The only. NC. In the. The. NC. The. Good morning and good evening. Thank you all for joining the conference call for the NC earnings results. This conference will start with a presentation followed by a Q&A session. If you have a question, please press star and one on your phone. During the Q&A. Now we will begin the presentation on NC second quarter of fiscal year 2026. Earnings results. NC. The. Conference call. Byung-moo. Hong. Wonjun. Chairman. Mobile. The. Good afternoon everyone. This is Amy Park, head of IR at NC. Thank you for joining our Q2 2026 earnings call. Joining today's call are co-CEO BM Park CFO, Willy Hong and Anil Simon, head of the Mobile Casual division. Now, let me begin with our financial highlights. NC. The. Mobile. Game. On mobile. The Q2. Revenue came in at 770.5 billion. Won, growing 101% YOY and 38% sequentially. This represents the second highest quarterly revenue in NC history. PC game revenue reached 343.8 billion won, while mobile games brought in 185.3 billion won. And mobile casual segment recorded 169.7 billion won. PC game. The. Following the previous quarter, Q2, PC game revenue once again broke the record for the highest quarterly revenue. In particular, Lineage Classic maintained its success momentum into the second quarter, achieving revenue of 185.5 billion won. Cumulative revenue for the 140 days from its release through June 30th. Stands at 269.1 billion won. PC. IP. IP. The. PC lineage revenue also increased sequentially and as a result, overall revenue for the PC lineage IP grew about nine fold year over year. Significantly expanding the value of the IP. Mobile. And. The. IoT revenue. Stabilized at 71.9 billion. Won and revenue for the three mobile titles maintained stable performance, rising slightly quarter over quarter. The platform player. To. Songs. The. Casual. And. Revenue. For. Mobile. Casual. Reward. Platform. Consolidated. Starting this quarter. Reached 125.6 billion won. Growing approximately two fold year over year. Revenue from mobile casual Studios grew about 20% YOY to 44.1 billion won. Played two. Other. Came in at 71.7 billion won, which reflects the accelerated revenue recognition of our remaining contract value for Blade and Soul two in China. Won-jun. In. Recombinant. Incentive. Entered. Incentive. Just play. Moving. On to. Operating. Expenses. Q2. Operating expenses came to 596.6 billion won. Of that, personnel expenses accounted for 260 billion won, driven by higher pre-booked company wide incentives in two development incentives and the consolidation of Just Play. Marketing Willy Hong. The. Marketing. Mobile. Casual. Player. User. Reward. The. Marketing. Expenses stood at 163.1 billion. Won 31.1 billion won for existing businesses and 132 billion won for the mobile casual segment, which included user reward costs for Just Play. The. Sessions and other expenses came to 148.3 billion won. For your reference, starting this quarter, the item previously named Variable Expenses, was changed to commissions and other expenses to more clearly convey the practical nature of these costs. Q2 operating. Totaled 173.9 billion won, with an operating margin of 23% pre-tax income and net income were 176.7 billion won and 131.2 billion won, respectively. The The CFO. NC. Hello, everyone. This is CFO Willy Hong. I'd like to briefly walk you through our recent performance and strategic direction. Dongyun. The. In turnaround. The. The. For the first half of 2026, revenue reached around 1.3 trillion won, representing nearly 90% of our entire revenue from last year. We also delivered 287.1 billion won in operating profit, marking a successful turnaround. These results underscore the significant momentum we are building across both top line growth and profitability management. Legacy IP. IP mobile. Casual. And NC. The. More important. This performance validates that our new strategy, anchored by three pillars legacy IP, new IP and mobile Casual, is already delivering tangible results. Within. NC games. IP. Portfolio. The lineage. Dongjun. Legacy IP. The IP. Rising. Steel. Frontiers. Guild. Wars three. Upgrade. Shinjuku. Line of the. With our core gaming business, we are diversifying our portfolio so that our success is never dependent on any single title. As demonstrated by Lineage Classic and Iron two. We continue to unlock renewed value across our legacy franchises. At the same time, we are elevating our core game competitiveness through an exciting pipeline of new IPS, including Horizon Steel Frontiers, Guild Wars three and Cinder City. Third party publishing game is also the. Several. Key. Metrics. Fluctuation. Global. On the third party publishing front, we plan to keep bringing well-tested games across new dramas to the global market. This strategy helps smooth out our revenue