Slide 1: 2014 Third Quarterly Results
2014 Third Quarterly Results IGG INC Nov. 2014
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”) which have been prepared by IGG INC (the “Company”) do not constitute any offer or invitation to purchase or subscribe for any securities, and shall not form the basis for or be relied on in connection with any contract or
Slide 3: Agenda
Agenda • Company Overview • 2014 Q3 Financial Results • Business Review and Prospects
Slide 4: Company Profile
Company Profile A fast-growing global mobile games developer and operator, founded in 2006, with headquarters in Singapore and regional offices in the US, China, Canada and Philippines; As at end of Sep. 2014, IGG has been operating over 40 games, and 87% of the total revenue was contributed by
Slide 5: Major Self-developed and Licensed Games
Major Self-developed and Licensed Games Mobile Games 2007 2008 2009 2010 2011 2012 2013 2014 till now Browser Games IGG INC 4
Slide 6: Core Competencies
Core Competencies High quality & Market proven games could be launched worldwide Keeping us aligned with Globalized trends in the online gaming Experienced localization organizational industry team and structure, equal international and vibrant operating team corporate culture Cooperating with leadi
Slide 7: Agenda: 2014 Q3 Financial Results
Agenda • Company Overview • 2014 Q3 Financial Results • Business Review and Prospects
Slide 8: 14Q3 Financial Highlights (unaudited)
14Q3 Financial Highlights (unaudited) 13Q3 14Q3 Change 14Q2 14Q3 Change Revenue USD million 22.5 52.2 132% 47.8 52.2 9% Gross profit USD million 16.7 36.9 121% 34.4 36.9 7% % Gross profit margin 74% 71% -3ppt 72% 71% -1ppt Adjusted net income* USD million 5.2 19.0 265% 19.9 19.0 -5% Adjusted net inc
Slide 9: 14Q3 Revenue Growth
14Q3 Revenue Growth (USD million) The increase was primarily due to： • The continued steady growth of our hit title 132% “Castle Clash” launched in July 2013; the Q3 revenue of CC was about USD32.0 million worldwide. 52.2 • An increase in revenue generated from the mobile game series “Clash of Lords
Slide 10: Quarterly Revenue Growth
Quarterly Revenue Growth 60 (USD million) $ 52.2 $ 47.8 50 $ 44.1 40 $ 36.7 from 13Q3 to 14Q3 30 The compound growth rate $ 22.5 of total revenue achieved 23.4% 20 10 0 13 Q3 13 Q4 14 Q1 14 Q2 14 Q3 IGG INC 9
Slide 11: Quarterly Revenue Growth (Mobile Gaming Business)
Quarterly Revenue Growth (Mobile Gaming Business) 50 (USD million) 14Q3 vs. 14Q2 $ 45.4 45 The growth rate for mobile game segment achieved 40 14.0% $ 39.9 35 $ 34.9 30 25 $ 26.5 from 13Q3 to 14Q3 20 The compound growth rate for mobile game segment 15 achieved 10 $ 12.2 38.9% 5 0 13 Q3 13 Q4 14 Q1 1
Slide 12: 14Q3 Adjusted Net Income Growth
14Q3 Adjusted Net Income* Growth The growth rate of adjusted net profit (USD million) surpassed that of revenue was primarily due to: •Comparing with 13Q3, in which quarter 265% CC was newly launched, marketing expense in 14Q3 was relatively low for 19.0 existing games and moderate for Link. •The fi
Slide 13: 14Q3 Revenue Breakdown by Segment
14Q3 Revenue Breakdown by Segment Others* 2% Self-operated games: Joint • refers to the games, both in-house developed and licensed from third operation parties, solely operated by the Group; 7% • the revenue recognized from this segment is approximately equal to the game players‟ payment. Joint ope
Slide 14: 14Q3 Revenue Breakdown by Game
14Q3 Revenue Breakdown by Game Client-based Others * % of Mobile game title total revenue games 2% 2% Castle Clash 63% Browser Clash of Lords (I&II) 19% games 9% Texas Poker Deluxe 4% Slot Machines 3% % of Browser game title total revenue Wings of Destiny 4% Mobile games Galaxy Online II 3% 87% Texa
