Pearl Abyss FY2026 Q2 Earnings Letter

2Q26 Pearl Abyss Earnings Letter

Disclaimer
This presentation contains forward -looking statements that relate to our future operations,
prospects, developments, strategies, business growth, and financial outlook. Forward -looking
statements are identified by words such as ‘believes’, ‘estimates’, ‘expects’, ‘intends’, ‘may’,
‘projects’, ‘could’, ‘should’, ‘will’, ‘continue’ and other similar expressions.
All statements other than statements of historical fact could be forward -looking statements, which
speak only as of the date they are made, do not guarantee future performance and are subject to
certain risks, uncertainties, and other factors beyond our co ntrol and difficult to predict.
Also, Forward -looking statements are identified based on the current market situation and
company’s strategies, therefore, can be altered without notifications due to changes in market or
the company’s strategies.

Management Summary
Pearl Abyss recorded weaker performance QoQ in 2Q26, as the initial launch impact of Crimson
Desert softened. The Black Desert franchise outperformed its guidance, supported by continuous
live updates including class balance adjustments, marketplace system enhancements, and
revamped rewards for ‘Conquest Wars ’.
Crimson Desert maintained steady performance by selling approximately 2.11 million copies during
2Q26; however, revenue declined QoQ due to a fading initial launch effect. In 2Q26, average selling
price (ASP) decreased QoQ due to a higher revenue share fro m channels that recognize only a
portion of gross sales as revenue. Furthermore, for physical packages, there was a tim e lag
between sell -through and revenue recognition based on distributor settlement terms, and revenue
fell short of guidance as 20% of th e settlement amount was deferred for refund guarantee
purposes.

▶ 2Q26 Operating Performance
Operating revenue and profit declined QoQ, as the launch effect of Crimson Desert softened.
– Operating revenue posted KRW 192.6 billion, down 41.4% QoQ.
– Operating profit posted KRW 67.6 billion, down 68.1% QoQ, impacted by low er operating
revenue from deferred Crimson Desert revenue and an increase in one -off expenses
including performance bonus payments.
– Net profit posted KRW 70.9 billion, down 58.3% QoQ.

(Unit: billion KRW , %)
YoY 247 .7%
QoQ -41 .4%
YoY 7,411 .1%
QoQ -68 .1%
YoY Turn to profit
QoQ -58.3%
0.9 22.7 0.7
212.1
67.6
2Q25 3Q25 4Q25 1Q26 2Q26
Operating Revenue Net Profit(Loss) Operating Profit
55.4 86.0 68.1
328.5
192.6
2Q25 3Q25 4Q25 1Q26 2Q26
-28%
43% -6% 52% 37%
(15.5)
37.3
(4.2)
170.0
70.9
2Q25 3Q25 4Q25 1Q26 2Q26
2% 26% 1%
65%
35%
* Continuing operations basis (The sales of Fenris Creations, formerly CCP games were completed on May 6, 2026)

▶Revenue Breakdown by IP
Operating revenue from Black Desert and Crimson Desert posted KRW 55.0 billion and KRW 13 6.1
billion, respectively.
– Black Desert revenue softened slight ly QoQ, as its operations focused on content
optimization rather than major expansions. On PC, updates centered on revamping the
‘Red Battlefield ’ matching system and ‘Node/Conquest Wars ’, while mobile held
celebratory events for its 3,000th day of service, showing positive user engagement
trends.
– Crimson Desert sold approximately 2.11 million copies during 2Q26, with digital sales
accounting for 1.72 million copies (82%) and physical sales accounting for 0.39 million
copies (18%). In 2Q26, average selling price (ASP) decreased QoQ due to a higher
proportion of sales from channels , where revenue is recognized as a percentage of gross
payment. Furthermore, for physical packages, there was a tim e lag between sell -through
and revenue recognition based on distributor settlement terms, and revenue came in
belo w guidance as 20% of the settlement amount was deferred for refund guarantee
purposes. The ASP in 2Q26 stood at approximately KRW 63 thousand (compared to KRW
74 thousand in 1Q26), declining QoQ due to factors including regional pricing strategies,
sales s plit across distribution chan nels, and the proportion of digital vs. physical sales.

