INVESTOR PRESENTATION Q4 2019 - Owen Mahoney President and Chief Executive Officer - Nexon

 
INVESTOR PRESENTATION Q4 2019 - Owen Mahoney President and Chief Executive Officer - Nexon
INVESTOR
PRESENTATION
Q4 2019
February 13, 2020 NEXON Co., Ltd.

Owen Mahoney                            Shiro Uemura
President and Chief Executive Officer   Chief Financial Officer
INVESTOR PRESENTATION Q4 2019 - Owen Mahoney President and Chief Executive Officer - Nexon
CEO Highlights

                 © 2020 NEXON Co., Ltd. All Rights Reserved.   2
INVESTOR PRESENTATION Q4 2019 - Owen Mahoney President and Chief Executive Officer - Nexon
The Four Quadrants
Massive TAM1 Growth In Deeply Immersive Online Games
                                                                                                                         Deep

  Offline                                                                                                                                                                                                                      Online

                                                                                                                       Casual
   1   TAM means “Total Addressable Market”.                                                                   3   The categorization of the games shown in this material is based on our own view.
   2   The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works,       It may not necessarily reflect the common views in the market.
                                                                                                                                                                                                      © 2020 NEXON Co., Ltd. All Rights Reserved.   3
       which are shown in this material are trademarks, registered trademarks, copyrighted works or other
       legally protected materials owned by respective right holders.
INVESTOR PRESENTATION Q4 2019 - Owen Mahoney President and Chief Executive Officer - Nexon
Results Driven by Phenomenal Strength of Major Franchises
Korea MapleStory, MapleStory M and FIFA ONLINE 41 Each Achieved All-Time High Full-year
Revenues. V4 Off to a Great Start. Highest Ever Q4 Revenue in Korea

                        1                                                                                                                  2
                        Q4 2019 Results                                                                                                    Full-year 2019 Results
                        •        Q4 2019 revenues exceeded our outlook.                                                                    •        Constant-currency2 revenues, operating income and
                        •        Outperformance driven by exceptionally strong                                                                      net income3 all grew Y/Y driven by strength in Korea.
                                 performances of MapleStory and FIFA ONLINE 41,                                                            •        As-reported revenues and operating income were
                                 as well as good start of V4                                                                                        down Y/Y due to FX headwinds
                                                                                                                                           •        Net income3 was up Y/Y

3                                                                                     4                                                                                          5
Korea MapleStory - PC                                                                 Korea MapleStory M                                                                         FIFA ONLINE 41
•   Constant-currency2 Q4 revenue grew 88%                                            •       Constant-currency2 Q4 revenue grew 114%                                            • Combined PC and mobile, Q4 and full-year
    Y/Y.                                                                                      Y/Y                                                                                  revenues grew significantly Y/Y.
•   Constant-currency2 full-year revenue grew  •                                              Constant-currency2 full-year revenue grew                                          • Recorded the highest Q4 and full-year
    39% (on top of the 67% Y/Y growth in 2018)                                                65% (on top of the 81% Y/Y growth in 2018)                                           revenues, surpassing the previous peak of
•   Double-digit growth for the 6th consecutive                                       •       Double-digit growth for the 3rd consecutive                                          FIFA Online 31 achieved in 2017.
    year.                                                                                     years
•   Both Q4 and full-year revenues surpassed                                          •       Both Q4 and full-year revenues surpassed
    previous peak set in 2018.                                                                previous peak set in 2018.

      1   Official titles are EA SPORTS™ FIFA Online 3 (PC), EA SPORTS™ FIFA Online 3 M (mobile), EA SPORTS™ FIFA ONLINE 4 (PC) and EA SPORTS™ FIFA ONLINE 4 M (mobile)
      2   Constant currency is a non-GAAP measure used to show performance unaffected by fluctuations in foreign currency exchange rates. Constant currency basis amounts are calculated using the average
          foreign currency exchange rates for the comparable period in the prior year and applied to the current period. As an example,we calculate royalty revenues from China Dungeon&Fighter by applying the
          same CNY/USD, USD/KRW and KRW/JPY exchange rates from last year's same fiscal quarter.
                                                                                                                                                                                                                  © 2020 NEXON Co., Ltd. All Rights Reserved.   4
      3   Net income refers to net income attributable to owners of the parent, as stated in Nexon’s consolidated financial results.
INVESTOR PRESENTATION Q4 2019 - Owen Mahoney President and Chief Executive Officer - Nexon
FY2019 MapleStory Franchise Marks All-time High in Korea
Another True Forever Franchise

                                         Korea MapleStory                                                                                                               Korea MapleStory M
Revenue                                                                                                                                                    Revenue

                                                                                                                          Year                                                                                            Year
  2003                                                                                                         2019                                              2016                                          2019

    1   The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which are shown in this material are trademarks,                       © 2020 NEXON Co., Ltd. All Rights Reserved.   5
        registered trademarks, copyrighted works or other legally protected materials owned by respective right holders
INVESTOR PRESENTATION Q4 2019 - Owen Mahoney President and Chief Executive Officer - Nexon
Dungeon&Fighter
    New Key Update Comes to China in March. Strong Progress on the Mobile Version
                                             Dungeon&Fighter                                                                                                                             Dungeon&Fighter 2D Mobile2

• Expect sales from 2020 Lunar New Year update to decline substantially                                                                         • Began the second closed beta test in December
  from 2019’s strong performance. Expect revenue growth to remain                                                                               • Observed encouraging results during the test
  challenging for a few quarters                                                                                                                • Started pre-registration in late December
• Next important event comes in March 2020 when the new key update                                                                              • Over 16 million3 people have signed up for its coming launch in 1H 2020.
  goes live – addresses the primary feedback received from our players;                                                                         • Immersive Dungeon&Fighter experience to mobile represents a massive
  Includes the level cap release and the third                                awakening1.                                                            increase in the total addressable market.
• In January, the update went live in Korea – historically been a good
  indicator of China service. Feedback in Korea positive; improved KPIs.

  Dungeon&Fighter PC

         1   Third awakening allows players to gain new skills for their characters   3   Pre-registration as of February 12th, 2020
         2   Mobile game based on original IPs.                                       4   The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which are shown in this material
                                                                                          are trademarks, registered trademarks, copyrighted works or other legally protected materials owned by respective right holders
                                                                                                                                                                                                                                   © 2020 NEXON Co., Ltd. All Rights Reserved.   6
INVESTOR PRESENTATION Q4 2019 - Owen Mahoney President and Chief Executive Officer - Nexon
New Mobile MMORPG V4
Early Performance Is Solid, Despite Strong Competition in Korea

                                                                                                                                                                                                               Top Grossing
                                                                                                               1                                                                                                iOS : # X
                                              APP RANKING                                                                             iOS : #4                         Google Play : #4
                                                                                                                                                                                                                Google Play: # X

   1   Ranking sourced from App Annie as of February 12th, 2020   2   The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which are shown in this material
                                                                      are trademarks, registered trademarks, copyrighted works or other legally protected materials owned by respective right holders          © 2020 NEXON Co., Ltd. All Rights Reserved.   7
INVESTOR PRESENTATION Q4 2019 - Owen Mahoney President and Chief Executive Officer - Nexon
Enormous Value of Nexon’s IP Franchises

                      Launched 2003                                                                                      Launched 2004                                              Launched 2005

 More than 180 million registered users worldwide                                           Registered users over 380 million on PC platform                       Life-to-date gross revenue well over $10 billion
 Player registrations now equal to 45% of Korean                                             alone                                                                  Gross revenue several billion dollars more than
  population                                                                                 Over half of all Korean population; over 45% of                         life-to-date box office of Star Wars series, Harry
 Combined PC and mobile revenue is about equal                                               Taiwanese population has played the game                                Potter series; approximately double the revenue
  to global box office of the movie franchise Frozen                                                                                                                  of the entire Avengers series1
  – one of Disney’s biggest1.