and bridge the gaps between. The longer development cycles of AA games. As such. NC is building a pipeline that can secure a competitive moat in the global market over the mid to long term. Cha pipeline. Global, And. Dongjun. Jun Yun Kim. Wonjun. NC. Is present. According to our mobile casual business, a new growth engine for the company. The segment was fully consolidated in Q2 and is already outperforming our expectations. It now accounts for roughly 22% of total NC revenue, solidifying its role as a key driver of our top line growth. Mobile casual reward platform. In just played Jun Yun Kim. Match is also to be. Studio a synergy. To. Yongzhang. Mid. Content. Third party games. Platform. Mid. In. Songjiang. Middle. Our. Mobile. Casual. Rewards. Platform. Just. Play is nearly doubling its revenue year over year, moving forward we see massive upside as we execute key strategic initiatives capturing synergies with studios like Lee, Hulu, expanding into video and interactive content, bringing on third party games, securing direct advertisers, and continuing to further enhancing the platform itself. 2026 is shaping up to be the year NC enters its high growth trajectory with major global releases hitting the market and our mobile casual business advancing will be operating at a whole new level of scale and global competitiveness. In global. Mobile. Casual. And. More. On. Byung-moo. At this time. I'm co-CEO BM Park, head of mobile, Casual Announcement, and I will provide further details during the Q&A session. Mobile casual. Mobile casual. Dongjun. Mobile. Media. Hello, this is BM speaking today we are joined by Anil Simon, our head of the Mobile Casual Division. So if you have any any questions related to mobile casual sector, please feel free to ask questions directly to Angel. Thank you. Q&A. We will begin. Please press star one. That is star and one. If you have any questions. Questions will be taken according to the order you have pressed. The number. Star one for cancellation. Please press star two. That is star and two on your phone. For. The HSBC. Kim. Jun Yun Kim. In the. The first question will be provided by Jun Yun Kim from HSBC. Securities. Please go ahead with your question. Mobile. User. In. On. The. Dongjun. Content. Mobile casual games. Or. Park. From. Content. In. Thank you for the opportunity. I have two questions and this is mostly about the mobile casual business, which. I think that this is the core growth engine. Firstly, regarding mobile casual sector, it seems like the. Compared to core business, the growth momentum is much faster. And when it comes to just play, when I look into the results, Q2, even q2. We are seeing rapid growth on a QQ level. So could you give us the background behind this rapid growth? And it seems like MOU is increasing vastly. So is this mostly due to the Ecpm changes or. Is it due to the MOU growth or monetization improvements? And do you think that this continued momentum will be continued in the second half of this year and 2027? And my second question is about just play. Just play is seeing a great increases in MOU. But I noticed that other peers are also increasing in terms of MOU. So I believe that there will be there are some differentiating factors for just play. So could you explain about that. And. It seems like there will be more synergy effects coming while it is integrating with the portfolio companies in NC. So when do you think that these synergies will likely to be shown? And also, could you also let us know about the KPIs that can allow us to look into the changes that the mobile casual segment can have, and also, I noticed that AI development is utilized in content generation. So is there any, any strategies that you can use AI for this platform? I know, are you still here? I. Healthcare. There are several questions that. Please go ahead. Let me answer. Let me answer this questions one by one. So when it comes to growth, we. We are expecting the growth for. Just play to to. Continue because they've been executing really well. And we have quite high. Pipeline of things that we need to execute. So one is it comes to the day to day business. They are still improving their live mechanisms and the whole infrastructure, how their how they're doing. And in terms of deployment of the capital on the user acquisition side, they're being very effective. So the growth should continue in the second half of the of the year when it. Comes to to MOU growth. The second question and the synergies. We expect. That most of the synergies to reflect in the second part of the year, because just play is going to open up there. Platform to our internal studios first. So spring comes and the others and then we will also keep seeing the expected growth also in the next year, because we