NEXON : Q1 2024 Investor Presentation

INVESTOR PRESENTATION Q12024

Junghun Lee President and CEO | Shiro Uemura CFO

CEO'sPriorities

Focusing on Short-Term Improvements to Existing Business While Developing Long-term Strategy for Dynamic Growth

1

Re-energize China Dungeon&Fighter	- Quickly diagnosed and addressed challenges identified since late Q4
-	Delivered early progress in Korea MapleStory
and Korea MapleStory	-	Created a roadmap for further improvements for Dungeon&Fighter in China

2

3

4

5

Launch Dungeon&Fighter Mobile

in China on May 21

Establish Franchise Management Strategy

Develop New Games and IP

Improve Profit Margins

• Successful recent beta test and the strong marketing campaign by Tencent give us growing confidence
• Energize our large base of existing fans and attract new players
• Starting with MapleStory IP, we reorganized teams and operations as one group for greater alignment and efficiencies
• Expect to see the benefits of the reorganization in the months ahead
• Key learnings from the MapleStory initiative can be spread to other franchises
• Place high priority on the development of new games and IP with the potential to become enduring pillars
• Have several promising new games in development including The First Descendant, The First Berserker: Khazan, MABINOGI MOBILE and ARC Raiders
• Establish long-term priority on improving profit margins through top-line growth, careful cost management, and operating efficiency
• Sharpen our focus on franchise management and improve the speed of decision making

© 2024 NEXON Co., Ltd. All Rights Reserved.

2

MapleStoryFranchise

• Re-organizedteams of MapleStory across regions, platforms, and formats as one group for greater alignment, resource sharing and creative synergy
• The MapleStory franchise is already showing solid results in Q1
• • MapleStory PC outside Korea generated 33% Y/Y growth; delivered record-breaking quarterly revenue in all regions
  • MapleStory M worldwide delivered 65% Y/Y growth
  • MapleStory Worlds, a content creation and play platform, rapidly grew in popularity and revenue

© 2024 NEXON Co., Ltd. All Rights Reserved.

3

Q1 2024 Results

Q12024Highlights

Stronger-Than-Expected Results Driven by FC ONLINE1, FC MOBILE2, and Blue Archive

Revenues

• Exceeded outlook driven by FC ONLINE1, FC MOBILE2, and Blue Archive, partially offset by lower-than- expected performance of THE FINALS
• Y/Y decrease due primarily to tough comparisons with strong Q1 2023 performances achieved by Dungeon&Fighter and FC ONLINE1

Operating Income

• Exceeded outlook driven by revenue outperformance combined with careful management of HR costs3 and marketing expenses, as well as lower-than-expected cloud service costs
• Y/Y decrease primarily due to lower consumer spending, rising costs, and an anticipated one-time loss

Net Income4

• Exceeded outlook driven by operating income outperformance and ¥10.7 billion FX gain on U.S. dollar-denominated cash deposits
• Y/Y decrease primarily due to a decrease in operating income

(Unit: ¥ millions, except per share data)	Q1 2023		Q1 2024 Outlook		Q1 2024		YoY %
Revenues	¥124,087	¥97,122	~	¥107,112	¥108,418	(13%)
PC5	93,070	71,956	~	79,146	79,297	(15%)
Mobile	31,017	25,166	~	27,966	29,121	(6%)
Operating income	56,275	15,158	~	23,360	29,146	(48%)
Net income4	52,791	16,354	~	22,919	35,918	(32%)

(Unit: ¥ billions)

Revenues

124.1

108.4

Operating Income	Net Income4

Earnings per share	61.63	19.47	~	27.29	42.77
Exchange rates
100 KRW/JPY	10.41	11.06		11.06	11.19	7%
CNY/JPY	19.34	20.49		20.49	20.79	7%
USD/JPY	132.34	147.06		147.06	148.61	12%

Q1 2023

Q1 2024

56.3
	29.1
Q1 2023	Q1 2024

52.8
	35.9
Q1 2023	Q1 2024

1	Official title is EA SPORTS FC	ONLINE (PC) and EA SPORTS FC ONLINE M (mobile).
2	Official title is EA SPORTS FC	MOBILE.
3	HR costs includes HR cost (COGS), HR cost (SG&A) and R&D (SG&A).

1. Net income refers to net income attributable to owners of the parent.
2. PC revenues include other revenues besides PC online games and mobile games.

© 2024 NEXON Co., Ltd. All Rights Reserved.

