KRAFTON FY2025 Q1 Earnings Release

FY2025 1Q Earning Results
2025. 4. 29.

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

PUBG IP Franchise ,
Shaping the future with fans
Head of PUBG IP Franchise & PUBG STUDIOS, TS Jang

4
PUBG IP Franchise 의 성장과 미래
4
A Franchise Cherished by Fans
Across Generations and Regions for Years to Come

5
PUBG 2.0, Evolving to a Gameplay Platform
Core Services
5
IP Collaboration for Cultural Experiences Synergies by Sharing Core Content
Investing in Content and Evolution of Services for All Fans
Delivering Cultural Experiences
including Music, Cars, Fashion
Core Content including Maps, Modes
to be Shared Among the Franchise Titles
PC and Mobile Titles Sharing Content and Production Expertise Invest in relevant content that connects the IP with fans
IP beloved by Western Players and New Generations
PUBG
PC
Core Enhancement (UE5 Update)
Gameplay Diversification (Well -made Modes)
Community Engagement (UGC Beta Service )
Gameplay
Platform

6
New Titles
6
Production
“Repeated Trials ”
through Rigorous
Validation and Testing
Expanding to Different
Genres, Platforms, Regions
Incubating
Diverse
Genre
Console
& Mobile
Emerging
Markets
Console
Battle Royale
Valor
Top -Down
Tactical
Shooter
Blindspot
Driving Franchise Growth with New Titles Across Diverse Genres, Platforms, and Regions
Extraction
Shooter
Black Budget
New Titles for
Potential Fans

7
Evergreen IP
7
Belief of Contributing to KRAFTON’s Growth
Commitment to Deliver the Unique Fun of PUBG to Fans
evergreen IP
7

FY2025 1Q Highlights
CFO, Dongkeun Bae

1Q25
Highlights
Revenue KRW 874.2 bn
Operating
profit
1M+ Copies Sold
All core PUBG IP 1)services grew YoY, driving record
high quarterly revenue with a 31.3% YoY increase
Record high quarterly operating profit driven by
strong revenue growth, increasing 47.3% YoY
1 million copies sold within 7 days of Early Access,
Publishing strategy for a long -term sustainable IP
Krw 457.3 bn
9 1) PUBG PC/Console, PUBG Mobile, BGMI
Early Access on March 28 th

310.5 332.1 324.4
215.5
457.3
1Q24 2Q24 3Q24 4Q24 1Q25
665.9 707.0 719.3 617.6
874.2
1Q24 2Q24 3Q24 4Q24 1Q25
1Q Earnings Summary
(Unit: KRW bn) 1Q 2024 4Q 2024 1Q 2025 YoY QoQ
Revenue 665.9 617.6 874.2 31.3% 41.6%
PC 243.7 232.6 323.5 32.8% 39.1%
Mobile 402.3 362.2 532.4 32.3% 47.0%
Console 11.5 12.3 13.1 14.2% 6.7%
Others 8.4 10.5 5.2 -39.2% -50.8%
Operating Expenses 355.4 402.1 416.9 17.3% 3.7%
Operating Profit 310.5 215.5 457.3 47.3% 112.2%
% Margin 46.6% 34.9% 52.3% 5.7%p 17.4%p
Adj. EBITDA 1) 378.5 253.4 505.1 33.4% 99.3%
% Margin 56.8% 41.0% 57.8% 0.9%p 16.7%p
Net Profit 348.6 491.2 371.5 6.6% -24.4%
% Margin 52.4% 79.5% 42.5% -9.9%p -37.0%p
1) Adj. EBITDA = EBITDA + Share -based Payment Expenses
Operating Profit Revenue Net Profit
10
(Unit: KRW bn) (Unit: KRW bn) (Unit: KRW bn)
Record high operating profit driven by strong revenue growth,
increasing 47.3% YoY and 112.2% QoQ
Revenue KRW 874.2bn
Record high quarterly revenues driven by growth across PC, Mobile,
and Console platforms, increasing 31.3% YoY and 41.6% QoQ
Operating Profit KRW 457.3bn
348.6 341.4
121.4
491.2
371.5
1Q24 2Q24 3Q24 4Q24 1Q25

11
inZOI Early Access
11
Successful Early Access Launch Demonstrating Potential as a New Global Long -term IP
Targeting a New Global Long -term IP
Mid -Term Goal
• Increasing share within the genre through
growing the fanbase
• Delivering new experiences with AI and Mods
• Discovering new sustainable business models
Short -Term Goal
• #1 on Steam Wishlists and positive user feedback
• Early Access in just 2 years of development
and delivering continuous updates
• Visibility as a globally influential new IP
Long -Term Goal
• Accomplishing the Community Snowball
Publishing Strategy
• Scale -up efforts with the global community
• Growing as KRAFTON’s Big Franchise IP
Community Snowball Publishing Strategy
Early Access Phase
• Community building with discord and influencers
• Building trust and strengthening fandom through
timely communication and reflecting user feedbacks
Official Launch Phase
• Community care and continuous game updates
• Messages on official launch and console platform
launch planned in 2026

