KRAFTON FY2025 Q4 Earnings Release

FY2025 & 4Q25 Earnings ResultsFY2025 & 4Q25 Earnings Results
February 9, 2026February 9, 2026

Financial statements included in this document are consolidated results of KRAFTON, Inc. (the “Company”) and its subsidiaries an d have been prepared in
accordance with K -IFRS.
Financial results and operational performance included herein have been prepared for investors’ convenience only and have not be en audited by an
independent auditor; as such, certain part (s) of this presentation are subject to change, upon completion of the audit revie w.
Company makes no representations as to the accuracy or completeness of the information herein, nor does the Company assume an y d uty to update any
information, given that this presentation has been prepared based on currently available data.
Company shall not have any liability for any loss arising from any use of this presentation or its contents or otherwise aris ing in connection with this
presentation, as this should not be construed to be related to any investment decision making and shall not be used for any l ega l proceedings.
Disclaimer

The Essence of Games,
The Expansion of Value
The Essence of Games,
The Expansion of Value
CEO CH KimCEO CH Kim

4
Part 1. G ame : Franchise IP
4

5
Update on ’25 Strategy and Performance
Solid Growth of the PUBG Franchise IP and Validation of New IP Potential
5
1) Based on the 2017~2025 data, games achieving Steam Platinum status for 9 consecutive years: PUBG, CS:GO, DOTA, 2) Steam B estof 2025 (by revenue): Gold in the New Releases (ranked 15~24), Silver in the Overall Games category (ranked 25~50), 3) Early Access, 4) As of February 9, 2026, Subnautica 2 (#1), PUBG: Black Budget (#29), No Law (#96)
Key Achievements of 2025 2025 Message Recap
• Full -Scale Execution of PUBG IP Franchise Strategy
– Investing in content and service enhancement for all fans
– New titles for potential fans across platforms and generations
• New Growth Drivers: Acquisition of Big Franchise IPs
– Resource allocation focused on four areas for securing Franchise IP
– Expanding production and publishing titles
• Securing Key Big Franchise IPs to Reach KRW 7tn in
Revenue and 2X Corporate Value within 5 Years
• Solidifying PUBG IP Franchise by Expanding Core Users
– PUBG PC/Console delivered 5 consecutive years of revenue growth,
Steam Platinum for 9 consecutive years 1)
– Expanding user base through content investments and collaborations
• Early Success of New IPs with Potential to be the Next Big IP
– inZOI : 1M+ copies sold within 7 Days of EA 3), Steam Best of 2025 2)
– MIMESIS: 1M+ copies sold within 50 Days of EA
– 3 upcoming titles in Steam Wishlist Top Rankings 4), confirming user
expectation

6
PUBG IP Franchise: Core Services
Evolving into a Long -term PLC IP, Accelerating Transition as a Gameplay Platform in 2026
6
Strengthening cultural experiences with collaborations and new content categories
Continuing to share PC -mobile content across the franchise
Accelerating content production and scalability through diversifying creation sources
Establishing a virtuous cycle with live ops expertise to evolve into a long -term PLC IP
UGC
Sophisticated sandbox
based on
PUBG core game play
Gameplay
Diversification
Expand Co -dev Creatives
Launch 4 Well -made Modes
Core Enhancement
Update to Unreal Engine 5
Improve and develop
new contents
Direction for PUBG 2.0 Expanding Investment into Impactful Cultural Content
Mega -IP Collaborations
Collaborations with globally influential
brands and artists
Campaigning New Modes
Enhancing brand experiences through
integrated campaigns and content

