Explanation on FY2018 Q3

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4 I. Financial Statement Topics on ( ) Business winwalk released in Europe (UK & France) "Flyff Legacy re-launched in Korea "Flyff Legacy released in Europe (English, German & French) Service of Rappelz Online Japanese version will be shut down (2018/2/28) Pre-registration for Flyff Legacy has started in China (2018/2/1) Copyright Gala Inc., All rights reserved 4

5 I. Financial Statement Copyright Gala Inc., All rights reserved 5 P/L (Summary) (Unit: Thousand JPY) FY2018 (2017/10/01~2017/12/31) FY2018 vs FY /10/01~2017/12/31 vs 2017/07/01~2017/09/30 Change FY2018 vs FY /10/01~2017/12/31 vs 2016/10/01~2016/12/31 Change Sales 236, ,825 63% 229,385 3% COS 64,539 41,004 57% 96,234 33% Gross Profit 171, ,821 66% 133,150 29% SGA 232, ,246 23% 229,717 1% Operating Profit 60,768 85,425-96,566 - Ordinary Profit 54,887 83,658-81,262 - Net Income 56, ,841-82,604 - Net Income attributable to the non-controlling interests 2,086 2,200-3,755 - Net Income attributable to parent company 53,994 98,640-78,848 - Sales: Although sales of Arcane English and Japanese versions decreased, sales increased compared with the same quarter of the previous fiscal year due to an increase in sales of Flyff Legacy. "Flyff Legacy" royalty sales of Korean (*1), English, Chinese, and Thai versions published by Entermate are 7,859 thousand yen; sales of English, German, and French versions published by Gala Lab are 89,628 thousand yen; and sales of Japanese version published by Gala Japan is 11,004 thousand yen. Also, sales of "Arcane" English version in the third quarter is 17,674 thousand yen, Japanese version is 8,925 thousand yen. *1 "Flyff Legacy" Korean version has been renewed last December and published under "Flyff Remaster" name. Cost of sales: As a result of increased royalty sales, cost of sales declined compared with the same quarter last year. Includes fees for Apple and Google. SGA: Increased compared with the same quarter last due to an increase in personnel expenses.

6 I. Financial Statement Trend (Sales, Gross Profit, Operating Profit, Net Income) Unit: Thousand JPY) 300, , ,000 Sales Gross Profit Operating Profit Net Income Smartphone Apps PC Online Games Others Arcane Online (Android & ios) English and Japanese sales added 131, , , ,139 96,785 94,866 92,070 88,526 99,373 73, , , , , ,476 Increase in Flyff Legacy sales 119, , , , , , , , , , , ,246 70,270 81,478 83,102 99,924 35,825 55,595 Flyff All Stars Japanese promotion cost 141, ,657 42,905 45,754 53,994 60,768 78,848 81,149 75,077 85,425 96,566 98, , ,724 Human resource development cost for Immortal Warrior Arcane Online English and Japanese promotion & general shareholders meeting FY2016_Q1 FY2017_Q1 FY2018_Q1 Copyright Gala Inc., All rights reserved 6

I. Financial Statement FY2016_Q1 FY2017_Q1 FY2018_Q1 FY2016_Q1 FY2016_Q1 FY2017_Q1 FY2017_Q1 FY2018_Q1 FY2018_Q1 Sales by Segment (After Adjustment) Japan Mobile

and English sales added Decrease in Arcane Online sales Online game revenue recognized by the expiration of the contract period of the licensing fee 50,000 0

PC online games 150,000 100,000 Mobile PC Others 131,615 115,270 99,213 80,570 (Unit: Thousand JPY) Arcane O Arcane O 189,639 200,000 Decrease 150,000 50,000

7 I. Financial Statement FY2016_Q1 FY2017_Q1 FY2018_Q1 FY2016_Q1 FY2016_Q1 FY2017_Q1 FY2017_Q1 FY2018_Q1 FY2018_Q1 Sales by Segment (After Adjustment) Japan Mobile PC Others (Unit: Thousand JPY) 150, , , ,000 99,213 80,570 Arcane Online English, Android sales added Arcane Online (Android & ios) Japanese and English sales added Decrease in Arcane Online sales Online game revenue recognized by the expiration of the contract period of the licensing fee 50, ,255 7,734 2,546 1,838 15,178 44,180 46,882 Korea Increase in "Flyff Legacy" (English, French, German) sales Sales of Flyff Legacy Added Drop in royalties of PC online games 150, ,000 Mobile PC Others 131, ,270 99,213 80,570 (Unit: Thousand JPY) Arcane O Arcane O 189, ,000 Decrease 150,000 50, , , , ,300 84,195 87,764 97,770 93, ,644 82,487 44, , ,255 7,734 2,546 1,838 15,178 50,000 0 Copyright Gala Inc., All rights reserved 7

I. Financial Statement FY2016_Q1 FY2017_Q1 FY2018_Q1 FY2016_Q1 FY2017_Q1 FY2018_Q1 SGA-Other and HR Count (Consolidated) (Unit: Thousand JPY) FY2018 (2017/10/01~2017/12/31) FY2018

Change FY2018 vs FY2017 2017/10/01~2017/12/31 vs 2016/10/01~2016/12/31 Change The main reason for the decrease in SGA - Other compared with the same quarter of the previous fiscal

Unit: Thousand JPY) 400,000 HR SGA-Other Expense 150 (Unit:Person) Part-timers/Temp Employees Directors 300,000 93,677 100 200,000 70,054 70,504 73,458 103,776 1 100,000 242,354