12
Strategic Titles for 2025
12
Genre
Platform
Extraction RPG
Mobile
Genre
Platform
Underwater Survival Adventure
PC / Console
Genre
Platform
Frontier Life Simulation
Multi -platform
• A spin -off title ‘Dinkum Together’
• Multi -platform strategy with enhanced art
style and gameplay from the original
• Franchise strategy by strengthening IP and
community expansion
• Early Access on PC and Console in 2025
• Xbox Game Pass partnership during Early
Access
• Expanding the series with co -op gameplay
and enhanced deep -sea exploration
• #4 on Steam Wishlists (as of April 29th)
• Extraction RPG combining battle royale
survival, dungeon crawling, and RPG
• Aim to Popularize Extraction RPG through
optimized gameplay, visuals, specs, and
technology for the global market
• Global launch as an original IP
Establishing Optimized Strategies for Development and Publishing
• The solo -developed Dinkum original
sold 1M+ copies during Early Access
• Publishing rights transferred to
KRAFTON on February 12th, followed by
Official Launch on April 23rd
• Console platform launch within 2025
Genre
Platform
Frontier Life Simulation
PC (Steam) / Console
Project AB

13
AI
13
Revolutionizing Gameplay Experience by Applying Advanced AI Technology
Prompt -based Zoi Customization Autonomous reasoning and actions based on rationale
SLM 1)powered on -device CPC 2), expanding language support and improving performance
Smart Zoi & Zoi Pen AI Features in Development
AI Architecture
1) SLM (Small Language Model): Compact language model optimized for game clients2) CPC (Co -Playable Character): An AI companion that interacts with users, equipped with the ability to interact and cooperate w ith users, and respond to game situations in a human -like manner
AI Motion

14
India
14
Strengthening Position as a Publisher in India through Growth of BGMI and Investments
Mahindra Collaboration
• Co -marketing anew EV model with alocal Indian brand
• Launching in -game vehicle skins and out -game events
• Record high revenue among all local Indian collaborations
Localized Indian Contents for BGMI Strengthened Publishing Strategy in India
Nautilus Mobile & Real Cricket IP Acquisition
• Securing the leading mobile game IP of Cricket in India
• Real Cricket has achieved 250 M+ downloads and 10 M+ MAU
• Aiming to grow Cricket games with the expertise of Nautilus Mobile

336.4 358.8 350.9 242.9
487.1
42.1 35.2 14.5
10.5
17.9
1Q24 2Q24 3Q24 4Q24 1Q25
EBITDA 주식보상비용
310.5 332.1 324.4
215.5
457.3
1Q24 2Q24 3Q24 4Q24 1Q25
355.4 374.9 394.9 402.1 416.9
1Q24 2Q24 3Q24 4Q24 1Q25
Operating Expenses & Profit
Operating Expenses
Operating Profit
1Q25 KRW 416.9bn (YoY 17.3% ↑, QoQ 3.7% ↑)
(Unit: KRW bn) 1Q 2024 4Q 2024 1Q 2025 YoY QoQ
Operating Expenses 355.4 402.1 416.9 17.3% 3.7%
Personnel 121.4 132.7 148.4 22.2% 11.9%
Platform Fees / Cost of Revenue 1) 85.9 84.8 105.0 22.3% 23.8%
Paid Commissions 61.3 97.9 84.1 37.3% -14.0%
Marketing 12.4 37.9 22.9 84.6% -39.5%
Share -based Payment Expenses 42.1 10.5 17.9 -57.4% 70.0%
Others 32.3 38.3 38.6 19.5% 0.8%
Operating Profit 310.5 215.5 457.3 47.3% 112.2%
% Margin 46.6% 34.9% 52.3% 5.7%p 17.4%p
Adj. EBITDA 2) 378.5 253.4 505.1 33.4% 99.3%
% Margin 56.8% 41.0% 57.8% 0.9%p 16.7%p
Adj. EBITDA
1) Platform fees / Cost of Revenue consist of Steam, market commissions, etc.2) Adj. EBITDA = EBITDA + Share -based Payment Expenses
Operating Profit
1Q25 KRW 457.3bn (YoY 47.3% ↑, QoQ 112.2% ↑)
378.5 394.0
253.4
15
365.4
505.1
Increased 17.3% YoY and 3.7% QoQ due to rise in personnel expenses
and platform fees / cost of revenue
Operating Expenses
Increased 47.3% YoY and 112.2% QoQ based on strong revenue growth
(Unit: KRW bn) (Unit: KRW bn) (Unit: KRW bn)

