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

GAMEVIL’s 1st Quarter of 2019 Financial Results

May 10, 2019

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

Disclaimer

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23,609 41,326 28,730

'18.1Q '18.4Q '19.1Q

매출액

• 5,817
• 896
• 4,122

3,152 7,094 5,168 3,692

• 5,896

4,265

'18 1Q '18 4Q '19 1Q

• 1. Performance Overview

2018.1Q 2018.4Q 2019.1Q QoQ YoY Sales

23,609 41,326 28,730

• 30%

22%

Operating Profit

• 5,817
• 896
• 4,122
• 360%

29%

OP(%)

• 25%
• 2%
• 14%

Earning before tax

3,152 7,094 5,168

• 27%

64%

Net profit

3,692

• 5,896

4,265 Turn around 16%

NP(%) 16%

• 14%

15%

[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 ]

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45% 33% 38% 55% 67% 62% ’18.1Q ’18.4Q ’19.1Q

국내 비중 해외 비중

• 2. Sales breakdown

[Unit : M KRW ]

’18.1Q ’18.4Q ’19.1Q Q-Q Y-Y Sales

23,609 41,326 28,730

• 30%

22%

Domestic

10,674 13,704 11,036

• 19%

3%

International

12,935 27,622 17,694

• 36%

37%

Domestic(%)

45% 33% 38%

Iternational(%)

55% 67% 62%

[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 : %]

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• 3. Cost Breakdown

Cost Breakdown & Proportion by sales

'18. 1Q '18. 4Q '19. 1Q QoQ YoY Sales

23,609 41,326 28,730

• 30%

22%

Expense

29,426 42,222 32,852

• 22%

12%

Salary

8,723 9,992 9,710

• 3%

11%

Marketing

4,643 3,615 2,334

• 35%
• 50%

Commission

6,432 12,549 8,214

• 34%

28%

Royalty

4,528 9,500 6,089

• 36%

34%

Others

5,100 6,565 6,505

• 2%

28%

[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

8,723 9,992 9,710 4,643 3,615 2,334 6,432 12,549 8,214 4,528 9,500 6,089 5,100 6,565 6,505 '18.1Q '18.4Q '19.1Q 인건비 마케팅비 지급수수료 로열티 기타 22% 19% 27% 20% 37% 16% 23% 30% 9% 24% 23% 21% 29% 8% 34%

29,426 42,222 32,852

[Unit : M KRW , % ] [Unit : M KRW ]

• 4. 2019 Business Strategy – Overview

■ Continuous expansion of portfolio by releasing various anticipated titles will lead to 2019 Turnaround

FY19 Turnaround

EXISTING TITLES NEW TITLES

Sequential release by region (regional expansion) ➔ Hit-ratio↑

Global operations and marketing ➔ Sales growth

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2Q19

• 4. 2019 Business Strategy – Mobile MMORPG

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■ Blockbuster MMORPG ‘TALION’: NA & EU in MAY ➔ Korea in JUNE

New maps & more

Enhanced Content Improved Battle mode

Cross-server RvR Guild system & communication

Additional New content Additional Growth content

Transcendental equipment New characters & costumes

Enhanced BM

Ultraman Collaboration

Greater Brand power

Coming soon Released Major updates

2Q19 2Q19 2Q19 1Q19 4Q18 4Q18

• 4. 2019 Business Strategy – S-RPG

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■ High Freedom-of-strategy, Hardcore RPG ‘ELUNE‘: Korea in JULY

Strengthened

• perational capacity

Released (19Y JAN.) Coming soon (19Y JUL.) Coming soon (19Y 3Q)

Improved gameplay Strategic sequential launch

Accumulated operational experience from Taiwan launch

Balanced modification

• Heroes

difficulty level changed (Upgraded system)

Contents improving

• New hero
• World boss
• League
• UI upgrade

Enhanced BM & Retention

TAIWAN KOREA GLOBAL

• 4. 2019 Business Strategy – S-RPG

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■ Expansion of maniac fans from accumulated operating know-how: Continuous increase of sales

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19E

Improving play-retention Update Additional New content

36%↓ 167%↑

Open

(MAR. 2018)

‘HEIR OF LIGHT’ sales trend (Open~1Q19)

Build up to a long term hit

Real-time PVP update Season 3.0 Update

Rank rebounds after 1st season update

■ Newest version in 6 years of Korea’s favorite game: Soft launch in JULY ➔ Official Korean launch in SEPT

• 4. 2019 Business Strategy – Sports

Succession to legitimacy

• Elements inherited from previous versions:

‘My Own League’, ‘Magic Players’, etc.

• Create your own player, customization
• Over 100 Magic Player coaches,

Unique skills

Differentiated gameplay

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‘GAMEVIL Baseball Superstars’ 70 Million global downloads

Creating a new baseball game market

Existing Baseball Game

▪ Live-action with license ▪ Management with license

Successful KR Launching

17 Million download In Korea

Casual fantasy Baseball (Non-licensed)

• Since 2002 12 versions have been launched

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• 4. 2019 Business Strategy – Sports

■ Officially licensed game ‘NBA NOW’ : Global in 3Q

Simple one-touch interface

Track real data Manage team Play games Collect players

Content updates Successful market penetration

✓ Improved tutorial ✓ Added PvP content ✓ Enhanced realism by AI improvement ✓ Enhanced marketability by BM improvement

Global launching In 3Q19

International TV viewers

1 Billion

& social media followers

Global ‘NBA’ sports license

Increased User convenience & immersion

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Thank you