▶ Revenue Breakdown by Region and Platform
By region, NA/EU accounted for 75%, Asia for 16%, and Korea for 9%.
By platform, PC accounted for 61%, console for 34%, and mobile for 5%. The console share
remained high as Crimson Desert accounted for approximat ely 70% of total revenue.

2Q25 3Q25 4Q25 1Q2 6 2Q26 QoQ YoY Ratio
Revenue 54.9 79.5 63 .0 328 .1 191 .1 -41.8% 24 8.1% 100.0%
Black Desert 54.9 79.5 63 .0 61.6 55 .0 -10.7 % 0.2 % 28.8%
Crimson Desert – – – 266.5 136.1 -48.9% – 71.2%
26% 23% 23%
6% 9%
20% 19% 21%
13% 16%
54% 58% 56%
81% 75%
2Q25 3Q25 4Q25 1Q26 2Q26
Korea Asia NA/EU
(Unit: billion KRW )
84% 83% 76%
59% 61%
4% 7%
7% 38% 34%
12% 10% 17%
3% 5%
2Q25 3Q25 4Q25 1Q26 2Q26
PC Console Mobile
Revenue by IP
Revenue by Platform Revenue by Region

▶ 2Q26 Operating Expenses
Operating expenses were KRW 125.0 billion, up 7.4% QoQ.
– Labor expenses posted KRW 74.8 billion, up 94.8% QoQ, due to performance bonus
payments following the launch of Crimson Desert.
– Commiss ions posted KRW 30.6 billion, down 28.0% QoQ, driven by normalized Crimson
Desert sales volumes.
– Advertising expenses posted KRW 9.1 billion, down 61.1% QoQ, as post -launch marketing
spending for Crimson Desert decreased.

▶ Employees
The number of employees stood at 1,035, up 1.1% QoQ; while temporary workers hired in 1Q26 for
the Crimson Desert launch decreased, headcount increased slightly due to intern recruitment and
hiring for game operations and marketing staffs. In ad dition, in 2026, we plan to hire only essential
positions while maintaining a conservative approach to overall hiring.

* Continuing operations basis

2Q25 3Q25 4Q25 1Q26 2Q26 QoQ YoY Ratio % of Rev
Operating Expenses 54 .5 63 .3 67 .4 116 .4 125 .0 7.4 % 129.4 % 100.0% 64.9 %
Labor 28.9 29.6 29.8 38.4 74.8 94. 8% 158. 8% 59. 8% 38.8 %
Commissions 13.1 16.0 14.5 42.5 30.6 -28. 0% 133. 6% 24 .5% 15.9 %
Advertising 4.9 10.2 9.3 23.4 9.1 -61. 1% 85.7 % 7.3 % 4.7 %
D&A 2.6 2.5 2.5 2.4 2.2 -8.3% -15.4 % 1.8 % 1.2%
Other expenses 5.0 5.0 11. 3 9.7 8.3 -14.4 % 66. 0% 6.6 % 4.3%
2Q25 3Q25 4Q25 1Q26 2Q26 QoQ YoY Ratio
Employees 960 926 965 1,024 1,035 1.1% 7.8% 100.0%
Development 578 552 592 653 65 6 0.5% 13.5% 63 .4%
Business/Staff 382 374 373 371 37 9 2.2% -0.8% 36 .6%
(Unit: billion KRW, % )
(Unit: No. of employee, % )
Operating Expense by Quarter
Number of Employees

20 26 Outlook
2Q26 performance came in below guidance due to factors including sales splits across distribution
channels for Crimson Desert, regional pricing strategy differences, tim e lags between sell -through
and revenue recognition for physical packages, and revenue deferrals for refund guarantees.
Accordingly, we provide updated guidance reflecting actual first -half performance and revised
estimates.

2026 operating revenue for game is expected to come in at KRW 709.8 ~7 43.8 billion.
– Operating revenue from Black Desert is projected to be KRW 2 39~244.6 billion, which is
approximately a decrease of 4~7% YoY.
– Operating revenue from Crimson Desert is projected to be KRW 4 68.9 ~49 7.3 billion.

