Slide 1: Interim Results
Interim Results IGG Inc August 2018 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 • IGG Overview • 2018 Interim Financial Review • Prospects Innovators at Work • Gamers at Heart
Slide 4: IGG Overview
IGG Overview Innovators at Work • Gamers at Heart
Slide 5: IGG Overview
IGG Overview A leading global developer and publisher of mobile games • Games in 21 languages Hit Titles Global • Users across 200+ countries & regions Market • Registered users: 550mn+ • MAU: 22mn+ ● ● ● ● ● ● • R&D talents located in ~10 Global ● countries & regions ● ● • 15 global R&D teams R&D ●
Slide 6: Global Branches
Global Branches • Establishing new branches in Indonesia and Brazil in 1H18, and continuing to expand R&D and operation teams globally. • The Group has 1,000+ employees. R&D, Operation and I.T., and Supporting talents account for 55%, 34% and 11% of total employment, respectively. • Long-term relati
Slide 7: Global Ranking
Global Ranking Top 3 Chinese Mobile Game Publishers with No. 1 in war strategy games worldwide in terms of overseas game revenue revenue for 12 consecutive months “2017 Best Overseas Mobile Game Publisher” “Android Excellence Game of 2017” “Leading Overseas Game Developer” Featured on "Game of the D
Slide 8: 1H18 Financial Review
1H18 Financial Review Innovators at Work • Gamers at Heart
Slide 9: 2018 Interim Results Record High
2018 Interim Results Record High 1H18 Revenue: US$388M 1H18 Net Profit: US$98M (US$ million) 500 (US$ million) 400 388.5 388.5 120 333.8 98.4 98.4 300 273.5 76.2 78.9 80 200 40 100 0 0 1H17 1H18 2H17 1H18 1H17 1H18 2H17 1H18 Historical Performance of Revenue and Net Profit (US$ million) 400 300 Reve
Slide 10: Gross Billing
Gross Billing 1H18 Monthly Gross Billing The Group: • Monthly gross billing (US$ million) exceeded US$70M. 80 • 1H18 gross billing achieved US$422M. 70 60 Lords Mobile： 50 • Avg. monthly gross billing 40 surpassed US$56M. • Monthly gross billing of 30 nearly US$59M in Mar. 20 10 Castle Clash: 0 • Av
Slide 11: Operational Data
Operational Data Conquerors: Clash Lords Mobile Castle Clash Clash of Lords II of Crowns RTS/RPG Game Strategy Game Strategy Game Strategy Game • Launched in March 2016 • Launched in July 2013 • Launched in Dec. 2013 • Launched in July 2017 • Available in 18 languages • Available in 16 languages • A
Slide 12: Lords Mobile
Lords Mobile Registered Users No. 1 War Strategy Game Worldwide 130mn Firmly establishing it as the top-grossing war strategy game worldwide for 12 months running 82mn No. 9 Global Game Revenue Leap into the world’s top 10 grossing mobile games on iOS & Google Play Dec-17 Jun-18 16th 20th Jun. 2018
Slide 13: Marketing Initiatives
Marketing Initiatives Expand IGG’s scale and marketing initiatives globally Europe Asia France Asia Tournament China Indonesia Cooperation with E-sports events: Lords Marketing cooperation French tennis star Gaël Exhibiting at China Joy 2018 Tournament in Asia with shared travel Monfils—a big Lords
Slide 14: Revenue Distribution
Revenue Distribution IGG Lords Mobile Well balanced Android iOS iOS By Platforms Android contribution increased Android revenue contribution from iOS and 53% 43% 48% 48% Android Others 4% Others 4% Europe • Steady growth across Europe Revenue contribution 22% regions 18% Asia from N.A and Europe By
Slide 15: 1H18 Financial Analysis
