Date: Monday, May 11, 2026
Agenda: Devsisters Q1 2026 and Annual Performance, Future Strategy

■ Summary of Devsisters Q1 2026 Performance and Status

▣ Q1 2026 Performance Summary

- Q1 2026 Revenue: ₩58.5 Billion (-34.4% YoY, -2% QoQ)

ㄴStagnant top-line growth due to lower-than-expected performance of the live game's 5th-anniversary update and lackluster results from new titles

- Q1 2026 Operating Loss: ₩17.4 Billion (Turned to loss YoY, loss continued QoQ)

ㄴIncreased operating loss driven by declining revenue and higher overall investment costs

- Q1 2026 Net Loss: ₩15.1 Billion (Loss continued YoY, loss continued QoQ)

▣ Q1 2026 Cost Summary

- Q1 2026 Operating Expenses: ₩75.8 Billion (-4.8% YoY, +5.2% QoQ)

- Labor Costs: ₩18.5 Billion (+7.2% YoY, -15.1% QoQ)

- Commission Fees: ₩21.7 Billion (-29.7% YoY, -3.7% QoQ)

- Advertising Expenses: ₩20.8 Billion (-3.6% YoY, +25.2% QoQ)

▣ Business Plan

- New Title Pipeline

ㄴ CookieRun: Crumble, Roblox CookieRun Card Game, Project AR, Project Mish, CookieRun: New World

- CookieRun: Kingdom Q2 2026 Status and Plans

ㄴ K-Pop Demon Hunters collaboration and addition of special episodes

ㄴ Beginning of the narrative for the new Act 2 story

- CookieRun: OvenBreak Q2 2026 Status and Plans

ㄴ Enhancing user immersion by linking with the core story of CookieRun: Kingdom

ㄴ Targeting new and returning users with the Season 11 update and new Legendary Cookies

- CookieRun: Tower of Adventures Q2 2026 Status and Plans

ㄴ Launch of Co-op Season 3 and 2nd-anniversary update

ㄴAddition of new regular content and update to the Cookie Affection system

- CookieRun: OvenSmash Q2 2026 Status and Plans

ㄴ Launch via VNGGames (Vietnam, Thailand, Indonesia, Malaysia, Philippines, Singapore, Taiwan, Hong Kong, Macau)

ㄴ Hosting a creator survival event

ㄴ Addition of new cookies, modes, competitive and ranking systems, and clan/clan war systems

■ Q&A

What is the reason for the change in CookieRun: Kingdom's revenue this quarter compared to the same period last year.

= As the 5th-anniversary update concluded Act 1, we focused on maintaining a deep narrative structure over three months and long-term content pacing rather than maximizing short-term revenue. We have confirmed a foundation for long-term success, with user immersion in the upcoming Act 2 story expanding steadily. We expect to establish a stable revenue structure where contributions, previously concentrated at specific milestones like anniversaries, are evenly distributed and maintained throughout the year. To sustain this, we plan to strengthen narrative-driven content during Act 2 while balancing service stability and annual profitability.

How is the improvement work for CookieRun: OvenSmash progressing.

= Since launch, we have been continuously performing optimization and stability patches, alongside content updates including new modes, maps, cookies, and costumes. We have confirmed the potential for metric improvement through content-focused updates and will determine future operational direction after analyzing improvement plans, projections, and profitability.

What is the status of the VNGGames publishing region for CookieRun: OvenSmash?

= It is currently in the soft-launch phase. We are seeing a stabilization trend after quickly addressing some initial stability issues. We have confirmed positive user feedback regarding the overall gameplay experience, and anticipation is building in local markets. We are operating a close monitoring system for relevant metrics and user trends, which will guide our efforts to refine the game for a successful official launch.

What is the local reaction to the CookieRun Card Game in the North American market, the status of distribution channels, and the market sentiment following the recent global tournament.

= Participation in the GAMA Expo and various seminars significantly boosted our brand awareness and product understanding in North America. As a result, we have secured over 100 new retailers and are steadily expanding our infrastructure, with more stores carrying our products through key distribution partners. We intend to continue participating in major North American conventions to maximize brand exposure and expand our reach beyond existing TCG players to the broader IP fan base.

The 25-26 CookieRun TCG World Championship held last April was our first major official event with global user participation. It served as a turning point for consolidating the global player community and establishing a competitive environment, which we expect will drive future brand trust and strengthen our fandom.

What is the background behind the continuous increase in merchandise revenue, and what are your future plans?

= This is due to increased visibility and sales of character merchandise at major Q1 offline events, such as the CookieRun: Kingdom 5th Anniversary Fan Festival and Anime Impulse in the U.S. On-site success directly translates to follow-up purchases on the online CookieRun Store, securing a continuous global revenue stream that goes beyond one-off events.

We are building global distribution channels by expanding international shipping regions for the CookieRun Store and strengthening direct local shipping via our official Amazon store. Starting with our participation in the Licensing Expo, we plan to secure strategic partnerships centered in the U.S. and actively expand the scope of our global licensing business.

What are your specific cost management strategies to improve profitability and your roadmap for turning a profit.

= We will carry out intensive management reform through the fulfillment of executive responsibility and the establishment of a cost management task force. We also intend to adjust our investment strategy by reviewing our entire portfolio and focusing on core areas. We will transition into a highly efficient, lean organization centered on key talent through the active adoption of new technologies, while streamlining the organization through reduced hiring, internal transfers, and a company-wide voluntary retirement program.