Notice of Financial Results of Unlisted Parent Company

Transcription

1 April 27, 2016 Name of Company: NEXON Co., Ltd. Representative: Owen Mahoney, Chief Executive Officer and President (Stock Code: 3659, TSE First Section) Contact: Koji Abe, Administration Division Manager Telephone: Notice of Financial Results of Unlisted Parent Company NEXON Co., Ltd. ( NEXON ) announced the financial results of its parent company, NXC Corporation, for the year ended December 31, 2015 as follows: 1. Summary of unlisted parent company, etc. (1) Name NXC Corporation (2) Location (Yeondong) 17 Eunsu-gil, Jeju-si, Jeju-do, KOREA (3) Title/name of representative Jungju Kim, President and Representative Director (4) Business description Management of subsidiaries and the business of leasing and management of real estates (5) Capital 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, 2015 Category Number of shareholders Number of shares owned (unit) Shareholding ratio (%) Government and local public authorities Financial institution Stock information (1 share per unit) Financial instruments business operator Other corporation Foreign corporation, etc. Nonindividuals Individuals Individuals and Other Total Shareholding of fractional units , ,858,500 2,908,

2 (2) Details about major shareholders Name Address Number of shares owned (shares) As of December 31, 2015 Shares held as a percentage of total issued shares (%) Jungju Kim Jeju-do, KOREA 1,963, Junghyun Yoo Jeju-do, KOREA 856, Wise Kids Corporation Seoul, KOREA 50, Total - 2,869, (Note) Shareholders owning 1/100 or more of total issued shares are listed. (3) Details about Directors Title President and Representative Director Name Jungju Kim Date of birth February 22, 1968 December 1994 December 1997 Career summary Nexon Corporation (current NXC Corporation) Resigned from Director of same company Term of office From 31, 2016 to 30, 2019 Number of shares owned (shares) 1,963,000 July 2000 Xeogen, Inc. June 2001 Mobile Hands Company Limited (current Centum Interactive Company Limited) June 2005 Appointed as Representative Director of Nexon Corporation (current NXC Corporation) (current post) October 2005 Appointed as Representative Director of Nexon Corporation (current Nexon Korea Corporation) November 2006 Resigned from Representative Director of the same company 2007 July 2008 August Appointed as Representative Director of Wizet Corporation (current NXProperties Corporation) (current post) Galerie313 Corporation (current post) Resigned from Director of Xeogen, Inc. NEXON

3 2010 Resigned from Director of NEXON Director Dohwa Lee November 16, 1973 September 2010 April 1996 August 1998 NEXON (current post) Joined Black Soft Co., Ltd. Joined NEXON Corporation (current NEXON Korea Corporation) From 31, 2016 to 30, November 2000 Joined Samil PricewaterhouseCoopers April 2006 Joined NEXON Korea Corporation September 2009 Appointed as Accounting and Finance Division Manager of NEXON January 2012 NEXON Networks Corporation October 2012 NXC Corporation (current post) November 2012 Appointed as Statutory Auditor of Gallery 313 Co., Ltd. (current post) April 2015 Appointed as Chief Executive Officer of VIP Private Equity Fund I (current post) January 2016 Appointed as Statutory Auditor of Gaseung Development Co., Ltd. (current post) 2016 NEXON (current post) Director Statutory Auditor Hak Yong Kim Junghyun Yoo January 10, 1978 April 16, 1969 April 2016 November 1999 October 2014 September 1995 April 2002 Appointed as Chief Executive Officer of NXProperties Corporation (current post) Joined Nexon Corporation (current NXC Corporation) NXC Corporation (current post) Joined Nexon Corporation (current NXC Corporation) Appointed as Representative Director of Nexon Networks Corporation From 27, 2015 to 26, 2018 From 31, 2016 to 30, ,000 July 2003

4 Nexon Corporation (current NXC Corporation) July July 2008 Wizet Corporation (current NXProperties Corporation) Appointed as an audit committee member of Nexon Holdings Corporation (current NXC Corporation) Appointed as Representative Director of Galerie313 Corporation October Appointed as Statutory 2010 Auditor of NXC Corporation (current post) Total 2,819,000

