Overall, it is true that the market is somewhat flat. However, if you look one or two steps deeper into the mobile casual game market, you will notice that while in-app purchases are up and downloads are down, specific genres are doing quite well. Even amidst a flat market, the puzzle genre has grown by over 20%. As for hybrid casual games, many companies have started moving toward combining ad revenue and in-app purchase revenue, and this area is the sweet spot we are focusing on.

I believe this market is constantly evolving. A great example is match-3 games in the casual genre; they suffered a downturn for a long time until companies like Dream Games emerged in 2021 and completely reshuffled the genre. Mobile casual games ultimately come down to systems and specific success formulas. How you operate the game, how you develop it, how fast you move, and how you experiment are what matter. Because we have many studios within our portfolio, we can test hypotheses across the entire portfolio and learn much faster what works. As time goes on and we build OptiFlow as a platform, we will become far more efficient. We can set benchmarks to figure out what is good and easily transfer a successful formula from one studio to the entire portfolio.

This is showing in the data and results. We expect the mobile casual game market to continue growing. Our work with the studios is only at the beginning stage. Acquiring companies is arguably the easy part, and the hard work lies in integrating them and evolving them into something much bigger. This is where we spend most of our time with the teams, helping the studios grow and become better.

The MAU growth stems from two factors. The first is LTV. They are benefiting greatly by increasing user engagement through live services, gamification, and new features like challenges. The second is on the distribution side. With Apple's App Store policy changes last year, we were able to open up the iOS market significantly. Because of store regulations, iOS had previously lagged behind Android, and a lot of growth is happening there now. If you compare features, iOS still lags behind, but once we catch up on features and scale up, the iOS market will become much larger than Android. Android is also continuing to grow and improve.

Looking at the rewarded market, JustPlay's potential has only just scratched the surface. According to public data, the rewarded ecosystem itself is growing very rapidly. If you had asked studios two years ago what percentage of their user acquisition budget was allocated to rewarded networks, it would have been very low, but today most companies spend up to 30% of their UA budget on rewarded ads. The biggest reason is that it works and brings in positive users.

JustPlay is one of the biggest players in this space, and a lot of acquisition goes toward JustPlay. Aside from the growth achieved so far, there are also synergy effects where we can expand the business model across our entire studios. Sometime next year, JustPlay is slated to open up beyond its own studios to external parties. Since the growth so far has been achieved solely through our own studios, I believe there are still plenty of great opportunities in the market.

NC is building its own AI and holds a lot of capabilities in this area. Let me explain this by dividing it into distribution and monetization. On the distribution side, what is really important for AI is how to generate ad creatives at scale. When scaling up distribution, you always need to produce fresh and new ad creatives, constantly churning out thousands of different video ads or playable ads, and utilizing AI makes this process much more efficient. Also, when scaling campaigns, you have to manage thousands of campaigns across the portfolio, which generates massive amounts of data. AI and machine learning models help our predictive algorithms work accurately and decide how to allocate budgets across multiple campaigns, which is nearly impossible to handle manually.

On the monetization side, we have live services, and having a massive amount of data is crucial. The key is figuring out which feature or offer to show to which user at a specific time and moment. Connecting these features to machine learning models to understand how likely a user is to remain engaged with a new feature or level yields much better results.

Aside from this, there is automation that makes tasks faster and cheaper overall. From a game production standpoint, the future where AI generates entire mobile casual games is quite far off. It is still impossible to build scaled and profitable games globally. Therefore, we are taking a step-by-step approach; the first step is creating playable ad creatives, which AI can help with. It also helps generate in-game assets, UI, characters, and blocks for puzzle games, improving workflow. Our perspective on AI is building an entire system so our studios can work faster, better, and cheaper than competitors. The ultimate goal is for games to look visually stunning, increase user engagement, and deliver genuine fun.

I talk a lot with the two CEOs about strategy and long-term vision. However, my goal is for our division to execute plans and deliver results. If we deliver results, we have done our job properly, which I believe is the greatest value we can provide to the company. When I joined NC, I was truly surprised. NC is a company that focused on MMORPGs, and MMORPGs are vastly different from mobile casual games. However, the management, including CEO Kim Taek-jin and CEO Park Byung-moo, had already thoroughly studied and understood how the mobile casual game market works. Yet, executing it is completely different, which is why they needed an expert in the field.

Mobile casual games require very fast iterations and rapid data analysis. The OptiFlow platform and all the tools we are building make us far more efficient. Just a few years ago, analyzing game performance meant formulating a hypothesis and handing it over to a data analyst, only to get results weeks later. But now, through OptiFlow, everything is connected, and any member of the company and studios can request the analysis they want in simple English or Korean to get information instantly and make quick decisions. The overall market flow utilizing AI is changing, and through this, we are gaining global competitiveness and making the right decisions.

There are three major revenue drivers that will propel revenue in the mobile casual game sector over the next few years. The first is the organic growth of the studios we already own. We will scale up the studios and improve them much more effectively by utilizing OptiFlow and the success formulas we are building.

The second is M&A for inorganic growth. When we find studios that fit our strategy, we will inject capital to acquire them and secure a global studio cluster. Currently, we have studios in Europe, South Korea, and Vietnam, and we are also looking at other major markets where the best mobile casual games are made, such as China, India, and Turkey, so we will continue with M&As. The third is publishing. We will publish great titles with a high proportion of in-app purchases, and this will be another revenue driver.