2026 operating profit is expected to record KRW 3 15.5~345.2 billion.
– Operating profit is expected to increase by approximately 1, 259 ~1, 387 % YoY, thanks to
solid Black Desert performance and Crimson Desert launch, and operating profit margin is
anticipated to reach 4 4.4~4 6.4%.

* The forecasts abo ve are guidance figures for the game business
* The above estimates may differ from actual re sults

Previous Guidance Revised Guidance
2026 (F) 1H 26 (A) 2H26 ( F) 2026 (F)
Operating Revenue 87 9.0 ~9 75. 4 521.1 188 .7~222.7 709 .8~7 43.8
Black Desert 234.9~240. 6 116 .6 122 .4~128.0 239 .0~2 44.6
Crimson Desert 644.1~734.8 402 .6 66.3~94.7 468.9~4 97.3
Others – 1.9 – 1.9
Operating Expenses 39 1.4~40 2.8 241 .4 152 .9~157 .2 394 .3~3 98 .6
Operating Profit 48 7.6~57 2.6 279 .7 35.8~65.5 315 .5~3 45.2
(OPM) 55. 5~58. 7 53.7 19.0~29 .4 44.4~46. 4
(Unit: billion KRW , %) 2026 Guidance

Live Service
Crimson Desert is preparing key initiatives, including DLC, strategic pricing, and platform
expansion, to ensure long -term success.
The DLC is currently under development scheduled for release this year while we refine its content
direction and overall quality. Specific details regarding pricing, content composition, and launch
timing will be officially announced in 3Q 26 . Additionally, as discounting serves as a crucial sales
strategy for package games, we are actively preparing promotional plans. For platf orm expansion,
the core focus is ensuring that Crimson Desert’s signature graphics, action, and open -world
experience are fully preserved, rather than executing a simple port. In the case of Switch 2, the
game has reached a playable baseline, and we are currently conducting technical reviews regarding
performance optimization and quality standard compliance , targeting a release in the first half of
next year.
For Black Desert PC, we held ‘2026 Heidel Ball’ in 3Q 26 , unveiling our 2H 26 roadmap, which
includes major content updates such as new class ‘Agent’ and new region ‘Edania Part 2’ , as well as
global e sports operations. For Mobile, we plan to maintain stable live operations by delivering
updates such as ‘World Siege War ’ and region -tailored content. While operations in the first half
focused primarily on refining existing content, we will strive to recover performance in the second
half through a robust slate of major updates that have been under preparation.

New Pipelines
Furthermore, two new titles, DokeV and Plan 8, are in active development. DokeV is currently
targeting a release in the second half of 2028, and our reveal strategy is being aligned with this
timeline. Leveraging the technological capabilities and development experience accumulated
during the development of Crimson Desert, development is progressing smoothly. As the project
advances, we are steadily expanding our development manpower to accelerate the pace of
development. Details, gameplay videos, and other material s will be disclosed step by step based on
development progress and marketing strategy. Considering the current pace of development, full –
scale marketing initiatives, including hands -on demos, are expected to begin around the second
half of 2027.

For Plan 8, while resources are concentrated on the development of DokeV, we will strive to
maintain a consistent release cycle of every 2 –3 years.

Shareholder Value Enhancement Plans
To enhance shareholder value, we announced a shareholder return policy after comprehensively
considering our financial structure, business environment, and future investment plans. We plan to
initiate our first dividend payout based on FY2026 performance, with the annual dividend scale set
at the higher of KRW 10.0 billion or 10% of net profit. In addition, in June 2026, we retired
1,403,945 treasury shares, representing 50% of our trea sury holdings, and we are currently
repurchasing treasury shares under a KRW 100.0 billion trust agreement execution from June to
December 2026.
Going forward, we will continue to review multifaceted measures to enhance shareholder value
alongside company growth.

Other s
On May 6, 2026, the company’s subsidiary, Pearl Abyss Iceland ehf. (PAI), completed the divestiture
of Fenris Creations ehf. (formerly CCP ehf.). Profit or loss prior to the disposal as well as gain/loss
on disposal of Fenris Creations are reflected under profit (loss) from discontinued operatio ns for
the current half -year period.