5 3. Financial Statements (1) Consolidated Financial Statements Consolidated Statements of Financial Position 27th term : As of December 31, th term : As of December 31, 2014 NXC Corporation and Subsidiaries Account 27th (current) term 26th (previous) term Assets Current assets 3,472,921,339,761 2,628,114,859,767 Cash and cash equivalents 1,967,108,516,441 1,122,293,940,854 Financial assets at fair value through profit or loss 128,907,776, ,591,952,141 Trade receivables 337,854,693, ,203,617,243 Other financial assets 967,854,269, ,586,145,210 Other assets 45,564,685,751 44,688,761,232 Current tax assets 4,580,757, ,833,870 Inventories 21,050,639,722 22,769,609,217 Non-current assets 1,652,775,433,845 2,355,802,762,150 Available-for-sale financial assets 256,084,371, ,139,287,184 Other financial assets 77,005,471, ,868,702,363 Other assets 26,024,087,841 19,188,256,724 Property and equipment 250,090,696, ,951,210,795 Intangible assets 931,447,091,404 1,044,584,559,826 Investment property 23,703,650,015 53,868,653,912 Investment in associates 62,534,365,413 53,980,675,505 Deferred tax assets 25,885,699,273 47,221,415,841 Total assets 5,125,696,773,606 4,983,917,621,917 Liabilities Current liabilities 576,974,145, ,444,699,111 Trade payables 52,720,617,576 46,845,187,834 Borrowings 176,908,825, ,268,079,347 Other financial liabilities 131,747,510, ,400,091,897 Other liabilities 118,417,665, ,824,092,496 Provisions 238,385, ,461,735 Current tax liabilities 96,941,140, ,621,785,802 Non-current liabilities 288,936,010, ,069,791,321 Borrowings 141,774,813, ,417,297,143 Other financial liabilities 21,806,024,142 27,418,335,452 Other liabilities 19,213,366,891 22,223,403,380 Provisions 3,168,127,821 3,808,055,533 Defined benefit liabilities 2,153,985,587 2,016,154,803 Deferred tax liabilities 100,819,692, ,186,545,010 Total liabilities 865,910,156,461 1,409,514,490,432 Equity attributable to owners of the Parent Capital stock 1,454,250,000 2,023,659,000 Paid-in capital in excess of par value 5,257,138,814 5,257,138,814 Other components of equity 301,429,838, ,342,314,623 Retained earnings 2,337,540,138,726 2,032,073,319,848 Non-controlling interest 1,614,105,250,857 1,234,706,699,200 Total equity 4,259,786,617,145 3,574,403,131,485 Total liabilities and equity 5,125,696,773,606 4,983,917,621,917

6 Consolidated Statements of Comprehensive Income 27th term : From January 1, 2015 to December 31, th term : From January 1, 2014 to December 31, 2014 NXC Corporation and Subsidiaries Account 27th (current) term 26th (previous) term Revenue 1,976,638,534,843 1,948,525,292,306 Cost of sales 627,005,568, ,248,014,915 Cost of service 541,571,641, ,413,610,432 Cost of finished goods sold 85,433,926,122 99,834,404,483 Gross profit 1,349,632,966,762 1,301,277,277,391 Selling and administrative expenses 712,076,759, ,065,581,185 Operating profit 637,556,207, ,211,696,206 Other income 166,987,624,993 65,667,434,333 Other expenses 108,437,915, ,794,214,484 Financial income 93,588,545, ,504,445,522 Financial expenses 61,133,793,738 75,314,386,303 Share of profit(loss) 4,410,923,345 (7,491,136,614) Profit before income tax 732,971,591, ,783,838,660 Income tax expense 187,419,805, ,595,247,309 Profit for the year 545,551,785, ,188,591,351 Attributable to: Equity holders of the Parent Company 314,374,802, ,983,962,726 Non-controlling interest 231,176,982, ,204,628,625 Other comprehensive income (loss) Items that will not be reclassfied to profit or loss Remeasurements of the net defined benefit liabilities (38,112,228) (284,687,155) Items that may be subsequently reclassified to profit or loss Changes in fair value of available-for-sale financial assets (53,071,559,005) (97,283,455,052) Gain on valuation of derivatives 349,760, ,252,589 Changes in equity method investees 910,879,912 1,701,182,096 Exchange differences on translating foreign operations 50,374,564,164 (131,291,302,863) (1,474,466,495) (226,701,010,384) Total comprehensive income (loss) for the year 544,077,319,179 (2,512,419,033) Attributable to: Equity holders of the Parent Company 308,297,288,259 (37,416,696,553) Non-controlling interest 235,780,030,920 34,904,277,520

