Unveiled the Secrets of Social Game Operation Dr. Shumian He GREE Beijing Co., Ltd. 1

2 Introduction of GREE

History Listed on Mothers of the Tokyo Stock Exchange 2005 Started services for mobile phones in addition to PC services 2004 GREE, Inc. was founded Listed on the first section of the Tokyo Stock Exchange Launched “Fishing Star”, one of the world’s first social mobile games 2007

Recent Development 4 May Acquired Funzio Launched GREE Platform globally March Released "Zombie Jombie”, the 1 st mobile social game targeting global market October Established Beijing office April Partnered with Tencent January GREE International was founded

Annual revenue ： US$1,955mn（2012） 1 Global platform： 169 countries and regions 14 languages Over a hundred games * 使用 2012 年 7 月 23 日汇率计算 ;1 日元对 人民币元 GREE Nowadays 5 1 The translation of JPY to USD are included solely for the convenience of readers outside Japan and have been made at the rate of JPY79.31 to US$1, the rate prevailing at June 30, 2012

Establish：October 2011 Employee：Over 100 CEO：Yusuke Amano 北京格联锐合网络科技有限公司 GREE in China 6

7 GREE In-house Developed Games * Major markets excluding Japan, China and KoreaRace your rivals for treasure in this car battle game. (released July 2012) ©K S/S ・ T ・ P ©G ・ A Copyright (Japan Only) More games coming soon …

8 Fishing Star

Product Summary 9

10 In-game Paid Items Paid Items Paid Items Bait Rod Rod Trap High ranked ones can reduce fishing time High ranked ones can attract various kinds of fish High ranked ones can give you a chance to get bigger fish

11 Paying amount Non- registered users Registration CVR Registered users Login UU Paying UU Activity Payment rate Payment rate ARPPU Retention rate Convertible rate KPI Analysis

Maslow’s Hierarchy of Needs in Game Design Morality, creativity, spontaneity, problem solving, lack of prejudice, acceptance of facts Self-esteem, confidence, achievement, respect of others, respect by others Friendship, family, sexual intimacy Security of body, of employment, of resources, health, property, etc. Breathing, food, water, sex, sleep, homeostasis, excretion Physiological Safety Love & Belonging Esteem Self- actualization 12

Evolution of Fishing Star – Friends & Community 13 Borrow friends’ rods without leading to any rod depreciation Send greeting messages to friends Re-invite function to reduce loss of users and raise the stickiness of existing users

LvUP Fishing + + LvMAX Power up Decompose Compose LvUP Upper Limit Evolution of Fishing Star – Upgrade of Rod 14

Basic Game Cycle Game Cycle Collections / Title Fishing Exp / Coins / Maps Fishing Equipment Action Expansion Rewards Friends / Community / Events Blessing (lucky dip) Esteem Love & Belonging

The Importance of Localization 16

Fishing Games in China? 17

Fishing Games in China? 18

Fishing Games in China? 19

* 使用 2012 年 7 月 23 日汇率计算 ;1 日元对 人民币元 Different User Preferences 20 United States China Japan  Simulation  Car racing, sports and wars  Battle and competition  MMORPG  Historical themes  Battle, competition and tricks  RPG, casual, cards  Animation  Cooperation Source: AppAnnie as of Nov.7, 2012

21 Importance of Platform

* 使用 2012 年 7 月 23 日汇率计算 ;1 日元对 人民币元 How can we market/sell effectively? 22 PF P P P P P

Establish：May 2012 Description ：169 countries and regions 14 languages Over a hundred games * 使用 2012 年 7 月 23 日汇率计算 ;1 日元对 人民币元 GREE Global Platform 23

Platform Ecosystem 24Player Game Developer Social Media GlobalPlatform Happiness User base Revenue Game contents Media contents Targeted customer  Targeted search / promotion  Payment gateway  Integrated database  Targeted search / promotion  Payment gateway  Integrated database

We Have a Promising Future Ahead

26 Thank You ！