Slide 1: 2019 Interim Results
2019 Interim Results IGG INC August 2019 1
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 1 IGG Overview 2 2019 Interim Financial Review 3 Prospects 2019 Interim Results Innovators at Work • Gamers at Heart
Slide 4: IGG Overview
◆ IGG概覽 ◆ 2019中期業績回顧 ◆ 展望 IGG Overview 2019 Interim Results Innovators at Work • Gamers at Heart
Slide 5: IGG Overview
IGG Overview A leading global developer and publisher of mobile games • Games in 23 languages Hit Titles Global • Users across 200+ countries & regions Market • Registered users: 700mn • MAU: 24mn + • R&D talents and technical Global partners located in over 20 countries & regions R&D • More than 50
Slide 6: Global Branches
Global Branches • In 1H19, IGG set up subsidiaries in Brazil, Turkey, Italy and Spain, to strengthen its regional foothold in South America and Western Europe. • IGG continues to improve its competitiveness by recruiting talents on R&D and operation. The Group has over 1,600 employees, and R&D accou
Slide 7: Global Ranking
Global Ranking Ranked 22nd on “Top 52 Publishers of 2018” No. 1 war strategy games worldwide in terms of gross billing for two consecutive years Ranked 16th on “Top 50 Chinese Global Brand Builders 2019” Top 3 Chinese mobile game with overseas revenue “2019 MAMA Awards – Marketing Diversity” “Golden
Slide 8: 1H19 Business Review
1H19 Business Review 2019 Interim Results Innovators at Work • Gamers at Heart
Slide 9: 1H19 Financial Performance
1H19 Financial Performance Historical Performance of Revenue and Net Profit (US$ million) 400 200 0 1H16 2H16 1H17 2H17 1H18 2H18 1H19 Revenue Net Profit 1H19: • Revenue from the two long-lasting titles – Lords Mobile and Castle Clash naturally dropped. After years of meteoric growth since launch, r
Slide 10: Gross Billing
Gross Billing 1H19 Avg. Monthly Gross $65M $52M $8M $5M Billing (US$ million) 70 Monthly Gross Billing 60 50 40 30 20 10 0 Lords Mobile Castle Clash Others 2019 Interim Results Innovators at Work • Gamers at Heart 10
Slide 11: Operational Data
Operational Data Conquerors: Lords Mobile Castle Clash Mobile Royale Clash of Crowns RTS/RPG Game Strategy Game Strategy Game Strategy Game • Launched in Mar. 2016 • Launched in Jul. 2013 • Launched in Dec. 2018 • Launched in Jul. 2017 • Available in 20 • Available in 16 • Available in 21 • Availabl
Slide 12: New Titles
New Titles Brave Conquest Simulation game Building • Available in 14 languages RPG Simulation • Earned several recommendations on Apple’s App Store Battle Formations • Ranked amongst top 10 most downloaded strategy games in USA Craft Legend Sandbox game Sandbox • Available in 14 languages RPG • Feat
Slide 13: Revenue Distribution
Revenue Distribution iOS Android contribution iOS Android contribution By Platforms Android 39% increased in 1H19 Android 43% increased in 1H19 58% compared to 2H18. 54% compared to 2H18. Others 3% Others 3% Europe • Revenue distribution Europe 25% Asia 21% Steady growth in across regions Asia By Re
Slide 14: 1H19 Financial Analysis
1H19 Financial Analysis (US$ million) 1H18 2H18 1H19 YoY (%) Notes Natural drop of Lords Mobile and Castle Clash. Revenue 388.5 360.3 354.7 -9% After years of meteoric growth since launch, revenue for these two flagship titles started to stabilize. Gross Profit 273.1 250.5 246.2 -10% Increase in lab
Slide 15: Strong Cash Position
Strong Cash Position Capital Expenditures Cash & Cash Equivalents (US$ million) (US$ million) 300 287.5 270.4 40 30 28.3 200 20 100 10 1.9 0 0 1H18 1H19 31-Dec-18 30-Jun-19 Purchase of Intangible Assets Purchase of PP&E Capex In 1H19 • 1H18: 0.5% of total asset • Net cash flows from operating activi
Slide 16: Dividend
Dividend Dividend payout Dividend per ratio Total Amount Dividend Type share (% of the Payment Date (HK$, million) (HK, cents) corresponding period net profit) 1st interim 2019 dividend 13.0 166 30% Sep. 4, 2019 • First interim dividend declared plus share buy- back accounted for 39% of 1H19 net pro
Slide 17: Preferential Corporate Tax Rate
Preferential Corporate Tax Rate ➢ IGG Singapore (Intellectual Property holding company) enjoys preferential tax treatment, subject to requirements as specified by Singapore Economic Development Board. ➢ The prevailing corporate tax rate: 17% ➢ The preferential corporate tax rate for IGG Singapore: 1
Slide 18: Global Games Market Trend
Global Games Market Trend •Global games market is expected to hit US$152.1 billion in 2019 and US$196.0 billion in 2022. •Both mobile games and PC games are expected to grow to US$96.0 billion and US$39.2 billion. Global Games Market Overview Global Games Market (by Regions) （US$ billion） 250 $196.0
Slide 19: Prospects
Prospects 2019 Interim Results Innovators at Work • Gamers at Heart
Slide 20: Prospects
Prospects R&D Plans Operation and Marketing ➢ Continue to focus on quality, ➢ Further expand IGG’s scale innovation and excellence and marketing initiatives across • To refine new products of varied the globe genres, including a space war ➢ Tap into diversified promotion strategy game, a nautical-th
Slide 21: New Title – Project GM
New Title – Project GM Real-time space war strategy game 2019 Interim Results Innovators at Work • Gamers at Heart 21
Slide 22: New Title – Project GM
New Title – Project GM 2019 Interim Results Innovators at Work • Gamers at Heart 22
Slide 23: New Title – Project GM
New Title – Project GM 2019 Interim Results Innovators at Work • Gamers at Heart 23
Slide 24: New Title – Project Voyage
New Title – Project Voyage MMORPG game with nautical theme 2019 Interim Results Innovators at Work • Gamers at Heart 24
Slide 25: New Title – Project Voyage
New Title – Project Voyage 2019 Interim Results Innovators at Work • Gamers at Heart 25
Slide 26: New Title – Project Voyage
New Title – Project Voyage 2019 Interim Results Innovators at Work • Gamers at Heart 26
Slide 27: New Title – Project Omega
New Title – Project Omega Shooting game 2019 Interim Results Innovators at Work • Gamers at Heart 27
Slide 28: New Title – Project Omega
New Title – Project Omega 射擊遊戲 2019 Interim Results Innovators at Work • Gamers at Heart 28
Slide 29: New Title – Project Omega
New Title – Project Omega 2019 Interim Results Innovators at Work • Gamers at Heart 29
Slide 30: Thank you!
Thank you! IR Contact ir@igg.com 2019 Interim Results Innovators at Work • Gamers at Heart