Netmarble FY2024 Q3 Earnings Release

Nov, 2024 3Q 2024 Earnings Results
Nov. 7th, 2024

DISCLAIMER
1
The financial information included in this document are consolidated earnings results based on K -IFRS.
The “financial results for 3Q 2024” for Netmarble (the “Company”) contained in this document have been provided for investors co nvenience only and have not been
audited by an independent auditor. Therefore, certain part(s) of this document are subject to change upon the audit outcome.
This document contains “forward -looking statements” –that is, statements related to future, not past, events. In this context, “forward -looking statements” often address
our expected future business and financial performance, and often contain words such as “expects,” “anticipates,” “intends,” “pl ans,” “believes,” “seeks,” or “will.”
“Forward -looking statements” by their nature address matters that are, to different degrees, uncertain. For us, particular uncer tainties which could adversely or positively
affect our future results include the behavior of financial markets, the Company’s strategic actions, unanticipated dramatic dev elopments in our major business conditions,
and numerous other matters at the national and international levels which could affect our financial results.
These uncertainties may cause our actual results to be materially different from those expressed in this document.

25
62
43
151
103
3.9%
9.2% 7.3%
19.3%
15.9%
3Q23 4Q23 1Q24 2Q24 3Q24
631
666
585
782
647
3Q23 4Q23 1Q24 2Q24 3Q24
2
Revenue EBITDA
QoQ 17.2% ▼ YoY 2.6% ▲ QoQ 32.0% ▼ YoY 319.6% ▲
3Q24
EARNINGS
[Revenue] KRW 647.3bn (QoQ 17.2% ▼ / YoY 2.6% ▲ )
[EBITDA] KRW 102.8bn (QoQ 32.0% ▼ / YoY 319.6% ▲ )
– The decreases in revenue and EBITDA were subject to an absence of major game launches in 3Q, etc.
– EBITDA Margin 15.9% (D&A KRW 37.3bn)
(Unit: KRW bn) (Unit: KRW bn)
GAME PORTFOLIO 3Q24 EARNINGS REVENUE BREAKDOWNBY REGION / GENRE MAJOR COST STRUCTURE APPX) CONSOLIDATED FINANCIAL STATEMENTS NEW LINEUPS

3
3Q24
EARNINGS
(22)
19
4
111
66
-3.5%
2.8% 0.6%
14.2%
10.1%
3Q23 4Q23 1Q24 2Q24 3Q24
(28)
(186)
(10)
162
21
-4.5% -27.9% -1.7% 20.8% 3.2%
3Q23 4Q23 1Q24 2Q24 3Q24
(19)
(172)
(0)
170
22
-3.0% -25.8%
-0.1% 21.7% 3.5%
3Q23 4Q23 1Q24 2Q24 3Q24
GAME PORTFOLIO 3Q24 EARNINGS REVENUE BREAKDOWNBY REGION / GENRE MAJOR COST STRUCTURE APPX) CONSOLIDATED FINANCIAL STATEMENTS NEW LINEUPS
[Profit] Operating Profit KRW 65.5bn, Net Profit KRW 20.6bn, Net Profit (Controlling) KRW 22.4bn
– Net profit decreased due to the base effect of disposal profits from held assets in 2Q
Operating Profit Net Profit Net Profit (Controlling) (Unit: KRW bn) (Unit: KRW bn) (Unit: KRW bn)

13%
8% 8%
7%
7%
6%
4%
3%
44%
나 혼자만 레벨업 :
ARISE
마블 콘테스트
오브 챔피언스
잭팟월드 랏차슬롯 캐시프렌지 레이븐 2 일곱 개의 대죄 :
GRAND CROSS
아스달 연대기 :
세 개의 세력
기타
4
GAME
PORTFOLIO
GAME PORTFOLIO 3Q24 EARNINGS REVENUE BREAKDOWNBY REGION / GENRE MAJOR COST STRUCTURE APPX) CONSOLIDATED FINANCIAL STATEMENTS NEW LINEUPS
• Top revenue generators were evenly distributed: Solo Leveling:ARISE 13%,
MARVEL Contest of Champions 8%, Jackpot World 8%, Lotsa Slots 7%,
Cash Frenzy 7%, Raven2 6%, etc.
MARVEL
Contest of
Champions
Jackpot World Lotsa Slots Solo Leveling:
ARISE
Cash Frenzy The Seven
Deadly Sins:
GRAND CROSS
Arthdal
Chronicles:
Three Factions
Raven2 Others

