Slide 1: Corporate Presentation: FY2023 Results Presentation
CORPORATE PRESENTATION October 2023 FY2023 RESULTS PRESENTATION WINKING STUDIOS LIMITED February 2024
Slide 2: Disclaimer
Disclaimer Winking Studios Limited (the “Company”) was listed on Catalist of the SGX-ST on 20 November 2023. The initial public offering of the Company was sponsored by PrimePartners Corporate Finance Pte. Ltd. (the “Sponsor"). This presentation is prepared for information purposes only, without reg
Slide 3: Agenda
1. 2023 Highlights 2. Industry Outlook Agenda 3. Future Plans / Corporate Update
Slide 4: 2023 Highlights
2023 Highlights
Slide 5: 2023 Highlights
2023 Highlights Rewarding Public Listing Strong Financials Gaming growth Expansion Plans Shareholders • Successful listing • Strong top and • Gaming industry • Capture market • 1st dividend post- on SGX Catalist bottom-line continues to grow opportunities in listing on 20 Nov 2023 growth in 1st • Ri
Slide 6: Strong YoY Growth
Strong YoY Growth Revenue Gross Profit/Gross Margin 29.3 15 31.9% 35 24.5 30 26.3% US$ million 9.3 25 US$ million 10 20 6.4 15 5 10 5 0 0 FY2022 FY2023 FY2022 FY2033 Gross Profit Gross Margin Adjusted EBITDA1 Net Profit US$ million US$ million 5.3 1.8 2.5 1.0 FY2022 FY2023 FY2022 FY2023 1 After adju
Slide 7: Revenue Breakdown (by Business Segment)
Revenue Breakdown (by Business Segment) • Art Outsourcing remained largest biggest segment • Game Development doubled revenue YoY to US$5.0 million (FY2022: US$2.2 million) 0.5% 1.0% 9.1% 17.1% Art Outsourcing FY2023 Game Development FY2022 Global Publishing & Others 82.4% 89.9%
Slide 8: Revenue Breakdown (by Geographical Area)
Revenue Breakdown (by Geographical Area) • Mainland China and Hong Kong remained largest revenue contributor by region • Higher contribution from the US market due to an increase in new contracts 5.4% 3.8% 1 9.7% PRC and Hong Kong 16.8% Taiwan 2 40.9% Korea 19.6% FY2023 FY2022 51.6% United States 18
Slide 9: Income Statement
Income Statement • Revenue growth of 19.5% driven by: US$’000 FY2023 FY2022 % Change - Increase in Art Outsourcing revenue Revenue 29,281 24,498 19.5 arising from new contracts with customers from US and South Korea - Increase in Game Development revenue Gross Profit 9,334 6,448 44.8 due to expansio
Slide 10: Alternative Performance Measures
Alternative Performance Measures US$’000 FY2023 FY2022 % Change • Adjusted EBITDA after one-off IPO-related expenses grew 2x to US$5.3 million from US$2.5 million in FY2022 Net Profit 1,780 1,037 71.6 • Adjusted EBITDA margin grew 7.8 ppt to Alternative Performance Measures Interest Expenses 89 60 4
Slide 11: Balance Sheet
Balance Sheet • Strong cash position As at As at US$’000 % Change Increase in cash and cash equivalents of 31 Dec 2023 31 Dec 2022 171.1%, mainly due to IPO proceeds Current Assets 23,768 12,736 86.6 • Increase in trade and other receivables, Cash and cash equivalents 16,423 6,057 171.1 in line with
Slide 12: Cash Flow and Cash Position
Cash Flow and Cash Position • Strong operating cash flow growth of US$’000 FY2023 FY2022 % Change 75.3%, due to increase in profitability and better working capital management Net cash generated from operating activities 3,469 1,979 75.3% • Net cash used in investing activities of Net cash (used in)
Slide 13: Dividend
Dividend Dividend Special Dividend Type Cash Dividend Amount Per Share SGD0.005 Tax Rate Tax-Exempt
Slide 14: Industry Outlook
Industry Outlook WINKING.
Slide 15: Global Gaming Market Overview
Global Gaming Market Overview Global Gaming Industry Market Size by Revenue US$’ billions 2017-2022 2022-2027E 400 CAGR 6.5% 8.9% Projected US$317.6B revenue by 2027 Key Drivers: 300 • Projected improvement of gaming hardware supplies 221.7 207.0 • Shorter development cycles for new game launches 20
Slide 16: Global Gaming Market Overview: Number of Gamers
Global Gaming Market Overview Number of Gamers Globally 2017-2022 2022-2027E No. of people (billions) 4.4 Projected number of CAGR 7.7% 6.4% gamers by 2027 5 billion 4.1 3.9 4 3.7 3.4 Key Drivers: 3.2 3.0 • Affordability of gaming as a pastime due 3 2.7 2.4 2.5 to the free-to-play model 2.2 2 • Incr
Slide 17: Game Development Market Overview
Game Development Market Overview Global Gaming Development Expenditure by Type US$’ billions CAGR 2017-2022 2022-2027E Projected expenditure 60 Outsourcing Team 10.4% 11.8% US$50.8 by 2027 In-house Team 4.9% 7.8% billion 15.8 Highlights: 40 33.1 35.5 • Global game development expenditure is 9.1 10.0
Slide 18: Game Art Outsourcing Market Overview
Game Art Outsourcing Market Overview Global Game Art Outsourcing Market Share by Revenue US$’ billions 2017-2022 2022-2027E 8 CAGR 17.4% 13.4% US$6.3 Projected revenue billion by 2027 6 Key Drivers: 4 3.8 • Increasing expenditure on game art resulting 3.4 from gamers’ higher requirements for game gr
Slide 19: Game Art Outsourcing Market Overview: Top Players
Game Art Outsourcing Market Overview Top 10 Players in the Global Game Art Outsourcing Market, 2022 Trends & 92.7% 100% Competitive Landscape • Increasing focus on quality of graphics and gameplay experience • More cross-platform games being developed to maximise outreach to players • Game lifecycle
Slide 20: Future Plans
Future Plans Corporate Update
Slide 21: Business Strategies and Future Plans
Business Strategies and Future Plans Enhance our presence globally to capture market opportunities Pursue strategic acquisitions, joint ventures and strategic alliances to expand our scale and capabilities Monitor and explore the use of AI and/or invest in AI-related companies or businesses to impro
Slide 22: Proposed Acquisition of On Point Creative
Proposed Acquisition of On Point Creative • 1st Proposed Acquisition Post-Listing Rationale of In line with strategy to pursue acquisitions to boost sales, capabilities and Acquisition market presence globally On Point Creative Co., Ltd. Target Company • Mainly engaged in the provision of art outsou
Slide 23: Use of IPO Proceeds
Use of IPO Proceeds Amount Amount Balance as at Item allocated utilised 23 Feb 2024 (S$’ 000) (S$’ 000) (S$’ 000) Expansion of operations globally, including establishing subsidiaries and offices and enhancing existing office and 1,000 - 1,000 supporting infrastructure Acquisitions, joint ventures a
Slide 24: Thank You
Thank You Winking Studios Limited https://www.winkingworks.com/en-US/