Slide 1: Scaling Growth, Advancing Ambitions
Scaling Growth, Advancing Ambitions Full Year Results for the year ended 31 December 2024 Winking Studios Limited February 2025
Slide 2: Disclaimer
Disclaimer This presentation is designed to provide information about Winking Studios Limited and its business and operations. It is intended as general information only and is not to be relied upon for any particular purpose. In particular, no information contained in this presentation constitutes,
Slide 3: Presenting Today
Presenting Today Johnny Jan Oliver Yen Tina Li Harry He Executive Director and Finance Director and General Manager of Art International Financial Controller Chief Executive Officer (Founder) Group Chief Financial Officer Outsourcing Segment and Head of Investor Relations Over 26 years' experience i
Slide 4: Agenda
Agenda 04 2024 Strategy Financials Supporting Outlook Questions Appendix Summary In Action Blue Chip Clients 4
Slide 5: AAA Outsourcing and Development
AAA Outsourcing and Development 4th largest game Art Outsourcing 25+ Year 800+ Large, global clients studio in the world* Group Operating history Employees Blue chip customers Actively pursuing ‘buy and build’ strategy for rapid expansion Art Outsourcing Services Game Development Services Other Serv
Slide 6: Investment Case
Investment Case ‘Work-for-Hire’ Outsourcing is central Focus on 8-10% business to Game Development high-growth historical organic model industry Mobile/Online titles growth** Limited Compelling Long-term, Taking relative product risk cost advantage repeat revenues market share * Significant sharehol
Slide 7: FY2024 Highlights
FY2024 Highlights Demand for services Resilient operating Strong Focus High repeat revenues from remained strong in FY2024 performance & Niche follow-up projects Revenue Adjusted EBITDA* US$31.9M US$4.8M 85.9% ~41% +11.2% before FX, Includes ongoing listing expenses Our Manpower Usage for Games Perc
Slide 8: Art Outsourcing Segment
Art Outsourcing Segment Production cycle illustration Long-term, repeat, valuable revenues ≫ Unlike traditional Offline FY2020 FY2021 FY2022 FY2023 FY2024* 1 Pre-production games, games with online connectivity Revenue US$m 12.3 20.4 22.0 24.1 26.4 require regular content Gross profit US$m 4.2 6.2 5
Slide 9: Delivering Growth and Scale
Delivering Growth and Scale Increasing headcount over the years Good progress to diversify 3% our revenue base geographically 10% Revenue (US$ m) Mainland China & Hong Kong 25% Headcount (Group) Mainland China & Hong Kong(non-China)1 11% 29.3 31.9 Taiwan South Korea FY2024 United States Japan US$31.
Slide 10: Key Financial Highlights for FY2024
Key Financial Highlights for FY2024 Revenue (US$ m) Gross Profit (US$ m) / Gross Margin On a constant currency basis, ▲11.2% YoY ▲ 8.9% YoY 31.9% 29.7% US$ million Gross Margin US$ million 31.9 Gross Profit 29.3 9.3 9.5 FY2023 FY2024 FY2023 FY2024 ≫ Despite challenging market conditions within the g
Slide 11: Alternative Performance Measures for FY2024
Alternative Performance Measures for FY2024 Adjusted EBITDA Adjusted Net Profit 15.1% 0.6 Distribution and marketing expenses not incurred in FY2023 0.6 Ongoing-listing expense (SGX) not incurred in FY2023 17.8% 0.6 Distribution and marketing expenses not incurred in FY2023 US$ million US$ million O
Slide 12: Strategy in Action
Strategy in Strategy Action in Action FY24 Results 12
Slide 13: Clear Growth Strategy Delivering at Pace
Clear Growth Strategy Delivering at Pace Our Mission to become: #1 Art Services Provider in the World Acquisitions Organic Growth Strategic Partnership ≫ Increase Art Outsourcing capacity in ≫ With the total global development ≫ Supportive of acquisition strategy Asia with targeted valuations of 7-1
Slide 14: Scaling Up
Scaling Up Robust investors support and proactive M&A strategy Scale M&A opportunity Fund Raise Jan 2025: Fund Raise Nov 2024: Announced Jul 2024: AIM dual listing acquisition M&A M&A on LSE that raised of Mineloader, one Private placement US$10.0 million Fund Raise Jun 2024: in Singapore that of th
Slide 15: Building a Global Leader through M&A
Building a Global Leader through M&A On Point Creative Pixelline Mineloader Acquired: Consideration: Acquired: Max Consideration: Proposed acquisition: Max Consideration: 1 April 2024 US$1.9m* 28 June 2024 US$1.0m 17 January 2025 US$19.9m ≫ Taiwan-based studio ≫ Animation production studios in Malay
Slide 16: FY2024 Financial Review
FY2024 Financial Review FY24 Results FY24 Results 16
Slide 17: FY2024: Key P&L Highlights and APMs
FY2024: Key P&L Highlights and APMs* US$(m) FY20241 FY2023 Change(%) Revenue 31.9 29.3 +8.9 ≫ On a constant currency basis, revenue growth would have increased to 11.2% YoY. Revenue growth before FX +11.2 ≫ Dividend of 0.024 SGD cents (or 0.014 pence) per share has been Adjusted EBITDA 4.8 5.2 (7.6)
Slide 18: FY2024: Balance Sheet (Key Highlights)
FY2024: Balance Sheet (Key Highlights) US$ million FY20241 FY2023 Change(%) Cash and cash equivalents 39.8 16.4 +142.5 ≫ Healthy cash position with gross proceeds of US$29.9 Trade and other receivables 6.4 3.9 +64.1 million raised from the private placement in Singapore (Jul 2024) and AIM listing on
Slide 19: FY2024: Cash Flow and Cash Position
