Asiasoft Corporation PLC. (AS) Asiasoft Talk 2013 13 th March 2013 - - PowerPoint PPT Presentation

Asiasoft Talk 2013

Asiasoft Corporation PLC. (AS)

13th March 2013

Page 2

Agenda

• The information contained in this presentation is for information purposes only and does not constitute an offer or invitation to sell or the solicitation
• f an offer or invitation to purchase or subscribe for shares of Asiasoft Corporation Pcl. (“Asiasoft”) in any jurisdiction nor should it or any part of it

form the basis of, or be relied upon in any connection with, any contract or commitment whatsoever.

• This presentation may include information which is forward-looking in nature. Forward-looking information involve known and unknown risks,

uncertainties and other factors which may impact on the actual outcomes, including economic conditions in the markets in which Asiasoft operates and general achievement of Asiasoft business forecasts, which will cause the actual results, performance or achievements of Asiasoft to differ, perhaps materially, from the results, performance or achievements expressed or implied in this presentation

• This presentation has been prepared by Asiasoft. The information in this presentation has not been independently verified. No representation,

warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions in this presentation. None of Asiasoft or any of its agents or advisers, or any of their respective affiliates, advisers or representatives, shall have any liability (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents

• r otherwise arising in connection with this presentation
• This presentation is made, furnished and distributed for information purposes only. No part of this presentation shall be relied upon directly or

indirectly for any investment decision-making or for any other purposes

• This presentation and all other information, materials or documents provided in connection therewith, shall not, either in whole or in part, be

reproduced, redistributed or made available to any other person, save in strict compliance with all applicable laws

Disclaimer

Overview Asiasoft in 2012

Page 4

Agenda

Historical Performance 2010 - 2012

Item

Y2010 Y2011 Y2012

Total Revenue

1,539.61 1,684.52 2,016.32 Revenue

1,511.83 1,637.57 1,971.94 <By Region> Domestic 1,056.10 1,070.35 1,119.78 Oversea 455.73 567.22 852.16 <By Business Type> Online 1,358.17 1,515.83 1,661.97 Distribution 126.99 91.97 277.68 Advertising and Other 26.66 29.77 32.29

COGS 793.47 900.58 1,124.35 Gross Profit 718.36 736.99 847.59

%GP 47.5% 45.0% 43.0%

SG&A 378.86 418.96 500.03

%SG&A 24.6% 24.9% 24.8%

TAX 102.8 71.24 82.01 Net Profit 264.47 296.41 303.96

%NP 17.2% 17.6% 15.1%

(Unit:Million Baht)

Y2011 Y2012

9.4% 19.7%

8.3% 20.4% 1.3% 4.6% 24.5% 50.2% 11.6% 9.6%

• 27.6%

201.9% 11.7% 8.5%

13.5% 24.8% 2.6% 15.0% 10.6% 19.4%

• 30.7%

15.1% 12.1% 2.5%

%Growth

Source : Company’s financial statement

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Agenda

Revenue by region and business

69.9% 65.4% 56.8%

30.0% 34.6% 43.2%

2010 2011 2012

% to Revenue

Oversea

Domestic

89.8% 92.6% 84.3% 8.4% 5.6% 14.1% 1.8% 1.8% 1.6%

2010 2011 2012

Online Distribution Advertising and Other

Source : Company’s financial statement

Page 6

Agenda

What happened in 2012

• Established our position firmly in Malaysia with the acquisition of CIB

and became no.1 in the market and should contribute good growth for future group revenue.

• Well-diversified of our income portfolio
• Increased distribution income to 14% of total from previous year
• f 7%.
• Well established our position in other game segments,

especially in Thailand, became no. 1 in web game in Thailand, apart from historical strength in only MMORPG and Casual and expand gamer base in FPS which increased from 4% of total in 2011 to 8% of total in 2012.

• Due to the acquisition of CIB and improvement of our overseas
• peration, our income from overseas increased from 34% of

total in 2011 to 43% in 2012.

Page 7

Agenda

What happened in 2012

• PT Asiasoft still operated at loss after the launch of 3 products but not

successful to serve the audience.

• Asiasoft reviewed the portfolio of license purchased and decided to write off

products which did not suit to the current market.

• The aggressive in no. of new games launched, but not successful in 2012.

Strategy 2013

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Agenda

Strategy 2013

Repositioning of Asiasoft Territory Expansion Provide Global Regional Content New Business : Mobile Platform

Repositioning Asiasoft

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Agenda

Asiasoft as top publisher in SEA countries

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Agenda

Asiasoft as SEA Gaming Service Provider

• AS is consolidating our regional resource and strength to repositioning as a Regional

Publisher that offer gamers a world class service and localized support.