※ Appendix
Consolidated Financial Statements (Comprehensive Income Statement )
2Q25 3Q25 4Q25 1Q26 2Q26
Revenue 55,385 85,973 68,132 328, 498 192,610
Operating Expenses 54,482 63,260 67,387 116,402 124,985
Operati ng Profit(Loss) 903 22,713 745 212, 096 67,62 5
Financial Income(Loss) (18,559) 11,577 6,72 8 16, 11 4 12,165
Other Income(Loss) 76 (10 8) (48 1) (48 ) (40)
Income(Loss) from Equity Method (145) (15 8) (396) (165) (135)
Income(Loss) before Income Tax (17,725) 34,024 6,596 22 7,997 79,615
Income(Loss) Tax Expenses (2,208) (3,274) 10,773 57,949 8,73 2
Net Profit (Loss) from Continuing
Operations (15,517) 37,29 8 (4,17 7) 170,048 70,88 3
Net Profit(Loss) from Discontinued
Operations (7,183) (8,303) (11,032) (12,079) 28,6 59
Net Profit(Loss) (22,700) 28,99 5 (15,20 9) 157,969 99,5 42
* Continuing operations basis
(Unit: million KRW )

Consolidated Financial Statements (Statement of Financial Position )
2025.12.31 2026.0 6.30
Assets
Ⅰ. Current Assets 444,796 809,349
Cash and cas h equivalents 133,875 314,612
Account receivables 58,37 7 72,178
ST financial instruments 218,564 385,775
Financial assets measured at fair value 15,345 24,942
Other current assets 18,397 11,625
Inventory assets 238 217
Ⅱ. Non -Current Assets 704,303 471,126
Account receivables 3,968 1,982
LT financial instruments 138 145
Financial assets measured at fair value 169,971 197,647
AFS financial assets 15,698 16,108
Investment in affiliated companies 39,936 39,635
Tangible assets 178,058 163,321
Intangible assets 256,988 11,311
Investment property 4,465 4,436
Other non -current assets 618 35,081
Deferred tax asset 34,463 1,460
Total Assets 1,149,099 1,280,475
Liabilities
Ⅰ. Current Liabilities 135,652 140,231
Other payables 33,514 29,230
Lease liabilities 5,205 2,071
Income taxes payable 2,018 43,616
Current provisions 0 470
Other current liabilities 94,91 5 64,844
Ⅱ. Non -Current Liabilities 214,344 94,191
Other payables 7,552 6,855
Long -term debt 56,200 71,200
Financial liabilities measured at fair value 18,166 0
Lease liabilities 13,324 4,293
Non -current provision 912 269
Other non -current liabilities 94,510 6,403
Deferred tax liabilities 23,680 5,171
Total Liabilities 349,996 234,422
Capital
Ⅰ. Capital stock 6,623 6,623
Ⅱ. Capital Surplus 219,742 221,001
Ⅲ. Retained Earnings 550,155 790,4 05
Ⅳ. Capital Adjustments (24,229) (22,386)
Ⅴ. Accumulated Other Comprehensive Income 46,812 50,410
Ⅵ. Non -controlling Interests 0 0
Total Capital 799,103 1,046,053
(Unit: million KRW )

※ FAQ

2Q26 Performance

Q. Reasons for Underperforming Guidance
A. Second -quarter performance fell short of guidance primarily due to an increased proportion of
physical package sales, where revenue recognition is limited to a portion of total gross sales.
Physical package revenue is recognized on a net basis, reflecting actual sales proceeds after
deducting distribution commissions, logistics, and promotional expenses. Additionally, there is a
tim e lag between sell -through and revenue recognition due to wholesale -retail settlement
procedures. Furthermore, 20% of the sett lement amount was deferred as a refund guarantee
reserve, contributing to top -line performance below guidance. The deferred revenue is expected to
be recognized sequentially over the second half of the year.

In light of these factors, we have adjusted our guidance and plan to focus on boosting the live
operations of Black Desert and expanding the sales volume of Crimson Desert to achieve our
revised targets. Furthermore, we will continuously monitor key indica tors and sales trends, doing
our utmost to achieve our guidance through marketing and pricing strategies tailored to market
conditions.

