RAZER INC. · GPU rendering in the cloud – 4K 60 FPS Low Latency High Bandwidth Streaming • NEW PLAYERS • Will require the entrance of new players including: • Cloud Providers

1© 2019 RAZER INC. ALL RIGHTS RESERVED.

RAZER INC.I N V E S T O R P R E S E N T A T I O N | 1 H 2 0 1 9 E A R N I N G S


AGENDA

1

3

4 OUTLOOK

FINANCIAL REVIEW

Min-Liang Tan – Co-founder and CEO

Edwin Chan – CFO

Min-Liang Tan – Co-founder and CEO

1H 2019 HIGHLIGHTS

2 GROWTH INITIATIVES

Limeng Lee – CSO


Potential investors and shareholders (the “Potential Investors and Shareholders”) of Razer Inc. (the “Company”) are reminded that information contained in this Presentation comprises extracts of operational data and financial information of the Company and its subsidiaries (the “Group”) for the six months ended 30 June 2019. The information included is solely for the use in this Presentation and certain information has not been independently verified. No representations or warranties, expressed or implied, are made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions presented or contained in this Presentation. Potential Investors and Shareholders should refer to the 1H 2019 results announcement for the results of the Company which are published in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The performance and the results of operations of the Group contained within this Presentation are historical in nature, and past performance is no guarantee of the future results of the Group. Any forward-looking statements and opinions contained within this Presentation are based on current plans, estimates and projections, and therefore involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward looking statements and opinions. The Group, the directors, employees and agents of the Group assume (a) no obligation to correct or update the forward-looking statements or opinions contained in this Presentation; and (b) no liability in the event that any of the forward-looking statements or opinions do not materialize or turn out to be incorrect.

Potential Investors and Shareholders should exercise caution when investing in or dealing in the securities of the Company.

LEGAL DISCLAIMER


1H 2019 HIGHLIGHTS

MIN-LIANG TANCO-FOUNDER and CEO


KEY HIGHLIGHTS

RECORD HIGH REVENUE with 30.3% YoY growth to US$357.2MN

High-margin Services business grew 110.5% YoY to US$35.7MN.Gross Profit contribution to the group of approximately 20%.

Net Loss Margin SIGNIFICANTLY IMPROVED by 740BPS to 13.4%;Net Loss NARROWED to US$47.7MN.

+110.5%


RECORD HIGH REVENUEYEAR-ON-YEAR GROWTH BY 30.3%

NET REVENUE(US$ MN)

274.2

357.2

1H 2018 1H 2019

+30.3%


SERVICES REVENUE GREW 110.5% YoYSERVICES CONTRIBUTION FURTHER SCALES

SERVICES GROSS PROFIT CONTRIBUTIONSERVICES NET REVENUE(US$ MN)(US$ MN)

0.1

17.0*

35.7*

1H 2017 1H 2018 1H 2019

+110.5%

*Inclusive of Razer Gold virtual credits and Razer Fintech

0.1

10.8

14.9

1H 2017 1H 2018 1H 2019

GPM

41.7%1H 2019

GPCONTRIBUTION

20%1H 2019


NET LOSS NARROWEDNET LOSS MARGIN SIGNIFICANTLY IMPROVED BY 740BPS

LOSS FOR THE PERIOD(US$ MN)

-57.1

-47.7

-20.8%

-13.4%

1H 2018 1H 2019

Net loss Net Loss Margin +740BPS


THE RAZER ECOSYSTEM:AND HOW IT GREW IN 1H 2019


Brand-centricEcosystem

ONE OF THE WORLD’S LARGESTINTEGRATED GAMING PLATFORMSEnhance user experience via access to integrated software platform

70MN REGISTEREDUSER ACCOUNTS

40% YoYGROWTH

LEADER INGAMING HARDWARE Opportunities to expandinto other gaming &lifestyle segments

US$303.7MN26.2% YoY

GROWTH

ONE OF THE WORLD’S LARGEST VIRTUALCREDITS FOR GAMERSOpportunities to offerother services to users

US$35.7MN110.5% YoY

GROWTH

THE WORLD’S LARGEST INTEGRATED GAMING ECOSYSTEM


THE RAZER ECOSYSTEM:HARDWARE PERFORMANCE


240.8

303.7

1H 2018 1H 2019

(US$ MN)

HARDWARE REVENUE 26.2% GROWTH YoYDRIVEN BY STELLAR GROWTH IN SYSTEMS BUSINESS

NET REVENUE

+26.2%


BEST SELLING PERIPHERALS


SYSTEMS MARKET SHARE EXPANSION

* NPD Group Inc. market research: #1 in revenue share for 15” gaming laptops priced $1,800 and above

