Slide 1: 2014 First Quarterly Results
- ee Es aa a = +H a 7 2014 First Quarterly Resules IGG INC May 2014
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”) which have been prepared by IGG INC (the “Company”) 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
Slide 3: Agenda
Agenda • Company Overview • 2014Q1 Financial Results • Business Review and Prospects
Slide 4: Company Profile
Company Profile • A fast-growing global mobile games developer and operator, founded in 2006, with headquarters in Singapore and regional offices in the US, China, Canada and Philippines; • As at end of Mar. 2014, IGG has been operating about 35 games, among which 80% were developed in-house; • As a
Slide 5: Launching of Major Self-developed Games
Launching of Major Self-developed Games Mobile Games 2006 2007 2008 2009 2010 2011 2012 2013 Browser Games Client-based Game IGG INC 4
Slide 6: Core Competencies
Core Competencies High quality & Market proven games could be launched worldwide Keeping us aligned with Globalized trends in the online gaming Experienced localization organizational industry team and structure, equal international and vibrant operating team corporate culture Cooperating with leadi
Slide 7: Agenda: 2014 Q1 Financial Results
Agenda • Company Overview • 2014 Q1 Financial Results • Business Review and Prospects
Slide 8: 14Q1 Financial Highlights (unaudited)
14Q1 Financial Highlights (unaudited) 13Q1 14Q1 Change 13Q4 14Q1 Change Revenue USD million 14.4 44.1 206% 36.7 44.1 20% Gross profit USD million 11.1 32.2 190% 27.0 32.2 19% Gross profit margin 77% 73% -4ppt 74% 73% -1ppt Adjusted net income* USD million 4.7 13.8 194% 9.7 13.8 42% Adjusted net inco
Slide 9: Revenue Growth Momentum
Revenue Growth Momentum 50 （USD million） 45 40 $ 44.1m 35 $ 36.7m 30 25 20 $ 22.5m 15 10 $ 14.4m $ 14.4m 5 0 13 Q1 13 Q2 13 Q3 13 Q4 14 Q1 • 14Q1 revenue growth reached 206.3% and 20.2%, comparing with 13Q1 and 13Q4 respectively; • The increase in revenue was mainly attributable to the significant i
Slide 10: Net Profit Growth Momentum
Net Profit Growth Momentum 16 14 （USD million） 12 $ 13.6m 10 $ 9.6m 8 6 4 $ 4.5m 2 0 -2 13 Q1 13 Q2 13 Q3 13 Q4 14 Q1 -4 $ -3.3m -6 $ -3.9m • The 14Q1 net profit increased 41.7% from $9.6m of 13Q4; • The net profit increase surpassed the increase of revenue, mainly due to the economic scale, which d
Slide 11: Revenue Growth by Business Segment
Revenue Growth by Business Segment 14Q1 vs.13Q4 •Mobile game revenue increased 32% 32% in 14Q1 comparing with 13Q4, within which Castle Clash increased 34%; •Since most of company resources has been put into mobile game -13% segment starting from mid 2012, Looking forward, revenue amount and percent
Slide 12: 14Q1 Revenue Breakdown by Segment
14Q1 Revenue Breakdown by Segment By segment* Games operated by us: • refers to the games, both in-house developed and licensed from third Joint parties, solely operated by the Group; operation • the revenue recognized from this segment 1% is approximately equal to the game players’ payment. Joint o
Slide 13: 14Q1 Revenue Breakdown by Game
14Q1 Revenue Breakdown by Game Mobile Game title Revenue % of By game type* self-operated games Castle Clash 67% Texas Poker Deluxe 5% Client-based games 3% Browser Slot Machines 4% games Clash of Lords(I&II) 3% 17% Browser game title Revenue % of self-operated games Galaxy Online II 7% Mobile games
Slide 14: 14Q1 Revenue Breakdown by Region
14Q1 Revenue Breakdown by Region By continent • The revenue contribution of the Others group comes from over 180 5% countries and regions worldwide； Asia Europe 30% • Except for the US, revenue from 25% other countries and regions is relatively even； • CC on Tencent platform is expected to contribut
Slide 15: Expenses Breakdown and Profitability
Expenses Breakdown and Profitability 13Q1 13FY 14Q1 Revenue (USD million) 14.4 88.0 44.1 Gross profit margin 77% 75% 73% Selling & distribution exp./ Revenue 22% 26% 25% Administrative exp./ Revenue 9% 12% 7% R&D costs/Revenue 13% 11% 8% Adjusted net income 33% 25% 31% margin * * Adjusted net income
Slide 16: Tax Rate
Tax Rate • More than 95% of our total revenue will be recorded in IGG Singapore in The Preferential corporate tax rate 2014; IGG is entitled to from 2014 to 2016 • The prevailing corporate tax rate of Singapore is 17%. From 2010- 2016, IGG Singapore is entitled to a 12.5% preferential tax rate of 5%
Slide 17: Agenda: Business Review and Prospects
Agenda • Company Overview • 2014 Q1 Financial Results • Business Review and Prospects
Slide 18: Mobile Games
Mobile Games Quarterly percentage change of mobile games revenue/total revenue from 13Q1 to 14Q1* •More than 90% R&D force has been shifted to mobile games 80% development in 14Q1; 14Q1 74% •Revenue percentage of mobile Client-based 13Q4 games surged to 80% * in 14Q1 56% Browser from 13% in 13Q1; 13
Slide 19: Castle Clash (CC)
Castle Clash (CC) As shown in the Google Play top Grossing grossing list of APP Annie on 31 March rank 2014, CC ranked top ten in 34 countries and top five in 18. As at the end of Mar., 2014, CC has Language been launched worldwide in 13 versions language versions across Android, iOS and Amazon plat
Slide 20: Human Resources
Human Resources Breakdown by function Breakdown by location Management Canada 1% Global 3% Finance& Philippines support Singapore Admin. 7% 25% 6% 6% US Operation & 3% Customer service 10% R&D 49% China IT support 83% 8% • As at 31 Mar. 2014, the Group had 671 employees including executive directors
Slide 21: The Market
The Market Revenue of global online gaming mkt Revenue of Chinese online gaming mkt （USD 100million） （RMB 100million） 2016E 239.4 ↑21% 2016E 518.6 ↑44% 2015E 198.0 ↑25% 2015E 361.0 ↑51% 2014E 158.7 2014E 239.4 •The number of global smartphone users will be around 1.75 billion in 2014; • The number o
Slide 22: 2014 Prospects
2014 Prospects We will go on to sharpen our First-class and diversified abilities in game design, art games will continue to be style, localization, etc. delivered to the overseas About 15-20 in-house market and operated by our developed games and 20 sophisticated operating licensed games will be Ne
Slide 23: Thank you!
Thank you! IR contact • ir@igg.com • yolanda.gao@igg.com