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

■ Summary of Shift Up Q1 2026 Earnings and Status

▣ Q1 2026 Earnings Summary

- Q1 2026 Revenue: ₩47.3 billion (+12% YoY, -26.6% QoQ)

ㄴ Focus on enhancing global user satisfaction and retention ahead of the 3.5th Anniversary event for Goddess of Victory: NIKKE

ㄴ Developing and executing various strategies to maintain steady sales momentum for Stellar Blade

- Q1 2026 Operating Profit: ₩21.5 billion; Net Profit: ₩37.8 billion

ㄴ Non-operating income increased quarter-over-quarter due to foreign exchange gains from currency fluctuations and returns on capital management

▣ Q1 2026 Expense Summary

- Q1 2026 Operating Expenses: ₩25.8 billion (+61.4% YoY, -4.5% QoQ)

- Labor Costs: ₩16.2 billion (+65% YoY, +19.5% QoQ)

ㄴIncrease due to incentive payments compared to the previous quarter

- Variable Costs: ₩4.9 billion (+113.5% YoY, -14.4% QoQ)

ㄴ Decrease in commission fees related to Stellar Blade

- Fixed Costs: ₩4.6 billion (+21.1% YoY, -39.6% QoQ)

ㄴ Decrease in outsourcing costs for Goddess of Victory: NIKKE

▣ Business Status

- New Title Cycle to Accelerate

ㄴ Next Stellar Blade title and Project Spirit information to be released within the year

- Strengthened IP Lineup and Business Capabilities

ㄴ Addition of multiple PC/console development pipelines following the acquisition of Unbound

ㄴ Secured multiple IPs across both live-service and PC/console games

ㄴ Next Stellar Blade title and new Unbound titles to be self-published

- Goddess of Victory: NIKKE

ㄴ Successful 3.5th Anniversary update featuring rich content and active online/offline events

ㄴ Expected to maintain steady performance through 2026, leading up to the 4th Anniversary

■ Q&A

What are the performance expectations for Goddess of Victory: NIKKE in 2026?

= Goddess of Victory: NIKKE recently saw a highly successful 3.5th Anniversary update, which received critical acclaim and generated an enthusiastic user response. The event featured attractive new characters and large-scale content updates, resulting in overwhelming global support and significant achievements in both revenue rankings and user metrics. This success is a testament to the IP value built through the main story and the individual narratives of the Nikkes, which have deeply resonated with players. We expect this upward trend to continue throughout 2026.

We have substantial seasonal events planned for the first half of the year, and for the 4th Anniversary in the second half, we are preparing a large-scale update that will surpass the achievements of the 3.5th Anniversary. Building on the solid trust we have established with our users, we will do our utmost to repay their affection by expanding the IP's universe and providing high-quality original content.

What is the future strategy for enhancing the Goddess of Victory: NIKKE IP?

= We are advancing the lifecycle of the Goddess of Victory: NIKKE IP through two main pillars: strengthening in-game content and expanding IP business. In-game, we are continuously creating new play experiences. This is a strategic effort to ensure that even after three years, the game consistently offers fresh fun beyond repetitive consumption, and we are seeing positive effects across various user metrics.

On the IP business side, we have entered a phase of gradually broadening our merchandise (MD) business. We are expanding our MD product lines based on the high recognition and fandom of our characters, thereby increasing the IP's offline touchpoints. We plan to continue investing in IP enhancement, including expanding the universe, diversifying the MD lineup, and hosting offline events, so that users can enjoy the IP extensively both inside and outside the game.

What are the performance expectations for Stellar Blade in 2026?

= Since its launch, Stellar Blade has maintained steady sales, solidifying its position as a steady-seller IP in the PC/console market. This quarter, we continued to see new user acquisition through seasonal promotions and discount events, confirming a stable long-term sales trend. Until the release of the next Stellar Blade title, we will continue activities to expand the franchise's brand awareness, such as collaborations with global IPs.

We will maintain sales momentum through seasonal and holiday promotions and strategic discounts, while also actively exploring further platform expansions. We will continue various activities to maximize the long-term value of the IP to reward the support of our global users.

What is the development and service strategy for the next Stellar Blade title?

= Development of the next Stellar Blade title is proceeding smoothly and without setbacks, in line with our quality targets. Notably, we intend to transition to a self-publishing system for this title, with Shift Up handling the publishing directly. This allows us to lead marketing strategies that fully capture the unique essence of the IP and enables us to deliver the charm of the IP to users more directly and effectively.

Furthermore, by leveraging the solid fandom and established position of the previous title, we are developing an optimal strategy to maximize sales and reach a broad global audience from the initial launch. We expect the next Stellar Blade title to achieve even better results than its predecessor, supported by high-quality self-publishing, a sales maximization strategy, and a proven IP fandom.

What is the preparation status for Project Spirit.

= Project Spirit, our next flagship title, is being developed through an efficient and systematic process. We plan to provide information on this new title within 2026. We ask for your continued interest and support for this new project.

What is the background behind the partnership with Unbound?

= This partnership is an 'acq-hire' deal. We decided to join forces because our companies' directions were aligned and the potential synergies were clear. We are currently seeing positive impacts on both sides through comprehensive collaboration, including game development.

Unbound's development team, which possesses a 'success DNA' and strong capabilities, is fully committed to developing new titles for users. The team consists of about 60 members, many of whom have experience in developing and successfully launching world-class global IPs. As they are currently developing multiple pipelines ranging from high-end to mid-to-small scale titles, we expect a sequential release of new games. We plan to reveal these new titles in due course.

What is the direction for expanding the publishing business?

= We intend to self-publish the next Stellar Blade title and new Unbound titles. Consequently, we are bringing in global talent with experience in launching and servicing major global titles. The ability to directly service these titles globally is seen as an attractive opportunity for top-tier talent in the industry, and we are rapidly strengthening our self-publishing capabilities through this recruitment.

What is the direction for shareholder return policy in 2026?

= To reward the trust of our shareholders, we are considering the implementation of an additional share buyback program after the second half of 2026. We will provide further details regarding the scale and timing of the program at a later date. We ask for your continued interest.