Q. Labor Costs and Headcount Status
A. Second -quarter labor costs increased by 94. 8% QoQ due to one -off expenses related to
performance bonus payouts. Total headcount at the end of the second quarter stood at 1,035.
While short -term personnel brought in during the first quarter for the launch of Crimson Desert
declined, total headcount i ncreased by 1.1% QoQ due to an influx of interns as well as additional
hiring in service and marketing functions.

Q. Marketing Expenses
A. Marketing expenses decreased by 61. 1% QoQ, driven by a reduction in marketing spending for
Crimson Desert. In the second half of the year, while remaining mindful of market conditions, we
will strive to maximize marketing effectiveness through efficient cost execution.

Q. Commissions
A. Commissions decreased by 28. 0% QoQ, aligned with sales trends for Crimson Desert. In the first
quarter, platform commissions —such as those paid to Steam —increased significantly due to the
launch of Crimson Desert. However, in the second quarter, as sales stabilized, commissions
adjusted accordingly.

Additionally, differences in revenue recognition methods across platforms impact our commission
expenses. For console platforms, revenue is recognized on a net basis excluding platform fees,
whereas PC revenue is recognized on a gross basis, with platform fees subsequently recorded
under commissions . Consequently, commission expenses are determined not only by raw sales
volume, but also by the relative sales mix across different platforms.

Q. Other Revenue
A. Other revenue primarily consists of valuation and disposal gains related to financial assets. In the
second quarter, our subsidiary Pearl Abyss Capital recorded approximately KRW 2.9 billion in gains
related to financial assets measured at fair value thro ugh profit or los s. The valuation gains
stemmed from foreign exchange revaluation of foreign currency -denominated financial assets,
while the disposal gains were recognized from the sale of investment assets.

2H26 Guidance & Outlook

Q. Feasibility of Achieving Guidance
A. To achieve our revised guidance, we are strengthening the live operations of Black Desert and
preparing various strategies to boost sales of Crimson Desert. For Black Desert, major updates
scheduled for the second half —including new class ‘Agent’ and ‘Eda nia Part 2’ —are expected to
drive a rebound in both user metrics and revenue. For Crimson Desert, we will also pursue multiple
initiatives, such as pricing strategies and DLC releases, to expand sales volumes and ensure we hit
our targets.

Q. Crimson Desert Projected Annual Sales Volume
A. We do not disclose sales volume forecasts for Crimson Desert. Please refer to our annual
guidance .

Q. Potential One -off Expenses
A. Based on our revised guidance, there are no one -off expenses that would impact operating
profit. While executing costs within the provided guidance, we will communicate with the market
promptly should any changes arise.

Black Desert

Q. 2Q2 6 Performance and 2H2 6 Outlook
A. In 2Q2 6, Black Desert exceeded guidance; however, performance softened quarter -over -quarter
as we focused on content optimization rather than major updates. Additionally, in 3Q26 , we hosted
‘2026 Black Desert Heidel Ball’ in the U.S. to celebrate the 10th anniversary of our North American
and European services, where we unveiled upcoming major content updates and system revamp
plans for the second half.

While Black Desert’s 1H26 operations centered on improving existing content, performance is
expected to improve in 2H2 6, as we have prepared a diverse lineup of initiatives, including major
updates such as new class ‘Agent’ and new region ‘Edania Part 2,’ alongside global esports
operations.

Notably, following the recent launch of our 32nd class, ‘Agent,’ and the introduction of the
‘HyperBoost’ system —designed to accelerate the growth of new and returning users —we have
observed a clear rebound in key user metrics, including rising Steam rankings, increased streaming
viewership, and higher DAU. We remain fully committed to delivering rich and engaging content in
the second half to translate these positive trends into strong operational results.

Crimson Desert

Q. Long -Term Growth Strategy and DLC Plans
A. To expand our user base and achieve long -term revenue growth, we are preparing various
follow -up strategies for Crimson Desert, including DLCs and platform expansions. Given that
Crimson Desert is an IP with substantial potential for expansion —spanning its rich world,
chara cters, and regions —we plan to extend its product lifecycle through a steady stream of
content updates.

