Table of Contents

2

1. Earnings Summary

2. Strategy

3. Mobile

4. PC

5. Game Investment

6. New Business

Appendix

3

1. Earnings Summary / 4Q14 & FY2014

(KRW m) 4Q14 Y/Y % Q/Q % FY2014 Y/Y %

Revenue 147,189 -10.2% 8.1% 555,325 -13.5%

PC 66,672 -44.2% -3.7% 306,157 -37.5%

Mobile 47,528 27.4% -2.9% 185,364 42.5%

Others 32,990 368.1% 83.0% 63,804 192.2%

Operating Expense 144,700 5.6% 1.6% 544,035 17.6%

Commission 47,805 -27.5% -0.8% 203,257 -6.8%

Labor 52,697 19.0% -0.7% 196,944 21.2%

Marketing 15,611 52.8% -16.8% 55,316 125.6%

Depreciation 8,752 61.4% 27.6% 28,353 60.1%

Others 19,835 78.0% 27.9% 60,165 50.7%

Operating Income 2,490 -90.7% TTP* 11,290 -93.7%

Margin 1.7% -14.7%p 6.2%p 2.0% -25.8%p

Non-op Income 45,110 239.3% 52.0% 109,013 123.9%

Non-op Expense 18,520 -27.0% 87.6% 49,294 -46.5%

Pre-tax Income 29,079 97.6% 113.5% 71,010 -47.6%

Income Tax 9,590 42.0% 451.9% 22,589 -43.3%

Net Income 19,489 144.7% 64.0% 48,421 -49.3%

Margin 13.2% 8.4%p 4.5%p 8.7% -6.2%p

[Sales] Increased 8.1% Q/Q to KRW 147.2b driven by other sales growth

while game sales remained muted

- PC : Decreased 3.7% Q/Q to KRW 66.7b due to continued decline of

existing games, despite of positive year-end effect on web-board

- Mobile : Declined 2.9% Q/Q to KRW 47.5b due to lower sales

from existing games while “LINE Disney” remained solid

[Domestic Games] KRW 66.4b, or 58% of total game revenue

[Overseas Games] KRW 47.8b, or 42% of total game revenue

[Operating Expenses] Up 1.6% Q/Q to KRW 144.7b

Commission: Fell 0.8% Q/Q to KRW 47.8b on declined game sales

Labor: Posted KRW 57.2b, similar to the previous quarter

Marketing: Down 16.8% Q/Q to KRW 15.6b thanks to efficient

marketing activities for overall business, including Comico

Depreciation: Rose 27.6% Q/Q to KRW 8.8b as a result of

consolidation of newly acquired subsidiaries

Others: Increased 27.9% Q/Q to KRW 19.8b due to increased

communication expenses as a result of consolidation effect

[Operating Income] Posted KRW 2.5b on increased sales

[Net Income] Recorded KRW 19.5b, up by 64% Q/Q, due to recognition of

disposal gain of “Devsisters” after it had been reclassified as

available-for-sale financial assets

PC

Mobile

76% 59% 58%

24% 41% 42%

3Q13 2Q14 3Q144Q13 3Q14 4Q14

*TTP: Turned to Profit

4

2. Strategy

5

2. Strategy

6

Expanding Development and Service Capabilities

Ent. USA

3. Mobile / Strategy

7

3. Mobile / Strategy

8

Help Me Jack Genre: RPG

Developer: Baobabnet

Zombie Virus Genre: Strategy

Developer: NTOMO

Crusaders Quest Genre: RPG

Developer: LoadComplete

The Soul Genre: RPG

Developer: mSeed

Drift Girls Genre: Racing

Developer: NHN BlackPick

3. Mobile / Strategy

9

LINE Revenant Gate RPG / Developer: NHN PlayArt

LINE POP 2 Puzzle / Developer: NHN PixelCube

LINE Disney Tsum Tsum Puzzle / Developer: NHN PlayArt

LINE POP Puzzle / Developer: NHN PixelCube

Pokopang for Kakao Puzzle / Developer: Treenod

Wooparoo Mt. for Kakao SNG / Developer: NHN Studio629

Wooparoo Saga for Kakao Defense / Developer: NHN Studio629

전설의 돌격대 for Kakao RPG / Developer: NHN PlayArt

In discussion with major Chinese platforms

To be launched in global markets with a focus on N. America

3. Mobile / Strategy

10

Crusaders Quest (Global)

