Vladimir Funtikov Co-founder, Creative Mobile GAMES AS A BUSINESS

THE STATE OF THE GLOBAL GAMES MARKET North-America, EMEA and Asia-Pacific are nearly equal in size with roughly 30% each.

MOBILE GAMING Growth during the past 5 years driven by penetration of handheld devices that are: Powerful enough to run immersive games Always connected, allowing for efficient digital distribution Equipped with low-friction payment mechanisms

MOBILE GAMING As markets are becoming saturated, future growth will be driven by high quality content and increased customer lifetime value. The era of landgrab is over and the industry is maturing with average production and marketing cost of a top-tier game exceeding €1M.

MOBILE HEROES Mobile gaming industry is very diverse. Although traditional tech hubs such as Silicon Valley and UK are well-represented, they don't dominate. Although costs have risen significantly, success in this space is mostly driven by knowledge and business savvy rather than headcount and raw marketing power.

MOBILE HEROES Many of the top grossing titles are produced by companies headquartered in smaller cities. Their headcount is often under 50 and profit margins exceed 50%.

GAMING INDUSTRY IN NORTHERN EUROPE Northern Europe has produced some of the top companies in the space: Originally founded in Sweden, King have reached just under $2bn in annual revenue (2013) and went public valued at $7bn. Helsinki-based Supercell grossed $892m in 2013 with $464m pre-tax income. 51% of the company was acquired for $1.5bn.

GAMING INDUSTRY IN NORTHERN EUROPE Rovio, also headquartered in Helsinki, announced €156m revenue in four years after the original Angry Birds game was released. Fingersoft, a 2-man team from Oulu, generated €15M in 2013 with 61% profit margin. Helsinki has emerged as one of the most important game development hubs in the industry.

CREATIVE MOBILE Based in Tallinn, CM have grown to 75 permanent employees since being founded in revenue was €7m, with more than 80% generated by Drag Racing, a game franchise now in its 4th year on the market. Since 2014 in-house development is focused exclusively on racing games. CM operate a publishing branch under the brand name Fun Factory.

VISION FOR 2015 As the market is becoming more mature, and barriers for entry get steeper, brands are increasingly relevant. Our current strategy is focused on building brands that will be perceived as the best in class by the target audience. This represents a significant departure from our previous strategy of producing many cheap games that brought CM success early on.

VISION FOR 2015 Since 2012 we are investing heavily in replacing current products with strong brands that dominate their niches. We expect this transition to complete in 2015.

THREATS AND OPPORTUNITIES Increasing competition is the obvious threat. There are companies enjoying access to high-quality talent pool, more financial resources and assistance from the state that are in direct competition with CM. Possibility of legal limitations imposed on in-game transactions remains a threat as well.

THREATS AND OPPORTUNITIES Opportunities are presented by the sheer size of our user base, cooperation with local publishers in new markets and co-branding deals with entertainment companies from other industries.