social media · 2014. 10. 28. · august 2014 completion of merger and listing of group as migmeltd...
TRANSCRIPT
Social media for the next 3.5bn
MIGME LIMITED (ASX Code: MIG) Investor Presentation
October, 2014
Prepared by Steven Goh
IMPORTANT NOTICE & DISCLAIMER
This presentation has been prepared by the management of mig 33 (the ‘Company’) in connection with meetings with private and institutional investors,and not as specific advice to any particular party or person. The information is based on publicly available information, internally developed data and othersources. Where any opinion is expressed in this presentation, it is based on the assumptions and limitations mentioned herein and is an expression ofpresent opinion only. No warranties or representations can be made as to the origin, validity, accuracy, completeness, currency or reliability of theinformation. The Company disclaims and excludes all liability (to the extent permitted by law) for losses, claims, damages, demands, costs and expenses ofwhatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any ofit.
Forward Looking Statements” Disclaimer
The documents provided contain statements related to our future business and financial performance and future events or developments involving theCompany that may constitute forward‐looking statements. These statements may be identified by words such as "expects," "looks forward to,""anticipates," "intends," "plans," "believes," "seeks," "estimates," "will," "project" or words of similar meaning. We may also make forward‐lookingstatements in other reports, in presentations, in material delivered to stockholders and in press releases. In addition, Company representatives may fromtime to time make oral forward‐looking statements. Such statements are based on the current expectations and certain assumptions of the Company’smanagement, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond the Company’s control, affectthe Company’s operations, performance, business strategy and results and could cause the actual results, performance or achievements of the Company tobe materially different from any future results, performance or achievements that may be expressed or implied by such forward‐looking statements oranticipated on the basis of historical trends. Due to rounding, numbers presented throughout this and other documents may not add up precisely to thetotals provided and percentages may not precisely reflect the absolute figures. The documents provided in this presentation include supplemental financialmeasures that are or may be non‐GAAP financial measures.
Disclaimer
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The Opportunity: The rise of the rest of the world
The first world internet grew from bulletin boards, dial up modems, broadband and then mobile (majority iOS) and resulted in Yahoo,
Google, Facebook, Twitter and many others.
The next wave in East Asia grew from dial up modems, broadband then mobile (majority now Android) and resulted in Tencent, Sina,
Baidu, Naver and many others.
Internet usage in the developing world (over 3.5bn people) is now rising sharply through the abundance of sub $200 Android
smartphones. What will this lead to?
Migme aims to be the social fun and entertainment destination for the next 3.5bn ..migme ltd is uniquely positioned to realise the opportunity that is the rise of the internet for the next 3.5bn
migme Ltd was listed on 11 August, 2014 and holds 3 operating businesses:
Operating Business:migme (100%): Core Social Media Platform, Social Networking & Entertainment for Emerging Markets Headquartered in Singapore and offices in Malaysia, Indonesia, and Taiwan (120 Staff)http://www.migme.com
AliveNotDead (100%): Artist & Media community. Headquartered in Hong Kong, but presence in Korea. Includes 1800 artists in East Asian ecosystem. 3 Staff. http://alivenotdead.com
Lovebyte (100%): Couples app (iOS + Android). Avatars and Virtual Gifts. Located in Singapore. 4 Staff. http://lovebyte.us/
* main operating business
migme Ltd : Corporate overview
Code: ASX:MIG, Deutsche Börse: WELA (WKN: A117AB)
Last price: A$0.34 (ASX)
Issued capital 251 million ordinary shares
15 million unlisted options
Market cap A$90 million
Website www.mig,me
Top shareholders
Big Build Enterprises Ltd 19.9%
Founder & Board members 16.3%
Employees 15.0%
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Services: Social entertainment platform. Includes Chat, Miniblog, Virtual Gifts & Games
Users: >5m Monthly Active Users and growing
Countries: Primarily emerging markets outside of East Asia: Indonesia, India, South Africa & many others
Monetisation: Premium Activities: Virtual Gifts, Games & Competitions
What is migme?
Scalable Proven Business Model
Initial Engagement:
• Chat (QQ)• Blog (Sina’s Weibo)• Sharing & Likes (Facebook)
Deepen Engagement:
• SNS• UGC• Social Games• Information
Valuable Services
• Avatars• Virtual Goods• Games• Premium Content
Payment:
• Prepaid• Operators• Advertising
Initial Engagement:
• Chat/Chatroom• Communications• Miniblog
Deepen Engagement:
• SNS• UGC• Social Games
Valuable Serivces
• Virtual Goods• Avatars• Premium Services• Social Games
Payment:
• Prepaid• Advertising &
Sponsorships
From Free Services …
Making Virtual Services Valuable .. Collecting the Cash!
From Free Services …
Making Virtual Services Valuable .. Collecting the Cash!