8 I. Financial Statement FY2016_Q1 FY2017_Q1 FY2018_Q1 FY2016_Q1 FY2017_Q1 FY2018_Q1 SGA-Other and HR Count (Consolidated) (Unit: Thousand JPY) FY2018 (2017/10/01~2017/12/31) FY2018 vs FY /10/01~2017/12/31 HR Cost 103,776 99,423 4% 73,458 41% SGA - Other 128,974 89,822 44% 156,258 17% Total SGA 232, ,246 23% 229,717 1% vs 2017/07/01~2017/09/30 Change FY2018 vs FY /10/01~2017/12/31 vs 2016/10/01~2016/12/31 Change The main reason for the decrease in SGA - Other compared with the same quarter of the previous fiscal year was decrease in marketing. Increase in personnel expenses is primarily related to the development of the mobile MMORPG version of Immortal Warrior. Unit: Thousand JPY) 400,000 HR SGA-Other Expense 150 (Unit:Person) Part-timers/Temp Employees Directors 300,000 93, ,000 70,054 70,504 73, , , ,354 94,774 93,225 99,423 94,778 78,810 69, , ,689156,258 81,570 67,562 86,534 92,133 89, ,974 55, Copyright Gala Inc., All rights reserved 8

(Japanese) "Arcane Online" is a new heroic

It offers different character classes, Guild

of customizations, events, and so much more.

version Japanese version Share of sales by

10 Smartphone Apps Business: Arcane Online Developer: Masangsoft Inc. Publisher: Gala Inc. (English) OS: ios & Android Gala Japan Inc. (Japanese) "Arcane Online" is a new heroic fantasy, free-to-play mobile MMORPG. It offers different character classes, Guild vs Guild and PvP battles, Pet system, a lot of customizations, events, and so much more. Japanese version Sales by language English version Japanese version Share of sales by language English version FY2017_Q1 FY2018_Q1 FY2017_Q1 FY2018_Q1 Copyright Gala Inc., All rights reserved 10

Smartphone Apps Business: Flyff Legacy Highest Grossing Rank

Legacy" is a free-to-play mobile MMORPG, based on "Flyff

Players can enjoy three character classes, a lot of different

11 Smartphone Apps Business: Flyff Legacy Highest Grossing Rank (Overall) 5 Philippines 51 Switzerland 6 Macao 14 Croatia OS: ios & Android 21 Singapore (Appannie.com) Developer: Gala Lab Corp. Publisher: Gala Japan Inc. (Japan) Entermate Co., Ltd. (Asia (except Japan and China), Australia, New Zealand) "Flyff Legacy" is a free-to-play mobile MMORPG, based on "Flyff Online" PC game. Players can enjoy three character classes, a lot of different quests, various dungeons, guilds, PvP battles and of course a flying feature. Sales by area Korea SEA & Oceania Japan North America Europe Share of sales by area Korea SEA & Oceania Japan North America Europe Europe started from 2017/12/11 FY2018_Q1 FY2018_Q1 Copyright Gala Inc., All rights reserved 11

12 Smartphone Apps Business: SpinClash OS: Android Developer: Gala Connect Inc. Publisher: Gala Connect Inc. SpinClash is an action battle game. Players can collect various heroes with each special skills and play the spin battle with their friends. It is easy to play for the every short brake as casual game, and fun to build own strategy as RPG game. Copyright Gala Inc., All rights reserved 12

13 Smartphone Apps Business: Rappelz Mobile Developer: Gala Lab Corp. OS: ios & Android Rappelz Mobile is a mobile MMORPG based on Rappelz PC online game. Players will be able to enjoy old Rappelz days, as well as take an advantage from new technologies, such as GPS and VR. Copyright Gala Inc., All rights reserved 13

Smartphone Apps Business: Immortal Warrior Developing a mobile MMORPG of Immortal Warrior Gala Lab will develop a

Developer: Red Sahara Studio Inc. Gala Lab Corp.

Resources 400 Unique Characters 13 continents 1200 Weapon and Gears Potential Users 5million registered users in

14 Smartphone Apps Business: Immortal Warrior Developing a mobile MMORPG of Immortal Warrior Gala Lab will develop a mobile MMORPG of Immortal Warrior using a system of Flyff Legacy and an IP of Immortal Warrior. Developer: Red Sahara Studio Inc. Gala Lab Corp. OS: ios & Android GalaLab MMORPG techknow ledge Immortal Warrior2 IP and Graphic Immortal Warrior MMORPG Graphic Resources 400 Unique Characters 13 continents 1200 Weapon and Gears Potential Users 5million registered users in Korea 1million registered users in US/Japan Average 10k DAU Reduce Development cost and time Guarantee volume of hardcore (fan of previous version) users Copyright Gala Inc., All rights reserved 14

15 Smartphone Apps Business: winwalk Download Ranking(Health & Fitness): 19 France 38 UK (appannie.com) 2017/12/18: Released in France (French) & UK (English) Developer: Gala Mix Inc. Publisher: Gala Mix Inc. OS: Android winwalk incentivizes you for staying healthy! The app counts your daily steps and rewards you with coins daily, the more you walk the more coins you make. You can then redeem these coins for a range of rewards like egift cards from famous brands. Copyright Gala Inc., All rights reserved 15

Publishing Area of Games and Apps, Developed In-House As

19 III. Gala Group Structure Korea Gala Inc. (HQ) Group CEO: Satoru Kikugawa Gala Mix (Developer & Publisher) Gala Connect (Developer) Gala Lab (Developer & Publisher) Gala Japan (Publisher) Gala Innovative CEO: Nicolas Pajot CEO: Hyun Hur CEO: Hyunsu Kim CEO: Jiye Kim *Dormant Smartphone Apps Business Smartphone Apps Business / Online Game Business Copyright Gala Inc., All rights reserved 19