are also going to open the platform for third parties outside of our portfolio companies. When it comes to just play. And then when it comes to the KPIs, the best public APIs to track is usually the sensor tower. Data. That that shows the the growth. But it needs to be carefully reviewed on. On that side. Because it really depends what kind of users you are buying. So if the the downloads are growing, it's not necessarily means that there are high quality users. So when it comes to just play, we are trying to acquire as high as highest quality users as possible because those users have the highest LTV. So we keep stacking the best users and then they can stay in the app for a very long time. And we are seeing that trend. And when it comes to AI, of course, we are going to leverage AI as much as possible. NC has advanced capabilities when it comes to AI, but we are also streamlining the whole operations and automating to make sure that our operations are very agile, very efficient, and we keep improving both on the demand side efficiency of the UA and then on the supply side, improving the LTV. Thank you for your question. The. Pipeline. Of. Dongjun. Is. More. Just playing in. In. Spring comes. Sensor. Tower. Quality. User. LTV. AI. NC. AI. Agile. Efficient. LTV. Mobile. Content and. Just play. Studio a. Synergy. Not just. Play. A. Ahn. Studio SDK. So. Studio. Just play your. Play. So. And then. Studio. Third party. Studio. To SDK. The. Then. Platform. The. So. To. Add more context. We wanted to have synergy effects as much as possible for. Just play. But since. Just play is growing rapidly, we want to focus on that for this quarter. However, for the second half of this year, we will integrate studio SDK and we will also implement publishing integration for Just Play. So next year, as we were going to onboard third party SDKs. So we think that greater growth momentum will be witnessed. Please. For. The following question will be presented by Seung-ho Choi from Hyundai Motor Securities. Please go ahead with your question. Okay. Given. The. Changes. In. The. Are you for the opportunity and. Congratulations. First on the good results. I have two questions. It seems like lineage Classic is achieving revenues higher than expectations, so I was wondering if. Are you expecting the revenues. Will. Momentum will continue even in the second half and next year? And for Lineage Classic, can you do you also expect that it will have long term PLC just like lineage M and it seems like thanks to the success of iron two and Lineage Classic, the MMO, RPG market is growing once again. So what's your take on this market outlook? And secondly, it would be great if you could give us more color onto the new title lineup. Okay. Lineage. Mmorpg. MCU. So. On. The. Lineage. Classic. Life cycle. So. Lineage M is. A life cycle. With the. Yeah. For your first question, unlike. Typical. RPG games where it reaches its peak in terms of user condition and declines. Lineage classic is maintaining strong MOU, even for 140 days, and I've talked with the dev team and the dev team is saying that Lineage Classic is still. It's early phase of operations. So they believe that the PLC will be longer than lineage M. Lineage. Lineage. Kim. Iron global. Horizon. Frontiers in the city. Early. Access to pre-sale. And for the new title lineup, we have many titles prepared for lineup. But for second half of this year and next year, we're preparing for tentpole titles including iron two Global Launch Horizon. Still Frontiers, and Center City. And we possibly will be able to have pre-sale for Guild Wars three. Publishing. Third party publishing. In. A. More beta of. The. Iron. Two year. GTA six. Test. Publishing. Or. In. Third party. Publishing game. So. Including. Third party games and our in-house games, we will likely have ten titles for the second half of this year and next year. So with that in mind, we will be able to release title every month. So. But we need to consider the timelines for iron two launch and also GTA six launch, which will be made in the second half. So after going through rigorous testing, we will determine the release timeline. So I want to emphasize that ten titles are being prepared for the second half and next year. And as you may know, it includes the third party games that are already communicated and also unannounced titles. Came during. The. Global publishing. Global. Publisher. Synchronize. So. Much of the. Global. Global publishing. NC. And. Publishing. Publishing. Are. And one more thing I would like to add is that all games will be shipped in the global markets. I know there has been some concern over the. Over our global publishing capabilities, but I want to assure you that we have recruited expertise experts who have no. Experience in