We are currently developing the first DLC with the goal of delivering a new gameplay experience,
targeting a release within this year. Details regarding its structure, pricing, and exact release
schedule will be shared during the third quarter.

Please note that plans regarding the total number of DLCs and their release cadence have not yet
been finalized, as our primary focus is on ensuring the quality and successful execution of the first
DLC. Subsequent DLC releases and operational plans will b e determined based on a comprehensive
evaluation of user feedback, sales trends, development resources, and company -wide pipelines.

Q. Discount Strategy and Promotion Plans
A. Promotions, including discounts, serve as a critical sales strategy for packaged games. Internally,
we are currently evaluating appropriate discount rates and optimal timing. However, we ask for
your understanding that we cannot disclose specific discount plans in advance due to strategic
marketing considerations. Furthermore, rather than simply lowering the price, our primary focus
will be on executing promotions that effectively expand our new user base and maximize long -term
revenues.

Q. Platform Expansion Plans (Nintendo Switch 2)
A. We are striving to make Crimson Desert available across as many platforms as possible.
However, platform expansion is not merely a straightforward port; the key requirement is ensuring
that the game’s graphics, combat action, and seamless open -world exper ience are fully preserved
on each target device.

In the case of Switch 2, while optimization is required, the game is currently playable at a
foundational level, and technical evaluations are underway to ensure performance optimization and
compliance with our quality standards. While it is difficult to c onfirm a definitive launch schedule at
this time, we are working toward a release targeted for the first half of 2027. We will provide
updates through our official channels once details are finalized.

Q. Multiplayer Expansion Plans
A. Given Crimson Desert’s dynamic action combat and expansive open -world structure, there is
significant potential for expansion into multiplayer modes. However, integrating multiplayer
functionality is far more complex than simply adding a new game mode; it represents a major
technical i nitiative that requires comprehensive evaluation of server architecture, game balance,
cross -platform stability, and live service operation models.

Accordingly, we are currently conducting extensive research from both technical and gameplay
perspectives. Our overarching goal is to extend how user s engage with the Crimson Desert IP over
the long term, and we will share further details through our official channels as our plans
materialize.

Q. Mobile Expansion Plans
A. Currently, we have no immediate plans to release a mobile version of Crimson Desert. As a title
whose core value lies in high -quality graphics, dynamic combat action, and an immersive open –
world experience, any mobile expansion requires prior evaluation o f whether these standards can
be fully delivered in a mobile environment.

While we continue to research the scalability and optimization capabilities of our proprietary
‘BlackSpace Engine ’ for mobile platforms, our current development priority remains focused on
DLCs and next -gen titles. Moving forward, we will evaluate potential mobile expansion in a
comprehensive manner, taking into account technological advancements, market opportunities ,
and strategic development priorities.

Q. Crimson Desert Franchise Strategy
A. Crimson Desert is not a one -off title, but a core flagship IP of our company designed for long –
term growth and expansion. Accordingly, while we remain open to various possibilities —including
add -on content, platform expansion, and sequel titles —our immedi ate development priority is
centered on Crimson Desert DLCs and our next pipeline s.

Regarding the broader Crimson Desert franchise, we will evaluate future development
opportunities in due course as we service the main game and its DLCs, taking into account user
feedback, market conditions, and commercial performance.

Q. China Publishing Approval(Banh ao) Plans
A. Given its market scale, China remains an important market for the gaming industry, and we
continue to monitor and evaluate it closely. However, we currently have no specific plans to apply
for a publishing approval(Banh ao). As we consistently assess opportunities to expand our global
footprint, including China, we will share updates through our official channels if any key decisions
are finalized.

Q. Showcase Plans for Gamescom
A. At this year’s Gamescom, we plan to deliver a presentation focused on our development
experience and technical achievements with our proprietary ‘BlackSpace Engine ’. Through this
session, we aim to showcase our internal development capabilities and technological
competitiveness to the global gaming industry.

Additionally, in collaboration with our partner, we are preparing on -site hands -on demos for
Crimson Desert, offering another opportunity to engage directly with Western users and industry
peers. Specific content details and schedules will be announced in accordance with partner and
event operational timelines.

