Shift Up FY2024 Q4 Earnings Release

4Q24 & FY2024
Results
2025.02.10

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Disclaimer
This material is not intended to be a solicitation of investment by investors, but rather to enhance investors’ understanding an d
provide information that may be useful in making investment decisions.
Although this material has been prepared on an objective basis, certain plans, estimates, projections, forecasts and other ma tte rs
may contain expressions of subjective judgment and may differ from actual results in the future, and we cannot guarantee the
accuracy and completeness of the financial and operating results described.
Please also note that we do not undertake any obligation to update the facts as of the date hereof.
Accordingly, this material should not be used for any legal purpose and should not be relied upon by investors as to the outc ome of
their investment, and we do not accept any responsibility or liability for any investment results arising from reliance on th e
information provided in this material.

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Contents
01. FY2024 Review
02. ‘24 4Q Highlight
03. ‘24 4Q Results Overview
A. Revenue
B. Operating Costs
C. Operating Profit & Net Profit
04. Q&A
Appendix
· Financial Statements

The subculture market in ’24, where competition has become fiercer,
Built solid market position with unique charm of ,
confirmed the potential for long -term success
With receiving immense love from players worldwide,
Established itself as global AAA IP, and formed strong fandom
• 1.5 year LAST KINGDOM & 2 year anniversary OLD TALES
• Summer event BEAUTY FULL SHOT, Winter ICE DRAGON SAGA
• 1H24 collab., 2H24 collab. &
collab., active IP collaborations throughout FY24
Since release in April, maintained 9.2 Metacritic user score
Continued content updates like a live -service game
• Ranked #1 pre -order in 62 countries
• After launch, ranked #1 sales in major console markets
such as US, UK, and Japan
• Maintained PlayStation store score of 4.8/5.0
• Boss challenge, new skins & costumes, photo mode,
multilingual dubbing, etc.
• collaboration DLC released in 2H ‘24
Continued love for the IP in offline
• Enhanced user engagement and verified users’ love for the IP
with anniversary event in Japan, Tokyo Game Show, Anime
Expo in US, pop -up store at THE HYUNDAI, and AGF in Korea
• Expanded IP business such as merchandise sales
Successful major updates
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Jan ‘24
NEW YEAR,
NEW SWORD
March ‘24
Re:CIPE
FOR YOU
April ‘24
LAST
KINGDOM
July ‘24
BEAUTY FULL
SHOT
July ‘24
AEGIS THE
DIVER
Aug ~ Sept ‘24
YOU CAN (NOT)
EVADE
Nov ‘24
OLD
TALES
Dec ‘24
ICE DRAGON
SAGA
Countless stories and memories with the 「Commander 」 in ‘24
[2024 Major Updates]
New Year IP Collab. 1.5 th year
Anniversary Summer Event IP Collab. IP Collab. 2nd year
Anniversary Winter Event
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Outstanding accomplishments as a global AAA IP
• Grand Award
• Best Planning / Scenario
• Best Sound
• Best Graphics
• Best Character Design
• Popular Game Award
• Excellent Developer Award
(Hyung -Tae Kim)
• Users’ Choice Award • Special Award
• Best Action Game • Best Score and Music
• Best New Character (Eve)
• Best Use of DualSense
• Studio of the Year
• Best Story
• Best Soundtrack
• Best Audio Design
• Best PS5 Game
• Best Graphical Showcase
• Game of the Year (GOTY) • Best Soundtrack
• Best Korean Game
• Game of the Year (GOTY)
• Person of the Year
(Hyung -Tae Kim)
• Action Game of the Year
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• New Intellectual Property

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Thriving 2 nd year anniversary ,
stable user metrics

Global fandom established,
continued fan’s heart and
sales in 4Q
Revenue 59 bn KRW
Operating Profit 42 bn KRW
OP Margin 71%
Industry -leading
profitability even while
developing new titles
Continued Love
for the IPs
01.
Rising Anticipations
for Growth
03.
Outstanding
Financial Results
02.

Upcoming market entry in
China (Ongoing preregistration)

Upcoming platform
expansion
4Q ’24 Highlight

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Financial Results
사업현황
Note : 2024 result is based on preliminary financial information
4Q ‘24 revenue 59 bn KRW, operating profit 42 bn KRW, net profit 54 bn KRW
Category 4Q23 3Q24 4Q24
Diff.
YoY QoQ
Revenue 45,818 58,018 59,258 29.3% 2.1%
GoV : NIKKE 45,410 34,231 43,899 -3.3% 28.2%
Stellar Blade – 22,584 14,348 N/A -36.5%
Others 408 1,202 1,011 147.7% -15.9%
Operating Expense 13,431 22,440 17,196 28.0% -23.4%
Operating Profit 32,387 35,577 42,062 29.9% 18.2%
OPM 70.7% 61.3% 71.0% 0.3% 9.7%
Non -operating P&L (1,335) (3,754) 22,290 1,769.7% 693.8%
Net Profit be. Corp. tax 31,052 31,824 64,353 107.2% 102.2%
Net profit 32,618 23,484 54,168 66.1% 130.7%
NPM 71.2% 40.5% 91.4% 20.2% 50.9%
(Unit: M KRW,%)
FY2023 FY2024
Diff.
YoY
168,594 219,853 30.4%
164,836 153,069 -7.1%
– 62,795 N/A
3,758 3,989 6.1%
57,532 71,272 23.9%
111,063 148,582 33.8%
65.9% 67.6% 1.7%
3,287 23,937 628.3%
114,349 172,518 50.9%
106,691 142,611 33.7%
63.3% 64.9% 1.6%
• Recorded the highest annual revenue and operating profit in ’24, with 30% / 34 % YoY increase respectively
4Q ‘24 Results

