Date: Monday, May 11, 2026
Agenda: Neowiz Q1 2026 Earnings and Future Strategy

■ Summary of Neowiz Q1 2026 Earnings and Status

▣ Q1 2026 Earnings Summary

- Q1 2026 Revenue: ₩101.4 billion (+13.9% YoY, -4.6% QoQ)

ㄴ PC/Console Games (₩39.5 billion): Revenue stabilization for Lies of P DLC and Shape of Dreams

ㄴ Mobile Games (₩51.4 billion): Impact of Brown Dust 2's 2.5-year anniversary and 1k-day events

- Q1 2026 Operating Profit: ₩7 billion; Net Profit: ₩15.5 billion

▣ Q1 2026 Expense Summary

- Q1 2026 Operating Expenses: ₩94.5 billion (+19.9% YoY, -7% QoQ)

-Labor Costs: ₩39.6 billion

ㄴ Exclusion of one-time costs (incentives) from the previous quarter

-Marketing Expenses: ₩7.3 billion

ㄴ Utilization of outsourced marketing and efficiency improvements

-Other Expenses: ₩9.1 billion

ㄴ Reflects live IP operational costs (outsourcing, servers)

▣ Strategic Direction

- Executing strategies for global IP franchising and fandom-centered operations to drive solid revenue growth

- Proactive investment in new game development and global marketing aligned with mid-to-long-term growth strategies

- Expansion of New IP

ㄴ Story IP Publishing: Diversifying the pipeline by sourcing high-narrative-quality IPs such as 'Hello Seoul: Itaewon

ㄴ New Genre Infusion: Securing story-based IPs across diverse genres to deepen the portfolio

- Advancing Fandom-Centered Services

ㄴ Operational Cycle Optimization: Shortening update cycles for Brown Dust 2

ㄴ Offline User Experience: Expanding fandom-friendly activities such as concerts and pop-up stores

ㄴ Brand Renewal: Expanding the user base through the renewal of 'Cats & Soup' and the launch of the new title 'Magic Recipe

- IP Franchising

ㄴ Worldview Expansion and Serialization: Creating long-term revenue streams based on strong narratives and proven gameplay

ㄴ Lies of P Sequel: Prototype approved, entering full-scale development

ㄴ Securing Hits through Selective Investment: Proactive investment in studios recognized by global critics

- Global Localization

ㄴ Localization Strategy: Customized marketing tailored to regional sentiments

ㄴ Proven Development Capability: Accelerating penetration into Western markets based on global competitiveness

■ Q&A

It appears you are strengthening storytelling capabilities by recruiting directors with backgrounds as scenario writers. What is the strategic significance of the narrative focus pursued by Round8.

= We consider narrative a core competency for Round8 and a key factor in driving user immersion. In an environment where global development costs are rising, it is difficult to gain market recognition through technical or sheer volume-based investment alone, making narrative even more critical. We recruited directors Jin Seung-ho and Lee Sang-gyun precisely because they possess excellent narrative implementation skills.

How are veteran talents like directors Jin Seung-ho and Lee Sang-gyun integrating into the Round8 organization, and what synergies are you expecting? Also, what criteria does Round8 apply when recruiting directors?

= Both directors are currently leading their respective projects and implementing their strengths into their work. We apply strict criteria for director selection. A common trait among directors who have achieved success in the global market is their ability to clearly define the desired outcome and explain it in detail. Round8 defines the most essential qualities of a director as having a clear vision for their creative work and control over the details.

You are preparing a lineup of various genres simultaneously. What is the background for this portfolio diversification, and how do you manage the risks associated with simultaneous operations.

= The management team did not intentionally force genre expansion. When reviewing new projects, we apply three criteria: the originality and fun of the concept, market competitiveness, and our in-house development capabilities. Our lineup has naturally diversified because directors have brought in persuasive and attractive proposals that meet these conditions. While managing multiple projects is challenging, game development is difficult regardless of the genre. Round8 believes that allowing directors to pursue concepts they are most motivated by and capable of executing is a rational choice that increases the probability of success.