Mobile Game Asia 2015 Ho Chi Minh City

1. 1
Building a Pipeline for Zalo Game Center
CHRIS LIU
HEAD OF MOBILE GAME PUBLISHING, VNG

2. 2
VNG PRODUCT PORTFOLIO

3. 3
Internal Product
Vietnam’s largest
electronic newspaper
The largest local social
network platform
The largest online music
platform in Vietnam
Vietnam’s online video
network, provides high
quality TV content of
popular videos
Largest live-streaming
video site (eg.Twitch & YY)

4. 4
Zalo – the Line, Wechat, & KaKao of Vietnam

5. 5
VIETNAM MOBILE MARKET OVERVIEW

6. 6
Vietnam Market Potential
93.662.030
Total
Population
180.000.000
Mobile
subscriptions
35.000.000+
3G
subscriptions
33.000.000+
Smartphones
sold in 2014

7. 7
Smartphone Growth in Vietnam
19%
30%
40%
49%
57%
64%
70%
2013 2014 2015 2016 2017 2018 2019
We expect penetration rate will reach 70% by 2019
VN smartphone pent rate
87% 87%
80%
75%
72% 71%
64% 62% 60%
49%
23%
18%
15%
30%
Hongkong Singapore Malaysia Australia UK China France Gemany US Thailand Indonesia India Philipines Vietnam
Smartphone penetration rate 2014
Smartphone penetration rate 2014
• 30% of mobile phone user in Vietnam
have smartphone, considerably rank
behind China (71%), Thailand (49%)
• We expect penetration rate to reach
70% by 2019, from which sales growth
will taper as market gets mature .
• Fast transition is supported by VN
consumers’ high appreciation for
lifestyle products like smart
phones, which show owners’ social
status rather than satisfy materially.

8. 8
Smartphone Growth in Vietnam
5%
13%
7%
3%
2% 2%
12%
31%
14%
5%
2% 3%
<18 18 - 24 25- 30 31- 35 36-40 >41
Vietnam's smartphone user by OS & age group
IOS
Android
8%
23%
12%
5%
2% 3%
9%
21%
10%
4%
2% 2%
<18 18 - 24 25- 30 31- 35 36-40 >41
Vietnam's smartphone user by gender & age group
Male
Female
More than 60%
smartphone user
is aged below 25
years old.

9. 9
Mobile Game Market Trends in Vietnam
38.52
60.92
104.99
193.95
300.13
430.67
58%
72%
85%
55%
43%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
450.00
500.00
2013 2014F 2015F 2016F 2017F 2018F
We expect mobile game market size will reach over 100 m USD by 2015
Market size
Growth rate
We expect Vietnam mobile game market size to grow at CARG = 48% from 2014 – 2018
Long – term growth driver comes from:
1) Smartphone explosion : Lower cost devices,  potential demand from middle and low income consumer; provincial markets have
change to enjoy robust growth. (smartphone sale grow 30% in Q3 – 2014 continue to be catalyst for mobile game revenue).
2) 3G penetration rate is very low compared with 80% ratios seen in mature market.
3) Favorable demographics with young population;

10. 10
Mobile Game Market Trends in Vietnam
5.63
8.25
12.92
20.75
26.45
31.33
46%
57%
61%
27%
18%
0%
10%
20%
30%
40%
50%
60%
70%
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
2013 2014F 2015F 2016F 2017F 2018F
Number of Mobile gamer will grow rapidly at CARG = 31%, and will reach 13 m user by 2015)
Mobile Gamer (*)
g Mobile gamer

11. 11
Mobile Game Market Trends in Vietnam
Growth of Mobile gamers in Vietnam
5.63
8.25
12.92
20.75
26.45
31.33
46%
57%
61%
27%
18%
0%
10%
20%
30%
40%
50%
60%
70%
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
2013 2014F 2015F 2016F 2017F 2018F
Mobile Gamer (*)
g Mobile gamer

12. 12
VIETNAM MOBILE GAME MARKET

13. 13
The VN Market – Play Style and Popular IP

14. 14
What About Casual?

15. 15
•2015
•Casual
Casual Social F2P With Strong Monetization
•2015
•Casual
•2015
•Casual
•2015
•Casual

16. 16
Proven Games With Strong IP
• 2014.12
• Casual
• 2014.10
• Card game battle
• 2014.08
• ARPG

17. 17
QUESTIONS

18. 18