Neowiz FY2024 Q4 Earnings Release

Q4 2024 & FY2024 Earnings Results

February 12, 2025

Disclaimer

All financial information contained in this document is based on consolidated K-IFRS.

The matters discussed in this presentation contain forward-looking statements that involved risks and

uncertainties concerning NEOWIZ expected financial information performance as well as strategic and

operational plans.

Actual results may differ from the results predicted, and reported results should not be considered as an

indication of future performance. Therefore NEOWIZ will not be responsible for individual investment

decisions based only on this material.

All information in this presentation is as of February 2025 and NEOWIZ undertakes no duty to update this

information.

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Contents

1.
Quarterly Financial Highlights

2.
Annual Financial Highlights

3.
FY 2024 Business Achievements

4.
FY 2025 Business Objectives

5.
Global Sourcing News

6.
New Pipeline

3

Q4 2024 Revenue KRW 89.7bn, Operating Profit KRW 7.2bn, Net Loss KRW 27.3bn

▪
Operating Profit increased QoQ due to steady performance of main IPs and efficient cost management.

Net Profit continued red due to goodwill impairment loss of consolidated subsidiaries

Q4 2024 Financial Highlights

4

[KRW mn]

Q4 2023

Q3 2024

Q4 2024

YoY

QoQ

Revenue

109,437

93,134

89,749

-18.0%

-3.6%

PC/Console game Revenue

61,589

36,917

37,629

-38.9%

1.9%

Mobile game Revenue

35,776

45,656

43,169

20.7%

-5.4%

Others (Rental, Ads)

12,072

10,562

8,950

-25.9%

-15.3%

Operating Expenses

94,449

86,670

82,537

-12.6%

-4.8%

Operating Profit

14,988

6,464

7,212

-51.9%

11.6%

OPM(%)

13.7%

6.9%

8.0%

-5.7%p

1.1%p

Net Profit Before Income Tax

3,377

1,293

-21,564

TR

TR

Net Profit (Loss)

2,759

-1,399

-27,321

TR

CR

NPM(%)

2.5%

-1.5%

-30.4%

-32.9%p

-28.9%p

Revenue

Q4 2024 Revenue Breakdown

5

[KRW mn]

Revenue Breakdown

Q4 2024 Revenue KRW 89.7bn, YoY 18.0%▼, QoQ 3.6%▼

▪
PC/Console game revenue KRW 37.6bn (-38.9% YoY, 1.9% QoQ) : Steady sales trend of ‘Lies of P’ and official launch of ‘DJMAX RESPECT V’ new DLC

▪
Mobile game revenue KRW 43.2bn (20.7% YoY, -5.4% QoQ) : Decreased QoQ due to revenue decrease of ‘The Legend of Heroes: Gagharv Trilogy’

[Q4 2024 Revenue by Platform]

[Q4 2024 Revenue by Region]

Q4 2024 Operating Expenses KRW 82.5bn, YoY 12.6%▼, QoQ 4.8%▼

▪
Labor Cost : Increased QoQ due to incentives of consolidated subsidiaries

▪
Marketing : Cost-effective marketing expenses

6

[KRW mn]

Q4 2023

Q1 2024

Q2 2024

Q2 2024

Q4 2024

YoY

QoQ

Operating expenses

94,449

82,220

82,269

86,670

82,537

-12.6%

-4.8%

Labor cost

47,127

39,978

39,715

38,182

39,167

-16.9%

2.6%

Variable cost

25,612

22,495

22,512

25,730

23,691

-7.5%

-7.9%

Marketing

11,527

8,341

8,283

10,438

8,045

-30.2%

-22.9%

D&A

5,171

4,208

4,153

4,954

3,960

-23.4%

-20.1%

Others

5,012

7,198

7,606

7,366

7,674

53.1%

4.2%

Q4 2024 Expenses Breakdown

Revenue

FY 2024 Revenue KRW 367.0bn, Operating Profit KRW 33.3bn,

Net Loss KRW 6.7bn

FY 2024 Financial Highlights

7

[KRW mn]

