NEXON : Notice of Financial Results of Unlisted Other Affiliated Company

	April 25, 2024
Name of Company:	NEXON Co., Ltd.
Representative:	Junghun Lee, Representative Director, Chief
	Executive Officer and President
	(Stock Code: 3659, TSE Prime Market)
Contact:	Shiro Uemura, Representative Director and
	Chief Financial Officer
Telephone:	03-6629-5318

Notice of Financial Results of Unlisted Other Affiliated Company

NEXON Co., Ltd. ("NEXON") announced the financial results of its "other affiliated company," NXC Corporation, for the year ended December 31, 2023 as follows:

1. Summary of unlisted parent company, etc.

(1) Name	NXC Corporation
(2)	Location	17, Eunsu-gil,Jeju-si,Jeju-do, KOREA
(3)	Title/name of representative	Jaekyo Lee, President and Representative
(4)	Business description	Director
Management of subsidiaries and the business
(5)	Capital	of leasing and management of real estates
1,454 million Korean Won

2. Shareholding by shareholder category, major shareholders and directors of the parent company, etc.

1. Shareholding by shareholder category

As of December 31, 2023

				Stock information				Sharehold
Category	Government		Financial		Foreign corporation, etc.	Individuals		ing of
and local	Financial	instruments	Other	Total	fractional
	public	institution	business	corporation	Non-	Individuals	and Other	units
	authorities		operator		individuals
Number
of	1			1			3	5
sharehold
ers
Number
of shares	851,968			50,000			2,006,532	2,908,500
owned
(share)
Sharehold	29.29			1.72			68.99	100.00
ing ratio
(%)

1

(2) Details about major shareholders

As of December 31, 2023

		Number of shares	Shares held as
Name	Address	a percentage of
owned (shares)	total issued
			shares (%)
Jung Hyun Yoo	Jeju-do, KOREA	988,890	34.00
Jungmin Kim	Jeju-do, KOREA	508,821	17.49
Jungyun Kim	Jeju-do, KOREA	508,821	17.49
Ministry of Economy	Seoul, KOREA	851,968	29.29
and Finance(MOEF)
Wisekids LLC.	Seoul, KOREA	50,000	1.72
Total		2,908,500	100.00

1. Details about Directors (As of the end of April, 2024)
   Male 5, Female 2 (Female comprises 28.6% of Directors and Statutory Auditors)

						Number
Title	Name	Date of	Career summary	Term of	of shares
birth	office	owned
						(shares)
President	Jaekyo Lee	December	August 1998	Joined Nexon	From
and		13, 1971		Corporation (current	March
Represent				NXC Corporation)	31, 2023
ative					to
Director			February 2018	Appointed as Director	March
				of Nexon Foundation	30, 2026
				(current post)
			July 2021	Appointed as
				Representative
				Director of NXC
				Corporation (current
				post)
			March 2023	Appointed as Director
				of NEXON Korea
				Corporation (current
				post)
Director	JungHyun	April 16,	September 1995	Joined Nexon	From	988,890
	Yoo	1969		Corporation (current	March
				NXC Corporation)	31, 2023
					to
			April 2002	Appointed as	March
				Representative	31, 2026
				Director of Nexon
				Networks Corporation
			July 2003	Appointed as Director
				of Nexon Corporation
				(current NXC
				Corporation)
			July 2004	Appointed as Director
				of NXProperties
				Corporation (current
				NXProperties, LLC.
			March 2006	Appointed as an audit
				committee member of
				Nexon Holdings
				Corporation (current
				NXC Corporation)
			July 2008	Appointed as
				Representative
			2

				Director of Galerie313
				Corporation
			October 2010	Appointed as Statutory
				Auditor of NXC
				Corporation
			March 2023	Appointed as Director
				of NXC Corporation
				(current post)
Director	Youngmin	August 22,	March 2013	Joined NXC	From
	Kwon	1981		Corporation	March
					31, 2023
			February 2018	Appointed as Statutory	to
				Auditor of korbit, Inc.	March
				(current post)	30, 2026
			November 2019	Appointed as
				Representative
				Director of VIP Private
				Placement Stock Fund
				1 (current post)
			December 2019	Appointed as Statutory
				Auditor of Gaseung
				Development Company
			December 2019	Appointed as Chief
				Executive Officer of
				NXProperties, LLC.
				(current post)
			December 2019	Appointed as Director
				of NXC Corporation
				(current post)
			October 2021	Appointed as Chief
				Executive Officer of
				Wisekids LLC.
			April 2022	Appointed as
				Representative
				Director of Arques
Director	Hongwoo	February	February 2018	Appointed as Director	From	-
(Audit	Lee	03, 1977		of Nexon Foundation	Decemb
Committe					er 04,
e member)			August 2019	Appointed as Director	2023
				of NEXON Korea	to
				Corporation	Decemb
					er 04,
			September 2019	Joined NXC	2026
				Corporation
			September 2019	Appointed as Director
				of NEXON Co., Ltd.
			March 2020	Appointed as Director
				(Audit and Supervisory
				Committee member) of
				NEXON Co., Ltd.
			March 2023	Appointed as Statutory
				Auditor of NXC
				Corporation
			December 2023	Appointed as Director
				(Audit Committee
				member) of NXC
				Corporation (current
			3

