Agenda Industry Overview 2010 Success in 2010 Performance 2010 - - PowerPoint PPT Presentation

Agenda

Industry Overview 2010 Success in 2010 Performance 2010 Next Step in 2011

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Domestic Overview

Region YEAR Users Population Penetration rate Usage Source Thailand 2009 16,100,000 65,998,436 24.4% ITU 2010 17,486,400 66,404,688 26.3% ITU

No. Company

• No. of Games

% 1. Asiasoft / Funbox 21 games 18.9% 2. Winner Online 15 games 13.5% 3. TDE & NC True 9 games 8.1% 4. INI3 Digital 7 games 6.3% 5. Cubinet Interactive 7 games 6.3% 6. Onnud 20 7 games 6.3% 7. Vplay 6 games 5.4% 8. Golden Soft 3 games 2.7% 9. TOT Public Company Limited 3 games 2.7% 10.

• nenet.Co.,Ltd

3 games 2.7% Others (22 publishers) 30 games 27.0% Total 32 publishers 111 games 100.0%

Total Max CCU = 288,127 CCU Page 5

Asiasoft / Funbox 0% INI3 Digital 60% 0% Others 40% Proportion base on Max CCU end of Dec 10

Online Game Breakdown by Game Type

Asiasoft / Funbox 49% TDE / NC True 15% INI3 Digital 16% Others 20% Asiasoft / Funbox 63% Winnersoft 4% Golden Soft 7% Others 26% Asiasoft / Funbox 2% TDE / NC True 82% Winnersoft 14% Others 2%

MMOPRG CASUAL FPS Web Game

MMORPG 48.7% CASUAL 17.6% FPS 27.9% WEB GAME 5.8% Page 6

yulgang Ragnarok Online ray city Cabal Rohan

Special Force Point Blank xshot Sudden Attack KARMA REVO Audition PANGYA Fifa 2 Tales Runner Zone4

Boomz Travian War2 ZhezafighterSangokushi

Thailand Top 5 Ranking Game Online

Remark : base on Max CCU end of Dec 10

• AS maintained its strength in MMO and Casual games, in 4Q10 AS obtained 4 out of top 5 for MMO and ranking no. 1 for

casual games.

• In the segment of FPS, True group was the leader and obtained 3 out of top 5 ranking. Ini3 was the leader for web game.
• For all segment, RO was the most popular game for this quarter with CCU of 29,880 compared to AU of 29,078 and SF of

24,940. Page 7

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Overseas Overview

YEAR Region Users Population Penetration rate Usage Source 2009 Singapore 3,370,000 4,657,542 72.36% ITU Malaysia 16,902,600 28,610,000 59.08% ITU 20,272,600 33,267,542 60.94% 2010 Singapore 3,658,400 4,701,069 77.82% ITU Malaysia 16,902,600 28,910,000 58.47% ITU 20,561,000 33,611,069 61.17%

Asiasoft 27% CIB 10% Garena 9% Cubinet 7% IAH 7% Rupup 4% Other 36% Total Max CCU = 132,250 CCU

No Company

• No. of Games

% 1. Run Up Sdn Bhd 25 games 17.0% 2. Cubinet Interactive Sdn Bhd 16 games 10.9% 3. CiB Net Station Sdn Bhd 13 games 8.8% 4. Asiasoft SG & MY 10 games 6.8% 5. iG-Interactive Sdn Bhd 10 games 6.8% 6. i1play 9 games 6.1% 7. MyCNX (M) Holdings Sdn Bhd 6 games 4.1% 8. Game Flier (M) Sdn. Bhd 6 games 4.1% 9. V-Flame Entertainment 6 games 4.1% 10. Easy Joy Entertainment Sdn Bhd 5 games 3.4% Others (17 publishers) 41 games 27.9% Total 27 publishers 147 games 100.0%

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Proportion base on Max CCU end of Dec 10

Online Game Breakdown by Game Type

MMOPRG CASUAL FPS

MMORPG 64% CASUAL 16% FPS 16% WEB GAME 4% Asiasoft SG & MY 31% CIB 6% Others 63% Asiasoft SG & MY 16% CIB 20% Garena 37% Others 27% Asiasoft SG & MY 25% CIB 27% Garena 21% Others 27% Page 10