72% 72% 71%
64%
73% 71% 70%
Note : 2024 result is based on preliminary financial information
Operating Revenue
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4Q ‘24 revenue 59 bn KRW (QoQ 2.1%, YoY 29.3%) / EBITDA 43 bn KRW (QoQ 17.8%, YoY 30.9%)
• maintained stable user traffic (MAU) with successful 2 nd anniversary event
• experienced continued love for the IP with DLC release and promotions in 4Q
EBITDA & EBITDA margin (%)
33,160 26,769
46,045
36,851 43,409
4Q23 1Q24 2Q24 3Q24 4Q24
Unit: M KRW, %)
34,231 38,467 34,23134,231
119,038
FY2023 FY2024 FY2023 FY2024
153,074
Revenue
(Unit: M KRW)
34,231 38,354 36,471 38,467 34,231 38,354 36,471 34,231
45,410 36,471 38,467 34,231
43,899
25,863
22,584
14,348
4Q23 1Q24 2Q24 3Q24 4Q24
GoV: Nikke Stellar Blade Others
45,818
37,376
65,202
58,018 59,258
FY2023 FY2024
219,853
168,594
FY2023 FY2024
4Q ‘24 Results

Note : 1 Includes wage, incentives, retirement pay, compensation related to stock option; 2 Includes transaction fee, etc.; 3 Incl ude s amortization, rent, other costs; 2024 result is based on preliminary financial information
Operating Expense
Category 4Q23 1Q24 2Q24 3Q24 4Q24
Diff.
YoY QoQ
Total # of employees 289 296 309 314 322 11.4% 2.5%
Development 255 265 276 278 286 11.3% 2.9%
Directors / Non -dev. 34 31 33 36 36 12.5% 0.0%
※ # of Employees (quarterly) (Unit: headcount, %)
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4Q ‘24 operating expense 17 bn KRW (QoQ -23.4%, YoY 28.0%)
• Labor costs decreased by 49% QoQ, totaling 9.8 billion KRW, due to the absence of incentive payment
• Variable costs amounted to 4.4 billion KRW, including expenses such as game engine royalty fees and IP business fees
Category 4Q23 3Q24 4Q24 Diff.
YoY QoQ
Operating Expense 13,431 22,441 17,196 28.0% -23.4%
Labor Cost 1 10,933 19,083 9,790 -10.5% -48.7%
Variable Cost 2 877 833 4,406 402.4% 428.9%
Fixed Cost 3 1,621 2,525 3,000 85.1% 18.8%
(Unit: M KRW,%)
FY2023 FY2024
Diff.
YoY
57,532 71,272 23.9%
48,645 55,195 13.5%
5,058 6,814 34.7%
3,829 9,263 141.9%
4Q ‘24 Results

Note : 2024 result is based on preliminary financial information
Operating Profit / Net Profit
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• Non -operating income (P&L) amounted to 22 billion KRW due to an increase in financial income, including foreign exchange
translation gains for the quarter
Category 4Q23 3Q24 4Q24
Diff.
YoY QoQ
Operating Profit 32,387 35,577 42,062 29.9% 18.2%
OPM 70.7% 61.3% 71.0% 0.3% 9.7%
Non -operating
P&L (1,335) (3,754) 22,290 1,769.7% 693.8%
Net Profit before
corporate tax 31,052 31,823 64,353 107.2% 102.2%
Corporate tax (1,567) 8,340 10,185 -750.2% 22.1%
Net Profit 32,618 23,484 54,168 66.1% 130.7%
NPM 71.2% 40.5% 91.4% 20.2% 50.9%
FY2023 FY2024
Diff.
YoY
111,063 148,582 33.8%
65.9% 67.6% 1.7%
3,287 23,937 628.3%
114,349 172,518 50.9%
7,659 29,907 290.5%
106,691 142,611 33.7%
63.3% 64.9% 1.6%
4Q ‘24 operating profit 42 bn KRW (QoQ 18.2%, YoY 29.9%) / net profit 54 bn KRW (QoQ 130.7%, YoY 66.1%)
4Q ‘24 Results