RPG / Developer: LoadComplete

The Soul (Global)

Action RPG / Developer: mSeed

Drift Girls (Global)

Racing / Developer: NHN BlackPick

Monster Chaser (Global)

Action RPG / Developer: NHN Studio629

Help Me Jack (Global)

RPG / Developer: Baobabnet

LINE POP 2 (Global)

Puzzle / Developer: NHN PixelCube

Idol Dream: Girls (Global)

TCG / Developer: NHN Entertainment

3. Mobile / Line-Up

11

0.9

1.4 1.8

2.2

1.5 1.7

1.9 2.0

0.0

0.5

1.0

1.5

2.0

2.5

2013 2014E 2015E 2016E

Mobile

PC

2.4 3.1

3.7

4.2

(Unit: USD b)

3. Mobile / Strategy

12

EOS (Japan) RPG / Developer: Nvius

4. PC

Football Day (Vietnam) Sports / Developer: NHN BlackPick

ICARUS (Japan) RPG / Developer: WeMade

-70%

-60%

-50%

-40%

-30%

3월 4월 5월 6월 7월 8월 9월 10월 11월 12월

이용자

PU

매출

13

Web-board Game Business Status

Business Outlook

Modification applied in Dec 2014/Jan 2015 to comply with the government’s regulation,

thus potential game service shut-down very unlikely

Post-regulation indicators show signs of stabilization,

but business outlook still remains uncertain, given regulatory variables

Recent Trend of Web-board Indicators (vs. pre-regulation in January)

Significant impact on web-board business

from Mar after regulation implementation in Feb 2014

Web-board revenue declined around 50% mainly

due to user-base contraction

Mobile web-board games commercialized

as of Dec 22, 2014 on the government’s approval

4. PC / Web-board Regulation

Users

PU

Sales

Mar Apr May Jun Jul Aug Sep Oct Nov Dec

14

Major Investments

5. Game Investment

15

Game•Webtoon

Hangame•TOAST•COMICO

Easy Payment

Online/Offline integrated easy payment service (Relevant Affiliates: KCP, T-Monet / Exp’d launching: 2Q14)

Cross Border E-Commerce Expansion into cross border e-commerce area

(Relevant Affiliates: GodoSoft, KCP, Accommate, Bee3Stars, Techorus)

Solution Enhancement of in-house infra and solution, and global expansion through overseas affiliates

(Relevant Affiliates: PNP Secure, PioLink)

Advertisement Diversified online and mobile AD agency

(Relevant Affiliates: NHN Entertainment AD)

6. New Business

16

Major Investments

6. New Business

17

Cross-border E-Commerce Market

Info. Security Solution Market

2013 2018 CAGR

Global Market (USD b) 105.0 307.0 23.9%

Users (m) 93.7 130.0 1.9%

China Market (USD b) 35.0 162.0 35.9%

Users (m) 18.0 36.0 14.9%

Korea Market (USD b) 1.0 8.0 51.6%

- Source: PayPal, KDB Development Bank

Cross-border EC global market to grow at a CAGR of 24% by 2018,

reaching market value of USD 307b with 130m users

Rapidly expanding China market to reach 90% of US by 2016

Building overseas business footholds through investments and acquisitions

2013 2017 CAGR

Korea Info Security (KRW b) 1,271 1,642 6.6%

DB Security (KRW b) 62 94 10.9%

2013 2014 CAGR

Japan Info Security (JPY b) 406 425 4.8%

DB Security (JPY b) 155 162 4.7%

- Source: KISIA, JNSA

Increasing personal data thefts lead to increasing demand for

strengthened security solution among corporates and government

agencies

Such phenomenon also seen in overseas markets, creating opportunities

for global expansion

6. New Business

18

Mobile Webtoon: COMICO

Trend of Indicators (Source: Nielson)

0

50

100

150

0

500

1,000

1,500

2,000

2,500

Dec-13 Mar-14 Jun-14 Sep-14

(Min) ('000) MAU 인당 체류시간 (RHS)

COMICO: Smartphone-based Webtoon Service

• October, 2013: Released in Japan

• June, 2014: Released in Taiwan

• October, 2014: Released in Korea

• 97 titles and 3,000 episodes in Japan

• Expansion into SE Asia countries under consideration

• Various business models to be adopted

6. New Business

Stay Per User (RHS)

19

Easy Payment (To be launched in 2Q15)

