Asiasoft Corporation PLC. (AS) Opportunity Day FY 2014 11 March 2015 - - PowerPoint PPT Presentation

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Asiasoft Corporation PLC. (AS) Opportunity Day FY 2014 11 March 2015 - - PowerPoint PPT Presentation

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Asiasoft Corporation PLC. (AS) Opportunity Day FY 2014 11 March 2015 1 Disclaimer 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 an

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Asiasoft Corporation PLC. (AS)

Opportunity Day FY 2014

11 March 2015

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Disclaimer

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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 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 or 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
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Market Overview 2014 Asiasoft Overview in FY2014 Asiasoft Performance in FY 2014 Asiasoft Moving Forward 2015

Agenda

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Market Overview

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Online Game Publishers Breakdown by Market

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Remark: All games are shown including only PC games, excluding mobile games

Market

  • No. of Game
  • No. of Publisher

New 2014 Closed FY 2014 New 2014 Closed FY 2014

Thai

47 71 158 8 2 53

Singapore

24 6 40 1 1 14

Malaysia

15 9 129 2 37

Vietnam

173 181 190 20 20 49

Philippines

11 6 43 1 9

Total

270 273 560 32 23 162

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SLIDE 6 26 Companies (6 new companies) (3 close Company)

2009 2010 2011

TOTAL: 78 Games 111 Games 129 Games 165 Games 196 Games 158 Games

2012

32 Companies (8 New companies) (1 close company)

1

34 New Games 44 New Games 61 New Games 27 New Games 32 Companies (5 New companies) (5 close company) 75 New Games

2013

40 Companies (11 New companies) (3 close company) 47 Companies (10 New companies) (3 close company) 47 New Games

2014

2 3 4 5

53 Companies (8 New companies) (2 close company)

6 Online Game Publishers in Thailand

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SLIDE 7 20 40 60 80 100 120 140 160 180 200 2011 2012 2013 2014

Total Online Games 2011 – 2014

129 165 196 158

Total Online Games Y2011-Y2014

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Game Genres 2012 - 2014

75 72 2 6 54 88 23 18 11 12 59 6 68 12 13

Total Online Games Breakdown Each Genre

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Total New Online Games 2013 – 2014

41 18 22 20 3 5 5 2 2 4

Total New Online Games

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FPS & MOBA occupied over 50% of total market 47,286 (14%) 25,433 (7%) 80,908 (23%) 50,140 (15%) 16,405 (5%) 126,200 (36%)

Cute MMORPG Hardcore MMORPG Casual FPS/TPS Web Game MOBA

Thailand PC Online Game Estimated Market Share

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SLIDE 12 12

Number One Market Share In MMO & Casual

Asiasoft, 37% Garena, 29% Other, 33%

Asiasoft Garena Other

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SLIDE 13
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What happened in 2014

  • Mobile gaming revenue grows at exponential rate
  • Declining online games revenue
  • MMO Gamers playing more games and becoming

very selective in the game they play

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SLIDE 15

Asiasoft Overview

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SLIDE 16 Type: MMORPG From: USA Launch: July 2014 Operate: Regional

Quarter 2 Quarter 3

Type: MMORPG From: Korea Launch: Aug 2014 Operate: TH Type: MMORPG From: USA Launch: Aug 2014 Operate: Regional

New Game Launch 2014

Domestic

Type: Mobile From: Korea Launch: Jan 2014 Operate: TH

Quarter 1

16

Type: MMORPG From: Japan Launch: May 2014 Operate: TH

Quarter 2 Quarter 2

Type: Mobile From: Korea Launch: Nov 2014 Operate: TH

Quarter 2 Quarter 4

RO Mobile PSO2 DCUO YG2 Strife Advance Dino

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Oversea

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Type: MMORPG From: USA Launch: July 2014 Operate: Regional

Quarter 2 Quarter 3

Type: Mobile From: Korea Launch: Aug 2014 Operate: SG/ MY Type: MMORPG From: USA Launch: Aug 2014 Operate: Regional

New Game Launch 2014

Type: Mobile From: China Launch: Mar 2014 Operate: MY

Quarter 1

Hero Touch

Quarter 2 Quarter 2 Quarter 2 Quarter 4

DCUO

For the Tribe

Type: Mobile From: Korea Launch: Nov 2014 Operate: TH Type: MMORPG From: Japan Launch: May 2014 Operate: SG/MY/ID/VN Type: Web Game From: China Launch: Apr 2014 Operate: MY

KH

Type: MMORPG From: China Launch: 2014 Operate: MY Type: MMORPG From: China Launch: May 014 Operate: MY

LYSS The Four

Type: Casual From: Korea Launch: 2014 Operate: SG/MY
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SLIDE 18

Games Title Operated in 2014

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At the end of 4Q14, AS group operates 35 online game titles in 6 countries:

