KRAFTON FY2026 Q1 Earnings Release

FY2026 1Q Earnings Results
2026. 04. 302026. 04. 30

Disclaimer
Financial statements included in this document are consolidated results of KRAFTON, Inc. (the “Company”)
and its subsidiaries and 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 been audited by an independent auditor; as such, certain part (s) of this
presentation are subject to change, upon completion of the audit review.
Company makes no representations as to the accuracy or completeness of the information herein, nor
does the Company assume any duty 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 arising 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 legal proceedings.

CEO CH KimCEO CH Kim
1Q26 CEO Highlights1Q26 CEO Highlights

Sustaining Growth Momentum through Platformization and Global Expansion
PUBG IP Franchise
5-Year 1Q Revenue Trend
Diverse cultural experiences through expanded entertainment content investment
Preparing for PUBG 2.0 through well -made modes and expanded UGC 2)
Traffic growth underpinned by global fandom marketing
Evolving into
a Content Platform
Building Presence in
Emerging and Western Markets
Achieved a record -high 1Q revenue (+24% YoY)
Expanded monetization base through enhanced BM
Stronger user engagement driven by seasonal content and major events
4
[1Q26 Recap] Solid Growth Across Core Services ¹⁾ [2026 Plan] Structural Initiatives t o Drive Traffic G rowth
1) Including PUBG PC/Console, PUBG Mobile, BGMI, and Peacekeeper Elite Technology Service Fee2) User Generated Content
1Q22 1Q23 1Q24 1Q25 1Q26

Evolving into a UGC -Driven Live Service IP for Long -Term Growth
inZOI
5
Polishing based on user feedback
Year -round optimization to improve stability
Console porting to broaden access
Strengthening Core Experience
Enhanced Core Gameplay
1) Update planned for 2Q -3Q 2026
Expanding beyond traditional genre boundaries through diversified play experiences
Lowering content creation barriers through AI scripting mod tools and multiplayer support 1)
Driving user lock -in and fostering a sustainable revenue model through a creation –sharing –play cycle
Building a Platform IP through a Modding Ecosystem
Mod Browser Multiplayer Sessions UGC

Subnautica 2 Early Access Preparations Well Underway
Subnautica 2
6
Studio
Genre
Platform
Unknown Worlds
Underwater Survival Adventure
PC / Console
Subnautica 2 Overview Expected to Extend the Franchise Lifecycle and Broaden the Fan Base Across Regions
The series has sold 18.5M+ cumulative units¹ ⁾, and ha s maintained Steam Wishlist #1 since September 5, 2025² ⁾
Positive reception confirmed through Early Access build tests across key regions
New content including Co -op mode, with continued content updates post -launch via open development
1) Cumulative sales of the Subnautica series ( Subnautica , Subnautica : Below Zero) over the past 10 years 2) As of April 2026
Subnautica : Below Zero
Early Access
2019.01
Subnautica 1
Early Access
2014.12
Subnautica 2
Early Access
2026

Expanding KRAFTON’s Distinctive Player Experiences with In -House AI
AI for Game
Raon
Raon -Speech
Voice Input / Output
Raon -SpeechChat
Real -time conversation
Raon -OpenTTS
Text -to-Speech
Raon -VisionEncoder
Image -Data Conversion
Game A
Game B
Game C
Offers a more immersive gameplay through AI -driven interaction
Performance continuously improved through large -scale³ ⁾ game data training
Phased rollout beginning with the Arcade Mode (Beta launch) in 20 26
7
4 In-house AI models spanning voice, conversation, and image
Top -ranked in benchmarks against global peer models² ⁾
Game -specific fine -tuning to secure both cost efficiency and performance
PUBG Ally: In -Game AI that Plays and Interacts Like a Real Player Raon : In -house Multimodal¹ ⁾ AI Adaptable to Games
Fine -tuning
1) Processing multiple data types –such as voice, text, and images –together 2) Raon -Speech ranked #1 on average across Korean and English benchmarks among publicly available speech -language models with 10B param eters or fewer 3) Based on 38,512 gameplay sessions from 1,091 users over one month at PC cafes used for PUBG Ally testing

