Asiasoft Corporation PLC. (AS) Opportunity Day 3Q 2013
19 November 2013 DisclaimerAgenda
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Page 2 AgendaAgenda
Asiasoft Overview in Q3 2013
Territory Overview in Q3 2013
Asiasoft Performance in Q3 2013
Next Step 2013
Appendices
Page 3 Asiasoft Overview CurrentAgenda Portfolio
At the end of 3Q13, AS group operates 57 online game titles in 6 Number of Games by Genre countries: Web 7 Games 12% MOBA 1 Game 2% • Thailand 30 Titles FPS 6 Games • Singapore 11 Titles 10% • Malaysia 18 Titles MMORPG 35 Games • Indochina 3 Titles Casual 61% 8 Games • Indonesia 2 Titles 14% • Philippines 2 Titles
Page 5 Note: Some games are operated in more than one country 3Q13Agenda Portfolio
MOBA Web 1 Game 7 Games 12% 2% MMO FPS 35 Games 6 Games 61% 10%
Casual 8 Games Web 14% MOBA 3 Games Web 1 Game 10% MOBA 4 Games 3% 1 Game 11% FPS 3% 3 Games FPS 10% 4 Games 11% Casual 4 Games MMO 13% Casual 20 Games MMO 6 Games 57% 19 Games 16% 64%
Page 6 Note: some game were served in more than one country New GameAgenda Launch 2013 Domestic Quarter 11 QuarterQuarter 2 2 QuarterQuarter 33
Type: MMORPG Type: Casual From: Korea From: Korea Launch: 2 Apr 2013 Launch: 6 Aug 2013 Operate: TH Operate: TH
Type: Web From: China Type: MMORPG Launch: 31 Jan 2013 From: Korea Operate: TH Launch: 23 May 2013 Operate: TH Type: MMORPG From: China Launch: 12 Sep 2013 Operate: TH Type: MOBA From: Korea Launch: 24 Jun 2013 Operate: TH Page 7 New GameAgenda Launch 2013 Oversea Quarter 11 QuarterQuarter 22 QuarterQuarter 33
Type: MMORPG Type: Casual From: Korea From: Korea Launch: 3 Jan 2013 Launch: 6 Aug 2013 Operate: SG, MY, PH Operate: TH,SG,MY,PH Type: MMORPG From: Korea Launch: 23 May 2013 Operate: VN
Type: MMORPG Type: Casual From: China From: Korea Launch: 18 Mar 2013 Launch: 14 Aug 2013 Operate: MY Operate: VN
Page 8 Territory Overview Online Game PublishersAgenda in Thailand
TOTAL: 65 Games 78 Games 111 Games 129 Games 165 Games 197 Games
25 New Games 27 New Games 34 New Games 44 New Games 61 New Games 58 New Games 6
46 Companies (9 New companies) 5 (3 close companies) 40 Companies 4 (11 New companies) (3 close companies) 32 Companies (5 New companies) 3 (5 close companies) 32 Companies (8 New companies) 2 (1 close company) 26 Companies (6 new companies) 1 (3 close Companies) 23 Companies (5 new companies) (- close company) 2008 2009 2010 2011 2012 Q3/2013
Page 10 Online Game BreakdownAgenda by Game Type
MMORPG Casual FPS WEB MOBA Casual Market trends to shift to MOBA type 10% MMORPG FPS 22% 40% MMORPG Casual FPS WEB MOBA
MOBA WEB 16% 12% Casual 19% Q3/12 MMORPG FPS 33% 19%
MMORPG Casual FPS WEB MOBA WEB Casual MOBA 6% 19% 23% FPS 19%
Remark : base on Average Max CCU Q3/13
MMORPG WEB Q3/13 32% MOBA 8% 22% Q2/13
Page 11 Online Game PublishersAgenda in Singapore
TOTAL: 22 Games 25 Games 24 Games 29 Games
0 New Game 3 New Games 1 New Game 3 New Games
9 Companies 2 (0 New Company) (1 Close Company)
