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INVESTOR RELATIONS

2nd Quarter Financial Results

Some of information and data in the material may reflect view of managements and have been prepared based on assumptions as of those dates which were made. There can be no assurance that the assumptions used by GAMEVIL are correct and even if they are that the effect of such assumptions

on GAMEVILs business and results of operations will be as projected. Therefore GAMEVIL will not be
responsible for individual investment decisions based solely on this material. GAMEVIL disclaims any duty to update the information in this material to reflect future events or circumstances.

Financial Results
(Unit: M KRW) 18,000 16,553 15,231 15,000 12,000 9,810 9,000 6,000 3,000 2011 2Q 2012 1Q 2012 2Q 6,153 5,206 6,378 5,874 15,000 10,000 5,000 2011 1H 2012 1H 20,000 16,185 12,531 6,716 11,080

Sales

OI

NI

(Unit: M KRW) 35,000

Sales
31,783

OI

NI

2Q

1H

30,000 25,000

4,054 3,763

6,305

(Unit: M KRW, %)

2011 2Q
9,810 4,054 41.3% 3,763 38.4%

2012 1Q
16,553 6,153 37.2% 5,206 31.5%

2012 2Q
15,231 6,378 41.9% 5,874 38.6%

Q-Q
-8.0%

Y-Y
55.3%

2011 1H
16,185 6,716

2012 1H
31,783 12,531 39.4% 11,080 34.9%

Y-Y
96.4%

Gross Revenue Operating Income

(OI %)
Net Income (NI %)

3.7%

57.4%

41.5% 6,305

86.6%

12.8%

56.1%

39.0%

75.7%

2012 2Q sales has increased 55% YoY. Gross Revenue: 15.2B KRW (YoY 55.3%), Operating Income: 6.4B KRW (YoY 57.4% ), Net Income: 5.9B KRW (YoY 56.1% ) Slight decrease in 2Q 2012 sales compared to record high 1Q 2012 sales (QoQ 8.0% ) 2012 1H sales has increased 96% YoY. Gross Revenue: 31.8B KRW (YoY 96.4%), Operating Income 12.5B KRW (YoY 86.6% ), Net Income: 11.1B KRW (YoY 75.7% )

Domestic/Overseas Sales
(Unit: M KRW) 18,000 Overseas Domestic (Unit: M KRW) 35,000 Overseas 31,783 Domestic

2Q
15,000

1H

30,000 25,000

12,000

10,066 61%

8,584

56%

18,650 59% 20,000 16,185 15,000

9,000 5,978 61% 10,000 3,000 6,486 39% 6,647 44% 5,000

6,000

11,145

69% 13,133 41%

3,833
0 2011 2Q

39%
2012 1Q 2012 2Q

5,040 0 2011 1H

31%
2012 1H

< Overseas sales by region >


(Unit: M KRW) North America

< Growth rate >


Composition (%)
58% 26% 14% 1% 100%

2012 1Q
3,768 1,718 911 89 6,486

2012 2Q
3,548 2,284 682 133 6,647

Composition (%)
53% 34% 10% 2% 100%

2Q
(Unit: %)

1H Y-Y
44% 73%

Q-Q
Domestic Overseas Total -15% 2%

Y-Y
67% 161%

Asia Pacific
Europe Latin & Others Total

-8%

55%

96%

2012 2Q sales has increased based on favorable domestic and overseas market sales performance. - Domestic and overseas sales totaled 8.6B KRW, 6.6B KRW increasing by 44% and 73% YoY respectively. - Although domestic sales decreased by 15% QoQ due to launching schedule, overseas sales achieved record high earnings with a 2% increase. Domestic and overseas sales have increased by 67% and 161% YoY respectively, totaling in earnings of 18.7B and 13.1B KRW Overseas sales increased to a 44% share of total sales, shifting the company to a global based business structure. - Asia Pacific sales composition(%) increased to 34% due to consistent sales growth in Japanese market.

Sales by Genre
Sports RPG Action Arcade Board Others

2Q

(Unit: M KRW) 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 5% 4% 19% 13% 26% 3% 2% 7%

1H

(Unit: M KRW) 35,000 3% 2% 6%

30,000 3% 3% 6% 26%

25,000 31%

35%

20,000 4% 5% 14% 11% 10,000 18% 29%

15,000

29%

31%

21%
4,000 2,000 0 2011 2Q 2012 1Q 2012 2Q 38% 22% 36% 5,000

48%

0 2011 1H 2012 1H

2012 2Q sports genre increased due to the popularity of new titles such as Fishing Superstars, Punch Hero and Soccer Superstars 2012. Fishing Superstars has taken a leading position among non-casual SNGs in the domestic market, with performance expected to improve. Both the RPG and Action genres have decreased by QoQ due to launching schedule, but all genres have increased YoY. Successfully created revenue from core gamer genres (Sports, RPG, Action) while spreading out sales of core genres more evenly.