6. New Business

Various Easy Methods to Pay with

Differentiated Customer Service

(Coupon & membership points)

20

TOAST Services

TOAST CLOUD

Total cloud service optimized for game development and operation

Various solutions yo be offered to small & mid-sized game studios

User and revenue analysis

Performance predictor service

Detailed user-group analysis and targeting

Marketing execution and real-time analysis

Performance and stability indicator analysis

Promotion platform that cross-promotes

multiple games on a constant basis

Support up to 20 countries and 11 languages

6. New Business

43.3%

31.9%

14.6%

10.1%

21

Rights Offering (Public offer after allocation to existing shareholders)

Board’s resolution Jan. 7 Final issue price fixed Mar. 16

Submission of registration of securities Jan. 8 Announcement of final issue price Mar. 17

Ex-rights Feb. 9 Subscription for existing shareholders Mar. 19-20

Standard date of new shares issuance Feb. 10 Subscription for public Mar. 24-25

Closure of shareholders’ registry Feb. 11-17 Payment deadline Mar. 27

Listing of subscription warrants Mar. 4-11 Issuance of subscription rights Apr. 6

Delisting of subscription warrants Mar. 11 IPO for new shares Apr. 7

Key Dates

CAPEX

Financial structure improvement

Expansion of new business

Use of Proceeds

Rationale Marketing campaign for both gaming and new businesses, and debt payment

Shares to be issued 4,400,000 Outstanding shares 15,165,025

Capital Increase Ratio 29.01% Per-share allotment 0.29712033

Est. price per share KRW 62,100 / share Total capital increase KRW 273,240,000,000

Overview

Appendix

Expansion of existing business

- Source:Gartner

Robust expansion of mobile gaming amid continued growth of overall industry

Overall Gaming Mobile Gaming

- Source: Gartner, IDG

22

71 79

93 102

111 119

2011 2012 2013 2014E 2015E 2016E

(USD b)

2 2 3 5 3 4

5

7

2 2

3

4

6

6

4 4

5

7

8

11

2011 2012 2013 2014E 2015E 2016E

(USD b)

Asia

N. America

Europe

Others

/ Global Industry Outlook Appendix

Holding Structure Description

Listed Market

KOSPI Stock code 181710 KS

Listed shares

15,165,025 shares (Treasury 356,210)

Employees (As of end-2014)

2,823 employees (consolidated)

- 712 (NHN Entertainment)

- 530 (NHN PlayArt, Japan)

Headquarters

Play Museum, Seong-nam City, Gyeonggi

As of December 31, 2014 Ownership of domestic institutions and others internally estimated

23

Appendix / Company Info

Joon-Ho Lee,

16.9%

Executives,

3.8%

Treasury

Shares, 2.3%

National

Pension, 9.7%

Overseas

Investors, 8.3%

Truston Asset,

7.7%

Other

Institutions and

Retail, 51.2%

24

(KRW m) 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14

Sales 166,062 158,388 153,405 163,827 152,128 119,798 136,210 147,189

[By Business]

Game 161,928 154,947 146,191 156,779 147,061 112,076 118,184 114,200

PC 135,183 120,853 114,315 119,461 102,802 67,451 69,232 66,672

Mobile 26,745 34,094 31,877 37,319 44,259 44,625 48,952 47,528

Others 4,135 3,441 7,214 7,048 5,067 7,722 18,026 32,990

[Game Sales by Region]

Domestic 110,049 107,674 101,865 112,053 98,481 63,359 67,460 66,424

Overseas 51,878 47,273 44,326 44,726 48,580 48,717 50,724 47,775

Operating Expenses 103,649 105,473 116,647 137,022 129,838 127,104 142,394 144,700

Commission 47,400 51,971 52,747 65,965 60,475 46,804 48,171 47,805

Labor 36,856 37,476 43,934 44,276 43,509 47,648 53,091 52,697

Marketing 6,446 4,308 3,546 10,216 8,901 12,044 18,760 15,611

Depreciation 3,852 3,420 5,019 5,423 5,327 7,415 6,860 8,752

Others 9,094 8,298 11,401 11,142 11,625 13,193 15,512 19,835

Operating Income 62,414 52,915 36,758 26,806 22,290 (7,306) (6,183) 2,490

Margin 37.6% 33.4% 24.0% 16.4% 14.7% -6.1% -4.5% 1.7%

Appendix / Financials

25

Balance Sheet (Parent)

