Slide 1: Interim Results
Interim Results IGG Inc August 2017
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”) 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 binding commitment whatsoever. This Presentation ha
Slide 3: Agenda
Agenda • IGG Overview • Business Review • 2017 Interim Financial Review and Prospects Innovators at Work Gamers at Heart
Slide 4: IGG Overview
IGG Overview A leading global developer and publisher of mobile games Hit Titles Global R&D Global Market Global Operation • R&D and operation • Users across 200+ teams located in 10+ countries and regions countries and regions • Registered users: • Long-term relationship 430mn with 100+ distributio
Slide 5: Global Branches
Global Branches • R&D, Operation, and Supporting talents account for 54%, 25% and 21% of total employment, respectively. • Long-term relationship with Apple, Google Play, Amazon, Microsoft, as well as more than 100 other global distribution platforms and partners Russia & Belarus USA Localized R&D I
Slide 6: Global Ranking
Global Ranking Industry • According to App Annie, IGG ranked 20th globally in terms of mobile game revenue in 1H17. Ranking • Ranked 27th on “Top 52 Publishers of 2016” released by App Annie. • Dec. 2016, selected as the “Most Competitive Game of 2016” on Google Play Lords Mobile across 73 countries
Slide 7: Agenda
Agenda • IGG Overview • Business Review • 2017 Interim Financial Review and Prospects Innovators at Work Gamers at Heart
Slide 8: 1H17 Results
1H17 Results • Revenue and Net Profit hit record highs in 1H17 ➢ Revenue: US$273.5M, surged +117% YoY. ➢ Net Profit: US$76M, soared +205% YoY. 1H17 Revenue Growth: YoY 1H17 Net Profit Growth: YoY (US$ million) (US$ million) 300 273.5 100 76.2 80 200 196.1 60 46.6 126.0 40 100 25.0 20 0 0 1H16 2H16 1
Slide 9: Trend of Historical Gross Billing
Trend of Historical Gross Billing 1H17 Monthly Gross Billing The Group: (US$ million) 55.1M • Monthly gross billing exceeded US$55M 60 • 1H17 gross billing achieved US$305M; 50 40 Annualized gross billing of approx. 30 21.5M US$677M (US$2M incremental gross 20 billing per month in 2H17 on the basis
Slide 10: 1H17 Revenue Performance
1H17 Revenue Performance 1H17 IGG Monthly Revenue (US$ million) 51 50.2M 49 47 45 42.7M 43 41 39 37 35 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Innovators at Work Gamers at Heart 9
Slide 11: Operational Data
Operational Data Lords Mobile Castle Clash Clash of Lords II RTS/RPG Game Strategy Game Strategy Game • Launched in March 2016 • Launched in July 2013 • Launched in December 2013 • Available in 18 languages • Available in 15 languages • Available in 12 languages • Registered users: 48mn • Registered
Slide 12: Lords Mobile
Lords Mobile By Platform By Region Others Others Others Others 3% 3% 3% 3% Europe 14% Europe Android iOS Android iOS 22% North Asia Asia 34% 63% 46% 51% 48% America 60% North 23% America 27% Lords Mobile IGG Lords Mobile IGG iOS momentum continues Well balanced revenue Strong Asia contribution Reven
Slide 13: Hybrid Marketing Strategies
Hybrid Marketing Strategies Bus/MTR advertisement Outdoor/TV commercials Tournaments (Times Square - NY) (Singapore) (Hong Kong & Taiwan) (Turkey) (Hong Kong) Innovators at Work Gamers at Heart 12
Slide 14: Preparing New Marketing Strategies
Preparing New Marketing Strategies Cinematic-quality advertisement Endorsement by top-tier celebrities Innovators at Work Gamers at Heart 13
Slide 15: Agenda