FY2024: Cash Flow and Cash Position (Key Highlights) US$ million FY20241 FY2023 Change(%) Net cash generated from operating activities 0.6 3.5 (81.7) ≫ Net cash generated from operating activities was US$0.6 million during FY2024, as compared to US$3.5 million generated during Net cash (used in) inv
Slide 20: Supporting Blue Chip Clients
Supporting Supporting Blueblue Chipchip Clients clients FY24 Results FY24 Results 20
Slide 21: Why Customers Come to Winking Studios
Why Customers Come to Winking Studios Benefits of outsourcing and our differentiated value propositions Cost pressures on video games industry Winking offers… ≫ AAA title and multi-year Mobile franchises ≫ Cost efficiency (reduced fixed overheads) and development costs can reach up to scale with qua
Slide 22: Case Study: Trusted Art Partner for Destiny 2
Case Study: Trusted Art Partner for Destiny 2 Key art outsourcing partner for Bungie since 2019 Providing character modeling and rigging For six consecutive years FY24 Results 22
Slide 23: Case Study: Trusted Art Partner for Destiny 2
Case Study: Trusted Art Partner for Destiny 2 Our collaboration has addressed several Key art outsourcing critical production challenges for our client: partner for Bungie ≫ High-Volume Production on Tight since 2019 Deadlines – Delivering seasonal character assets efficiently. Season 6 Season 9 Pro
Slide 24: High-Quality Animation for AAA Simulation Games
High-Quality Animation for AAA Simulation Games Tackling Animation Challenges Winking Studios brings realistic, high-quality ≫ Realistic Motion – Studied real animal animations to Farming behaviors through in-depth video to create Simulator 25, enhancing natural, fluid animations. immersion with lif
Slide 25: Bringing Jay Chou's Music to Life with an Interactive Digital Experience
Bringing Jay Chou’s Music to Life with an Interactive Digital Experience Our Contributions Winking Studios’ Game Development Group ≫ Optimisation & Adaptation – (GDG) was involved in a Enhanced performance and compatibility for a seamless user Jay Chou-related project experience. to create a unique
Slide 26: Outlook
Outlook FY24 Results 26
Slide 27: Outlook
Outlook 2025 The acquisition of Building a robust To identify and Accelerating Enhance business Mineloader is pipeline of M&A establish new business synergies, resource expected to be opportunities with production hubs development efforts integration and completed before end 25+ years of industry wi
Slide 28: Questions
Questions Winking Studios Limited www.winkingworks.com Winking Studios Limited February 2025
Slide 29: Appendix
Appendix FY24 Results FY24 Results 29
Slide 30: Winking Studios
Winking Studios 1997 - 2003 2004 - 2007 2008 - 2015 2016 - 2023 2024 Origin and First Steps Expansion and Growth Scaling Up and Global Mission to Become Investment Recognition #1 Art Services Founded in Taipei as Collaborated on high- WindThunder Studio, profile projects including Partnered with maj
Slide 31: Market Growth
Market Growth Growth in global Overall Global Online Gaming Asian Market Art Outsourcing gaming industry Gaming Industry Growth Majority and Development which Asia dominates growth Growth Expected 2023-2028 Mobile gaming Asia is approximately Gaming Outsourcing CAGR growth of market share in 2023 ma
Slide 32: Board of Directors
Board of Directors Independent and Independent and Independent and Executive Director and Non-Executive Independent and Finance Director and Non-Executive Chairman Non-Executive Director Non-Executive Director ChiefExecutive Officer (Founder) Director Non-Executive Director Group Chief Financial Off
Slide 33: Shareholder structure
Shareholder structure As at 31 January 2025 Name % Acer Gaming Inc 57.4 ≫ Acer participated in AIM IPO Acer SoftCapital Incorporated* 6.8 ≫ Acer is not involved in the day-to-day operations Flying Way International Corp** 5.2 ≫ Acer has one (1) board representative Mr. Cho Tai-Wei** 0.8 Mr. Johnny J
Slide 34: Competitive Landscape
Competitive Landscape ≫ The top 10 players Top 10 Players in the Global Game account for 7.1% of total Art Outsourcing Market, 2024 0.2% 7.1% market share in 2023 0.4% 0.3% 0.4% ≫ Winking placed 4th 0.4% globally with 0.7% market 0.5% share and 3rd in Asia 0.7% 1.0% 1.3% 1.9% FY24 Results Source: Ch
Slide 35: Game Art Outsourcing Market Overview
Game Art Outsourcing Market Overview Top 5 studios globally by 2023 game Art Outsourcing revenue Number of Game Art Key Geographical Major Customer Positioning & Rank Company Major Business Employees Locations Base Vision (approx.) Game Development & Art Services Keywords Functional & Localisation T
Slide 36: Where AI Falls Short
Where AI Falls Short The high value-add creative process offering original, bespoke artistic design cannot be replaced by Artificial Intelligence ≫ Very limited publicly available 3D model data on the internet heavily restricts quality and variety of AI-generated models VS ≫ AI cannot understand con
Slide 37: Our New AI Technology
Our New AI Technology Ability to harness the power of AI to develop SaaS tools for high-volume art production In-house development - GenMotion.AI ≫ Beta testing a new text-to-image AI product to revolutionise 3D Animation Design ≫ Developed by Winking’s AI Research Lab, GenMotion.AI is leveraged to