Asiasoft Corporation PLC. (AS) Opportunity Day 1Q 2013
22 May 2013 DisclaimerAgenda
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Page 2 AgendaAgenda
Overview and Q1 2013 Results
Thailand Market Highlights
Regional Market Highlights
Next Step 2013
Appendices
Page 3 Overview Asiasoft RegionalAgenda Coverage
Page 5 CurrentAgenda Portfolio
At the end of 1Q13, AS group operates 64 online game titles in 6 countries: Number of Games by Genre Web 7 Games • Thailand 36 Titles 11%
• Singapore 9 Titles FPS 7 Games • Malaysia 22 Titles (CIB 21 Titles) 11% • Indochina 7 Titles • Indonesia 3 Titles MMORPG • Philippines 2 Titles Casual 40 Games 10 Games 62% 16%
Page 6 Source: Some games are operated in more than one country Consolidated BusinessAgenda Highlights in 1Q13
• New Game Launch • Thailand (1): Pocket Ali (Jan) Funbox • Malaysia CIB (1): The Exorcist (Mar) • Singapore (1): RO2 (Jan)
• Distributed Product • Launch of StarCraft II: Heart of the Swarm on 12 March 2013
Page 7 PlayparkAgenda Game Portal Playpark Game Portal
MMORPG FPS CASUAL WEB MOBA BIZZARD
CHAOS ONLINE
Launch by
PlayCyberGames
Commercial Date: 29 May 2013
Page 8 Our ServiceAgenda : Game Top-Up
MMORPG & Casual Games
Fixed Price 7 SKU : 55, 89, 189, 245, 349, 450, 888 Shooting Games
Fixed Price
5 SKU : 50, 100, 300, 500, 1000
Partner Games Fixed Price 6 SKU : 50, 90, 150, 300, 500, 1000
Non-Fixed Price 50 - 10,000 Social Games
Page 9 Q1 2013 Results 1Q 2013 Highlights
Revenue increase YoY • Core-Revenues increased 14.6%YoY, mainly due to 2 new business units (Malaysia - CIB & Indochina - TLC) generated revenue for group about 65 MB (Million Baht)
Revenue from Overseas markets matching Domestic market • Revenue contribution from overseas markets increased from 35.0% to 49.6% YoY.
Net Income decreased YoY • GP% of Funbox and PT Asiasoft significantly dropped from 48.9% and 43.7% to -30.8% and -138.8%, respectively due to under delivery of revenue target. • GP% of new businesses included TLC and CIB are lower than group NP%. TLC of 16.9% mainly due to higher royalty and operating costs and CIB of 39.6% mainly due to higher operating costs.
Page 11 Total RevenueAgenda Structure
Domestic Overseas Singapore Thailand Malaysia
• Plus Sublicense Indonesia revenue in Vietnam Philippines Indochina
68% 70% 66% 57% 51% Thailand
43% 49% Overseas 32% 30% 34%
2009 2010 2011 2012 1Q13
Page 12 1Q13 Total RevenueAgenda Breakdown Advertising Others 2% 3% GROUP Distribution Income 10% Advertising Others 2% Distribution 2% Income 10% DOMESTIC
Online Income 85%
Others Distribution 1% Income 12%
Online Income 86% OVERSEAS
Online Income Total Revenue is THB 468.88 mn 87%
Page 13 1Q13 GroupAgenda Cost Breakdown
Selling Expenses
COGS Employee 25% Depreciation 3% Others Network and 3% Service 9% Others Marketing 3% 71% Commission 1% Direct Cost 12% Total Selling Exp. is THB 29.76 mn Royalty Fee 55% Administrative Expense
Employee Others Employee Expense 35% 45% 18%
Total COGS is THB 287.67 mn Rental and Center Depreciation Services 7% 13% Total Admin. Exp. is THB 85.64 mn Page 14 Revenue BreakdownAgenda by Genre
Web- Web-Based FPS Based FPS Web- 1.9% 12.1% FPS 7.0% MMORPG 11.6% Based MMORPG 67.7% MMORPG 5.2% Casual 1.1% 70.0% Casual Casual 70.3% 20.1% 17.3% 15.7%
• Revenue from FPS increase from 5.2% to 12.1% Y-Y
• Revenue from MMO increase from 67.7% to 70.3% Y-Y
Page 15 Total RevenueAgenda Trend
Unit: THB mn Growth of Total Revenue (Y-Y)
43.0% 23.6% 19.0% 7.1% -2.8% 2.8% 8.0% 11.6%
603.2 501.9 464.6 490.1 468.9 421.8 420.6 177.6 396.6 48.6 67.8 56.9 65.2 40.7 29.9 59.8
- 6.5 % Q-Q + 11.6 % Y-Y
381.1 366.7 407.7 360.8 425.6 422.3 453.3 403.7
2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
Online Income Other Rev.
