Slide 1: 2016 Interim Report
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 • 2016 Interim Financial Results • Business Review and Prospects
Slide 4: Company Profile
Company Profile IGG Group, a leading global mobile gaming developer and operator • Revenue from mobile games accounted for 97%; The user community of the Group consisted of over 340m user accounts from more than 200 countries 16H1 and regions, including a total MAU of about 18.6m; • To date, the Gro
Slide 5: Global Ranking
Global Ranking Renowned British media Pocketgamer.biz released “Top 50 Mobile Game Developers list of 2016” in March, among which IGG ranked 17 Gross billings ranking of new and was one of the four Chinese blockbuster Lords Mobile companies in top 20. on August 20, 2016 Top five in 5 countries Top t
Slide 6: Trend of Gross Billings
Trend of Gross Billings Trend of the Group’s Trend of the Group’s monthly gross billings annual gross billings June 2013~June 2016 2008~2016 (annualized) (USD million) (USD million) About US$28m About US$270m 30 on June 2016 300 in 2016 (annualized) 25 250 20 200 15 150 10 100 5 50 0 0 08 09 10 11 1
Slide 7: Global Branches
Global Branches To achieve globalized R&D and operation by tapping into the potential of each market segment Eastern Europe USA Localized R&D Operation support Korea and operation support Localized R&D Canada and operation support Localized R&D Japan Singapore Localized R&D Group headquarters; and o
Slide 8: 2016 Interim Financial Results
Agenda • Company Overview • 2016 Interim Financial Results • Business Review and Prospects
Slide 9: 2016H1 Financial Highlights
2016H1 Financial Highlights 15H1 16H1 Change 15H2 16H1 Change Revenue USD million 103.8 126.0 +21.4% 98.8 126.0 +27.5% Gross profit USD million 72.0 88.6 +23.1% 68.5 88.6 +29.3% Gross profit margin % 69% 70% +1ppt 69% 70% +1ppt Adjusted net USD million 26.3 27.2 3.4% 17.9 27.2 +52.0% income* Adjuste
Slide 10: Change of Revenue and Adjusted Net Income
Change of Revenue and Adjusted Net Income (USD million) 140 126.0 120 •The revenue growth of 16H1 was 103.8 98.8 primarily due to the outstanding 100 performance of the new title 80 Lords Mobile; 60 •The lower growth rate of adjusted net income comparing 40 to revenue is primarily due to 26.3 27.2 1
Slide 11: 2016H1 Revenue Breakdown by Game Title
2016H1 Revenue Breakdown by Game Title • Average monthly gross billings of Castle Clash maintained at USD12 million level in 16H1; 15FY 16H1 • Gross billings of new title Game title % of total Game title % of total Lords Mobile surpassed USD10 revenue revenue million in July ; Castle Clash 60% Castl
Slide 12: 2016H1 Revenue Breakdown by Region
2016H1 Revenue Breakdown by Region The Group’s revenue comes from over 200 countries and regions, which dilutes the impact from the revenue and exchange rate fluctuation of certain regions. by % of country total revenue Australia 2% % of Other by % of by country country/region total revenue total re
Slide 13: 2016H1 Expenses Breakdown
2016H1 Expenses Breakdown SD&A exp./revenue ratio increased by 6 percentage 15FY 16H1 points from 15FY level, primarily due to increased advertising and promotional activities for Lords Gross profit Mobile. 69% 70% R&D cost increased by 25.6% comparing with 15H1, margin mainly due to the wages a
Slide 14: Net Cash and Capex
Net Cash and Capex (USD million) Cash & cash equivalents 159 Net cash Time deposit over three 0 USD159 m + months Healthy cash position and low - Short-term borrowings 0 capex business nature set the stage for potential M&As (USD million) over the next few PP&E such as servers and computer equipment
Slide 15: Tax Rate
Tax Rate IGG Singapore • About 99% of our total revenue The Preferential corporate tax rate was recognized through IGG 17% Singapore in 16H1; 5% • From 2010-2016, IGG Singapore is entitled to a preferential tax rate of 5%, subject to meeting certain conditions. The prevailing corporate tax rate 14
Slide 16: Dividend
Dividend Total Share Dividend Dividend amount numbers* per share Declaration Date Type (USD million) (100 million) (HK cents) 2016 26 Aug. 2016 7.5 13.66 4.3 Interim dividend *The outstanding ordinary share numbers as at the end of the corresponding report period. • The total amount of 2016 interim
Slide 17: Business Review and Prospects
Agenda • Company Overview • 2016 Interim Financial Results • Business Review and Prospects
Slide 18: Human Resources
Human Resources • Including about 350 staffs from our global R&D outsourcing team, and 44 staffs from Nerd Kingdom, the Group had about 1,260 employees in total as at 30 June 2016; • The Group recruited 9 employees (not included in the below table) for the newly established R&D center in Belarus in
Slide 19: Operational Data Excerpts of Major Games
Operational Data Excerpts of Major Games Castle Clash Clash of Lords II Deck Heroes Lords Mobile (城堡爭霸) (領主之戰II) (卡卡英雄) (王國紀元) Launched in July 2013 Dec. 2013 July 2014 March 2016 Numbers of language versions 15 12 10 16 (as at the end of June 2016) Registered users 155 million 50.4 million 11.5 mil
Slide 20: Operational Data Excerpts of Major Games
Operational Data Excerpts of Major Games 16H1 Monthly gross billings trend 14 12 10 Castle Clash 8 COL series 6 Deck Heroes 4 Lords Mobile 2 0 Jan. Feb. Mar. Apr. May Jun. 19
Slide 21: Lords Mobile
Lords Mobile 16H1 gross billings 16H1 gross billings of Lords Mobile of other games Lords Mobile achieved three significant breakthroughs for the iOS Group: iOS 22% 42% • Firstly, it is the Group's first by cross-platform, multi-language, platform Android global mega-server game; Android 58% 78% • s
Slide 22: Lords Mobile
Lords Mobile • It ranks high in Eastern European countries, such as Russia and Belarus, and in Southeastern Asian countries like Singapore. It also performed well in Eastern Asia region, including China, Korea and Taiwan; • It has been featured for dozens of times on Google Play Home Page. (USD mill
Slide 23: 2016 Global Games Market
2016 Global Games Market • The global mobile games market • In 2016, games revenue from Asia could (mobile phone and tablet) size could reach USD46.6bn , representing 47% of reach USD36.9bn in 2016, representing total global games market. roughly 37% of global games market. Revenue growth Revenue gr
Slide 24: Global Games Market Trend
Global Games Market Trend • The global games market size is expected to grow from USD99.6bn in 2016 to USD118.6bn in 2019; • From 2016 to 2019, the expected CAGR of Mobile games, PC/Webgames and TV/Console/Handheld are 13.1%, 2.5% and 1.2% respectively. （USD billion） 60.0 50.0 40.0 TV/Console/Handhe
Slide 25: Prospects
Prospects R&D Plan New Regulations in China Looking ahead, the Group expects to develop The State Administration of Press, Publication, approximately 10 games by the end of 2016, Radio, Film and Television of the People's including several strategy games, a tile- Republic of China (PRC) recently
Slide 26: Thanks!
Thanks! IR Contact • ir@igg.com