7
PUBG: Blindspot New Projects PUBG: Black Budget Valor
PUBG IP Franchise: New Titles
Developing New Titles across Multiple Internal Studios to Attract Potential Fans
7
Inheriting PUBG’s core gunplay
Validating core game loop via Alpha Test 2)
PC
Extraction Shooter
18+ 1)
Fresh shooter experience based on PUBG universe
Validating scalability after early access in February ’26
PC
Top -down Tactical Shooter
15+
A new console experience built on PUBG’s core
Validating gameplay through closed tests
Console
Battle Royale
18+
1) Target age group, 2) Closed Alpha Test conducted in December 2025
PUBG Studio Projects KRAFTON Studio Projects
．．．
GW
Shooter | PC/Mobile
Aegis
Shooter | Mobile
Incubating multiple new projects

8
M&A and Equity Investment
Recalibrating Our Principles for Targeting, Validation, and Investment to Secure Franchise IPs
8
Large -Scale M&A
Securing ‘Another PUBG’ to
redefine corporate value
Immediate Financial Impact
Accelerating Big IP -Driven Growth
Key requirements to leap as a global publisher
Ongoing exploration to secure opportunities
Mid -to -Small Sized M&A
IPs with core fandom and
potential to scale into franchises
Evolving into Long -term PLC IPs
through Scale -up Capabilities
Investing in IPs 1)with core fandom and scalability
Scale -up through synergies with KRAFTON
Minority Investment & 2PP
Partnering with proven teams, backed by
projects with near -term launch visibility
Strengthening Publishing Lineup
Securing New Creatives
Securing a clear path to control
Internalizing proven development capabilities
1) Examples of previously acquired IPs: Subnautica , Hi-Fi RUSH, Last Epoch

9
1PP Production
Secur ing Top -tier Production Leaders, Accelerating Small & Fast Attempts to Build Franchise IPs
1) Four subsidiary CEOs, seven production leaders in specialized domains (art, tech, creative), 2) As of January 2026, six o f these are led by newly hired production leaders, 3) Feasibility Test: Max 20 develops within 1 year, Core Play Validation: Ma x 50 developers within 3 years, 4) As disclosed in February 2025, new title development investment is expected to increase to approximately KRW 300bn per yea r over the next five years
Securing Proven Leadership, Expanding Production Efficient Dev Framework for Small & Fast Attempts
Recruited
15 1) Key Leadership
1PP Pipeline
26 Titles
(15 New Projects Initiated in 2025 2))
Internalizing full -cycle success experience of a b ig franchise IP
Expanding pipeline into new genres for KRAFTON
Establishing parallel development system led by proven leaders
Highly efficient productions led by proven leaders and small elite teams
Efficient cost management through staged resource allocation framework
Optimizing resource efficiency through bold pivoting and rapid reallocation
9
Operating Cost -Efficient Development Framework New Leadership and Pipeline Overview
Resource Allocation
Guidelines by Each
Development Stage 3)
Optimizing ~40%
In Development Cost 4)

10
Major New Titles
Ongoing New Title Development to Secure New Franchise IPs
10
• Early Access in 2026
• Expanding the original title’s deep -sea
exploration and survival experience to
a new planet
• Maintaining #1 most Wishlisted 1)on
Steam, expect to grow core fandom
Studio
Genre
Platform
Unknown Worlds
Underwater Survival
Adventure
PC/Console
• Closed Beta Test in 2026
• Recreating the lore and core
gameplay of Palworld for Mobile
• Targeting both existing and new users
with differentiated mobile
experiences
Studio
Genre
Platform
PUBG STUDIOS
Open -world Survival
Crafting
Mobile
• Official Launch in 2027
• A first -person immersive simulation
set in a cyberpunk world, where
player choices dynamically shape the
narrative
• 2.3M+ trailer views after its reveal at
TGA, validating strong anticipation
for the new IP
Studio
Genre
Platform
Neon Giant
Open -world Shooter RPG
PC/Console
• Soft Launch in 2027
• Spin -off title of Dinkum, a frontier life
simulation inspired by the Australian
Outback
• Building on the original IP’s strengths
with social, combat and co -op
features, expect the title to become a
leading game in the genre
Studio
Genre

