Shift Up FY2025 Q2 Earnings Release

2Q25 Results
2025.08.11

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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 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.

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Contents
01. 2Q ‘25 Highlight
02. Financial Results Overview
03. Operating Revenue
04. Operating Expense
05. Operating Profit & Net Profit
06. Q&A
Appendix
· Financial Statements

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01. 2Q ’25 Highlight
All – time best performance 1
since founding
1
marked a new
chapter in AAA game history
2

Successful launch in the Chinese market
Accelerating content growth via frequent
updates around core characters
Successful launch of the PC version

Operating stably , driven by user traffic
Operating revenue 112bn KRW
Footnote: 1Quartetly operating revenue, operating profit; 2Official launch title of in China (official Chinese title / official English title / official Korean title: ); 3Cumulative sales volume of the full -game (excl. DLC); 4Concurrent users on day 2 of the launch; 5Concurrent Users; 5Reviews on the launch day
Firmly established as a global
flagship AAA franchise IP
A) 1 million units sold within 3 days of Steam release
B ) Over 3 million total sales 3 on PS5 and PC combined
A) Nearly 200k 4 peak CCU 5 on Steam, a historic high
B) Overwhelming 98% positive reviews 6 on Steam
Operating profit 68bn KRW

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02. Financial Results
Note : 2025 result is based on preliminary financial information
2Q25 Results
2Q ‘25 revenue 112bn KRW, operating profit 68bn KRW, net profit 51bn KRW
Category 2Q24 3Q24 4Q24 1Q25 2Q25
Diff.
YoY QoQ
Revenue 65,202 58,018 63,490 42,235 112,383 72.4% 166.1%
GoV : NIKKE 38,467 34,231 42,356 32,311 45,112 17.3% 39.6%
Stellar Blade 25,863 22,584 19,615 7,012 65,719 154.1% 837.3%
Others 871 1,202 1,519 2,912 1,552 78.1% -46.7%
Operating Expense 20,195 22,441 17,332 15,983 44,167 118.7% 176.3%
Operating Profit 45,007 35,577 46,157 26,251 68,215 51.6% 159.9%
OPM 69.0% 61.3% 72.7% 62.2% 60.7% -8.3%(p) -1.5%(p)
Non -operating P&L 2,113 (3,754) 24,466 5,395 (5,629) -366.4% -204.3%
Net Profit be. Corp. tax 47,120 31,824 70,623 31,646 62,586 32.8% 97.8%
Net profit 40,260 23,484 59,530 26,846 51,306 27.4% 91.1%
NPM 61.7% 40.5% 93.8% 63.6% 45.7% -16.0%( p) -17.9%(p)
(Unit: M KRW,%)
• Achieved record -high quarterly performance, YoY / QoQ increased by 72.4% / 166.1%

70.6% 63.5%
74.8%
65.4% 61.9%
Note : 2025 result is based on preliminary financial informationFootnote: 1Debuted at No.1 globally in game sales revenue on launch day; 2 vs.
03. Operating Revenue
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EBITDA
46,045 36,852
47,504
27,603
69,529
2Q24 3Q24 4Q24 1Q25 2Q25
(Unit: M KRW, %)
2Q25 Results
2Q ’25 operating revenue 112bn KRW (QoQ +166.1%, YoY +72.4%)
Revenue by IP (Unit: M KRW)
• : Delivered quarterly results in line with the annual plan
➢ [Global] Confirmed favorable user feedback on the ‘UNBREAKABLE SPHERE‘ 2.5 -year anniversary event and x collaboration
➢ [China] Entered the market with strong early performance indicators
• : Set historic benchmark for AAA single -player games in Korea, elevating status of K -games by achieving No.1 in g lobal PC sales 1
➢ Ranked No.1 in Sony (PS) PC performance history by peak concurrent users, exceeding the runner -up by over 2x (192K vs. 77K) 2
➢ Fastest among Korean games to surpass 1 million Steam sales (within 3 days of release); full game sales (excl. DLC) exceeded 3 m illion units across PS5 and PC
38,467 34,231 42,356 32,311 45,112
25,863 22,584 19,615
7,012
65,719
2Q24 3Q24 4Q24 1Q25 2Q25
GoV: Nikke Stellar Blade Others
65,202 58,018 63,490
42,235
112,383

