SEA Holdings Ltd. · HKEX:251

SEA — Q4 2017 Earnings Presentation

16 slides from SEA's earnings presentation, Feb 27, 2018

  1. Slide 1: Fourth Quarter & Full Year 2017 Results

    Fourth Quarter & Full Year 2017 Results February 27, 2018 (U.S. Eastern Time) February 28, 2018 (Singapore / Hong Kong Time)

  2. Slide 2: Disclaimer

    Disclaimer This presentation by Sea Limited (“Sea”) contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expec

  3. Slide 3: Expanding Leadership on Organic Growth

    Expanding Leadership on Organic Growth 73% YoY Growth in Total Adjusted 59% YoY Growth in DE Adjusted Revenue 2 Revenue1 US$ Millions US$ Millions 134.7 141.9 116.9 DE Adjusted Revenue EC Adjusted Revenue 102.4 89.1 DFS Revenue Other Services Revenue 164.5 9.2 4.1 4Q 1Q 2Q 3Q 4Q 9.3 2016 2017 2017 2

  4. Slide 4: Digital Entertainment: Strong Growth + Launch of Self-Developed Game (Free Fire)

    Digital Entertainment: Strong Growth + Launch of Self-Developed Game (Free Fire) Garena Garena Quarterly Active Users Quarterly Paying Users Millions Millions 87.8 7.2 6.6 6.5 69.0 6.1 64.2 56.4 5.3 50.4 4Q 1Q 2Q 3Q 4Q 4Q 1Q 2Q 3Q 4Q 2016 2017 2017 2017 2017 2016 2017 2017 2017 2017 3

  5. Slide 5: E-Commerce: Robust Growth Across All Markets

    E-Commerce: Robust Growth Across All Markets Shopee 4Q 2017 Orders by Market (%) Gross Orders Millions Singapore and The Philippines Malaysia 6% - 8% 6% - 8% 98.3 Thailand 7% - 9% 65.9 Indonesia 40% - 42% 45.5 Vietnam 11% - 13% 35.1 28.6 Taiwan 25% - 27% 4Q 1Q 2Q 3Q 4Q 2016 2017 2017 2017 2017 4

  6. Slide 6: Digital Financial Services: Further Strengthening of Payment Infrastructure

    Digital Financial Services: Further Strengthening of Payment Infrastructure AirPay Growing Synergies Across Businesses Total Gross Transaction Value US$ Millions 1,027.5 Digital Entertainment 448.2 322.0 348.0 250.2 Digital Financial E-commerce Services 4Q 1Q 2Q 3Q 4Q 2016 2017 2017 2017 2017 5

  7. Slide 7: Non-GAAP Revenue: Total Adjusted Revenue

    Non-GAAP Revenue Total Adjusted Revenue US$ Millions US$ Millions 553.6 23.7 16.3 17.7 11.8 348.9 5.9 164.5 0.0 9.2 4.1 9.3 495.9 95.2 4.3 1.7 331.3 0.0 141.9 89.1 FY 2016 FY 2017 4Q 2016 4Q 2017 DE Adjusted Revenue EC Adjusted Revenue DFS Revenue Other Services Revenue Note: Financial figures are u

  8. Slide 8: Reconciliation between GAAP and non-GAAP Revenue

    Reconciliation between GAAP and non-GAAP Revenue US$ thousands 4Q 2016 4Q 2017 FY 2016 FY 2017 Digital Entertainment Revenue 82,407 106,323 327,985 365,167 Change in deferred revenue 6,725 35,560 3,267 130,711 Digital Entertainment Adjusted Revenue 89,132 141,883 331,252 495,878 E-Commerce Revenue -

  9. Slide 9: Non-GAAP EBITDA: Total Adjusted EBITDA

    Non-GAAP EBITDA Total Adjusted EBITDA US$ Millions US$ Millions 174.9 16.6 85.5 52.6 (59.2) (175.4) (169.7) (9.2) (56.0) (2.5) (33.7) (444.3) (1.7) (9.3) (7.6) (130.1) (7.3) (2.9) (140.2) (2.6) (36.7) (18.2) (332.1) (7.9) FY 2016 FY 2017 4Q 2016 4Q 2017 DE Adjusted EBITDA EC Adjusted EBITDA DFS EBIT

  10. Slide 10: Cost and Expense Trends

    Cost and Expense Trends Cost of Revenue Sales & Marketing US$ Millions US$ Millions 101.1 156.4 63.2 61.8 4Q 2016 4Q 2017 4Q 2016 4Q 2017 General & Administrative Expenses R&D Expenses US$ Millions 51.8 US$ Millions 8.7 41.3 5.8 4Q 2016 4Q 2017 4Q 2016 4Q 2017 Note: Financial figures are unaudited 9

  11. Slide 11: Net Loss and Adjusted Net Loss

    Net Loss and Adjusted Net Loss Net Loss Adjusted Net Loss1 US$ Millions US$ Millions (62.0) (72.2) (251.6) (263.1) 4Q 2016 4Q 2017 4Q 2016 4Q 2017 Note: Financial figures are unaudited. Please refer to the appendix for details on reconciliation between GAAP and non-GAAP figures. 1. Excludes share-ba

  12. Slide 12: Cash and Cash Equivalents

    Cash and Cash Equivalents Cash and Cash Equivalents US$ Millions 1347.4 170.1 86.0 116.2 2014 2015 2016 2017 Note: Financial figure for the full year of 2017 is unaudited 11

  13. Slide 13: Full Year 2018 Guidance

    Full Year 2018 Guidance Guidance Total Adjusted Revenue US$730 million to US$770 million E-Commerce GMV US$7.5 billion to US$8.0 billion 12

  14. Slide 14: Appendix

    Garena Shopee AirPay APPENDIX

  15. Slide 15: Reconciliation between GAAP and non-GAAP EBITDA

    Reconciliation between GAAP and non-GAAP EBITDA US$ thousands 4Q 2016 4Q 2017 FY 2016 FY 2017 Digital Entertainment Operating income / (loss) 1,780 18,102 45,525 45,637 Net effect of change in deferred revenue & related cost 6,724 26,724 6,875 100,678 Depreciation and amortization 8,122 7,781 33,092

  16. Slide 16: Reconciliation between GAAP and non-GAAP Net Loss

    Reconciliation between GAAP and non-GAAP Net Loss US$ thousands 4Q 2016 4Q 2017 FY 2016 FY 2017 Group Net loss (72,236) (263,140) (224,955) (561,166) Share-based compensation 10,255 11,577 28,841 28,636 Adjusted Net Loss (61,981) (251,563) (196,114) (532,530) Note: Financial figures are unaudited 15

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