7 Consolidated Statements of Changes in Equity 27th term : From January 1, 2015 to December 31, th term : From January 1, 2014 to December 31, 2014 NXC Corporation and Subsidiaries Account Attributable to equity holders of the Parent Company Non-controlling Other components Capital stock Capital surplus Retained earnings Total Interest of equity Total equity Balances as of January 1, ,023,659,000 5,257,138, ,425,957,421 1,912,287,368,320 2,400,994,123,555 1,244,672,136,022 3,645,666,259,577 Total comprehensive income: Profit for the year ,983,962, ,983,962, ,204,628, ,188,591,351 Other comprehensive loss - - (157,202,648,081) - (157,202,648,081) (69,213,675,149) (226,416,323,230) Remeasurements of the net defined benefit liabilities (198,011,198) (198,011,198) (86,675,957) (284,687,155) Transactions with equity holders of the Company: Dividends of subsidiaries paid (16,385,809,918) (16,385,809,918) Changes in shares of subsidiaries - - (23,457,730,272) - (23,457,730,272) (74,328,383,117) (97,786,113,389) Acquisition of treasury stock , , , ,230 Share-based payment associated with stock options of subsidiaries ,089,987,458 46,089,987,458 Others - - (423,851,605) - (423,851,605) (245,849,834) (669,701,439) Balances as of December 31, ,023,659,000 5,257,138, ,342,314,623 2,032,073,319,848 2,339,696,432,285 1,234,706,699,200 3,574,403,131,485 Balances as of January 1, ,023,659,000 5,257,138, ,342,314,623 2,032,073,319,848 2,339,696,432,285 1,234,706,699,200 3,574,403,131,485 Total comprehensive income: Profit for the year ,374,802, ,374,802, ,176,982, ,551,785,674 Other comprehensive loss - - (6,054,030,620) - (6,054,030,620) 4,617,676,353 (1,436,354,267) Remeasurements of the net defined benefit liabilities (23,483,987) (23,483,987) (14,628,241) (38,112,228) Transactions with equity holders of the Company: Capital reduction with consideration paid (26,500,000) - (70,100,715,000) - (70,127,215,000) - (70,127,215,000) Capital reduction without consideration paid (542,909,000) - 542,909, Paid for dividends (8,884,500,000) (8,884,500,000) - (8,884,500,000) Dividends of subsidiaries paid (15,770,978,909) (15,770,978,909) Changes in shares of subsidiaries ,939,803,974-78,939,803, ,012,684, ,952,488,646 Share-based payment associated with stock options of subsidiaries ,787,852,343 17,787,852,343 Changes in scope of consolidation - - (2,240,443,229) - (2,240,443,229) 2,588,962, ,519,401 Balances as of December 31, ,454,250,000 5,257,138, ,429,838,748 2,337,540,138,726 2,645,681,366,288 1,614,105,250,857 4,259,786,617,145