1H18 Financial Analysis (US$ million) 1H17 2H17 1H18 YoY (%) Remarks Revenue 273.5 333.8 388.5 +42% Revenue increase from Lords Mobile Lords Mobile 189.5 248.3 311.2 +64% Castle Clash 61.6 62.6 57.1 -7% Gross profit 186.1 228.5 273.1 +47% Revenue increase from Lords Mobile Addition of several new ch
Slide 16: Strong Cash Position
Strong Cash Position Capital Expenditures Cash & Cash Equivalents (US$ million) (US$ million) 3 350 282.5 300 1.9 250 221.9 2 200 1.1 150 1 100 50 0 0 1H17 1H18 31 Dec. 2017 30 Jun. 2018 Purchase of Intangible Assets Purchase of PP&E • Dividend payment of US$23.8M, and • Low capex the amount of US$3
Slide 17: Dividend
Dividend Dividend per share Total amount Dividend Dividend Type Payment Date (HK, cents) (HK$, million) payout ratio 2018 1st interim dividend 17.7 230 30% Sep. 28, 2018 • The 1st interim dividend plus share buy-back accounted for 68% of interim net profit. • The future dividend payout ratio will be
Slide 18: 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 19: Global Games Market Trend
Global Games Market Trend • The global games market is expected to hit US$137.9 billion in 2018 and US$180.1 billion by 2022. • By 2021, Mobile and PC games are expected to grow to US$106.3 billion and US$34 billion, respectively. Global Games Market Overview Global Games Market (by Region) （ US$ bi
Slide 20: Prospects
Prospects Innovators at Work • Gamers at Heart
Slide 21: Prospects
Prospects • Continue to focus on quality, innovation, and excellence ➢ Recruit global R&D talents ✓ The“G-Star”incubation program, an annual summer internship event, was initiated this year to recruit interns globally, with the aim of promoting gaming culture and creativity, and cultivating new tale
Slide 22: New Title – Project GM
New Title – Project GM Real-time strategy game with space theme Innovators at Work • 與時俱進 Gamers•at 不忘初心 Heart 21
Slide 23: New Title – Project GM
New Title – Project GM 策略+塔防遊戲 沙盒遊戲 基於《城堡爭霸》的延伸與創新 Innovators at Work • 與時俱進 Gamers•at 不忘初心 Heart 22
Slide 24: New Title – Project GM
New Title – Project GM Innovators at Work • 與時俱進 Gamers•at 不忘初心 Heart 23
Slide 25: SOK War Strategy Game
New Title – Project SOK War Strategy Game Innovators at Work • 與時俱進 Gamers•at 不忘初心 Heart 24
Slide 26: New Title – Project SOK
New Title – Project SOK Innovators at Work • 與時俱進 Gamers•at 不忘初心 Heart 25
Slide 27: New Title – Project SOK
New Title – Project SOK Innovators at Work • Gamers at Heart 26
Slide 28: COG Strategy+Tower Defense Game
New Title – Project COG Strategy+Tower Defense Game 星戰題材即時策略遊戲 Innovators at Work • 與時俱進 Gamers•at 不忘初心 Heart 27
Slide 29: New Title – Project COG
New Title – Project COG Innovators at Work • 與時俱進 Gamers•at 不忘初心 Heart 28
Slide 30: New Title – Project COG
New Title – Project COG Innovators at Work • 與時俱進 Gamers•at 不忘初心 Heart 29
Slide 31: LR Strategy Game
New Title – Project LR Strategy Game Innovators at Work • 與時俱進 Gamers•at 不忘初心 Heart 30
Slide 32: New Title – Project LR
New Title – Project LR Innovators at Work • 與時俱進 Gamers•at 不忘初心 Heart 31
Slide 33: New Title – Project LR
New Title – Project LR Innovators at Work • 與時俱進 Gamers•at 不忘初心 Heart 32
Slide 34: CL Sandbox Game
New Title – Project CL Sandbox Game Innovators at Work • 與時俱進 Gamers•at 不忘初心 Heart 33
Slide 35: New Title – Project CL
New Title – Project CL Innovators at Work • 與時俱進 Gamers•at 不忘初心 Heart 34
Slide 36: New Title – Project CL
New Title – Project CL Innovators at Work • 與時俱進 Gamers•at 不忘初心 Heart 35
Slide 37: Thanks!
Thanks! IR Contact ir@igg.com Innovators at Work • 與時俱進 Gamers•at 不忘初心 Heart