Page 16 TotalAgenda Revenue
Unit: THB mn % 900 55
800
700 421 603 490 502 469 50
600 45.0 45.0 45 500 43.0 177 48 68 65 400 60 40 300 40.0 37.0
200 35 100 361 426 422 453 404 0 30 1Q/12 2Q/12 3Q/12 4Q/12 1Q/13
Online Revenue Other Rev. Gross Margin
Page 17 SG&A Agenda/ Total Sales
Unit: THB mn % 160 28.4 30.0 27.0 140 25.0 24.6 25.0 120 19.6 20.0 100
80 15.0 143 133 60 118 115 105 10.0 40 5.0 20
0 0.0 1Q/12 2Q/12 3Q/12 4Q/12 1Q/13
SG&A SG&A/Total Sales
Page 18 Net ProfitAgenda Trend
Unit: THB mn Growth of Net Income (Y-Y)
13.4% 17.2% 7.1% 4.1% 7.6% 5.7% -8.9% -29.1%
90.0 83.8
74.1 73.1 74.5 68.6 66.4
51.9
- 30.1% Q-Q -29.1% Y-Y
19.9% 17.1% 15.9% 17.4% 14.9% 13.6% 14.8% 11.1%
2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
Net Profit Net Profit Margin
Page 19 Note: Net Profit attributable to equity holders of the parent NetAgenda Profit
Unit: THB mn % 100 18.0 90 17.4 14.9 13.6 16.0 80 14.8 14.0 70 12.0 60 11.1 10.0 50 90.0 40 8.0 73.1 74.5 66.4 30 6.0 51.9 20 4.0
10 2.0
0 0.0 1Q/12 2Q/12 3Q/12 4Q/12 1Q/13
Page 20 Note: Net Profit attributable to equity holders of the parent Top 5 Online AgendaGames by Revenue
Pocket Yulgang Ninja 7% 7% Yulgang MapleStory 7% M.A.T 17% 9% MapleStory 25%
Cabal 8%
Dragon Nest Audition Audition 12% 15% 18%
• Top 5 Games accounted for 60% of total revenue compared to last year of 65%
Page 21 Balance SheetAgenda Structure
FY 2011 FY 2012 1Q 2013
2,045 1,401 1,996 1,434
1,869 1,318
Equity
Equity
Equity
s 551 s s 562
644
Asset
Asset Asset
Liabilitie
Liabilitie Liabilitie
Page 22 Thailand Market Highlights Thailand MarketAgenda Highlights
Revenue decrease YoY • Domestic revenue drop by 12% due to significantly revenue shortfall from FunBox as a result of decreasing online revenue of pocket ninja game, Q Tail online and HY2.
Net Income decreased YoY • GP% of Funbox dropped from 48.9% to -30.8% due to under delivery of revenue target; • ASC NP% is lower mainly due to lower margin packaged product sales from Starcraft II.
Despite decreasing revenue, Asiasoft maintained the market leadership with more than 30% overall market share (by CCU).