				post)
Other	Hoisuk kim	January	December 2019	Appointed as Director	From
Non-		06, 1976		of Korbit Inc.	March
executive					31, 2022
director			March 2020	Appointed as Statutory	to
				Auditor of Kcust Inc.	March
			December 2020	Appointed as Non-	31, 2025
				executive director of
				BLOCKCHAIN
				ENTERTAINMENT
				LAB Co., Ltd.
			September 2021	Appointed as Director
				of CODE Co., Ltd.
			March 2022	Appointed as Non-
				executive director of
				NXC Corporation
				(current post)
			January 2024	Appointed as Other
				Non-executive director
				of fitfuns Inc.
				(current post)
			March 2024	Appointed as Other
				Non-executive director
				of Korbit Inc.
				(current post)
			April 2024	Appointed as Chief
				Executive Officer of
				Wisekids LLC.
				(current post)
Outside	Dohwa Lee	November	April 2006	Joined NEXON Korea	From
director		16, 1973		Corporation	Decemb
(Audit					er 04,
Committe			September 2009	Appointed as	2023
e member)				Accounting and	to
				Finance Division	Decemb
				Manager of NEXON	er 04,
				Co., Ltd.	2026
			January 2012	Appointed as director
				of NEXON Networks
				Corporation
			October 2012	Appointed as director
				of NXC Corporation
			April 2015	Appointed as
				Representative
				Director of VIP Private
				Placement Stock Fund
				1
			January 2016	Appointed as statutory
				auditor of Gaseung
				Development Co., Ltd.
			March 2016	Appointed as
				Representative
				Director of
				NXProperties, LLC.
			March 2016	Appointed as Director
				of NEXON Co., Ltd.
			4

			January 2018	Appointed as Other
				Non-executive director
				of of Korbit, Inc.
			March 2018	Appointed as Director
				(Audit and Supervisory
				Committee Member) of
				NEXON Co., Ltd.
			March 2021	Appointed as Statutory
				Auditor of NEXON
				Korea Corporation
			December 2023	Appointed as Non-
				executive director
				(audit committee
				member and a
				remuneration
				committee member) of
				NXC Corporation
				(current post)
Outside	Sejoong Lee	December	September 2018	Appointed as an	From	-
Director		18, 1976		associate professor of	Decemb
(Audit				business	er 04,
Committe				administration at	2023
e member)				University of Seoul	to
				(current post)	Decemb
					er 04,
			December 2023	Appointed as Non-	2026
				executive director
				(audit committee
				member and a
				remuneration
				committee member) of
				NXC Corporation
				(current post)
			Total			988,890

5

3. Financial Statements

(1) Consolidated Financial statement

The consolidated financial statement of NXC Corporation was prepared in accordance with IFRS and NEXON Co., Ltd. is treated as "subsidiary" of NXC Corporation under IFRS.

