Good morning, and good evening. First of all, thank you all for joining this conference call, now we will begin the conference of the fiscal year 2023, second quarter earnings results by Netmarble. This conference call will start with a presentation, followed by a divisional Q&A session. If you have a question, please press star 1, star and 1 on your phone during the Q&A. Now, we shall commence the presentation on the fiscal year 2023, second quarter earnings results by Netmarble. Good afternoon, this is Hong Kim from Netmarble's IR team. I would first like to thank investors and analysts for taking time out of your busy schedules to attend Netmarble's 2023 Q2 earnings session. Here with us, are CEOs Young-Sig Kwon and Kiwook Do, and other company representatives. They will address your questions after the results presentation. Please note that the contents presented today have yet to undergo an independent auditor's review and could be subject to changes upon such review. With that, CEO Kiwook Do will deliver the results presentation. Good afternoon, this is Kiwook Do. I will go over the general results of Q2. Please refer to page 2. With the update of Contest of Champions, revenue Q2 increased 0.1% QOQ, and decreased 8.7% YOY at KRW 603.3 billion. With marketing expense increase with new title, EBITDA decreased 46.3% QOQ and 49.8% YOY at KRW 10.8 billion. EBITDA margin rate recorded 1.8%. Good afternoon, this is Kiwook Do. I will go over the general results of Q2. results of Q2. Please refer to page 2. With the page 2. With the update of Contest of Champions, revenue Q2 increased 0.1% QOQ, and decreased 8.7% YOY at KRW 603.3 billion. With marketing expense increase with new title, EBITDA decreased 46.3% QOQ, and 49.8% YOY at KRW 10.8 billion. EBITDA margin rate recorded 1.8%. Q2 increased 0.1% QOQ, and decreased 8.7% YOY at KRW 603.3 billion. With marketing expense increase with new title, EBITDA decreased 46.3% QOQ, and 49.8% YOY at KRW 10.8 billion. EBITDA margin rate recorded 1.8%. Q2 increased 0.1% QOQ, and decreased 8.7% YOY at KRW 603.3 billion. With marketing expense increase with new title, EBITDA decreased 46.3% QOQ, and 49.8% YOY at KRW 10.8 billion. EBITDA margin rate recorded 1.8%. Next page is on operating and net profits. Q2 saw an operating loss of KRW 37.2 billion, and net loss of KRW 44.1 billion, and controlling shareholder loss of KRW 27.1 billion. With non-occurrence of dividend income that was already reflected in Q1, non-operating income and loss decreased by KRW 2.1 billion over the previous quarter. Next page is on regional revenue breakdown. Overseas revenue in Q2 recorded KRW 519.1 billion. The contribution from overseas revenue increased 2 percentage points over the previous quarter at 86%. The regional breakdown is as follows: North America, 52%; Korea, 14%; Europe, 12%; Southeast Asia, 10%; Japan, 6%; and others, 6%. With the Marvel Contest of Champions update, North America's revenue share increased 4, increased 4 percentage points QOQ. Next page is on revenue mix according to genre. As of Q2, our portfolio continues to be diversified with casual games 48%, RPG 30%, MMORPG 13%, and others 9%. With Marvel Contest of Champions update, contribution from RPG