       1   Source: BoxOfficeMojo.com
       2   The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which are shown in this material are trademarks,                       © 2020 NEXON Co., Ltd. All Rights Reserved.   8
           registered trademarks, copyrighted works or other legally protected materials owned by respective right holders
INVESTOR PRESENTATION Q4 2019 - Owen Mahoney President and Chief Executive Officer - Nexon
Focus
     1                                                                                                                              2
     Fully-online multiplayer games                                                                                                 Multiple platforms: PC, console and mobile

 3                                                                                                                                  4
 Leveraging Nexon’s substantial IP portfolio                                                                                        Selective Investment in highly unique new IPs

 1   The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which are shown in this material are trademarks,        © 2020 NEXON Co., Ltd. All Rights Reserved.   9
     registered trademarks, copyrighted works or other legally protected materials owned by respective right holders
INVESTOR PRESENTATION Q4 2019 - Owen Mahoney President and Chief Executive Officer - Nexon
Three Product Beats
      in 2020

                      © 2020 NEXON Co., Ltd. All Rights Reserved.   10
Dungeon&Fighter 2D Mobile1
                                                                                                                                                                                 2
Expect to launch in 1H 2020. Pre-registration Exceeded 16 Million

  1   Mobile game based on original IPs.   2   Pre-registration as of February 12th, 2020   3   The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which
                                                                                                are shown in this material are trademarks, registered trademarks, copyrighted works or other legally          © 2020 NEXON Co., Ltd. All Rights Reserved.   11
                                                                                                protected materials owned by respective right holders.
KartRider: Drift
Fully Cross-Platform Multiplayer Online Game

  1   The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which are shown in this material are trademarks,
      registered trademarks, copyrighted works or other legally protected materials owned by respective right holders.                                         © 2020 NEXON Co., Ltd. All Rights Reserved.   12
First Game from Embark Studios

 1   The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which are shown in this material are trademarks,
     registered trademarks, copyrighted works or other legally protected materials owned by respective right holders.                                         © 2020 NEXON Co., Ltd. All Rights Reserved.   13
Solid Foundation. Significant Opportunities for Growth
Nexon is Well-positioned to Lead the Next Wave of Online Games

                                                                                                                                                                                           Opportunity
 REVENUE

                                                                                                                                                                                            Solid
                                                                                                                                                                                            Foundation

                                                                                                                                                                                            YEAR

   1   The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which are shown in this material are trademarks,
       registered trademarks, copyrighted works or other legally protected materials owned by respective right holders.                                         © 2020 NEXON Co., Ltd. All Rights Reserved.   14
FY 2019 Capital Allocation
(Unit: ¥ billions)

                                                                                                                 Working Capital1

                                                                                                                                                          Investment
                                                                                     -10.3
                                                                                                                                                           Embark Studios
                                                                                                                                                           Wonder Holdings

                                                                                                                             -38.4

                                                                                                                                                                                                 Shareholder Return
                                             105.1                                                                                                                                                Share Buyback2

                                                                                                                                                                     -30.0

                                                                                                                                                                                                       26.4

                                 Operating Cash Flow                                                                                                                                                  Surplus

     1   Working Capital includes increase/decrease in working capital as well as other proceeds and payments that are not included in “Investment” and “Shareholder Return” such as “purchases of
         property, plant and equipment” and “proceeds from exercise of stock options”.
     2   Including purchases of treasury stock in January 2020, based on the share repurchase program of ¥30 billion                                                                                          © 2020 NEXON Co., Ltd. All Rights Reserved.   15
FY 2019 Results

                  © 2020 NEXON Co., Ltd. All Rights Reserved.   16
FY 2019 Financial Results
(Unit: ¥ billions)

                                    Revenues                                                                     Operating Income                                                                     Net Income1

                    253.7                                    248.5

                                                                                                                                                                                         107.7
                                                                                                                                                                                                                                115.7
                                                                                                            98.4                               94.5

                     2018                                        2019                                       2018                                 2019                                     2018                                     2019

                    As reported:                                   -2%                                     As reported:                            -4%                                   As reported:                               + 7%
                    Constant currency2:                            +4%                                     Constant currency2:                     +3%                                   Constant currency2:                        +16%

      1   Net income refers to net income attributable to owners of the parent, as stated in Nexon’s consolidated financial results.
      2   Constant currency is a non-GAAP measure used to show performance unaffected by fluctuations in foreign currency exchange rates. Constant currency basis amounts are calculated using the average foreign currency exchange rates for the comparable period in the
          prior year and applied to the current period. As an example, we calculate royalty revenues from China Dungeon&Fighter by applying the same CNY/USD, USD/KRW and KRW/JPY exchange rates from last year's same fiscal quarter.

                                                                                                                                                                                                                    © 2020 NEXON Co., Ltd. All Rights Reserved.    17
FY 2019 Revenue Breakdown
                                                                                                                                                                                                          FY2019 Revenue by Region1
                                                                                                       FY2019                                          YoY % Change
                                                                                                                                                                                                                             Europe and Others2
                                                                                                                                                                                                       North America                 7%
      (Unit: ¥ millions)                                                                                             Constant                                           Constant                            6%
                                                               FY2018                   As-Reported                                          As-Reported
                                                                                                                     Currency5                                          Currency5
      Revenue by Region1                                                                                                                                                                               Japan
                                                                                                                                                        (16%)                     (10%)                 6%
        China                                                     ¥132,966                    ¥112,247                 ¥119,076
        Korea                                                        73,790                      89,794                     96,519                         22%                     31%
                                                                                                                                                                                                                                              China
        Japan                                                        14,068                      13,854                     14,261                        (2%)                       1%                                                       45%

        North America                                                16,498                      14,687                     15,089                      (11%)                      (9%)                           Korea
                                     2                                                                                                                                                                             36%
        Europe and Others                                            16,399                      17,960                     18,872                         10%                     15%
      Nexon Total                                                 253,721                     248,542                  263,817                            (2%)                       4%

      Revenue by Platform
             3
                                                                                                                                                                                                         FY2019 Revenue by Platform
        PC                                                          198,871                    187,965                  199,823                           (5%)                       0%
        Mobile                                                       54,850                      60,577                     63,994                         10%                     17%
      Nexon Total                                                 253,721                     248,542                  263,817                            (2%)                       4%                           Mobile
                                                                                                                                                                                                                   24%

      Operating income                                              98,360                      94,525                 101,751                            (4%)                       3%
                        4
      Net income                                                  107,672                     115,664                  125,006                               7%                    16%
                                                                                                                                                                                                                                          PC3
                                                                                                                                                                                                                                          76%
      Earnings per share                                             121.03                      129.34

 1   Based on the regions in which       2   "Europe and Others" includes Europe    3   PC revenues include other       4   Net income refers to net income attributable to   5   Constant currency is a non-GAAP measure used to show performance unaffected
     revenues originate; not a               as well as other Asian countries and       revenues besides PC online          owners of the parent, as stated in Nexon’s            by fluctuations in foreign currency exchange rates. Constant-currency basis
     representation of revenues              South American countries.                  games and mobile games.             consolidated financial results.                       amounts are calculated using the average foreign currency exchange rates for
     according to Nexon entities.                                                                                                                                                 the comparable period in the prior year and applied to the current period. As an
                                                                                                                                                                                  example, we calculate royalty revenues from China Dungeon&Fighter by applying
                                                                                                                                                                                  the same CNY/USD, USD/KRW and KRW/JPY exchange rates from last year's
                                                                                                                                                                                  same fiscal quarter.
                                                                                                                                                                                                                            © 2020 NEXON Co., Ltd. All Rights Reserved.   18
Historical China Revenues

(Unit: ¥ billions)

                                                                                        133.0
                            Q1   Q2     Q3   Q4

                                                                                 +15%           -16%
                                                                                        17.9
                                                                         115.4
                                                                                                       112.2

                                                                         22.8                          15.6
                                                                  +56%                  31.2

                                                                                                       17.8
                                              75.4   -2%   74.2          27.8
                                 +13%
                     67.0                                                               23.2
                                              16.5         15.4                                        21.3
                     16.4
                                                                         20.8
                                              20.2         17.4
                     15.7
                                                           15.6
                                              16.0                                      60.7           57.6
                     13.5
                                                                         44.0

                     21.3                     22.7         25.8

                     FY14                     FY15         FY16          FY17           FY18           FY19

                                                                                                        © 2020 NEXON Co., Ltd. All Rights Reserved.   19
Q4 2019 Results

                  © 2020 NEXON Co., Ltd. All Rights Reserved.   20
Q4 2019 Result Highlights
Revenue Outperformance Driven by Phenomenal Strength of Major Franchises in Korea

Revenues                                                                                 Operating Income                                                              Net Income2
Exceeded our outlook. Driven by the                                                      Below our outlook. The revenue                                                Below our outlook. While recording a ¥11.0
strong performances of Korea MapleStory                                                  outperformance was more than offset by                                        billion deferred tax asset related to the
and FIFA ONLINE 41. Revenues from the                                                    a ¥9.2 billion impairment loss primarily on                                   foreign tax credit at Neople, this was more
new mobile MMORPG V4 as well as China                                                    assets related to Pixelberry, including                                       than offset by the operating income
Dungeon&Fighter were slightly above our                                                  goodwill.                                                                     underperformance and a ¥11.4 billion FX
expectations.                                                                                                                                                          loss primarily on U.S. dollar-denominated
                                                                                                                                                                       cash deposits.
(Unit: ¥ millions, except per share data)                                                                                                                      (Unit: ¥ billions)

                                                                                                                                                                                                                                   2
                                              Q4 2018                       Q4 2019 Outlook                            Q4 2019                   YoY %              Revenues          Operating Income            Net Income

 Revenues                                          ¥46,081               ¥41,397         ~        ¥44,454                   ¥49,243                      7%
      3
  PC                                                 32,724                27,588        ~          29,472                    33,647                     3%                    49.2
                                                                                                                                                                  46.1
  Mobile                                             13,357                13,809        ~          14,982                    15,596                    17%
 Operating income                                     3,907                 5,976        ~           8,208                      4,518                   16%
                  2
 Net income                                           6,504                 7,565        ~           9,421                      3,275               (50%)

