Asiasoft Corporation PLC. (AS) Asiasoft Talk 2014 3 rd March 2014 - - PowerPoint PPT Presentation

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Asiasoft Corporation PLC. (AS) Asiasoft Talk 2014 3 rd March 2014 - - PowerPoint PPT Presentation

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Asiasoft Corporation PLC. (AS) Asiasoft Talk 2014 3 rd March 2014 Disclaimer 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 of

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Asiasoft Talk 2014

Asiasoft Corporation PLC.

(AS)

3rd March 2014

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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

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Agenda

Agenda

2013 Review 2014 Outlook 2014 Strategy

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2013 Review

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Agenda

What happened in 2013

  • Mobile gaming grows at exponential rate;
  • eSports games including Multiplayer Online

Battle Arena (MOBA) took the community with a storm;

  • MMO Gamers playing more games and

becoming very selective in the game they play;

  • Games with smaller branding fails to excite the

gamer community;

  • Online gaming environment has evolved rapidly

into another new era…

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Agenda

Online Game Publishers Breakdown by Market

Thai = ASC , Funbox ,PCG / English = ASO , ASM / Chinese = CIB / Others = TLC ,PT
  • No. of Publisher
New 2012 New 2013 Total 2013 New 2012 New 2013 Total 2013 Thai 61 75 196 11 10 47 English 13 39 6 2 9 Chinese 40 43 109 9 3 35 Other 11 100 325 2 14 79 Total 112 231 669 28 29 170 Market
  • No. of Game
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Agenda

Current Portfolio

At the end of 2013, AS group

  • perates 56 online game titles in 6

countries:

  • Thailand

29 Titles

  • Singapore

9 Titles

  • Malaysia

20 Titles

  • Indochina

6 Titles

  • Indonesia

2 Titles

  • Philippines

2 Titles

MMORPG 35 Games 62% Casual 8 Games 13% FPS 5 Games 10% MOBA 1 Game 2% Web 7 Games 13%

Number of Games by Genre

Note: Some games are operated in more than one country
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Agenda

MMO 20 Games 67% Casual 4 Games 13% FPS 2 Games 10% MOBA 1 Games 3% Web 2 Games 7%

MMO 35 Games 62% Casual 8 Games 13% FPS 5 Games 10% MOBA 1 Game 2% Web 7 Games 13%

Note: some game were served in more than one country MMO 20 Games 59% Casual 4 Games 12% FPS 4 Games 12% MOBA 1 Game 3% Web 5 Games 14%

Current Portfolio

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Agenda

Overseas

 Singapore  Malaysia  Indonesia  Philippines  Indochina

Domestic

Thailand

Total Revenue Structure

68% 70% 66% 57% 54% 32% 30% 34% 43% 46% 2009 2010 2011 2012 2013 Domestic Overseas
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Agenda

Historical Performance 2009 - 2013

Unit: Million Baht FY2009 FY2010 FY2011 FY2012 FY2013 FY2012 FY2013 1,472.70 1,539.61 1,684.52 2,016.32 1,714.77 ▲ 19.7% ▼ 15.0% 999.50 1,082.60 1,112.30 1,154.87 927.57 ▲ 3.8% ▼ 19.7% 473.10 457.01 572.22 861.45 787.20 ▲ 50.5% ▼ 8.6% < By Business Type > 1,195.30 1,359.60 1,515.83 1,661.97 1,529.91 ▲ 9.6% ▼ 7.9% 216.80 124.40 91.97 277.68 114.89 ▲ 201.9% ▼ 58.6% 60.50 55.70 76.70 76.67 69.97 ▼ 0.0% ▼ 8.7% 822.60 793.50 900.58 1,124.35 1,156.94 ▲ 24.8% ▲ 2.9% 650.10 746.10 736.99 847.59 528.55 ▲ 15.0% ▼ 37.6% 44.10% 48.50% 45.01% 42.98% 31.36% SG&A 374.20 378.90 418.95 513.40 480.05 ▲ 22.5% ▼ 6.5% 25.41% 24.61% 24.87% 25.46% 28.00% 275.90 367.20 364.96 378.56 77.79 ▲ 3.7% ▼ 79.5% 18.73% 23.85% 21.67% 18.77% 4.54% 178.50 264.47 296.41 293.98 51.94 ▼ 0.8% ▼ 82.3% 12.10% 17.20% 17.60% 14.58% 3.03% 0.60 0.87 0.97 0.96 0.17 Others COGS Gross Profit % GP % SG&A EBIT % Growth % EBIT Net Profit % NP Basic EPS (Baht) Revenue < By Region > Domestic Overseas Online Distribution
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Revenue by Business (Yearly)