rose 3 percentage points. Next page is on game portfolio. ... Following page is on game portfolio. As of Q2 end, Marvel Contest of Champions accounted for 12%, Jackpot World 10%, Cash Frenzy 9%, Lotsa Slots 8%, Seven Deadly Sins Grand Cross 6%, The company's game portfolio remains diverse. Next page is on major cost structure. Operating cost at Q2 was at KRW 640.5 billion, which is an increase of 1.5% QOQ and decrease of 7.9% YOY. Fees and commissions recorded KRW 240.3 billion, which is a 2.8% decrease QOQ, and 7.9% decrease YOY, with cost efficiency measures in place. Labor costs recorded KRW 193.2 billion. With one-off severance-related payments, it increased 3.0% QOQ and 1.8% YOY. Lastly, our marketing costs stood at KRW 113.1 billion. With upfront marketing budget execution with new title launch, it increased 12.8% QOQ and decreased 21.7% YOY. Now, on our new title lineup. In second half of 2023, seven global new titles, including Arthdal Chronicles and Solo Leveling: Arise, and three China market releases, including Seven Deadly Sins, Ni no Kuni Cross Worlds is planned. The company is planning to launch diverse new titles, starting with Tower of God: New World. We, more than ever, are paying close attention to each and every project. The company hopes to deliver new joy to our users with differentiated and sophisticated new titles, and we'll do our best to see our efforts reach fruition. I look forward to your interest. This concludes our results presentation. Now we will be entertaining your questions. Thank you. Now Q&A session will begin. Please press star one, 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. The first question will be provided by Seung Hoon Lee from IBK Investment & Securities. Please go ahead with your question. Yes, I will give you the translation to the two questions first. First is on your new title, Tower of God. Well, has it met your internal expectations? What is your position on the titles that will be introduced going forward? This is the first question, and now on the second question, well, I've seen slight rise in your marketing costs and also labor, and what is your forecast related to these expenses? Hello, this is Kwon Young-sik. 현재 그 Korea의 지표는 전반적으로 매출 리텐션 모두 기대치 이상으로 지금 나오고 있습니다. 저희들이 이제 grand launch를 global을 했는데, 지금은 이제 Korea만 마케팅을 집중하고 있는 상황이고요. 지금 자연 유입으로 된 전 세계 유저들의 지표를 보면, 과거 저희들이 칠대죄 global launch했을 때와 유사한 지표를 보이고 있습니다. 조만간 Western부터 마케팅을 진행할 예정이고, Japan과 Western, U.S. 같은 시장에서 좋은 성과를 보일 것으로 예상하고 있습니다. Yes, this is CEO Kwon addressing your first question. We've launched the Tower of God on July 26th. Indices from the domestic market very promising. The revenue retention rate is more than our expectation. We did go for a global brand launch, but the marketing activity so far has been concentrated in the Korean domestic market. If we look at the naturally attracted global users indices, it's pretty much similar to what we have witnessed with the launch of our the Seven Deadly Sins title. We will commence our global marketing activity, starting with the Western market, and we do have high expectations from that market and also, from Japan as well. 신작 일정에 대해서 답변드리겠습니다. GRAND CROSS: Age of Titans는 내일 글로벌 론칭을 합니다. 