5

Q12024RevenueBreakdown

Q1 2024 Financial Results

(Unit: ¥ mllions)				Q1 2024		YoY % Change
				Q1 2023	As-	Constant	As-	Constant
				Reported	Currency	4	Reported	Currency	4
Revenue by Region	1
Korea			¥64,942	¥57,340	¥53,277	(12%)	(18%)
China			43,080	29,182	27,328	(32%)	(37%)
Japan			3,609	3,630	3,483	1%	(3%)
North America and Europe	5,156	9,919	8,991	92%	74%
Rest of World	2		7,300	8,347	7,731	14%	6%
Nexon Total			124,087	108,418	100,810	(13%)	(19%)
Revenue by Platform
PC	3			93,070	79,297	73,768	(15%)	(21%)
Mobile			31,017	29,121	27,042	(6%)	(13%)
Nexon Total			124,087	108,418	100,810	(13%)	(19%)
FX Rate
100 KRW/JPY		10.41	11.19	10.41	7%
CNY/JPY			19.34	20.79	19.34	7%
USD/JPY			132.34	148.61	132.34	12%

Q1 2024 Revenue Breakdown

8%

9%		27%
3%
Region1	53%	Platform
27%		73%

Region1	Platform
Korea 53%	PC3 73%
China 27%	Mobile 27%
Japan 3%
North America & Europe 9%
Rest of World2 8%

1. Based on regions where the revenue originates; 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 Constantcurrency is a non-GAAP measure used to show performance unaffected by fluctuations in foreign currency exchangerates. 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.

© 2024 NEXON Co., Ltd. All Rights Reserved.

6

Q12024Korea-Highlights

ExceededOutlook Driven by FC ONLINE1 and FC MOBILE2

• PC3 revenues down 6% Y/Y
• • Strong contributions from Wars of Prasia and MapleStoryWorlds4 were offset by decreased revenues from FC ONLINE1 and MapleStory
  • • FC ONLINE1: Exceeded outlook driven by successful updates and sales promotions. Down Y/Y due to a tough comparison with Q1 2023 when we achieved record quarterly revenue
    • MapleStory: Slightly fell below outlook and down Y/Y. However, our strategy of prioritizing the improvement of player engagement and satisfaction delivered earlygood progress
• Mobile revenues decreased 24% Y/Y; increased 20% Q/Q
• • Y/Y, a contribution from Wars of Prasia was more than offset by revenue decreases fromHIT2, The Kingdom of the Winds: Yeon as well as FC ONLINE M5 and FC MOBILE2
  • Q/Q, revenue increase primarilydriven by FC ONLINE M5, FC MOBILE2, and Blue Archive

YoY% change:

	(Unit: ¥ millions)			As Reported:				-12%
						Constant Currency6:	-18%
					75,855
	64,942	62,071			57,340
						52,462
	43,365	42,124	56,202					3
				40,959
						38,832			PC
	21,577	19,947	19,653					Mobile
	13,630		16,381
		Q1 2023	Q2 2023	Q3 2023	Q4 2023		Q1 2024
1	Official title is EA SPORTS FC	ONLINE (PC).		5	Official title is EA SPORTS FC	ONLINE M (mobile).
	6 Constantcurrency is a non-GAAP measure used to show performance unaffected by fluctuations in foreign currency exchange
2	Official title is EA SPORTS FC	MOBILE.
		rates. Constant-currency basis amounts are calculated using the average foreign currency exchange rates for the comparable
3	PC revenues include other revenues besides PC online games and mobile games.
period in the prior year and applied to the current period. As an example, we calculate royalty revenues from China
4 A content creation and play platform based on MapleStory IP.		Dungeon&Fighter by applying the same CNY/USD, USD/KRW and KRW/JPY exchangerates from last year's same fiscal quarter.

Revenue Ranking by Region7

PC3MOBILE

1

EA SPORTSFCTM ONLINE	EA SPORTSFCTM ONLINE M

2

MapleStory	EA SPORTSFCTM MOBILE

3

Dungeon&Fighter	Blue Archive

4

Sudden Attack	MapleStory M

5

Wars of Prasia	The Kingdom of the Winds: Yeon

1. Based on regions where the revenue originates; not a representation of revenues according to Nexon entities.
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.© 2024 NEXON Co., Ltd. All Rights Reserved.

