KRAFTON

FY2023~FY2025 Shareholder Return Policy

1. Scale and Source of Shareholder Returns

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    Up to 40% of Free Cash Flow (FCF) from the previous year, excluding investment costs.

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      Free Cash Flow (FCF):
      Calculated based on the consolidated statement of cash flows by adjusting Operating Cash Flow for operating-related expenditures, such as lease liability payments, and Capital Expenditures (CAPEX).
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      Investment Costs:
      Refers to cash outflows related to non-CAPEX investments, primarily for M&A activities such as acquisitions and investments.
      Investments financed using IPO proceeds raised during the company’s listing are excluded from the investment costs.

2. Execution Method

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    Acquisition and Retirement of Treasury Shares:

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      Shareholder Return Period: 3 years (Fiscal Years 2023~2025)
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      100% of the treasury shares acquired in Fiscal Year 2023 will be retired.
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      A minimum of 60% of the treasury shares acquired in Fiscal Years 2024 and 2025 will be retired.

KRAFTON is dedicated to driving sustainable performance through transparent and responsible shareholder returns, while establishing a corporate foundation built on trust and accountability.

Shareholder Return Execution Status

1) Net income attributable to shareholders of parent company on a consolidated basis

2) Cumulative Net Income as of Q3