8 Consolidated Statements of Cash Flows 27th term : From January 1, 2015 to December 31, th term : From January 1, 2014 to December 31, 2014 NXC Corporation and Subsidiaries Account 27th (current) term 26th (previous) term Cash flows from operating activities Cash generated from operations 761,569,412, ,690,385,657 Interest received 35,024,632,462 35,267,245,158 Interest paid (9,707,347,088) (16,263,955,554) Dividends income 20,432,093,635 15,443,842,955 Income tax paid (229,995,206,242) (246,101,713,811) Net cash inflow from operating activities 577,323,585, ,035,804,405 Cash flows from investing activities Decrease in financial deposits 1,182,076,718, ,777,986,763 Increase in financial deposits (1,189,805,057,525) (1,157,527,254,219) Decrease in financial assets at fair value through profit or loss 259,691,757, ,468,542,416 Increase in financial assets at fair value through profit or loss (232,984,072,708) (161,063,805,855) Decrease in held-to-maturity investment - 1,000,000,000 Decrease in non-current asset held-for-sale - 46,867,653,750 Decrease in available-for-sale financial assets 639,663,033, ,890,949,207 Increase in available-for-sale financial assets (150,684,422,273) (38,251,230,368) Decrease in other receivables 13,168,645,154 21,360,455,620 Increase in other receivables (2,403,942,740) (61,676,482,519) Disposal of property and equipment 706,065,079 8,478,898,044 Acquisition of property and equipment (24,801,310,935) (40,877,292,089) Disposal of intangible assets 701,977,572 1,373,217,313 Acquisition of intangible assets (24,842,013,469) (18,297,917,035) Acquisition of investment property (77,577,877) - Acquisition of investment in associates (1,000,000,000) (2,025,244,252) Disposal of investment in subsidiaries 59,382,172,627 (737,708,922) Contingent consideration (6,926,795,536) - Business combination (19,466,206,034) (549,419,556,192) Net cash inflow(outflow) from investing activities 502,398,971,334 (971,658,788,338) Cash flows from financing activities Capital reduction with consideration paid (70,127,215,000) - Increase in short-term borrowings 300,621,661, ,811,050,510 Decrease in short-term borrowings (413,818,826,654) (29,494,633,441) Redemption of current portion of borrowings (240,017,641,430) (122,433,711,811) Increase in long-term borrowings 49,430,166, ,924,560,471 Decrease in long-term borrowings (123,361,025,520) (332,078,857,508) Increase in financial lease liabilities - 1,123,117,504 Decrease in financial lease liabilities (3,262,127,679) (5,575,431,631) Dividends paid (8,884,500,000) - Dividends of subsidiaries paid (15,770,978,909) (16,385,809,918) Transactions with equity holders of the Company 220,394,135,624 (97,786,113,389) Net cash provided by (used in) financing activities (304,796,351,744) 193,104,170,787 Net increase (decrease) in cash and cash equivalents 774,926,205,255 (321,518,813,146) Cash and cash equivalents at the beginning of year 1,122,293,940,854 1,523,549,370,620 Exchange loss on cash and cash equivalents 69,888,370,332 (79,736,616,620) Cash and cash equivalents at the end of year 1,967,108,516,441 1,122,293,940,854

9 (2) Financial statements Statements of Financial Position 27th term: As of December 31, th term: As of December 31, 2014 NXC Corporation Account End of 27th (current) term End of 26th (previous) term Assets Current assets 153,716,144, ,310,588,428 Cash and cash equivalents 64,887,906,912 23,430,983,469 Financial assets at fair value through profit or loss 84,926,315, ,486,257,390 Trade receivables 607,508, ,450,638 Other financial assets 3,167,186,031 4,712,650,717 Other assets 127,227, ,246,214 Noncurrent assets 500,712,934, ,709,553,624 Available-for-sale financial 126,314,851,014 19,288,073,346 Other financial assets 415,824, ,704,000 Investment shares in affiliates 33,804,320,311 32,355,674,311 Investment shares in 306,405,254, ,312,270,163 Property and equipment 2,649,938,570 2,788,883,658 Intangible assets 7,193,403,247 8,494,601,408 Investment property 23,513,466,543 24,013,346,738 Deferred tax assets 415,876,701 - Total assets 654,429,078, ,020,142,052 Liabilities Current liabilities 28,590,201,708 10,724,133,368 Other financial liabilities 2,659,823,752 2,213,433,834 Other liabilities 56,810,586 64,584,263 Current tax liabilities 25,873,567,370 8,446,115,271 Noncurrent liabilities 1,467,997,019 2,691,482,368 Other financial liabilities 1,467,997,019 2,289,591,474 Deferred tax liabilities - 401,890,894 Total liabilities 30,058,198,727 13,415,615,736 Equity Capital stock 1,454,250,000 2,023,659,000 Paid-in capital in excess of par value 5,257,138,814 5,257,138,814 Other components of equity (182,803,374,017) (113,036,136,286) Retained earnings 800,462,864, ,359,864,788 Total equity 624,370,879, ,604,526,316 Total liabilities and equity 654,429,078, ,020,142,052