Page 24 1Q13 Online Game BreakdownAgenda by Game Type
Asiasoft/Funbox Asiasoft/Funbox TDE/NC True 35% 55% 5% Asiasoft/Funbox INI3 Digital Others Others 30% 5% 32% 17% Winner Online 10% MMOPRG CASUAL PlayInter 26% Winner Online TDE/NC True 0% Others Golden Soft 10% 25% 4% TDE/NC True INI3 Digital Winner Online 10% 7% 6% Winner Online PlayInter 12% 100% Others Asiasoft/Funbox 9% 16% INI3 Digital 21% Asiasoft/Funbox 13% MOBA Others FPS 63% Web Game PlayInter TDE/NC True 32% 34%
Page 25
RemarkProportion : base base on Average on Max Max CCU CCU end Q1/13of Dec 10 Online Game BreakdownAgenda by Game Type
MOBA WEB 7% 10% Market trends to shift to MOBA type
MMORPG Casual FPS WEB MOBA FPS MMORPG 21% 51% Casual 13%
Casual FPS 11% 19% MMORPG 39% Casual 11% MOBA 20% WEB MMORPG 9% 45% FPS 21%
Remark : base on Average Max CCU Q1/13
WEB MOBA 10% 13%
Page 26 1Q13 Top 5 Online GamesAgenda by Genre in Thailand
Everybody's Audition PANGYA Zone4 Mstar YulGang Ragnarok Dragon Nest ray city DK Online Marble
Special Force Point Blank xshot AVA S4League Boomz Pocket Ninja Atlantis Fashion Dream DivoSaga Warriors
• Asiasoft is taking lead in MMORPG & Casual Genre and are gaining market share in Web Games & FPS. • Asiasoft subsidiary, Play Cyber Game is launching “Chaos” in MOBA market in Q2 /2013 Heroes of League of Newerth Legends Page 27 Remark : base on Average Max CCU Q1/13 (except Fashion Dream based on Average Unique Viewer Q1/13) Regional Market Highlights Overseas Market Highlights
Revenue increase YoY • Overseas revenue increased by THB 65 million from contribution of 2 new business units (Malaysia – CIB & Indochina - TLC). • English market (ASO & ASM) generated increasing revenues with combined growth of 30%, contributed mainly by Ragnarok2 and Starcraft II sales
Net Income increase YoY • Overseas Profits increased by more than 16% YoY primarily due to the strong revenue and profit from the English market and also additional profit contribution from the 2 new businesses.
We’ve extended our overseas presence and revenue contribution from overseas increased significantly from 35% in 2012 to 49.5% this quarter, in line with our regionalization strategy.
Page 29 1Q13 Online Game AgendaBreakdown by Game Type
Other 10% Eagle IAH 18% 11% Other 21% Asiasoft Cherry MMORPG CASUAL Credits Asiasoft 29% 33% 47% Overall Cherry Cherry Credits NHN SG Credits Asiasoft 24% 47% 10% 23% Garena 27% DF Asiasoft interactive 2% 11% M1 Garena 11% 31% Web MOBA FPS Game IAH 12% Sea Viwawa Garena Gaming 100% 100% 33%
Page 30 1Q13 Top 5 Online GamesAgenda by Genre in Singapore
MMORPG (Total 8 games) Casual (Total 6 games)
MapleSEA Dragon Dragon Forsaken Fairyland 2 SD Audition High Street Fifa Online SuperStar Nest Saga SEA World Gundam 5 2 Live
FPS (Total 6 games) Web Game (Total 2 games/Portal)
World of Blackshot Counter Special Mission Viwawa Mahjong Tanks Strike Forces Against Webportal Hime Online Terror
Page 31 Source: Company’s data based on Q1 2013 Avg. Max CCU 1Q13 Top 5 Online GamesAgenda by Genre in Singapore
MOBA (Total 2 games)
Heroes of League of Newerth Legend
Page 32 Source: Company’s data based on Q1 2013 Avg. Max CCU 1Q13 Online Game AgendaBreakdown by Game Type
Other Cubinet on988 17% 6% 13% Runup Cubinet Koram 3% 6% 3% Koram Other 5% 22% MMORPG CASUAL Eagle CIB Game CIB 25% 51% 11% Overall CIB Asiasoft 36% 58% Asiasoft 44% Cubizone Other 0% Asiasoft 16% MyCNX 47% 25% Gameview 5% Web MOBA CIB FPS Game 53% RMS 15% GoPlayPlay 17% on988 Funnel 100% 22%
Page 33 1Q13 Top 5 OnlineAgenda Games by Genre in Malaysia