Unit: THB mn

Online Revenue - 7.9 % Y-Y

Distribution - 58.6 % Y-Y

Other Revenue - 36.3 % Y-Y Advertising 26.0 % Y-Y

1,515.83 1,661.97 1,529.91 91.97 277.68 114.89 29.77 32.29 40.68 46.95 44.38 29.29 45.0% 43.0% 31.4%
  • 500.00
1,000.00 1,500.00 2,000.00 FY11 FY12 FY13 Online Income Distribution Income Advertising and Other Income Other Revenues %Gross Margin

1,684.52 2,016.32 1,714.77

15.0% Y-Y

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Launched2012

Game launched in 2013 and 2012

Genre

Launched 2013

Game Genre Actual Planned

MMORPG

8 20

Casual

1 2

FPS

  • 2

WEB

1 5

Total

10 29

Actual Planned

8 11 4 6

  • 1

4 4 16 22

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Agenda

Revenue by business

Online Income 89% Distribution Income 7% Advertising 2% Other 2%

2013 2012 2011

Online Income 82% Distribution Income 14% Advertising 2% Other 2% Online Income 90% Distribution Income 5% Advertising 2% Other 3%
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Agenda

Revenue Breakdown by Genre

  • Revenue contribution from FPS YoY increased
from 4.3% to 13.7% of total revenue. MMORPG 68.2% Casual 16.9% FPS 13.7% Web game 1.1% MOBA 0.0% MMORPG 72.5% Casual 18.9% FPS 4.3% Web game 4.2% MOBA
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COGS Analysis

FY13 COGS FY12 COGS

2.9% Y-Y

Total COGS is THB 1,156.93 mn Total COGS is THB 1,124.35 mn

Royalty Fee 52% Employee Expenses 18% Direct Cost 9% Network Service 10% Depreciation 3% Other Cost 8% Royalty Fee 55% Employee Expenses 16% Direct Cost 13% Network Service 10% Depreciation 3% Other Cost 3%
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SG&A / Total Sales (Yearly)

Unit: THB mn
  • 6.5% Y-Y

%

418.95 513.4 480.05 24.87 25.46 28.00

23.0 23.5 24.0 24.5 25.0 25.5 26.0 26.5 27.0 27.5 28.0 28.5 0.0 100.0 200.0 300.0 400.0 500.0 600.0 2011 2012 2013 SG&A SG&A/Total Sales
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Agenda

Thai

  • 22 games
  • 79 MB

English

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and place your

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Write-off by Market

  • 5 games
  • 11 MB
  • 10 games
  • 10 MB
  • 3 games
  • 6 MB
Thai = ASC , Funbox ,PCG / English = ASO , ASM / Chinese = CIB / Others = TLC ,PT

Total 2013

  • 40 games
  • 106 MB

Total 2012

  • 40 games
  • 106 MB
  • 10 games
  • 40 MB
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Agenda

Net Profit (Yearly)

Note: Net Profit attributable to equity holders of the parent Unit: THB mn
  • 82.3% Y-Y

296.41 293.98 51.94

17.60% 14.58% 3.03%
  • 50.00
100.00 150.00 200.00 250.00 300.00 350.00

FY11 FY12 FY13

Net Profit Net Profit Margin
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Agenda

Balance Sheet Structure

ASSET 2,045

Unit: THB mn

EQUITY 1,401 LIABILITIES 644 ASSET 1,741 EQUITY 1,218 LIABILITIES 523

Dec 31, 2012 Dec 31, 2013 %Chg Assets 2,045 1,741
  • 14.8%
Liabilities 644 523
  • 18.8%
Equities 1,401 1,218
  • 13.1%
D/E Ratio 0.45 0.43 Current Asset 799 Non- Current Asset 942 Current Lia. 457 Non-curent Lia. 56

Total Assets

Total Liabilities Total Equity

Share Premium 797 Return Earning 10 Non Controlling 104 Registered Paid-Up 307
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Agenda

Summary 2013

Intense MOBA Competition Strong Mobile Competition 19 Games Postponed Major Write-Off Reduced Revenue and Profit

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2014 Outlook

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Agenda

What is happening in 2014

  • eSports games continue to overwhelm the

gaming community;

  • MMO Gamers playing ignore small games and

try big titles;

  • Mobile gaming becoming overly crowded and

saturated;

  • Developers work with regional publishers

instead of individual country publisher;

  • Gamers are getting more creative with their own

content creation.