  • Thailand

19 Titles

  • Singapore

11 Titles

  • Malaysia

12 Titles

  • Indochina

8 Titles

  • Indonesia

4 Titles

  • Philippines

9 Titles

Note: some game were served in more than one country MMORPG 21Games 60% Casual 6Games 17% FPS 3Games 8% MOBA 2Games 6% Web-Based 1Game 3% Mobile 2Games 6%

29 Titles 9 Titles 20 Titles 6 Titles 2 Titles 2 Titles

Total 35 Games 56 Games

Y2013 excluding LUI

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SLIDE 19 MMO 12Games 63% Casual 2Games 10% FPS 1Game 5% MOBA 2Games 11% Mobile 2Games 11% MMO 21Games 60% Casual 6Games 17% FPS 3Games 8% MOBA 2Games 6% Web-Based 1Games 3% Mobile 2Games 6%

4Q14 Portfolio

Note: some game were served in more than one country

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MMO 13Games 50% Casual 6Games 23% FPS 3Games 11% MOBA 2Games 8% Mobile 1Games 4% Web 1Games 4%
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Asiasoft Performance

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Total Revenue Structure

Thailand

  • Plus Sublicense

revenue in Vietnam Singapore Malaysia Indonesia Philippines Indochina

Domestic Overseas

68% 70% 66% 57% 54% 52% 32% 30% 34% 43% 46% 48% 2009 2010 2011 2012 2013 2014 Thailand Overseas

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Total Revenue Breakdown

GROUP

DOMESTIC OVERSEAS

Total Revenue is THB 1,262 mn

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Online Income 87% Dist 6% Ads. 4% Other 3% Online Incom e 71% Dist 12% Ads 16% Other 1% Online Income 87% Dist 7% Ads 3% Other 3%

DOMESTIC OVERSEAS

Online Income 92% Dist 7% Ads 1% Online Income 75% Distribution 9% Advertising 10% Mobile 4% Other 2% Online Income 89% Distribution 7% Advertising 2% Other 2%

Total Revenue is THB 1,713 mn

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SLIDE 23

2014 Group Cost Breakdown

COGS

Total COGS is THB 1,218 mn

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Royalty Fee 46% Employee Expenses 15% Direct Cost 6% Network Service 8% Depreciation 4% Write-off Game Licensing 21%

SG&A

Total SG&A is THB 521 mn

Write Off in licensing 256,896,587 Loss on impairment of investment 11,631,049 Loss on impairment of goodwill 94,205,225

Employee Expenses 28% Advertising Expenses 6% Promotion Expenses 7% Travelling Expenses 3% Utilities Expenses 3% Advisory and Professional Fee 7% Depreciation 3% Rental and Center Service Fee 7% Other Selling Expense 36%
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SLIDE 24

Total Revenue Structure

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  • AS tried to increase its income from other sources to diversify source of income. In

2014, revenue from distribution income increased from 7% to 9%.while Advertising income increased from 2% to 10%.

Online Income 89% Distribution 7% Advertising 2% Other 2% Online Income 75% Distribution 9% Advertising 10% Mobile 4% Other 2%
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Revenue Breakdown by Genre

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MMO 65% Casual 19% FPS 15% MOBA 0% Web- Based 1% MMO 66% Casual 16% FPS 13% Web- Based 0% MOBA 0% Mobile 4%
  • Mobile revenue (RO Mobile) contributed of 4% of total revenue in 2014.
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Top 5 Online Games by Revenue

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1 2 3 4 5 1 2 3 4 5

  • Top 5 games accounted for 58% of total revenue.
  • First introduce Mobile game in 2014. Mobile revenue (RO Mobile) contributed to 4%

total revenue in 2014.

10

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1st Rank in IOS Free App within 1st day launch. 3rd Gross Rank when update new patch on 25 Mar. 2014 on PlayStore and 4th Gross Rank

  • n AppStore

Success Story

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SLIDE 28

1,800,000 since Jan 2014

Update on 6/11/14

100,000 200,000 300,000 400,000 500,000 600,000 iOS Android AS APK DTAC

Total Downloads

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SLIDE 29

Total Revenue

2,016 1,713 1,262 % 29

Unit: THB mn 1,661.97 1,529.9 997.9 277.7 114.9 110.4 32.3 40.7 124.5 44.4 27.7 29.2 43.0% 31.4% 1.2%
  • 100%
  • 80%
  • 60%
  • 40%
  • 20%
0% 20% 40% 60% 80% 100% 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2012 2013 2014 Online Revenue Distribution Advertising and Other Other Revenues Gross Margin

26% / - 451M. Y-Y

  • Online revenue showing a decreased 532 Million Baht or dropped 35% from last year.
  • Higher Advertising Revenue contributed by newly acquired LUI and Thinkplus Digital
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SLIDE 30 30

Domestic Market Highlights

Revenue decrease YoY

  • Domestic revenue drop due to significantly revenue shortfall as a

result of decreasing online revenue.