CFO Dongkeun Bae CFO Dongkeun Bae
FY2026 1Q Financial PerformanceFY2026 1Q Financial Performance

1Q26
Highlights
Revenue KRW 1.4 tn
Operating
Profit
KRW 561.6 bn
YoY growth rate: 1Q25 vs. 1Q26
PUBG IP Franchise Revenue
Higher engagement and more paying user across
services supported both qualitative and quantitative
growth
9
+24 %
Achieving 53% of FY2025 full -year operating profit,
increased 23% YoY
PUBG IP Franchise 1)revenue exceeded KRW 1tn
for the first time in a quarter
Total revenue grew 57% YoY to a record quarterly high
1) Including PUBG PC/Console, PUBG Mobile, BGMI, and Peacekeeper Elite Technology Service Fee

523.0 538.7
665.9
874.2
1,371.4
1Q22 1Q23 1Q24 1Q25 1Q26 1Q25 1Q26 PC/ 콘솔 모바일
Revenue Breakdown
PUBG IP Franchise 1) Revenue Trend 1Q Revenue Trend
PC/Console
+14%
PUBG IP Franchise
+24%
Mobile
+30%
323.5 219.7 353.9 287.4
363.9
532.4
427.6
488.5
292.2
702.7
13.1
9.8
10.2
9.7
13.8
5.2
4.9
18.0 330.4
291.0
1Q25 2Q25 3Q25 4Q25 1Q26 PC 모바일 콘솔 기타
874.2
662.0
870.6 919.7
1,371.4
(Unit: KRW bn)
10
(YoY 32.0% ↑, QoQ 140.5% ↑) Mobile 1Q26 KRW 702.7bn
Console (YoY 5.7% ↑, QoQ 42.5% ↑) 1Q26 KRW 13.8bn
Revenue
PC 1Q26 KRW 363.9bn (YoY 12.5% ↑, QoQ 26.6% ↑)
Others (YoY 5,553.4% ↑, QoQ 11.9% ↓) 1Q26 KRW 291.0bn
Revenue Breakdown (by platform)
(Unit: KRW bn)
PC Mobile Console Others PC/Console Mobile
1) PC/Console revenue represents the combined figures for PUBG PC and PUBG Console; Mobile revenue represents the combined fi gures Including PUBG PC/Console, PUBG Mobile, BGMI, Peacekeeper Elite Technology Service Fee
(Unit: KRW bn) 1Q 2025 4Q 2025 1Q 2026 YoY QoQ
Revenue 874.2 919.7 1,371.4 +56.9% +49.1%
PC 323.5 287.4 363.9 +12.5% +26.6%
Mobile 532.4 292.2 702.7 +32.0% +140.5%
Console 13.1 9.7 13.8 +5.7% +42.5%
Others 5.2 330.4 291.0 +5,553.4% -11.9%

2026 2Q PUBG IP Franchise Key Content
Expanding Premium Contents for All Fans
Strengthening the Fan Base and Accelerating PUBG’s Evolution into a Content Platform
Structural Initiatives to Drive Traffic Growth Enhancing User Experience via Expanded Premium Content
Regional Voice Pack
New Gilt Skin New X -Suit
Popular Content Re -release
New Contender System
IP Collaboration IPL 1)Match Prediction
Xeno Point Mode
PAYDAY Mode
8thAnniversary Theme
WOW Enhancements
5thAnniversary Landmark
Expanding modes and gameplay across PC/Mobile to drive structural traffic growth
BGMI to strengthen retention through localized content
Strengthening the core fandom through expanded premium content offerings
Improving revenue efficiency via proven BM coupled with strong publishing strategy
11
Diversifying Play Experiences to Expand as a Content Platform
1) Indian Premier League (Cricket)