Agenda • IGG Overview • Business Review • 2017 Interim Financial Review and Prospects Innovators at Work Gamers at Heart
Slide 16: 1H17 Financial Analysis
1H17 Financial Analysis (US$ million) 1H16 2H16 1H17 HoH (%) YoY (%) Remarks Revenue 126.0 196.1 273.5 +40% +117% Substantial increase in revenue from Lords Mobile. Gross profit 88.6 130.3 186.1 +43% +110% YoY growth due to the significant increase in revenue. HoH increase benefited from economies o
Slide 17: Strong Cash Position
Strong Cash Position Capital Expenditures Cash & Cash Equivalents (US$ million) (US$ million) 2 250 237.3 1.4 200 184.1 1.1 1 150 100 0 2016* 1H17* 1H16 1H17 Purchase of PP&E Purchase of Intangible Assets • Share buyback: spent US$6.2M to • Low capex repurchase 8.5mn shares in 1H17 ✓ 1H16: 0.6% of t
Slide 18: Dividend
Dividend Dividend Type Dividend per share Total amount Dividend payout ratio Payment Date (HK, cents) (US$, million) (% of net profit) 1st interim dividend 13.0 23.0 30% 2017 Sep. 28, 2017 Special dividend 22.0 38.0 50% Total 35.0 61.0 80% • IGG declared a total dividend of HK 35.0 cents, representi
Slide 19: Preferential Corporate Tax Rate
Preferential Corporate Tax Rate IGG Singapore (Intellectual Property holding company) enjoys preferential tax treatment, IGG Singapore subject to requirements as specified by Singapore Economic Development Board. 2010-2016 Preferential tax rate: 5% 10% 2017-2019 The preferential Preferential tax rat
Slide 20: Global Games Market Trend
Global Games Market Trend • The global games market is expected to hit US$ 108.9bn in 2017 and US$ 128.5bn by 2020. • From 2017 to 2020, the expected CAGR of Mobile, Console and PC games are 12.1%, 2.1% and -1.3% respectively. Global Games Market Overview Global Games Market (by Region) （US$ billion
Slide 21: Prospects
Prospects R&D Plan Operation and Marketing • Focus on quality, innovation and excellence; • Increase market share in the mainstream markets of ➢ Continually striving to optimize and North America, Europe and Asia; refine new products, including casual • New marketing strategies to roll-out: launch c
Slide 22: New Title – Sweet Maker
New Title – Sweet Maker Tile-matching game 21
Slide 23: New Title – Madlands
New Title – Madlands War strategy game with post-apocalyptic theme 22
Slide 24: New Title – Madlands
New Title - Madlands iGG |GOT ~AMES Garage tooom @ Heavy | L 195/300
Slide 25: New Title – Madlands
New Title – Madlands Combat Highlight Cam 24
Slide 26: New Title – Galaxy Online III
New Title – Galaxy Online III Real-time strategy game with space theme 25
Slide 27: New Title – Galaxy Online III
New Title – Galaxy Online III 26
Slide 28: New Title – Galaxy Online III
New Title – Galaxy Online III 27
Slide 29: New Title – Reborn
New Title – Reborn War Strategy Game 28
Slide 30: New Title – Reborn
| = [Lion]Lannister © ‘ [Stag]Stannis)|Baratheon
Slide 31: New Title – Reborn
¥ 1223K ® [Secret] Makes particle positions simulate in worldspace or local space. #F 12010123K ® [World] The Particle System's general parameters are kept inside a special Main module. \ § Pp p Pp ne fhe MAIN NAME MAIN NAME / | SKILL TILE NAME TILE NAME . 7 .T a app SB LV 123 23,456/23,456 - wr = e
Slide 32: New Title – COL III
New Title – COL III 沙盒遊戲 Strategy Game Sequel of COL II 31
Slide 33: New Title – COL III
New Title – COL III 沙盒遊戲 32
Slide 34: New Title – COL III
New Title - COL I iGG |GOT AMES
Slide 35: Thanks!
Thanks! IR Contact • ir@igg.com