NXC Corporation

Statements of Financial Position

December 31, 2023 and 2022

(in Korean won)		2023			2022
Assets
Current assets
Cash and cash equivalents	ƒ	3,467,364,334,687	ƒ	5,263,049,833,086
Financial assets at fair value through profit or loss		303,874,116,241			212,772,141,062
Trade receivables		416,207,491,393			357,606,656,079
Other financial assets		3,479,159,393,549			1,765,211,666,020
Other assets		134,314,327,019			203,063,022,494
Inventories		151,385,185,384			185,232,833,320
Current tax assets		10,939,926,239			10,534,399,794
Non-current assets to be sold		7,963,244,774,512			7,997,470,551,855
	-			-
Non-current assets
Financial assets at fair value through profit or loss		984,690,129,520			891,540,995,787
Financial assets at fair value through other comprehensive income		2,060,826,402,182			2,057,532,024,076
Other financial assets		161,294,176,734			141,261,479,628
Investment in associates		735,695,212,206			873,240,052,539
Property and equipment		568,514,264,644			534,782,610,408
Intangible assets		2,076,915,024,055			2,042,393,543,462
Investment property		19,432,363,109			19,816,479,587
Other assets		8,020,712,346			18,572,706,147
Deferred tax assets		554,271,520,880			592,239,944,464
Total assets		7,169,659,805,676			7,171,379,836,098
ƒ	15,132,904,580,188	ƒ	15,168,850,387,953
Liabilities
Current liabilities
Trade payables		115,169,295,924			140,244,512,818
Borrowings		597,681,854,501			777,206,903,971
Other financial liabilities		1,186,363,410,088			1,242,384,729,315
Financial liabilities at fair value through profit or loss		5,729,114,385			164,856,219
Lease liabilities		56,843,463,243			43,647,129,250
Other liabilities		304,609,457,110			286,239,997,616
Provisions		3,589,553,710			2,490,647,436
Current tax liabilities		193,438,972,963			285,848,041,639
Non-current liabilities		2,463,425,121,924			2,778,226,818,264
Borrowings		941,454,615,416			834,254,863,185
Other financial liabilities		18,765,176,615			14,541,325,668
Financial liabilities at fair value through profit or loss		179,730,733,262			222,316,400,603
Lease liabilities		243,199,902,287			201,808,067,979
Other liabilities		267,191,282,780			230,373,674,142
Provisions		18,357,014,539			7,629,076,815
Net defined benefit liabilities		6,620,397,816			6,210,614,842
Deferred tax liabilities		749,021,193,198			773,790,454,332
Total liabilities		2,424,340,315,913			2,290,924,477,566
	4,887,765,437,837			5,069,151,295,830
Equity attributable to owners of the Parent
Capital stock		1,454,250,000			1,454,250,000
Paid-in capital in excess of par value		5,257,138,814			5,257,138,814
Other components of equity		687,937,592,721			737,208,134,946
Retained earnings		5,117,051,682,205			4,809,120,110,993
Non-controlling interest		4,433,438,478,611			4,546,659,457,370
Total equity		10,245,139,142,351			10,099,699,092,123
Total liabilities and equity	ƒ	15,132,904,580,188	ƒ	15,168,850,387,953

㻢

NXC Corporation

Statements of Comprehensive Income NXC Corporation

(in Korean won)

Revenue of operating

Cost of operating

Cost of service

Cost of finished goods sold

Gross profit

Selling and administrative expenses

Operating profit

Other income Other expenses Financial income Financial expenses

Share of net profit of associates using equity method

Profit before income tax

Income tax expense

Profit for the period

Profit is attributable to:

Owners of the Parent Company

Non-controlling interests

Other comprehensive income (loss)

Items that will not be subsequently reclassified to profit or loss Remeasurements of net defined benefit liabilities Changes in fair value of Financial assets at FVOCI

Other comprehensive income (loss)

Items that may be subsequently reclassified to profit or loss Share of other comprehensive income of associates Exchange differences on translating foreign operations

Total comprehensive income (loss) for the year

2023

• 4,847,167,552,778
  1,310,418,184,244
  477,295,543,605
  1,787,713,727,849

3,059,453,824,929

1,829,497,408,619

1,229,956,416,310

469,385,135,495

664,322,348,765

392,125,083,332

105,357,007,545

(58,101,548,725)

1,263,685,730,102

533,445,852,242

• 730,239,877,860
  392,044,009,006
  338,195,868,854

(379,500,535)

(56,617,898,201)

34,331,187,129

20,731,311,539

(1,934,900,068)

• 728,304,977,792

2022

• 4,417,351,053,961
  1,083,198,161,792
  494,676,955,584
  1,577,875,117,376

2,839,475,936,585

1,862,441,748,219

977,034,188,366

329,022,997,634

565,642,114,029

573,877,573,876

60,707,442,087

(96,258,510,210)

1,157,326,693,550

389,334,265,393

• 767,992,428,157
  280,722,556,086
  487,269,872,071

485,663,799

(325,920,934,912)

16,808,553,251

(83,529,802,772)

(392,156,520,634)

ƒ	375,835,907,523

Total comprehensive income for the period is attributable to:
Owners of the Parent Company	405,909,438,599
Non-controlling interests	322,395,539,193

