KRAFTON 4Q21 Investor Presentation

KRAFTON’s fourth-quarter 2021 investor presentation outlines the company’s financial performance and strategic roadmap for 2022 and beyond. The primary objective is to transition from a traditional game developer into a broader interactive entertainment entity by leveraging its core PUBG intellectual property while diversifying into new technologies, including virtual reality, deep learning, and Web 3.0 ecosystems.

Financially, the company reported annual revenue of KRW 1,886.3 billion, representing a 12.9% increase year-over-year. However, annual operating profit declined by 17.3% to KRW 639.6 billion, and fourth-quarter results showed significant pressure, with operating profit falling 53.6% year-over-year to KRW 43.0 billion. These results were influenced by increased operating costs, including higher marketing expenditures and share-based payments, as well as the strategic transition of PUBG: BATTLEGROUNDS to a free-to-play model. Despite the quarterly profit dip, the company emphasized that the free-to-play shift successfully drove user growth, with over 6.5 million new PC and console users registered in the first week of the transition.

The strategic outlook for 2022 focuses on three pillars: optimizing live services for existing titles, launching new projects, and exploring emerging digital frontiers. Key upcoming titles include Project M and The Callisto Protocol, alongside a pipeline of diverse projects such as Defense Derby and Project Black Budget. Furthermore, the company is investing in an internal "small and quick" development program to foster innovation and is actively expanding its footprint in the Indian market through strategic partnerships and investments in local gaming and technology firms. By integrating Web 3.0, NFT, and metaverse capabilities, the company aims to build a scalable, creator-driven ecosystem that extends the reach of its gaming portfolio.