opp day q1/2020 agenda · china is set to substantially overtake the us movie market by the year...

Opp day Q1/2020 Agenda

• Business overview

• Q1/2020 financial statistics

• 2020 Business outlooks

2549 (2006) 2552 (2009) 2553 (2010)

Founded Yggdrazil visual effect to

provide post production service

Founded YGGDRAZIL GROUP (“YGG”) after

got tax privilege from BOI for software

enterprise in digital content category

Moved location to Town in Town area in

310 Building for business expansion

2557 (2014) 2558 (2015) 2559 (2016)

Registered and fully-paid in capital 40

MB for increasing working capital and

expanding business

Expand working area to building 346 and

348 for supporting business expansion

and new business

• Setup Animation and Game business

department

• Started to develop Home Sweet Home 1

• Registered and fully-paid in capital

50 MB

2560 (2017) 2561 (2018) 2562 (2019)

• SME private equity Trust by GSB

invested 9% in YGG which amounting to

50 MB.

• Launched and succeeded in Home Sweet

Home 1

• China company hired YGG produced Home

Sweet Home 2 and Project no.6

• Animation department was established,

and fully operation

• Converted to YGGDRAZIL GROUP Public

Company Limited

• YGGDRZIL GROUP Initial Public Offering

(IPO) by listing in Market of

Alternative Investment (MAI)

VISUAL EFFECT PRODUCTION SERVICES

VISUAL EFFECT PRODUCTION SERVICES

The First-Ever

Original Netflix

Thai series

ANIMATED FEATURE FILM PRODUCTION SERVICES

First-person horror adventure gameGenre : Survival, Horror, Adventure, PuzzleAvailable : PC, VR (Oculus Rift and HTC Vive), PS4 & XboxDistribution Channel : Steam, Greenmangaming, Humblebundles, Bundlestars, and G2ATarget Audience: 18+Official Trailer: AvailableOfficial Demo: Available (November 2016)Release Date: 26 September 2017Price: Depends on region (Standard in U.S. Dollars : $16.99)

HOME SWEET HOME EP.1

HOME SWEET HOME EPISODE 2

Project number 6

Financial Statistic

Operating results

Operating results (cont’d)

85%

15%

201685.2 MB.

61%

39%

2017135.4 MB.

57%

43%2018

170.7 MB.

33%

67% 2019196.6 MB.

Domestic International

Origin by Segment• Animation is mostly from international

clients• VFX is a mix between local and

international

Customer Type• Most VFX clients are agency and/or

production houses• Animation is generally direct from IP

Holder or sub from lead production house30%

70%

2020 Q1 Core Rev53 MB.


Backlog: +138% or +64 MB from the prior period


Financial Position and Capital Structure

(Figured in THB MM or otherwise stated)


Financial Position and Capital Structure

*Equity based calculated from the average of Q1 2019 and Q1 2020* Net profit is rolling 4-quarter profit

Business Outlook

2020 Business Outlooks – VFX

TV advertisement spending has been

declining since 2016 and stabilize in

2018-2019. This also affects overall

production budget of advertisers and in-

turn budget for VFX

We expect additional slight decline in the

near future in line with overall domestic

economy

TV advertisement spending growth is slow

and steady; however, the real growth

segment is abundance in Online Video

segment in-line with shift in

advertisement budget over to online (e.g.

Youtube)

2020 Business Outlooks – ANIMATION

Cinema Market – Rise of China (and Asia) O-T-T Market: Battle of Original Content

Based on the statistics, Asia Pacific region

has the potential to be the next big market

for OTT market, as the region has the highest

projected CAGR during the period 2017 – 2023,

at the rate of 25.99% p.a.

In addition the OTT market is highly

competitive, and the which the winning edge in

the industry is the ability to create original

contents that will retain and attract viewers

China is set to substantially overtake the US

movie market by the year 2020 onward, in which

China is projected to have a CAGR of 18.96

p.a., and coming in significantly behind is

the US market at a CAGR of 1.23% p.a.

The rise of Chinese movie industry is the

result of the increase in viewer channels,

which the video streaming market such as

Netflix is the main contributor for the

increase

2020 Business Outlooks – Animation

• Animation and VFX market is expected to grow at a CAGR of over 9% during 2020-2025.

• Rapid increase in number of customers using OTT.

• In USA Cost of producing Animation featured film range from USD 20 – 300 Mil, VFX accounted for 20-25% of the budget.

• OTT for Animation and VFX market valued approximately USD 2,500 Mil.

• Customers expectation for good visual experiences demand for high-quality VFX and Animation

https://www.businesswire.com/news/home/20200131005198/en/Global-Animation-VFX-Industry-Report-2020-2025-Demandhttps://www.mordorintelligence.com/industry-reports/animation-and-vfx-market

2020 Business Outlooks – Game / VR

• Game market value at USD 196 Bil by

2025, CAGR @9% - lead by console

and mobile.

• Mobile game market value at USD

77.2 Bil in 2020, +13.3% YoY.

• APAC is important region – leading

by China, which has game market

valued at USD 36.5 Bil.

• Thai game market worth TMB 22,000

mil – Growth at 13% YoY

• Stronger adoption rate of VR / AR

technology post-covid era as

barrier to trial has been overcome

• https://newzoo.com/insights/articles/mobile-games-market-engagement-revenues-covid-19-gaming/• https://newzoo.com/insights/articles/the-global-games-market-will-generate-152-1-billion-in-2019-as-the-u-s-overtakes-china-as-the-biggest-market/• https://www.bangkokbiznews.com/news/detail/852235

2020 Business Outlooks – Game

Key Summary

Genre• Asymmetrical-Balance Survival

Game

Players • Online Multi-Players

Expected Launch • Q3 2020 Public Beta

Devices • PC & Mobile

Target Audience • 18-40 SEA

Core Revenue Model • Free-to-Play Pay-to-be-Cool

Supplementary Revenue

Model

• Product Tie-In

• E-Sport Tournament


• Nintendo profit increased by 41%* FS – increase demand during COVID-19• Launching Home Sweet Home Survival

*https://positioningmag.com/1277485

opp day q1/2020 agenda · china is set to substantially overtake the us movie market by the year...

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