Smartphone/ In-App Purchase Sales

Smartphone

(Unit: M KRW) 8% 37% 6% 7%

In-App Purchase

(Unit: M KRW) 9% 9% 44% 9%

45%

47%

92% 63%

94%

93%

91%

91% 56%

91%

55%

53%

2011 2Q

2012 1Q

2012 2Q

2011 1H

2012 1H

2011 2Q

2012 1Q

2012 2Q

2011 1H

2012 1H

2Q

1H

2Q

1H

2012 2Q smartphone sales increased to 94% of total sales by successful implementation of smartphone focused strategy. 2012 1H smartphone sales composition(%) have increased significantly YoY, resulting in a 38%p increase.

Continuously switching to free-to-play business model and improving on monetizing through IAPs. (56% 91%)

Expenses
(Unit: M KRW) (Unit: M KRW)

2Q

12,000

1H
10,397 991 10% 9,470 1,163 12%

24,000

20,000

19,867
2,153 11%

8,000

2,558 24% 2,004 21%

16,000

4,562

23%

5,721 722 757 4,000 2,249 39% 221 2% 282 1,859 3% 20%

12,000 13%
13% 4,849 47% 4,162 44% 9,449 1,354 8,000

809
3,570

14% 8% 38% 9% 31%

9,011

45%

463
1,530 2011 2Q

8% 27%

4,000

819

503 3,638

3% 18%

1,778 17%

2,897
2011 1H

2012 1Q

2012 2Q

2012 1H

Salary

Marketing

Commission Fee

Royalty

Others

The overall cost structure has been stable compared to previous year. Increased salary expenses and increase in number of employees has led to slight growth in labor costs, but marketing costs were only 2% of total sales. Commission payments and royalty payments coincide with sales; increase in number of employees and office relocation led to an increase in other costs.

2012 Launching Schedules


2Q
- Legend of Master 3 - Epic Raiders - Fruit Rush - 2012 Baseball KBO - Restaurant star - Sakura Slash - Free kick Battle - Duel of Fate - Arel Wars 2 - Plants War - TouchMix FX - Cartoon Wars 2 - Chicken Revolution - Punch Hero - MOLEHEART

3Q
- Kingdom Royale - Top Girl - Fantasy War - Toy Shot Unlimited - Monster Warlord - Galaxy Empire - Train City Mobile - Unblock Me - Emross War - Airport City

Domestic Platform

Total 16 titles
- Freekick Battle - TouchMix 2 - Punch Hero - Fantasy War - Immortal Dusk - Duel of Fate - Soccer Superstars 2012 - Cheese Please - Fighter City - Sakura Slash - Fruit Rush - Legend of Master 3 - Lost Memory - MOLEHEART

Total 10 titles
- 2012 Baseball KBO - Epic Raiders - Kingdom Royale - Fishing Superstars - Monster Warlord

iOS

Total 14 titles

Total 5 titles
- Chicken Revolution - Toy Shot - Legend of Master 3 - TouchMix FX - Freekick Battle - Kingdom Royale - Fantasy War - Duel of Fate - Train City Mobile - Sakura Slash - Arel Wars 2 - 2012Baseball KBO - Top Girl - Monster Warlord - Galaxy Empire - Unblock Me - MOLEHEART

Global Platforms

Android

- Jungtong Matgo 2012 - Immortal Dusk - Cartoon Wars 2 - Fishing Superstars - Epic Raiders - Fruit Rush - Plants War - Soccer Superstars 2012

Total 9 titles

Total 17 titles

Game launches may change due to business circumstances, etc. Developed for domestic telecommunications vendors and overseas iOS and Android vendors. Amazon, etc. are not included.

Vigorous launching of new titles expected in 3Q 2012 both domestic and overseas markets (10 titles on domestic platform, 5 titles on iOS and 17 titles on Android) 2012 3Q : Social and network games(Kingdom Royale, Monster Warlord, Train City Mobile, etc.) will make up most of the ten new games in the domestic platform.

Related Interests