Hardcore Mobile

Games in Indonesia:

A Big Potential Market

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Indonesia: Biggest Potential Mobile Game Market in Southeast Asia

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Source: TechinAsia, onedevice

49

%

15

%

80

%

36

%

23

%

87

%Thailand Philippines Malaysia Vietnam Indonesia Singapore

Smartphone Penetration 2014

• Indonesia still has a relatively low smartphone penetration at 23%

• Indonesia also has the largest population at 250 million

Source: emarketer

4.80%

10.60%

16.60%

24.10%

29.20%

34.80%

39.80%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

2011 2012 2013 2014 2015 2016 2017

Smartphone Penetration in Indonesia• Smartphone

penetration is projected to hit 39.8% in the next 3 years

• This means 38 million first time mobile gamers

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Indonesia: Biggest Potential Mobile Game Market in Southeast Asia

Hardcore Mobile Game Market Will Be Influenced By 3 Factors

Hardcore Gaming Market

for Mobile Games

Ability to play hardcore games

Willingness to play Hardcore Games

Ability to monetize

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Analysis of Gamer Demographics of Hardcore Mobile Games

Source: newzoo, appdata, Developers Magmic

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Males aged 18-35 are the biggest consumers in terms of size of demographic

Demographics Show Relatively Young Population, Perfect for Hardcore Games

Source: CIA World Factbook, Index Mundi

• The biggest population bulge in Indonesia today is between the ages of 10 to 19

• In 3 years time, we will see a huge bulge in the population from the 18 to 24 age range

• This is the audience that developers should develop for

• Indonesia’s demographics are perfect for hardcore games

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Do Indonesian Mobile Gamers Have the Ability to Play Hardcore Games?

Source: Markplus Insight, Mobile World Live

Low-End Smartphones

• Smartfren

• Evercross

• Blackberry

• Nokia

Higher-End Smartphones

• Xiaomi?

• Apple?

• Samsung?

• The current market for Smartphones in Indonesia is dominated by low-end models

• We are likely to see a gradual move from low-end smartphones to higher-end smartphones

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Monetization: Likely to Remain the Largest Problem

Source: Euromonitor

46,03554,004

65,328

79,363

90,472

103,010

2009 2010 2011 2012 2013 2014

Number of Financial Cards in Circulation ('000)

• Today, the proportion of Indonesians holding financial cards is still small.

• Credit card penetration is at 1%

• Penetration of all other financial cards is at 20%

• There is a huge potential for growth in the future

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Payment via Financial Cards Facilitates a Higher Lifetime Value and Average Transaction Amount

Source: HALO (Digital)

48.75%84.23% 88.81%

51.25%15.77% 11.19%

2012 2013 2014

CHANGE IN METHOD OF

PAYMENT FOR MOBILE GAMES ON

THE HALO …

Financial Cards Prepaid Cards

Transaction values for high playing players on a selected hardcore game during the same period

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In Indonesia Today, casual games rule….

• Gradual increase in smartphones from lower end to higher end models

• Increasing smartphone penetration

Ability to Play Hardcore Mobile

Games

• High proportion of male smartphone users between the ages of 18 to 24 in next 3 years

Increasing Demand for

Hardcore Games

• Improving Penetration of Financial Cards

Ability to Pay for Games

Huge Potential

Market for Hardcore Games

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But in the next 3 years hardcore games are likely to see strong growth