Tencent QQ
migme adopts a scalable freemium business model using it’s platform to BUILD AUDIENCE through miniblog, chat, and other free services, then creates VALUABLE INTERACTIONS such as premium items in premium communications, media and entertainment services, games, ecommerce, etc then COLLECTS THE CASH through a range of channels.
Market Positioning
It's social network and an entertainment platform
• migme is the platform where people in emerging markets communicate, play and engage.
• Differentiated to other social networks, the keys are: identity, how people talk, the sense of community and having payment infrastructure in place.
• A social network has value: you can form partnerships and sell other products and services
Social Network Services
Allows premium interactions between users such as virtual gifts and chat room games
• Users can invest in identity/avatar by purchasing premium items
• The more premium interactions users take part in, the more their status and popularity increases within the service
Entertainment & Media Services (1)
Case #1
Girl Singing Duo, blogs that they’ve broken up with their boyfriends and ask for hugs and kisses (both chargeable virtual gifts), and tells the story of the competition interactively.
In a weekend, they drive over 40,000 virtual gift sales at between 5c and 20c each, and share the revenues with migme.
migme works with content producers (artists, media companies, bloggers, etc) in emerging markets where they make no money by being on facebook or twitter, to create premium experiences. They build fan bases comparable to being on facebook / twitter, and share in revenues with migme.
Entertainment & Media Services (2)
Case #2
Bollywood actress poses a question on which Sari to wear to an event on the weekend.
Send one type of gift ($) to her with a message for one Sari, and another gift ($) for different Sari. On the weekend she posts what she wore and announces a winner. Drives over 20,000 gifts.
migme works with content producers (artists, media companies, bloggers, etc) in emerging markets where they make no money by being on facebook or twitter, to create premium experiences. They build fan bases comparable to being on facebook / twitter, and share in revenues with migme.
Entertainment & Media Services (3)
Case #3
migme works with a production house to run a singing competition (viewable in media such as print, tv, digital, etc) and use a combination of posts in migme of entries and tell the story of the competition, and virtual gifts to vote on a winner (drives hundreds of thousands of gifts and puts mig.me in front of millions of people)
migme works with content producers (artists, media companies, bloggers, etc) in emerging markets where they make no money by being on facebook or twitter, to create premium experiences. They build fan bases comparable to being on facebook / twitter, and share in revenues with migme.
Market Development: Singapore (marketing, corp& biz dev, audience), Taiwan (corp & biz dev), Indonesia (market development), South Asia (market development), Hong Kong (alivenotdead)
Product Development, Platform Operations & Capability: Singapore (head office, product development, audience, marketing, finance), Taiwan (development), Malaysia (platform operations), san jose (network operations)
Balanced market / operations fit
Over 110 Staff employed. Match of Market development in forward facing locations, and Product / Engineering / Operations in productive / low cost locations.
BOARD OF DIRECTORS
Howard Dawson (Chairman)
Steven Goh (CEO & Cofounder).
Charles Pan (Executive Director)
John Lee (non executive director)
Dmitry Levitt (non executive director)
Andy Zain (non executive director)
Yichin Lee (non executive director).
Experienced Team ‐ Board of Directors
EXECUTIVE MANAGEMENT
Mei Lin Ng (VP Marketing & Cofounder)
Gene Yu (VP Corporate & Business Development)
Sam Holmes (Director Audience)
Sharon Yar (Director Creative)
Zhang Yan (Director Product)
Jeffrey Lim (VP Engineering)
Keith Long (Platform Operations)
January, 2014 Announced merger with Latin Gold Ltd and Project Goth Inc (“mig33”)
February 2014 Acquisition of alivenotdead pty ltd (“alivenotdead”)
May 2014 FIH Mobile Ltd placement
August 2014 Completion of merger and listing of group as migme ltd (“migme”)
August 2014 Signed distribution agreements in Indonesia with Smartfren, Spice Mobile and Trikomsel
September 2014 Artist agreement with Universal Music (Indonesia)
October 2014 Acquisition of Lovebytes Pte Ltd (couples app + avatars + virtual gifts)
Corporate Milestones (2014)
Aug ’13
Aug’14
>5mMAUs
2.2m MAUs
Market 3.5bn
People
The Future
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What’s next?
Winning markets through partnerships / acquisitions / platform development:
• Fire hydrants (large sources of new users): Distribution, Preinstalls, Apps, Media Partnerships
• Engagement: Apps (Games, Ecommerce, , Media Partnerships,
• Viral: Apps & Games, Media Partnerships
• Monetisation: Premium Activities, Payment Providers
Focus:
• Key emerging markets: Indonesia, South Asia (India, Nepal, Pakistan, Bangladesh, etc), and South Africa. Option markets: Philippines, Middle East, Eastern Europe.
• ASX Listed (ASXCode: MIG). Balanced Share register.
• Rising opportunity in emerging markets presented by low cost smartphones
• Experienced Board and Management Team.
• Relevant Product/Market fit and Corporate momentum.
Summary