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Agenda 2014 Outlook

Grow Group revenue by 25% Grow mobile revenue contribution to 5 %

Grow eSports & MOBA revenue contribution to 5%

*Excluded Level Up Inc. (PH)

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2014 Strategy

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Agenda

Strategy 2014

eSports & MOBA Global Regional Contents Mobile Contents Territory Expansion Total Online Entertainment

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eSports & MOBA

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Agenda 2014/3/3 eSports & MOBA

Genre: MOBA Developer: Neoact Launch: 2013 Countries of Operation: SEA About: Chaos Online is a competitive 5 versus 5 MOBA game. There are over 65 unique heroes from the two different
  • factions. Players can choose their role to be
either a Tanker, Initiator, AD Dealer, Nuker or Supporter. Genre: MOBA Developer: S2 Games Launch: 2014 Countries of Operation: SEA About: Strife is the Premier Second Generation free-to-play Multiplayer Online Battle Arena (MOBA), created from ground-up by the developer of Thailand's #1 MOBA, Heroes of Newerth.
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Agenda eSports & MOBA

  • Establish eSports infrastructure:
  • Online and Offline Tournaments / Championships
  • Online Webcast / Shout cast
  • Asiasoft Twitch TV / Youtube Channel
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Global / Regional Content

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Agenda 2014/3/3 Regional Content

Genre: MMORPG Developer: Sony Online Entertainment Launch: 2014 Countries of Operation: SEA About: DC Universe™ Online SEA allows players to enter the renowned DC Universe™ as an active force for good or evil where they will battle alongside their favourite iconic heroes and villains such as Superman, Batman, Wonder Woman, Circe, Lex Luthor and the Joker. Genre: MMORPG Developer: SEGA Launch: 2014 Countries of Operation: SEA About: Phantasy Star Online 2 is sequel to pioneer MMORPG Phantasy Star Online, which features revolutionary combat in action-driven amd immersive sci-fi fantasy setting.
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Agenda 2014/3/3 Legacy Content

Genre: MMORPG Developer: mGames Launch: 2014 Country of Operation: THAILAND About: Yulgang 2 is the sequel of the hit MMORPG Yulgang, which is based on popular Korean manhwa (comic) series by Jeon Geuk-Jin and Yang Jae Hyun. Genre: MMORPG Developer: ESTSoft Launch: 2014 Countries of Operation: SEA About: Developed using highly acclaimed Crytek engine, Cabal 2 is the highly anticipated sequel to Cabal, one
  • f Asiasoft's megahit in Thailand,
Singapore and Malaysia. Type: Casual MMO Game Developer: HANBISOFT Launch: 2014 Operate: SEA About: World in Audition is the latest iteration of casual rhytmn-dance
  • nline game, Audition Online, another
hit published by Asiasoft in the region.
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Agenda 2014/3/3 Distribution

Type: MMORPG Developer: Blizzard Entertainment Launch: 2014 Countries of Distribution: Thailand, Singapore, Malaysia, Philippines About: Warlords of Draenor is the upcoming expansion of World of Warcraft, which will celebrate its 10th anniversary this year. Genre: RPG Developer: Blizzard Entertainment Launch: 2014 Countries of Distribution: Thailand, Singapore, Malaysia and Philippines About: Reaper Of Souls is the expansion of hit action RPG, Diablo III, which will feature new single player chapter, new class (Crusader), new game modes (Adventure) and highly improved game system.
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Mobile Games

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Agenda

South East Asia “Big 6” Countries Official AppStore (iOS + GP) Estimates: Revenue:

  • ~ US$580k / Day (Estimated)
  • ~ US$17.4m / Month (Derived)
  • ~ US$212m / Year (Derived)

Downloads:

  • ~ 7.3m / Day (Estimated)
  • ~ 219m / Month (Derived)
  • ~ 2,664.5m / Year (Derived)

Launching an App in English on iOS + GP in SG, MY, PH will capture an estimated 60% of the SEA Market Revenue Share

Source: AppAnnie, Oct 2013 Daily Estimates. File Ref: Mobile Analytics – SEA Top Genres 21.7% 13.2% 5.4% 16.6% 9.3% 2.0% 9.6% 8.7% 1.4% 7.7% 3.6% 0.9% USD 0 USD 20,000 USD 40,000 USD 60,000 USD 80,000 USD 100,000 USD 120,000 USD 140,000 USD 160,000 USD 180,000 USD 200,000 Singapore Malaysia Philippines Thailand Indonesia Vietnam English Local