Singapore Top 5 Ranking Online Game

Remark : base on Max CCU end of Jan 11 Page 11

Malaysia Top 5 Ranking Online Game

Remark : base on Max CCU end of Jan 11 Page 12

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Success in Online Game

New Game Launch

Quarter 1

Type: MMORPG From: Korea Launch: 10 Feb 10 Operate: TH Type: MMORPG From: Korea Launch: 1 Apr 10 Operate: SG Type: MMORPG From: China Launch: 1 Apr 10 Operate: SG Type: MMORPG From: Korea Launch: 29 Jul 10 Operate: TH Type: MMORPG From: China Launch: 9 Sep 10 Operate: TH Type: MMORPG From: China Launch: 30 Nov 10 Operate: TH [Funbox]

Quarter 2 Quarter 3 Quarter 4

Remark: Monster Master Online is the same title of Monster forest

Type: MMORPG From: China Launch: 16 Dec 10 Operate: MY

New Game and Existing Game Growth

Amount % Growth FY08 FY09 FY10 FY09 FY10 Portion New Games 10.8% 8.3% 13.0% ▼ 9% ▲ 80% Existing Games 89.2% 91.7% 87.0% ▲ 21% ▲ 9% New Games GO/FS/SMO/ SA/3K/HY RM/DK/WFFM/ GC/RP/VC/AT RH/12Sky2/8inw /MF Unit : Million Baht Items Domestic

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• Top 5 ranking games generated 69% of total income in 2010 whereas 76% of total income in 2009.

Top 5 Ranking Online game

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100 200 300 400 500 600 50,000 100,000 150,000 200,000 250,000 300,000 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10

APAs Monthly ARPU

• Avg. APAs

(users)

Monthly ARPU (baht)

Performance of APAs & ARPU

• ARPU has improved constantly to 494 baht in 4Q10 from 423 baht in 3Q10 or increased 17% QOQ
• In terms of paying accounts has maintained the same level as last quarter at 177,455 or

increased 1% QOQ.

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Existing Game Growth

Amount % Growth FY08 FY09 FY10 FY09 FY10 Portion New Games 11.1% 6.3% 1.3% ▼ 54% ▼ 77% Existing Games 88.9% 93.7% 98.7% ▼ 14% ▲ 17% New Games CB YG/SA/CC MF/RC/BOI Unit : Million Baht Items Overseas

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• Top 5 ranking games generated 96% of total income in FY 2010 whereas 98% of total income in FY

2009.

Top 5 Ranking Online game

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• Avg. APAs

(users)

Monthly ARPU (baht)

Performance of APAs & ARPU

10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 100 200 300 400 500 600 700 800 900 APAs Monthly ARPU

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Operational Support

• IT
• MIS
• Customer Service
• Marketing Planning

Operational Support

• IT
• MIS
• Customer Service
• Marketing Planning

End-User End-User

Cost Deduction Employee expenses decreased

17.1 mb or 20% from last

year Reduced

60 staffs

but quality is the same

Streamlining in Overseas Operation

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Summarized Group Performance

Unit: Million Baht Q4-2009 Q4-2010 %YoY FY2009 FY2010 %YoY Revenue 415.3 451.0 8.6% 1,472.7 1,539.6 4.5%

< By Region > Domestic 277.0 305.0 10.1% 999.5 1,082.6 8.3% Overseas 138.3 146.1 5.6% 473.1 457.1 (3.4%) < By Business Type > Online 330.5 406.5 23.0% 1,195.3 1,359.6 13.7% Distribution 74.3 22.6 (69.5%) 216.8 124.4 (42.6%) Others 10.6 21.9 107.1% 60.5 55.7 (8.0%)

COGS 220.2 232.5 5.6% 822.6 793.5 (3.5%) Gross Profit 195.1 218.5 12.0% 650.1 746.1 14.8%

% GP 47.0% 48.4% 44.1% 48.5%

SG&A 99.1 114.2 15.2% 374.2 378.9 1.2%

% SG&A 23.9% 25.3% 25.4% 24.6%

EBIT 96.0 104.4 8.7% 275.8 367.3 33.1%

% EBIT 23.1% 23.1% 18.7% 23.9%

Net Profit 64.1 69.2 8.0% 178.5 264.5 48.2%

% NP 15.4% 15.3% 12.1% 17.2%

Basic EPS (Baht) 0.21 0.23 0.60 0.87 Net Profit after Adjustment 55.6 84.7 52.4% 176.6 290.4 64.4%

% NP 13.4% 18.8% 12.0% 18.9%

• Online income accounted for 90% of total income.
• Total adjustment of THB25.9 million consisted of tax loss of THB 9 million (35%) in Fun Box, A/R provision for

VN of 15.5 million (60%) and others in write off of asset in ASM (move to new office)THB1.4 million (5%).