• Gamer to see Asiasoft as a sizable regional publisher rather than a big local publisher
• Consolidated service support structure to provide the best service level to all gamer regardless
• f countries and nationality.

Page 13

Agenda

Asiasoft Games for SEA

One Community Platform and support across the region

Page 14

Agenda

Asiasoft Platform for SEA

• Excellent ICT Infrastructure
• Lower cost of ICT
• Strong Financial Services Hub
• Good Regulatory and Tax

incentives

• Good Internet connectivity to

regional countries

Page 15

Agenda

Community Management

Computer- based information system Operating System

Human Resource Programing Languages Content Management System

Asiasoft Platform for SEA

Page 16

Game Infrastructure Services

(IDC / MIS / Gaming Cloud Service/ ISP)

Game Licensing & Operation

(Product Management, GM, CS)

Game Distribution & Monetization

(Channel Management, Sales, PlayID, @Cash, @Shop)

Game Marketing & Community Management

(Marketing, Community and Portal Management)

Mobile Service

(Mobile Platform & Business Development)

Digital Distribution Packaged Products

Business Units – Group Functional Approach

Territory Expansion

Page 18

Agenda

Gross Domestic Product - ASEAN

GDP Ranking Country GDP

( $ Mil.)

Population GDP / Capita 16 Indonesia 846,834 248,645,008 $ 3,512 29 Thailand 369,709 67,091,089 $ 5,395 35 Malaysia 287,934 29,179,952 $ 10,085 37 Singapore 259,850 5,353,194 $ 49,271 43 Philippine 224,754 103,775,002 $ 2,345 56 Vietnam 123,600 91,519,289 $ 1,374 72 Myanmar 55,320 54,584,650 $ 824 121 Cambodia 12,830 14,952,665 $ 853 Total (8) ASEAN 2,205,387 622,096,201

Source: Pop : http://www.internetworldstats.com/asia.htm GDP : http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal) GDP per capital : http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)_per_capita

Page 19

Indoc Indochina hina Exp Expans ansion ion in in 201 2013

Page 20

Agenda

Investment Opportunity in Indochina

Latest Population Estimate : 91,519,289 population for 2012 Latest GDP Estimate : GDP per capita was 1,374 for 2012 Internet Usage and Population Statistics :

Year 2011 2012 2013 2014 2015

Internet Users (Mil)

29.5 34.2 39.5 44.4 49.5

Population (Mil)

89.9 91.5 91.9 (est.) 92.4(est.) 93.8 (est.)

Broadband Pen. (%)

32.87% 37.59% 42.96% 47.79% 12.80

Online Gamer (Mil)

7.50 8.80 10.20 11.50 20.70

Online Game Rev. (Mil US$)

70.0 88.1 110.1 136.5 169.2

Source: IDC 2012

6 New Games in 2013

2 MMO, 2 Casual 1 Web, 1 MOBA

Asiasoft VN 5% Market 95%

Asiasoft target for 2013

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MMO 52% Casual 20% SNS 12% Esport 16%

Category

RPG 78% RTS 11% Moba 5%

• rther

6% MMO Action Fighting 83% Racing 3% Dance 14% Sports 0% Casual gamble 97%

• rther

3% SNS

400K CCU

Not include mobile games

Market Share-A snapshot of the VN market

Source: Company Information

Page 22

Overview

• About 150 games and game portals published by

35 publishers

• Most new publishers launched web or SNS

games since it is less controlled by government, but that’s only if u not successful.

• Only 4 MMO client game launched in 2012 and 1

game close. All publisher focus on web game and SNS games.

• Decline of Client game both the results of market

changed helped by natural growth from others types of games / platform as well madness.

• New Client game most likely to fail as it is

impossible to market the products to users properly as it is very limited to game media and all form of offline activities is banned.

Vietnam Market Analysis

2012

Source: Company Information

Page 23

Online Gaming Market in Vietnam

3,060 4,119 4,530 4,986 5,508 6,096 6,762

2009 2010 2011 2012 2013 est. 2014 est. 2015 est.

