Asiasoft Opportunity Day Group Performance-Q3/2020 CONTENT 2
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Asiasoft Opportunity Day Group Performance-Q3/2020 CONTENT 2 01 Company Highlight Q3 02 Market and Industry outlook 03 Financial Information 04 Going Forward 05 Question and Answer 3 • 3 Games launch in Q3 2020 • Revenue reach Baht 1 Billion accumulate 9 months • Revenue increase 65% YoY in Q3 2020 • Gross Profit increase 76% YoY in Q3 2020 • Net Profit increase 183% YoY in Q3 2020 Market and Industry outlook GAME INDUSTRY OUTLOOK AFTER PANDEMIC 5 • The games market will to grow to $217.9 billion by 2023, representing a strong +9.4% CAGR between 2018 and 2023. This is up from previous forecast of $200.8 billion. (CAGR 7.7%) Reference from www.Newzoo.com 2020 GLOBAL GAME MARKET AFTER PANDEMIC 6 Reference from www.Newzoo.com SEA GAME MARKET STATISTICS 2019 7 Statistics Indonesia Malaysia Philippines Singapore Thailand Vietnam (by Million) Population 269.5 100% 32.5 100% 108.1 100% 5.9 100% 69.3 100% 97.4 100% Online Population 91 34% 27.6 85% 70.9 66% 5.1 86% 40.1 58% 55.4 57% Game Enthusiasts 62.6 23% 20.2 62% 46.7 43% 3.6 61% 30.4 44% 39.3 40% Gamers 55.1 20% 19.1 59% 43.4 40% 3.4 58% 27.8 40% 36.5 37% Paying Gamers 33.5 12% 10.3 32% 22.6 21% 1.5 25% 16.3 24% 21.4 22% Games Revenues (Million USD) 1,404 697 586 322 777 531** Annual Spend/Payer (Million USD) 42 68 26 212 48 25 YoY Growth 29.6% 10.2% 27.3% 0.9% 16.6% 12.4% ** Exclude Game Revenue From 3rd Party Reference from www.Newzoo.com SEA GAMERS PER SEGMENT 2019 8 Browser PC Games Downloaded/Boxed PC Games 49.5 Smartphone Games Tablet Games Console Games 38.6 34 24.2 23.4 23 21.7 Gamers (Million) 17.3 16.4 15.3 14.3 14.7 12.1 11.7 10.9 10.4 10.6 9.8 9.8 9.5 7.7 7.6 6.3 5.3 4.3 3.1 2 2 1.7 0.6 Indonesia Malaysia Philippines Singapore Thailand Vietnam Reference from www.Newzoo.com Financial Highlight GROUP PERFORMANCE Q3 COMPARISON 10 Unit : Million THB Q3/19 Q2/20 Q3 Q2 Q3 Items vs vs 2019 2020 2020 Q3/20 Q3/20 Revenue from Sales & Services 221.5 450.2 366.3 ▲65% ▼19% Cost of Sales & Services (101.0) (182.3) (153.9) ▲52% ▼16% Gross Profit 120.5 267.8 212.4 ▲76% ▼21% Gross Margin 54% 59% 58% ▲4% ▼1% SG & A Expense (85.1) (103.5) (93.4) ▲10% ▼10% SG&A% 38% 23% 26% ▼13% ▲3% Other Revenues 1.2 2.0 7.1 ▲499% ▲265% EBIT 36.6 166.2 126.1 ▲245% ▼24% % EBIT 17% 37% 34% ▲18% ▼2% Interest (0.4) (0.3) (0.3) ▼23% ▼18% Tax (0.1) (4.6) (7.4) ▼5288% ▲62% Share of other comprehensive income in associates (0.4) (0.8) 1.5 ▼440% ▼291% EBT (excl one time) 35.6 160.6 120.0 ▲237% ▼25% One Time Expenses (0.8) (29.6) 0.0 ▼100% - Loss on Impairment & write off intangible assets 0.0 (9.6) 0.0 - - Allowance for doubtful account 0.0 (20.0) 0.0 - - Loss from Litigation (0.8) 0.0 0.0 ▼100% - Net Profit 34.8 131.0 120.0 ▲244% ▼8% Non-Controlling Interest (0.8) 13.2 16.6 ▲2094% ▲26% Net Profit attribute to Owners of the parent 35.7 117.8 103.3 ▲190% ▼12% % Net Profit 16% 26% 28% ▲12% ▲2% GROUP PERFORMANCE 9 MONTH COMPARISON 11 Unit : Million THB 9 Month 19 9 Month 9 Month Items vs 2019 2020 9 Month 20 Revenue from Sales & Services 554.6 1,006.3 ▲81% Cost of Sales & Services (280.7) (431.5) ▲54% Gross Profit 273.8 574.8 ▲110% Gross Margin 49% 57% ▲8% SG & A Expense (233.9) (269.9) ▲15% SG&A% 42% 27% ▼15% Other Revenues 4.9 11.6 ▲135% EBIT 44.9 316.5 ▲606% % EBIT 8% 31% ▲23% Interest (0.9) (1.0) ▲12% Tax 2.6 (12.9) ▲600% Share of other comprehensive income in associates 0.1 1.7 ▲1379% EBT (excl one time) 46.7 304.3 ▲552% One Time Expenses (49.3) (29.6) ▼40% Loss on Impairment & write off intangible assets 0.0 (9.6) - Allowance for doubtful account 