 Earnings per share                                     7.27                  8.44       ~           10.52                        3.68

 Exchange rates
                                                      10.03                                                                       9.26                                                                            6.5
    100 KRW/JPY                                                               9.14                     9.14                                             (8%)                            3.9       4.5                            3.3
    CNY/JPY                                           16.30                 15.31                    15.31                      15.46                   (5%)
    USD/JPY                                          112.90               108.70                   108.70                     108.76                    (4%)   Q4 2018 Q4 2019 Q4 2018 Q4 2019 Q4 2018 Q4 2019

       1   Official titles are EA SPORTS™ FIFA ONLINE 4 (PC)   2   Net income refers to net income attributable to owners of the parent, as stated in
           and EA SPORTS™ FIFA ONLINE 4 M (mobile).                Nexon’s consolidated financial results.
                                                               3   PC revenues include other revenues besides PC online games and mobile games.
                                                                                                                                                                                               © 2020 NEXON Co., Ltd. All Rights Reserved.   21
Q4 2019 Revenue Breakdown
                                                                                                      Q4 2019                                       YoY % Change                                    Q4 2019 Revenue by Region1

                                                                                                                 Constant                                          Constant                                         Europe and Others2
(Unit: ¥ millions)                                             Q4 2018                As-Reported                                        As-Reported                                            North America
                                                                                                                 Currency4                                         Currency4                                                8%
                                                                                                                                                                                                     6%
       Revenue by Region1
        China                                                       ¥17,863                    ¥15,632                 ¥16,447                       (12%)                    (8%)               Japan
                                                                                                                                                                                                  5%
        Korea                                                         15,567                     24,393                 26,421                         57%                     70%                                                    China
                                                                                                                                                                                                                                       32%
        Japan                                                           4,321                      2,262                 2,338                       (48%)                  (46%)
        North America                                                   4,309                      3,189                 3,343                       (26%)                  (22%)
                                       2
        Europe and Others                                               4,021                      3,767                 4,004                        (6%)                    (0%)
                                                                                                                                                                                                                Korea
       Nexon Total                                                   46,081                    49,243                  52,553                            7%                    14%                               49%

       Revenue by Platform
        PC3                                                           32,724                     33,647                 35,833                           3%                    10%
                                                                                                                                                                                                    Q4 2019 Revenue by Platform
        Mobile                                                        13,357                     15,596                 16,720                         17%                     25%
       Nexon Total                                                   46,081                    49,243                  52,553                            7%                    14%

                                                                                                                                                                                                          Mobile
       FX Rate                                                                                                                                                                                             32%
         100 KRW/JPY                                                    10.03                       9.26                10.03                         (8%)
         CNY/JPY                                                        16.30                     15.46                 16.30                         (5%)                                                                           PC3
         USD/JPY                                                      112.90                    108.76                 112.90                         (4%)                                                                           68%

   1   Based on the regions in which       2   "Europe and Others" includes Europe    3   PC revenues include other      4   Constant currency is a non-GAAP measure used to show performance unaffected        5   For the KPIs (MAU, Pay Rate and ARPPU)
       revenues originate; not a               as well as other Asian countries and       revenues besides PC online         by fluctuations in foreign currency exchange rates. Constant-currency basis            of PC online games, please refer to
       representation of revenues              South American countries.                  games and mobile games.            amounts are calculated using the average foreign currency exchange rates for           appendix of this presentation.
       according to Nexon entities.                                                                                          the comparable period in the prior year and applied to the current period. As an
                                                                                                                             example, we calculate royalty revenues from China Dungeon&Fighter by applying
                                                                                                                             the same CNY/USD, USD/KRW and KRW/JPY exchange rates from last year's
                                                                                                                             same fiscal quarter.
                                                                                                                                                                                                                     © 2020 NEXON Co., Ltd. All Rights Reserved.   22
China / Korea – Highlights
China                                                                                                                               Korea
Exceeded our outlook. Dungeon&Fighter’s revenue was slightly above                                                                  Q4 was our highest quarter ever. Outperformance primarily driven by
our expectation.                                                                                                                    MapleStory and FIFA ONLINE 43 as well as V4 and MapleStory M
• Dungeon&Fighter                                                                                                                   • MapleStory: Strong item sales in the latter half of the quarter supported by well-

   •       Continued National Day update (9/24 – 11/28); conducted multiple in-game                                                      received in-game events and Winter update. Revenue grew 73% Y/Y; surpassed
           events and small-scale updates                                                                                                previous Q4 record achieved in 2018
                                                                                                                                                                 3                               3
   •       MAUs decreased both Y/Y and Q/Q primarily due to reduced bots in relation to                                             • FIFA ONLINE 4 / FIFA ONLINE 4 M
           the implementation of a stricter measure to verify player identity which was                                                   •    Stronger-than-expected sales in the latter half of the quarter supported by successful
           made in October.                                                                                                                    introduction of legendary players, seasonal events and sales promotions
   •       Paying users increased slightly Q/Q benefiting from multiple in-game events                                                    •    Combined PC and mobile revenues grew significantly Y/Y compared with Q4 2018, when
           and small-scale updates; remained at low level since Q3 and decreased Y/Y                                                           its revenue had reached approximately the level of FIFA ONLINE 33 in Q4 2017.
   •       ARPPU and revenue decreased Q/Q due to typical seasonality. Y/Y revenue                                                  • V4: Launched on November 7. Off to a good start; December revenue exceeded our
           decreased; while ARPPU increased due to decreased light users compared to
                                                                                                                                         expectation. Stable performance despite the intense competition
           Q4 2018
                                                                                                                                    • MapleStory M: Recorded the highest Q4 revenue; grew 97% Y/Y
                                     57,550
(Unit: ¥ millions)                                                             YoY% change:                                                                                                                              YoY% change:
                                                                                  As Reported:                      -12%                                                                                                  As Reported:                     +57%
                                                                                  Constant     Currency1:           -8%                                                                                                   Constant    Currency1:           +70%

                                                                                                                                                                               22,357                                     23,657             24,393
                                                           21,282                                                                                                                                    19,387
               17,863                                                            17,783
                                                                                                     15,632                                              15,567
                                                                                                                                                                                                                                             15,765       PC2
                                                                                                                                                                               16,798                13,844               19,269
                                                                                 16,014               15,172       PC2                                   12,348
                                                                                  1,769                                                                                         5,559                 5,543               4,388
                                                                                                                                                                                                                                              8,628       Mobile
                                                                                                        460        Mobile                                 3,219
              Q4 2018               Q1 2019               Q2 2019              Q3 2019               Q4 2019                                            Q4 2018               Q1 2019                Q2 2019             Q3 2019             Q4 2019

       1   Constant currency is a non-GAAP measure used to show performance unaffected by fluctuations in foreign          2   PC revenues include other revenues besides PC online games and mobile games.
           currency exchange rates. Constant-currency basis amounts are calculated using the average foreign currency
           exchange rates for the comparable period in the prior year and applied to the current period. As an example,    3   Official titles are EA SPORTS™ FIFA Online 3 (PC), EA SPORTS™ FIFA Online 3 M (mobile),
           we calculate royalty revenues from China Dungeon&Fighter by applying the same CNY/USD, USD/KRW and                  EA SPORTS™ FIFA ONLINE 4 (PC) and EA SPORTS™ FIFA ONLINE 4 M (mobile).                     © 2020 NEXON Co., Ltd. All Rights Reserved.   23
           KRW/JPY exchange rates from last year's same fiscal quarter.
Japan / North America / Europe and Others1 – Highlights
Japan                                                                                    North America                                                                          Europe and Others1
                                                                                                                                                                  4
Below our outlook due to lower-than-expected                                             Outperformance primarily driven by Choices .                                           Outperformance primarily driven by MapleStory M
performances of mobile games including                                                   Y/Y decrease primarily due to the tough                                                and Spiritwish global service launched in October.
MapleStory M. Revenues down Y/Y                                                          comparisons with Q4 2018, as well as                                                   Y/Y decrease primarily to the tough comparisons
                                                                                                       4                                                                                                                        4
•   Y/Y revenues benefited from MapleStory M and                                         Choices                                                                                with Q4 2018, as well as Choices
    MapleStory 2 – both launched in Q2 2019. These were                                  •    Y/Y decrease primarily due to the deceleration of                                 •    Y/Y revenues benefited from Spiritwish, while these
                                                                                                           4
    more than offset by the deceleration of Dynasty                                           Choices , Darkness Rises and MapleStory M                                              were more than offset by the deceleration of
    Warriors: Unleashed and FAITH launched in 2018                                       •    Darkness Rises and MapleStory M decreased Y/Y                                          MapleStory M, Darkness Rises, and Choices4.
•   Disposed gloops’ browser-based mobile business on                                         due to tough comparisons with Q4 2018 just after                                  •    MapleStory M and Darkness Rises decreased Y/Y due
    December        1st. Browser revenue contributed                a month                   their services began.                                                                  to tough comparisons with Q4 2018 just after their
    less versus Q4 2018                                                                                                                                                              services began.