the global publishing. They have finished their onboarding process and they are now on sync. And I'm very cautiously optimistic about our global publishing outlook. And for each region, we want to pursue a localized publishing businesses, for example, in South East Asia, we have NCB. So there will be a differentiating business. And in China we're going to utilize various partnerships for publishing. And next year we will also look into the opportunities for Latin America and Mena. Next question please. Eric Cha. Jaemin. The The following question will be presented by Eric. Cha from Goldman Sachs. Please go ahead with your question. Oh. In two. To one. Iron two. Demand. And. In. Order. To. Iron to. China. To. New. You. To. In. IP. Powder. Be. Dongjun. We can. Do. You. Game. Or. Community. To. Thank you for the opportunity. I have two questions. My first question is related to iron. Two. It seems like iron two Korea and Taiwan. Q2 revenues has stabilized even greater than our expectations. So could you give us your outlook on the second half of this year? Do you think that it will further stabilize and which indicators are you basing for this outlook and previously, it was communicated that you will not launch in two in China, but I believe that this decision has been changed. So could you give us more color onto the background of this change? And what's your expectations for the China release? And my second question is about Guild Wars three. It seems like the the brand or the IP, the Guild Wars three awareness is lower than it's brand awareness. Awareness as a franchise. So. And recently today it was disclosed that there will be a loan for Guild Wars for. Arenanet. And I think it's a sizable amount. So could you give us your expectations for Guild Wars three? And what's your grounds modeling that number? And for. After the announcement, how did the gamer community reacted to the announcement? And could you give us more color onto the development progress and the release timeline? So before I answer your question, I want to emphasize that our business model will change to the way that we are not depending on a single title, but we want to have more sustainable growth. But I will also address your question related to specific games. Okay. Jason. So. Be. Kim. So. I. I. Chapter one update. Is in. Membership. Willy Hong. We. Update. The. MCU. Iron two. Global. Jang-wook. Will. Oh. Samsung. Game. Or. Game. All. Star. Will. To. Address. Your first question. We had. Chapter one update in July, and before that we have lowered the prices of membership and cosmetics. And for that P has declined. But in July and August we noticed that PCU has increased and revenue rather increased compared to June and Mo has increased. So prior to the global launch of iron, two, our expectation was that for the Korean Taiwanese market, it will decline, but it rather increase. So it's a positive sign for us. And I think this is thanks to our active communication with our from our dev teams, with our gaming users. I think the title can long run. And we believe that the numbers will not rather decline in Q3 and Q4. MMO, IPG. Game. Iron two. Launch. And. Sun-ah. Will. Or. Samsung. Jang-wook. Your. Iron. Two. Publishing. Has. Kajang. LiveOps. Partnership. And. For the Chinese market. Since there are not many Mmorpg titles in the market, our original plan was to consider the Chinese release opportunity after the global release of iron two. But even during March or April this year, many Chinese publishers have reached out to us asking for iron two publishing opportunities. So we decided to make this decision. Decision earlier, using the most favorable terms and with the company, with the company that has highest LiveOps capabilities. Iron. Iron. One. IP. Two. Mobile game. And. On the flexible. Iron. Iron two. Iron. PC. And. Publishing. Iron. Two. Mobile version. Iron. And just like Shanghai games. Had. The license of our IP for iron one and developed the game. We want to have more flexible collaboration with the Chinese publisher and we haven't signed the contract yet for the. Iron two release with Zhongji games. And just like Iron Classic, we will include iron PC and iron two mobile. So more specific terms are under negotiation. I believe that once we. We sign it, possibly in August, we'll be able to disclose this detail and please understand that the terms are very favorable to us. And. For. Guild Wars three. I believe that. Guild Wars three is the Western Mmorpg. That is not. Well known to our Korean users, but Guild War three, Guild Wars IP is one of the top three Mmorpg in the Western market, alongside Wow and Final Fantasy. In. MMO, IP. Jaemin. And. Wow. MMO. In. In. In. Gaming. A. A. Two. And. Two. Community users. The. Three. Franchises. Community. Play. The. And