06. Q&A

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Q.1 : What are the reviews of 4Q ‘24 and FY24 for ?
A.1 : Throughout 2024, was operated steadily, thanks to the passionate support of our commanders (users). In 2024, many major subculture ga mes were
released, making the competition extremely fierce. As a result, some major games experienced a decline in user interest. Howe ver , continued to receive
consistent love, based on its unique charm. Additionally, we were able to confirm the potential for long -term success through us er reactions and interest. All of us at Shift Up
are deeply grateful and will continue to fulfill the needs of our users with responsibility. However, there were some updates in 2024 that did not meet expectations, and we
plan to address these shortcomings and improve upon them in 2025.
The global performance of 4Q 2024 recorded 43.9 billion KRW, a 28% increase QoQ (34.2 billion KRW), thanks to the successful execution of key eve nts such as
the 2nd anniversary event.
Q.2 : What are the expected results of in 2025?
A.2 : In 2025, for the global , we plan to continue maintaining strong user metrics by offering more meticulously prepared content and actively eng agi ng with
users, building on the love and attention received, and keeping a stable user base. Accordingly, we aim for performance resul ts that are either on par with or better than
those of 2024. Additionally, we are preparing to expand into new regions such as China, working closely with an outstanding p ubl isher with extensive experience, and we are
expecting strong results.

06. Q&A
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Q.1 : What are the reviews of 4Q ‘24 and FY24 for ?
A.1 : Released as a PS5 exclusive title in April 2024, Stella Blade has received great love from global gamers and successful ly established itself as a AAA IP in the market.
Despite being a narrative -based single -player game with a defined ending, it has been continuously updated like a live -service g ame, and has steadily built a strong global
fandom for the Stella Blade IP.
In 4Q of 2024, performance improvement updates targeting the PS5 Pro, a collaboration with , and Black Friday promotions were carried out, resulting in
steady sales and the continued maintaining of the IP’s momentum.
Q.2: What are the expected results of PC version, and why?
A.2 : In the AAA game market, PC devices have a higher market share than consoles, so we expect the performance of the PC ver sio n to exceed that of the console version.
We are particularly observing trends such as the significant expansion of the single -player action game market in the Asian gami ng industry.
We have identified and analyzed both successful and underperforming cases of console exclusives released on PC, and we are pr epa ring to release the game in a way that
ensures continued success in the PC market. This will include optimization, enhancing user convenience, adding supplementary con tent, and tailored marketing strategies
unique to Shift Up. In particular, we plan to optimize the game to ensure smooth gameplay even in UMPC (Steam Deck) environme nts .

06. Q&A
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Q.1 : What are the progress of ? What are the plans for communication with the market?
A.1 : We are developing the game with the goal of launching after 2027. We plan to reveal new information about in the first half of this year, creating an
opportunity for the market and users to explore exciting details, including the general concept of the game.
Q.2 : Are there any notable items in variable costs?
A.2 : We are utilizing external development engines and other resources to efficiently and reliably develop high -quality games. We also plan to gradually expand our IP
business, including merchandise and MD sales. In the fourth quarter of 2024, the variable costs included the engine royalty s ett lement for ’s ‘24 annual sales
revenue, and the IP business -related fees increased compared to the previous quarter.

Q.3 : What is the status of number of employees and the recruitment plan for the future?
A.3 : As of the end of December 2024, our total workforce is 322, with approximately 90% of them being developers. We are exp ect ed to expand up to approximately
400 -420 people (number of total workforce), primarily recruiting for the development of our new project (Project Witches) by the end of 2025, and we will continue to recruit
and nurture talented developers.

Appendix: Financial Statements (Condensed)
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Balance Sheet Income Statement
Category 2023 1Q24 2Q24 3Q24 4Q24 2024
Revenue 168,594 37,376 65,202 58,018 59,258 219,853
Operating Exp. 57,532 11,440 20,195 22,441 17,196 71,272
Operating Profit 111,063 25,935 45,007 35,577 42,062 148,582
Non -operating
Revenue 7,624 3,643 2,843 3,640 23,938 34,064
Non -operating
Expense 4,337 356 730 7,394 1,648 10,127
Net Profit bef.
Corporate Tax 114,349 29,222 47,120 31,823 64,353 172,518
Corporate Tax 7,659 4,523 6,859 8,340 10,185 29,907
Net Profit 106,691 24,700 40,260 23,484 54,168 142,611
(Unit: M KRW ) (Unit: M KRW )
4Q ‘24 Results
Note : 2024 result is based on preliminary financial information
Category 2023 2024
Assets 203,918 801,667
Current Assets 177,201 766,057
Non -current Assets 26,717 35,610
Liabilities 22,860 40,410
Current Liabilities 11,199 29,568
Non -current Liabilities 11,661 10,842
Stockholders’ Equity 181,058 761,257
Capital Stock 9,916 11,667
Capital Surplus 95,896 529,652
Retained Earnings 71,097 213,709
Other Comprehensive
Income (53) (51)
Capital Adjustment 4,202 6,281
Total Equity & Liabilities 203,918 801,667