RO2 天龙八部 九阴真经 Cabal 西游释厄传 SDO-X2 ShowTime High Steps SEA Street 5
Mission Sudden Crazy Special Boomz Ninjawar Bubble 傲剑 GV神將 Against Attack Shooter Force DDT z Ninja 传奇 Terror Online Page 34 Source: Company’s data based on Jan - Mar 2013 Avg. Max CCU 1Q13 Online Game AgendaBreakdown by Game Type
WaveGame Orange 3% IAH Game 1% 6% Asiasoft 1% Kreon 63%
Lyto 15% modo 27% RPG Lyto 1% Kreon 27% Others 44% CASUAL Others 3% Lyto 6%Megaxus 4% WaveGame 2% Megaxus Prodigy 2% 5% Asiasoft 1%
TOTAL Others 23%
OrangeGa Megaxus 5% Kreon 62% Lyto 3% me 17% Winner 2% Orange Asiasoft 1% Others 25% Others 3% 32% WEB WaveGa FPS/TPS me 11% faveo prodigy 13% Kreon 87% 16%
• AS ID had no market share in web and casual game yet., moba is new segment in the market, ccu cant be measured detail yet. Page 35 1Q13 Top 5 Online GamesAgenda by Genre in Indonesia
Dragon Nest Atlantica heva online perfect 3 kingdom Lost Saga modo marble ayodance elsword idol street Online world
dynasty war ninja kita harvest moon pirate king crystal epic
Page 36 Next Steps New GameAgenda Launch in 2Q13
Shinchan Online : Cute Action MMO
The funniest action MMORPG from the hot hit anime ‘Crayon Shin-Chan'
From the popular Japanese cartoon, easy to play and contain a lot of mini game. launched Dates: 1th week April
Page 38 New GameAgenda Launch in 2Q13
Page 39 New GameAgenda Launch in 2Q13
From OFFLINE game such as CM, FM become FCM ONLINE
Asiasoft first online soccer management game!
launched Dates: CBT: 4th week June
Page 40 Appendices CompanyAgenda at a Glance
Company: Asiasoft Corporation Plc. (AS) Authorized Capital: THB 307,407,762 Foundation: September, 2001 Paid-up Capital: THB 307,407,762 1st Day Trading: 29 May 2008 Par Value: THB 1.00 Website: www.asiasoft.net Foreign Limit: 49% Employee: Approx. 950 (Dec 2012) Dividend Policy: At least 30.0% of net profit Territory: Thailand, Singapore, Malaysia, Business: Vietnam, Indonesia, and Philippines At the end of 1Q13, AS procures 64 online game titles CEO: Mr. Pramoth Sudjitporn (including 19 titles of CIB’s) operating in 6 countries: • Thailand 36 Titles Ownership: • Singapore 9 Titles • Malaysia 22 Titles (CIB 21 Titles) Individual • Indochina 7 Titles 19% • Indonesia 3 Titles Foreign • Philippines 2 Titles Institution Total 64 Titles 10% Services: Management MMORPG ● Casual Games ● FPS ● 71% Web Games ● Game Portal ● Music Online
Most of online games are free to play but users can purchase item in game to enhance the game experience. Some particular MMORPG will be charged by playing time. Page 42 Group StructureAgenda and Business Shareholder Structure:
Online Game Publisher 1. Founders 71.13% 2. Asia Investment 9.76% Paid-up capital THB 307.4 m Partners Limited Free Float 18.29%
99.99% 99.99% 59.99% 99.99%
Asiasoft International A Capital Co., Ltd. Playcybergames PlayPark Co., Ltd. Co., Ltd. (ASI) Co., Ltd. Paid-up THB 112.0 m Paid-up THB 20 m Paid-up THB 20 m Paid-up THB 5 .0m Investment Company Investment Company Online Game Publisher Game Portal & Entertainment Services on 99.99% 40% 30%
Thailand Websites
Thaiware Communication Funbox Co., Ltd. Cybergames Corporation Co., Ltd. Co., Ltd. Paid-up THB 40.0 m Paid-up THB 1.5 m Paid-up THB 1.0 m
Online Game Publisher Website Services Internet Gaming Services 100.00% 100.00% 61.68% 79.90%
Asiasoft Online Pte. Ltd. AS Online Sdn. Bhd. PT. Asiasoft (ASID) CIB Development Sdn. (ASO) (ASM) Bhd. (CIB)
