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Investor Relations Pearl Abyss Corp. Nov 2019 Disclaimer This presentation contains forward-looking statements that relate to our future operations, prospects, developments, strategies, business growth, and financial outlook. Forward-looking statements are identified by words such as 'believes', 'estimates', 'expects', 'intends', 'may', 'projects', 'could', 'should', 'will', 'continue' and other similar expressions. All statements other than statements of historical fact could be forward-looking statements, which speak only as of the date they are made, do not guarantee future performanceandaresubjectto certainrisks,uncertainties,andotherfactorsbeyondourcontrolanddifficultto predict. Also, Forward-looking statements are identified based on the current market situation and company's strategies, therefore, can be altered without notifications due to changesin marketor thecompany’sstrategies. 2 Contents 1. Company Overview 2. Business Overview 3. New Projects 4. Financial Summary [ Appendix ] 3 Company Overview 1-1. Company Overview : Snapshot ◆ Company Overview Company Name Pearl Abyss Corp. Establishment Date 2010.09.10 Dae-il Kim Founder (Chairman) CEO Robin Jung (Largest shareholder, 36.2%) Number of Employees 1,151 Settlement of Account December (as of Sep. ‘19) No. of Issued Shares 13,023,000 Market Capitalization KRW 2.7 trillions (as of Sep. ‘19) (as of Nov. ‘19) Stock Code KOSDAQ (263750) Listed date 2017.09.14 Address 24, Simin-daero 327 beon-gil, Dongan-gu, Anyang-si, Gyeonggi-do, 14055, Rep. of KOREA ◆ Subsidiary ◆ Shareholder Structure (as of Sep.‘19) Company Shares(%) Country Business CCP ehf. 100 Iceland Game Development and Publishing PearlAbyss Taiwan Corp. 100 Taiwan Game publishing Treasury PearlAbyss H.K. Limited 100 Hong Kong Game publishing shares Others 7% Pearl Abyss JP Co., Ltd. 100 Japan Game publishing 43% PEARL ABYSS AMERICA, INC. 100 USA Game publishing PearlAbyss EU B.V. 100 Netherlands Server and network services PearlAbyss SEA Pte. Ltd. 100 Singapore Server and network services Manage ments Pearl Abyss Capital, Inc. 100 Korea Investment and management consulting 50% Nettention 100 Korea Development and sales of server and N/W engines Pearl Abyss Iceland ehf. 100 Iceland Investment and management consulting 5 1-2. Company Overview : Revenue Trend ◆ Global/Platform expansion with world-class game developing tech. Project Release Date Status ▪ Black Desert Dec.‘14 (Korea) Over 150 countries with 12 languages ▪ Black Desert Mobile Feb.‘18 (Korea) TW(Aug.‘18), JP(Feb.‘19), global service(11 Dec. ‘19) ▪ Black Desert Console Mar.‘19 (Xbox) PlayStation release (23 Aug. ‘19) ▪ EVE Online Oct.‘18 (Secured EVE IP) Korean localization (14 Nov. ‘19) CAGR(‘15~’18) +165% BDCXbox BDCPS BDMJP BDM TW BDMKor. BD Steam BD NA/EU BD Taiwan BD JP BD Turkey BD Kor. BD Russia Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Region Expansion Platform Expansion Self-publishing New IPs 6 1-3. Company Overview : Q3‘19 Overview ◆ Solidified IP Value from Multi-platforms <Quarterly Operating Revenue> ✓ Stable Live Operations (Unit: KRW in billions) ▪ BD : Simultaneous global updates / Secret quests 152 134 133 100 ▪ BDM : Collaborations / Bespoken updates for all service regions 113 117 76 ▪ BDC : Massive updates for Xbox / PS4 release (23 Aug.) Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 ✓ Improvement in User Communication Channels ▪ Official Youtube Creator : Real-time communication with BDM users <Revenue by Platform> PC Console Mobile ▪ Events : Annul ‘Fanfest event’ in Berlin 55% 62% 66% 62% 57% 73% 77% ✓ Diverse Challenges for Future Growth 12% 3% 11% ▪ Cloud Game : Provided ‘Black Desert’ for ‘Xcloud’ platform’s demonstration service 45% 38% 27% 23% 31% 27% 31% ▪ Cross-platform technology : Secured a new technology supporting cross-platform Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 7 Business Overview 2-1. Business Overview : Black Desert IP Available in 150 countries Available in KR, TW, JP Xbox-one / PS4 Black Desert is available on all major game platforms 9 2-2. Business Overview : Black Desert (Online) Performance Russia Europe (Oct. ‘15) ▪ 150 Countries with 12 languages (Mar.‘16) NorthAmerica ▪ +10 millions of accumulated users Japan (Mar.‘16) Korea (May.‘15) ▪ +500 billions of cumulative sales (KRW) Turkey (Dec.‘14) (Dec.‘17) Taiwan ▪ Self-publishing from 2017 Southeast Asia South America (Jan.‘18) (Jan‘17) → Self-publishing region : TW, MENA, SEA (Jul.‘17) → Direct-publishing in Russia from Q4‘18 → Direct publishing in Korea from Jun.‘19 (New users :+10 folds, DAU : +2 folds) Region Expansion Awards NAEU : 2016 Best New MMORPG (mmorpg.com) 2014 2015 2015 2016 2017 2018 2018 China Korea : 2015.1Q Best Game (KOICCA) Korea Japan Russia NA/EU TW MENA SEA Japan : 2016 Best Games (Web Money) Russia : 2015 Best MMORPG (Goharu awards) Taiwan : 2017 Best Popular Game (gamer.com.tw) 10 2-3. Business Overview : Black Desert (Mobile) Performance Europe ▪ KR : Maintaining Top 10 game (Top-paid) (Dec.‘19) North America ▪ TW : Pre-registration at 2.79 mil.(record-high) Korea (Dec.‘19) Japan Took #1 place in the first day of launch (Feb.‘18) (Feb.‘19) ▪ JP : Top downloaded game for 15 days Southeast Asia Taiwan Ranked in 2nd place (Top-paid game) (Dec.‘19) (Aug.‘18) ▪ Global : Pre-registration at 3 mil. (for 50 days) ▪ +10 millions of download (as of Sep.‘19) ▪ 801 billions of accumulated revenue (as of Q3‘19) Region Expansion Awards KR : 2018 Best game in 6 areas Feb.‘18 Aug.‘18 Feb. ’19 11 Dec.‘19 Mar. ‘19 TW : 2018 Best game (Google play) Korea Taiwan Japan Global Publishing deal Top-10 popular mobile game (TW gameshow) 11 2-4. Business Overview : Black Desert (Console) Performance ▪ Xbox Korea NorthAmerica (Mar., Aug,‘19) (Aug.‘19) Europe (Mar., Aug.‘19) Japan (Aug.‘19) Asia → Doubled the server in 11 days of launch (Aug.‘19) (Operating 22 servers) → Ranked in one of Top paid games Australia (Aug.‘19) → Package sales : 240 thousands (in first month) ▪ PS4 Region Expansion → Doubled the server in 2nd day of release XBOX PlayStation (Operating21 servers) Mar. ‘19 Aug. ‘19 → Ranked in #1 Top-paid game in JP (as of Aug.) NA, EU, KR, JP, AU, NZ NA/EU → Package Sales : 317 thousands (in first month) 12 2-5. Business Overview : EVE Online Sci-fi MMO 15 Years 40 Million 1 World-renowned IP of Service Cumulative Players Universal Server 13 2-6. Business Overview : EVE Echoes (Mobile) Developed jointly by HARDCORE SANDBOX CCP & NetEase SCI-FI MMO 14 2-7. Business Overview : Q4 Highlights ◆ IP Life Cycle Management + Service Expansion ✓ IP Reinforcement ✓ Service Expansion ▪ Prolong PLC with upgraded live operations ▪ Region Expansion - Massive-scale updates - Black