Online Game Revenue in Vietnam Vietnam

• The largest size in SEAs in term of

Revenue, accounted 45% of total market size for SEAS and combining with Thailand and Malaysia, market size equal to 85% of total SEAs market

• CAGR 2011-2015 = 10.5%
• Revenue Model is mainly from free to

play which accounted of 97% of total in 2010

• There were approximately 34,000

Internet Café’ in Vietnam as of mid 2010 (Source :Niko Research)

Unit: Million Baht

Source: Company Information

Page 24

Investment Opportunity in Indochina

Latest Population Estimate : 14,952,665 population for 2012 Latest GDP Estimate : GDP per capita was $853 for 2012 Internet Usage and Population Statistics :

Year 2011 2012 2013 2014 2015

Internet Users (Mil)

1.7 3.0 4.0 4.5 5.0

Population (Mil)

14.3 14.9 15.1 (est.) 15.3(est.) 15.6 (est.)

Broadband Pen. (%)

11.88% 20.13% 26.49% 29.41% 32.05%

Online Gamer (Mil)

0.40 0.80 1.50 1.80 2.10

Online Game Rev. (Mil US$)

1.8 4.0 8.3 11.7 14.7 1 New Games in 2013

(1 MMO )

Asiasoft CAM 9% Market 91%

Asiasoft target for 2013

Source: Company Information

Page 25

Cambodia Market Analysis

Sabay, 90.00% VTC, 7.00% Metlaor, 3.00%

Market Share by CCU

Overview

• 2,000 cyber café and mostly in 3 Main

cities; Phnom Penh, Battambang, Siem Reap

• Cost of internet café’ USD 0.5 per hour
• Most popular online game JX2 and MAT,

with LAN game being DOTA

• No government entity managing online

gaming industry, however there are restrictions on Cybercafe’

• Sabay is a Cambodian company which is

a market leader holding market share of 90%

2012

Source: Company Information

Page 26

Investment Opportunity in Indochina

Latest Population Estimate : 54,584,650 population for 2012 Latest GDP Estimate : GDP per capita was $824 for 2012 Internet Usage and Population Statistics :

Year 2011 2012 2013 2014 2015

Internet Users (Mil)

0.6 2.0 5.0 8.0 10.0

Population (Mil)

53.0 54.6 60.9 (est.) 61.9(est.) 62.9 (est.)

Broadband Pen. (%)

1.13% 3.67% 8.20% 12.90% 15.90%

Online Gamer (Mil)

0.02 0.03 1.50 2.50 3.60

Online Game Rev. (Mil US$)

0.01 0.02 8.3 16.3 25.2

2 New Games in 2013

(2 MMO )

Asiasoft target for 2013

Source: Company Information

Page 27

Myanmar Market Analysis

Overview

• 2,000 cyber café’ Mostly in 5 Main cities;

Yangon, Mandalay, Naypyidaw, Mawlamyaing and Bago

• Cost of internet café’ USD 0.5 per hour
• Dota is the most played game in cyber café’
• nly 2 private game Dota and World of Warcraft

which pay on subscription base of USD 3 per month

• No government entity managing online gaming

industry

Internet Café’ in Myanmar

Source: Company Information

Page 28

Agenda Regional Content

• 2013 will be a year for part II of the top 5 games

generating revenue i.e. Ragnarok, Cabal and Audition.

Page 29

Agenda Ragnarok II

• RO2, the second version of over 10 years top game in Thailand.
• To capture more adult compared to RO with more income to pay.
• Currently launched in Korea and SEAs with over 100,000 gamers per day.

Page 30

Agenda CABAL II

• In 2007, CABAL make phenomenon trend in online game market by its new style
• f MMORPG.
• When CABAL II announced to service in Korea, it become talk of the town over

night and stand position in the top ranking Korean game until now.

Page 31

Agenda Audition 2

• Audition one is top casual game for a period of over 10 years in Thailand
• Currently, Audition 2 is serviced in 6 countries, Korea, Taiwan, Vietnam, China,

Russia and Japan.

New Business : Mobile Platform

Page 33

Agenda Agenda

• 1. Overview
• 2. Market Size and Potential
• 3. Value Chain of Mobile Gaming
• 4. The Mobile Landscape
• 5. Our Approach
• 6. Revenue Projection
• 7. Question & Answer

Page 34

Ov Over erview view

Page 35

Agenda Overview

• More than 360 Millions gamers playing mobile games as
• f 2011.
• Asia mobile gamers accounted for 39%.
• In 2011, mobile gaming revenue contributed to 9% of total

gaming revenue, amounting USD5.8bn

• Mobile Gaming Revenue projected to contribute more

than 50% (or USD54bn) of overall Online Gaming Revenue by 2015.

• More than 600M Mobile Subscriber in SEA.
• Our 51M gamer user base are contributing to this

growing market.