Note : 2025 result is based on preliminary financial informationFootnote : 1Includes wage, incentives, retirement pay, compensation related to stock option; 2Includes transaction fee, etc ; 3Includes amortization, rent, other costs; 4Total headcount including internal directors and interns
04. Operating Expense
Category 2Q24 3Q24 4Q24 1Q25 2Q25 Diff. (YoY) Diff. (QoQ)
Total # of employees 309 314 322 326 340 10.0% 4.3%
Development 276 278 286 290 302 9.4% 4.1%
Directors / Admin. 33 36 36 36 38 15.2% 5.6%
※ # of Employees (quarterly) 4 (Unit: headcount, %)
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Category 2Q24 3Q24 4Q24 1Q25 2Q25 Diff. (YoY) Diff. (QoQ)
Operating Expense 20,195 22,441 17,332 15,983 44,167 118.7% 176.3%
Labor 1 17,198 19,083 9,790 9,845 16,441 -4.4% 67.0%
Variable 2 890 833 4,993 2,307 25,408 2755.9% 1001.0%
Fixed 3 2,107 2,525 2,549 3,831 2,318 10.0% -39.5%
(Unit: M KRW,%)
2Q25 Results
2Q ’25 operating expense 44bn KRW (QoQ +176.3%, YoY +118.7%)
• Labor costs increased by 6.6 bn KRW QoQ, totaling KRW 16.4 billion, driven by incentives for developers
• Variable costs reached 25.4 bn KRW due to increased fees related to
• Fixed costs decreased by 1.5 bn KRW QoQ, as one -time outsourcing expenses from the previous quarter were excluded

Note : 2025 result is based on preliminary financial information
05. Operating Profit / Net Profit
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2Q25 Results
2Q ’25 operating profit 68bn KRW (QoQ +159.9%, YoY +51.6%) / net profit 51bn KRW (QoQ 91.0%, YoY 27.4%)
• Non -operating profit/loss recorded foreign exchange translation losses in 2 nd quarter due to currency depreciation
Category 2Q24 3Q24 4Q24 1Q25 2Q25
Diff.
YoY QoQ
Operating Profit 45,007 35,577 46,157 26,251 68,215 51.6% 159.9%
OPM 69.0% 61.3% 72.7% 62.2% 60.7% -8.3%(p) -1.5%(p)
Non -operating P&L 2,113 (3,754) 24,466 5,395 (5,629) -366.4% -204.3%
Net Profit before
corporate tax 47,120 31,824 70,623 31,646 62,586 32.8% 97.8%
Corporate tax 6,860 8,340 11,094 4,800 11,280 64.5% 135%
Net Profit 40,260 23,484 59,530 26,846 51,306 27.4% 91.0%
NPM 61.7% 40.5% 93.8% 63.6% 45.7% -16%(p) -17.9%(p)
(Unit: M KRW,%)

06. Q&A
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Q.1 : What is the 2Q 2025 performance review of ?
A.1 : In 2Q 2025, the global version of delivered positive quarterly results based on stable user me trics and live service strategies.
successfully entered the Chinese market, contributing to a 17.3% YoY increase in IP revenue, r eac hing KRW 45.1 billion.
The 2.5th anniversary event in April -May and a June collaboration with our IP sustained a solid upward trend in user metrics (MAU). Notably, the
new pickup characters ‘Eve’ and ‘Raven,’ along with a mini -game and story event from the collaboration in June, received strong global user
responses, reaffirming positive cross -IP collaboration feedback.
, officially launched on May 22, 2025, and gradually introduced popular characters such as ‘Dor oth y,’ ‘ Modernia ,’ and ‘Helm,’
securing excellent early user metrics and establishing a foothold in the Chinese market.
Q.2 : What are the expected outcomes for in the second half of 2025?
A.2 : In 2 nd half of 2025, we plan to introduce various new content including seasonal events and a 3rd -anniversary event. Supported by str ong global user
enthusiasm, we are preparing diverse and engaging content updates alongside coordinated marketing efforts, while continuously en hancing the IP and expanding various merchandise sales initiatives.
Entering its third year since launch, is solidifying its position as an evergreen title through s tro nger engagement with players. We will
continue to listen to user feedback and deliver high -quality content, aiming to match last year’s performance in 2 nd half of 2025.