(Unit: ¥ millions)               YoY% change:                                                                           YoY% change:                                                                      YoY% change:
                                   As Reported:                    -48%                                                   As Reported:                    -26%                                               As Reported:                  -6%
                                   Constant Currency2:             -46%                                                   Constant Currency2:             -22%                                               Constant Currency2:           -0%

                                                                                                                                                                                                  5,171
                                     4,608                                                                                                                                                                     4,588         4,434
         4,321                                                                                  4,309                                                                                     4,021
                       3,833                                                                                   4,166       4,000                                                                  1,580                                   3,767
                                       866                                                                                                                                                                     1,290
          839                                       3,151                                         752          740                    3,332           3,189                                                                  1,511
                                                                                                                            889                                                           964
                       1,015                                                                                                                                                                                                               1,132      PC3
                                                     965          2,262                                                                   795           882       PC3
         3,482                       3,742                         696       PC3                3,557          3,426                                                                              3,591        3,298
                       2,818                                                                                               3,111                                                          3,057                              2,923         2,635
                                                    2,186                                                                             2,537           2,307       Mobile
                                                                                                                                                                                                                                                      Mobile
                                                                  1,566      Mobile

     Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019                                                  Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019                                                    Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019

     1   "Europe and Others" includes Europe as well as other Asian countries and South American countries.                           3   PC revenues include other revenues besides PC online games and mobile games.
     2   Constant currency is a non-GAAP measure used to show performance unaffected by fluctuations in foreign currency exchange     4   Official title is Choices: Stories You Play.
         rates. Constant-currency basis amounts are calculated using the average foreign currency exchange rates for the comparable
         period in the prior year and applied to the current period. As an example, we calculate royalty revenues from China
         Dungeon&Fighter by applying the same CNY/USD, USD/KRW and KRW/JPY exchange rates from last year's same fiscal quarter.                                                                                © 2020 NEXON Co., Ltd. All Rights Reserved.   24
Q1 2020 Outlook

                  © 2020 NEXON Co., Ltd. All Rights Reserved.   25
Q1 2020 Financial Outlook
Expect Continued Strength in Korea; Revenues Expected to Decrease Y/Y Primarily in China
Revenues                                                                                        Operating Income                                                                       Net Income4
• Constant currency1 down 18% to 10%                                                            • Expect a Y/Y decrease primarily due                                                  • Expect a Y/Y decrease primarily due
• Y/Y growth in Korea, driven by V4 and                                                           to the revenue decline                                                                 to the operating income decline
  strength in MapleStory and FIFA ONLINE 42.                                                    • Expect lower Other Expense.                                                          • Expect lower Finance Income.
  These are expected to be more than offset                                                       Recorded a ¥2.9 billion impairment                                                     Recorded a ¥6.3 billion FX gain in Q1
  by Y/Y decrease in China Dungeon&Fighter.                                                       loss3 in Q1 2019                                                                       2019

(Unit: ¥ millions, except per share data)                                                                                                                                     (Unit: ¥ billions)           Q1 2020 (High-end)
                                                               Q1 2019                    Q1 2020 Outlook                                    YoY %
           Revenues                                               ¥93,077             ¥74,038           ~       ¥80,689             (20%)         ~      (13%)
                                                                                                                                                                                     Revenues                Operating Income                     Net Income4
                  5                                                                                                                 (24%)                (18%)
             PC                                                     77,639              58,730          ~         63,979                          ~
             Mobile                                                 15,438              15,308          ~        16,711               (1%)        ~          8%
           Operating income                                         52,601              35,982          ~        42,098             (32%)         ~      (20%)
           Net income 4                                             53,400              31,731          ~        36,638             (41%)         ~      (31%)                    93.1
                                                                                                                                                                                              80.7
           Earnings per share                                         59.67               36.00         ~          41.57

           FX Rate Assumptions                                                                                                                                                                                   52.6                             53.4
                100 KRW/JPY                                            9.80                9.39                     9.39              (4%)                                                                                       42.1
                CNY/JPY                                              16.33               15.80                     15.80              (3%)                                                                                                                        36.6
                USD/JPY                                            110.20              109.89                    109.89               (0%)
                                                                                                                                                                                                                                                                             Q1
            Forex sensitivity6: Every one Japanese yen move against the U.S. dollar would have the following
            impact on our financials for Q1 2020
                                                      Revenues              0.70 billion yen
                                                      Operation Income      0.37 billion yen                                                                                     2019         2020               2019            2020             2019            2020

1   Constant currency is a non-GAAP measure used to show performance unaffected by                2   Official titles are EA SPORTS™ FIFA ONLINE 4 (PC) and EA SPORTS™ FIFA ONLINE            6    In most situations, the exchange rates of both the South Korean Won and the
    fluctuations in foreign currency exchange rates. Constant-currency basis amounts are              4 M (mobile).                                                                                Chinese Yuan are linked to the U.S. dollar. For simplicity, forex sensitivity is
    calculated using the average foreign currency exchange rates for the comparable period in     3   In Q1 2019, we recorded a ¥2.9 billion impairment loss primarily on prepaid royalties        calculated based on the assumption that Korean Won and Chinese Yuan move
    the prior year and applied to the current period. As an example, we calculate royalty         4   Net income refers to net income attributable to owners of the parent, as stated              similarly against Japanese yen when there is an exchange rate movement in
    revenues from China Dungeon&Fighter by applying the same CNY/USD, USD/KRW and                     in Nexon’s consolidated financial results.                                                   U.S. dollar and Japanese yen.
    KRW/JPY exchange rates from last year's same fiscal quarter.                                                                                                                                                               © 2020 NEXON Co., Ltd. All Rights Reserved. 26
                                                                                                  5   PC revenues include other revenues besides PC online games and mobile games.
Q1 2020 China / Korea Outlook
China                                                                                                                                  Korea
Expect Y/Y decrease of Dungeon&Fighter’s revenue to be larger than                                                                     Expect revenues to increase Y/Y driven by MapleStory, FIFA ONLINE 43,
the contribution from KartRider Rush Plus                                                                                              V4 and the new mobile RPG Counterside, which launched on February 4th
Dungeon&Fighter :                                                                                                                      • MapleStory : Expect Y/Y growth on top of the 69% Y/Y growth in Q1 2019
• Expect revenue to decline Y/Y. In Q1 2019, sales from the Lunar New Year                                                                  driven by the successful Winter update and Lunar New Year sales promotions
    package offering were exceptionally strong; paying users were at a high                                                            • FIFA ONLINE 43 : Good momentum continues. Expect Y/Y growth driven by the
    level.                                                                                                                                  strong sales from the Lunar New Year package offerings
• Introduced Lunar New Year update (1/14); in March, slated to launch the                                                              • Mobile : Expect Y/Y growth, benefiting from V4 and Counterside, as well as
    new key update which addresses the primary feedback received from our                                                                   growth in MapleStory M and FIFA ONLINE 4 M3
    players, including the Level Cap release and the third awakening1.
• No notable lift expected in the performance before the new key update.

(Unit: ¥ millions)

           Q1 2019                Q1 2020 Outlook                                  YoY % Change                                                    Q1 2019                 Q1 2020 Outlook                          YoY % Change
                                                                                                  Constant                                                                                                                         Constant
            Actual            Low-end             High-end             As-Reported                         2                                        Actual             Low-end             High-end         As-Reported                     2
                                                                                                  Currency                                                                                                                         Currency
              57,550              33,455 ~             37,600        (42%) ~ (35%)             (40%) ~ (32%)                                           22,357              32,258 ~            33,995       44% ~     52%         51% ~ 59%

                                          57,550
                                                                        37,600          Q1                                                                                                                   33,995      Q1
                                                                                                                                                                                   22,357

                                            2019                         2020                                                                                                       2019                       2020
                                                                      (High-end)                                                                                                                            (High-end)
       1   Third awakening allows players to gain new skills for their characters
       2   Constant currency is a non-GAAP measure used to show performance unaffected by fluctuations in foreign currency exchange rates. Constant-currency basis amounts are calculated using the
           average foreign currency exchange rates for the comparable period in the prior year and applied to the current period. As an example, we calculate royalty revenues from China Dungeon&Fighter
           by applying the same CNY/USD, USD/KRW and KRW/JPY exchange rates from last year's same fiscal quarter.                                                                                                 © 2020 NEXON Co., Ltd. All Rights Reserved.   27
       3   Official titles are EA SPORTS™ FIFA ONLINE 4 (PC) and EA SPORTS™ FIFA ONLINE 4 M (mobile).
Q1 2020 Japan / North America /
Europe and Others1 Outlook
 Japan                                                                                            North America                                                                      Europe and Others1
 Expect revenues to decrease Y/Y                                                                  Expect revenues to decrease Y/Y                                                    Expect revenues to decrease Y/Y
 • Expect to benefit from MapleStory M, which                                                     primarily due to the deceleration of                                               • Y/Y revenue decrease primarily due to the
      launched in Q2 2019                                                                         Choices3,           Darkness Rises and AxE                                              deceleration of AxE, Choices3, Darkness Rises
 • Expect this to be more than offset by:                                                                                                                                                 and MapleStory M
      •     Y/Y decrease in revenues from browser-based                                                                                                                              • Launched the new mobile game World of
            mobile business due to the disposition of gloops                                                                                                                              Dragon Nest in South East Asia on January 8th
      •     Deceleration of FAITH, Dynasty Warriors:
            Unleashed and OVERHIT

