GAMEVIL’s 4th Quarter of 2017 Financial

Results & Strategic Plans for 2018

Feb 8, 2018

Some content may reflect forward-looking statements and have been prepared based on

the expectations according to the dates on which these statements were made. There can

be no assurance that the forward-looking statements used by GAMEVIL are correct as

results can differ from expectations. Therefore GAMEVIL will not be responsible for

individual investment decisions based solely on this material. GAMEVIL disclaims any duty

to update the information in this material to reflect future events or circumstances.

Disclaimer

1. Performance Overview

2. Sales Breakdown

3. Cost Breakdown

4. Business Strategy for 2018

Contents

38,438

25,39522,234

-2,667 -3,751 -8,5592,808 2,514

-2,310

'16 4Q '17 3Q '17 4Q

2016 2017 YoY

Sales 161,483 106,372 -34.1%

Operating profit 4,279 -19,589Deficit

OPM 2.6% -18.4%

Net profit 29,273 9,060-69.0%

NP% 18.1% 8.5%

4Q

FY17 4Q Sales 22.2B KRW, 4Q Operating loss 8.6B KRW

[Sales] Sales has decreased due to declining sales of live games, but stabilizing

[Profit] Operating profit has decreased q-q due to increase in marketing cost

FY17 Sales 106.4B KRW Annual operating loss 19.6B KRW Annual net loss 9.1B KRW

[Sales] Decrease of existing releases, schedule of new releases affected annual sales

[Profit] Net profit and Operating profit has decreased due to decrease in sales

YTD 161,483

106,372

4,279-19,589

29,2739,060

2016 2017

Sales

Operating margin

Net profit

2016 4Q 2017 3Q 2017 4Q QoQ YoY

Sales 38,438 25,395 22,234 -12.4% -42.2%

Operating profit -2,667 -3,751 -8,559-128.2% -220.9%

OPM -6.9% -14.8% -38.5%

Net profit 2,808 2,514 -2,310Deficit Deficit

NP% 7.3% 9.9% -10.4%

1. Performance Overview

4

(Unit: M KRW) (Unit: M KRW)

46% 45% 48%

54% 55% 52%

2016 4Q 2017 3Q 2017 4Q

Domesting International

[Domestic] FY17 4Q 10,7B KRW, FY17 45.4B KRW

[Int’l] FY17 4Q 11.5B KRW, FY17 61.0B KRW

- 4Q & annual domestic and international sales has decreased, proportion of international sales maintained

2016 2017 Y-Y

Domestic 70,608 45,407 -35.7%

International 90,875 60,965 -32.9%

Asia Pacific(*) 50,927 31,990 -37.2%

N. America,Europe & Others

39,948 28,975 -27.5%

Domestic (%) 44% 43%

International (%) 56% 57%

Asia Pacific (%) 56% 52%

N. America,Europe & Others (%)

44% 48%

[YTD]

’16.4Q ’17.3Q ’17.4Q Q-Q Y-Y

Domestic 17,675 11,350 10,687 -5.8% -39.5%

International 20,763 14,045 11,546 -17.8% -44.4%

Asia Pacific(*) 11,661 6,873 5,869 -14.6% -49.7%

N. America,Europe & Others

9,102 7,172 5,678 -20.8% -37.6%

Domestic (%) 46% 45% 48%

International (%) 54% 55% 52%

Asia Pacific (%) 56% 49% 51%

N. America,Europe & Others (%)

44% 51% 49%

[4Q]

* Exclude Korea

44% 43%

56% 57%

2016 2017

Domesting International

2. Sales Breakdown

5

26,640 32,617

12,68411,411

60,46235,632

38,072

25,163

19,347

21,137

2016 2017

[Cost] 2017 total operating costs decreased to 126B KRW Y-Y by 19.9%

- Commission: Commission payments decreased in q-q and y-y due to fewer sales

- Marketing: Increased dude to releases of new titles, annual costs decreased due to effective marketing operations

- Salary: increased due to investment in R&D and human resources

7,896 7,888 8,227

4,3781,190

4,299

14,011

8,419

7,315

9,701

6,3455,768

5,119

5,3045,184

'16.4Q '17.3Q '17.4Q

Salary Marketing Commission Royalty Others

Cost Breakdown & Proportion

3. Cost Breakdown

6

* ( ) : Costs Proportion of Total Rev

12.5%(13.3%)

23.6%(25.2%)

34.1%(36.5%)

10.7%(11.4%)

19.2%(20.5%)

18.2%(20.9%)

21.8%(25.0%)

28.9%(33.2%)

4.1%(4.7%)

27.1%(31.1%)

16.8%(23.3%)

18.7%(25.9%)

23.8%(32.9%)

14.0%(19.3%)

26.7%(37.0%)

12.3%(12.0%)

24.2%(23.6%)

38.5%(37.4%)

8.1%(7.9%)

16.9%(16.5%)

16.8%(19.9%)

20.0%(23.7%)

28.3%(33.5%)

9.1%(10.7%)

25.9%(30.7%)

41,105

29,14630,794

157,204

125,960

4Q YTD

(Unit: M KRW) (Unit: M KRW)

Growth by releasing various genre games

Successful global launching

Enhance profitability by

improving business

effectiveness

▪ 10 titles to be globally launched

▪ Balanced line-up

(In-house:3rd party = 4:6)