(KRW m) 4Q13 1Q14 2Q14 3Q14 4Q14

Current Assets 445,082 408,399 344,032 242,767 181,331

Cash and Cash Equivalent 308,299 299,928 237,781 142,082 76,289

Accounts Receivables 113,173 85,161 83,465 80,999 83,213

Others 23,610 23,310 22,786 19,687 21,829

Non-current Assets 706,551 728,738 786,007 866,613 991,194

Tangible Assets 17,185 17,444 23,364 24,087 27,638

Intangible Assets 23,807 14,427 14,675 18,810 18,931

Investment Assets 559,593 606,074 658,115 731,433 862,226

Others 105,966 90,794 89,853 92,283 82,399

Total Assets 1,151,633 1,137,137 1,130,039 1,109,379 1,172,525

Current Liabilities 65,489 44,842 39,169 32,900 39,800

Accounts Payable 37,144 23,099 26,184 20,888 23,236

ST Borrowings 0 0 0 0 6,227

Accrued Income Taxes 14,583 9,535 6,085 3,336 1,717

Others 13,762 12,209 6,901 8,675 8,620

Non-current Liabilities 32,644 31,652 33,244 34,531 35,385

Accounts Payable 1,038 5,719 6,461 6,803 7,407

Long-term borrowing 6,756 6,587 6,454 6,350 0

Severance Pay Allowance 24,850 19,346 20,329 21,378 27,977

Total Liabilities 98,132 76,494 72,414 67,430 75,185

Shareholders’ Equity 1,053,501 1,060,643 1,057,625 1,041,949 1,097,340

Paid-in Capital 7,583 7,583 7,583 7,583 7,583

Capital Surplus 1,004,559 1,004,559 1,004,559 1,004,559 1,004,559

Capital Adjustment (2,704) (2,704) (8,759) (25,457) (25,244)

Other Comp. Income 10,608 5,280 8,069 6,606 13,954

Retained Earnings 33,455 45,926 46,174 48,658 96,488

Non-controlling interests 0 0 0 0 0

Total Equity 1,053,501 1,060,643 1,057,625 1,041,949 1,097,340

Balance Sheet (Consolidated)

(KRW m) 4Q13 1Q14 2Q14 3Q14 4Q14

Current Assets 678,079 671,150 594,119 534,579 465,887

Cash and Cash Equivalent 494,342 495,330 430,056 355,591 286,759

Accounts Receivables 157,388 144,605 129,743 145,227 143,765

Others 26,349 31,215 34,321 33,760 35,363

Non-current Assets 500,266 518,739 581,695 693,575 804,238

Tangible Assets 28,764 29,856 37,246 47,532 63,151

Intangible Assets 55,705 75,299 100,684 167,873 160,868

Investment Assets 289,315 288,551 317,543 345,914 455,943

Others 126,482 125,033 126,222 132,256 124,276

Total Assets 1,178,345 1,189,889 1,175,815 1,228,154 1,270,125

Current Liabilities 119,681 110,582 106,883 138,580 151,004

Accounts Payable 74,707 67,684 65,718 67,913 87,802

Short-term Borrowings 1,588 1,046 1,144 25,709 30,679

Accrued Income Taxes 20,843 17,388 14,219 8,050 5,653

Others 22,542 24,464 25,801 36,908 26,870

Non-current Liabilities 45,648 48,673 50,251 79,310 78,405

Accounts Payable 1,030 5,066 4,814 5,102 5,695

Long-term borrowing 12,639 10,541 10,600 33,202 25,903

Severance Pay Allowance 29,513 31,241 33,004 34,500 28,596

Others 2,466 1,825 1,834 6,505 18,211

Total Liabilities 165,329 159,255 157,133 217,890 229,409

Shareholders’ Equity 1,003,426 1,015,133 1,003,917 995,121 1,024,872

Paid-in Capital 7,583 7,583 7,583 7,583 7,583

Capital Surplus 968,531 968,531 968,531 968,531 968,531

Capital Adjustment (3,431) (3,447) (9,490) (26,130) (25,958)

Other Comp. Income 10,791 7,554 220 (3,908) 710

Retained Earnings 19,952 34,912 37,074 49,045 74,006

Non-controlling Interests 9,591 15,501 14,764 15,143 15,844

Total Equity 1,013,016 1,030,634 1,018,681 1,010,264 1,040,716

Appendix / Financials