그 Seven Knights Idle Adventure가 9월 초, King Arthur: Legends Rise가 9월, Everybody's Marble 2 한국이 11월 예정하고 있습니다. Let me briefly elaborate on our new title launch timeline. Well, the Age of Titan is expected for a global launch tomorrow. The Seven Knights Idle Adventure, it will be introduced soon, the earlier part of September. King Arthur: Legend Rise, that's also slated for the month of September. Everybody's Marble, well, the Everybody's Marble 2, that is slated for November this year for the domestic market. 나 혼자만 레벨업: 아스달 연대기는 현재 4분기 출시를 준비하고 있는 중이고요. 파라곤의 경우에는 지금 Sony와 콘솔 버전을 동시에 출시하기 위한 개발을 진행을 하고 있습니다. Solo Leveling: Arise and Arthdal Chronicles, we are aiming for a date somewhere in the fourth quarter. Paragon, we're working together with Sony for concurrent introduction of the console version as well. 네, 도기욱입니다. 이 두 번째 질문에 대한 답변 드리도록 하겠습니다. 이 분기에, 영업이익이 적자폭이 확대되어진 이유가, 마케팅비하고 인건비의 영향입니다. Yes, this is CEO Do addressing your second question. We did see slight increase in our loss numbers, operating loss numbers in the second quarter, mainly due to our marketing expense and labor. 네, 마케팅비부터 먼저 말씀을 드리면, 신작 론칭에 따른 사전 마케팅 비용이 이 분기에 집행됨으로 인해서 전 분기 대비 증가한 건 맞고, 하반기에도, 다수의 신작 출시로 인해서 상반기 대비 증가할 것으로 예상은 합니다만, 연간 전체적으로 봤을 때는 신작 출시에 따른 성과하고 연동해서 마케팅비 집행 내역을 조절할 거기 때문에, 전년 대비 마케팅비 비중은 감소할 걸로 전망하고 있습니다. Yes, well, as we've mentioned this during the presentation, we've launched the new titles in the second quarter, and with that, we did see marketing co- expense rise on a QOQ basis. Compared to the first half of this year, with more title launches, we do expect to see marketing expense see further growth in the second half as well. However, speaking for the whole year as the year as a whole, since the marketing expenses are related and conjoined with the new title launches, if you look at the percentage term of the marketing expense to our revenue, it would remain steady. Yes, I will speak regarding labor costs. Now, on labor. 어, 이 분기에 인건비의 상승은 해외 자회사의 인력 조정으로 인해서 일시적 퇴직 위로금이 발생됨으로 인해서 생긴 일시적 비용인 것이며, 삼 분기부터는 이 일시적 효과가 없어짐으로 인해서 다시 일 분기 수준으로 다시 감소할 걸로 예상하고 있습니다. Yes, well, the rise in our labor cost in Q2 was mostly because of the severance payment related to our overseas subsidiaries, so this is a one-off event. Starting from Q3, it would be back to the level that we have witnessed in Q1. 올 초부터 비용에 대한 부분은, 계속해서 기조는 동일하고, 그 기조라 함은 전체적으로 효율성에 대한 부분을 계속해서 모니터링하고 관리를 함에 따라서 전년 대비 크게 상승하거나 큰 폭에 있어서의 증가가 발생되지 않도록 지속적으로 관리할 예정입니다. Our basic stance when it comes to expenses and costs remains as we have told you in the beginning of the year, we will be constantly monitoring and managing efficiency, so you won't be seeing much of a big increase. 다음 질문 받겠습니다. We will entertain the next question, please. 다음으로 질문해 주실 분은 키움증권의 김진구 님입니다. The following question will be presented by Jin-gu Kim from Kiwoom Securities. Please go ahead with your question. Ne, 질문기에 감사드립니다. 두 가지 질문을 드리도록 하겠고요. 첫 번째로, 하반기 출시 예정인 중국 판호작들의 사전 예약자 수와 출시 일정 등에 대해 공유해 주시면 감사하겠습니다. 두 번째 질문은, 내년 출시작들이 올해 G-Star에서 공개될 것으로 예상이 되는데요. G-Star에서 어떤 게임이 공개될 예정인지, 말씀이 가능하시면 공유를 부탁드리도록 하겠습니다. 