Page 36

Mar Market et Siz Size e and and P Pote

• tential

ntial

Page 37

Agenda Mobile Users Surpassing PC Users

Page 38

Agenda Mobile Subscriptions

> 600M Subscribers in SEA

Page 39

Agenda Market Size

Total 360M Total USD5.8bn

http://uk.reuters.com/article/2011/06/06/us-videogames-factbox-idUKTRE75552I20110606

9% of Total Gaming Revenue for 2011 (USD65bn)

Page 40

Agenda Market Potential

• Mobile Gaming Revenue to contribute more than 50% of total gaming

revenue by 2015.

• Total Gaming Revenue expected to reach USD 82bn by 2017

4.8 5.3 5.8 6.4 7.0 14.0 54.0

2009 2010 2011 2012 2013 2014 2015

Source: http://www.digitalbuzzblog.com/infographic-mobile-gaming-statistics-stats-2011

http://blog.mindcommerce.com/2011/12/06/mobile-gaming-market http://www.forbes.com/sites/johngaudiosi/2012/07/18/new-reports-forecasts-global-video-game-industry-will-reach-82-billion-by-2017

Unit: USD billion

Market Potential of Mobile Gaming Revenue

Page 41

Agenda Market Potential

Source: distimo

Page 42

Wher here ca e can w n we pla e play in t in the he Value alue C Chain hain?

Value alue Cha Chain in in in Mob Mobil ile Gaming e Gaming

Page 43

Agenda Value Chain in Mobile Gaming

Value Chain of Online Game Publishing on PC

Content Originators Value Add:

• IP
• Licensed titles
• Brand loyalty

Game Platforms Value Add:

• Community
• Brand loyalty

Distribution & Payment Value Add:

• Content Delivery
• Monetising
• Commoditising??

Handset Manufacturer Value Add:

• Technology
• OS
• Some brand

loyalty Telco Value Add:

• Commodity

Value Chain of Mobile Game Publishing

Page 44

Na Naviga igatin ting t g the m he mobile

• bile t

tec echno hnologie logies

The he Mob Mobil ile La e Land ndsc scape pe

Page 45

Agenda Native Apps Versus Browser Based

Page 46

Agenda Smartphones Market Shares (Shift)

Symbian 62% RIM 6% Linux 12% Microsoft 12% Palm 3% Other 5%

2006 2010 2015

Symbian 45% Android 11% Apple 12% RIM 15% Linux 6% Microsoft 8% Palm 1% Other 2% Symbian 32% Android 27% Apple 14% RIM 13% Linux 2% Meego 4% Microsoft 6% Other 2%

Page 47

Agenda Content is King or Customer is King? CONTENT or COMMUNITY ??

Page 48

Agenda

Over one million apps can’t be wrong, can they? App developers struggle with app discovery

App stores have become a battleground for user attention The average paid app needs about 40,000 downloads per day to reach the top 50 in the Apple App Store or the Google Play market

Oversupply de-values apps

Very difficult to make money out of apps

Apps need to move from product innovation to marketing innovation

Just like FMCGs, apps are in a mature market now

Apps is the new bubble Game Publishing (Marketing) is in demand!!

Page 49

Our Our Appr pproac

• ach

Page 50

Agenda How are we positioning ourselves?

Mobile Gaming / SNS Platform

+

Hybrid Web & Apps Based Community & Meta Platform Value Add with platform for community management & marketing with distribution and monetizing

Page 51

Agenda

• 1. Enhance existing PlayPark+ Mobile SNS & Gaming Platform.
• 2. Extend new mobile service offering to existing PlayPark Userbase

(same ID, same profile).

• 3. Roll out community activities to promote mobile SNS platform (e.g.

chat rooms for Guilds, Game guides, walk through; Scheduler for dungeon raids etc).

• 4. Introduce Mobile Apps extension from existing online games (e.g.

authenticator / item auction module / character management module etc)

• 5. Launch mobile SNS games / services (Dating games / Penny

Auctions)

• 6. Publish mobile Apps Games & Channel 3rd party Apps Games

The Approach

Page 52

Agenda

http://dena.com/intl/ http://corp.gree.net/jp/en/ir/library.html

/

Interesting Website http://gree-corp.com/

Prospect for 2013

Page 54

Agenda Prospect for 2013

Expected revenue growth for AS group of 30% Increase overseas contribution to 50% of total revenue Expected revenue for Indochina and Newly Establish at 13% Recognize revenue from mobile expected in 2013