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Unit: Million Baht Q4-2009 Q4-2010 %YoY FY2009 FY2010 %YoY Revenue 277.0 305.0 10.1% 999.5 1,082.6 8.3%

Online 223.2 262.9 17.8% 798.8 920.5 15.2% Distribution 44.9 20.7 (53.8%) 147.0 107.8 (26.7%)

Others 8.9 21.3 138.7% 53.7 54.3 1.2%

COGS 109.2 137.4 25.8% 465.1 472.7 1.6% Gross Profit 167.8 167.6 (0.1%) 534.4 609.9 14.1%

% GP 60.6% 54.9% 53.5% 56.3%

SG&A 58.2 77.4 32.9% 222.1 266.1 19.8%

% SG&A 21.0% 25.4% 22.2% 24.6%

EBIT 109.6 90.2 (17.7%) 312.3 343.7 10.1%

% EBIT 39.6% 29.6% 31.2% 31.8%

Net Profit 77.7 61.8 (20.4%) 218.8 247.5 13.1%

% NP 28.0% 20.3% 21.9% 22.9%

Net Profit after Adjustment 68.0 76.0 11.7% 215.7 272.0 26.1%

24.5% 24.9% 21.6% 25.1%

Summarized Performance-Domestic

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Unit: Million Baht Q4-2009 Q4-2010 %YoY FY2009 FY2010 %YoY Revenue 138.3 146.1 5.6% 473.1 457.1 (3.4%)

Online 107.3 143.6 33.8% 396.5 439.1 10.7% Distribution 29.4 1.9 (93.6%) 69.8 16.6 (76.2%)

Others 1.6 0.6 (65.3%) 6.8 1.3 (80.5%)

COGS 111.0 95.1 (14.3%) 357.4 320.8 (10.3%) Gross Profit 27.3 51.0 86.5% 115.7 136.3 17.8%

% GP 19.7% 34.9% 24.5% 29.8%

SG&A 40.9 36.8 (10.1%) 152.1 112.7 (25.9%)

% SG&A 29.6% 25.2% 32.2% 24.7%

EBIT (13.6) 14.2 204.1% (36.5) 23.5 164.6%

% EBIT

• 9.8%

9.7% (7.7%) 5.2%

Net Profit (13.6) 7.4 154.2% (40.3) 17.0 142.1%

% NP

• 9.8%

5.0% (8.5%) 3.7%

Net Profit after Adjustment (12.4) 8.7 170.3% (39.1) 18.3 146.8%

• 9.0%

6.0% (8.3%) 4.0%

Summarized Performance-Overseas

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Historical Group Performance

• Highest net profit in FY2010 = 264.50 MB net profit margin 17.2% growth from FY2009 48.2%

Unit: Million Baht FY2007 FY2008 FY2009 FY2010 %YoY Revenue 1,558.5 1,611.9 1,472.7 1,539.6 4.5%

< By Region > Domestic 929.5 1,026.6 999.5 1,082.6 8.3% Overseas 629.0 585.3 473.1 457.1 (3.4%) < By Business Type > Online 1,166.7 1,165.7 1,195.3 1,359.6 13.7% Distribution 334.6 358.4 216.8 124.4 (42.6%) Others 57.2 87.8 60.5 55.7 (8.0%)

COGS 896.3 925.0 822.6 793.5 (3.5%) Gross Profit 662.2 686.9 650.1 746.1 14.8%

% GP 42.5% 42.6% 44.1% 48.5%

SG&A 323.7 422.5 374.2 378.9 1.2%

% SG&A 20.8% 26.2% 25.4% 24.6%

EBIT 338.5 264.3 275.8 367.3 33.1%

% EBIT 21.7% 16.4% 18.7% 23.9%

Net Profit 253.6 185.1 178.5 264.5 48.2%

% NP 16.3% 11.5% 12.1% 17.2%

Basic EPS (Baht) 1.13 0.69 0.60 0.87

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Proportion Domestic and Overseas

(Unit : million baht)

228 254 269 276 243 245 234 277 265 251 262 305 160 161 120 144 102 116 117 138 101 108 102 146 388 415 389 420 345 361 351 415 366 359 363 451 Q1-2008 Q2-2008 Q3-2008 Q4-2008 Q1-2009 Q2-2009 Q3-2009 Q4-2009 Q1-2010 Q2-2010 Q3-2010 Q4-2010 Total Domestic Overseas Domestic 68% Overseas 32% Domestic 70% Overseas 30% Page 27

Revenue Breakdown

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Domestic Overseas Group FY09 FY10