감사합니다. Yes, I will give you the translation to the two questions. First, it's about your Chinese business. You have plans to release titles in the Chinese market in the second half of this year. What's the pre-subscription status like? Could you please elaborate on the detailed schedule in your Chinese market? My next question: I believe that the titles that you will be introducing in earnest next year will be first introduced at the G-Star event. Could you please give us more color on what titles will be introduced at G-Star? Kwon Young-sik입니다. 중국 출시자 상황은 사실 이게 publisher가 Tencent이기 때문에 수치를 직접 공개해 드리기는 어렵고, 다만 일곱 개의 대죄와 제2의 나라는 현재 사전 예약을 받고 있고, 500만 명 이상의 사전 모객을 목표로 준비를 하고 있고, 어렵지 않게 달성할 것으로 보여지고 있습니다. 일곱 개의 대죄는 September에 론칭할 예정이고, 제2의 나라는 지금 추가 개발이 진행 중이라서 몇 개월 정도 시간이 좀 더 걸려서 Q4 말 정도로 예상을 하고 있습니다. Yes, this is CEO Kwon, once again, addressing your question on the Chinese business question. Well, Tencent is our publisher in the Chinese market, I don't think it's appropriate for us to be elaborating on concrete numbers. If I may give you a brief timeline, the Seven Deadly Sins title, it will be introduced somewhere in September. Ni no Kuni, well, we need further development on that title, I believe that it will take several more months to co-complete, probably will be meeting the users in end of Q4. We are getting pre-subscription for the two mentioned titles, we believe that 5 million+ is quite doable. 2023 G-Star에는 저희들이 오픈월드 RPG 1 종, CCG 1 종, MMORPG 1 종을 공개를 할 예정입니다. 이제 보통 저희들이 G-Star 전에 출품자 공개를 하면서 홍보 마케팅을 진행을 하기 때문에, 출품작에 대한 상세한 정보는 조금만 기다려 주시면 시장을 통해서 확인하실 수 있겠습니다. Yes. At the G-Star event in 2023, we are going to introduce one open world, RPG, and one CCG, and one MMORPG. Just prior to the actual G-Star event, we will be engaging in many PR and marketing activities through which you will be able to get more detail. 다음 질문 받겠습니다. Next question, please. 다음으로 질문해 주실 분은 유진투자증권의 정의훈님입니다. The following question will be presented by Eui-hoon Jung from Eugene Investment & Securities. Please go ahead with your question. 네, 안녕하세요. 저 간단하게 3가지만 질문드리도록 하겠습니다. 먼저 저희 SpinX 3종 게임 매출 비중이 현재 높은데, 소셜 카지노 회사에서 바라보는 북미 소셜 카지노 시장 전망은 어떤지? 두 번째는 내년도 회사의 게임 개발의 방향성이라고 해야 될까요? 올해 많은 신작들을 통해서 매출 반등을 좀 노리신 것 같은데, 내년도도 올해와 같은 방향성일지, 마지막은 지금 회사가 보유한, 뭐, 타 법인 지분에 대해서 시장이나 언론에서 뭐, 얘기가 가끔씩 많이 나오고 있는데, 회사가 어떤 지분에 대해서 어떤 생각을 가지고 계신지, 앞으로 어떻게 하실 예정이신지도 궁금합니다. 감사합니다. Yes. Yeah, I will translate the three questions. First is on the three game titles of SpinX. How do you see the North American social casino market? I would like to hear your forecast or your view on the North American social casino market. My second question is on your development directionality. This year, you have introduced the various new titles, and would it be the same stance in year 2024? This second question was on your development directionality, and my third question is on your stakeholding of other companies. Well, what will you be doing with that investment? 네, 권영식입니다. 그 북미 소셜 카지노 시장 전망에 대해서는 지난 분기도 한번 말씀을 드렸었는데, 시장 자체가 지금 사실, 어, 성장하고 있지 않은 걸로, 성장은 하지 않- 않는 걸로 지금 보고 있고, 어, 그 대신에 이용자의 퀄리티는 조금씩 높아지는 걸로 보여지고 있습니다. 그래서 SpinX의 전략 방향성은, 어, IT, 그 카지노 IT를, 어, 활용을 해서, 어, 신작을 계속 만들어가는 방향으로, 어, 고 퀄리티의 고객을 확보하는 전략으로 진행을 하고 있습니다. Yes, this is CEO Kwon addressing your first question on the North American social casino scene. Well, we do not expect to see exponential growth in that category. However, we will be focusing on enhancing the user quality. The strategic direction of SpinX going forward is to introduce new titles using casino ITs, and at the same time, enhance the quality of the users. ... 