416.9 416.0 509.3 518.2 524.8
292.2 244.1
12.7
106.9 41.0
1Q25 2Q25 3Q25 4Q25 1Q26
영업비용 ADK 영업비용 일회성 비용
457.3
246.1
348.6
2.4
561.6
1Q25 2Q25 3Q25 4Q25 1Q26
487.1
276.3 384.4
52.4
609.5
18.0
20.0 5.4
6.4
13.4
1Q25 2Q25 3Q25 4Q25 1Q26 EBITDA 주식보상비용
Operating Expenses & Profit
(Unit: KRW bn) 1Q 2025 4Q 2025 1Q 2026 YoY QoQ
Operating Expenses 416.9 917.3 809.9 +94.3% -11.7%
Personnel 148.4 284.0 276.1 +86.0% -2.8%
Platform Fees / Cost of Revenue 1) 105.0 103.7 114.7 +9.3% +10.6%
Paid Commissions 84.2 390.3 288.7 +243.1% -26.0%
Marketing 22.9 51.8 42.0 +83.1% -19.1%
Share -based Compensation 17.9 6.4 13.4 -25.3% +110.6%
Others 38.5 81.1 75.0 +94.6% -7.4%
Operating Profit 457.3 2.4 561.6 +22.8% +22,980.1%
% Margin 52.3% 0.3% 40.9% -11.4%p +40.7%p
Adj. EBITDA 2) 505.1 58.8 622.9 +23.3% +958.7%
% Margin 57.8% 6.4% 45.4% -12.4%p +39.0%p
Operating Expenses
Increased 94.3% YoY due to rise in one -off personnel expenses and ADK
Decreased 11.7% QoQ due to decline in paid commissions
1Q26 KRW 809.9bn (YoY 94.3% ↑, QoQ 11.7% ↓)
Operating Profit
Increased 22.8% YoY and 22,980.1% QoQ driven by strong revenue growth
1Q26 KRW 561.6bn (YoY 22.8% ↑, QoQ 22,980.1% ↑)
Operating Income Adj. EBITDA
505.1
296.3
58.8
389.8
622.9
Operating Expenses
(Unit: KRW bn) (Unit: KRW bn) (Unit: KRW bn)
12
416.9 416.0
917.3
522.0
809.9 ADK Operating Expenses One -off Costs 3) Operating Expenses
EBITDA Share -based Payment Expenses
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, lawsuit -related expenses)

498.9
23.9
486.7
(50.5)
719.1
1Q25 2Q25 3Q25 4Q25 1Q26
371.5
15.5
369.4
(22.7)
514.1
1Q25 2Q25 3Q25 4Q25 1Q26
Net Profit
Profit Before Income Tax Net Profit Non -Operating Profit
(Unit: KRW bn) (Unit: KRW bn) (Unit: KRW bn)
(Unit: KRW bn) 1Q 2025 4Q 2025 1Q 2026 YoY QoQ
Operating Profit 457.3 2.4 561.6 +22.8% +22,980.1%
Non -Operating Profit 41.6 (52.9) 157.5 +278.7% T/S 1)
Non -Operating Income 128.2 153.2 202.0 +57.5% +31.9%
Other Income 122.0 147.4 194.3 +59.3% +31.8%
Finance Income 6.2 5.8 7.7 +23.2% +33.6%
Non -Operating Expense 86.6 206.1 44.5 -48.7% -78.4%
Other Expenses 84.0 202.3 40.0 -52.4% -80.2%
Finance Expenses 2.6 3.8 4.5 +71.1% +18.1%
Profit Before Income Tax 498.9 (50.5) 719.1 +44.1% T/S 1)
Income Tax 127.4 (27.8) 205.0 +60.9% n.a.
Net Profit 371.5 (22.7) 514.1 +38.4% T/S 1)
% Margin 42.5% -2.5% 37.5% -5.0%p +40.0%p
13
41.6
(222.2)
138.1
(52.9)
157.5
1Q25 2Q25 3Q25 4Q25 1Q26
1) T/S: Turn to Surplus
Net Profit
Increased 38.4% YoY and returned to profit QoQ, driven by Non –
Operating Profit from FX effects
1Q26 (YoY 38.4% ↑, QoQ T/S 1)) KRW 514.1bn

