Slide 1: First Quarterly Results
OO 5 First Quarterly Results IGG INC May 2015
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 • 2015Q1 Financial Results • Business Review and Prospects 2
Slide 4: Company Profile
Company Profile IGG Group, a leading global mobile gaming developer and operator • To date, the Group has regional offices in 9 countries and regions; 15Q1 • Revenue from mobile games accounted for 93% of the total revenue in Q1; • The user community of the Group consisted of over 240m user accounts
Slide 5: Global Branches
Global Branches Well-organized corporate structure and explicit functional division enables the Group to carrying out its global strategy from a macro perspective. Group headquarters; Self-owned ad. platform; Marketing and Singapore USA Localized R&D operation and operation R&D; China Canada Localiz
Slide 6: Major Self-developed and Licensed Games
Major Self-developed and Licensed Games The Group has diversified mobile game genres, including strategy, card, RPG, casino etc., most of which are mid-core. 1.8 Hard-core 1.6 1.4 1.2 1 Mid-core 0.8 0.6 0.4 0.2 Casual 0 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10 Dec. 2011··· June
Slide 7: Agenda: 2015Q1 Financial Results
Agenda • Company Overview • 2015Q1 Financial Results • Business Review and Prospects 6
Slide 8: 15Q1 Financial Highlights
15Q1 Financial Highlights 14Q1 15Q1 Change 14Q4 15Q1 Change Revenue USD million 44.1 53.6 21.5% 60.5 53.6 -11.4% Gross profit USD million 32.2 36.9 14.6% 42.3 36.9 -12.8% % Gross profit margin 73% 69% -4ppt 70% 69% -1ppt Adjusted net income* USD million 13.8 14.8 7.2% 15.9 14.8 -6.9% Adjusted net in
Slide 9: Revenue of 15Q1 vs. 14Q1
Revenue of 15Q1 vs. 14Q1 (USD million) The revenue increase of 15Q1 vs. 14Q1 21.5% was primarily due to： • An increase in revenue generated from the mobile game series “Clash of Lords”, gross billing from this game series (I & II) was over US$10 million in 15Q1; 53.6 44.1 • The gross billing of “Dec
Slide 10: Revenue of 15Q1 vs. 14Q4
Revenue of 15Q1 vs. 14Q4 The revenue decrease of 15Q1 vs. 14Q4 was (USD million) primarily due to： -11.4% • From 1 January 2015, the European Union implemented changes to its tax system, as a result of which the Group‟s revenue from European Union countries are now subject to value added tax, so whi
Slide 11: 15Q1 Revenue Breakdown by Segment
15Q1 Revenue Breakdown by Segment In light of the rich R&D resources and operating experiences the Group has, self-operating business will go on to contribute significantly to the Group’s revenue while collaborating and co-operating with certain superior third-party platforms is a good supplementary
Slide 12: 15Q1 Revenue Breakdown by Game
15Q1 Revenue Breakdown by Game • The Group’s R&D resources has been allocated to mobile games and mobile related software; • Strategically, the original browser and client-based game business will be maintained without expansion. 14FY 15Q1 Client-based Others* Client-based Others* Games 2% Games 1%
Slide 13: 15Q1 Revenue Breakdown by Game Title
15Q1 Revenue Breakdown by Game Title 14FY 15Q1 Game title % of total Game title % of total revenue revenue •Major game “Castle Clash” Castle Clash* 62% Castle Clash* 57% maintained steady revenue; Clash of Lords(I&II) 12% Clash of Lords(I&II) 18% •“Clash of Lords” series Texas Poker Deluxe* 5% Deck
Slide 14: 15Q1 Revenue Breakdown by Region
15Q1 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. % of by country total revenue Australia 2% % of by country total revenue Other by % of 6% country/region total r
Slide 15: 15Q1 Expenses Breakdown
15Q1 Expenses Breakdown ✓ Channel cost is the major constituent of cost of 14FY 14Q4 15Q1 sales, the channel cost of our mobile game business is approximately 30%, which is higher than that of browser and client-based games; ✓ The revenue percentage of mobile games Gross profit margin 71% 70% 69% in
Slide 16: Tax Rate
Tax Rate IGG Singapore The Preferential corporate tax rate • More than 99% of our total 17% revenue was recognized through 5% IGG Singapore in 2014, 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%, s
Slide 17: Agenda: Business Review and Prospects
Agenda • Company Overview • 15Q1 Financial Results • Business Review and Prospects 16
Slide 18: Human Resource
Human Resource • As at March 31 2015, the Group had 780 employees, in addition, the Group hired an exclusive outsourcing R&D team of over 100 team members. by function by location Management Philippines Finance & Canada 4% 9% 3% admin. 8% Singapore Operation & 8% Customer service 31% US 4% R&D China
Slide 19: Operational Data Excerpts of Major Games
Operational Data Excerpts of Major Games CC COL II (Castle Clash) (Clash of Lords II) Launched in July 2013 Dec. 2013 Numbers of language versions 15 9 (as at the end of March 2015) Registered users 96.0 million 32.0 million (as at the end of March 2015) Monthly active users 10.0 million 3.9 million
Slide 20: M&A Project
M&A Project The group acquired an American game developer Nerd Kingdom at the end of 2014 Nerd Kingdom was established in 2010 by a team comprising a data scientist, an economist, a nuclear engineer and computer scientist, a gaming industry veteran and other professionals. The company brings an inte
Slide 21: New Title-Game of Kings
New Title-Game of Kings ✓ “Game of Kings”(GOK) is a major action-fantasy strategy title game, in which the avatars can fight automatically, but players will need to control their avatars’ skills and time their attacks to win; ✓ Players also need to manage their resources, build their home base, coll
Slide 22: New Title-Others
New Title-Others Semi-realtime RPG card game "Final Fable" Western Fantasy turn-based War-strategy RPG game RPG game "Brave Quest" "Age of Kingdoms" 21
Slide 23: Macroeconomic Change and Its Impact
Macroeconomic Change and Its Impact The development and reforming The growing potential of of global mobile game market Asian gaming market • The number of mobile game players • Asian game market maintained the surpassed 1.5b in 2014, among whom 32% highest growth rate in 2014, accounting are paying
Slide 24: Prospect
Prospect ✓ To further enhance the mobile game development ability through recruiting local talents in each regional offices and strengthening the internal competition; ✓ Encouraging face-to-face communication among staffs from each branches; ✓ To supplement the Group's existing R&D force by outsourc
Slide 25: Thank you!
Thank you! IR Contact • yolanda.gao@igg.com 24