10 Statements of Comprehensive Income 27th term: From January 1, 2015 to December 31, th term: From January 1, 2014 to December 31, 2014 NXC Corporation Account 27th (current) term 26th (previous) term Operating revenue 24,163,916,572 39,711,933,776 Dividend income 20,788,355,512 36,867,260,082 Royalty income 1,653,112,453 1,736,235,376 Rent income 1,592,648, ,154,572 Financial assets at fair value through profit or loss 129,799, ,283,746 Operating expenses 9,770,576,417 9,068,024,912 Selling and administrative expenses 9,770,576,417 9,068,024,912 Operating profit 14,393,340,155 30,643,908,864 Other income 193,739,546,454 13,713,773,290 Other expenses 15,281,783,975 19,247,311,961 Financial income 5,265,489, ,166,930 Financial expenses 1,298,047, ,544,568 Profit before income taxes 196,818,544,693 24,830,992,555 Income tax expense 26,831,044,541 9,661,483,691 Profit for the year 169,987,500,152 15,169,508,864 Other comprehensive income (loss) (209,431,731) (1,778,542,871) Items that may be subsequently reclassified to profit or loss Changes in fair value of available-for-sale financial assets (209,431,731) (1,778,542,871) Total comprehensive income for the year 169,778,068,421 13,390,965,993

11 NXC Corporation Category Capital stock Statements of Changes in Equity 27th term: From January 1, 2015 to December 31, th term: From January 1, 2014 to December 31, 2014 Paid-in capital in excess of par value Other components of equity Retained earnings Total Balance as of January 1, ,023,659,000 5,257,138,814 (111,257,593,415) 624,190,355, ,213,560,323 Total comprehensive income: Profit for the year ,169,508,864 15,169,508,864 Changes in fair value of availablefor-sale financial assets Financial assets at fair value through profit or loss Balance as of January 1, (1,778,542,871) - (1,778,542,871) 2,023,659,000 5,257,138,814 (113,036,136,286) 639,359,864, ,604,526,316 2,023,659,000 5,257,138,814 (113,036,136,286) 639,359,864, ,604,526,316 Total comprehensive income: Profit for the year ,987,500, ,987,500,152 Changes in fair value of availablefor-sale financial assets Transactions with equity holders of the Company: - - (209,431,731) - (209,431,731) Dividends paid (8,884,500,000) (8,884,500,000) Capital reduction without consideration paid (542,909,000) - 542,909, Capital reduction with consideration paid Balance as of December 31, 2015 (26,500,000) - (70,100,715,000) - (70,127,215,000) 1,454,250,000 5,257,138,814 (182,803,374,017) 800,462,864, ,370,879,737

12 Statements of Cash Flows 27th term: From January 1, 2015 to December 31, th term: From January 1, 2014 to December 31, 2014 NXC Corporation Category 27th (current) term 26th (previous) term Net cash provided by (used in) operating activities 5,626,627,187 23,324,500,553 Cash generated from (used in) operations (4,950,100,234) 1,356,528,291 Dividends income 20,788,355,512 22,776,998,207 Interest received 444,213, ,027,730 Financial assets at fair value through profit or loss (501,345,388) (86,913,829) Income tax paid (10,154,496,608) (1,120,139,846) Net cash provided by (used in) investment activities 113,606,768,838 (106,759,791,256) Decrease in financial deposits 1,985,000, ,000,000 Increase in financial deposits (575,000,000) (670,000,000) Decrease in financial assets at fair value through profit or loss Increase in financial assets at fair value through profit or loss 192,266,943, ,623,755,546 (169,672,805,832) (104,795,055,721) Decrease in available-for-sale securities 2,027,450,000 6,000,000,000 Increase in available-for-sale financial assets (110,292,910,424) (6,145,632,253) Decrease in other receivables 15,880, ,920,000 Disposal of investment in associates 218,949,727,982 - Acquisition of investment in associates (20,801,653,308) (153,743,609,188) Disposal of property and equipment - 511,986,124 Acquisition of property and equipment (101,037,790) (1,181,906,098) Disposal of investment property 10,395,000 3,768,360,464 Disposal of intangible assets 32,400,000 - Acquisition of intangible assets (237,620,000) (11,610,130) Net cash used in financing activities (79,011,715,000) - Capital reduction with consideration paid (70,127,215,000) - Increase in borrowings 159,646,900,000 20,326,000,000 Decrease in borrowings (159,646,900,000) (20,326,000,000) Dividends paid (8,884,500,000) - Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of year Exchange gain/loss on cash and cash equivalents Cash and cash equivalents at the end of year 40,221,681,025 (83,435,290,703) 23,430,983, ,271,751,840 1,235,242,418 (405,477,668) 64,887,906,912 23,430,983,469