0.0 (20.0) - Loss from Litigation (49.3) 0.0 ▼100% Net Profit (2.6) 274.7 ▲10672% Non-Controlling Interest 9.6 33.1 ▼245% Net Profit attribute to Owners of the parent (12.2) 241.6 ▲2083% % Net Profit (2)% 24% ▲26% REVENUE STRUCTURE 12 YTD REVENUE BY MARKET 13 Unit : Million THB YTD Overseas 182%Q3/19-Q3/20 Overseas 15% Q2/20-Q3/20 Overseas 137%YTD19-YTD20 Domestic 4%Q3/19-Q3/20 Domestic 24% Q2/20-Q3/20 Domestic 35% YTD19-YTD20 REVENUE BY GAME TYPE 14 Q3 2019 Q2/2020 1% 1% 9% 12% MMORPG MMORPG Casual Casual FPS FPS 90% Q3/2020 87% 1% 15% MMORPG Casual FPS 84% COGS / TOTAL SALES 15 Unit : Million THB COGS COGS/Total Sales 250 70% 46% 43% 42% 200 50% 30% 150 10% 100 192 154 (10)% 50 101 (30)% 0 (50)% Q3/19 Q2/20 Q3/20 COGS 52% Q3/19-Q3/20 COGS 20% Q2/20-Q3/20 COGS/Sales 8% Q3/19-Q3/20 COGS/Sales 2% Q2/20-Q3/20 ** Note : COGS included One Time Items ** SG&A / TOTAL SALES 16 Unit : Million THB SG&A SG&A/Total Sales 150 50% 38% 27% 26% 30% 100 10% 123 (10)% 50 85 93 (30)% 0 (50)% Q3/19 Q2/20 Q3/20 SG&A 10% Q3/19-Q3/20 SG&A 24% Q2/20-Q3/20 SG&A/Sales 34% Q3/19-Q3/20 SG&A/Sale 7% Q2/20-Q3/20 ** Note : SG&A included One Time Items ** NET PROFIT 17 Unit : Million THB Net Profit Net Profit Margin 125 118 40% 103 30% 100 26% 28% 20% 16% 10% 75 0% (10)% 50 36 (20)% 25 (30)% (40)% 0 (50)% Q3/19 Q2/20 Q3/20 %Net Profit 183% Q3/19-Q3/20 %Net Profit 12% Q2/20-Q3/20 HISTORICAL NET PROFIT 18 120 0.30 100 0.25 0.25 103 80 0.20 60 0.15 Net profit (loss) 0.09 EPS 40 0.10 36 20 0.05 0 (12) 0.00 Q3 2018 Q3 2019 Q3 2020 (20) (0.03) (0.05) %Net Profit 187% YTD19-YTD20 HISTORICAL NET PROFIT 19 300 0.7 0.6 250 0.59 0.5 200 0.4 Net profit (loss Without one-time) 150 Net profit (loss) 0.3 EPS 100 EPS (Without one-time) 0.14 0.2 241.62 50 55 0.1 0.03 14.01 4.35 0 0 0.01 2018 2019 9 Month 2020 * Without one-time expense in 2019 related to litigation(Baht 55 MN), the net profit equal to Baht 59.35 MN and the EPS equal to 0.14 Baht per share NET CASH FROM OPERATING 20 Unit : Million THB Net cash from operating for 9 months 450 406.4 400 350 300 250 200 150 100 60.55 50 -14.43 0 2018 2019 2020 -50 EQUITY & RETAIN EARNING AS OF 30 SEP 2020 21 Unit : Million THB Consolidate Separate Items Before After Before After 01/07/2020 30/09/2020 01/07/2020 30/09/2020 Authorized capital 256.17 286.42 256.17 286.42 Par Value 0.50 0.50 0.50 0.50 Paid Up Capital 204.94 207.24 204.94 207.24 Retain Earning 86.71 190.04 1.78 53.83 Other Component of Shareholders'equity -28.70 -24.97 Equity Attributable to owners of the parent 262.95 375.77 206.72 264.54 % to Paid Up Capital 128.3% 181.3% 100.9% 127.6% SIGNIFICANT FINANCIAL RATIO 22 Financial Ratio 2018 2019 9 Months 2020 Liquidity ratio 1.04 1.11 2.14 Gross margin (%) 40.90 49.39 57.06 Net profit (%) 2.33 0.57 27.23 ROE (%) 10.98 3.45 73.06 ROA (%) 3.81 1.18 37.38 D/E Ratio 1.44 2.09 0.82 P/E 22.82 21.79 10.08** P/BV 3.22 4.54 7.01** ** Price on 30 Sep 2020, 6.35 Baht GOING FORWARD 23 New Verticals • More new 3 PC & 3 Mobile games Online Game (in Q4’20 - Q1’21) • Focus on Product acquisition and prepare for 2021 • Focus on Mobile Game Online especially MMORPG New Opportunity • 5G implementation around SEA increases market in mobile game New Market • Expect rise of female gamers • Pandemic have changed customer playing • Vietnam game behavior (New normal) that help us • Indonesia sustain in long-term even if there are no pandemic KEY HIGHLIGHT OF FLAGSHIP GAMES IN Q4 24 • Big patch update • Open new server • Major patch update (Awake) • New character release Q4 2020 GAME LAUNCHING PIPELINE 25 PC (CBT 1&2) Mohun Gujian (CBT 3) Q4 2020 Q1 2021 Mobile QUESTION & ANSWER THANK YOU.