%Change

FY09 FY10

%Change

FY09 FY10

%Change

Online 798.83 920.48 ▲ 15% 396.51 439.12 ▲ 11% 1,195.34 1,359.60 ▲ 14% Distribution 147.02 107.75 ▼ 27% 69.82 16.61 ▼ 76% 216.83 124.36 ▼ 43% Other Services 53.68 54.32 ▲ 1% 6.81 1.33 ▼ 80% 60.49 55.65 ▼ 8%

Total Revenues

999.53 1,082.56 ▲ 8% 473.13 457.05 ▼ 3% 1,472.66 1,539.61 ▲ 5% Unit : Million Baht

Items

Major Cost and SG&A Breakdown

Domestic Overseas Group FY09 FY10

%Change

FY09 FY10

%Change

FY09 FY10

%Change

Royalty 291.45 321.42 ▲ 10% 183.34 185.18 ▲ 1% 474.79 506.60 ▲ 7% Employee 86.46 85.07 ▼ 2% 87.16 70.07 ▼ 20% 173.62 155.14 ▼ 11% Network&Depreciation 48.07 46.24 ▼ 4% 49.27 45.48 ▼ 8% 97.34 91.72 ▼ 6% Direct&Other Cost 39.16 19.97 ▼ 49% 37.67 20.04 ▼ 47% 76.84 40.01 ▼ 48%

Total COGS

465.14 472.69 ▲ 2% 357.45 320.78 ▼ 10% 822.59 793.47 ▼ 4%

% to Revenues

46.5% 43.7% 75.5% 70.2% 55.9% 51.5% Unit : Million Baht

Items

Domestic Overseas Group FY09 FY10

%Change

FY09 FY10

%Change

FY09 FY10

%Change

Employee 85.23 95.24 ▲ 12% 48.22 44.31 ▼ 8% 133.45 139.55 ▲ 5% Other Administrative 74.77 110.86 ▲ 48% 57.61 41.23 ▼ 28% 132.38 152.09 ▲ 15% Marketing 48.45 50.39 ▲ 4% 38.61 20.67 ▼ 46% 87.07 71.06 ▼ 18% Others Selling 13.64 9.64 ▼ 29% 7.70 6.52 ▼ 15% 21.34 16.16 ▼ 24%

Total SG&A

222.09 266.14 ▲ 20% 152.15 112.73 ▼ 26% 374.23 378.87 ▲ 1%

% to Revenues

22.2% 24.6% 32.2% 24.7% 25.4% 24.6%

Items

Unit : Million Baht

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Net Profit Domestic and Overseas

(Unit : million baht)

27 48 48 28 38 53 49 78 62 68 56 62 19 20 (1) (3) (10) (7) (9) (14) 1 6 3 7 46 68 48 24 28 46 40 64 63 74 59 69 Q1-2008 Q2-2008 Q3-2008 Q4-2008 Q1-2009 Q2-2009 Q3-2009 Q4-2009 Q1-2010 Q2-2010 Q3-2010 Q4-2010 Total Domestic Overseas 12% 19% 18% 10% 16% 22% 21% 28% 23% 27% 21% 20% 12% 12% (1%) (2%) (10%) (6%) (8%) (10%) 1% 5% 3% 5% 12% 16% 12% 6% 8% 13% 11% 15% 17% 21% 16% 15% Q1-2008 Q2-2008 Q3-2008 Q4-2008 Q1-2009 Q2-2009 Q3-2009 Q4-2009 Q1-2010 Q2-2010 Q3-2010 Q4-2010 Total Domestic Overseas Page 30

Balance Sheet FY 2010

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Balance Sheet Structure

THB Million

856 1,718 1,700 1,770 D/E Ratio 115.3% D/E Ratio 36.3% D/E Ratio 37.1% D/E Ratio 39.1% 459 457 460 497 398 1,261 1,240 1,273 FY2007 FY2008 FY2009 FY2010

Assets Liabilities Equity

Cash 34% ST- Investment 16% A/R 16% Def.Licensing Fee 19% Equipment 6% Others 9%

• Def. revenue

48%

• Ac. Corp.