[KRW mn, %]

[KRW mn, %]

Operating Profit

Net Profit (Loss)

FY 2024 Business Achievements – Expand PC/Console Pipeline

Securing pipelines by developing strong storyline & universe based PC/Console titles and global sourcing

▪
Signed global publishing agreement with ‘Zakazane’,

Poland

–
Single-play RPG based in Noir West

–
Oriented towards developing storyline-based games

▪
Strategic Partnership with ‘Wolfeye Studio’, US

–
Retro SF first-person RPG

–
Studio members with strong storytelling skills

▪
5+ PC/Console Projects are on develop/design

–
Developing
‘
Lies of P’ DLC and Sequel

–
‘Life Simulation’, ‘Survival Action Adventure’ projects are on

development stage

▪
Recruited Seungho Jin & Kay Lee, director with strong

narratives

–
Developing new projects with immersive storylines

8

In-House Developments

Global Sourcing

FY 2024 Business Achievements – Fan community enhancement on live titles

Conducting fan-focused service strategy on major live titles

9

Revenue

YoY

+
90
%

최고 순위

23
위

king

Ranking

최고순위

23
위

Active User

YoY

+
241
%

Revenue

+
90
%

YoY

최고 순위

23
위

king

Ranked

10
th

in Taiwan

Active User

+
101
%

YoY

[‘Browndust 2’ on Taipei Game Show Stage]

[‘DJMAX Respect V’ on GES 2024 Opening Party]

▪
‘Browndust 2’ : Continued increase in traffic and revenue, focusing on fan community cares with constant communications

–
Online : Live streaming, special web pages, collaboration with popular anime-based IPs, etc.

–
Offline : Participating global major anime festivals, collaboration with cafe/CVS, official merchandise sales

▪
‘DJMAX RESPECT V’ : Reinforce fan communities by maximizing user experiences through communications and events

–
Live streaming of introducing new/collaboration DLC, offline DJ party, permanent merchandise store, etc.

*Revenue and Active User increase rate: 4Q24 vs 4Q23

FY 2025 Business Objectives

Securing

Story based IP

Fan Community

Accelerating development of

AA+ PC/Console pipelines

Successful launch of ‘Lies of P’ DLC

Reinforcing fan communities of

major live titles

Establishing global offices for

enhancing global fan community

Establish base for IP franchise, focusing on in-house game development and global fan community enhancement

Sourcing global PC/Console game

with strong narratives

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Developing/Sourcing various

games with immersive

storyline and universe

Expand storyline of each games

and enlarge fan community by

releasing sequels

Secure IP with strong fan base

Mid-long Term Business Strategy

Main essence of game business comes from fan community, expanding fan community means revenue growth

Long term growth by launching one or more IP franchises with strong fan community every year

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Series 1

Series 2

Series 3

Series 4

Long term growth by

launching one or more IP series

every year

Project 1

Project 2

Project 3

Project 4

Project 5

Project 6

Global Sourcing News

Strategic Partnership with US PC/Console Dev Studio ‘Wolfeye Studios’

▪
Signed global publishing agreement with Retro Sci-fi first-person action RPG

▪
Strengthening mid long-term PC/Console strategy and expanding pipelines by cooperating with devs having strong fan communities

●
Founded in 2018 / Austin, Texas, USA

●
Co-founded by Raphael Colantonio and Julien Roby, former members of

Arkane Studios, Austin

●
Track Record : ‘Dishonored’ (metacritic 91), ‘Prey’ (metacritic 84)

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New Pipeline

Launching Date

Game

Genre

Platform

Market

In-House/Publishing

FY2025

Shape of Dreams

Rogue-like MOBA

PC(Steam)

