INVESTOR RELATIONS 2012
Content Ⅰ. OVERVIEW Company Overview Business Overview Strategic Goals Ⅱ. SNG & Mobile Game R&D Superiority Global Expansion Strategy - Domestic Strategy - Japan Ⅲ. Online Game Strategy New Games Ⅳ. Appendix
Ⅰ. Overview Company Overview Business Overview Strategic Goals
Ⅰ. Overview Company Overview Company Profile Capital Structure Est. Date Feb. 10. 2000 Outstanding Shares : 16,800,000 Business Area Key Shareholders Online / Mobile Game Development & Publishing CEO and Management (57.6%) Listed Market KOSDAQ (Dec. 18. 2009) (Quote : 112040) KB Asset 9.9% National Pension Service 5.6% As of October 2012 Others 26.9% Employees (Sept. 2012) Home Page - WeMade: 703 employees - WeMade (incl. 11 subsidiaries): 1,371 employees www.wemade.com CEO & Management 57.6% 4
Business Overview Ⅰ. Overview Shifted main developmental focus to the mobile sector in early 2010 : Evolution into a mobile gaming company Developmental roots - MMORPG : Strong brand equity in China ( Legend of Mir franchise) Mobile & SNG Online Game g Mobile/SNG R&D Personnel: 600+ Joymax Philippines Marketing & Operations 5
Strategic Goals World - class mobile content provider with a global reach Strong, diverse pipeline of mobile games covering a wide genre of gameplay. MMO s optimized for China market providing strong steady cash flow. Ⅰ. Overview Sales Breakdown Growth Driver = Mobile Game Mobile Sales 15% Expanding R&D : 600+ dedicated mobile developers Continual launch of 10~15 games each year Global expansion (Japan, US,... ) Online Sales 85% 2012(E) Mobile Sales Over 50% 2014(E) Online Sales Under 50 % Cash Cow = Online Game New games : Heavenly Dragon, NED Heavenly Dragon, Lost Saga - China launch Maintain stable earnings from China : Mir2, Mir3 6
Ⅱ. SNG & Mobile Game R&D Superiority Global Expansion Strategy - Domestic Strategy - Japan
R&D Superiority Leverage 10+ years of experience as MMO developer to create a new, exciting mobile content. Network, community based mobile content to increase lifecycle and replayability. IAP Revenue model Ⅱ. SNG & Mobile Game Next Generation Mobile Content Graphic Artistry Technical Expertise Planning Expertise Server/Client Programming 600+ Dedicated Mobile R&D Personnel Largest in Korea 8
Global expansion Ⅱ. SNG & Mobile Game Expand into key strategic areas starting with Japan Partnership with strong local mobile platform players Increase firm s brand equity (E3, TGS, G-Star) To be a Global Mobile & SNG Content Provider Country Smartphone Penetration (F)2013 1) Mobile Game Market (F)2013 3) WeMade s Business Korea-2012 over 53% 2) 580 mil USD Japan-2012 48% 1,431 mil USD - Launched 3 games for AOS version on 30 th July 2012 through Kakao Talk Game Center - Launched 2 games in April 2012 for the ios market - Establish partnership with a strong local platform player - Participate in TGS in Q3 2012 US-2013 68% 1,823 mil USD 4) - Participated in E3 game show in Q2 2012 China-2013 38% 1,910 mil USD - Establish partnership with a strong local platform player 1) Source : Gartner, IDS, UBS estimates 2) Source : Korea Communications Commission (Jun. 2012) 3) Source : White Paper on Korean Games 2011 4) North America mobile game market 9
Strategy - Domestic Customer Acquisition strategy - KaKao Talk Increase brand equity and build WeSocial portal into a global mobile gaming platform Continual launch of 10~15 games each year Diverse pipeline with flexibility considering the market situation. Ⅱ. SNG & Mobile Game In Service To be launched App Store Apple App Store (in April) Google Play Store (on 30 th July) T-store (SKT) +... WeSocial Platform.... Goblin Ark Sphere Line up Candy Pang Every Farm2 Caffe Storia Friend Fighter Hero Square P Project L Star City Viking Island Chaos & Defense ~ Q3 of 2012 Rhythm Scandal Silkroad War Mini Games Q4 of 2012 Pet Island Epic Kingdom 2013 Project Pang 10
Ⅱ. SNG & Mobile Game Strategy Domestic (Kakao Synergy) Android ver. of KaKao Talk Game Center opened on July 30 th, 2012 Candy Pang launched on Sept. 25 th, 2012 Top 2 ranking within 2 weeks of launch based on gross sales for Candy Pang Channeling Service (Kakao Talk Game Center) Game Download (Google play store) - Top 2 ranking in Google Store based on gross sales Play Game (Integration with Kakao s friend list) [ Candy Pang ] Download: 8,000,000+ DAU: 4,000,000+ [ Viking Island ] Download: 1,500,000+ DAU: 200,000+ 11