#1* MARKET LEADER


INDUSTRY LEADING CUSTOMER SUPPORT

Laptop Magazine April 2019


THE RAZER ECOSYSTEM:SOFTWARE PERFORMANCE


35

50

70

30

40

50

60

70

Jun-17 Jun-18 Jun-19

Total Registered User Accounts

40% YoY GROWTH TO 70 MILLION USER ACCOUNTSSTRONG GROWTH ACROSS ALL SOFTWARE OFFERINGS

YoY+40%

(In MN)


SOFTWARE

RAZER SYNAPSEIOT PLATFORM

RAZER CHROMA™ RGBUNIVERSAL RGB LIGHTING SYSTEM

RAZER CORTEXGAME LAUNCHER

70 MN REGISTERED USER ACCOUNTS(+40% YoY)


RAZER CHROMA™ RGBTHE GO-TO SOFTWARE PLATFORM FOCUSED ON GAMER TAM

25THIRD PARTYPARTNERS

500+RAZER CHROMA™ RGBENABLED DEVICES

150+AAA GAMES POWERED BY RAZER CHROMA™ RGB

As of late May 2019


RAZER CHROMA™ RGB ENABLED GAMES


THE RAZER ECOSYSTEM:SERVICES PERFORMANCE


SERVICES REVENUE GREW 110.5% YoYSERVICES CONTRIBUTION FURTHER SCALES

SERVICES GROSS PROFIT CONTRIBUTIONSERVICES NET REVENUE(US$ MN)(US$ MN)

0.1

17.0*

35.7*

1H 2017 1H 2018 1H 2019

+110.5%

*Inclusive of Razer Gold virtual credits and Razer Fintech

0.1

10.8

14.9

1H 2017 1H 2018 1H 2019

GPM

41.7%1H 2019

GPCONTRIBUTION

20%1H 2019


RAZER GOLDONE OF THE WORLD’S LARGEST VIRTUAL CREDITS FOR GAMES AND DIGITAL ENTERTAINMENT

19 MNOVER

WALLETS AND GROWING

+90% YoY

2,500+ LEADING GAME TITLES AND DIGITAL ENTERTAINMENT

600+ LEADING GAMEPUBLISHERS


RAZER GOLDA CHOICE PARTNER FOR PLATFORM PARTNERS WITH A TRULY UNIQUE WAYTO ENGAGE WITH GAMERS


GROWTH INITIATIVES

LIMENG LEECSO


MULTIPLE GROWTH DRIVERS

• CLOUD GAMING

• ESPORTS

• FINTECH

• MOBILE GAMING

• THX


CLOUD GAMINGPRIME MOVER IN THE GAMING INDUSTRIAL REVOLUTION


THE CLOUD GAMING OPPORTUNITY

*Source: Newzoo

• MARKET POTENTIAL• Potential users to reach 124.7 MN in 2022, CAGR +66%*

• MIGRATION FROM CLIENT TO CLOUD• Convergence of the PC, Console, Mobile gaming ecosystems.• GPU rendering in the cloud – 4K 60 FPS Low Latency High Bandwidth Streaming

• NEW PLAYERS• Will require the entrance of new players including:

• Cloud Providers• GPU Render Farms• Cloud Gaming Services• Carriers/Internet Providers/5G Infrastructure• Multiple new Access Points• VR/AR


COLLABORATION WITH TENCENT CLOUD


RAZER X TENCENT CLOUD• HARDWARE

• Both companies will work closely to launch a series of gaming hardware compatible with Tencent Cloud gaming solutions:• Mobile controllers and other high-performance peripherals and accessories

• SOFTWARE• Both companies will work together to integrate Tencent’s cloud gaming titles with Razer’s

software and technologies:• Razer Chroma™ RGB lighting

• OTHERS• Razer will support Tencent Cloud with its overseas expansion• As founding members of Tencent Global eSports Arena-Tech Alliance, Razer and Tencent Cloud

will leverage their advantages to further enrich the esports ecosystem


ESPORTSEXTENDING ON OUR BRAND LEADERSHIP IN ESPORTS


ESPORTS GAMES AND AUDIENCES

81.4MNHOURS WATCHED

27.1MNHOURS WATCHED

77.5MNHOURS WATCHED

41.4MNHOURS WATCHED

27.3MNHOURS WATCHED

Source : https://newzoo.com/insights/rankings/top-games-twitch-youtube/ (As of Jul-19)

https://newzoo.com/insights/rankings/top-games-twitch-youtube/


18 SPONSORED GLOBAL TEAMS

XIAN


TEAM RAZER @ TI9

E V I L G E N I U S E S A N D A L L I A N C E *

T H E A N N U A L D O T A 2 C H A M P I O N S H I PO N E O F T H E L A R G E S T E S P O R T S F I N A L S

U S $ 3 3 M I L L I O N P R I Z E P O O L

* At the time of announcement. TI9 started on Aug 20 and will run until Aug 25


SEA GAMES 2019

First medal esports event in the world sporting stage

Competing in 6 games across PC, mobile and console platforms

9 SEA countries

Reaching to 660 million+population in SEA


FINANCIAL PERFORMANCE

EDWIN CHANCFO


NET REVENUEDRIVEN BY STELLAR GROWTH IN SYSTEMS AND SERVICES BUSINESS

REVENUE BY SEGMENT(US$ MN)