Desert Mobile for global (11 Dec. ‘19) : BD (The great expedition, succession) - EVE Online in Kor. (14 Nov. ‘19) BDM (The great desert) BDC (New classes, new languages in PS) - User care events in KR, JP and TK ▪ Platform Expansion - Events (Halloween, Black Friday Sale) - EVE Echoes (OBT : Dec. ‘19) ▪ Improve user connectivity in G-star - Arena of ARSHA (Black Desert) / 2:2 Tournament (EVE Online) - Demonstration & firsthand experience of ‘Shadow Arena’, ‘Black Desert’, and ‘EVE Online’ ▪ Spin-off - Shadow Arena (CBT: 21 Nov. ‘19) 15 New Projects 3-1. New Projects : Shadow Arena Title - Shadow Arena Genre - Action Battle Royale RPG Platform - PC (and Console, Mobile later on) - CBT : 21~24 Nov. 2019 Schedule - Launch date : 1H 2020 - Last one survives from a 50 people battle Introduction - 6 Characters with different skill sets (+more heroes) - A sophisticated combat with action-packed gameplay Feature - Play mode (1 : 1 or Team : Team) 17 3-2. New Projects : PLAN 8 Title - PLAN 8 - Exosuit MMO Shooter Genre (Exosuit : wearable gears or robots) Platform - Console and PC (and Mobile later on) Schedule - TBD - A unique shooter game with different types of exosuits to have cool new abilities Introduction - A profound worldview with a story about fights between human vs. robots (and human vs. human) - Realistic in-game graphics, Action-packed gameplay Feature - A vast open world MMO with combat driven features 18 3-3. New Projects : DokeV Title - DokeV Genre - Collectible MMORPG (for all ages) Platform - Console and PC (and Mobile later on) Schedule - 2020 Beta Test - A MMO game with countless creatures, traversing through a vast world filled with in-game adventures and events Introduction - Adventures finding and collecting DokeV whom you could be by changing your character - Open world with exceptional and unique graphics Feature - A family-oriented game for all demography and ages 19 3-4. New Projects : Crimson Desert - Crimson Desert Title (Subtitle: A saga Written in Blood) Genre - Epic-fantasy MMORPG Platform - Console and PC (and Mobile later on) Schedule - 2020 Beta Test - A mercenary story of growth and overcoming desperation Introduction - An immersive single-player mode with engaging quests and MMORPG format with the band of mercenaries - Realistic characters and cut-scenes Feature - Open world MMORPG with a vast amount of content 20 Financial Summary 4-1. Financial Summary : Operating Performance ◆ Operating Revenue : 134.4bil., Operating Profit : 39.5bil., Net Profit : 43.8bil. (in KRW) Operating Revenue Operating Profit Net Profit (Unit: KRW in billions, %) 44% 152.3 52% 132.6 134.4 37% 34% 33% 29% 117.0 19% 14% 99.6 15% 11% 60.3 56.9 51.7 51.6 39.5 43.8 19.4 18.2 14.7 14.1 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 YoY +14.9 % YoY -34.5 % YoY -15.3 % QoQ -11.8 % QoQ -30.6 % QoQ -15.1 % 22 4-2. Financial Summary : Revenue Breakdown ◆ Portfolio Diversification with Multi-platforms <Revenue by IP> <Revenue by Region> (Unit: KRW in billions) 8% 24% 24% 28% 29% 22% 152.3 31% 42% 45% 43% 14.9 132.6 134.4 70% 45% 14.5 14.6 34% 27% 28% 99.6 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Korea Asia NAEU 12.8 <Revenue by Platform> 137.4 117.0 118.1 119.8 62% 66% 62% 57% 77% 86.8 12% 3% 11% 38% 31% 23% 31% 27% Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Black Desert EVE PC Console Mobile 23 4-3.