Platform
5minlab
Frontier Life Simulation
PC/Mobile
1) As of February 2026

11
Key IP Scale – up
Targeting Genre Champions, Focusing Resources on Scaling to Long -term PLC IPs
11
ㄱ
• Enhancing life simulation experience and polish
ahead of official launch
• Strengthening content loop through UGC and
multiplayer features to evolve into a long -term
PLC IP
inZOI Studio Life Simulation Eleventh Hour Games
• Expanding development resources and
infrastructure after acquisition to enhance the
speed and quality of each season and content
updates
• Elevate the title into a leading ARPG IP
ARPG
• Expanding AI -driven game mechanics and
connected content to drive re -playability
• Targeting 10M cumulative unit sales by 2027 to
emerge as a major title in the co -op horror genre
ReLU Games Co -op Horror

12
Part 2. Beyond game: Leveraging game – core
12

13
Expanding through Games
Driving Visible Results through Disciplined, Game -Synergy -Driven M&A
13
ADK: Extending Game IP PLC and Anime -to -Game Expansion Neptune: Expanding Ad Tech -Driven Value Chain in India
• In progress of operating an ad monetization model that leverage core game traffic
• Establishing local ad network and accelerating India -focused AdTech business
• Internalizing value chain to capture potentials in India’s fast -growing gaming market
ProactiveAcquisition ofPromisingIP Rights
Trans -media Expansion
Expanding presence inJapan
• Building a sustainable pipeline through production committee
• Maximizing IP PLC through cross Game -Anime Expansion
• Marketing efficiency and business expansion via strategic footholds 1)in Japan
1) ADK maintains a network of over 2,000 corporate clients and media partners in Japan
Game
IP

14
AI Perspective
Key Driver Behind KRAFTON’s Future Innovation and Value Expansion
14
Enabler
Business
Impact
Foundation
In -game AI
Delivering fresh experiences
and fun
… AIGC 1) CPC 2) RL 3)Bot
Enhancing efficiency
and effectiveness
… QA
Automation
Anti –
cheat
NSFW 4)
Filter
Synergies with AI Business
New business opportunities
derived from games
AI for Game Game for AI
… Humanoid
Robotics
Related to
Physical AI
AI First
Fundamental changes in work practices and organizational structure
AI-driven work automation & Company -wide infrastructure and system overhaul
AI Basic and Applied Research
Enabling intelligence and service optimization throughout the gaming value chain
Multi -modal foundation models, game -specific models, and more
1) AI -Generated Content, 2) Co -Playable Character, 3) Reinforcement Learning, 4) Not Safe for Work
Improving Production & Service

15
Game for AI
Exploring AI Business Expansion Leveraging Game Development and Service Expertise
15
Bringing AI for Games Capabilities into
Real -world Physical AI
Experience in physics –
based virtual world
Virtual learning environments
& data generation infra
In -game play &
interaction data
High -quality training data
for new businesses
“AI for Game”
In -game AI, Improvements in
production and live service
“Game for AI”
Leveraging game expertise to advance AI
Unlocking new opportunities in humanoid robotics and beyond
Game AI
AI for Game + Game for AI
Global top -tier
AI R&D capabilities 1)
Agile AI Integration &
implementation
1) 56 papers published in major global AI conferences and journals from 2023 to 2025, including 28 papers at the world’s top three AI conferences ( NeurIPS , ICLR, ICML)

16
Body Brain Neural System
Game for AI
Leveraging Core Gaming Capabilities to Expand into Physical AI
Physical AI
• Transferring game -validated AI
capabilities to the real world
with a long -shot approach
• Differentiating through a focus
on human interaction
Humanoid
Robotics
New
Business
B
New
Business
A
…
Focusing on AI S/W Core
Synergy via Partnerships with Global H/W Leaders
Advancement through game,
Expanding into synergy -ready domains
16

17
Conclusion
17
Games are at the Core of KRAFTON.
We Build Long -term PLC Franchise IPs and
Pioneer the Future as a Global AI Innovator.