144,821,209,031

231,014,698,492

㻣

NXC Corporation

Statements of Changes in Equity

'HFHPEHUDQG'HFHPEHU

					Attributable to equity holders of the Parent Company
								Other components									Non-controlling
(in Korean won)		Capital stock		Capital surplus				of equity			Retained earnings			Total			Interest				Total Equity
Balances as of January 1, 2022	ƒ	1,454,250,000	ƒ	5,257,138,814	ƒ 1,190,367,180,295	ƒ	4,560,920,147,770	ƒ	5,757,998,716,879	ƒ	4,924,056,581,068	ƒ		10,682,055,297,947
Total comprehensive income:
Profit for the year		-			-				-			280,722,556,086			280,722,556,086			487,269,872,071				767,992,428,157
Gain / Loss on valuation of financial asset at fair value		-			-				(132,217,824,664)			(21,349,471,938)			(153,567,296,602)			(172,353,638,310)				(325,920,934,912)
through other comprehensive income
Share of other comprehensive income of associates		-			-				16,808,553,251			-			16,808,553,251			-				16,808,553,251
Gain / Loss on foreign currency translation		-			-				396,517,221			-			396,517,221			(83,926,319,993)				(83,529,802,772)
Remeasurements of net defined benefit liabilities		-			-				-			460,879,075			460,879,075			24,784,724				485,663,799
Transactions with equity holders of the Company:																						-
Dividends paid		-			-				-			(11,634,000,000)			(11,634,000,000)			(45,627,239,460)				(57,261,239,460)
Changes in shares of subsidiaries		-			-				(367,329,235,794)			-			(367,329,235,794)			(618,458,536,797)				(985,787,772,591)
Obligation to purchase subsidiaries non-controlling		-			-				29,182,944,637			-			29,182,944,637			-				29,182,944,637
interest
Share-based payment associated with share options of		-			-				-			-			-			66,583,378,922				66,583,378,922
subsidiaries
Changes in scope of consolidation		-			-				-			-			-			(10,909,424,855)				(10,909,424,855)
Balances as of December 31, 2022	ƒ	1,454,250,000		ƒ	5,257,138,814		ƒ	737,208,134,946		ƒ	4,809,120,110,993		ƒ	5,553,039,634,753		ƒ	4,546,659,457,370		ƒ		10,099,699,092,123
Balances as of January 1, 2023	ƒ	1,454,250,000	ƒ	5,257,138,814	ƒ	737,208,134,946	ƒ	4,809,120,110,993	ƒ	5,553,039,634,753	ƒ	4,546,659,457,370	ƒ		10,099,699,092,123
Total comprehensive income:
Profit for the year		-			-				-			392,044,009,006			392,044,009,006			338,195,868,854				730,239,877,860
Gain / Loss on valuation of financial asset at fair value		-			-				55,319,352,631			(72,230,653,674)			(16,911,301,043)			(39,706,597,158)				(56,617,898,201)
through other comprehensive income
Share of other comprehensive income of associates		-			-				34,331,187,129			-			34,331,187,129			-				34,331,187,129
Gain / Loss on foreign currency translation		-			-				(3,306,672,373)			-			(3,306,672,373)			24,037,983,912				20,731,311,539
Remeasurements of net defined benefit liabilities		-			-				-			(247,784,120)			(247,784,120)			(131,716,415)				(379,500,535)
Transactions with equity holders of the Company:																						-
Dividends paid		-			-				-			(11,634,000,000)			(11,634,000,000)			(44,159,330,674)				(55,793,330,674)
Changes in shares of subsidiaries		-			-				(135,614,409,612)			-			(135,614,409,612)			(352,977,160,649)				(488,591,570,261)
Obligation to purchase subsidiaries non-controlling		-			-							-			-			-				-
interest
Share-based payment associated with share options of		-			-				-			-			-			(15,770,167,736)				(15,770,167,736)
subsidiaries
Changes in scope of consolidation		-			-							-			-			(22,709,858,893)				(22,709,858,893)
Balances as of December 31, 2023	ƒ	1,454,250,000		ƒ	5,257,138,814		ƒ	687,937,592,721		ƒ	5,117,051,682,205		ƒ	5,811,700,663,740	ƒ	4,433,438,478,611	ƒ	10,245,139,142,351