Market Size (Daily Revenue)

iOS Google Play 2.2% 2.9% 4.1% 10.3% 2.5% 8.7% 2.4% 12.2% 12.3% 21.3% 17.7% 3.4% 500,000 1,000,000 1,500,000 2,000,000 2,500,000 Singapore Malaysia Philippines Thailand Indonesia Vietnam English Local

Market Size (Daily Downloads)

iOS Google Play

Market Situation – Market Size

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Agenda

  • Market Revenue Split

Across Thousands of Apps & Publishers

  • Low Ranked Apps suffer

from Discovery Problems

  • As App Discovery is difficult
  • Those Apps Generate Little

Revenue

  • Top Ranked Apps Take

Lion’s Share of Revenue

  • Top 20: 50% Rev
  • Top 21-50: 15% Rev
  • Top 51-100: 10% Rev
Gross Revenue Top 20 Apps Top 50 Apps Top 100 Apps Top 1000 Apps Singapore USD 78,795 USD 112,341 USD 136,149 USD 182,645 Malaysia USD 64,181 USD 83,067 USD 97,367 USD 127,532 Philippines USD 16,754 USD 21,722 USD 26,265 USD 39,105 Thailand USD 77,861 USD 97,694 USD 111,578 USD 141,394 Vietnam USD 7,650 USD 9,454 USD 11,016 USD 16,968 Indonesia USD 36,481 USD 46,689 USD 54,692 USD 74,923 Source: AppAnnie, Oct 2013 Daily Estimates. File Ref: Market-Sizing

Market Situation – Top Grossing Takes All

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Agenda Ragnarok on mobile

  • Download 3

Million times

  • Top chart on iOS
  • Breakeven in 1

month

Mobile content extending from our existing games proven to be a viable model. We’re targeting to launch at least 3 mobile games in FY2014

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Territory Expansion

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Agenda

Asiasoft as preferred SEA Publisher

  • AAA Developers (e.g. Blizzards, S2 Games, SOE, SEGA) understands the value of working

with AsiaSoft as the premier SEA Publishers that allow them:

  • Single window of contact;
  • Regional marketing and product engagement;
  • Speed to market.
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Agenda Acquisition of Level Up! Inc.

Transaction Details

Purchase Price

  • Approx. USD 4.2 million (THB 126

million) Transaction Structure

  • Purchase of 100% of outstanding shares
  • f Level Up!

Source of Fund

  • Working Capital of Company

Benefit to AS

  • Provide immediate market share of The

Philippines online game market

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Agenda

Strong relationship with top developers around the world Capability of identifying suitable games for local market Elite team with proven track record

Company Overview

Highlights Gaming Community Complementary Strength

Localized, unified, and branded platform Introduced the first MMORPG to the local market Published Ragnarok Online – the game that started the online gaming craze in 2003 Led the local online gaming business with 50+% market share 41 million registrations ever Approximately 1 million active users Publisher of 4 out of the top ten games in the country Diverse game portfolio Expertise in content longevity management Well developed billing and prepaid card service Dynamic off-line marketing networks

Content sourcing expertise

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Agenda

Philippine Market Profile

Internet User Trend

25 50 75 100 56 2013 49 2012 42 2011 36 2016 69 2015 62 2014 Non-Gamer Internet Users Online Gamers 25 50 75 100 76 2014 64 2013 53 2012 44 2011 36 2016 91 2015 SNS FPS MMORPG

Online Gaming Market Forecast

Millions USD in Millions  The size of the Philippines online game market is estimated to reach $90.5 million in 2016
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Agenda

Game in Portfolio in Philippine ASC Level Up!

Sudden Attack AVA Chaos Maple Story FCM Audition Grand Chase Assault Fire Point Blank Cabal Ran Online Rohan RO Perfect World Bounty Hound Eligium Flyff Hex

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Total Online Entertainment

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Agenda

ASIASOFT

a leading digital and

  • nline entertainment

company in South East Asia with dominating market share in Thailand, Singapore, Malaysia and convening Vietnam, Indonesia and Philippines.

Total Online Entertainment

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Agenda

124m

1 in 7 in South East Asia

6 Countries

Thailand, Singapore, Malaysia, Vietnam, Indonesia, Philippines

13 years

In Providing Online Entertainment

Total Online Entertainment

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Agenda Total Online Entertainment

Cross Platform (Mobile, Tablet, PC, TV) TH/SG/MY/PH/VN/ID (124M Registered Users)

Cloud Infrastructure Unified Payment Infrastructure

Entertainment Other Education Game

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