NEXON : Announcement Regarding Differences Between Full Year and Fourth Quarter Outlook and Actual Results

	February 9, 2023
Name of Company:	NEXON Co., Ltd.
Representative:	Owen Mahoney, Representative Director,
	President and Chief Executive Officer
	(Stock Code: 3659, TSE Prime Market)
Contact:	Shiro Uemura, Representative Director and
	Chief Financial Officer
Telephone:	03-6629-5318

Announcement Regarding Differences Between Full Year and Fourth Quarter Outlook and

Actual Results

NEXON Co., Ltd. ("Nexon") today made an announcement regarding the differences between the consolidated results outlook for the full year (January 1, 2022 through December 31, 2022) and the fourth quarter (October 1, 2022 through December 31, 2022) of the year ended December 31, 2022 as announced on November 9, 2022 and actual performance.

1. Differences between the consolidated results outlook and actual results

Difference between the business outlook for the full year (January 1, 2022 through December 31, 2022) 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	348,093	100,272	165,787	113,236	113,737	129.99
~	~	~	~	~	~
(A)
356,368	106,689	172,206	118,022	118,418	135.34
Performance for	353,714	103,696	140,525	99,990	100,339	114.74
the full year (B)
	5,621	3,424	(25,262)	(13,246)	(13,398)
Difference (B-A)	~	~	~	~	~
	(2,654)	(2,993)	(31,681)	(18,032)	(18,079)
Percentage	1.6%	3.4%	(15.2%)	(11.7%)	(11.8%)
~	~	~	~	~
change (%)
(0.7%)	(2.8%)	(18.4%)	(15.3%)	(15.3%)

1

Difference between the business outlook for the fourth quarter (October 1, 2022 through December 31, 2022) 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	75,474	7,544	8,922	5,475	5,465	6.32
~	~	~	~	~	~
(A)
83,749	13,961	15,341	10,261	10,147	11.73
Fourth quarter	81,095	10,968	(16,340)	(7,770)	(7,932)	(9.18)
performance (B)
	5,621	3,424	(25,262)	(13,246)	(13,398)
Difference (B-A)	~	~	~	~	~
	(2,654)	(2,993)	(31,681)	(18,032)	(18,079)
Percentage	7.4%	45.4%	-	-	-
~	~	~	~	~
change (%)
(3.2%)	(21.4%)	-	-	-

2. Reason for the differences

For the fourth quarter (October 1, 2022 through December 31, 2022), operating income exceeded the low-end of the previous outlook primarily due to PC online revenue exceeding our expectations in China. Income before income taxes, net income and net income attributable to owners of the parent company were lower than the previous outlook in the fourth quarter, primarily due to a foreign exchange loss of JPY 25,017 million recorded on the U.S. dollar-denominated cash deposits owned by overseas subsidiaries.

2