㻌㻤

NXC Corporation

Statements of Cash Flows

'HFHPEHUDQG'HFHPEHU

(in Korean won)		2023			2022
Cash flows from operating activities		1,335,880,115,591			226,681,288,101
Cash generated from operations	凨		凨
Dividends income		51,610,236,373			43,650,864,466
Interest received		192,969,062,847			81,036,750,112
Interest paid		(80,752,024,955)			(49,619,450,747)
Income tax paid		(586,365,211,293)			(458,744,608,124)
Net cash inflow from operating activities		913,342,178,563			(156,995,156,192)
Cash flows from investing activities
Decrease in financial deposits		3,638,721,527,522			2,410,101,842,156
Increase in financial deposits		(5,299,862,474,623)			(2,153,495,686,307)
Decrease in financial assets at fair value through profit or loss		308,272,965,946			335,805,900,879
Increase in financial assets at fair value through profit or loss		(373,838,367,670)			(291,250,421,572)
Decrease in fair value of Financial assets at FVOCI		4,392,314,449			6,392,483,460
Increase in fair value of Financial assets at FVOCI		(31,483,830,788)			(101,821,429,529)
Changes in other receivables		(70,307,989,575)			(81,227,811,880)
Disposal of property and equipment		630,254,101			2,981,870,021
Acquisition of property and equipment		(44,650,319,991)			(39,886,008,515)
Disposal of intangible assets		29,649,599,761			112,383,548,183
Acquisition of intangible assets		(55,306,039,867)			(135,069,339,133)
Disposal of investment property		-			275,889,837
Acquisition of investment property		(160,000,000)			-
Disposal of investment in associates		14,746,226,830			94,422,119,679
Acquisition of investment in associates		(314,313,442,776)			(327,159,650,570)
Contingent consideration		(1,992,555,667)			(19,792,581,096)
Business combination		-			(66,095,540,650)
Net cash inflow(outflow) from investing activities		(2,195,502,132,348)			(253,434,815,037)
Cash flows from financing activities
Increase in short-term borrowings		61,787,552,000			65,500,071,352
Decrease in short-term borrowings		(34,968,011,813)			(9,246,717,036)
Decrease in current portion of long-term borrowings and bonds		(262,810,747,882)			(33,393,177,970)
Increase in long-term borrowings		159,375,271,117			167,151,077,953
Decrease in financial lease liabilities		(38,633,051,832)			(38,851,921,754)
Dividends paid		(55,793,330,674)			(57,261,239,460)
Transactions with equity holders of the Company		(295,331,781,193)			(996,881,289,369)
Net cash provided by (used in) financing activities		(466,374,100,277)			(902,983,196,284)
Net increase (decrease) in cash and cash equivalents		(1,748,534,054,062)			(1,313,413,167,513)
Cash and cash equivalents at the beginning of year		5,263,049,833,086			6,397,398,247,937
Effects of exchange rate changes on cash and cash equivalents		(47,151,444,337)			179,064,752,662
Cash and cash equivalents at the end of year		3,467,364,334,687			5,263,049,833,086

㻥

(2) Financial statement

1;&&RUSRUDWLRQ

6WDWHPHQWVRI)LQDQFLDO3RVLWLRQ

'HFHPEHUDQG'HFHPEHU

ŋƌƑŃŮƒƕƈƄƑŃƚƒƑŌ
$VVHWV
&XUUHQWDVVHWV
&DVKDQGFDVKHTXLYDOHQWV	凨		凨
)LQDQFLDODVVHWVDWIDLUYDOXHWKURXJKSURILWRUORVV
7UDGHUHFHLYDEOHV
2WKHUILQDQFLDODVVHWV
2WKHUDVVHWV
1RQFXUUHQWDVVHWV
)LQDQFLDODVVHWVDWIDLUYDOXHWKURXJKSURILWRUORVV
)LQDQFLDODVVHWVDWIDLUYDOXHWKURXJKRWKHUFRPSUHKHQVLYHLQFRPH
2WKHUILQDQFLDODVVHWV
,QYHVWPHQWLQDVVRFLDWHV
,QYHVWPHQWLQ6XEVLGLDULHV
3URSHUWDQGHTXLSPHQW
5LJKWRIXVHDVVHWV
,QWDQJLEOHDVVHWV
,QYHVWPHQWSURSHUW
'HIHUUHGWD[DVVHWV
7RWDODVVHWV
凨		凨
/LDELOLWLHV
&XUUHQWOLDELOLWLHV
6KRUWWHUPERUURZLQJV	凨		凨
2WKHUILQDQFLDOOLDELOLWLHV
2WKHUOLDELOLWLHV
/HDVHOLDELOLWLHV
&XUUHQWWD[OLDELOLWLHV
1RQFXUUHQWOLDELOLWLHV
2WKHUILQDQFLDOOLDELOLWLHV
/HDVHOLDELOLWLHV
'HIHUUHGWD[OLDELOLWLHV
7RWDOOLDELOLWLHV
(TXLWDWWULEXWDEOHWRRZQHUVRIWKH3DUHQW
&DSLWDOVWRFN
3DLGLQFDSLWDOLQH[FHVVRISDUYDOXH
2WKHUFRPSRQHQWVRIHTXLW
5HWDLQHGHDUQLQJV
7RWDOHTXLW
7RWDOOLDELOLWLHVDQGHTXLW	凨		凨

㻝㻜