Shifting Gears: The Growing Importance of Mid Core Gamers.

Kabam | Who am I Keith Kawahata Vice President, Kabam Studios Revenue Group, Kabam Studios RPG Genre, NA Studio >5 years F2P operations and development experience

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

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

(Luxembourg, Berlin, London) Kabam | Where we are Vancouver, BC San Francisco, CA Headquarters Austin, TX Europe (Luxembourg, Berlin, London) Asia (Beijing, Seoul) 700 employees globally

Follow-up Andrew Sheppard Casual Connect Hamburg Available on Youtube & CasualConnect.org

Market Update

Market Update | Worldwide $77B in 2017 Tablet = fastest growing market Smartphone = biggest opportunity Asia > U.S. > Europe ROW = fastest growth Total Market Digital gaming market growing at 11% CAGR to $77B in 2017 Tablet growth at 43% represents the fastest growing market in the category Smartphone represent the biggest opportunity in overall dollars growing at 16% CAGR Territories Asia is the biggest market for digital, followed by U.S. and Europe Rest of world has the fastest growth rate at 20% *Source: IDG May 2013

Market Update | Misc Social networks = Connected consoles = Social Network market overall is declining with Facebook declining at 6% Connected Consoles ( Virtual goods represents the largest opportunity on connected console services U.S. and Europe make up the largest share of console services Majority of revenue is attributed to packaged goods virtual goods revenue but will evolve to more of a free-to-play model over time *Source: IDG May 2013

Market Update | Key Takeaways Mobile <> Tablet <> Social <> Connected Console Smartphone and tablet opportunity is MASSIVE Asia <> Europe <> US <> ROW Global execution opportunity is MASSIVE Know your platforms Opportunities are different Biz model opportunities are converging on F2P $77B is a massive opportunity Know your geographies Significant differences within regions as well

Who is your audience and what does he do?

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 Core: Plays 1+ Midcore: Plays 1+ AND is not Core Casual: Plays 1+ AND is not Midcore or Core Worldwide: Core = Midcore both > casual EU and US ~50% casual vs Asia 22% *-ages 18 to 65; among mobile gamers only

Audience | Demographics and Engagement What age difference? Battle of the sexes Engagement Midcore FTW more time Less time Midcore Segment Demographics Age differences are minimal across geos and gamer segments Sex differs across geos and gamer segments Ex: significant difference between core and casual in US and between core in US and Asia Engagement Smartphone/tablet midcore has the largest increase and least decrease compared to other segments Smartphone/tablet above all other platforms

Audience | Monetization Conversion Rates Audience | Monetization Conversion Rate Know your regions ARPU Opportunity for core business models and systems in midcore and casual games ARPU Conversion Rate: Midcore shows the highest regional variability CORE: 61% of ARPU driven by IAP <30% of ARPU driven by IAP for midcore and casual Opportunity

Bringing it all together

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

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)

Q&A?