Slide 1: 2014 Interim Results
I i Ss El 2014 linteriin Resluts IGG INC Aug. 2014 mauar wake’ entre
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 • 2014 Interim 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 June 2014, IGG has been operating about 40 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
Agenda • Company Overview • 2014 Interim Financial Results • Business Review and Prospects
Slide 8: 14H1 Financial Highlights (unaudited)
14H1 Financial Highlights (unaudited) 13H1 14H1 Change 13H2 14H1 Change Revenue USD million 28.8 91.9 219% 59.2 91.9 55% Gross profit USD million 21.9 66.6 204% 43.8 66.6 52% Gross profit margin 76% 73% -3ppt 74% 73% -1ppt Adjusted net income* USD million 7.2 33.7 368% 15.0 33.7 125% Adjusted net in
Slide 9: 14H1 Revenue Growth
14H1 Revenue Growth (USD million) The increase was primarily due to： •An increase in the overseas revenue generated from the hit title “Castle Clash” launched in July 2013; 219% •An increase in revenue generated from “Clash of Lords II”, especially for the English version launched 91.9 in March 2014
Slide 10: Quarterly Revenue Growth
Quarterly Revenue Growth 60 (USD million) 50 $ 47.8 $ 44.1 40 $ 36.7 14Q2 V.S. 14Q1 The growth rate for mobile 30 game segment achieved 14.1% 20 $ 22.5 14Q2 V.S. 14Q1 The revenue increased 8.4% 10 0 13 Q3 13 Q4 14 Q1 14 Q2 IGG INC 9
Slide 11: 14H1 Adjusted Net Income Growth
14H1 Adjusted Net Income* Growth (USD million) The growth rate of adjusted net profit surpassed that of revenue was primarily due to: 368% •The fixed cost percentages of revenue such as admin. exp. and R&D costs both 33.7 witnessed a decrease due to the synergy coming from the considerable revenue g
Slide 12: Quarterly Net Profit Growth
Quarterly Net Profit Growth 25 (USD million) $ 19.3m 20 $ 13.6m 15 $ 9.6m from 13Q3 to 14Q2 10 The compound growth rate of net profit achieved $ 4.5m 62.5% 14Q2 V.S. 14Q1 5 The net profit increased 41.9% 0 13 Q3 13 Q4 14 Q1 14 Q2 IGG INC 11
Slide 13: 14Q2 Revenue Breakdown by Segment
14Q2 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 6% is approximately equal to the game players’ payment. Joint o
Slide 14: 14Q2 Revenue Breakdown by Game
14Q2 Revenue Breakdown by Game % of By game type Mobile game title total revenue Castle Clash 62% Clash of Lords (I&II) 11% Client-based Browser Texas Poker Deluxe 5% games 2% games Slot Machines 3% 15% % of Browser game title total revenue Galaxy Online II 5% Mobile games Wings of Destiny 4% 83% Te
Slide 15: 14Q2 Revenue Breakdown by Region
14Q2 Revenue Breakdown by Region By % of country total revenue Australia 3% By % of country total revenue Others By % of 6% country/region total revenue Germany 7% Asia Mainland China 5% Russia 6% 28% Europe Taiwan 3% France 5% 26% Singapore 2% Great Britain 4% % of By country total revenue North Am
Slide 16: Expenses Breakdown and Profitability
Expenses Breakdown and Profitability 13FY 14Q1 14Q2 Revenue (USD million) 88.0 44.1 47.8 Gross profit margin 75% 73% 72% Selling & distribution exp./ Revenue 26% 25% 17% Administrative exp./ Revenue 12% 7% 7% R&D costs/Revenue 11% 8% 8% Adjusted net income 25% 31% 41% margin * * Adjusted net income
Slide 17: Tax Rate
Tax Rate IGG Singapore The Preferential corporate tax rate • More than 95% of our total 17% revenue was booked through IGG 5% Singapore in 14H1, and this percentage is expected to be stable in the foreseeable future; • From 2010-2016, IGG Singapore is entitled to a preferential tax rate of 5%, subje
Slide 18: Dividend
Dividend Total Share Dividend Dividend type Payment Date amount numbers* per share （USD million） （million） （HK cents） 2013 final dividend May 29, 2014 2.88 1,359 1.6 2014 interim dividend Sep. 5, 2014 9.84 1,361 5.6 * The outstanding ordinary share numbers as at the end of the corresponding report p
Slide 19: Agenda
Agenda • Company Overview • 2014 Interim Financial Results • Business Review and Prospects
Slide 20: Mobile Games
Mobile Games Quarterly percentage change of mobile games revenue/total revenue • More than 90% R&D force has from 13Q3 to 14Q2 been shifted to mobile games development; 83% 14Q2 • The revenue percentage of Browser & mobile games is expected to 79% client-based further increase along with the 14Q1 la
Slide 21: Castle Clash (CC)
Castle Clash (CC) As shown in the Google Play top grossing list of AppAnnie on 30 June 2014, Grossing rank CC ranked top ten in 33 countries and top five in 17. As at the end of June, 2014, CC has been launched worldwide in 13 languages across Language Android, iOS and Amazon platforms. versions The
Slide 22: The Revenue Recognition of CC Tencent
The Revenue Recognition of CC Tencent Note The prevailing VAT rate for Gross billings × （1-VAT rate） = A R&D and tech. service industry is 6% in mainland China For instance, the prevailing (1-channel cost A × = B channel cost rate of Apple App rate) Store is 30% worldwide Revenue share B × = C C is
Slide 23: Human Resources
Human Resources Breakdown by function Breakdown by location Management Global 3% Finance& Canada 2% Philippines support 8% 22% Admin. Singapore 6% 6% US 3% Operation & Customer service 17% R&D 46% China 81% IT support 7% • As at 30 June 2014, the Group had 754 employees, the turnover rate of 14H1 wa
Slide 24: Global Games Market
Global Games Market 2014 •The revenue of global Mobile games market The compound revenue growth rate games market is expected of global games market will be 8.1% to be USD 81.4 bn.; from 2014 to 2017, the number for •Mobile games revenue will mobile games market will be 17.5%； arrive at USD 21.8 bn
Slide 25: 14H2 Prospect-Major New Games
14H2 Prospect-Major New Games A card-based strategy game with a Western mythology theme, Deck Heroes boasts a revolutionary game design with intuitive game play mechanics that support a variety of game play modes. A self-developed combat strategy game set in the underworld. Players can direct their
Slide 26: 14H2 Prospect-Link Messenger
14H2 Prospect-Link Messenger Link Messenger is a location-based instant messaging and social networking mobile application. The global promotion is expected to start in 14Q3; The launching of Link is to facilitate interaction and communication among the Group’s 160 million registered users, and
Slide 27: Thank you!
Thank you! IR Contact • ir@igg.com • yolanda.gao@igg.com