(Unit: ¥ millions)

  Q1 2019          Q1 2020 Outlook                      YoY % Change                           Q1 2019              Q1 2020 Outlook               YoY % Change                        Q1 2019            Q1 2020 Outlook                  YoY % Change
                                                  As-                Constant                                                                 As-             Constant                                                               As-               Constant
   Actual        Low-end       High-end                                       2                 Actual         Low-end         High-end                                2               Actual       Low-end         High-end                                    2
                                                Reported             Currency                                                               Reported          Currency                                                             Reported            Currency
      3,833          1,596 ~       1,742    (58%) ~ (55%)        (57%) ~ (54%)                      4,166            2,481 ~      2,692   (40%) ~ (35%)    (40%) ~ (35%)                   5,171          4,247 ~      4,660   (18%) ~ (10%)        (16%) ~     (8%)

                                                                                                                                                                                                             5,171                     4,660         Q1
                       3,833                                                                                           4,166
                                                                                                                                               2,692       Q1
                                                   1,742         Q1

                        2019                       2020                                                                2019                    2020                                                          2019                      2020
                                                (High-end)                                                                                  (High-end)                                                                              (High-end)

      1   "Europe and Others" includes Europe as well as other   2   Constant currency is a non-GAAP measure used to show performance unaffected by fluctuations in foreign currency exchange rates.
          Asian countries and South American countries.              Constant-currency basis amounts are calculated using the average foreign currency exchange rates for the comparable period in the
                                                                     prior year and applied to the current period. As an example, we calculate royalty revenues from China Dungeon&Fighter by applying
                                                                     the same CNY/USD, USD/KRW and KRW/JPY exchange rates from last year's same fiscal quarter.
                                                                                                                                                                                                                       © 2020 NEXON Co., Ltd. All Rights Reserved.   28
                                                                 3   Official title is Choices: Stories You Play.
Q1 2020 Operating Income Outlook

(Unit: ¥ billions)

                                                                                                                                                  -   Decreased revenues
                                              Y/Y Operating Income Comparison
                                                                                                                                                  -   Increased HR costs1, primarily due to annual
                                                                                                                                                      salary hike
                                     12.4

                                                                                                                       2.2                        -   Increased variable costs including:
                                                            1.0                    1.0                   1.7
                                                                                                                                                       •   PG fees associated with revenue growth in Korea
                                                                                                                                                       •   Royalty costs in relation to increased contributions
                                                                                                                                                           from publishing titles
           52.6
                                                                                                                                   42.1           + Decreased marketing costs. Expect a decrease
                                                                                                                                                      in promotion costs for Choices2 and decreased
                                                                                                                                                      new title launches compared with Q1 2019

                                                                                                                                                  + Others include:
                                                                     1
    Operating Income               Revenue                HR Costs           Variable Costs         Marketing Costs   Others   Operating Income        •   Decreased impairment loss3 of ¥2.9 billion
        2019 Q1                    decrease                                                                                        2020 Q1
                                                                                                                                 (High-end)
                                                                                                                                                           recorded in Q1 2019
                                                                                                                                                       •   Increased amortization costs on intangible
                                                                                                                                                           assets associated with the launch of V4
                                                                                                                                                       •   Decreased “Other Income” recorded in Q1 2019

       1   HR costs includes HR cost (COGS), HR cost (SG&A) and R&D (SG&A).
       2   Official title is Choices: Stories You Play.
       3   In Q1 2019, we recorded a ¥2.9 billion impairment loss primarily on prepaid royalties.                                                                          © 2020 NEXON Co., Ltd. All Rights Reserved.   29
Shareholder Return

• Completed the share repurchase program of ¥30 billion initiated in
 September 2019 on January 29th, 2020

• On February 13th, 2020, the board of directors approved the plan to:
   • Cancel the entire shares bought back on February 28, 2020.

   • Reinitiate a shareholder dividend of ¥2.5 per share to shareholders
     registered on our shareholder register as of December 31, 2019

   • Pay the same dividend per share at the interim and year-end of FY 2020

                                                                © 2020 NEXON Co., Ltd. All Rights Reserved.   30
2020 China Dungeon&Fighter Update Schedule

    Period   Tier 1 Content Update                    2019                                    2020

             Lunar New Year Update               January 21st                            January 14th
     Q1
             Level Cap Release                   January 21st                            March

             Labor Day Update                    April 23rd                              TBD
     Q2
             Anniversary Update                  June 18th                               TBD

             Summer Update                       July 4th                                TBD
     Q3
             National Day Update                 September 24th                          TBD

     Q4      Winter Update                       N/A                                     TBD

                                                                                  Indicates financially important updates

                                     * 2020 update schedule is subject to change depending on various operational factors

                                                                                                © 2020 NEXON Co., Ltd. All Rights Reserved.   31
Pipeline1

 CHINA                                                            KOREA                                                                                               NORTH AMERICA & REST OF THE WORLD

                                                                                               The kingdom of
                                                                        SINoALICE             the winds: Yeon2                         KartRider: Drift2                  SINoALICE                     KartRider: Drift2

                                                                                                                                                                        Arcane Citadel:                              Dynasty Warriors 9
                                                                                MABINOGI MOBILE2                         TALESWEAVERM2                     KurtzPel     Duel of Mages     Final Fantasy XI R2             Mobile

            Dungeon&Fighter 2D Mobile2

                                                                                              Final Fantasy XI R2
 JAPAN

                                 Dynasty Warriors 9                  Dungeon&Fighter         Dynasty Warriors 9
                                      Mobile                           2D Mobile2                 Mobile                                 Project BBQ3                                     Embark Studios
     Final Fantasy XI R2

                                                                                                                                                                                          PC ONLINE             MOBILE         CONSOLE

 1   Chart is illustrative excerpt of pipeline.   2   Games based on original IPs.             3   PC 3D action RPG based on Dungeon&Fighter universe.
 4   The letters, graphics, symbols, logos and other marks, and illustrations, characters and other works, which are shown in this material are trademarks,
     registered trademarks, copyrighted works or other legally protected materials owned by respective right holders.
                                                                                                                                                                                            © 2020 NEXON Co., Ltd. All Rights Reserved.   32
Appendix

           © 2020 NEXON Co., Ltd. All Rights Reserved.   33
Summary of Results and Key Operational Metrics
 (Unit: ¥ millions, except per share data)

                                                       Q1 2018                   Q2 2018                Q3 2018               Q4 2018                 Q1 2019                Q2 2019            Q3 2019          Q4 2019                  YoY%

(By Region)
 China                                                      ¥60,704                   ¥23,183                ¥31,216            ¥17,863                    ¥57,550                 ¥21,282        ¥17,783             ¥15,632                 (12%)
 Korea                                                           19,596                 15,459                 23,168            15,567                      22,357                    19,387      23,657               24,393                  57%
 Japan                                                            2,925                   3,281                 3,541                4,321                     3,833                    4,608       3,151                 2,262               (48%)
 North America                                                    4,074                   3,224                 4,891                4,309                     4,166                    4,000       3,332                 3,189               (26%)
                            1
 Europe and Others                                                3,215                   2,647                 6,516                4,021                     5,171                    4,588       4,434                 3,767                 (6%)
(By Platform)
      2
 PC                                                              76,074                 37,037                 53,036            32,724                      77,639                    38,125      38,554               33,647                    3%
 Mobile                                                          14,440                 10,757                 16,296            13,357                      15,438                    15,740      13,803               15,596                  17%
Revenue                                                     90,514                    47,794                 69,332              46,081                    93,077                  53,865          52,357             49,243                      7%
Operating income                                            54,729                    16,012                 23,712               3,907                    52,601                  12,987          24,419               4,518                   16%
Net income 3                                                46,615                    32,248                 22,305               6,504                    53,400                  19,145          39,844               3,275                 (50%)

Earnings per share                                               52.80                  36.24                  24.98                 7.27                    59.67                     21.37        44.42                 3.68

FX rate
 100 KRW/JPY                                                     10.11                   10.12                   9.96                10.03                      9.80                     9.43        9.00                  9.26                 (8%)
 CNY/JPY                                                         17.07                   17.10                  16.39                16.30                    16.33                     16.10       15.32                15.46                  (5%)
 USD/JPY                                                     108.30                    109.07                 111.46             112.90                     110.20                     109.90      107.35              108.76                   (4%)

