Financial Results of Q3 FYE September 2015...Financial Results of Q3 FYE September 2015 Ⅰ. Q3 FYE Sep 2015 results IGNIS LTD. Overview of Q3 2 Sales of the native social game ‘BOKU
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Connecting Markets East & West
August 13, 2015
IGNIS LTD.
Opinions, forecasts and other forward-looking statements included in these documents represent the judgment of IGNIS Ltd. at the time that these documents were created, and no guarantee is made as to the accuracy of the information contained in those statements.
Please be aware that there may be large variations between the contents of forecasts and the actual financial results, for any number of reasons.
Financial Results of Q3 FYE September 2015
Ⅰ. Q3 FYE Sep 2015 results
IGNIS LTD.
Overview of Q3
2
Sales of the native social game ‘BOKU & DRAGONS’and the free native app‘breaker:block breaker’were favorable
Unable to post profits however, because of increases in platform charges paid (related to billing revenue for‘BOKU & DRAGONS’and‘breaker:block breaker’as well as increases in promotional expenses for ‘BOKU & DRAGONS’
FYE Sep 2015Q3
FYE Sep 2015Q3 yoy Difference
Sales 613 522 17.4% 91
Free Native Apps 150 364 -58.7% -214
Free Content Model ‘Hybrid’Apps 2 46 -94.1% -43
Native Social Game 459 111 312.7% 348
Operating Profit -70 219 ‐ -290
OP Margin - 42.1% ‐
Ordinary Profit -122 214 ‐ -336
Ordinary Profit Margin - 41.0% ‐
Net Profit -132 118 ‐ -250
Net Profit Margin - 22.6% ‐
breaker:block breaker
BOKU & DRAGONS
(Unit: Million)
IGNIS LTD.
PL for Q3 (cumulative)
3
(unit:million yen)
“BOKU & DRAGONS”started to contribute to income from this Q3. However,
it was not large enough to cover for losses accumulated in the first half of theyear, and so performance for Q3 (cumulative Q1-Q3) posted a decrease insales and profit, yoy.
(Consolidated)
yoy Difference
Sales 1,120 1,310 -14.5% -190 Free Native Apps 542 826 -34.4% -283 Free Content Model "Hybrid" Apps 34 240 -85.9% -206 Native Social Games 543 242 123.9% 300Operating Profit -313 350 -189.4% -663 OP margin - 26.8% - -
Ordinary Profit -395 344 -214.8% -740 Ordinary profit margin - 26.3% - -
Net Profit -443 191 -331.9% -634 Net profit margin - 14.6% - -
KPIFYE Sep 2015
Q1- Q3 CumulativeFYE Sep 2014
Q1-Q3 CumulativeDifference
Number of titles released within the term 39 42 -3 Free Native Apps 34 35 -1 Free Content Model "Hybrid" Apps 4 7 -3 Native Social Games 1 0 1
FYE Sep 2015Q1- Q3
Cumulative
FYE Sep 2014Q1-Q3
Cumulative
IGNIS LTD.
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Others 46 63 65 48 97 103 107 172 128 104 110
Commission 8 4 6 7 7 10 14 15 15 21 24
Rent etc.(※) 1 9 18 16 16 16 16 16 50 63 63
Platform charges 0 0 2 1 20 51 42 23 0 27 132
Advertisement and promotion 6 17 59 40 116 75 17 185 20 59 222
Recruitment 1 13 9 14 8 11 7 6
Personnel 27 31 37 42 48 70 89 104 117 119 124
0
100
200
300
400
500
600
700
800
Others
Commission
Rent etc.(※)
Platform charges
Advertisement and promotion
Recruitment
Personnel
Analysis on expenses
4
FYE Sep 2013 FYE Sep 2014 FYE Sep 2015
Overall cost increased mainly due to promotion cost of the native social app “BOKU & DRAGONS”and platform charges paid
※Includes depreciation for facilities at the head office
(unit:million yen)
IGNIS LTD.
Free native apps development plan for FYE Sep 2015
SM
ALL
ME
DIU
MLA
RG
E
Income contribution
Development situation of free native apps
We are enthusiastically preparing to release numerous titles of
medium- and large- sized apps to expand the number of users
5
9Titles7Titles
・SpeedTest・QRCodeReader
5 other titles
13Titles・Zaku zaku Tyrol
・One stroke sketch11 other titles
6Titles•Brain puzzle!Nan-pre
Lv1005 other titles
Girls Chat
Fivy
*Small-sized apps:Developed within 1 month, Medium-:Developed in 1 to 3 months, Large-:Developed in 3 months or more
Wasp
Picthy
Suddenly Fired
breaker
Kabukicho Tower
HOT NEWS
Income contributionPair Pair
with
Income contribution
Income contributio
nIncomecontribution
Increase number of usersImprove apps
Income contribution
Income contribution
Incomecontribution
IGNIS LTD.