153.0 121.6
203.0
Cumulative
KRW 436.2bn
2023 2024 2025 2026
Shareholder Return
KRW100bn Share Buyback and Cancellation in 2Q, with Flexibility in Timing and Scale Going Forward
• KRW 200bn share buyback and KRW 99.6bn ¹⁾capital reduction dividend completed in 1Q26
• KRW 336.2bn 2⁾in shares cancelled, including newly acquired and existing treasury shares (2.7% of total shares outstanding)
2026 1Q
Recap
2026 2Q
Plan
• Additional KRW 100bn share buyback and full cancellation planned in 2Q26
• 1H26 shareholder returns increase 23% and share cancellations increase 115% vs. FY2025
Shareholder Return Share Cancellation 3)
(As of 1Q~2Q) 2023 2024 2025 2026
자기주식 취득 배당
(Unit: KRW bn) (Unit: KRW bn)
14
Cumulative
KRW 399.6bn
1) KRW 2,240 per share paid on April 22, 2026 2) Based on the closing price of KRW 263,500 on April 17, 2026, the trading day prior to the BOD resolution; cancellation comple ted on April 27 3) Treasury share cancellation amounts for FY2023 -2025 were calculated using the closing price on the trading day prior to each BOD resolution multiplied by the number of shares cancelled, and may therefore differ from the book -value -based amounts disclosed previously
(As of 1Q~2Q) Share Buyback Dividend
167.9 199.2
325.9 99.6
300.0

Appendix

Summary of Financial Statements
(KRW bn) FY2025 FY 2026
1Q 2Q 3Q 4Q 1Q
Revenue 874.2 662.0 870.6 919.7 1,371.4
Operating Costs 416.9 416.0 522.0 917.3 809.9
Operating Profits 457.3 246.1 348.6 2.4 561.6
Adj. EBITDA 487.1 276.3 384.4 52.4 609.5
Adj. EBITDA 1) 505.1 296.3 389.8 58.8 622.9
Non -Operating Profit 41.6 (222.2) 138.1 (52.9) 157.5
Other Income 122.0 (4.5) 115.7 147.4 194.3
Other Expenses 84.0 220.8 (17.7) 202.3 40.0
Finance Income 6.2 5.5 7.5 5.8 7.7
Finance Expenses 2.6 2.4 2.9 3.8 4.5
Profit Before Income Tax 498.9 23.9 486.7 (50.5) 719.1
Income Tax 127.4 8.4 117.3 (27.8) 205.0
Net Profit 371.5 15.5 369.4 (22.7) 514.1
(KRW bn) 4Q 2025 1Q 2026
Assets
Current Assets 4,866.3 5,167.7
Cash and Cash Equivalents 1) 3,180.7 3,097.3
Others 1,685.6 2,070.4
Non -current Assets 4,567.3 4,663.6
Property and equipment 578.9 609.1
Intangibles 1,804.2 1,844.0
Investment in Associates 806.0 866.3
Others 1,378.2 1,344.2
Total Assets 9,433.6 9,831.3
Liabilities
Current Liabilities 1,583.3 1,705.3
Non -current Liabilities 666.2 666.6
Total Liabilities 2,249.5 2,371.9
Equity
Shareholders’ equity 7,041.4 7,318.1
Paid -in Capital 4.9 4.9
Capital Surplus 1,476.5 1,474.0
Other Components of Equity (77.5) (214.2)
Retained Earnings 5,637.5 6,053.4
Non -controlling Interests 142.7 141.3
Total Equity 7,184.1 7,459.4
Consolidated Income Statement Consolidated Statement of Financial Position
16
1) Including FVPL (Fair Value through Profit or Loss)

Slogan
Statement
Core
Values Aim for
Bold Objectives
We set objectives that
inspire us and move us
toward meaningful results
Depth Builds the
Edge
Deep thinking and
meticulous groundwork
fuel our success
Imagination +
Technology
Fuse imagination with
technology to create
immersive experiences
fans have never seen
Fans are at the center of
every decision, guilding us
to bring players’ dreams to
life from start to finish
Expand global capabilities
by understanding and
learning diverse cultural
difference
Fan -First Thinking Embrace Global
Perspectives
We pioneer the path to players’ dreams
With bold imagination and breakthrough technology,
We create unforgettable worlds for fans across the globe
PIONEER THE UNDISCOVERED
Our Vision
17