KPI (Excluding Mobile)
  MAU (millions)                                                   35.3                    33.3                   37.5                32.7                      35.0                     34.6        35.4                  27.4               (16%)
  Pay Rate                                                       19.3%                   20.5%                  16.3%                16.5%                    16.5%                    16.4%        11.5%                14.8%
  ARPPU (as-reported)                                             8,028                   3,313                 5,260                3,392                     9,265                    3,885       4,837                 4,223                 24%

      1   "Europe and Others" includes Europe as well as other            2   PC revenues include other revenues besides PC      3   Net income refers to net income attributable to
          Asian countries and South American countries.                       online games and mobile games.                         owners of the parent, as stated in Nexon’s
                                                                                                                                     consolidated financial results.
                                                                                                                                                                                                          © 2020 NEXON Co., Ltd. All Rights Reserved.   34
COGS and SG&A
 (Unit: ¥ millions)

                                                                                                     FY2018                                                                                               FY2019
                                                                   Q1                       Q2                       Q3                       Q4                           Q1                     Q2                        Q3                      Q4
                                      1
Total Cost of Revenue                                              ¥14,337                 ¥13,135                  ¥14,980                  ¥15,101                     ¥15,899                 ¥15,055                  ¥14,180                ¥14,451
                2
  Royalty                                                               3,979                    2,980                     3,868                  3,626                        4,510                   4,119                    4,344                  3,694
                                  3
  HR cost (COGS)                                                        6,277                    6,394                     6,833                  7,076                        7,163                   6,685                    6,010                  7,367
                              4
  Other (COGS)                                                          4,081                    3,761                     4,279                  4,399                        4,226                   4,251                    3,826                  3,390

Total SG&A 1                                                        21,474                   20,562                   23,725                   24,039                      22,055                  22,178                    19,189                21,695
  HR cost                                                               5,434                    5,265                     5,305                  5,500                        4,770                   4,756                    3,964                  4,475
               5
  PG fee                                                                5,553                    4,433                     6,492                  5,458                        6,108                   5,829                    4,952                  5,661
  R&D                                                                   2,124                    2,412                     2,674                  3,252                        3,266                   3,499                    3,950                  4,180
  Marketing/advertising expenses                                        5,631                    5,610                     6,279                  6,846                        5,194                   5,500                    3,767                  4,260
  Depreciation and amortization                                           656                      605                     1,297                     831                         866                      792                      820                 1,490
  Other                                                                 2,076                    2,237                     1,678                  2,152                        1,851                   1,802                    1,736                  1,629

                      6
Other Income                                                              359                    3,006                      382                      116                         429                      181                   7,708                        741
                          7
Other Expense                                                             333                    1,091                     7,297                  3,150                        2,950                   3,826                    2,277                  9,320
 Includes: impairment loss                                                319                      805                     7,266                  2,985                        2,890                   3,648                    2,228                  9,240

     1   Breakdown of COGS and SG&As are unaudited.            4   Other (COGS) primarily consists of depreciation and      5   PG fee in SG&A includes commissions made to            6   Other Income includes other non-operating income, reversal of
                                                                   amortization of assets related to existing games,            external payment gateway companies when users              deferred revenue, gain on sale of properties, gain on change in
     2   Royalty includes royalties paid to third-party            connection fees (mainly comprised of co-location and         purchase in-game items in PC Online games that we          equity and gain on step acquisition.
         developers in order for us to obtain the right to         datacenter fees, internet bandwidth and access fees),        service. It also includes mobile carrier-related
         publish their games.                                      and the costs of purchasing and maintaining our              commissions we pay regarding our Japanese mobile       7   Other Expense includes other non-operating expenses, loss on
                                                                   servers and computer equipment.                              browser games, commissions we pay to Apple/Google          sale/disposal of properties, loss on impairment of tangible
     3   HR cost includes salaries, bonuses and benefits for                                                                    regarding our mobile native games globally, and            fixed assets, loss on impairment of intangible assets, loss on
         our live game developers, who support post launch                                                                      platform commission fees related to mobile browser         impairment of other fixed assets and loss on change in equity.
         servicing, updating and support for our games.                                                                         games.                                                     It also includes impairment loss of game IPs and goodwill.

                                                                                                                                                                                                                 © 2020 NEXON Co., Ltd. All Rights Reserved.       35
P&L Below Operating Income
 (Unit: ¥ millions)

                                                                                                 FY2018                                                                                           FY2019

                                                                   Q1                    Q2                      Q3                      Q4                     Q1                       Q2                        Q3                      Q4

Operating Income                                                 ¥54,729                ¥16,012               ¥23,712                    ¥3,907             ¥52,601                    ¥12,987                  ¥24,419                    ¥4,518

                          1
Finance Income                                                        1,869               18,026                    2,849                    3,406                 9,810                    9,663                   18,910                   3,051

                      2
Finance Costs                                                         3,225                   222                   1,856                      926                    265                      466                       723               12,212
Equity profit / (loss) of affiliates,
                                                                          (23)                (187)                    (97)                   (530)                  (334)                    (101)                        14                     96
equity method companies
Income / (Loss) before Income Tax                                  53,350               33,629                  24,608                     5,857                61,812                   22,083                   42,620                   (4,547)

Tax expense                                                           6,845                 1,613                   4,982                    1,027                 9,005                    3,588                     3,596                 (7,457)

Non-controlling interests                                               (110)                 (232)                (2,679)                 (1,674)                   (593)                    (650)                     (820)                   (365)

Net income 3                                                       46,615               32,248                  22,305                     6,504                53,400                   19,145                   39,844                    3,275

     1   Finance Income includes interest income primarily on cash deposits. 2018   2   2018 Q1, Q3 and 2019 Q4 Finance Costs are primarily caused by FX    3   Net income refers to net income attributable to owners of the parent, as
         Q2, Q4 and 2019 Q1, Q2, Q3 Finance Income includes FX conversion gains         conversion loss related to foreign currency deposits and accounts       stated in Nexon’s consolidated financial results.
         related to foreign currency deposits and accounts receivable.                  receivable.

                                                                                                                                                                                                           © 2020 NEXON Co., Ltd. All Rights Reserved.   36
Cash Flow Statement
(Unit: ¥ millions)

                                                                                   12 months ended    12 months ended
                                                                                    December 31,       December 31,
                                                                                        2018               2019

                     Cash flows from operating activities                                 ¥118,018           ¥105,073

                     Cash flows from investing activities                                  (68,183)             (28,625)

                     Cash flows from financing activities                                    8,260              (27,742)

                     Net increase / (decrease) in cash and cash equivalents                 58,095               48,706

                     Cash and cash equivalents at beginning of fiscal year                 153,242             205,292

                     Effect of exchange rate change on cash and cash equivalents            (6,045)                  (362)

                     Cash and cash equivalents at end of fiscal year                       205,292             253,636

                                                                                                             © 2020 NEXON Co., Ltd. All Rights Reserved.   37
Balance Sheet
(Unit: ¥ millions)
                                    December 31,    December 31,                                         December 31,           December 31,
                                       2018            2019                                                 2018                   2019

     Asset                                                          Liability
     Current Assets                                                 Current liabilities
        Cash and cash equivalents        ¥205,292        ¥253,636      Current tax liabilities                   9,352                        7,403
        Other deposits                    276,550         257,331      Current borrowings                        4,324                        2,223
        Other current assets               52,818          42,529      Others                                   28,833                      31,542
        Total current assets             534,660         553,496       Total current liabilities               42,509                      41,168
     Noncurrent assets                                              Noncurrent liabilities
        Tangible assets                    25,166          23,481      Non-current borrowings                           -                            -
        Goodwill                           26,529          42,480      Others                                   42,012                      46,789
        Intangible assets                  26,021          21,519      Total noncurrent liabilities            42,012                      46,789
        Others                             37,622          78,112   Total liabilities                          84,521                      87,957
        Total noncurrent assets          115,338         165,592
     Total assets                        649,998         719,088    Shareholders' equity
                                                                       Capital stock                            14,402                      17,967
                                                                       Capital surplus                          34,814                      35,688
                                                                       Treasury shares                                (1)                  (27,219)
                                                                       Other equity interest                    64,068                      38,511
                                                                       Retained earnings                       441,985                    555,038
                                                                       Non-controlling interests                10,209                      11,146
                                                                       Total equity                           565,477                    631,131
                                                                    Total liabilities and total equity        649,998                    719,088

                                                                                                                © 2020 NEXON Co., Ltd. All Rights Reserved.   38
Notice of correction to P&L by Reporting Segment

 P&L by Reporting Segment1
                                                                                                                                                  Corrections has been made to Q1 2019 Investor Presentation, disclosed on May 10,
                                                                                                                                                  2019. Corrected “Revenue from external customers” of each reporting segment in
                                                                                                                                                  Q1 2019 are underlined.