44% 40% 47%
34% 39%
35% 38% 33%
45% 38%
10% 9% 9% 15% 15%
11% 13% 11% 6% 8%
3Q23 4Q23 1Q24 2Q24 3Q24
캐주얼 게임 RPG MMORPG 기타
47% 45% 48% 40% 43%
17% 20% 17% 24% 23%
12% 12% 13% 13% 13%
9% 9% 9% 10% 8%
6% 6% 6% 6% 7%
9% 8% 7% 7% 6%
83% 80% 83%
76% 77%
3Q23 4Q23 1Q24 2Q24 3Q24 5
Revenue Breakdown By Region Revenue Breakdown By Genre
GAME PORTFOLIO 3Q24 EARNINGS REVENUE BREAKDOWNBY REGION / GENRE MAJOR COST STRUCTURE APPX) CONSOLIDATED FINANCIAL STATEMENTS NEW LINEUPS
REVENUE
BREAKDOWN
BY REGION / GENRE
% of
Overseas
Revenue
Others
Japan
South
East Asia
Europe
Korea
North
America
Others
MMORPG
RPG
Casual
Games
Casual Games Others
• The proportion of overseas revenue was 77% (QoQ +1%P) diversified across
N.A. 43%, Korea 23%, Europe 13%, SEA 8%, Japan 7% and others 6%
• Genre portfolio showed diversification across Casual games 39%, RPG 38%,
MMORPG 15% and others 8%

239
(37.9%)
254
(38.1%) 227
(38.8%)
263
(33.6%) 225
(34.7%) 2,249 2,249 34.7%
181
(28.6%)
183
(27.5%) 180
(30.7%)
183
(23.4%) 179
(27.7%) 1,791 27.7% 1,791
146
(23.1%)
128
(19.1%) 102
(17.3%)
144
(18.4%) 105
(16.2%) 16.2% 1,046 1,046
87
(13.8%) 83
(12.5%) 73(12.5%)
82
(10.4%)
73
(11.3%) 732 732 732
653 647
582
671
582
3Q23 4Q23 1Q24 2Q24 3Q24 마케팅비 인건비 지급수수료
지급수수료 인건비 마케팅비 기타 (상각비 포함 )
6
MAJOR COST
STRUCTURE
GAME PORTFOLIO 3Q24 EARNINGS REVENUE BREAKDOWNBY REGION / GENRE MAJOR COST STRUCTURE APPX) CONSOLIDATED FINANCIAL STATEMENTS NEW LINEUPS

[3Q24 Operating Cost] KRW 581.8bn (QoQ 13.3% ▼ / YoY 10.8% ▼ )
Commission Labor Marketing Other (Inc. D&A)
(Unit: KRW bn)
* Proportion to the revenue (%)
※ 3Q24 Other Cost: D&A KRW 37.3bn, Other fees KRW 35.9bn
• Marketing Costs KRW 104.6bn (QoQ 27.2% ▼ / YoY 28.3% ▼)
-Marketing costs decreased QoQ due to the absence of major game launches and efficient execution
• Labor Costs KRW 179.1bn (QoQ 2.0% ▼ / YoY 0.8% ▼)
-Labor costs decreased QoQ as a result of a decline in the number of workforces
• Commission KRW 224.9bn (QoQ 14.5% ▼ / YoY 5.9% ▼)
-Commission decreased QoQ due to a decrease in revenue
Commission Labor Marketing