to give you more background. When. Guild Wars two was launched in 2012, the community had 6 million users. But now for the entire Guild Wars franchise, the community and the user base is around 30 million users. Summer Game Fest. Game. Fest. Big game. Steam user wishlist. So. Community. And after the announcement of Guild Wars three at Summer Game Fest, surpassing various games that are featured at that event, it ranked the number two on wish on steam and our community is resonating well with the announcement. So. Summer came fast here. Below 20. And. Core development. In this. Production. Content. And the background behind the additional loan. After the announcement of Guild Wars three is that last year. Arenanet had been in the core development phase. But this year, Guild Wars three team has moved on to the mass production stage, preparing a lot of content for. Prior to the release, and they need a lot of resources. To. To. Confidential. And. Dongyun. Junhyun. AMA. Alpha. Beta test So. Although I cannot disclose further details because it's confidential, but I believe that Alpha and beta testing can be made during next year. And if you look into the closing date of loan, you'll be able to assume. The release date as well. Launch. Two. Cannibalization. And even. As a. Kill due to a MOU. Or three. Or. Franchise. Other. You are. Live. Service. So. Two. Three. Two. Two. And I understand that there is a concern whether there will be cannibalization. Impact on Guild Wars two when Guild Wars three is released. However, what's exciting is that when. After the announcement of Guild Wars three during the Summer Games Fest, we noticed that Guild Wars two MOU and revenue reached its peak within the last three years, meaning that Guild Wars franchise is still showing strong momentum. So what users are very welcoming about is that even when Guild Wars three is released, Guild Wars two will be continued to be serviced and there will be a system that connects Guild Wars two and Guild Wars three. So. Test. Marketing. Is the. To launch. A. Community. Users. Are. Package. To. Franchise. Community. To. Platform. Arenanet. Platform. In the. Even. Arena. Platform. Steam. Console. Are. Two. Platform. Platform. Localization. So I. Along with the test schedule for next year, the team is preparing marketing beats as well, so I think many people are curious about the expected profitability of Guild Wars three. But instead of giving you specific numbers, I would like to give you some benchmarks. So when the Guild Wars two was launched, as I mentioned, the community user number was around 606 million. And within the first 12 months of release, the package that was sold was amounted to 3 million units. And right now, Guild Wars community is having around 30 million users. And for Guild Wars two, when it was launched in 2012, it only was launched on its first party platform. But Guild Wars three is considering releasing in not only in the first party platform, but also on steam and Console and. And Guild Wars two was not released in Asia from scratch, but for Guild Wars three, we're considering purple and we are. We're also considering the release of Asian market. So please keep that in mind when you are. Modeling our outlook. Production. Arena. The. Only. Engine. Fibro. NC. Headquarters. Engine. Fibro. Games. Jaemin. Is. The. And lastly, as the team moved on to the mass production stage, we're actively collaborating between HQ and Arenanet in terms of technology. This is because our Guild Wars two was developed based on the proprietary engine. But for three. There. Hoping. Based on Unreal Engine five and since NC HQ has a best capabilities and know how in developing the game's Unreal Engine five, we are supporting the Arenanet team and also the. The strong collaboration between the two parties are happening around technology. Next question please. Alicia de. The following question will be presented by Alicia from Citigroup. Please go ahead with your question. Hello. Good afternoon. Thank you for taking my questions and congratulations on the strong results. Have a couple of follow up. One is that given the outperformance for the first half, just wondering, any change of the latest full year guidance and then second is that specifically do you have any specific guidance for the mobile cash revenue to reach in terms of the second half this year? And then lastly, is given the strong performance for Linux Classic, for example, as we enter into the high base into 2027 for this legacy games, is there any planning to revive and sustain the growth of the legacy title into the 2027, or is it more driven, you know, to be driven by the new titles like the three and the Inner City, or even The entire global contribution? So any colors you could share