Announcement Regarding Differences Between Third Quarter Outlook and Actual Results and Recording of Foreign Exchange Gain

	November 9, 2021
Name of Company:	NEXON Co., Ltd.
Representative:	Owen Mahoney, Representative Director,
	Chief Executive Officer and President
	(Stock Code: 3659, TSE First Section)
Contact:	Shiro Uemura, Representative Director and
	Chief Financial Officer
Telephone:	03-6629-5318

Announcement Regarding Differences Between Third Quarter Outlook and Actual Results and

Recording of Foreign Exchange Gain

NEXON Co., Ltd. ("Nexon") today made an announcement regarding the differences between the consolidated results outlook for the first nine months (January 1, 2021 through September 30, 2021) and the third quarter (July 1, 2021 through September 30, 2021) of the year ending December 31, 2021 as announced on August 11, 2021 and actual performance.

Nexon also recorded a foreign exchange gain as follows under finance income for the first nine months of the year ending December 31, 2021 (January 1, 2021 through September 30, 2021).

1. Differences between the consolidated results outlook and actual results

Difference between the business outlook for the first nine months (January 1, 2021 through September 30, 2021) and actual performance

(Prepared in accordance with IFRS)

(Units: millions of yen, %)

			Income		Net Income		Basic
	Revenue	Operating	Before	Net Income	Attributable		Earnings per
	Income	Income	to Owners of		Share
			Taxes		the Parent		(yen)
Initial forecast	209,695	78,807	98,260	68,557	69,946	78.70
-	-	-	-	-	-
(A)
215,834	84,033	103,487	72,548	73,867	83.11
Performance for
the first nine	220,212	88,565	125,828	91,948	92,893	104.36
months (B)
	10,517	9,758	27,568	23,391	22,947
Difference (B-A)	-	-	-	-	-
	4,378	4,532	22,341	19,400	19,026
Percentage	5.0%	12.4%	28.1%	34.1%	32.8%
-	-	-	-	-
change (%)
2.0%	5.4%	21.6%	26.7%	25.8%

Difference between the business outlook for the third quarter (July 1, 2021 through September 30, 2021) and actual performance

(Prepared in accordance with IFRS)

(Units: millions of yen, %)

			Income		Net Income		Basic
	Revenue	Operating	Before	Net Income	Attributable		Earnings per
	Income	Income	to Owners of		Share
			Taxes		the Parent		(yen)
Initial forecast	65,373	20,077	20,790	14,290	14,955	16.81
-	-	-	-	-	-
(A)
71,512	25,303	26,017	18,281	18,876	21.22
Third quarter	75,890	29,835	48,358	37,681	37,902	42.44
performance (B)
	10,517	9,758	27,568	23,391	22,947
Difference (B-A)	-	-	-	-	-
	4,378	4,532	22,341	19,400	19,026
Percentage	16.1%	48.6%	132.6%	163.7%	153.4%
-	-	-	-	-
change (%)
6.1%	17.9%	85.9%	106.1%	100.8%

2. Reason for the differences

For the first nine months (January 1, 2021 through September 30, 2021), net income and net income attributable to owners of the parent company exceeded the previous outlook due to the foreign exchange gain of JPY 33,204 million mostly related to the depreciation of the Korean won against the U.S. dollar, which was recorded under finance income mainly on the U.S. dollar-denominated cash deposits and trade accounts receivable owned by Nexon's overseas subsidiaries.

For the third quarter (July 2021 through September 30, 2021), revenue and operating income exceeded the previous outlook primarily due to strong performances in Korea and China. Income before income taxes and each subsequent income exceeded the previous outlook due to the revenue outperformance, in addition to the foreign exchange gain of JPY 16,131 million mostly related to the depreciation of the Korean won against the U.S. dollar, which was recorded under finance income mainly on the U.S. dollar-denominated cash deposits and trade accounts receivable owned by Nexon's overseas subsidiaries.

3. Recording of foreign exchange gain

Nexon recorded a foreign exchange gain of JPY 33,204 million under finance income in the consolidated accounting for the first nine months (January 1, 2021 through September 30, 2021), mainly on the U.S. dollar- denominated cash deposits and trade accounts receivable owned by Nexon's overseas subsidiaries mostly due to the depreciation of the Korean won against the U.S. dollar.