Paid-up SGD 2 .0 m Paid-up RM 4.0 m Paid-up USD 1.0 m Paid-up RM 1.0 m Online Game Publisher Online Game Publisher Online Game Publisher Online Game Publisher in in Singapore in Malaysia in Indonesia Malaysia
60.00% Overseas Trilight Cove Enterprises Ltd. Paid-up USD 1 m Online Game Publisher in Indochina Page 43 HistoricalAgenda Investment
2001 2005 2007 2008 2011 2012
CIB (Malaysia) (61.68%)
ASID ASPH (Indonesia) (Philippines) (79.90%) (Branch Office) ASO Sublicensed ASM Funbox (Singapore) to CTCM (Malaysia) (Thailand) Thaiware (100%) (Vietnam) (100%) (99.99%) (Thailand) Playcyber (40%) games (Thailand) Cybergames (59.99%) (Thailand) (30%) Trilight (for Indochina) (60%)
Page 44 Genre ofAgenda Online Games
MMORPG Web Game Massively multiplayer online role-playing game is a genre Web Game played over the Internet using a web browser. of computer role-playing games in which a very large Browser games can be created and run using standard web technologies or browser plug-ins. Browser games number of players interact with one another within a virtual include all video game genres and can be single-player or game world. multiplayer. Browser games are also portable and can be played on multiple different devices or web browsers. Social Game A social network game is a type of online game that is played through social networks, and typically features CASUAL GAME multiplayer and asynchronous gameplay mechanics. Online game with cute, colorful cartoon Social network games are most often implemented as characters which is normally relatively easy to browser games, but can also be implemented on other play. Gamers do not need to spend long time or platforms such as mobile devices high skills to play and can usually finish the RTS game in a short period of time, thus making the game suitable for relaxation Real time strategy games offer an excellent blend of action and strategy. The majority of RTS games are played in a bird's eye or top down perspective allowing players easy navigation and jump around to control units and buildings across game maps and campaigns. Unlike turn based strategy games where you have the FPS ability to take your time, in real time strategy games, all First-person shooters are a type of 3D shooter game movement, construction, combat, research and more featuring a first person point of view with which the player are all occurring in real time. sees the action through the eyes of the player character. MOBA Multiplayer Online Battle Arena is a sub-genre of the RTS. The gameplay is characterized by single unit hero strategic combat between two small teams of players, each trying to destroy the opponent's base Page 45 ConsolidatedAgenda Performance
Unit : Million Baht
Items Q1Y12 Q4Y12 Q1Y13 YoY QoQ Total Revenues 420.54 501.84 469.13 ▲ 11.6% ▼ 6.5% Revenues 402.22 492.73 460.77 ▲ 14.6% ▼ 6.5%
Page 46 COGS and AgendaSG&A Breakdown
Unit : Million Baht % to Core Revenue Items Q1Y12 Q1Y13 %Change Q1Y12 Q1Y13 Royalty 138.56 165.93 34.4% 36.0% ▲ 19.7% Employee 40.07 51.50 10.0% 11.2% ▲ 28.5% COGS Network&Maintenance 16.79 26.95 4.2% 5.8% ▲ 60.5% Depreciation 7.52 9.70 1.9% 2.1% ▲ 29.0% Direct Cost 17.61 33.59 4.4% 7.3% ▲ 90.8% Total 220.55 287.67 54.8% 62.4% ▲ 30.4%
Unit : Million Baht % to Core Revenue Items Q1Y12 Q1Y13 %Change Q1Y12 Q1Y13 Employee 45.43 49.73 10.8% 10.6% ▲ 9.5% SG&A Marketing 24.14 20.88 5.7% 4.4% ▼ 13.5% Rental&Utilities 13.54 15.25 3.2% 3.3% ▲ 12.6% Depreciation 5.44 6.06 1.3% 1.3% ▲ 11.3% Others Selling 3.33 1.33 0.8% 0.3% ▼ 60.1% Other Administrative 13.44 22.16 3.2% 4.7% ▲ 64.9% Total 105.32 115.40 25.0% 24.6% ▲ 9.6%
Page 47