Global

Publishing

Lies of P DLC

Souls-like RPG

PC/Console

Global

In-House

Cats & Soup: Magic Recipe

Simulation

Mobile

Global

In-House

Goodbye Seoul: Itaewon

Puzzle Platformer

PC(Steam)

Global

Publishing

The Legend of Heroes: Gagharv Trilogy

Collectible RPG

Mobile

Taiwan/Japan

In-House

Kingdom 2

MMORPG

Mobile

Global

In-House

FY2026 ~

Wolfeye Studios New Project

Retro SF First-person RPG

PC/Console

Global

Publishing

Zakazane Studio New Project

Noir West CRPG

PC/Console

Global

Publishing

Life Simulation New Project

Life Simulation

PC/Console

Global

In-House

Survival Action Adventure New Project

Survival Action Adventure

PC/Console

Global

In-House

Lies of P Sequel

Souls-like RPG

PC/Console

Global

In-House

※ All conditions are subject to change

※ Projects on prototype/design stage are excluded.

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[KRW mn]

Q4 2023

Q1 2024

Q2 2024

Q3 2024

Q4 2024

Current assets

297,611

324,984

306,422

302,822

314,427

Cash & cash equivalents

129,872

132,167

125,367

112,373

111,367

Trade & other receivables

48,286

41,386

42,774

42,444

49,697

Financial assets

111,757

143,906

131,378

141,244

146,532

Other current assets

7,696

7,525

6,903

6,761

6,831

Non-current assets

373,818

368,306

349,662

348,897

304,459

Trade & other receivables

2,847

1,434

1,230

1,213

1,249

Investments in JV and

associates

35,568

34,821

22,577

22,386

22,337

Investment property

29,464

29,316

29,169

29,022

26,657

Tangible assets

86,922

86,265

86,270

85,753

87,493

Intangible assets

149,437

150,183

146,157

136,973

99,599

Financial assets

34,525

31,858

28,804

37,561

36,291

Other non-current assets

35,054

34,429

35,455

35,989

30,833

Total assets

671,429

693,291

656,084

651,719

618,886

Current liabilities

113,217

120,759

74,858

77,491

81,097

Non-current liabilities

30,591

31,675

34,948

34,317

18,607

Total liabilities

143,808

152,433

109,805

111,808

99,704

Controlling interests

489,432

505,617

510,917

505,160

487,321

Capital stock

11,017

11,017

11,017

11,017

11,017

Capital surplus

129,989

129,989

129,989

129,989

129,989

Retained earnings

428,204

441,277

448,438

449,877

420,915

Other components of
equity

(79,779)

(76,666)

(78,527)

(85,722)

(74,600)

Non-controlling interests

38,189

35,240

35,362

34,750

31,861

Total equity

527,620

540,858

546,279

539,911

519,182

Total liabilities and equity

671,429

693,291

656,084

651,719

618.886

[KRW mn]

Q4 2023

Q1 2024

Q2 2024

Q3 2024

Q4 2024

Revenue

109,437

97,064

87,012

93,134

89,749

Operating expenses

94,449

82,220

82,269

86,670

82,537

Operating profit (loss)

14,988

14,844

4,743

6,464

7,212

Financial income

3,681

5,324

4,415

611

10,833

Financial expenses

7,835

2,385

(137)

6,692

4,569

Other income

954

1,912

658

2,922

4,711

Other expenses

7,329

441

3,035

1,820

39,724

Equity method income (loss)

(1,081)

(407)

(271)

(192)

(27)

Profit (loss) before income tax

3,377

18,846

6,646

1,293

(21,564)

Income tax

617

4,508

(1,027)

2,692

5,757

Net profit (loss)

2,759

14,339

7,673

(1,399)

(27,321)

Controlling interests

3,868

17,869

7,791

1,416

(24,588)

Non-controlling interests

(1,109)

(3,530)

(118)

(2,815)

(2,733)

Consolidated Financial Statement

Consolidated Income Statement

Consolidated Financial Statements

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