FY2025 & 4Q25
Financial Performance
FY2025 & 4Q25
Financial Performance
CFO Dongkeun Bae CFO Dongkeun Bae

2025
Results
at a
Glance
Revenue
Operating
Profit
New IP
Progress
New title launches and development in 2025
Revenue grew 23% YoY driven by sustainable
growth of PUBG IP and new IP performance
Operating profit declined 11% YoY, reflecting
investments in developers, PUBG 2.0 initiatives,
and one -off costs
inZOI reached 1M+ copies sold within 7 Days, and
MIMESIS reached 1M+ within 50 days of Early Access
15 new 1PP 1)projects initiated in 2025
19 1) 1st Party Publishing
2
Million
Seller
15
New
Projects
KRW 3.3 tn
KRW 1.1 tn

232.6 323.5 219.7 353.9 287.4
362.2
532.4
427.6
488.5
292.2 12.3
13.1
9.8
10.2
9.7
10.5
5.1
4.9
18.0
330.4
4Q24 1Q25 2Q25 3Q25 4Q25
2025 KRW 3,326.6bn (YoY 22.8% ↑)
4Q25 KRW 919.7bn (QoQ 5.6% ↑, YoY 48.9% ↑)
(KRW bn) 4Q 2024 3Q 2025 4Q 2025 QoQ YoY FY2024 FY2025 YoY
Revenue 617.6 870.6 919.7 +5.6% +48.9% 2,709.8 3,326.6 +22.8%
PC 232.6 353.9 287.4 -18.8% +23.6% 941.9 1,184.6 +25.8%
Mobile 362.2 488.5 292.2 -40.2% -19.3% 1,689.8 1,740.7 +3.0%
Console 12.3 10.2 9.7 -4.7% -20.8% 44.3 42.8 -3.5%
Others 10.5 18.0 330.4 +1,732.0% +3,057.5% 33.7 358.5 +963.2%
Revenue
Quarterly Revenue Breakdown (Platform) PUBG IP Franchise 1) Revenue Growth
20
617.6
874.2 870.6
662.1
919.7
Revenue (Annual)
1,885.4 1,854.0 1,910.6
2,709.8
3,326.6
2021 2022 2023 2024 2025
1) Excluding incentives received from a partner related to PUBG IP performance in 2024
2024 2025
PC/Console
+16%
PUBG IP Franchise
+13%
Mobile
+11%
Revenue Breakdown
(KRW bn) (KRW bn)
PC/Console Mobile

402.1 416.9 416.0 522.0
518.2
292.2
12.7
106.9
4Q24 1Q25 2Q25 3Q25 4Q25
917.3
215.5
457.3
246.1 348.6
2.4
4Q24 1Q25 2Q25 3Q25 4Q25
650.6 751.6 768.0
1,182.5
1,054.4
2021 2022 2023 2024 2025
1) Platform fees / Cost of Revenue consist of Steam, market commissions, etc, 2) Adj. EBITDA = EBITDA + Share -based payment expenses, 3) One -off costs occurred in each quarter (Common Labor Welfare Fund, Laws uit Related) 21
2025 1,054.4bn (YoY 10.8% ↓)
4Q25 2.4bn (QoQ 99.3%↓, YoY 98.9%↓)
KRW 1,860.5bn, excluding ADK and one -off costs (YoY 21.8%↑)
509.3
Operating Expenses & Profit
Operating Expenses
2025 KRW 2,272.2bn (YoY 48.8%↑)
4Q25 KRW 917.3bn (QoQ 75.7%↑, YoY 128.1%↑)
KRW 518.2bn, excluding ADK and one -off costs (QoQ 1.7%, YoY 28.9%↑)
Operating Profit
(KRW bn) 4Q 2024 3Q 2025 4Q 2025 QoQ YoY FY2024 FY2025 YoY
Operating Costs 402.1 522.0 917.3 +75.7% +128.1% 1,527.3 2,272.2 +48.8%
Personnel 132.7 155.5 284.0 +82.7% +114.1% 516.8 734.7 +42.2%
Platform fees/Cost of Revenue 1) 84.8 128.6 103.7 -19.3% +22.3% 349.3 421.3 +20.6%
Paid Commissions 97.9 141.6 390.3 +175.6% +298.8% 316.1 712.3 +125.4%
Marketing 37.9 43.3 51.8 +19.8% +36.8% 101.4 144.1 +42.0%
Share -based Payment Expenses 10.5 5.4 6.4 +18.7% -39.7% 102.4 49.6 -51.5%
Others 38.3 47.7 81.1 +71.3% +111.7% 141.3 210.1 +48.7%
Operating Profit 215.5 348.6 2.4 -99.3% -98.9% 1,182.5 1,054.4 -10.8%
% Margin 34.9% 40.0% 0.3% -39.8%p -34.6%p 43.6% 31.7% -11.9%p
Adj. EBITDA 2) 253.4 389.8 58.8 -84.9% -76.8% 1,391.3 1,249.9 -10.2%
% Margin 41.0% 44.8% 6.4% -38.4%p -34.6%p 51.3% 37.6% -13.7%p
Operating Expenses (Quarterly) Operating Profit (Quarterly) Operating Profit (Annual)
(KRW bn) (KRW bn) (KRW bn)
ADK Operating Expenses One -off Costs 3) Operating Expenses