10 Companies 1 (0 New Company) (0 Close Company)
10 Companies 4 (1 New company) (0 Close Company)
9 Companies (1 New Company) 3 (0 Close Company)
4Q2012 1Q2013 2Q2013 3Q2013
Page 12 Online Game BreakdownAgenda by Game Type
MOBA Web 21% 0% MMORPG Market trends to shift to FPS type Casual 56% 4%
MMORPG FPS Casual MOBA Web
Web FPS 15% MMORPG 42% 19% Q3/12 MOBA 11%
MOBA Casual 13% MMORPG 3% WEB 50% 17%
FPS 29% Q3/13 Remark : base on Average Max CCU Q3/13 FPS 15% Casual Q2/13 5%
Page 13 **DotA(LAN) is no included in report. Online Game PublishersAgenda in Malaysia
TOTAL: 119 Games 122 Games 128 Games 134 Games
10 New Games 4 New Games 9 New Games 17 New Games
34 Companies 4 ( 1 New company) ( 1 close company)
34 Companies 3 (0 new company) (2 close Companies)
36 Companies 2 (1 New company) (0 Close company)
35 Companies (1 New company) 1 (5 close company) 2012Q4 2013Q1 2013Q2 2013Q3
Page 14 Online Game BreakdownAgenda by Game Type
MMORPG FPS MOBA Music Market trends to shift between FPS and Music MMORPG type MOBA 18% 0% MMORPG MMORPG FPS MOBA Music 54%
FPS 28% Music Q3/12 MOBA 20% 0% MMORPG 53% FPS 27%
Q3/13 Remark : base on Average Max CCU Q3/13
Q2/13
Page 15 Online Game PublishersAgenda in Indonesia
TOTAL: 52 Games 76 Games 95 Games 105 Games
24 New Games 31 New Games 19 New Games 10 New Games
4 38 Companies (1 New companies)
37 Companies 3 (10 New companies)
27 Companies 2 (9 New companies) (3 close companies)
20 Companies 1 (10 new companies) (1 close Company)
2010 2011 2012 1H13
Page 16 Online Game BreakdownAgenda by Game Type
WEB MOBA 5% 0% MMORPG 28% FPS Market trends to shift to MOBA type 36%
MOBA MMORPG 12% Casual WEB 23% 31% 7% Q3/12
MOBA MMORPG WEB 7% 17% 5% FPS Casual 34% 24%
Casual 37% Remark : base on Average Max CCU Q3/13 Q3/13 FPS 34% Q2/13
Page 17 Asiasoft Performance Total RevenueAgenda Structure
Domestic Overseas
Singapore
Thailand Malaysia
• Plus Sublicense Indonesia
revenue in Vietnam Philippines
Indochina
68% 70% 66% 57% 50% Thailand
43% 50% Overseas 32% 30% 34%
2009 2010 2011 2012 3Q13
Page 19 Revenue BreakdownAgenda by Genre
Web-Based MOBA Web-Based MOBA FPS 3.5% FPS - MMORPG 1.1% 0.0% 10.1% 13.8% Casual 70.1% MMORPG 16.3% Casual 69.9% 15.1%
Web-Based FPS MOBA 1.6% - 13.0% MMORPG 66.6% Casual • Revenue contribution from FPS YoY increased 18.8% from 10.1% to 13.8% of total revenue.
Page 20 3Q13 Total RevenueAgenda Breakdown
Advertising Other 3% Distributio 2% GROUP n Income 6% Advertising Other 2% Distribution 1% Income 4% DOMESTIC
Online Income 89%
Distribution Advertising Income 1% Online 1% Income 93%
Total Revenue is THB 414.49 mn OVERSEAS Online Income 98%
Page 21 3Q 2013Agenda Highlights
Revenue decrease YoY • Core-Revenues decrease 14.9% YoY, mainly due to weak performance in new game launches as well as delays in new game launches.
• Revenue from Funbox and PT Asiasoft significantly dropped due to under delivery of revenue target.