▪ Strategically dispersed launching

plan

Timely and Successful

Game Launch

Successful Overseas Market

Penetration

ProfitableBusiness

▪ MMORPG : maximizes preemption

effect by leading the market

▪ S-RPG : lead global market with

differentiated games

▪ Sports: enhance game portfolio

and expanse M/S

with well known IP

2018, global growth and enhancement of profitability

through releasing new titles and improving effectiveness

(Qualitative & Quantitative Growth)

4. Business Strategy for 2018 - OVERVIEW

7

▪ Improve effectiveness by strategic

investment

▪ Enhance profitability with in-house

titles

▪ Create synergies with integration

of foreign subsidiaries

■ RPG, Sports, core genre mainstream games to be globally launched

Next-generation Strategy RPG

[In-house]

▪ Turn-base strategy RPG ‘Elune’

[3rd Party]

▪Hero Fostering ‘Giants War’▪Combination of strategy and action

‘Heir of Light’

Simulation RPG & Casual

[3rd Party]

▪SLG+RPG ‘Gardius Empire’

▪Real-time Strategic puzzle game

‘Cosmo Duel’

Sports Line-up[In-house]▪Reboot of Gamevil’s No.1

baseball game

▪Unreal Engine 4, ‘Fishing Master2’

[3rd Party]

▪Officially licensed NBA

basketball game

▪Officially licensed MLB

baseball game (2018 update)

MMORPG

[In-house]

▪ Global targeting MMO ‘Royal Blood’

[3rd Party]

▪ PC-Class MMO ‘Talion’

50B

* Source: GAMEVIL

2017 Global market size

58BGlobal mobile game market: 16%↑ y-y

2018 Global market size

4. Business Strategy for 2018 – Global game portfolio

8

RPG

Others

Strategy, Casual

Sports

RPG

Others

Strategy, Casual

Sports

- Focus on global market with balanced line-up (In-house and 3rd party)

■ 10 titles to be launched (MMORPG, S-RPG, Sports)

- 6 titles(mainly RPG) in 1H,, 4 titles(mainly sports) in 2H

(18.1Q)

‘Heir of Light’

(18.1Q)

‘Giants War’

(18.2Q)

‘Talion’

(18.2Q)

‘Elune’

(18.2Q)

‘Gardius Empire’

(18.2Q)

‘Cosmo Duel’ ‘Gamevil baseball’

(18.3Q) (18.3Q)

‘NBA basketball’

(18.3Q)

‘Fishing Master2’

(18.4Q)

First half Second half

‘Royal Blood’ Global

4. Business Strategy for 2018 – Launching plans

9

4. Business Strategy for 2018 – Focus on MMORPG market

■ MMORPG 2 titles to be launched to lead the global market, starting in KOR

- Lead the growing regions by releasing 2 MMORPG titles in 1H 18

Global MMO ‘Royal Blood’

PC class MMO ‘Talion’<Global optimization>

* Source: GAMEVIL 추정

10

✓ ‘Deterministic fostering’

✓ ‘100 vs. 100 RVR’

✓ ‘Manual operation

Advantage’

✓ ‘Strategic RVR battle’

✓ ‘New concept raid

✓ ‘Character

customization’1% 3%

26%

46%

'16 4Q '17 4Q '16 4Q '17 4Q

Portion of MMO revenue

West(USA, GBR, DEU)

동구권(KOR, TWN)

Preoccupancy of

western MMO-

market

4. Business Strategy for 2018 – Focus on S-RPG market

■ Next-Generation Strategy RPG, 3titles to be launched with new content adds to

existing RPG success factor.

- Proved content of titles by CBT in fast growing region, north America

24%

Portion of S-RPG in Global market (end of ’17)

31%

Growth rate of S-RPG in N. America (’17 4Q)

* Source: GAMEVI

‘Heir of Light’ 1Q! ‘Giants War’ 2Q!

Explores various contents in randomized card forma

Global user targeted graphic

11

PC raid like immersive action

Various classed applied strategy

‘Elune’ 2Q!

Attractive high quality characters

Combination of various characters

■ Focus on baseball / basketball / fishing mobile game in 2H 18

- major global sporting licenses and Gamevil’s established IP to stronger sports lineup

FY16.4Q FY17.4Q

$319 M

$418 M

* Source: GAMEVIL

Global mobile sports game market

4. Business Strategy for 2018 – Focus on global sport games

12

Official sequel of 27M downloads fishing game, ‘Fishing Master’’

Reboot of Gamevil’s 66M downloads baseball game

The world’s first vertical NBA

basketball game

Combining ‘SLG’ and RPG: Hybrid Strategic

Simulation Game, ‘Gardius Empire'

- On second global CBT

- High user satisfaction in PVP battle gameplay

Real-time Strategic Puzzle Game

‘Cosmo Duel’

- Strategically combine avatars and item decks High use

- Real-time PVP game using matching and skill

4. Business Strategy for 2018 – Simulation RPG & Casual

13

■ Enhance profitability by improving business effectiveness

4. Business Strategy for 2018 – improvement of biz effectiveness

14

2016 2017 2018E

Number of newly released titles

2

10

4

2016 2017 2018E

Number of in-house games

0

4

0

❖ Combination of marketing know- how

❖ Enhancement of global business

‘New titles↑, Sales↑’‘In-house gaems↑,

profitability ↑’

‘Create synergies by integration of foreign subsidiaries’

Improvement

of

business effectiveness

‘Cost effective marketing operation’

❖Maintained 10%, costs proportion of

total revenue

15

Thank you