491.2 371.5
15.5
369.4
(22.7)
4Q24 1Q25 2Q25 3Q25 4Q25
602.6 498.9
23.9
486.7
(50.5)
4Q24 1Q25 2Q25 3Q25 4Q25
519.9 500.2 594.1
1,302.6
733.7
2021 2022 2023 2024 2025
Net Profit
Net Profit
Net Profit (Quarterly)
(KRW bn) 4Q 2024 3Q 2025 4Q 2025 QoQ YoY FY2024 FY2025 YoY
Operating Profit 215.5 348.6 2.4 -99.3% -98.9% 1,182.5 1,054.4 -10.8%
Non -Operating Profit 387.1 138.1 (52.9) T/D 1) T/D 1) 540.2 (95.4) T/D 1)
Non -Operating Income 417.4 123.2 153.2 +24.3% -63.3% 729.6 405.7 -44.4%
Other Income 409.9 115.7 147.4 +27.4% -64.0% 697.1 380.7 -45.4%
Finance Income 7.4 7.5 5.8 -23.5% -22.6% 32.5 25.0 -23.1%
Non -Operating Expense 30.2 (14.8) 206.1 T/D 1) +581.7% 189.4 501.1 +164.5%
Other Expenses 27.8 (17.7) 202.3 T/D 1) +626.3% 180.0 489.5 +172.0%
Finance Expenses 2.4 2.9 3.8 +33.1% +59.6% 9.4 11.6 +23.1%
Profit Before Income Tax 602.6 486.7 (50.5) T/D 1) T/D 1) 1,722.7 959.0 -44.3%
Income Tax 111.4 117.3 (27.8) N/A N/A 420.1 225.3 -46.4%
Net Profit 491.2 369.4 (22.7) T/D 1) T/D 1) 1,302.6 733.7 -43.7%
% Margin 79.5% 42.4% -2.5% -44.9%p -82.0%p 48.1% 22.1% -26.0%p
Net Profit (Annual)
22
Profit Before Tax (Quarterly)
(KRW bn) (KRW bn) (KRW bn)
2025 KRW 733.7bn (YoY 43.7% ↓)
4Q25 KRW -22.7bn (QoQ T/D 1), YoY T/D 1))
1) T/D: Turned to Deficit