241

30317

36

16

18

274

357

1H 2018 1H 2019Hardware* Software & Services Others

+30.3%

* Hardware includes Peripherals and Systems


GROSS PROFITLOWER BLENDED GPM DUE TO SHIFT IN PRODUCT MIX FOR HARDWARE

GROSS PROFIT(US$ MN)

79 76

1H 2018 1H 2019

GPM 29.0% GPM

21.2%


OPERATING EXPENSESADJUSTED OPEX AS % OF NET REVENUE IMPROVES BY 990BPS

(US$ MN)

OPERATING EXPENSES

11.5% 10.3%

4.7%6.0%

7.3%

8.3%

11.5%

10.3%

20

18

–

2

2

–

40.4%

30.5%

1H 2018 1H 2019

Selling and Marketing expenses Research and Development expenses General and Administrative expenses

Personnel Expenses Share-based compensation Restructuring expenses

M&A expenses Total adjusted OPEX as % of Net Revenue

111108

133

128


NET LOSS NARROWEDNET LOSS MARGIN SIGNIFICANTLY IMPROVED BY 740BPS

LOSS FOR THE PERIOD(US$ MN)

-57.1

-47.7

-20.8%

-13.4%

1H 2018 1H 2019

Net loss Net Loss Margin +740BPS


CASH FLOWS & WORKING CAPITALCASH FLOWS SUMMARY

(34)

(54)1H 2018 1H 2019

CASH FLOWS (USED IN) OPERATING ACTIVITIES CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES

(20)

2

1H 2018 1H 2019

(21)

(34)

1H 2018 1H 2019

634529

Jun-18 Jun-19

CASH FLOWS (USED IN) FINANCING ACTIVITIES CASH AND BANK BALANCES(US$ MN)

WORKING CAPITAL CYCLE

DAYS INVENTORY OUTSTANDING1 TRADE RECEIVABLES TURNOVER DAYS2 TRADE PAYABLES TURNOVER DAYS3 CASH CONVERSION CYCLE4

(Days)

3645

Jun-18 Jun-19

66 69

Jun-18 Jun-19

128

166

Jun-18 Jun-19

(26)

(52)

Jun-18 Jun-19

Notes:1 Days inventory outstanding equals the average of the opening and closing inventory balances divided by the cost of sales for the period and multiplied by the number of days in the period. 2 Trade receivables turnover days equals the average of trade receivables divided by the total revenue for the period and multiplied by the number of days in the period. 3 Trade payables turnover days equals the average of trade payables divided by the total cost of sales for the period and multiplied by the number of days in the period. 4 Cash conversion cycle for a period equals days inventory outstanding plus trade receivables turnover days less trade payables turnover days


OUTLOOK

MIN-LIANG TANCO-FOUNDER and CEO


OUTLOOK FOR 2019GROUPSOLID GROWTH. EXPANDING SERVICES. IMPROVING PROFIT PROFILE

Will continue to show solid revenue growth

Continue to expand high-margin Services business

Improving profit profile

GROWTH SEGMENTNEW OPPORTUNITIES. INVESTMENT MODE.

MOBILE GAMING Focus on enhancing gamer performance and user experiences including

through peripherals and accessories and mobile software, services and esports

RAZER FINTECH TPV to scale as we extend our capabilities in SEA and other emerging

markets

CLOUD GAMING Collaboration with Tencent Cloud and expect further progress in this area

THX Continue to lead in immersive digital entertainment as esports, gaming and

cinema converge

ESPORTS Continue to elevate esports to the mainstream and work with the best

esports athletes to develop stellar esports products

CORE SEGMENTPROFITABLE. GOOD GROWTH. PREDICTABLE.HARDWARE Continue to see good growth while GPM improves

SOFTWARE Further accelerate the growth of user base and user activity in

2019 to drive additional monetization opportunities

SERVICES Razer Gold virtual credits business to continue to scale with new

content, partners and channels


Q & A

Documents

RAZER INC. · GPU rendering in the cloud – 4K 60 FPS Low Latency High Bandwidth Streaming • NEW PLAYERS • Will require the entrance of new players including: • Cloud Providers