. 2022 As reported: Constant currency7: 2023 +30% +25% 5 HR costs includes HR cost (COGS), HR cost (SG&A) and R&D (SG&A). 6 Net income refers to net income attributable to owners of the parent. 2022 As reported: Constant currency: 7 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. 2023 -30% -32% © 2024 NEXON Co., Ltd. All Rights Reserved. 12
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