7

Q12024China-Highlights

Results as Planned. Down Y/Y Due to Dungeon&Fighter

• Dungeon&Fighter:	Revenue Ranking by Region4

• At the high end of the outlook; down Y/Y

‐ Sharply focused on improving the game's economy following an imbalance in	PC3	MOBILE
the in-game economy which arose late in December

• Y/Y MAUs, paying users, and ARPPU decreased mainly due to an imbalance of the in-game economy
• Q/Q MAUs and paying users decreased mainly due to an imbalanceof the in-

game economy. ARPPU increased due to strong seasonality	1

• MapleStory: The Legends of Maple1 : Slightly increased Q/Q

Dungeon&Fighter	MapleStory: The Legends of Maple1

				YoY% change:
(Unit: ¥ millions)				As Reported:		-32%
						2
				Constant Currency2:	-37%
43,080								MapleStory	Blue Archive
			24,044		29,182
							3
42,935	18,231
		15,133			PC3
			20,943	26,716
145	18,073	158	3,101	12,396 2,737		2,466	Mobile	Counter Strike Online	KartRider Rush+
Q1 2023	Q2 2023		Q3 2023	Q4 2023	Q1 2024

1 Official title of MapleStory M in China.	2 Constantcurrency is a non-GAAP measure used to show performance unaffected by fluctuations in
	foreign currency exchangerates. Constant-currency basis amounts are calculated using the average
	foreign currency exchangerates for the comparableperiod in the prior year and applied to the current
	period. As an example, we calculate royalty revenues from China Dungeon&Fighterby applying the
	same CNY/USD, USD/KRW and KRW/JPY exchangerates from last year's same fiscal quarter.

1. PC revenues include other revenues besides PC online games and mobile games.
2. Based on regions where the revenue originates; not a representation of revenues according to Nexon entities.
3. 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	© 2024 NEXON Co., Ltd. All Rights Reserved.	8
protected materials owned by respective right holders.

Q12024Japan-Highlights

Exceeded Outlook Driven by Blue Archive

• Y/Y growth in MapleStory was offset by decreases from mobile titles
• MapleStory: Delivered record-breaking quarter revenue
• Blue Archive: Outperformance driven by the successful third anniversary update

	YoY% change:
(Unit: ¥ millions)	As Reported:	+1%
	Constant Currency1:	-3%

Revenue Ranking by Region3

PC2MOBILE

1

MapleStory	Blue Archive

2

3,609

1,004	3,132	2,879
2,313	1,095
	1,367
866
2,605	2,037
1,447	1,512

3,630

1,413

2,217

PC2

Mobile

Mabinogi	EA SPORTS FCTM MOBILE

3

Talesweaver	MapleStory M

Q1 2023

Q2 2023

Q3 2023

Q4 2023

Q1 2024

1 Constantcurrency is a non-GAAP measure used to show performance unaffected by fluctuations in foreign currency exchangerates. Constant-currency basis amounts are calculated using the average foreign currency exchangerates for the comparableperiod 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 exchangerates from last year's same fiscal quarter.

1. PC revenues include other revenues besides PC online games and mobile games.
2. Based on regions where the revenue originates; not a representation of revenues according to Nexon entities.
3. 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	© 2024 NEXON Co., Ltd. All Rights Reserved.	9
protected materials owned by respective right holders.

Q12024NorthAmericaandEurope -Highlights

Slightly Below Outlook Due to THE FINALS

• Y/Y growth driven by contributions from THE FINALS and DAVE THE DIVER as	Revenue Ranking by Region3
well as growth in MapleStory

• THE FINALS: Launch of Season 2 in March created a short-lived increase in player metrics but delivered lower-than-expected retention and revenue
• MapleStory: Grew significantly Y/Y and marked record quarterly revenue
• MapleStory M: Grew double-digit Y/Y

	YoY% change:
(Unit: ¥ millions)	As Reported:	+92%
	Constant Currency1:	+74%

PC2

1

THE FINALS

2

MOBILE

MapleStory M

		8,925	8,162
5,156	5,461	3,485
	4,601
	1,706
1,962
3,194	3,755	5,440	3,561

9,919

5,296

4,623

PC2

Mobile

MapleStory

3

DAVE THE DIVER

Blue Archive

Choices: Stories You Play

Q1 2023

Q2 2023

Q3 2023

Q4 2023

Q1 2024

1 Constantcurrency is a non-GAAP measure used to show performance unaffected by fluctuations in	2	PC revenues include other revenues besides PC online games and mobile games.
foreign currency exchangerates. Constant-currency basis amounts are calculated using the average	3	Based on regions where the revenue originates; not a representation of revenues according to Nexon entities.
foreign currency exchangerates for the comparableperiod in the prior year and applied to the current	4	The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which
period. As an example, we calculate royalty revenues from China Dungeon&Fighter by applying the
	are shown in this material are trademarks, registered trademarks, copyrighted works or other legally

same CNY/USD, USD/KRW and KRW/JPY exchangerates from last year's same fiscal quarter.	protected materials owned by respective right holders.

© 2024 NEXON Co., Ltd. All Rights Reserved. 10