247.94 191.53 164.70 145.57 154.14 50 100 150 200 250 300 4Q13 1Q14 2Q14 3Q14 4Q14

Domestic

Domestic Unit: THB mn
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Overseas Market Highlights

Revenue decrease YoY

  • Overseas revenue dropped mainly from Singapore as a result of

decreasing online revenue.

154.21 173.07 155.10 144.79 133.26 20 40 60 80 100 120 140 160 180 200 4Q13 1Q14 2Q14 3Q14 4Q14

Oversea

Oversea Unit: THB mn
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SLIDE 32

Performance of ARPU

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  • Avg. APAs
(users) Quarterly ARPU (baht)

Blend

100 200 300 400 500 600 700 800 900 50,000 100,000 150,000 200,000 250,000 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Unique Refilled Quarterly ARPU
  • Unique refilled increased due to acquired LUI in Philippine since Q2’14.
  • ARPU is increasing from THB 400 in 2009 to THB 600-780 in 2014 or more than 90%
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COGS / Total Sales

Unit: THB mn

Total COGS is THB 1,218 mn

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Royalty Fee 46% Employee Expenses 15% Direct Cost 6% Network Service 8% Depreciation 4% Write-off Game Licensing 21%

5% / 61M. Y-Y

COGS has increased due to higher write off and impairment provision for game license:
  • 2013: 106MB
  • 2014: 257MB
This is partially offset by savings in network and staff costs 17.2 % and 17% respectively. 1,124.4 1,156.9 1,218.2 55.8% 67.5% 96.5%
  • 100.0%
  • 50.0%
0.0% 50.0% 100.0% 150.0% 1,060.0 1,080.0 1,100.0 1,120.0 1,140.0 1,160.0 1,180.0 1,200.0 1,220.0 1,240.0 2012 2013 2014 COGS COGS
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9% / 41M. Y-Y

SG&A / Total Sales

Unit: THB mn

Total Selling Exp. is THB 91.2mn Total Admin. Exp. is THB 430.3 mn

% 34

Employee 22% Others 5% Commissio n 0% Marketing 73% Employee 29% Rental and Center Services 9% Dep. 4% Others Selling 58% 513.40 480.05 521.54 25.5% 28.0% 41.3% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 450.0 460.0 470.0 480.0 490.0 500.0 510.0 520.0 530.0 2012 2013 2014 SG&A SG&A/Total Sales SG&A has increased mainly due to:
  • impairment provision of goodwill in CIB (-94MB)
  • impairment provision for investments & loans to PTA / ASM /
Funbox / PCG This is partially setoff by lower network and staff expense.
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Net Profit

Unit: THB mn

%

Note: Net Profit attributable to equity holders of the parent

35

293.98 51.94
  • 390.68
14.6% 3.0% (31.0%)
  • 40.0%
  • 30.0%
  • 20.0%
  • 10.0%
0.0% 10.0% 20.0%
  • 500.0
  • 400.0
  • 300.0
  • 200.0
  • 100.0
0.0 100.0 200.0 300.0 400.0 2012 2013 2014 Net Profit Net Profit

Net Profit decrease YoY mainly due to:

  • Online revenue dropped 27% (approx. 451MB lower) compared to last year.
  • COGS increase 4% compared to last year mainly due to high write off impairment 257MB (2013:106MB)
  • Write-off and provision on license for unsuccessful and loss on investment and goodwill 363 MB.
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SLIDE 36 36

Operating Profit

Unit: THB mn

Year 2014 Amount Total Revenue % to total Revenues

  • 1. Loss on Investment

11.6 MB.

1,262 MB

0.9%

  • 2. Loss on Goodwill

94.2MB. 7.4%

  • 3. Write Off

257.0 MB. 20.4% Total

  • 363 MB.

28.7%

NP

  • 391 MB.

NP % = -31% NP (Excluding 1-3)

  • 28MB.

NP (Adjust) % = -2.2%

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SLIDE 37 Unit: THB mn

% 37

Net Profit excluding impairment

339.96 157.69
  • 27.78
16.9% 9.2% (2.2%)
  • 100.0%
  • 80.0%
  • 60.0%
  • 40.0%
  • 20.0%
0.0% 20.0% 40.0%
  • 50.0
0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 2012 2013 2014 Net Profit Net Profit Margin

Group Operating loss at 28 Mio. Baht, ASC Thailand profit at 52 Mio. Baht

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SLIDE 38

Balance Sheet Structure

ASSET 1,741 EQUITY 1,218 LIABILITIES 523 ASSET 1,292 EQUITY 759 LIABILITIES 533

Dec 31, 2013 Dec 30, 2014 %Chg Assets 1,741 1,292
  • 26%
Liabilities 523 533 2 % Equities 1,218 759
  • 38 %