23 23
Shareholder Return Policy
Enhancing Shareholder Value with KRW 1tn+ in Buybacks, Cancellations, and Dividends Over 2026‒2028
• Total shareholder returns of KRW 693.0bn over three years
• Annual buybacks amounted to 40% of ‘FCF –Investments’
• 100% cancellation in the first year, followed by 60% thereafter
Share Buyback Amount (2023~2025)
KRW 167.9bn (100% canceled )
KRW 199.2bn (60% canceled )
KRW 325.9bn (60% c anceled )
Shareholder Return Results in 2023 -2025 Shareholder Return Policy in 2026 -2028
2026~2028
KRW 1.0tn+
(100% cancellation)
Buybacks Dividends
• Total shareholder returns of KRW 1tn+, up 44% from the prior policy
• Flexible buybacks in timing and size, with 100% cancellation
• Annual capital reduction dividend of KRW 100bn
Type 2026 2027 2028
Buybacks 700bn+
Dividends KRW 100bn KRW 100bn KRW 100bn
Total 1.0tn+
• First buyback scheduled for Feb 10, 2026 (KRW 200bn)
2023~2025
KRW 693.0bn
2023Y
2024Y
2025Y
Dividends
Buybacks

24
Appendix

Summary of Financial Statements
Consolidated Income Statement
(KRW bn) FY2024 FY2025
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Revenue 665.9 707.0 719.3 617.6 874.2 662.1 870.6 919.7
Operating Costs 355.4 374.9 394.9 402.1 416.9 416.0 522.0 917.3
Operating Profits 310.5 332.1 324.4 215.5 457.3 246.1 348.6 2.4
EBITDA 336.4 358.8 350.9 242.9 487.1 276.3 384.4 52.5
Adj. EBITDA 1) 378.5 394.0 365.4 253.4 505.1 296.3 389.8 58.8
Non -Operating Profit 154.8 126.0 (127.7) 387.1 41.6 (222.2) 138.1 -52.9
Other Income 180.7 134.8 (28.3) 409.9 122.0 (4.5) 115.7 147.4
Other Expenses 32.5 15.7 103.9 27.8 84.0 220.8 (17.7) 202.3
Finance Income 8.9 9.3 6.8 7.4 6.2 5.5 7.5 5.8
Finance Expenses 2.3 2.4 2.3 2.4 2.6 2.4 2.9 3.8
Profit Before Income Tax 465.3 458.1 196.7 602.6 498.9 23.9 486.7 (50.5)
Income Tax 116.7 116.7 75.3 111.4 127.4 8.4 117.3 (27.8)
Net Profit 348.6 341.4 121.4 491.2 371.5 15.5 369.4 (22.7)
2024 2025
2,709.8 3,326.6
1,527.3 2,272.2
1,182.5 1,054.4
1,288.9 1,200.3
1,391.3 1,249.9
540.2 -95.4
697.1 380.7
180.0 489.5
32.5 25.0
9.4 11.6
1,722.7 959.0
420.1 225.3
1,302.6 733.7
25 1) Adj. EBITDA = EBITDA + Share -based Payment Expenses

Summary of Financial Statements
Consolidated Statement of Financial Position
(KRW bn) FY2024 FY2025
Assets
Current Assets 5,004.4 4,866.3
Cash and Cash Equivalents 1) 3,772.0 3,180.7
Other Current Assets 1,232.4 1,685.6
Non -Current Assets 2,915.0 4,567.3
Property and equipment 239.7 578.9
Intangibles 656.2 1,804.2
Investment in Associates 722.0 806.0
Others 1,297.1 1,378.2
Total Assets 7,919.4 9,433.6
FY2024 FY2025
Liabilities
Current Liabilities 784.8 1,583.3
Non -current Liabilities 305.5 666.2
Total Liabilities 1,090.3 2,249.5
Equity
Shareholders’ equity 6,827.8 7,041.4
Paid -in Capital 4.9 4.9
Capital Surplus 1,477.8 1,476.5
Other Components of Equity 263.7 (77.5)
Retained Earnings 5,081.4 5,637.5
Non -controlling Interests 1.3 142.7
Total Equity 6,829.1 7,184.1
26 1) Including FVPL (Fair Value through Profit or Loss)