348.6 341.4
121.4
491.2
371.5
1Q24 2Q24 3Q24 4Q24 1Q25
465.3 458.1
196.7
602.6
498.9
1Q24 2Q24 3Q24 4Q24 1Q25
(Unit: KRW bn) 1Q 2024 4Q 2024 1Q 2025 YoY QoQ
Non -Operating Profit 154.8 387.1 41.6 -73.1% -89.3%
Non -Operating Income 189.6 417.3 128.2 -32.4% -69.3%
Other Income 180.7 409.9 122.0 -32.5% -70.2%
Finance Income 8.9 7.4 6.2 -30.0% -16.0%
Non -Operating Expense 34.8 30.2 86.6 148.9% 186.5%
Other Expenses 32.5 27.8 84.0 158.3% 201.6%
Finance Expenses 2.3 2.4 2.6 15.1% 10.2%
Profit Before Income Tax 465.3 602.6 498.9 7.2% -17.2%
Income Tax 116.7 111.4 127.4 9.2% 14.4%
Net Profit 348.6 491.2 371.5 6.6% -24.4%
% Margin 52.4% 79.5% 42.5% -9.9%p -37.0%p
16
Net Profit
Net Profit
1Q25 KRW 371.5bn (YoY 6.6% ↑, QoQ 24.4% ↓)
Increased 6.6% YoY driven by strong operating profit growth,
decreased 24.4% QoQ due to FX effects
Profit before Income Tax Net Profit Non -Operating Profit
(Unit: KRW bn) (Unit: KRW bn) (Unit: KRW bn)

17
Q&A
Head of PUBG IP Franchise
& PUBG STUDIOS
CFO
TS Jang Dongkeun Bae

18
Appendix

15.2%
23.2%
34.5%
38.3% 38.5%
66.1 106.1 178.5 243.7 323.5 4.0 15.0
7.2
11.5
13.1
1Q21 1Q22 1Q23 1Q24 1Q25
PC 콘솔
460.9 523.0 538.7
665.9
874.2
1Q21 1Q22 1Q23 1Q24 1Q25
243.7 191.3 274.3 232.6 323.5
402.3 499.9
425.4
362.2
532.4
11.5 8.8 11.8
12.3
13.1 8.5 7.0 7.8
10.5
5.1
1Q24 2Q24 3Q24 4Q24 1Q25
PC 모바일 콘솔 기타
Revenue Breakdown
(Unit : KRW bn) 1Q 2024 4Q 2024 1Q 2025 YoY QoQ
Revenue 665.9 617.6 874.2 31.3% 41.6%
PC 243.7 232.6 323.5 32.8% 39.1%
Mobile 402.3 362.2 532.4 32.3% 47.0%
Console 11.5 12.3 13.1 14.2% 6.7%
Others 8.4 10.5 5.2 -39.2% -50.8%
Revenue
Revenue Breakdown (by Platform)
PC
1Q PC/Console Revenue Proportion
19
665.9 707.0
617.6
719.3
874.2
Mobile
Console
1Q Revenue Trend
(Unit: KRW bn) (Unit: KRW bn) (Unit: KRW bn)
70.1
185.7
121.1
336.6
255.2
1Q25 KRW 323.5bn (YoY 32.8% ↑, QoQ 39.1% ↑) )
1Q25 KRW 532.4bn (YoY 32.3% ↑, QoQ 47.0% ↑)
1Q25 KRW 13.1bn (YoY 14.2% ↑, QoQ 6.7% ↑)

(KRW bn) FY2024 FY2025
1Q 2Q 3Q 4Q 1Q
Revenue 665.9 707.0 719.3 617.6 874.2
Operating Costs 355.4 374.9 394.9 402.1 416.9
Operating Profits 310.5 332.1 324.4 215.5 457.3
Adj. EBITDA 336.4 358.8 350.9 242.9 487.1
Adj. EBITDA 1) 378.5 394.0 365.4 253.4 505.1
Non -Operating Profit 154.8 126.0 (127.7) 387.1 41.6
Other Income 180.7 134.8 (28.3) 409.9 122.0
Other Expenses 32.5 15.7 103.9 27.8 84.0
Finance Income 8.9 9.3 6.8 7.4 6.2
Finance Expenses 2.3 2.4 2.3 2.4 2.6
Profit Before Income Tax 465.3 458.1 196.7 602.6 498.9
Income Tax 116.7 116.7 75.3 111.4 127.4
Net Profit 348.6 341.4 121.4 491.2 371.5
Summary of Financial Statements
Consolidated Income Statement
1) Including FVPL (Fair Value through Profit or Loss) 20
Consolidated Statement of Financial Position
(KRW bn) FY2024 1Q 2025
Assets
Current Assets 5,004.4 5,304.9
Cash and Cash Equivalents 1) 3,772.0 4,210.6
Others 1,232.4 1,094.3
Non -current Assets 2,915.0 3,042.2
Property and equipment 239.7 330.8
Intangibles 656.2 678.2
Investment in Associates 722.0 742.1
Others 1,297.1 1,291.1
Total Assets 7,919.4 8,347.1
Liabilities
Current Liabilities 784.8 825.1
Non -current Liabilities 305.5 328.0
Total Liabilities 1,090.3 1,153.1
Equity
Shareholders’ equity 6,827.8 7,191.4
Paid -in Capital 4.9 4.9
Capital Surplus 1,477.8 1,478.9
Other Components of Equity 263.7 254.1
Retained Earnings 5,081.4 5,453.5
Non -controlling Interests 1.3 2.6
Total Equity 6,829.1 7,194.0