• Online revenue dropped due to weak performance from existing games.
Net Income decreased YoY
• NP% significantly dropped to 76.1% mainly due to
- Revenue dropped of 15% from all Business Unit except TLC and CIB
- Higher license fee written off of more than 4 Million.
Page 22 TotalAgenda Revenue Unit: THB mn % 900 - 3.3% Q-Q 55 501.8 800 -15.0% Y-Y 487.7 50 700 469.2
600 44.89 429.0 43.16 45 500 48.8 414.5 65.4 65.4 400 50.7 28.5 40 300 37.57 36.65 453.0 200 422.3 403.7 378.3 386.0 35 32.52 100
0 30 3Q/12 4Q/12 1Q/13 2Q/13 3Q/13
Online Revenue Other Rev. Gross Margin
Page 23 Domestic MarketAgenda Highlights Revenue decrease YoY
• Domestic revenue drop due to significantly revenue shortfall as a result of decreasing online revenue of Pocket Ninja, Cabal and Dragon Nest. 300
250
200
150 281.5 260.9 232.6 224.4 100 203.4
50
0 3Q/12 4Q/12 1Q/13 2Q/13 3Q/13 Domestic
Domestic - 22.0% Y-Y Domestic - 9.4% Q-Q
Page 24 Overseas MarketAgenda Highlights Revenue decrease YoY
• Overseas revenue dropped partially offset by online revenue increase due to successful on Ragnarok 2
240
230
220
210 228.2 200 220.9 211.3 206.6 190 196.4
180 3Q/12 4Q/12 1Q/13 2Q/13 3Q/13 Oversea
Oversea - 6.5% Y-Y Oversea 5.2% Q-Q
Page 25 3Q13 GroupAgenda Cost Breakdown
Selling Expenses
COGS Employee 21% Depreciation 4% Others 3% Others Network and 4% Service Commission 11% Marketing 1% 74%
Direct Cost 8% Total Selling Exp. is THB 34.85 mn Royalty Fee 55% Administrative Expense
Others Employee 30% Expense 19% Employee 52% Total COGS is THB 276.64 mn Rental and Depreciation Center 7% Services 11% Total Admin. Exp. is THB 85.80 mn Page 26 SG&A Agenda/ Total Sales Unit: THB mn % 160 30 8.5% Q-Q 29.11 140 -10.7% Y-Y 29 28.33 27.72 120 28
100 27 25.93 80 26 24.60 135.2 142.7 60 120.7 25 111.2 40 115.4 24
20 23
0 22 3Q/12 4Q/12 1Q/13 2Q/13 3Q/13
SG&A SG&A/Total Sales
• YoY dropped of 10.7% mainly due to • Employee Expense admin dropped about 7 M. • Marketing Expense dropped about 8 M. • QoQ increased 8.5% mainly due to • Employee Expense admin increased about 3 M. • Other Admin Expense increased about 6 M.
Page 27 NetAgenda Profit Unit: THB mn %
80 - 58.2% Q-Q 18
70 14.84 -76.1% Y-Y 16 13.33 14 60 11.05 12 50 8.66 10 40 74.5 8 65.0 30 51.9 6 20 3.75 37.2 4 10 15.6 2 0 0 3Q/12 4Q/12 1Q/13 2Q/13 3Q/13
Net Profit Net Profit Margin
• YoY dropped of 76.1% mainly due to • Revenues dropped of 15% from all BU except TLC & CIB. • Higher license fee written off of more than THB 4 M. • QoQ dropped of 58.2% mainly due to • Revenues dropped of 3.3% mainly from domestic segment • Higher costs mainly due to unrealized loss on exchange rate from PT Asiasoft around THB 7M
Page 28 3Q13 Top 5 RevenueAgenda Online Games
25% 26%
14% 13%
8% 10%
7% 8%
6% 7%
• Top 5 games accounted for 64% of total revenue compared to last year of 60%.