 (Unit: ¥ millions)

                                                                                                      FY2018                                                                             FY2019
                                                                  Q1                        Q2                        Q3               Q4                    Q1                 Q2                     Q3                       Q4
Japan
 Revenue from external customers                                      ¥2,469                    ¥2,112                 ¥2,593           ¥2,980                 ¥2,469             ¥1,884                  ¥1,952                    ¥1,344
 Segment profit/(loss)                                                 (1,756)                   (2,018)                   (1,806)          (1,649)                (958)             (1,165)                 (455)                    (912)
Korea
 Revenue from external customers                                      81,826                    40,857                 60,883           36,851                 84,572             47,079                  45,521                    43,261
 Segment profit/(loss)                                                57,739                    17,962                 33,661           11,275                 56,865             19,038                  20,849                    15,513
China
 Revenue from external customers                                          646                       597                      878            1,206                   870                669                    695                      587
 Segment profit/(loss)                                                    353                       242                      523              848                   596                324                    381                      256
North America
 Revenue from external customers                                       5,440                      4,187                    4,943            4,723                 4,716              3,862                  3,730                    3,648
 Segment profit/(loss)                                                 (1,460)                   (1,951)                   (1,704)          (3,375)               (1,385)            (1,613)                (1,233)                  (1,296)
Others
 Revenue from external customers                                          133                         41                      35              321                   450                371                    459                      403
 Segment profit/(loss)                                                   (177)                     (135)                     (55)            (158)                    2                 36                   (560)                    (435)
Adjustments
 Revenue from external customers                                                 -                         -                       -                -                     -                  -                       -                         -
 Segment profit/(loss)                                                       4                        (3)                      8                0                     2                 12                       6                      (29)
Total
 Revenue from external customers                                      90,514                    47,794                 69,332           46,081                 93,077             53,865                  52,357                    49,243
 Segment profit/(loss)                                                54,703                    14,097                 30,627               6,941              55,122             16,632                  18,988                    13,097

        1   Representation based on location of Nexon’s entities; not based on regions in which revenues originate.

                                                                                                                                                                                                 © 2020 NEXON Co., Ltd. All Rights Reserved.       39
Number of Employees by Reporting Segment

                      March 31,        June 30,        September 30,   December 31,    March 31,        June 30,      September 30,          December 31,
Full-time employees    2018             2018               2018           2018          2019             2019             2019                  2019

 Japan                        545             551                557            535            535             516                 503                       422
 Korea                      4,439            4,878             4,988           5,125         5,168            5,232             5,225                     5,149
 China                        227             218                219            223            223             204                 207                       207
 North America                424             428                465            479            487             485                 422                       418
 Others                           81              74              78             79                86          131                 212                       232
 Total                     5,716            6,149             6,307           6,441         6,499            6,568             6,569                     6,428

                                                                                                                         © 2020 NEXON Co., Ltd. All Rights Reserved.   40
NJ Corporate Entity Financial Statement1 (1)
(Unit: ¥ millions)

   Condensed Income Statement                                                     FY2013                       FY2014                FY2015       FY2016        FY2017                 FY2018
   Revenue                                                                            ¥11,236                        ¥7,987            ¥5,815       ¥5,208        ¥5,927                     ¥7,024
        Cost of revenue                                                                     4,829                       3,679            3,117        3,134         3,438                       3,510
   Gross profit                                                                           6,407                        4,308            2,698        2,074         2,489                       3,514
        SG&A                                                                                7,275                       7,585            6,470        6,736         6,941                       9,447
   Operating profit / (loss)                                                                (868)                     (3,277)           (3,772)      (4,662)       (4,452)                   (5,933)
        Non-operating income                                                              14,186                      28,335            19,163          636         5,049                     15,646
          Includes: dividend income                                                       12,926                      24,613            18,869             22       4,612                     15,025
        Non-operating expenses                                                                603                          526           1,246        1,826         1,969                       9,352
   Ordinary income / (loss)                                                             12,715                       24,532            14,145        (5,852)       (1,372)                        361
        Extraordinary income                                                                         -                     244           6,443          852              58                        109
        Extraordinary losses                                                                4,451                     18,717             6,897       39,573         9,643                          138
   Income / (loss) before income taxes                                                    8,264                        6,059           13,691       (44,573)      (10,957)                        332
        Tax expense                                                                           725                       4,656            5,519         (201)          234                          755
   Net income / (loss)                                                                    7,539                        1,403            8,172       (44,372)      (11,191)                      (423)

    1     Excerpt of NEXON Co., Ltd.'s standalone financial statements included in Annual Securities Report (Yuuka Shouken
          Houkokusho). Annual Securities Report for FY2019 will be released in late March 2020. Please note NEXON Co., Ltd.'s
          standalone financial statements are based on J-GAAP (Nexon Group's consolidated financial statements are based on IFRS).

                                                                                                                                                                    © 2020 NEXON Co., Ltd. All Rights Reserved.   41
NJ Corporate Entity Financial Statement1 (2)
(Unit: ¥ millions)
                                                                                       December 31,          December 31,           December 31,       December 31,       December 31,         December 31,
                              Condensed Balance Sheet
                                                                                          2013                  2014                   2015               2016               2017                 2018
                              Current assets                                                  ¥45,632               ¥46,760             ¥70,444            ¥52,632            ¥42,946              ¥55,209
                                 Includes: cash and cash equivalents                             32,367                30,711             68,997             49,531             41,868               53,096
                              Non-current assets                                              135,011               101,337              38,190               6,438              5,494               4,836
                                 Property, plant and equipment                                      183                   222                200                 74                    7                     3
                                 Intangeble assets                                                    56                   60                 66                      -                    -                     -
                                 Investments and other assets                                  134,772               101,055              37,924              6,364              5,487                4,833
                              Total assets                                                    180,643               148,097             108,634             59,070             48,440               60,045

                              Current liabilities                                               13,103               16,345               3,506               2,341              1,796               2,303
                              Non-current liabilities                                           39,644               23,154                 498                 448                457                  415
                              Total liabilities                                                 52,747               39,499               4,004               2,789              2,253               2,718

                              Shareholder's equity                                            110,163                98,122              99,779             50,669             41,230               50,838
                                 Capital stock                                                   51,868                52,332             56,227              3,307              9,183               14,199
                                 Capital surplus                                                 51,728                42,192             36,087             88,621             43,021               36,846
                                    Includes: other capital surplus                              50,000                40,000             30,000             86,064             34,588               23,397
                                 Retained earnings                                                6,567                 3,598              7,465             (41,259)           (10,974)               (206)
                                    Includes: other retained earnings                             6,130                 2,724              6,160             (41,476)           (11,191)               (423)
                                 Treasury shares                                                      (0)                       -                  -              (0)                      -                (0)
                              Valuation and translation adjustments                             15,844                 6,536                246                  77                (10)                 (21)
                              Subscription rights to shares                                      1,889                 3,940              4,605               5,535              4,967               6,510
                              Total net assets                                                127,896               108,598             104,630             56,281             46,187               57,327

                                                                                       December 31,          December 31,           December 31,       December 31,       December 31,         December 31,
                              Statement of changes in equity (excerpt)
                                                                                          2013                  2014                   2015               2016               2017                 2018
                              Payment of dividends                                              (4,807)               (4,372)             (4,305)            (4,352)               -                    -
                              Acquisition of treasury shares                                          (0)           (10,000)             (10,000)            (5,000)           (10,000)                     (1)
                              Cancellation of treasury shares                                           -            10,000              10,000               5,000            10,000                   -

    1    Excerpt of NEXON Co., Ltd.'s standalone financial statements included in Annual Securities Report (Yuuka Shouken
         Houkokusho). Annual Securities Report for FY2019 will be released in late March 2020. Please note NEXON Co., Ltd.'s
         standalone financial statements are based on J-GAAP (Nexon Group's consolidated financial statements are based on IFRS).

                                                                                                                                                                                                     © 2020 NEXON Co., Ltd. All Rights Reserved.   42
Historical Financials
(Unit: ¥ billions)

                                            Revenue by Region1                                                                                                            Revenue by Platform

                                                                                               253.7
                                                                                                                 248.5                                                                                                  253.7
                                                                                                                                                                                                                                       248.5
                                                                                234.9            16.4
                                                                                                                 18.0                                                                                     234.9
                                                                                  12.6           16.5
                                                                                                                 14.7                                                                                                     54.9
                                                                                   9.3           14.1
                                                                                                                 13.9                                                                                                                    60.6
                                                                                  17.1                                                                                                                     51.4
                                                   190.3
                                                                    183.1                                                                                                         190.3
                                   172.9              7.9                                                                                                                                        183.1
                                                      9.0            9.7                                                                                           172.9
                                      5.1                            8.1                         73.8
                    155.3             5.5            21.0                                                                                           155.3                           42.0
                                                                    16.9          80.5                           89.8                                                                              43.3
                       6.6                                                                                                                                           34.2
                       5.4           29.9
                                                                                                                                                     28.4
                      36.4
    108.4                                            77.0                                                                              108.4
                                                                    74.2
      6.7                                                                                                                               8.2
      5.4                            65.4                                                                                                                                                                                198.9
                                                                                                                                                                                                          183.5                         188.0
      19.2            43.0
                                                                                                                                                                                   148.3
                                                                                                133.0                                                               138.7                         139.8
      28.7                                                                                                                                           127.0
                                                                                 115.4                           112.2
                                                                                                                                       100.2
                                                     75.4           74.2
                      63.9           67.0
      48.4