MAU trend of free native apps
6
Although MAU(※)is on a declining trend, this is in line with the shift in our apps portfolio, and is still maintaining a high level
※the number of users who used our free native apps at least once in a month
Trend in MAU of free native apps(unit:users)
Dec 2013 Mar 2014 Jun 2014 Sep 2014 Dec 2014 Mar 2015 Jun 2015
IGNIS LTD.
DLs and Sales Ranking for BOKU & DRAGONS
7
Sales ranking trend in JP
※As of August 9th
138
386 421 483
750
1,247 1,277
164
326
453
499
579 596
FEB MAR APR MAY JUN JUL AUG
Android version iOS version
138
550
746
936
1,8731,826
1,249
(unit: thousand downloads)
※
Monthly DLs figures(cumulative)
Number of days ranked
within 100
Android version 155 days
iOS version 84 days
0位
50位
100位
150位
200位
250位
300位
350位
400位
450位
2/2
3
3/2
3/9
3/1
6
3/2
3
3/3
0
4/6
4/1
3
4/2
0
4/2
7
5/4
5/1
1
5/1
8
5/2
5
6/1
6/8
6/1
5
6/2
2
6/2
9
7/6
7/1
3
7/2
0
7/2
7
8/3
8/1
0
Android version iOSversion
1st
Released
2/20
Released
3/12
th
th
th
th
th
th
th
th
th
IGNIS LTD.
Progress against initial forecast
8
(unit: million yen)
We adjusted our sales forecast upward for the full year, as sales from“BOKU & DRAGONS”is favorable.
We have left our profit forecast unchanged as we plan to increase investment for the future, and foresee increased expenses in the area of promotion and strengthening of development structure.
Q1 Actual Q2 Actual Q3 ActualActual
(Q1-3 cumulative)May 2015forecast
Revisedforecast
Progress againstrevised forecast
Sales 243 263 613 1,120 1,700 2,000 56.0%
OperatingProfit
-101 -140 -70 -313 -504 -504 -
OrdinaryProfit
-117 -155 -122 -395 -553 -553 -
Net Profit -89 -221 -132 -443 -582 -582 -
FYE September 2015 FYE September 2015 full year forecast(Consolidated)
Ⅱ.Strategies toward renewed growth
IGNIS LTD.
Towards renewed growth
10
2012~2014
Currently, we are here
Creating new standards, over and over again
Develop products that will achieve 100 million
downloads
Develop products that will achieve 10 million
downloads
Develop products that will achieve 1 million
downloads
Aspiring to develop products that will become the“next standard”usedby a hundred million and more people, we will set on to a new stage ofchallenge
Incom
e e
xp
an
sio
n
IGNIS LTD.
Business strategy① Free native apps
11
Medium & large size Mainly
Communication genre
In order to expand user base and strengthen income base, we willcontinue to develop medium and large size apps
Expanding Apps Portfolio Developing Long Lifetime Apps for Increasing MAU
Tool-type apps
Long life time
Small size
Launch apps which can produce profits in the short term
Casual games
Short life time
Large size
Strengthen income base by enhancing business of medium- and large size
Continue with current business for small-sized apps
IGNIS LTD.
Business strategy ② Native social games
12
Next titleIntend to make
further leaps, with the know-how acquired
with the previous two game titles
12
Release of “BOKU & DRAGONS”
Feb. 20th 2015 Android version
March 12th iOS version
Achieved 1.8 million downloads
Secured stable revenue
Events were also well received!
We will continue to strengthen our operation structure, to strengthen our billing business and strive for further
growth!
IGNIS LTD.
Direction of growth moving forward
13
We will continue to provide highly satisfying apps for our users, creating services that will become the new standard
Advertising Revenue Billing Revenue
Free Content Model ‘Hybrid’Apps(Comic)
Free Native Apps(Tool)
ignition inc.
swagApp inc.
IGNIS AMERICA, INC.
Free Native Apps(Communication)
Native Social Game
Free Native Apps(Casual Game)
ALTR THINK, Inc.
IGNIS AMERICA, INC.studioking inc.
swagApp inc.
Areas of special focus from now on
Ⅲ. What is IGNIS?
IGNIS LTD.
What is IGNIS?
【Company Profile】
IGNIS is a company which provides greatly demanded, high quality
applications for users of mainly smartphones.
15
Company name IGNIS LTD.
Capital 559,467,600 yen
Founded May 31, 2010
Headquarters Ebisu Business Tower 12th floor, 1-19-19 Ebisu, Shibuya-ku, Tokyo
Headcount 105 (as of June 30, 2015)
Main Businesses Mobile app businessDesign, development, operation and sales of smartphone applicationsGame businessDesign, development, operation, and sales of social games for smartphones
Main Group Companies
ib inc., IGNIS AMERICA, INC., ignition inc., swagApp inc.,studioking inc., ALTR THINK, Inc.
IGNIS LTD.
Corporate Vision and Mission
16
経営理念Vision
“Until we impact the world, we won't be satisfied.”
ミッションMission
“Creating new standards, over and over again.”
