High Quality Content for a Mass Market

KIEV 22nd January 2007

GAMELOFT COMPANY UPDATE

Latest figures: N° 1 Hot Growth company in Europe!! (BusinessWeek) 2 500 employees now, of which almost 2 000 dedicated to production

25 Gameloft titles eclipsing one million units sold each

Latest Awards: Mission Impossible III wins What Mobile’s “Game of the Year 2006” “Best Mobile Game Studio” Award at Develop Industry Excellence

Awards

New Games, New Licenses: 47 new games in 2006 2007 = 20 3D Games already planned! New Licenses: Shrek the third, LOST, Desperate Housewives Videogames licenses: Splinter Cell Double Agent, Rayman 4

INTRODUCTION

VAS MARKET in UKRAINE Is booming

Potential Threat:

Is the natural growth of the market, which can hide the bad experience user.

So taking into account Ukrainian market specificities,

It’s a good opportunuity to pick-up some best practices of every market.

Why do you get a mobile?To make calls

FACTS

Why do you take one specific handset? Listen music, Or take pictures, Or send emails…

Still, you might be disappointing not having all other features

In fact, the market is more & more segmented.

Exactly the same for VAS! There are “Nice to have” services not a “must have” If end-users are disappointed about a service they won’t come back for a while!

MARKET FACTS

Our objective is to generate more ARPU How? thanks to High quality products & services.

Conclusion: Bring the best to end-user, enhance their experience & make them coming back Recruiting new users

What does High Quality means?

On a Game Perspective

1/ The product2/ Product’s choice3/ Nice Shop4/ Easy to Buy5/ At a good price6/ To a Mass Market

THE PRODUCT ITSELF

Strong licenses? Yes in some cases = brands doesn’t make all Quality is key

A good gaming experience: Quality of the Graphic Easy to play, Easy training, Short & numerous level, Ending games

Quality in term of Products Diversity

Users have different tastes in terms of gameplay

ActionSportsPuzzle / CardsArcade / ClassicsBrain gamesSimulationSexy

It is key for you to have games for all these segments to address your mass market audience

Of course those segments have different sizes so games have different performances depending on the respective sizes

Diversity doesn’t mean huge catalogue

A selected number of products

having 40 games in the racing category does not make sense: the user is just lost!

You need to offer a selection of the 3-4 best games in each genre to your consumers

Western Europe & US operators trend are

to rely on a limited number of publisher

Games portfolio are usually between 150 – 300 games

Your wap portal is a shop

Each click divides the penetration rate

Easy buying process = a short buying process 2-3 steps.

Building promotions on the home page is very successful

Ensure the product is similar to the screenshot & sales pitch

Leveraging the Portal Experience

Maximize the 1st Experience

Time to Market

82% of all content sold in the lifetime of a phone is sold in the first 3 months of the handset life

It is crucial to have content online day 1 when the handsets come out

Massive Handset Coverage

Huge Handset Compatibility Porting quality is not always good, it’s crucial to test a specific product on many

handsets

Both are a prerequisite to attract a wide audience

UK carrier: Samsung D500

1,013

5,075

6,903

15,295

9,663

5 5 3 3 5 11 11 11

8,845

5,236

1390

Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05

Downloads

Number of SKUs live

23,069 € net revenue

for the carrier

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

An idea base on other entertainment experiences A user is hot when he just bought some content Logos and ringtones experts have seen the impact of a targeted SMS right after

the first purchase

How to make them come back

Sell more after the end of this « honey moon »

between the user and his new phone

On the Mobile Game MarketMost of repeat purchases are done in the two monthes after the first purchase

The better the experience is, the higher the click rates are.

30% of the 2006 Real Football players bought a second game within a month !!!

Our goal is to keep on getting to know the consumer and optimize the repeat purchases

Simple click in the main menu to enter IGP menu

Presentation of In Game Promotion

Intuitive and quick navigation through the

« 5 magic button »

End user is taken to the buying page of the game on the Online Operator Portal

PRICE IS a Barrier for the growth of the market

M:Metrics study from Q2 2006 says that price is one of the 3 main reasons not to buy mobile games

THE HOT TOPIC OF PRICE

Benchmark: Korea

GNP / habitant: $20,000 in 2003 (Spain is $23,000)

Price of mobile games: 2,500 KRW for 2D games = 2€ 3,500 KRW for 3D games = 2.8€ Traffic: 1,500 KRW for 300 KB = 1.2€ Many unlimited data plan from 5,000 KRW per month

Penetration of mobile games: 12%

A good selling java game sells 80K a month for a 20 million customer operator

Price elasticity is even bigger when the customer bases are mainly prepaid users

Q&A