Asiasoft Corporation PLC. (AS) Asiasoft Talk 2014 3rd March 2014 DisclaimerAgenda . 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. 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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 Page 2 AgendaAgenda 2013 Review 2014 Outlook 2014 Strategy Page 3 2013 Review What happenedAgenda 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… Page 5 Online Game PublishersAgenda Breakdown by Market No. of Game No. of Publisher Market New 2012 New 2013 Total 2013 New 2012 New 2013 Total 2013 Thai 61 75 196 11 10 47 English 0 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 Page 6 Thai = ASC , Funbox ,PCG / English = ASO , ASM / Chinese = CIB / Others = TLC ,PT Current Portfolio Agenda At the end of 2013, AS group operates 56 online game titles in 6 Number of Games by Genre countries: Web 7 Games 13% MOBA 1 Game 2% • Thailand 29 Titles FPS 5 Games • Singapore 9 Titles 10% • Malaysia 20 Titles MMORPG Casual 35 Games 8 Games • Indochina 6 Titles 62% 13% • Indonesia 2 Titles • Philippines 2 Titles Page 7 Note: Some games are operated in more than one country Current Portfolio Agenda MOBA Web 1 Game 7 Games 2% 13% FPS 5 Games 10% MMO 35 Games Casual 62% 8 Games 13% Web MOBA Web 2 Games 1 Games 5 Games 3% 7% FPS MOBA 14% 2 Games 1 Game 10% 3% FPS Casual 4 Games 4 Games 12% 13% Casual MMO MMO 4 Games 20 Games 20 Games 59% 12% 67% Page 8 Note: some game were served in more than one country Total RevenueAgenda Structure Domestic Overseas Singapore Malaysia Thailand Indonesia Philippines Indochina 68% 70% 66% 57% 54% Domestic 43% 46% Overseas 32% 30% 34% 2009 2010 2011 2012 2013 Page 9 Historical PerformanceAgenda 2009 - 2013 % Growth Unit: Million Baht FY2009 FY2010 FY2011 FY2012 FY2013 FY2012 FY2013 Revenue 1,472.70 1,539.61 1,684.52 2,016.32 1,714.77 ▲ 19.7% ▼ 15.0% < By Region > Domestic 999.50 1,082.60 1,112.30 1,154.87 927.57 ▲ 3.8% ▼ 19.7% Overseas 473.10 457.01 572.22 861.45 787.20 ▲ 50.5% ▼ 8.6% < By Business Type > Online 1,195.30 1,359.60 1,515.83 1,661.97 1,529.91 ▲ 9.6% ▼ 7.9% Distribution 216.80 124.40 91.97 277.68 114.89 ▲ 201.9% ▼ 58.6% Others 60.50 55.70 76.70 76.67 69.97 ▼ 0.0% ▼ 8.7% COGS 822.60 793.50 900.58 1,124.35 1,156.94 ▲ 24.8% ▲ 2.9% Gross Profit 650.10 746.10 736.99 847.59 528.55 ▲ 15.0% ▼ 37.6% % GP 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% % SG&A 25.41% 24.61% 24.87% 25.46% 28.00% EBIT 275.90 367.20 364.96 378.56 77.79 ▲ 3.7% ▼ 79.5% % EBIT 18.73% 23.85% 21.67% 18.77% 4.54% Net Profit 178.50 264.47 296.41 293.98 51.94 ▼ 0.8% ▼ 82.3% % NP 12.10% 17.20% 17.60% 14.58% 3.03% Basic EPS (Baht) 0.60 0.87 0.97 0.96 0.17 Page 10 Revenue by Business (Yearly) Unit: THB mn 15.0% Y-Y 1,684.52 2,016.32 1,714.77 2,000.00 45.0% 1,661.97 43.0% 1,529.91 1,515.83 1,500.00 31.4% 1,000.00 500.00 277.68 114.89 91.97 29.77 46.95 32.29 44.38 40.68 29.29 - FY11 FY12 FY13 Online Income Distribution Income Advertising and Other Income