IGNIS LTD.
Message from the Founder
17
This is the idea that we had when we established IGNIS LTD. in May 2010.
‘IGNIS’ is Latin for ‘fire’.
Since ancient times, fire has been thought of as being one of the four major
elements essential for living.
People huddling around a fire, communication being born… this is how the
human race has evolved.
Now, fire is completely integrated into the lives of everyone, and it has
become ‘something that everyone takes for granted’.
We want to advance the evolution of the world by continuing to come up
with new standards; standards for the era to come.
We are strongly motivated and want to be a group that burns with
enthusiasm for its work.
This is the idea that is contained in our company name.
“To make an impact on the world by constantly creating ‘newstandards’ over and over again.”
IGNIS LTD.
Profiles of Top Management
18
Our management team has frontline production ability as producers andengineers
➣ Quick and appropriate management judgment➣ Reasonable and convincing appraisal system to maximize employees
performance
President and CEO QIAN KUNTop Producer
Producer of multiple “hit” appsDriving force and at the frontline for the commercialization of Tool-type Apps, and creation of business models for Free Contents Hybrid Apps, etc.
Representative Director and CTO Takaaki SuzukiTop Engineer
Expert in a wide range of development languages for full native apps. Manages native social game business. Responsiblefor business decisions and management from the perspective of a top engineer.
IGNIS LTD.
Our Business model
19
Apps are provided to users through the Apps Store and Google Play.Revenue comes from advertisements listed in the apps and billingwithin the apps.
Apps Design & Development
Smartphone Platforms (Apps Store / Google Play)
Apps Supplied Billing Revenue Delivery of in-app advertisement
IP / Apps
Supplied
Revenue Share
Ad
. Rev
enu
e
Ad. Agency
Smartphone Users
AdvertiserIP Rights
Holders /
Partners
Other Content
Providers in the Same
Industry
Sale & Transfer of Apps
IGNIS LTD. 20
Business Domain
We focus on areas where user needs are high in the smartphonemarket. By creating subsidiaries for each area, we are expanding ourbusiness to maximize customer satisfaction.
Advertising Revenue Billing Revenue
Native Social Game
Free Content Model ‘Hybrid’Apps(Comic)
Free Native Apps(Casual Games)
Free Native Apps(Tool)
Free Native Apps(Communication)
ALTR THINK, Inc.
IGNIS AMERICA, INC.
ignition inc.
studioking inc.
swagApp inc.
swagApp inc.
IGNIS AMERICA, INC.
IGNIS LTD.
Product Launch in accordance with user needs
21
We provide valuable free native apps to our users, which generates ourmain source of revenue from advertising. We also provide billing-typenative social games .
Trend of Apps(Android)
Concentrating on the high customer
interest areas such as casual games and communications
Free Native Apps-Advertising Revenue (Some Billing Revenue)
Native Social Game-Billing Revenue
“BOKU & Dragons”
Feb 20th 2015, Android version releasedMar 12th 2015, iOS version releasedJun 25th 2015, 1million DL achieved0
20
40
60
80
100
120
140
De
c-1
1
Apr-
12
Aug-1
2
De
c-1
2
Apr-
13
Aug-1
3
De
c-1
3
Apr-
14
Aug-1
4
De
c-1
4
Apr-
15
Casual Games
Communication
Comics
Tools
Others
0
20
40
60
80
100
120
140
160
180
200
Jun-…
Sep…
Dec…
Mar…
Jun-…
Sep…
Dec…
Mar…
Jun-…
Sep…
Dec…
Mar…
Jun-…
Casual Games
Communication
Comics
Tools
Others
Trend of apps (iOS)
IGNIS LTD.
Trend of user downloads
22
The apps IGNIS has developed are appreciated by our users anddownloads have been steadily growing
(Unit: thousand DLs)
Reached 87million downloads
IGNIS LTD.
IGNIS’income structure
23
(Unit:million yen)
In addition to advertisement revenue from small-size free native apps, billing revenue from native social games have also grown as a pillar for our revenue
For our advertisement revenue, we will strive to further increase them by moving from developing small-sized apps to medium- and large size apps, and cultivating a new types of users
3 23
461 564 179
851
1,332
547
21
450
255
9
0
500
1,000
1,500
2,000
2,500
FYE Sep 2012 FYE Sep 2013 FYE Sep 2014 FYE Sep 2015
(Q3)
Others
Advertisement
Billing
IGNIS LTD.
* Disclaimer:
Warnings in relation to forward looking statements
The data included in this presentation includes what is known as
"forward-looking statements". These are based on estimates, forecasts and
assumptions about risk made at the present date which include a level of
uncertainty that means that actual future results may differ from the
contents of the “forward-looking statements".
These risks and uncertainties include the general economic situation in
Japan and overseas, including the market situation, interest rates, and
currency fluctuations affecting the industry as a whole.
IGNIS takes no responsibility for updating or revising these forward-
looking statements in response to any future events or other new
information that may emerge in the future.
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