would be great. Thank you. Yun. The. The. Classic game. You. Lee. Legacy. IP. Iron two. Global. The. Free. Guidance. Marketing. Made. Hong. IGA. Are. So. For your question regarding full year guidance, I'm very cautious to share this, but we expect that we will be able to achieve the upper end of the 2.5 trillion range. However, for Q3 due to seasonality and marketing expenses and recognition of. Development incentives, we think that it will be moderated. But on a YOY basis, we think it will rapidly increase and especially in Q4. Mobile. Images. Play a. Year by year. Two. To. Annual. Do you have any. Anything to add? About the schedule. Guidance. So for. For mobile. Yeah. For mobile casual guidance. Unfortunately, I cannot share any specific targets, but what I can say is we are expecting growth to continue. If we look at Jasper, which is the main driver of the growth, the MOU is around like 70% year over year. And it's not just MOU. As I mentioned earlier, we are seeing a growth in LTV. So how they are operating their games. And we are also scaling on the iOS side. Plus the effects that are coming from synergies in Q3 and Q4 towards the years, which are also the best quarters. The seasonality wise. So yeah, we are expecting growth to continue and in line with our like 20, 30 targets for the NC as a whole. Mobile. Guidance. Typekit. In. May. Why. Why. LTV to. Are. Dongjun. To. Q3. Q4. Synergy. Is. The. Mobile. Organic. Synergy. Dongyun. Which. Title. Mobile. Casual. IAP. Mobile. Casual. Publishing. The. And. Synergy. May. May. May. Come. In. Dongyun. So. So. For the second half of this year and next year, we believe that mobile casual segment will. Accelerated growth and. The reason behind this is the organic growth. And I'll just mentioned. And also the synergy effects that will happening with our acquired studios in the second half. And although it hasn't been announced yet, we are also pursuing publishing opportunities. That is focusing on IAP model in the mobile casual business. And I think most of the revenues can be contributed starting from next year. And there's also one M&A opportunity. We think that that will have great synergy effect that is currently discussing. So we expect that high growth for mobile casual business in the second half of this year and next year. Lineage classic cutting. In game. Hong. And I am. Billy will be. CCD. I play CCG. A. Launch spin off. Game. And Kim. My children. IP. IP and. IP. To. And. For 2027. We are also planning on expanding the regions of the legacy IPS, including mobile in China and also we have spin off games, including CCG title that is announced by Bilibili, which is based on the Guild Wars IP. So additional contributions will be made from such titles. However, for the large amount of revenues, we think that it will be generated by our new IPS. As I mentioned, there will be 410 titles in our lineup and alongside that, so including that four titles, we are preparing ten titles in our new lineup for the global launch. Next question please. The currently, there are no participants with questions. Please press star, one star and one to give your question. To. To. IP. Hong Kong. Jin-gu. So. Yes. In. The. Without. Further questions, I would like to start my closing remarks. I believe that for this. Results, as I continuously communicated last year and so far we wanted to build foundation for expanding existing IPS, creating new IPS and foundations for new businesses. I think we have been able to show more tangible results about the foundation, and based on that foundation, we will achieve a more sustainable and predictable growth. Mobile. Casual. So. I on to global China. IP. IP. Yun. And. The. And for the second half of this year, in 2027. We expect accelerated growth in the mobile casual segment and also starting with the global release of iron two, we have ten titles in our new IP lineup, and we will also pursue expansion of the legacy IPS. So I'm confident that we will be able to have a much higher growth in next year. Won-jun. Jaemin. And. And. Sun-ah. So. One more. Mobile. Casual. Audio. So. The. And. For 2028 and 2029. Oh. Of course, there will be. Having revenues coming from new titles that will be released in 2027 to be reflected fully. There are also 3 to 2, 3 to 4 large scale. IPS that we are currently preparing, although they are not announced yet. And also we are expecting accelerated growth from the mobile casual segment. So we expect that we will be able able to achieve the 5 trillion won range that I have previously communicated for 2030 goal, and I want to make our best effort as a management level to achieve the goal much earlier. And I hope that we can achieve this in an earlier period. Thank you. To show our support and interest for our company. Thank you.