1 st Quarter of 2019 Financial Results May 10, 2019 Disclaimer - PowerPoint PPT Presentation

GAMEVIL’s 1 st Quarter of 2019 Financial Results May 10, 2019

Disclaimer Some content may reflect forward -looking statements and have been prepared based on the expectations according to the dates on which these statements were made. There can be no assurance that the forward-looking statements used by GAMEVIL are correct as results can differ from expectations. Therefore GAMEVIL will not be responsible for individual investment decisions based solely on this material. GAMEVIL disclaims any duty to update the information in this material to reflect future events or circumstances

1. Performance Overview [Sales] FY19 1Q sales 28.7B KRW (Q-Q 30% ▼ , Y-Y 22% ▲ ) - Growth of over 20% y-y due to operation of major games [Profit] FY19 1Q operating loss 4.1B KRW (Q-Q 360% ▼ , Y-Y 29% ▲ ), Net profit 4.3B KRW (Q-Q Turnaround, Y-Y 16% ▲ ) - y-y operating profit deficit reduced [Unit : M KRW ] [Unit : M KRW ] 매출액 2018.1Q 2018.4Q 2019.1Q QoQ YoY 41,326 28,730 Sales 23,609 41,326 28,730 -30% 22% 23,609 Operating Profit -5,817 -896 -4,122 -360% 29% '18.1Q '18.4Q '19.1Q OP(%) -25% -2% -14% 7,094 5,168 Earning before 4,265 3,152 7,094 5,168 -27% 64% 3,692 tax 3,152 Turn Net profit 3,692 -5,896 4,265 16% around '18 1Q '18 4Q '19 1Q -896 NP(%) 16% -14% 15% -4,122 -5,817 -5,896 3

2. Sales breakdown [Sales breakdown by region] FY19 1Q Domestic sales 11.0B KRW (Q-Q 19% ▼ , Y-Y 3% ▲ ) FY19 1Q International sales 17.7B KRW (Q-Q 36% ▼ , Y-Y 37% ▲ ) - Both domestic and international sales have increased due to strong performance of major games. Proportion of Domestic and International sales [Unit : M KRW ] [Unit : %] 국내 비중 해외 비중 ’18.1Q ’18.4Q ’19.1Q Q-Q Y-Y Sales 23,609 41,326 28,730 -30% 22% 55% 62% Domestic 67% 10,674 13,704 11,036 -19% 3% International 12,935 27,622 17,694 -36% 37% Domestic(%) 45% 33% 38% 45% 38% 33% Iternational(%) 55% 67% 62% ’18.1Q ’18.4Q ’19.1Q 4

3. Cost Breakdown [Cost] Total Operating Cost for 2019 1Q has been reduced YoY by 22% to 32.9 B KRW - Commissions & Royalties : Decreased q-q in conjunction with sales - Marketing : Effective global marketing strategies reduced costs q-q - Salary : while maintaining workforce, cost declined q-q Cost Breakdown & Proportion by sales [Unit : M KRW , % ] [Unit : M KRW ] 인건비 마케팅비 지급수수료 로열티 기타 '18. 1Q '18. 4Q '19. 1Q QoQ YoY 42,222 Sales 23,609 41,326 28,730 -30% 22% 6,565 16% 32,852 Expense 29,426 42,222 32,852 -22% 12% 29,426 23% 9,500 6,505 23% Salary 22% 8,723 9,992 9,710 -3% 11% 5,100 21% 6,089 4,528 19% Marketing 4,643 3,615 2,334 -35% -50% 12,549 30% 27% 6,432 8,214 29% Commission 6,432 12,549 8,214 -34% 28% 3,615 9% 20% 8% 4,643 2,334 Royalty 34% 4,528 9,500 6,089 -36% 34% 9,992 37% 24% 9,710 8,723 Others 5,100 6,565 6,505 -2% 28% '18.1Q '18.4Q '19.1Q 5

4. 2019 Business Strategy – Overview ■ Continuous expansion of portfolio by releasing various anticipated titles will lead to 2019 Turnaround Sequential release by region NEW (regional expansion) TITLES ➔ Hit- ratio↑ FY19 Turnaround Global operations and EXISTING marketing TITLES ➔ Sales growth 6

4. 2019 Business Strategy – Mobile MMORPG ■ Blockbuster MMORPG ‘TALION’ : NA & EU in MAY ➔ Korea in JUNE Major updates Greater Released Enhanced Brand power BM Coming soon New characters Ultraman & costumes Collaboration Enhanced 2Q19 1Q19 2Q19 Content 2Q19 4Q18 2Q19 New maps & more 4Q18 Improved Battle mode Cross-server RvR Additional Additional New content Growth content Guild system & Transcendental communication equipment 7

4. 2019 Business Strategy – S-RPG ■ High Freedom-of- strategy, Hardcore RPG ‘ELUNE‘ : Korea in JULY Strengthened Improved gameplay operational capacity Balanced Contents modification improving Enhanced BM & - Heroes - New hero Retention difficulty - World boss level changed - League (Upgraded system) - UI upgrade Accumulated operational experience from Taiwan launch Strategic sequential launch TAIWAN KOREA GLOBAL Released (19Y JAN.) Coming soon (19Y JUL.) Coming soon (19Y 3Q) 8

4. 2019 Business Strategy – S-RPG ■ Expansion of maniac fans from accumulated operating know-how: Continuous increase of sales ‘HEIR OF LIGHT’ sales trend (Open~1Q19) Build up to a long term hit 36%↓ 167%↑ Rank rebounds after 1 st season update Real-time PVP update Season 3.0 Update Open (MAR. 2018) Improving Additional New content play-retention Update 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19E 9

4. 2019 Business Strategy – Sports ■ Newest version in 6 years of Korea’s favorite game: Soft launch in JULY ➔ Official Korean launch in SEPT Creating a new baseball Succession to legitimacy game market Casual fantasy Baseball (Non-licensed) - Since 2002 12 versions have been launched Existing Baseball Game - Elements inherited from previous versions: ‘GAMEVIL ‘My Own League’, ‘Magic Players’, etc. Live-action with license ▪ Baseball Management with license ▪ Superstars’ Differentiated gameplay 70 Million Successful global downloads KR Launching 17 Million download In Korea - Create your own player, customization - Over 100 Magic Player coaches, Unique skills 10

4. 2019 Business Strategy – Sports ■ Officially licensed game ‘NBA NOW’ : Global in 3Q Successful market Simple one-touch interface Content updates penetration Global ‘NBA’ sports license Increased User convenience & immersion 1 Billion International TV viewers & social media followers Collect players Play games ✓ Improved tutorial ✓ Added PvP content ✓ Enhanced realism Global launching by AI improvement In 3Q19 ✓ Enhanced marketability by BM improvement Manage team Track real data 11

Thank you 12