Slide 1: Interim Results
Interim Results IGG INC August 2020
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 Financial Review 3 Prospects 2 Interim Results 2
Slide 4: IGG Overview
IGG Overview Interim Results 3
Slide 5: IGG Overview
IGG Overview A leading global developer and publisher of mobile games Global Global Global Global Market R&D Operation Investment • Games in 23 languages • R&D talents & • Operation teams • Strategic investments technical partners located in 15 countries in the mobile internet • Users across 200+ lo
Slide 6: Global Branches
Global Branches In 1H20, the Group has over 1,600 employees, and R&D accounts for over 50% of headcount. Asia revenue % 40% North America 30% revenue % Europe revenue % 24% Asia America Europe & others Singapore Philippines USA Spain Group headquarters; Customer service center IT & localized opera
Slide 7: Global Ranking
Global Ranking Listed among the “Top 52 Publishers” for six consecutive years Interim Results 6
Slide 8: Financial Review
Financial Review Interim Results 7
Slide 9: Revenue & Profit Performance
Revenue & Profit Performance Historical Performance of Revenue (US$ million) 600 388.5 360.3 400 333.8 354.7 312.9 312.3 273.5 196.1 200 112.7 126.0 91.9 103.8 98.7 0 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 (US$ million) Historical Performance of Net Profit 200 132.8 98.4 90
Slide 10: Gross Billing
Gross Billing Monthly Gross Billing of the Group and Hit Titles in 1H20 (US$ million) 80 2020 70 60 50 $57M 40 $48M 30 20 10 0 $9M IGG Lords Mobile Castle Clash & Other games Consol. Castle Clash & Lords avg. monthly Lords Mobile’s monthly gross billing hit a new record high of Other Mobile gross US
Slide 11: Operational Data
Operational Data Lords Mobile Castle Clash Mobile Royale Conquerors • Strategy/RPG Game • Strategy/Tower • Strategy/RPG Game • Strategy Game Defense Game • Launched in Mar. 2016 • Launched in Dec. 2018 • Launched in Jul. 2017 • Launched in Jul. 2013 • Available in 20 • Available in 21 • Available in
Slide 12: New Titles
New Titles Stylish Multiple • Female-oriented dress-up game costumes ending stories • Launched in May 2020 • Available in 3 languages Dress Up! • Registered users: 100k Time • Featured on Google’s Google Princess Play in multiple countries Clothing DIY Character customization • Battle royale shooter
Slide 13: Utility Apps
Utility Apps KeepClean • Cleanup and Speedup • Launched in Nov. 2019 • Registered users: 27mn • Technology-driven and Security customized acceleration app • Highlights: junk clean, speed up, CPU cooler and app Low Space management, etc. consumption saving KeepLock Easy • Applock and privacy guard to
Slide 14: Revenue Distribution
Revenue Distribution IGG revenue by platforms Android iOS Contribution from 60% 35% Android continues to increase Others 5% Lords Mobile revenue by platforms Android iOS Contribution from 36% 59% Android continues to increase Others 5% Note: Data of 1H20 Interim Results 13
Slide 15: 1H20 Financial Analysis
1H20 Financial Analysis (US$ million) 1H19 2H19 1H20 YoY (%) HoH (%) Notes Revenue 354.7 312.9 312.3 -12% - “Lords Mobile” experienced a resurgence with Lords Mobile 282.1 256.9 263.6 -7% +3% monthly gross billing rising to US$54M and hitting a new record high of US$60M in July Castle Clash & Other
Slide 16: Strong Cash Position
Strong Cash Position Capital Expenditures Cash & Cash Equivalents (US$ million) (US$ million) 28.3 400 30 339.9 307.1 300 20 200 10 100 0.8 0 0 1H19 1H20 Dec. 2019 Jun. 2020 Purchase of Intangible Assets Purchase of PP&E • Capex • Dividend payment of US$27.9M and spent 1H19： 6.3% of total assets U
Slide 17: Total Assets
Total Assets Total Assets (US$ million) 700 588.4 600 476.5 500 399.4 400 318.5 300 243.4 220.1 200 100 0 Dec. 2015 Dec. 2016 Dec. 2017 Dec. 2018 Dec. 2019 Jun. 2020 Non-current assets Current assets • As at 30 June 2020, the Group’s total assets amounted to nearly US$600M Current assets of nearly
Slide 18: Dividend
Dividend Dividend per Dividend payout ratio Total amount Dividend type share (% of the corresponding Payment date (HK$, million) (HK, cents) period net profit) 1st interim dividend 25.1 308.8 30% 2020 Special dividend 25.1 308.8 30% Sep. 4, 2020 Total 50.2 617.6 60% • First interim dividend and spec
Slide 19: 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 20: Global Games Market Trend
Global Games Market Trend •The global games market is expected to hit US$159.3 billion in 2020 •Mobile games are expected to grow to US$77.3 billion, 49% of global games market •Console games are expected to grow to US$45.2 billion, 28% of global games market •PC games are expected to grow to US$36.
Slide 21: Prospects
Prospects Interim Results 20
Slide 22: Prospects
Prospects Strive for excellence Strengthen and diversification competitive edge • Continue to refine new • Maintain our competitive edge by products and release a diverse grasping opportunities in the “home- portfolio of games. based” economy • Expand the scale and width of our Strengthen marketing
Slide 23: Thanks
Thanks IR Contact ir@igg.com Interim Results 22