Shift Up FY2025 Q1 Earnings Release

1Q25 Results
2025.05.12

2
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 co mpleteness 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 the information provided in this material.

3
Contents
01. 1Q ‘25 Highlight
02. Financial Results Overview
03. Operating Revenue
04. Operating Expense
05. Operating Profit & Net Profit
06. Q&A
Appendix
· Financial Statements

4
01. 1Q ’25 Highlight
Consistent performance
of key IPs
1
Growing excitement
with visibility
2

Confirmed strong user preference for original
content, more positive user response in 2nd
collaboration compared to the first

Sustained IP momentum and popularity
prior to PC platform expansion

Pre -registration began in China in January,
CBT in March, pre -registration process on -track

PC launch confirmed for June,
full -scale marketing to follow

External communication on the project
planned to gradually begin from Q2

IP business achievements
begin to expand full -scale
*Official launch title of in China (official Chinese title / official English title / official Korean title: )

5
02. Financial Results
Note : 2025 result is based on preliminary financial information
1Q25 Results
1Q ‘25 revenue 42 bn KRW, operating profit 26 bn KRW, net profit 27 bn KRW
Category 1Q24 2Q24 3Q24 4Q24 1Q25
Diff.
YoY QoQ
Revenue 37,376 65,202 58,018 63,490 42,235 13.0% -33.5%
GoV : NIKKE 36,471 38,467 34,231 42,356 32,311 -11.4% -23.7%
Stellar Blade – 25,863 22,584 19,615 7,012 N/A -64.3%
Others 905 871 1,202 1,519 2,913 221.9% 91.8%
Operating Expense 11,440 20,195 22,441 17,332 15,983 39.7% -7.8%
Operating Profit 25,935 45,007 35,577 46,157 26,251 1.2% -43.1%
OPM 69.4% 69.0% 61.3% 72.7% 62.2% -7.2% -10.5%
Non -operating P&L 3,287 2,113 (3,754) 24,466 5,395 64.1% -77.9%
Net Profit be. Corp.
tax 29,222 47,120 31,824 70,623 31,646 8.3% -55.2%
Net profit 24,700 40,260 23,484 59,530 26,846 8.7% -54.9%
NPM 66.1% 61.7% 40.5% 93.8% 63.6% -2.5% -30.2%
(Unit: M KRW,%)

71.6% 70.6% 63.5% 74.8% 65.4%
Note : 2025 result is based on preliminary financial information
03. Operating Revenue
6
EBITDA & EBITDA margin (%)
26,769
46,045
36,852
47,504
27,603
1Q24 2Q24 3Q24 4Q24 1Q25
(Unit: M KRW, %)
1Q25 Results
1Q ’25 revenue 42 bn KRW (QoQ -33.5%, YoY 13.0%)
• : With original New Year’s content and external IP collaborations, maintained stable MAU ahead of major Q2 events; th e
results align with internal annual plan and expectation
• : Continued IP momentum through Q1 promotions and the release of the DLC trailer
• Expansion of IP businesses (e.g., merchandise sales) began to gain momentum
(Unit: M KRW)
36,471 38,467 34,231 42,456
32,311
25,863
22,584
19,615
7,012
1Q24 2Q24 3Q24 4Q24 1Q25
GoV: Nikke Stellar Blade Others
37,376
65,202
58,018
63,490
42,235
Revenue by IP
2,913

Note : 1 Includes wage, incentives, retirement pay, compensation related to stock option; 2 Includes transaction fee, etc.; 3 Includes amortization, rent, other costs; 2025 result is based on preliminary financial information
04. Operating Expense
Category 1Q24 2Q24 3Q24 4Q24 1Q25 Diff. (YoY) Diff. (QoQ)
Total # of employees 296 309 314 322 326 10.1% 1.2%
Development 265 276 278 286 290 9.4% 1.4%
Directors / Non -dev. 31 33 36 36 36 16.1% –
※ # of Employees (quarterly) (Unit: headcount, %)
7
Category 1Q24 2Q24 3Q24 4Q24 1Q25 Diff. (YoY) Diff. (QoQ)
Operating Expense 11,440 20,195 22,441 17,332 15,983 39.7% -7.8%
Labor Cost 1 9,123 17,199 19,083 9,790 9,845 7.9% 0.6%
Variable Cost 2 686 890 833 4,993 2,308 236.4% -53.8%
Fixed Cost 3 1,631 2,107 2,525 2,549 3,831 134.9% 50.3%
(Unit: M KRW,%)
1Q25 Results
1Q ’25 operating expense 16 bn KRW (QoQ -7.8%, YoY 39.7%)
• Labor cost remained steady at KRW 9.9 billion, similar to the previous quarter
• Variable costs decreased by 53.8% QoQ to KRW 2.3 billion, due to removal of one -off fees from previous quarter such as engine ro yalties
and IP business commissions
• Fixed costs increased by 50.3% QoQ to KRW 3.8 billion, driven by increased content development volume for each IP

Note : 2025 result is based on preliminary financial information
05. Operating Profit / Net Profit
8
1Q25 Results
1Q ’25 operating profit 26 bn KRW (QoQ -43.1%, YoY 1.2%) / net profit 27 bn KRW (QoQ -54.9%, YoY 8.7%)
• Non -operating P&L decreased by 77.9% QoQ to KRW 5.4 billion, due to the reduced impact of FX fluctuations
Category 1Q24 2Q24 3Q24 4Q24 1Q25
Diff.
YoY QoQ
Operating Profit 25,935 45,007 35,577 46,157 26,251 1.2% -43.1%
OPM 69.4% 69.0% 61.3% 72.7% 62.2% -7.2% -10.5%
Non -operating P&L 3,287 2,113 (3,754) 24,466 5,395 64.1% -77.9%
Net Profit before
corporate tax 29,222 47,120 31,824 70,623 31,646 8.3% -55.2%
Corporate tax 4,523 6,859 8,340 11,094 4,800 6.1% -56.7%
Net Profit 24,700 40,260 23,484 59,530 26,846 8.7% -54.9%
NPM 66.1% 61.7% 40.5% 93.8% 63.6% -2.5% -30.2%
(Unit: M KRW,%)

