Date: Tuesday, August 11, 2026
Agenda: SHIFT UP Q2 2026 Earnings and Future Strategy

■ Summary of SHIFT UP Q2 2026 Earnings and Status

▣ Q2 2026 Earnings Summary

- Q2 2026 Revenue: ₩55.7 billion (-50.4% YoY, +17.8% QoQ)

ㄴ Goddess of Victory: Nikke 3.5th Anniversary Event Successfully Concluded; Robust Revenue Growth in 4th Year of Service

ㄴ Stellar Blade Maintains Sales Momentum Through Steady Seller Performance and Reveal of Next Title

- Operating Profit: ₩28.1 billion (-58.8% YoY, +30.7% QoQ)

- Quarterly Net Profit: ₩41.7 billion (-18.7% YoY, +10.4% QoQ)

ㄴ Non-operating income/loss remained at the previous quarter's level due to foreign exchange gains and treasury management returns

▣ Q2 2026 Expense Summary

- Q2 2026 Operating Expenses: ₩27.6 billion (-37.5% YoY, +7% QoQ)

ㄴ Operating expenses reflect the consolidation of Unbound as a subsidiary

- Labor Costs: ₩15.6 billion (-5.3% YoY, -4.1% QoQ)

ㄴ Effect of one-time incentives paid in the previous quarter has been removed

- Variable Costs: ₩6 billion (-76.3% YoY, +22.2% QoQ)

- Fixed Costs: ₩6 billion (+159.4% YoY, +29.6% QoQ)

▣ Business Status

- Goddess of Victory: Nikke

ㄴ IP Brand Power Reaffirmed Through Global 3.5th Anniversary Event Success

ㄴ 3.5th Anniversary Event Concluded; Reached #1 in Top Grossing Rankings on both Apple App Store & Google Play in Korea and Japan

ㄴ Stable Live Service Operations Ahead of Major Second-Half Events

- Stellar Blade: Blood Rain

ㄴ Confirmed High Global User Interest in the Franchise IP

ㄴ Next Title Unveiled for the First Time via SGF

- Project Spirit

ㄴ Targeting Information Disclosure Within the Year

■ Q&A

What was the performance of Goddess of Victory: Nikke in Q2 2026?

= Goddess of Victory: Nikke once again proved the strength of its IP through the 3.5th anniversary update launched in April. High-quality content—including the 'STAR ANIS' event story summarizing the narrative of the popular character 'Anis,' new characters, 3D visual performances, special animations, and full-voice dubbing—drew positive responses from global users, leading to #1 rankings in top-grossing charts in both Korea and Japan immediately after the update. As a result, Nikke's global revenue for the quarter grew both year-on-year and quarter-on-quarter, maintaining a solid performance trend in its fourth year of service.

Furthermore, in July, we successfully concluded the two-day 'Full Burst Live' band concert, which featured rock-sound reinterpretations of 25 representative OST tracks. Through this performance, where the stage and audience breathed as one, we confirmed a deep bond with our users and the strength of our fandom. Such IP experiences, both inside and outside the game, are further solidifying the foundation for the long-term success of Goddess of Victory: Nikke.

What is the outlook for Goddess of Victory: Nikke's future performance?

= Following the 3.5th anniversary event, we have seen enthusiastic responses from global users, continuing into the recent summer season event. In particular, Goddess of Victory: Nikke demonstrates a live service structure that rebounds to the top of the revenue charts in key regions like Korea and Japan during every major update, such as the 1.5th and 2nd anniversaries. The success of this 3.5th anniversary event is not a one-off achievement; it signifies that a revenue structure linked to major updates has become a solid, inherent feature of Nikke's live service. We are preparing the 4th-anniversary update scheduled for the second half of the year with even greater content volume and polish, and we expect to maintain robust revenue performance based on the fandom's strong response to our story and character content.

Additionally, we are continuously expanding IP touchpoints outside the game, including orchestras, live band concerts, pop-up stores, and an expanded range of merchandise. These offline experiences strengthen our bond with the fandom and create a virtuous cycle that leads to deeper immersion in in-game content. Based on the IP brand power we have built, we will do our best to repay the love our users have shown us.

What are the performance expectations for Stellar Blade in the second half of 2026?

= Since its release, Stellar Blade has maintained consistent sales, solidifying its position as a steady-seller IP in the PC/console market. This quarter, we continued to see new user acquisition driven by seasonal promotions and the reveal of the next title, maintaining a stable sales flow that met our expectations. With events such as the expansion to the new Nintendo Switch 2 platform scheduled for the second half of the year, we expect to maintain the current sales momentum.

What is the development status and release timing for the next Stellar Blade title?

= At SGF 2026 in June, we officially unveiled the title 'Stellar Blade: Blood Rain' along with a 3-minute and 30-second in-game trailer. Immediately after its release, the trailer accumulated 1.61 million views on the official IGN channel (as of late July 2026), marking one of the highest view counts among titles revealed at SGF 2026. The positive reception from domestic and international communities and global gaming media channels has once again proven the strength of our fandom as a franchise IP.

Development of Stellar Blade: Blood Rain is proceeding smoothly in line with our target quality standards. Under the principle of securing sufficient development time to deliver the highest level of polish, we plan to release information about the game sequentially. We will do our utmost to meet the heightened expectations of our users.

What are the differentiation points and performance expectations for Stellar Blade: Blood Rain?

= Stellar Blade: Blood Rain further enhances the combat fun that was well-received in the previous title while strengthening the world-building and story. Notably, starting with this title, SHIFT UP will transition to a self-publishing system, allowing us to proactively deploy marketing strategies that fully capture the unique color of the IP. Based on the proven fandom built by the previous title, its position as a steady-seller IP, and our own service capabilities, we aim to reach global users more closely and achieve results that exceed those of the predecessor.

What is the development status and release timing for Project Spirit

= Project Spirit, the next flagship title being prepared by SHIFT UP, is our core pipeline and is progressing smoothly according to an efficient and systematic process, with a target for disclosure in the second half of 2026. We ask for the continued interest and support of global users for our new IP, Project Spirit.

Amidst intensifying competition in subculture games, what is the competitiveness of Project Spirit?

= Project Spirit is a AAA title based on an 'Eastern Fantasy' worldview, aiming for global cross-platform live service. We are focusing on concentrating our accumulated development capabilities and live service experience to present a highly polished game.

There is news of hiring for a new project; what kind of game is it?

= In addition to enhancing existing IPs, we are developing additional new IPs that can leverage SHIFT UP's strengths beyond the one already announced. We will continue to invest in development and pipeline diversification. This hiring is also intended to build our next growth lineup, and we will communicate further details later, considering the development stage.

What is the outlook for the increasing trend in operating expenses, such as labor costs?

= We are gradually recruiting necessary personnel to develop new IPs and internalize our PC/console publishing capabilities. Coupled with the impact of consolidating Unbound, we expect consolidated operating expenses, including labor costs, to show a gradual upward trend. As this is a preemptive investment for future growth, we will manage the balance with profitability under a disciplined cost-execution policy.