     FY12            FY13            FY14           FY15            FY16         FY17            FY18            FY19                  FY12          FY13           FY14           FY15           FY16    FY17           FY18           FY19
                                                                                                             2
                   China         Korea         Japan          North America          Europe and Others                                                                                 PC 3     Mobile

      1   Based on the regions in which revenues originate; not a           2   "Europe and Others" includes Europe as well as other           3   PC revenues include other revenues besides PC online
          representation of revenues according to Nexon entities.               Asian countries and South American countries.                      games and mobile games.
                                                                                                                                                                                                          © 2020 NEXON Co., Ltd. All Rights Reserved.   43
Key Titles by Region1
                China                                                            Korea                                                   Japan                        N. America and Rest of the World

           Dungeon&Fighter                           MapleStory             Dungeon&Fighter               KartRider                    MapleStory M                            MapleStory             DomiNations

                                                    EA SPORTSTM               EA SPORTSTM
               MapleStory                           FIFA ONLINE 4           FIFA ONLINE 4 M             MapleStory M                    MapleStory                           MapleStory M            Darkness Rises

                                                                                                                                                                                                                                     PC ONLINE

                KartRider                                                                                                                                                      Choices:
                Rush Plus                           Sudden Attack                Mabinogi                      V4                        Mabinogi                           Stories You Play         Moonlight Blade                 MOBILE

                                                                                                    1
                                                       FY2019 Revenue by Region                                                                                                    FY2019 Revenue by Platform
(Unit: ¥ billions)
                                                                                                                         Europe and Others2
                  112.2                                                                                                          7%
                                                                                                             North America
                                                                                                                    6%
                                  89.8
                                                                                                            Japan
                                                                                                                                                                                            Mobile
                                                                                                             6%
                                                                                                                                                                                             24%
                                                                                                                                         China
                                                                                                                                         45%

                                                                   14.7         18.0                                   Korea
                                                 13.9                                                                                                                                                             PC3
                                                                                                                        36%                                                                                       76%

                   China          Korea          Japan             North      Europe
                                                                                       2
                                                                  America   and Others

    1   Based on the regions in which revenues originate; not a             2   "Europe and Others" includes Europe as well as other     3   PC revenues include other revenues besides PC online
        representation of revenues according to Nexon entities.                 Asian countries and South American countries.                games and mobile games.
                                                                                                                                                                                                         © 2020 NEXON Co., Ltd. All Rights Reserved.   44
Long-term Growth Vision1

                                       REVENUE

                                                            M&A          New Games

                                                                         Live Games

                                                     2019
                                                                  YEAR

 1   Above graph is illustrative and not to scale.

                                                                               © 2020 NEXON Co., Ltd. All Rights Reserved.   45
Glossary of Terms
                   Term / Abbreviation                                                                      Meaning

                                                    AOS is a sub-genre of the real-time strategy genre, in which two teams of players compete with each other in
 AOS
                                                    discrete games, with each player controlling a single character through an RTS-style interface.

 FPS (first person shooter)                         A game in which the player plays from the point of view of the game character in three-dimensional graphics

                                                    A game that is usually played from a third-person on perspective, in which the player controls vast numbers of in-
 RTS (real-time strategy)
                                                    game characters in a tactical scenario

 MMORPG                                             An online role-playing game that has a “massive” number (usually several hundred or more) of players who play
 (massively multiplayer online role playing game)   concurrently

                                                    Monthly total number of users who logged in and played Nexon’s PC online games.
 MAU                                                MAU in this presentation is the quarterly average of such numbers. Nexon’s PC online games include game
 (monthly active user)                              developed and serviced by Nexon group, games developed by Nexon group and serviced by non-Nexon group
                                                    publishers, and game developed by non Nexon group acquired publishing rights.

                                                    The amount obtained by dividing monthly PC online game gross revenues by the number of monthly paying users.
 ARPPU
                                                    ARPPU in this presentation is the quarterly average of such numbers. Gross revenues used in the calculation are in-
 (average revenue per paying user)                  game sales, and exclude other revenues included in PC revenues such as sales from PC café time charge.

 Pay Rate                                           The percentage rate obtained by dividing the number of monthly paying users by the number of monthly active users.
                                                    Pay rate in this presentation is calculated using the quarterly average of such numbers.

                                                    The maximum number of users concurrently accessing a game at a particular moment. MCCU is generally used to
 MCCU (maximum concurrent users)                    measure the popularity of a game

                                                    A trial version (beta version) of a game offered for a certain period of time to a limited number of users or groups.
 Closed Beta Test (CBT)                             A Limited Beta Test in an even smaller-scale trial mode of a game with fewer numbers of users or group

                                                    A trial version (beta version) of a game a certain period of time without restrictions on participation.
 Open Beta Test (OBT)                               OBT is usually conducted after CBT.

 Tier One Update                                    Large scale update to existing PC games typically launched in Q1 or Q3 around peak season

 Tier Two Update                                    Smaller update to existing PC games released throughout the year

                                                    Games that are designed to be played continuously for hours and enable thousands of concurrent users to interact
 Immersive Games                                    with each other in real time. Our games are architected to evolve over years., in contrast to packaged goods games,
                                                    which often have finite story lines and comparatively less open-ended player engagement.

                                                                                                                                               © 2020 NEXON Co., Ltd. All Rights Reserved.   46
Disclaimer
 This presentation is prepared to offer reference information about NEXON group to the investors and is intended to
 generally provide investors and analysts with financial and operational information about Nexon, but not to solicit or
 recommend any sale or purchase of stock or other securities of Nexon. NEXON Co., Ltd. (“Nexon”) has not verified and
 would assume no responsibility for the accuracy, appropriation, or completeness thereof. This presentation does not
 contain all relevant information relating to Nexon or the sale of its shares, including, without limitation, the information
 that would be stated under the captions “Risk Factors”, “Management’s Discussion and Analysis of Financial Condition
 and Results of Operations” and “Business” in an annual report. Any investment decision with respect to any shares of
 Nexon should be made solely upon the basis of the information contained in the disclosure documents and is qualified
 in its entirety by reference to the detailed information appearing in the disclosure documents.

 This presentation includes non-GAAP and non-IFRS financial measures, including but not limited to key performance
 indicators, as well as ratios calculated on the basis thereof. These non-GAAP and non-IFRS financial measures should
 not be considered in isolation or as a substitute for the most directly comparable financial measures included in our
 consolidated financial statements and presented in accordance with IFRS.

 This presentation includes forward-looking statements. In some cases, you can identify forward-looking statements by
 terms such as “anticipate”, “assume”, “believe”, “estimate”, “expect”, “forecast”, “may”, “plan”, “potential”, “predict”,
 “seek”, “should”, or “will”, or by other similar terminology. These statements discuss expectations, identify strategies,
 contain projections of Nexon’s financial condition or results of operations or state other forward-looking information.
 The forward-looking statements in this presentation are subject to various risks, uncertainties and assumptions about
 Nexon’s business and results of operations. The expectations expressed in these forward-looking statements may not
 be achieved, and actual results could differ materially from and be worse than expectations. Potential risks and
 uncertainties that could cause actual results to differ materially from expectations include, without limitation:

                                                                                                              © 2020 NEXON Co., Ltd. All Rights Reserved.   47
Disclaimer
 •    Continued growth and popularity of Nexon’s key titles;
 •    Nexon’s ability to maintain favorable relationships with key licensing partners;
 •    Nexon’s continued ability to offer games in China, through local partners or otherwise;
 •    Nexon’s ability to compete effectively in the online games industry;
 •    Nexon’s ability to address hacking, viruses, security breaches and other technical challenges;
 •    Fluctuations in currency exchange rates;
 •    Nexon’s ability to maintain and further develop its brand name;
 •    Effective acquisition of new companies, businesses, technologies and games from third parties and the possibility
      of recognizing impairment losses;
 •    Continued growth of the online games market, including the underlying infrastructure, and free-to-play/item-based
      revenue generation model;
 •    Nexon’s ability to adapt to new technologies;
 •    Nexon’s ability to enter into licensing arrangements for third-party titles on terms favorable to it;
 •    Effective defense of Nexon’s intellectual property; and
 •    Legislative, regulatory, accounting and taxation changes in the countries in which Nexon operates.

 Nexon does not intend, and disclaims any duty, to update or revise any forward-looking statements contained in this
 presentation to reflect new
 information, future events or otherwise. We caution you not to place undue reliance on the forward-looking statements
 contained in this presentation.

                                                                                                              © 2020 NEXON Co., Ltd. All Rights Reserved.   48
Q1 2020 Earnings Release Schedule

 Q1 2020 financial results are scheduled for release on

 Wednesday, May 13th, 2020.
 Nexon management is scheduled to host an earnings conference call for investors, analysts and the media on the same day.

 Details of the earnings conference call will be available on our IR website about a month prior to the release.

                                                                                                             © 2020 NEXON Co., Ltd. All Rights Reserved.   49
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