그 두 번째 질문에 대한 답변은요. 저희들이 지금 올해 론칭하는 신작도 많고, 내년에도 지금 론칭할 신작이 꽤 준비가 되고 있는 상황입니다. 그러다 보니까 새로 시작하는 신작은 제한적일 거라고 예상은 하고 있고, 전반적으로 신작에 대한 방향성은 멀티 플랫폼입니다. 그래서 콘솔, 피씨, 모바일을 아우르는 멀티 플랫폼으로 신작은 개발 방향성을 잡고 있습니다. Yes, as you have stated in your questions, we have introduced a lot of new titles in 2023, and we are working on several titles to be introduced in 2024. When it comes to years after that, I think the number of new titles will be somewhat limited, and our basic approach is to go for multi-platform, meaning console, PC and mobile. 네, 도규석 본부장님, 한 번 질문에 대한 답변 부탁드립니다. Yes, this is CEO Cho. I will take the third question. 먼저, 그 주요 투자 자산에 대한 유동화와 관련해서는 당사가 지금 현재, 재무 차입금하고 연관되어져서 판단을 좀 해 주시면 될 것 같습니다. Yes. Our, our stakeholding or equity investment in other countries, well, when it comes to divestment assets, well, you could link it to our liability or borrowing level. 지난번에, 지난 분기 때까지 저희의 차입금은 외화 차입금이었던 거고, 그 외화 차입금의 만기가 올해 October 만기였는데, 그 부분을 올해 June에 원화 대출 차입금으로 차환을 하였습니다. Yes, well, when we met you in the first quarter, we did talk about our borrowings. The borrowings were foreign currency denominated and were slated for redemption or servicing at October this year. However, we were able to refinance using 1 borrowing in June. 이 부분이 의미하는 바는, 외화 차입금이 없어지고 원화 차입금으로 차환됨으로 인해서 향후에 환율 리스크에 대한 헷지가 발생되어진 걸로 볼 수 있고, 또 하나의 관점은 올해 유월에 차환을 했기 때문에 단기 차입금으로서 내년 유월에 일차 만기가 도래할 예정입니다. Yes, this means that, that our foreign currency denominated borrowings have been replaced and refinanced with foreign borrowings, which eliminates the currency risk, a foreign currency exchange risk. We are enjoying some of the hedging effect. Well, the refinancing was done in June, which means we will be seeing a maturity in June. 따라서 올 초에 저희가 차입금에 대한 상환 관련돼서, 어, 지속적으로, 어, 재무 유동화를 통해서 상환할 수 있는 계획을 고민하고 있음을 말씀을 드렸었습니다. At the beginning of this year, we did communicate with the market on securitizing our assets for redemption purposes. 지금 당장 어느 시기에, 어떤 방법으로 할 건지에 대한 구체적인 내용까지 다 말씀드릴 수는 없지만, 한 가지 확실한 거는 이번 차환이 되어진 차입금 만기일인 내년 유월 이전까지 유의미한 상환을 해 나갈 계획을 하고 있기에, 그 부분을 감안해서 판단해 주시면 될 것 같습니다. At this given point in time, I cannot tell you how or when the servicing will be done. As you would have noted, we will be having borrowing maturing by June next year, so we would have to make preparations for redemption of that borrowing. 다시 말씀드리면, 지금 현재 있는 차입금 수준을 계속해서 장기간 유지할 계획은 아닌 것이며, 단기간 내에 충분한 상환을 통해서 유의미하게 정리를 해 나갈 계획임을 다시 한번 말씀드립니다. Having said that, we are not going to maintain the borrowing level of today. We will be in the near run, looking at various methods to servicing down our borrowing level. 다음 질문 받겠습니다. 현재 질문을 요청하신 분은 없습니다. 질문을 하실 분은 전화기 버튼의 별표와 1번을 누르시기 바랍니다. Currently, there are no participants with questions. Please press star 1, star and 1 to give your question. 이것으로 Netmarble 2023 2Q 실적 발표를 마치겠습니다. 추가 질문 있으신 분들은 당사 IR team으로 연락 주시기 바랍니다. 참석해 주신 여러분께 진심으로 감사드립니다. This concludes Q2 2023 earnings release session by Netmarble. I thank you for your participation, and should you have any follow-up questions, please don't hesitate in contacting our IR team. Thank you!