DokeV

Q. Game Overview
A. DokeV is an open -world action -adventure game featuring a fresh universe and narrative,
designed to offer an experience where us ers explore a vibrant world and grow alongside the
DokeV( Creatures). The game is being developed with a focus on bright, distinct visuals, dynamic
action, exploration, and rich interactive mechanics as its core features. Specific gameplay systems
and content details will be disclosed progressively in line with ou r upcoming marketing schedule.

Q. Development Status and Marketing Strategy (Trailer Reveal & Launch Schedule)
A. DokeV is progressing smoothly by leveraging the development assets and production experience
accumulated from our previous projects. Having moved beyond the foundational system setup, the
project is currently in the phase of expanding content creation and validating the core gameplay
loop.

We are targeting a launch in the second half of 2028, and both information releases and marketing
initiatives will be executed in phases according to our development milestones. Based on our
current progress, we expect to kick off full -scale marketing —incl uding hands -on playable demos
and sequential information reveals —starting in the second half of next year.

Regarding trailer reveals, we are evaluating options within our broader marketing strategy. Rather
than simply advancing the reveal timeline, we believe it is essential to sustain user engagement and
momentum all the way to launch. Learning from past exper ience that releasing content too early
can lead to hype fatigue, we plan to showcase the game at a timing that fully demonstrates its
quality and vision.

Q. Development Headcount and Resource Allocation
A. Since our development staffing is managed flexibly depending on the operational phase of each
project, we are unable to disclose specific headcount numbers. However, as patch operations for
Crimson Desert stabilize, development resources are being progres sively reallocated to DokeV. We
remain fully committed to meeting our targeted launch timeframe of the second half of 2028.

Shareholder Return Policy

Q. Treasury Share Buyback Status
A. On June 9, 2026, our Board of Directors approved a treasury share buyback program valued at
KRW 100 .0 billion, and we subsequently executed a trust agreement to repurchase shares between
June 9, 2026, and December 9, 2026. Share repurchases are being executed flexibly in accordance
with our internal operational plans, taking into account overall market conditions and share price
movements. As of August 10, a total of KRW 3 2.3 billion has been repurchased, representing an
execution rate of 32.3 %.

Q. Treasury Share Cancellation Plans
A. We view treasury share cancellation as a vital mechanism for returning value to our
shareholders. On June 9, 2026, the Board of Directors resolved to cancel 1,403,945 treasury
shares —representing 50% of our existing treasury stock holdings —and the share c ancellation was
successfully completed on June 12.

The scale and timing of any additional share cancellations will be determined by the Board of
Directors following a comprehensive review of our financial position, investment requirements, and
capital allocation strategy. We will communicate further updates to the market as soon as details
are finalized.

Etc

Q. Proprietary Engine Strategy and AI Utilization
A. The ‘BlackSpace Engine ’ represents one of Pearl Abyss’s core technological competitive
advantages. Currently, we are utilizing it internally to strengthen our IP competitiveness rather
than commercializing it externally. In the l ong -term, we plan to leverage the ‘BlackSpace Engine ’ to
build a user -generated content(UGC) ecosystem, creating a platform where us ers and creators
actively participate and grow together.

Additionally, we actively utilize AI technologies to boost development productivity and elevate
product quality. AI is applied across various stages of development —including the automation of
repetitive tasks, content creation support, and QA testing effic iency —and we are expanding its
scope across our entire pipeline. We view AI not as a replacement for human developers, but as a
tool to enhance development efficiency and overall quality. Moving forward, we will continue
expanding our use of AI to deliver higher -quality games to market more rapidly.

Q. Investment and M&A Strategy
A. As part of our long -term growth strategy, we are exploring various opportunities; however, we
approach M&A with prudence, fully considering long -term strategic alignment and its impact on
shareholder value.

Our immediate priority remains focused on developing next -gen titles such as DokeV,
strengthening core IP competitiveness, and advancing our new vision of building a creative
ecosystem. That said, should compelling opportunities arise that deliver concrete value to company
growth and enhance corporate valuation, we remain open to considering strategic investments and
M&A.