38 Asset

Current Asset 547 Non-Current Asset 745

Liabilities

Current Liabilities 36 Non-Current Liabilities 496

Unit: THB mn Unit: THB mn

Equity

Share Premium 797 Registered Paid-Up 307 Non Controlling 35 Return Earning

  • 380
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Cash flow Statement

39

2014 2013

Net Cash from Operating

181.56 333.46

Net Cash from Investing

  • 302.22
  • 231.14

Net Cash from Financing

41.28

  • 238.32

Cash and Cash Equivalent

153.05 225.52

Unit: THB mn
  • AS Group continue generated Positive Operating cash flow
  • AS Group continue investing in 2014, acquired no. 1 Game Publisher in Philippines

market

  • AS Group continue investing in Mobile Games platform
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FY 2014 Highlights

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Revenue decrease YoY

  • Fewer games in operation in 2014 due to closure of unprofitable games over

past 12 months.

  • Online revenue dropped due to weak performance from existing games.

Net Income decreased YoY

  • Net Profit significantly dropped to -391 MB. mainly due to
  • Revenue dropped from all Business Unit result intensive of competition.
  • COGS increased due to the provision for impairment for PC games

amounting 257 Million Baht.

  • SG&A increased due to impairment provision for the goodwill on

investment in subsidiary companies amounting 106 Million Baht.

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SLIDE 41 41

Lean Operation, Shared Networking Cost Saving

  • Thai operations consolidated under ASC after ceasing
  • peration of Funbox, and scaling down PCG/TCG.
  • Overseas shared operational team to support profitable

games.

  • Success cost saving in lean organization 66 Mio. Baht or

17% cost less than 2013

  • Group IT infrastructure saving 19MB. or 17% less than

2013 in networking and prepared Mobile platform.

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Asiasoft Moving Forward

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Total Online Entertainment

142m

1 in 5 in South East Asia

6 Countries

Thailand, Singapore, Malaysia, Vietnam, Indonesia, Philippines

13 years

In Providing Online Entertainment

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Total Digital Entertainment

Growth Through Acquisition

  • Expand Business

Mobile Platform Total Digital Entertainment

  • Game Application & Services
  • Mobile Platform - Playpark
  • All Entertainment through

internet

  • PC Game
  • Mobile Game
  • SEA Games Contents

TH, SG, MY, VN, PH, ID

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SLIDE 45
  • Focus on Mobile Game with target launch 8-10 mobile games in 2015.
  • Target 30% from Mobile revenue.
  • Launching mobile games under Playpark Mobile Games Platform.
  • Integrate games with LINE, the largest social network application in Thailand.
  • eSports games continue to overwhelm the gaming community.

Focus on Mobile Game

UI Mockup – Featured Page

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Recruit new users Retain existing customers Marketing tool Business Model: Revenue

sharing, Advertising (CPI, CPA)

Objectives

Mobile PlayID, Guest ID login

Ranking Achievement and Reward

Mission / Quest

Social Share Key Features Refill

@Cash and Partner Channel

Playpark Mobile Games Platform

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Pal +

Project Description

Pal+ is the project that developed by Cubie team from the previous chat app called “Cubie”. Pal+ is the forum & chat mobile app which target to mobile users. It’s the forum community app to meet new friends and share experiences of their gaming and other interests’ lifestyle in many variety boards in categories such as Games, Anime, Manga, Cosplay, Movie, Music, Sports, Entertainment etc. Pal+ is available for both iOS and Android platform.

Business Direction

From current Cubie No. of download 2.8 Millions, which we currently have active users for 250,000 – 280,000. We want to create the community of Gamers’ interests lifestyle and leverage to the mobile gamers’ platform for meet up, talk, read and write topics, find new friends & download mobile games to play

Design Mock ups : User Interface design

Ready to Launch Android + iOS Q2’15

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New Game Launch Plan

Domestic

Title : Audition World Genre: Casual Launch: Feb-Mar 2015

1Q 2015 2Q 2015

Title: Heart Castle Genre: Mobile Launch :Q2 2015

Overseas

Title: Onimusha Soul Genre: Mobile+Web Launch :Q2 2015 Title: Dragonica Genre: Mobile Launch :Q2 2015 Title: Heart Castle Genre: Mobile Launch :Q2 2015 Title: Dragonica Genre: Mobile Launch :Q2 2015 Title: Cabal II Genre: MMO Launch :Q2 2015 Title: Special Force II Genre: MMO Launch :Q2 2015

4 Mobile Games

Title:Hero of The Storm Genre: MOBA Launch :Q2 2015 Title: Destiny Thrones Genre: Mobile (Moba) Launch :Q2 2015
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