Page 29 PerformanceAgenda of APAs & APRU
Avg. APAs Quarterly ARPU (users) Blend (baht)
300,000 800
700 250,000
600
200,000 500
150,000 400
300 100,000
200
50,000 100
0 0
4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
APAs Quarterly ARPU
• ARPU is increasing from THB 400 in 2008 to THB 600-750 in 2013 or more than 60%
PagePage 30 Balance SheetAgenda Structure Dec 31, 2012 Sep 30, 2013 %Chg Unit: THB mn Assets 2,044 1,804 (240)
Liabilities 644 514 (130)
Equities 1,400 1,290 (110)
D/E Ratio 0.46 0.40 Total Liabilities
Non-curent 2,044 644 1,804 514 Lia. 56 Total Assets
Current Lia.
457
LIABILITIES LIABILITIES Current Non- Asset 1,400 1,290 Current 855 Total Equity Asset Registered 949 Paid-Up 307
Non Controlling Share 90 Premium 797 Return
Earning
ASSET
ASSET EQUITY EQUITY 96 Page 31 Next Steps New Game Launch Plan
Q4-2013 Q1-2014
CBT: 17 Oct 13 Ragnarok Online 2
CBT: Feb 14 Yulgang 2
CBT: 12 Dec 13 RO Valkyrie Uprising First MMO Mobile Game
CBT: Feb 14 DC Universe Online
S T R I F E CBT: 4Q 13
Page 33 New Game LaunchAgenda in OCT13
RO2 Commercial Date : 24 October 2013
Page 34 RagnarokAgenda Success Story
Currently operating in 76 countries Ragnarok Online begun operation in Korea on 1st August 2002. Ragnarok Online has won 27 recognized awards from around the globe during this 10 years of service. Ragnarok Online in Korea is still seeing an average of 400 new registrants on a daily basis. Last month, July 2012, saw 12,000 new registrants, bringing the total membership to 7.5 million. The ration of male to female gamers is 7:3. The highest CCU (con-current users) recorded was 789,323 globally. Ragnarok Online was also once known as the “country’s game” in Taiwan, Japan, Thailand and the Philippines. The highest CCU for Taiwan was 350,000, Thailand 130,000, Japan 100,000, Philippines 57,000, Singapore and Malaysia 31,000, Brazil 20,000 and North America 15,000. Estimated UID around 58 million global 885 million USD. That is the approximate total sales (including royalties, export sales etc) Ragnarok Online has made over this decade.
Page 35 Ragnarok SuccessAgenda Story (Thai Server) o First successful MMO-RPG in Thailand. o CCU at 130,000 User. ( No game can break the record until now.) oUID more than a Million.
Page 36 Close BetaAgenda 4Q13
STRIFE The Premier Second Generation Free-2-Play MOBA from S2Games
STRIFE Commercial Date : Q1 2014 Page 37 New BusinessAgenda Partnerships
Best online Entertainment Premier SEA Platform Game Operator
Award-Winning Games • A pioneer of the MOBA genre • Heroes of Newerth (HoN) Page 38 RagnarokAgenda Mobile PLAY RAGNAROK ANYWHERE YOU GO The legendary MMORPG goes mobile as Ragnarok Online: Valkyrie Uprising.
