3Q23 Earnings Presentation

Pearl Abyss Corp.

9 Nov. 2023
Disclaimer
1. 3Q23 Overview

Operating Revenue
(Unit: billion KRW)
❖ Live Service
97.3 103.0
① Black Desert 85.8
78.4 84.9
▪ Updates
✓ PC : Black Desert Festa, New region ‘Ulu kita’
✓ Console : ‘Land of the Morning Light’
✓ Mobile : ‘Land of the Morning Light’, New class ‘Wizard’
3Q22 4Q22 1Q23 2Q23 3Q23
▪ Events
✓ BD TwitchCon (Paris), BDM Heidel Ball (Global)
User Meeting
② EVE
▪ User Meeting : 20th anniversary EVE Fanfest

❖ New IP
① EVE IP expansion : EVE Vanguard, EVE Galaxy Conquest
② New IP : Crimson Desert (Gamescom)
2. 3Q23 Operating Performance

Operating Revenue Operating Profit Net Profit

(Unit: billion KRW, %)

103.0
97.3 12%
3% 1% 2%
85.8 84.9 22% -6%
78.4 -99% 11% 18%
-18%
12.0

3.5 21.3 9.4 15.0

2.1
1.1
3Q22 4Q22 1Q23 2Q23 3Q23
3Q22 4Q22 1Q23 2Q23 3Q23
(4.4)

(102.2)
3Q22 4Q22 1Q23 2Q23 3Q23
(14.1)
YoY -12.7% YoY -82.5% YoY -29.6%
QoQ +8.3% QoQ Turn to Profit QoQ Turn to Profit
3. 3Q23 Revenue Breakdown

Revenue by Core IP Revenue by Region Revenue by Platform

(Unit: billion KRW)

16% 16% 16% 13%

96.0 20%
88.5 5% 6%
84.4 84.4 7% 7%
19.4 6%
17.3 76.7 56% 55% 57% 53%
16.9 16.0 56%

20.2

77% 77% 79% 81%

76.6
20% 74%
71.2 25% 22% 22%
67.5 68.4 26%
56.5

23% 27%
18% 19% 21%

3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 4Q22 1Q23 2Q23 3Q23
Black Desert EVE Korea Asia NA/EU PC Console Mobile
4. 3Q23 Operating Expenses

Operating Expense by Quarter (Unit : million KRW, %)

3Q22 4Q22 1Q23 2Q23 3Q23 QoQ YoY Ratio % of Rev.

85,313 99,498 84,663 92,460 82,791 -10.5% -3.0% 100.0% 97.5%

40,891 42,888 44,277 49,605 40,668 -18.0% -0.5% 49.1% 47.9%
16,627 19,788 19,143 18,120 14,359 -20.8% -13.6% 17.4% 16.9%
9,371 12,667 5,618 7,996 10,053 25.7% 7.3% 12.1% 11.8%
6,926 6,468 6,334 6,557 6,446 -1.7% -6.9% 7.8% 7.6%
11,498 17,687 9,291 10,182 11,265 10.6% -2.0% 13.6% 13.3%

Number of Employees
(Unit: No. of employee, %)

3Q22 4Q22 1Q23 2Q23 3Q23 QoQ YoY Ratio

1,456 1,452 1,355 1,341 1,293 -3.6% -11.2% 100.0%

875 876 793 801 744 -7.1% -15.0% 57.5%

581 576 562 540 549 1.7% -5.5% 42.5%

5. 4Q23 Highlight

❖ Live Service
▪ Black Desert
✓ Updates
- PC : ‘War of the Roses’ (PvP)
- Console : Mythical Horses, Awakening ‘Maegu’
- Mobile : New contents
✓ User Meeting
- Adventurer's Oasis (US), User meeting in Dec. (Global)
▪ EVE
✓ Updates
- Expansion pack ‘EVE Havoc’

❖ Growth Strategy
▪ Existing IP Expansion
✓ EVE Vanguard (OBT in Dec.)
✓ EVE Galaxy Conquest (Soft-launch)
▪ New IP
✓ Crimson Desert (G-STAR B2B)
Appendix
Appendix.
Consolidated Financial Statements (Statement of Financial Position)
(Unit : million KRW)
2022.12.31 2023.09.30 2022.12.31 2023.09.30
Liabilities
Assets
Ⅰ. Current Liabilities 235,497 302,409
Ⅰ. Current Assets 556,502 641,564 Other payables 36,304 36,598
Cash and cash equivalents 159,555 309,504 Short-term liabilities 6,000 0
Current portion of long-term debt 84,000 0
Account receivables 59,397 68,882 Lease liabilities 3,737 4,324
ST financial instruments 183,832 243,413 Income taxes payable 2,950 7,648
Current provisions 60 66
Financial assets measured at fair value 139,708 6,110 Other current liabilities 102,446 106,865
Current Portion of Bonds Payable 0 146,908
Other current assets 14,010 13,655
Ⅱ. Non-Current Liabilities 287,051 256,881
Ⅱ. Non-Current Assets 667,275 652,873 Bonds issued 146,825 0
Account receivables 3,655 3,578 Other payables 4,618 5,489
Long-term debt 74,565 148,440
LT financial instruments 867 877
Lease liabilities 13,919 15,611
Financial assets measured at fair value 116,725 127,076 Non-current provision 740 841
Other non-current liabilities 18,971 59,002
AFS financial assets 203 203
Deferred tax liabilities 27,413 27,498
Investment in affiliated companies 60,422 47,363 Total Liabilities 522,548 559,290
Capital
Tangible assets 209,758 192,973
Ⅰ. Capital stock 6,622 6,623
Intangible assets 234,989 238,291 Ⅱ. Capital Surplus 215,763 219,742
Investment property 10,614 9,266 Ⅲ. Retained Earnings 484,406 502,455
Other non-current assets 2,428 1,335 Ⅳ. Capital Adjustments (35,175) (32,526)
Ⅴ. Accumulated Other Comprehensive Income 29,613 38,853
Deferred tax asset 27,614 31,911
Ⅵ. Non-controlling Interests 0 0
Total Assets 1,223,777 1,294,437 Total Capital 701,229 735,147
Appendix.
Consolidated Financial Statements (Comprehensive Income Statement)

(Unit : million KRW)

3Q22 4Q22 1Q23 2Q23 3Q23

Revenue 97,270 102,952 85,757 78,356 84,926

Operating Expenses 85,313 99,498 84,663 92,461 82,791

Operating Profit 11,957 3,454 1,094 (14,104) 2,135

Financial Income 20,140 (28,084) 12,180 8,286 9,473

Other Income 792 (81,538) 1,950 2,216 14,065

Income from Equity Method (2,969) (1,594) (1,646) (1,548) (2,782)

Income before Income Tax 29,920 (107,761) 13,578 (5,150) 22,891

Income Tax Expenses 8,586 (5,587) 4,184 (716) 7,932

Net Profit 21,334 (102,174) 9,394 (4,434) 14,959