Nexon Announces Second Quarter 2016 Financial Results

Solid Fundamentals amidst Japanese Yen Appreciation, Continued to Strengthen Strategic Partnerships with Renowned Game Developers

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Nexon Announces Second Quarter 2016 Financial Results

Solid Fundamentals amidst Japanese Yen Appreciation, Continued to Strengthen Strategic Partnerships with Renowned Game Developers

TOKYO – August 10, 2016 – NEXON Co., Ltd. (“Nexon”) (3659.TO), a worldwide leader in free-to-play online and mobile games, today announced financial results for its second quarter ended June 30, 2016.

“Our solid second quarter results reflect strong execution and good performance from our China business,” said Owen Mahoney, President and Chief Executive Officer of Nexon. “I am also pleased with the important strategic progress we made during the quarter, including our partnership with renowned Japanese developer Sansho Studios and our acquisition of wellgames, the Korean developer of SPECIAL SOLDIER, a high-quality first person shooter for mobile devices. Our best-in-class roster of partnerships remains a cornerstone of our strategy to deliver high-quality, tailored content to players around the world.”

Mr. Mahoney continued, “We are excited about our rich pipeline of mobile and PC online games for the second half of 2016 and beyond, including highly-anticipated titles such asMapleStoryM, Dungeon&Fighter 2D / 3D mobile (working title), LawBreakers andMoonlight Blade, and we look forward to delivering them to our global player base.”

Second Quarter 2016 Highlights:
·           Second quarter revenues were 38.1 billion yen, down 11% year-over-year on as-reported basis, up 4% on constant currency basis, around low-end of Nexon’s outlook.
·           Operating income was 13.4 billion yen, around high-end of Nexon’s outlook.
·           Net income attributable to owners of the parent was 7.6 billion yen, which was below Nexon’s outlook primarily due to FX loss in U.S. dollar-denominated cash deposits.

Third Quarter 2016 Outlook:
·         Revenues expected to be in the range of 38.4 to 41.3 billion yen.
–    PC online game revenues expected to be in the range of 29.4 to 31.4 billion yen.
–    Mobile game revenues expected to be in the range of 8.9 to 9.9 billion yen.
·         Operating income expected to be in the range of 10.6 to 12.9 billion yen.
·         Net income attributable to owners of the parent expected to be in the range of 9.6 to 11.6 billion yen.

Earnings Presentation, Conference Call and Replay:

Nexon management will host an earnings presentation for analysts, investors and media to discuss the Company’s financial results and outlook. The presentation will be conducted in Japanese with simultaneous English translation today at 5:00 p.m. Japan Standard Time (JST) / 4:00 a.m. Eastern Daylight Time (EDT). The earnings presentation materials will be available on Nexon’s Investor Relations website following the presentation.

A replay of the call will be available about 30 minutes after the conclusion of the conference call and can be accessed until August 17, 2016. A transcript of the call will be available within several days on Nexon’s Investor Relations website.

For additional information regarding Nexon’s second quarter 2016 financial results, please visit the Investor Relations section of Nexon’s website athttp://ir.nexon.co.jp/en/.

This press release is prepared to offer reference information about Nexon to investors and is intended to generally provide investors and analysts with financial and operational information about Nexon, but not to solicit or recommend any sale or purchase of stock or other securities of Nexon.

About NEXON Co., Ltd.  http://company.nexon.co.jp/
NEXON Co., Ltd. (“Nexon”) (3659.TO) is a worldwide leader in free-to-play online and mobile games. Founded in Korea in 1994, Nexon developed one of the world’s first graphics-based massively multiplayer online games. Nexon also pioneered the concept of microtransactions and the free-to-play business model, setting a new standard in which play is free, and users have the option to purchase in-game items to enhance their experience. Nexon currently services around 100 titles in more than 190 countries. The Company is headquartered in Tokyo, Japan and its shares are listed on the Tokyo Stock Exchange.

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