Income Tax 11% Ac.licensing fee 12% Other current liabilities 18% Trade payable 8% Others 3%

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Investment in Indonesia Growth Acquisition

Next Step in 2011

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Growth in Current Operation

New Game Launch

Domestic Overseas 2006 2007 2008 2009 2010 2011 3 2 2 2 1 4 3 7 3 4

4 12

5 4 5 10 7 Total

16 16

New Game launch

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New Game launch

Casual 3 games MMO 8 games FPS 1 games Casual MMO 3 games FPS 1 games

A.V.A. Xuan Wu

Chinese Hero commercial launch in Jan 11 generated revenue 6.5 MB*

* Information 21 Jan 11 - 20 Feb 11

A.V.A. Dragon Nest New MMO Game Gangza Band Master KNO Gigaslave Audition 2 Chinese Hero 3K War ARGO AIKA AIKA Chinese MMO Game

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New Game Launch Growth Acquisition

Next Step in 2011

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Internet Market Overview

• Indonesia is the world’s fourth most populous

country having of nearly 250 millions people which then ranked 5th among Asian countries for internet users based on 2009 data of Internet World Stats

• Indonesian internet users according to APJII

(Indonesian ISP Association) on year 2009 is approximately 30 millions users dominated in Jakarta, Surabaya, Bandung, Jogja cities. Internet Usage and Population statistics:

Industry Overview in Indonesia

Top 10 Internet User in Asia - 2009

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• Demographic of internet user by age and gender, no. of target gamers is around

73% (ages range 15 - 34).

Industry Overview in Indonesia

Social network in Indonesia

• Indonesia is the world’s

two most populous country to access on Facebook

http://www.socialbakers.com/facebook-statistics/indonesia

Industry Overview in Indonesia

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YEAR PRICE/MB Price Decrease (%)

2000 15,000 2001 10,000 33% 2002 6,500 35% 2003 5,000 23% 2004 3,000 40% 2005 2,200 27% 2006 1,600 27% 2007 1,000 38% 2008 700 30% 2009 500 29% 2010 200 60% 2011 150 25%

Internet Cost Trend

The home usually averaged on having IIX twice as fast as the International bandwith (2Mbps+ IIX for 1Mbps International), and for business about 5x (10Mbps+ IIX for 2Mbps).

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Internet User Behaviors

Year 2008 Year 2009 Year 2010

• No. of outlet (warnet)

12,000 17,000 20,000 Average PC 10 15 20

• No. of terminal

120,000 225,000 400,000 Individual ownership 98% 90% 85% Franchise 2% 10% 15% Average Hourly PC rate (IDR) 5.000 4.000 3.000

• Majority gamers play at game

centers (warnet: indonesian) and there are approximately 20,000 warnet nation wide according to detiknet.com

• There are about 49% of internet users play games, with a total number of near 15

millions users according to BBG research, Based on Yahoo and TNS joined research, released on March 2009, internet usage is dominated by teens age of 15-24 (40%). Usage are email (59%), IM (59%) and Social networking (58%), Search Engines (56%), News (47%), Blogging (36%) and Online Game (35%).

Indonesia Online Game Users

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Year Number of Online Games Number of Publishers 2008 20 Games 11 Publisher 2009 22 Games 9 Publisher 2010 39 Games 16 Publisher

Competitor Overview

Online Game Market Leader

The most successful online game recorded was

• Ragnarok (2005/2006) from LYTO
• which has PCCU of 50,000
• Audition (2007) from Magaxus with

the same PCCU record as Ragnarok

• Point Blank (2010) from PT Kreon

which has approximately 150,000 PCCU recently.

Historical Key Point

Point Blank - 2010 Audition - 2007 Ragnarok - 2006 150,000 CCU 50,000 CCU 50,000 CCU

Gemscool (PT Kreon) 97% Lyto 2% Megaxus 0% Others 1% Page 46

Competitor Overview

Gemscool (PT Kreon) 23% Lyto 38% Megaxus 8% Others 31%

MMORPG Casual FPS

Gemscool (PT Kreon) 10% Lyto 42% Megaxus 44% Others 4%

Lyto is still leading the market with CCU of 20,600 from Luna, RF, Perfect World and Rohan. Gemscool is aggresively catching up in RPG market with 12,550 CCU with Atlantica and Mako in 2011 Megaxus is loosing their popularity from Lineage (5K CCU) 22 games 54,600 CCU Megaxus is still the market leader mainly because of Audition with CCU of 9K Lyto aggresively catching up by launching racing, dance and strategy games with total of 11K CCU Gemscool also launched Freestlye and Mako after the success of PB with CCU of 2,532 12 games 26,598 CCU Gemscool Point Blank shifted the market and has more than 150K CCU Lyto Cross Fire came second with 3900CCU 5 games 163,920 CCU

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Investment in Indonesia

Next Step in 2011

New Game Launch Investment in Indonesia

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Asiasoft plan budget 100 MB for

• Invest through related business, website, local game developer, software

developer, innovative game serving various platform e.g. i-Phone, Blackberry, Android.

• Promote and support Thai game equal to International online game; Korea,

China, Taiwan

Growth Acquisition