Page 39 New Game LaunchAgenda in DEC13 RO Mobile
RO Valkyrie Uprising First MMO Mobile Game
RO (Mobile Game) Commercial Date: December 2013
Page 40 TargetAgenda Group •Primary [60%] – Age: 18-25 – Gender: Male [70%] / Female [30%] – Characteristic: Smart phone User
•Secondary [40%] • Age: 13- 18 [20%] / 25-35 [20%] – Gender: Male [80%] / Female [20%] – Characteristic: Game player
Page 41 Appendices ConsolidatedAgenda Performance
Unit : Million Baht
Items Q3Y12 Q2Y13 Q3Y13 YoY QoQ 9MY12 9MY13 YoY Total Revenues 487.69 429.00 414.49 ▼ 15.0% ▼ 3.4% 1,511.79 1,312.63 ▼ 13.2% Revenues 481.77 420.75 409.96 ▼ 14.9% ▼ 2.6% 1,478.96 1,291.48 ▼ 12.7%
Page 43 CGS and SG&AAgenda Breakdown
Unit : Million Baht % to Core Revenue % to Core Revenue Items Q3Y12 Q3Y13 %Change 9MY12 9MY13 %Change Q3Y12 Q3Y13 9MY12 9MY13 Royalty 166.53 163.66 34.6% 39.9% ▼ 1.7% 484.85 485.48 32.8% 37.6% ▲ 0.1% Revenue Sharing 135.86 123.28 28.2% 30.1% ▼ 9.3% 380.78 373.18 25.7% 28.9% ▼ 2.0% Amortization 26.41 31.75 5.5% 7.7% ▲ 20.2% 73.48 86.21 5.0% 6.7% ▲ 17.3% COGS Write-off 4.26 8.63 0.9% 2.1% ▲ 102.6% 30.59 26.09 2.1% 2.0% ▼ 14.7% Employee 47.94 51.26 10.0% 12.5% ▲ 6.9% 130.18 152.79 8.8% 11.8% ▲ 17.4% Network&Maintenance 26.73 27.49 5.5% 6.7% ▲ 2.8% 77.14 83.29 5.2% 6.4% ▲ 8.0% Depreciation 10.55 9.58 2.2% 2.3% ▼ 9.2% 26.78 30.02 1.8% 2.3% ▲ 12.1% Direct Cost 22.13 24.66 4.6% 6.0% ▲ 11.4% 133.85 79.25 9.1% 6.1% ▼ 40.8% Total 273.86 276.64 56.8% 67.5% ▲ 1.0% 852.81 830.84 57.7% 64.3% ▼ 2.6%
Unit : Million Baht % to Core Revenue % to Core Revenue Items Q3Y12 Q3Y13 %Change 9MY12 9MY13 %Change Q3Y12 Q3Y13 9MY12 9MY13 Employee 58.03 50.68 11.9% 12.2% ▼ 12.7% 152.82 151.57 10.3% 11.7% ▼ 0.8% Marketing 35.80 26.27 7.3% 6.3% ▼ 26.6% 90.49 72.10 6.1% 5.6% ▼ 20.3% SG&A Rental&Utilities 15.08 13.33 3.1% 3.2% ▼ 11.7% 43.87 41.68 3.0% 3.2% ▼ 5.0% Depreciation 4.74 5.35 1.0% 1.3% ▲ 12.9% 15.74 17.19 1.1% 1.3% ▲ 9.2% Others Selling 2.30 1.67 0.5% 0.4% ▼ 27.3% 7.94 4.80 0.5% 0.4% ▼ 39.5% Other Administrative 19.24 23.36 3.9% 5.6% ▲ 21.4% 48.24 59.93 3.3% 4.6% ▲ 24.2% Total 135.18 120.66 27.7% 29.1% ▼ 10.7% 359.10 347.29 24.3% 26.9% ▼ 3.3%
• Write-off for Q3Y13 of THB 8.6M consist of THB 6.0M for ASC(Football City Star/Star Project), THB -1.8M for Funbox(Reversed for GOD), THB 1.1M for ASO(Allods), THB 1.7M for PTA(Brawl Busters), THB 0.5 for TLC(Bubble Ninja) and THB 1.1 M for CIB(DJX/JHO) compared with THB 4.3M for Q3Y12 mainly be remaining on group license of closed games (Monster Forest) • Increasing on employee 6.9%YoY, mainly due to manpower growth of ASC, CIB and ASO for support to new games launching compared with previous year • Direct cost related with declining on sales of Blizzard products which grouped in distribution revenues • Decreasing on marketing 26.6%YoY, mainly due to spend marketing expenses for 2 Big Event of ASC for Q3Y12 • Increasing on other administrative 21.4%YoY, mainly due to loss on exchange rate about THB 7M for PTA
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