Slide 15: 14Q3 Revenue Breakdown by Region
14Q3 Revenue Breakdown by Region By % of country total revenue Australia 3% By % of country total revenue Others By % of 6% country/region total revenue Germany 8% Asia Mainland China 6% Russia 8% 29% Europe Taiwan 2% France 5% 26% Singapore 2% Great Britain 5% % of By country total revenue North Am
Slide 16: Expenses Breakdown and Profitability
Expenses Breakdown and Profitability 13FY 14H1 14Q3 14Q3* Gross profit margin 75% 72% 71% 71% Selling & distribution 26% 21% 20% 15% exp./ Revenue Administrative 12% 7% 9% 9% exp./ Revenue R&D costs/Revenue 11% 7% 9% 9% Adjusted net income 25% 37% 36% 41% margin ** * The selling and distribution exp
Slide 17: Expenses Breakdown and Profitability (Gaming Business)
Expenses Breakdown and Profitability (Gaming Business) 90% 30% 75% 25% Selling & distribution 列1 exp./ Revenue 60% Gross Margin 20% 毛利率 Administrative 列2 45% Adjusted net 15% exp./ Revenue 經調整淨利率 30% income margin 10% 列3 R&D costs/Revenue 15% 5% 0% 0% 13FY 14H1 14Q3 13FY 14H1 14Q3 • Cost of sales of
Slide 18: Tax Rate
Tax Rate IGG Singapore The Preferential corporate tax rate • More than 95% of our total 17% revenue was recognized through 5% IGG Singapore for the third quarter of 2014, and this percentage is expected to be stable in the foreseeable future; • From 2010-2016, IGG Singapore is entitled to a preferen
Slide 19: Agenda: Business Review and Prospects
Agenda • Company Overview • 2014 Q3 Financial Results • Business Review and Prospects
Slide 20: Human Resources
Human Resources Breakdown by function Breakdown by location Management Global 4% Finance& Canada 3% Philippines support 8% 22% Admin. Singapore 6% 6% US Operation & 4% Customer service 16% R&D China 45% 79% IT support 7% • As at Sep. 30 2014, the Group had 770 employees, the turnover rate of the fir
Slide 21: Mobile Games
Mobile Games Quarterly percentage change of mobile games revenue/total revenue • More than 90% R&D force has from 13Q3 to 14Q3 been shifted to mobile games development; 87% 14Q3 • The revenue percentage of 83% Browser & mobile games is expected to 14Q2 client-based further increase along with the 79
Slide 22: Operational Data Excerpts of Major Games
Operational Data Excerpts of Major Games CC COL II (Castle Clash) (Clash of Lords II) Launched in July 2013 Dec. 2013 Numbers of language versions 13 7 (as at the end of Oct. 2014) Registered users 73.0 million 17.0 million (as at the end of Oct. 2014) Monthly active users 9.2 million 3.0 million (O
Slide 23: Global Games Market
Global Games Market 2014 •The revenue of global Mobile games market The compound revenue growth rate games market is expected of global games market will be 8.1% to be USD 81.4 bn.; from 2014 to 2017, the number for •Mobile games revenue will mobile games market will be 17.5%； arrive at USD 21.8 bn
Slide 24: Operational Data Excerpts of Major New Games
Operational Data Excerpts of Major New Games Clash of Gangs Gods Rush Brave Trials Type In-house In-house Licensed Genre 3D combat strategy card-based strategy RPG Launched in Oct. 2014 Oct. 2014 Aug. 2014 Language, platform English, Android English, Android English, Android Registered users 1.28 mi
Slide 25: Link
Link Link is a location-based social networking and instant messaging mobile application launched by the Group in Aug. 2014. As at the end of Oct. 2014, the registered user numbers for Link was 2.65mn including about 1mn MAU. Out of all the Link users from around the world, Malaysia, India, US
Slide 26: Thank you!
Thank you! IR Contact • ir@igg.com • yolanda.gao@igg.com