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Shifting Gears: The Growing Importance of Mid Core Gamers.

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Kabam | Who am I

Keith KawahataVice President, Kabam Studios

• Revenue Group, Kabam Studios• RPG Genre, NA Studio

• >5 years F2P operations and development experience

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Kabam | What we do• Top 10 mobile gaming company by revenue

• 16 languages and played in 150+ countries

• #1 grossing iOS application in 2012

• #1 top grossing iOS game in over 50 countries

• 2 games in the iOS Top 10 monthly grossing

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Kabam | Who we are• $180M+ gross revenues in 2012

• 70% Y/Y growth

• $50M cash in bank

• Profitable and on track to grow revenues by more than 65% this year to $300M

• Seven titles that gross more than $1 million per month

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Kabam | Where we are

700 employees globally

Asia(Beijing, Seoul)

Europe(Luxembourg,

Berlin, London)Austin, TXSan Francisco, CA

HeadquartersVancouver, BC

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Follow-up• Andrew Sheppard

• Casual Connect Hamburg

• Available on Youtube & CasualConnect.org

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Market Update

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Market Update | Worldwide

2012 2013E 2014E 2015E 2016E 2017E -

20,000

40,000

60,000

80,000

Tablet Mobile Web BasedSocial Networks Connected Console PC Digital MMOs

2012 2013E 2014E 2015E 2016E 2017E -

20,000

40,000

60,000

80,000

Rest of World Asia Europe US

• $77B in 2017

• Tablet = fastest growing market

• Smartphone = biggest opportunity

• Asia > U.S. > Europe

• ROW = fastest growth

*Source: IDG May 2013

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Market Update | Misc

• Social networks =

• Connected consoles =

*Source: IDG May 2013

2012 2013E 2014E 2015E 2016E 2017E -

2,000

4,000

6,000

8,000

Other Facebook

2012 2013E 2014E 2015E 2016E 2017E -

3,000

6,000

9,000

12,000

15,000

Rest of World Asia Europe US

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Market Update | Key Takeaways

• Mobile <> Tablet <> Social <> Connected Console

• Smartphone and tablet opportunity is MASSIVE

• Asia <> Europe <> US <> ROW

• Global execution opportunity is MASSIVE

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Who is your audience and what does he do?

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US Europe Asia21 13

5911 9

100

9 5

107

CoreMidcoreCasual

Audience | Population Sizes By Gamer Type*

Core:FPS/RPG/Fighting/MMORPG/MOBA

Midcore:Action-adv/Puzzle RPG/BCG/ CCG/ Sports/Racing/Empire/ Tower Defense/ Movie-based/ World-building

Casual:Puzzle/Hidden Obj/Word/IQ/Board/ Casino/Farm/City/Restaurant/ Business Mgmt/ Platform/Pet/Educational/Party/ Music/Arcade/Fashion/ Drawing/Fishing

*-ages 18 to 65; among mobile gamers only

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Audience | Demographics and Engagement

Demographics• What age difference?• Battle of the sexes

Engagement• Midcore FTW

Smart

phone

Tablet

Socia

l Netw

ork PC

F2P/su

bMM

O PC

Home Console

36% 36%

16% 15%19%

18% 17%

35%40%

24%

more time

Less time

Midcore Segment

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Audience | Monetization

Conversion Rate• Know your regions

ARPU• Opportunity for core business models

and systems in midcore and casual games

US Europe Asia

41%36%

48%

8%18%

27%

6% 9%14%

Core Midcore Casual

Conversion Rates

Core Midcore Casual

$26

$7 $5

In-Game Item PurchasesFull Game App Purchases

ARPU

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Bringing it all together

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Opportunities Summary• Opportunities are MASSIVE

• Mobile/tablet platform FTW

• Asia is required for global maxima

• Midcore is the hottest target segment with growing engagement, spend and audiance.

Arbitrage will shrink as budgets, build times and team capabilities increase relative to the market opportunity

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How do you target mid core?• Know your demographics

– >40% female across all geos

• Know your attiudinal drivers– >30% of mid core gamers play because of friends both RL

and virtual

• Know your awareness drivers– <10% of mid core gamers find games from mobile/social ads

• Quality matters– >40% of mid core gamers find games from personal

recommendations (ie word of mouth)

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Q&A?