06. Q&A
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Q.1 : What is the performance review of for 2 nd quarter?
A.1 : The PC version of , hailed as the most successful platform expansion in AAA history, launched on June 12 , 2 025. It became the fastest -selling
Korean title on Steam, surpassing 1 million units sold in just three days, securing its place as a flagship AAA IP hit. Conse que ntly, recorded 2Q revenue
of KRW 65.7 billion, a 154.1% YoY increase.
Following the PC release, the game reached nearly 200,000 peak concurrent users on Steam and earned an overwhelmingly positiv e u ser rating (over 98% approval),
confirming its commercial success. Notably, compared to Sony’s flagship AAA titles — Ghost of Tsushima (77K peak Steam CCU), God of War (73K), Spider -Man (66K),
Horizon: Zero Dawn (57K), and The Last of Us (37K) —the PC version of achieved 2 –5×higher results, recording the best -ever PC performance for a
PS -exclusive IP launch.
Following the PS5 success of as a AAA IP, Shift Up leveraged its unique strengths in optimization, user exper ien ce, content enhancements, and market –
specific marketing to continue its success in the PC market —becoming a developer with proven hits across mobile, PC, and console .
Q.2: What are the expected achievements for in the second half of the year?
A.2 : We anticipate sustained enthusiasm for the IP throughout 2H of 2025.
We will continue various activities to strengthen IP popularity and boost sales. Considering the wishlist on Steam, we believe there is still significant unmet demand for
, which supports steady ongoing sales.

06. Q&A
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Q.1 : What is the current preparation status of ? What is the schedule for market communication?
A.1 :In June 2025, we unveiled the first illustrations of and launched developer recruitment, actively seeki ng top talent in the industry.
The game is under development targeting a post -2027 launch (including 2027), with plans to communicate development direction and strategic
positioning in the 2 nd half of this year.
We appreciate the attention and excitement from users and fans toward Shift Up’s new project, .
Q.2 : What is the future direction of your shareholder return policy?
A.2 : We plan to develop shareholder return strategies that genuinely increase shareholder value, following a thorough review of government policy shifts and
market outlooks.
With sustainable shareholder return policies as our foundation, we strive to live up to the trust our shareholders have given us .

Appendix: Financial Statements (Condensed)
12 Note : 2025 result is based on preliminary financial information
2Q25 Results
Balance Sheet
Category 2Q24 3Q24 4Q24 1Q25 2Q25
Revenue 65,202 58,018 63,490 42,235 112,382
Operating Exp. 20,195 22,441 17,332 15,983 44,167
Operating Profit 45,007 35,577 46,157 26,251 68,215
Non -operating
Revenue 2,843 3,640 23,927 9,458 8,165
Non -operating
Expense 730 7,394 (539) 4,063 13,794
Net Profit bef.
Corporate Tax 47,120 31,824 70,623 31,646 62,586
Corporate Tax 6,860 8,340 11,094 4,800 11,280
Net Profit 40,260 23,484 59,530 26,846 51,306
(Unit: M KRW) (Unit: M KRW)
Category 2024 2Q25
Assets 803,832 886,012
Current Assets 768,172 824,454
Non -current Assets 35,660 61,558
Liabilities 39,428 92,894
Current Liabilities 28,586 81,131
Non -current Liabilities 10,842 11,763
Stockholders’ Equity 764,404 793,117
Capital Stock 11,667 11,756
Capital Surplus 527,437 531,187
Retained Earnings 219,071 297,223
Other Comprehensive
Income (51) (51)
Capital Adjustment 6,281 (46,998)
Total Equity & Liabilities 803,832 886,012
Income Statement