NCsoft has established publishing subsidiaries in US, Europe, China, Japan and Taiwan since early 2000. Since then, we have been accumulating know-how and reputations in the world throughout the success of City of Heroes, Guild Wars, Lineage, and LineageⅡ. In 2009, new MMORPG Aion, which has been targeting global markets from the initial stage of development, will reposition the company as the world’s leading online game publisher.

Lineage and LineageⅡ, our representative products, started 11 and 6 years ago respectively but they are still generating significant traffics and revenues and renewing the history of MMORPG every day. Furthermore, Lineage series overseas revenues from Japan, Taiwan, and China have been increasing steadily. In case of Aion, domestic revenue has exceeded the revenues of Lineage or LineageⅡ right after it has launched and is showing better-than-expected results not only in Korea but also in most of the overseas market such as China, Japan, Taiwan, US, and Europe. Our constant investments and efforts over the last years eventually are coming to fruition.

In 2008, consolidated sales and operating profit recorded 346.6 and 50.1 bn KRW respectively and operating margin was about 14%. We are targeting total sales of 580 bn KRW this year owing mainly to the success of Aion. MMORPG, NCsoft's core business, requires a development period of over three years and high development costs. NCsoft treats all development costs as expense, so huge costs are incurred without making any profits during the long development period. As a result, we expect our profitability will be improved dramatically starting from 2009 through Aion’s success. In the first half of 2009, consolidated sales recorded 271.2 bn KRW. Operating profit recorded 89.9 bn KRW exceeding the total amount of profit of the last full year.

NCsoft’s core competency is coming from our world’s best development team. Our development team, who developed Lineage and Aion, is now working on Blade & Soul. Blade & Soul is also targeting global markets like Aion. Know-how gained from the process of publishing Aion etc. will be reflected to new product. We will merge publishing companies and development studios in US and Europe together into the name called “NCwest” to raise the efficiency of managing resources and centralize the abilities of development and publishing. Our US studio is now developing Guild Wars 2, a sequel to Guild War. Guild Wars 2 is a promising MMORPG especially in US and Europe.

NCsoft is the world’s largest online game developer. We spent more than 120 bn KRW in 2008 and we are continually investing in various projects through studios at home and abroad. In pursuing these massive development projects, efficient decision-making and management became a major agenda. Since 2006, the company has been practicing several solutions such as Project Review Committee and Milestone Review Committee to streamline these processes. As a result, NCsoft now has an integrated global, market, and business perspective in decision making and development of our products. We are also sharing our expertise and know-how with each development studio. Online game can be very much a hit-and-miss product in nature but we are trying to improve the potential and probability of success through those processes.

The growth of casual game market is accelerating these days due to the growing number of female gamers and young generations. NCsoft has yet to make clear progress in the casual game segment. Therefore, we will need to explore a new approach. Recently Love beat, rhythm action game, is receiving positive feedbacks from the users and we are planning to launch new casual games such as Metal Black, Steel Dog, Dragonica, Punch Monster in the near future. Through these new games reflecting the changing market trends and customers’ needs, NCsoft will strengthen its competencies in casual game segment.

NCsoft’s eyes are open to the global market and all of the gamers in the world are watching us. We have world’s leading publishing and operation capabilities. We are going to enhance our brand power so that we are able to receive heartfelt compliments and trust from our customers over the world. On the way, we will keep communicating with our shareholders to share the present state and create a better future. We hope our investors continuously inspire us to further efforts. Thank you.