1

Building a Pipeline for Zalo Game Center

CHRIS LIUHEAD OF MOBILE GAME PUBLISHING, VNG

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VNG PRODUCT PORTFOLIO

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

Zalo – the Line, Wechat, & KaKao of Vietnam

5

VIETNAM MOBILE MARKET OVERVIEW

6

Vietnam Market Potential

93.662.030Total

Population

180.000.000Mobile

subscriptions

35.000.000+3G

subscriptions

33.000.000+Smartphones sold in

2014

7

Smartphone Growth in Vietnam

2013 2014 2015 2016 2017 2018 2019

19%

30%

40%

49%

57%

64%70%

We expect penetration rate will reach 70% by 2019

VN smartphone pent rate

Hongkong Singapore Malaysia Australia UK China France Gemany US Thailand Indonesia India Philipines Vietnam

87% 87%

80%75%

72% 71%

64% 62% 60%

49%

23%18%

15%

30%

Smartphone penetration rate 2014Smartphone 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.

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Smartphone Growth in Vietnam

<18 18 - 24 25- 30 31- 35 36-40 >41

5%

13%

7%

3%2% 2%

12%

31%

14%

5%

2% 3%

Vietnam's smartphone user by OS & age group

IOS

Android

<18 18 - 24 25- 30 31- 35 36-40 >41

8%

23%

12%

5%

2% 3%

9%

21%

10%

4%2% 2%

Vietnam's smartphone user by gender & age group

Male Female

More than 60%

smartphone user

is aged below 25

years old.

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Mobile Game Market Trends in Vietnam

2013 2014F 2015F 2016F 2017F 2018F0.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00

500.00

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

38.5260.92

104.99

193.95

300.13

430.67

58%

72%

85%

55%

43%

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;

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Mobile Game Market Trends in Vietnam

2013 2014F 2015F 2016F 2017F 2018F0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

0%

10%

20%

30%

40%

50%

60%

70%

5.63

8.25

12.92

20.75

26.45

31.33

46%

57%

61%

27%

18%

Number of Mobile gamer will grow rapidly at CARG = 31%, and will reach 13 m user by 2015)

Mobile Gamer (*)g Mobile gamer

11

Mobile Game Market Trends in Vietnam

Growth of Mobile gamers in Vietnam

2013 2014F 2015F 2016F 2017F 2018F0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

0%

10%

20%

30%

40%

50%

60%

70%

5.63

8.25

12.92

20.75

26.45

31.33

46%

57%

61%

27%

18%

Mobile Gamer (*)

g Mobile gamer

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VIETNAM MOBILE GAME MARKET

13

The VN Market – Play Style and Popular IP

14

What About Casual?

15

• 2015• Casual

Casual Social F2P With Strong Monetization

• 2015• Casual

• 2015• Casual

• 2015• Casual

16

Proven Games With Strong IP

• 2014.12• Casual

• 2014.10• Card game battle

• 2014.08• ARPG

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QUESTIONS

18