High Quality Content for a Mass Market KIEV 22nd January 2007

GAMELOFT COMPANY UPDATE Latest figures:  N° 1 Hot Growth company in Europe!! (BusinessWeek)  employees now, of which almost 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 s… 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 product 2/ Product’s choice 3/ Nice Shop 4/ Easy to Buy 5/ At a good price 6/ 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  Action  Sports  Puzzle / Cards  Arcade / Classics  Brain games  Simulation  Sexy 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, ,845 5, Dec-04Jan-05Feb-05Mar-05Apr-05May-05Jun-05Jul-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 Market Most 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 Q 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

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