Neowiz FY2024 Q3 Earnings Release

Q32024EarningsResults

November12,2024

Disclaimer

AllfinancialinformationcontainedinthisdocumentisbasedonconsolidatedK-IFRS.

Themattersdiscussedinthispresentationcontainforward-lookingstatementsthatinvolvedrisksand

uncertaintiesconcerningNEOWIZexpectedfinancialinformationperformanceaswellasstrategicandoperationalplans.

Actualresultsmaydifferfromtheresultspredicted,andreportedresultsshouldnotbeconsideredasanindicationof

futureperformance.ThereforeNEOWIZwillnotberesponsibleforindividualinvestmentdecisionsbasedonlyonthis

material.

AllinformationinthispresentationisasofNovember2024andNEOWIZundertakesnodutytoupdatethisinformation.

2

Contents

1.
QuarterlyFinancialHighlights

2.
QuarterlyRevenueBreakdown

3.
QuarterlyExpensesBreakdown

4.
GlobalSourcingNews

5.
SummaryofFinancialStatements

3

Q32024RevenueKRW93.1bn,OperatingProfitKRW6.5bn,NetLossKRW1.4bn

QuarterlyFinancialHighlights

4

Revenue

[KRWmn]

OperatingProfit

NetProfit

[KRWmn,%]

[KRWmn,%]

Q32024Revenue93.1bn,YoY20.7%▼,QoQ7.0%▲

▪
PC/ConsolegamerevenueKRW36.9bn(-33.1%YoY,-0.9%QoQ):DecreasedQoQduetorevenuedecreaseofpublishingtitlesonSteam

despite‘LiesofP’salesincrease

▪
MobilegamerevenueKRW45.7bn(-13.6%YoY,19.7%QoQ):IncreasedQoQduetosummereventof‘Browndust2’and

officiallaunchof‘TheLegendofHeroes:GagharvTrilogy’

▪
OthersrevenueKRW10.6bn(11.7%YoY,-9.2%QoQ):DecreasedQoQduetoadrevenuedecreaseofsubsidiaryTNKFACTORY

QuarterlyRevenueBreakdown

5

Revenue

[KRWmn]

RevenueBreakdown

[Q32024RevenuebyPlatform]

[Q32024RevenuebyRegion]

Q32024OperatingExpensesKRW86.7bn,YoY10.9%▼,QoQ5.4%▲

▪
LaborCost:DecreasedQoQduetoheadofficepersonneldecrease

▪
VariableCost:IncreasedQoQduetoplatformcommissionfeeof‘BROWNDUST2’and‘TheLegendofHeroes:GagharvTrilogy’

▪
Marketing:IncreasedQoQduetoofficiallaunchmarketingof‘TheLegendofHeroes:GagharvTrilogy’

6

[MillionKRW]

Q32023

Q42023

Q12024

Q22024

Q32024

YoY

QoQ

Operatingexpenses

97,228

94,449

82,220

82,269

86,670

-10.9%

5.4%

Laborcost

39,685

47,127

39,978

39,714

38,182

-3.8%

-3.9%

Variablecost

29,329

25,612

22,495

22,512

25,730

-12.3%

14.3%

Marketing

14,214

11,527

8,341

8,283

10,438

-26.6%

26.0%

D&A

4,975

5,171

4,208

4,153

4,954

-0.4%

19.3%

Others

9,026

5,012

7,198

7,606

7,366

-18.4%

-3.1%

QuarterlyExpensesBreakdown

7

GlobalSourcingNews

SignedglobalpublishingagreementwithZakazaneStudio,Polishgamedeveloper

∎
Warsaw-basedgamedeveloperfoundedin2022

∎
Developershavingstrengthinstorytelling,includingCEOJanBartkowicz

–
Formerdevelopersof‘TheWitcher’series,‘Frostpunk’,‘ThisWarofMine’,etc.

∎
Securedcopyrightofstudio’sfirstPC/Consoletitles

–
Mysteriousstorycenteringaroundasheriffwhoarrivesat

aremoteminingtown

∎
StrategicinvestmentforIPfranchisingandsecuringglobalIP

focusedwithrichnarratives

▪
Single-playPC/ConsoleRPGbasedinNoirWest

▪
Establishmid-longtermpartnershipwithZakazaneondevelopingstoryline-basedgames

▪
Strategicpartnershipsucceeding‘Blank’studioinvestmentforstrengtheningPC/Consolegamecompetitiveness

9

SummaryofFinancialHighlights

[KRWmn]

Q32023

Q42023

Q12024

Q22024

Q32024

Currentassets

300,209

297,611

324,984

306,422

302,822

Cash&cashequivalents

102,194

129,872

132,167

125,367

112,373

Trade&otherreceivables

81,489

48,286

41,386

42,774

42,444

Financialassets

110,421

111,757

143,906

131,378

141,244

Othercurrentassets

6,105

7,696

7,525

6,903

6,761

Non-currentassets

360,856

373,818

368,306

349,662

348,897

Trade&otherreceivables

3,069

2,847

1,434

1,230

1,213

InvestmentsinJVand

associates

14,728

35,568

34,821

22,577

22,386

Investmentproperty

32,208

29,464

29,316

29,169

29,022

Tangibleassets

84,724

86,922

86,265

86,270

85,753

Intangibleassets

158,724

149,437

150,183

146,157

136,973

Financialassets

37,142

34,525

31,858

28,804

37,561

Othernon-currentassets

30,261

35,054

34,429

35,455

35,989

Totalassets

661,066

671,429

693,291

656,084

651,719

Currentliabilities

108,659

113,217

120,759

74,858

77,491

Non-currentliabilities

30,315

30,591

31,675

34,948

34,317

Totalliabilities

138,974

143,808

152,433

109,805

111,808

Controllinginterests

481,285

489,432

505,617

510,917

505,160

Capitalstock

11,017

11,017

11,017

11,017

11,017

Capitalsurplus

129,989

129,989

129,989

129,989

129,989

Retainedearnings

424,462

428,204

441,277

448,438

449,877

Othercomponentsof
equity

(84,183)

(79,779)

(76,666)

(78,527)

(85,722)

Non-controllinginterests

40,807

38,189

35,240

35,362

34,750

Totalequity

522,092

527,620

540,858

546,279

539,911

Totalliabilitiesandequity

661,066

671,429

693,291

656,084

651,719

[KRWmn]

Q32023

Q42023

Q12024

Q22024

Q32024

Revenue

117,475

109,437

97,064

87,012

93,134

Operatingexpenses

97,228

94,449

82,220

82,269

86,670

Operatingprofit(loss)

20,247

14,988

14,844

4,743

6,464

Financialincome

3,222

3,681

5,324

4,415

611

Financialexpenses

1,307

7,835

2,385

(137)

6,692

Otherincome

210

954

1,912

658

2,922

Otherexpenses

144

7,329

441

3,035

1,820

Equitymethodincome(loss)

45

(1,081)

(407)

(271)

(192)

Profit(loss)beforeincometax

22,272

3,377

18,846

6,646

1,293

Incometax

4,119

617

4,508

(1,027)

2,692

Netprofit(loss)

18,153

2,759

14,339

7,673

(1,399)

Controllinginterests

18,673

3,868

17,869

7,791

1,416

Non-controllinginterests

(520)

(1,109)

(3,530)

(118)

(2,815)

ConsolidatedFinancialStatement

ConsolidatedIncomeStatement