Strategy - Japan Ⅱ. SNG & Mobile Game Participate in TGS to increase brand awareness in Japanese market Establish a strategic alliance with strong local mobile platform player LINE Tokyo Game Show Introduce next generation SNG Viking Island - SNG - WeMade s 1 st SNG Pet Island - SNG - AAA Title Hero Square - SN-RPG - AAA Title - Fantasy SN-RPG EveryFarm2 - Social Farming & Crafting sim. CaffeStoria - SNG - Café business sim. Ark Sphere - Mobile MMORPG Japanese Line up 1 or 2 games to be opened in 2012 Chaos&Defense Viking Island Pet Island Hero Square EveryFarm2 CaffeStoria Minigame Ark Sphere Q4 2012 and Beyond 12
Ⅱ. SNG & Mobile Game Strategy Japan (Partnership Synergy) Strategic partnership with LINE to localize and service content Customer Acquisition : Leverage LINE s strong brand equity and publishing know-how Optimal localization of content Content Provider Publishing Service Localization, Marketing, Operations Game Download (Japanese Application Store) Platform Strong local platform player Apple App Store Google Play Store D Market (DoCoMo) Local Subsidiary AU Market (KDDI) Yahoo! Market (SoftBank) 13
Ⅲ. Online Game Strategy New Game Heavenly Dragon NED
Strategy Stabilize Legend of Mir 2 in China with Shanda Heavenly Dragon The successor to the Legend of Mir franchise Ⅲ. Online Game New Game Domestic Continued growth from Lost Saga New Games Mir2 Mir2 Mir2 Mir2 - Heavenly Dragon 2013 - NED 2014 Mir2 Mir3 Mir3 Mir3 Changchun Changchun Digimon Changchun Digimon Mir3 Changchun SilkRoad SilkRoad SilkRoad SilkRoad Lost saga Lost saga Lost saga Mir3 Changchun Others Others Others Others Others 2009 2010 2011 2012(E) 2013(E) China Lost Saga, Heavenly Dragon launch expected in 2013 Strong brand equity & relationships with local publishers 15
Ⅲ. Online Game New Online Game - Heavenly Dragon(3D MMORPG) Heir to the Legend of MIR Franchise Developed for China Market Legend of MIR 3D Version Multiple Characters & Skills 2013 Korea Service & China Service Intuitive Control & Gameplay 16
Ⅲ. Online Game New Online Game NED (3D MMORPG) Next Generation MMO - CryEngine3 Deep, Expansive Environment WeMade s Signature Fantasy MMORPG Fellow System Air, Land Battle System 2014 Korea Service 17
Ⅳ. Appendix Games Condensed Financial (Consolidated) Condensed Financial (WeMade)
Ⅳ. Appendix Games Mobile & SNG Games Viking Island Chaos&Defense Rhythm Scandal Candy Pang Pet Island Hero Square Silkroad War Caffe Storia Friend Fighter Goblin Mobile SNRPG RTS 3D Dance Puzzle 3D SNG SNRPG Strategy Simulation SNG Action Action RPG Every Farm2 Star City Mobile Epic Kingdom Heavenly Dragon SNG NED SNG Project L Ark Sphere Project Pang Braves SNG SNG RPG MMORPG SNG AOS MMORPG Slingshot Battle RPG RPG & Casual Games Legend of Mir2 Legend of Mir3 Tartaros Heavenly Dragon NED Goblin Project Q Silkroad Lost Saga Digimon Masters 2D MMORPG 2D MMORPG 3D MORPG 3D MMORPG 3D MMORPG 3D MMORPG 3D MMORPG 3D MMORPG Action 3D MMORPG 19
Ⅳ. Appendix Condensed Financials (Consolidated) Balance Sheet Income Statement (Billion KRW) 2010 2011 H1 2012 Current Assets 252 216 205 Non Current Assets 110 143 188 Total Assets 362 359 392 Liabilities 41 29 28 Equity 321 331 364 Liabilities & Equity 362 359 392 (Billion KRW) 2010 2011 H1 2012 Revenues 109 116 57 COGS 14 15 7 Gross Profit 95 101 50 Op Expense 67 81 45 Op Profit 28 19 5 Non Op Ex 5 7 2 Inc before Taxes 33 27 8 Taxes 9-4 0 Discontinued Ops -2-4 0 Net Income 22 26 8 Attributable to Wemade 20 23 7 Minority Interest 2 3 0.4 20
Ⅳ. Appendix Condensed Financials (WeMade) Balance Sheet Income Statement (Billion KRW) 2010 2011 H1 2012 Current Assets 157 130 133 Non Current Assets 141 167 196 Total Assets 297 297 329 Liabilities 32 19 19 Equity 265 278 310 Liabilities & Equity 297 297 329 (Billion KRW) 2010 2011 H1 2012 Revenues 88 82 41 COGS 4 5 2 Gross Profit 83 77 39 Op Expense 55 54 29 Op Profit 29 24 10 Non Op Exp 5-1 1 Inc before Taxes 34 23 12 Taxes 9-4 1 Net Income 26 27 11 21