1. Smart and Social The Industry’s Crown Jewel

2. 2 Introduction Senior Research Analyst at Robert W. Baird & Co. Baird is one of the largest private investment banks Prior experience as software developer, Internet start-up and Wall Street background at JP Morgan and Lazard Covered Internet and Interactive Entertainment for 10 years Based in San Francisco

3. 3 Overview Industry performance Market forecast Power of Exponential Influence of Facebook and shift to Mobile Conclusions

4. Global Video Game Market 4 Source: RW Baird & Co. estimates

5. Video Games Fastest Growth Media 5 Source: RW Baird & Co. estimates

6. Games are the most important form of digital media 6

7. Platform Growth Rates 7 Source: RW Baird & Co. estimates

8. E-commerce model to monetize games 8 Source: RW Baird & Co. estimates

9. Beauty of Free-to-Play 9 Source: RW Baird & Co. estimates

10. Forecast for Mobile and Social 10 Source: RW Baird & Co. estimates

11. Significant Opportunity in Mobile Advertising 11 Source: RW Baird & Co. estimates

12. Global Video Game Industry Growth will be driven by Smart Devices 12

13. Smart + Social are exponential Rapid increase in smart devices Social game mechanics now available on Mobile O/S Virtual goods sales expand monetization Global opportunities Competitive platform wars good for developers –Android –iOS –Windows –Samsung 13

14. Smart + Social are exponential 14

15. Filling the Stadium 1)45 minutes 2)3 hours 3)12 hours 4)2 days 15

16. Wave of Smart Devices 16 Source: RW Baird & Co. estimates

17. Game Usage on Smartphones 17 Source: RW Baird & Co. estimates

18. Exponential – GREE mobile users (in M) 18 Source: Company Reports

19. Tablet Sales Growing Faster than Phones 19 Source: RW Baird & Co. estimates

20. Multi-device Lifestyle 20

21. % of Internet Traffic from Smart Devices 21 Source: RW Baird & Co. estimates

22. App Sales are Global 22 Source: Flurry

23. % of Internet Traffic from Smart Devices 23 Source: RW Baird & Co. estimates

24. Facebook RevenuesZynga Growth Rate 24 Payments Growth on Facebook is Slowing Source: RW Baird & Co. estimates

25. Focus Turning from Facebook to Mobile 25

26. Smart Devices are a disruptive force similar in scope to web browsers 26

27. Platforms are key 27

28. Conclusions Huge wave of smart devices Exponential growth dynamics Global opportunities More attractive growth profile vs. Facebook Efficient distribution – use the tools, play the platforms 28

29. 29 E-mail: csebastian@rwbaird.com Twitter: @colin_sebastian Questions/Discussion