Leveraging Iconic Hollywood IP to Create A Global Mobile Phenomenon

Speaker Introduction 2 Andrew Sheppard President, Kabam Studios $500mm in F2P revenue experience 10 years in gaming; 7 years in F2P First gaming hire at Kabam

A top 10 global mobile game company Revenues forecast at $270mm in % growth in 2012; 50%+ growth expected in apps currently ranked Top 15 globally #1 grossing iOS application in M+ registered users on Kabam.com 14 languages and 100+ countries 3

4 600 Strong Beijing 125 Employees Luxembourg 20 Employees Austin, TX 30 Employees San Francisco, CA Headquarters 350 Employees Vancouver, BC 50 Employees Berlin 25 Employees Seoul 5 Employees

A Case Study 5

E.T. the Extra-Terrestrial Developed and published by Atari in 1982 Total dev budget was $200k; team had 5 weeks to complete the game Retailers took massive amounts of inventory in the title banking on the games hit potential Game quickly rose to being a ‘top four’ on Billboard magazine's top video game sales charts Eventually sold 1.5 million units, becoming one of the best-selling Atari 2600 titles 6 But this story is not a happy one…

What happened!?! Consumers quickly realized that the game had been rushed to market The game itself was not fun Retailers purchased way too much inventory at Atari’s expense; mm cartridges went unsold IP licensing fees ate into Atari’s ability to earn a profit Despite US$25 million in sales, Atari netted a loss of US$100 million 7

A $100mm bill!?! 8

E.T. is not the only example… 9

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What can we learn from these games? Shipping within a critical launch window is important… BUT not at the expense of product quality The core gameplay experience must be fun The game must remain true to the license – Story – Art Direction – Gameplay The partners’ interests must be aligned 11 Hitting all of these ‘success factors’ is not easy!

So why does Kabam work with licensed IP? 12

Because we believe in brands… and because we believe all games should be great. 13

Key Partnerships 14

The Hobbit: Kingdoms of Middle-earth A once-in-a-lifetime opportunity for Kabam Perfect pairing of IP and genre/gameplay Worldwide ship date tied to launch of 1 st movie Fastest growing Kabam mobile title in 2012 Tight timeline required incredible discipline 15 Genre: Strategy Platform: iOS and Android Launch Date: Nov 1, 2012 The Hobbit redefined our success expectations

Highest Grossing (LTD) 16 The Hobbit was our fastest growing title until… Source: AppAnnie, May 20, 2013

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Fast & Furious 6 Franchise is incredibly popular within Kabam Gameplay and IP are made for one another Our largest global launch ever – 11 languages day- and-date! Fastest growing Kabam mobile title in 2013 Most innovative game in the category 18 Genre: Racing Platform: iOS (Android later this summer) Launch Date: May 15, 2013

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Highest Grossing (LTD) 20 5 days and counting… Source: AppAnnie, May 20, 2013

Andrew Sheppard President, Kabam Studios Thank you!