06. Q&A

9
Q.1 : Review of Q1 2025 performance?
A.1 : global service in Q1 2025 recorded 32.3 billion KRW, a 11% YoY decrease. Despite this, user traffic remained stable tha nks to
events such as the January New Year event, second collaboration event in February that received more positive us er response
compared to the first, and the March release of the original character “Brady,” which gained strong support from Western user s. This helped maintain
stable traffic ahead of the 2.5th anniversary and collaboration events. Notably, user traffic growth was part icu larly significant in South
Korea and North America.
Q.2 : Expected global performance of in Q2 2025? (Excluding China)
A.2 : In Q2 2025, the 2.5th anniversary event and a collaboration with our IP Stellar Blade are planned. The ongoing 2.5th an niv ersary event, featuring
interesting and engaging main stories and characters, has already received strong positive responses from users (with the eve nt’ s first week
achieving top iOS rankings: 3rd in South Korea, 3rd in Japan, and 4th in Taiwan). collaboration, uniting our two IPs, will feature
compelling contents and marketing, and we expect strong user support as well as good results.
Compared to the 1.5th anniversary event, we expect a more impactful 2.5th anniversary event and an exciting collaboration bet wee n our IPs to lead
to better performance than last year in Q2. We also aim to achieve annual performance similar to or better than last year’s r esu lts.
Q.3 : Expected performance of in China?
A.3 : We are set for the official launch in China on May 22, in close collaboration with Tencent, a company with extensive ex per ience in both global and
local services. Positive user feedback was confirmed during the CBT, and we are preparing differentiated operational strategi es and localized content
to ensure receives lots of love from Chinese users over the long term. We plan to continue expanding large -scale marketing
efforts locally through both online and offline events, such as Guangzhou’s FireFly ACG and Shanghai’s Utopia Festi , ahead of the official launch.

06. Q&A
10
Q.1 : Review of Q1 performance?
A.1 : Since its release as a PS5 exclusive in April of 2024, continued to perform steadily in Q1 2025; cumula tiv e sales exceeded pre –
launch expectations.
In February, the DLC trailer was revealed during Sony’s State of Play, alongside various promotions. The hyper -realistic figurines of
’s key characters, ‘Eve’ and ‘Taki’, sold out immediately upon pre -order launch. The IP momentum remained strong in Q1, and we plan to
sustain this excitement until the platform expansion in June.
Q.2: PC platform expansion expected performance?
A.2 : The release is scheduled for June 2025. Having successfully established itself as a AAA IP loved by global console gamers, we plan to continue the
momentum in PC market through game optimization, enhanced convenience, additional content, and tailored marketing strategies uni que to Shift Up.
With the official launch of in China approaching, a cross -collaboration between the two IPs is also planned, which we anticipate will
drive strong marketing effects in the Greater China region. The well -prepared DLC is expected to attract attention and expand user base.

06. Q&A
11

Q.1 : What is the current status of and the communication schedule with the market?
A.1 : The game is being developed with a launch target set for 2027, and the development progress is smooth. Starting in Q2 t his year, we will
gradually begin external communication regarding with the capital market and the users.
Q.2 : Any notable remarks in other revenue?
A.2 : We plan to consistently expand our IP business, including merchandise/MD sales, based on our globally recognized high -qual ity IPs.
Both and are expected to see growth in revenue, driven by strong support from global users (reached 2.9 b illion
KRW in Q1 2025, a 222% YoY increase).
Q.3 : What is the background of the share buyback, and what is the future direction of your shareholder return policy?
A.3 : This share buyback is not a one -time event. In addition to the buyback, we are carefully evaluating various methods, inclu ding dividends, and
plan to communicate a mid~long -term shareholder return policy with the capital markets and shareholders in the second half of this year. We are
committed to enhancing shareholder value and will do our best to repay the trust from our shareholders through sustainable gr owt h.

Appendix: Financial Statements (Condensed)
12 Note : 2025 result is based on preliminary financial information
1Q25 Results
Balance Sheet
Category 1Q24 2Q24 3Q24 4Q24 1Q25
Revenue 37,376 65,202 58,018 63,490 42,235
Operating Exp. 11,440 20,195 22,441 17,332 15,983
Operating Profit 25,935 45,007 35,577 46,157 26,251
Non -operating
Revenue 3,643 2,843 3,640 23,927 9,458
Non -operating
Expense 356 730 7,394 (539) 4,063
Net Profit bef.
Corporate Tax 29,222 47,120 31,824 70,623 31,646
Corporate Tax 4,523 6,859 8,340 11,094 4,800
Net Profit 24,700 40,260 23,484 59,530 26,846
(Unit: M KRW) (Unit: M KRW)
Category 2024 1Q25
Assets 803,832 839,127
Current Assets 768,172 803,763
Non -current Assets 35,660 35,364
Liabilities 39,428 48,184
Current Liabilities 28,586 38,008
Non -current Liabilities 10,842 10,177
Stockholders’ Equity 764,404 790,943
Capital Stock 11,667 11,697
Capital Surplus 527,437 529,611
Retained Earnings 219,071 245,917
Other Comprehensive
Income (51) (51)
Capital Adjustment 6,281 3,770
Total Equity & Liabilities 803,832 839,127
Income Statement