Other Revenues %Gross Margin Online Revenue - 7.9 % Y-Y Distribution - 58.6 % Y-Y Advertising 26.0 % Y-Y Other Revenue - 36.3 % Y-Y Page 11 Game launched in 2013 and 2012 Genre Launched 2013 Launched2012 Game Genre Actual Planned Actual Planned MMORPG 8 20 8 11 Casual 1 2 4 6 FPS - 2 - 1 WEB 1 5 4 4 Total 10 29 16 22 Page 12 RevenueAgenda by business Advertising Advertising Advertising 2% Other 2% 3% 2% Other Distribution Other 2% 2% Distribution Distribution Income Income Income 7% 5% 14% Online Online Online Income Income Income 89% 90% 82% 2011 2012 2013 Page 13 Revenue BreakdownAgenda by Genre Web game Web game FPS MOBA MOBA 4.2% FPS 1.1% 4.3% - 0.0% Casual 13.7% MMORPG 18.9% MMORPG 68.2% 72.5% Casual 16.9% • Revenue contribution from FPS YoY increased from 4.3% to 13.7% of total revenue. Page 14 COGS Analysis FY12 COGS FY13 COGS Depreciation Other Cost Depreciation Other Cost 3% 3% 3% 8% Network Service Network 10% Service 10% Direct Cost 13% Royalty Fee Direct Cost Royalty Fee 55% 9% 52% Employee Expenses Employee 16% Expenses 18% 2.9% Y-Y Total COGS is THB 1,124.35 mn Total COGS is THB 1,156.93 mn Page 15 SG&A / Total Sales (Yearly) Unit: THB mn -6.5% Y-Y % 600.0 28.5 28.00 28.0 500.0 27.5 27.0 400.0 26.5 26.0 300.0 25.46 25.5 24.87 25.0 200.0 418.95 24.5 480.05 100.0 513.4 24.0 23.5 0.0 23.0 2011 2012 2013 SG&A SG&A/Total Sales Page 16 Write-Agendaoff by Market Thai English Chinese Others • This is an • This is an • This is an • 22 games • 5 games • 10 games • 3 games example example example • 79 MB • 11 MB • 10 MB • 6 MB text text text • 40 games • Go ahead • Go ahead • Go ahead • 106 MB and place and place and place your your your own text own text own text ample text Example ample text Total 2013 text Total 2012 • 40 games • 10 games • 106 MB • 40 MB Page 17 Thai = ASC , Funbox ,PCG / English = ASO , ASM / Chinese = CIB / Others = TLC ,PT Net Profit (Yearly) Agenda Unit: THB mn -82.3% Y-Y 350.00 17.60% 300.00 14.58% 250.00 200.00 150.00 296.41 293.98 100.00 3.03% 50.00 51.94 - FY11 FY12 FY13 Net Profit Net Profit Margin Page 18 Note: Net Profit attributable to equity holders of the parent Balance SheetAgenda Structure Dec 31, 2012 Dec 31, 2013 %Chg Unit: THB mn 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 Total Liabilities Non-curent 2,045 644 1,741 523 Lia. 56 Total Assets Current Lia. 457 LIABILITIES LIABILITIES Current Asset Non- 799 1,401 1,218 Current Total Equity Asset Registered 942 Paid-Up 307 Non Controlling Share 104 Premium Return 797 Earning ASSET ASSET EQUITY EQUITY 10 Page 19 Agenda Summary 2013 Major Write-Off 19 Games Postponed Reduced Revenue and Profit Intense MOBA Competition Strong Mobile Competition Page 20 2014 Outlook What is happeningAgenda 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. Page 22 2014Agenda Outlook Grow eSports & MOBA revenue contribution to 5% Grow mobile revenue contribution to 5 % Grow Group revenue by 25% *Excluded Level Up Inc.