7
1H25
Korea / MMORPG
RF ONLINE NEXT
Game of Thrones: Kingsroad
Global / Open World Action RPG
Global / Open World RPG
The Seven Deadly Sins: Origin
Global / Action RPG
MONGIL: STAR DIVE Demis Re:Born
Global / Collection RPG
2H25
Seven Knights Re:BIRTH
Global / Turn -based RPG
Korea / MMORPG
The RED (TBD)
Solo Leveling:ARISE
Global / Action RPG
(Steam)
NEW
LINEUPS
GAME PORTFOLIO 3Q24 EARNINGS REVENUE BREAKDOWNBY REGION / GENRE MAJOR COST STRUCTURE APPX) CONSOLIDATED FINANCIAL STATEMENTS NEW LINEUPS
G-Star Lineup PC Mobile Console
Global / Collectible AFK RPG
The King of Fighters AFK
• In 2H24, the release of King Arthur: Legends Rise, and region expansion
of Raven 2 (Taiwan, Hong Kong, Macao) is planned. In 2025, 9 new games including
Game of Thrones: Kingsroad and The Seven Deadly Sins: Origin will be released
• At G -Star 2024, 2 games (Game of Thrones: Kingsroad , MONGIL: STAR DIVE) will be presented

8
Consolidated Income Statement Consolidated Statement of Financial Position
GAME PORTFOLIO 3Q24 EARNINGS REVENUE BREAKDOWNBY REGION / GENRE MAJOR COST STRUCTURE APPX ) CONSOLIDATED FINANCIAL STATEMENTS NEW LINEUPS(KRW bn) 3Q23 4Q23 1 Q2 4 2 Q2 4 3 Q2 4
R e v e n u e 631 666 585 782 647
Commission 239 254 227 263 225
Labor Cost 181 183 180 183 179
Marketing Cost 146 128 102 144 105
Other Costs (exc. D&A) 41 40 34 42 36
E B I TDA 25 62 43 151 103
Margin (%) 3.9% 9.2% 7.3% 19.3% 15.9%
D&A 46 43 39 40 37
O p e r a t i n g I n co m e ( 2 2 ) 19 4 111 66
Margin (%) -3.5% 2.8% 0.6% 14.2% 10.1%
Non-Operating Income&Cost (11) (26) (3) 106 (23)
P r e – t a x P r o fi t ( 3 3 ) ( 7 ) 1 217 42
Tax (5) 178 11 55 22
N e t P r o fi t ( 2 8 ) ( 1 8 6 ) ( 1 0 ) 162 21
N e t P r o fi t ( co n t r o l l i n g ) ( 1 9 ) ( 1 7 2 ) ( 0 ) 170 22
Margin (%) -3.0% -25.8% -0.1% 21.7% 3.5% (KRW bn) 3 Q2 3 4 Q2 3 1 Q2 4 2 Q2 4 3 Q2 4
Cu r r e n t A s s e t s 997 906 1, 211 999 1, 009
Cash and Cash Equivalents 511 430 759 473 529
Accounts Receivable 236 255 221 337 241
Other Current Financial Assets 115 99 114 76 134
Other Current Assets 135 122 117 113 105
N o n – Cu r r e n t A s s e t s 7,775 7, 010 7, 083 7, 031 6, 977
Investment Assets 3,206 2, 996 2, 920 2, 844 2, 906
Intangible Assets 3,687 3, 229 3, 328 3, 375 3, 202
Tangible Assets 426 420 425 422 402
Other Non-Current Assets 456 365 410 390 467
To t a l A s s e t s 8,772 7, 916 8, 294 8, 030 7, 986
Cu r r e n t Li a b i l i t i e s 2,397 1, 906 1, 790 972 993
Accounts Payable 21 32 28 28 26
Short-term Debt 1,684 1, 384 1, 300 407 405
Other Current Financial Liabilities 392 198 189 215 235
Other Current Liabilities 300 292 273 322 327
N o n – Cu r r e n t Li a b i l i t i e s 1,010 931 1, 363 1, 681 1, 725
Other Non-Current Financial Liabilities 838 660 1, 081 1, 402 1, 450
Other Non-Current Liabilities 172 271 282 279 275
To t a l Li a b i l i t i e s 3,407 2, 837 3, 153 2, 653 2, 718
To t a l E q u i t y 5,365 5, 079 5, 141 5, 377 5, 268

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