Company Overview

Company Overview
April, 2011

PopCap Games
It starts with the best casual game franchises
 For everyone  Everywhere  On your own or with friends

PopCap Confidential

1

Company Overview

Company Overview
Historical Revenues
$ in Millions

Revenue

 Founded: 2000  Employees: 400  HQ: Seattle, WA

 $120  $100  $80  $60  $40  $20  $‐ 2005 2006 2007 2008 2009 2010 Revenue

Create the most popular  game franchises  in the world
– PopCap’s Mission

PopCap Confidential

2

Company Overview

Market Perspective since WoW
NASDAQ Media Western Console Asia Online Games 500% 450% 400% 350% 300% 250% 200% 150% 100% 50% 0% Jan‐05 Jan‐06 Jan‐07 Jan‐08 Jan‐09 Jan‐10 Jan‐11
___________________________

∆ 2005‐2011 % Mkt Cap

Asia Online  +330% Games

+$66B

NASDAQ US Media Western Console

+22% ‐11% ‐33% ‐$39B ‐$2B

Index composition:   US Media: Disney, Time Warner/Time Warner Cable/AOL, News Corp. and CBS/Viacom;  Western Console: EA, Activision, Ubisoft, Take‐2, THQ, Midway and Atari;  Asia Online: Korea – NHN, NCsoft, Neowiz/Neowiz Games, CJ Internet, Webzen and Gungho; China – Tencent, NetEase, Shanda/Shanda Games, The9, Sohu/ChangYou, Perfect World, Giant, Kingsoft, NetDragon, GigaMedia and CDC; Japan – Gree, DeNA, mixi and CyberAgent.

Gaming Industry Transitions
Core

Audience

Core

Casual

Young, Male  Mass Market Regional  Global Indirect  Direct to Consumer

PopCap Confidential

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Company Overview

Demographic Trends
PopCap Gamer Age vs. US Population
40% 30% 20% 10% 0% 13‐17 18‐34 35‐44 Bejeweled Players 45‐54 55+ US Population >12 Plants vs. Zombies Players 40% 30% 20% 10% 0%

Gaming Industry Transitions
Subscription

Monetization

Free to Play Micro‐ transactions Freemium

Purchase

Try‐and‐buy

Single Strategy  Multi‐Strategy Fixed Price  Variable Price Advertising‐driven  Brand‐driven

PopCap Confidential

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Company Overview

Gaming Industry Transitions
Platforms

Platform‐centric  Multi‐Platform Fixed  Mobile Networked  Connected

Gaming Industry Trends
In Summary

 Audience Shifts

• Core Gamer  Casual Gamer (everyone)  Monetization Shifts • Purchase  Freemium/Micro‐transaction  Platform shifts • Console  Multi‐platform and connected

PopCap Confidential

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Company Overview

Addressing Massive Opportunity
WW Video Game Market ‘10E‐14E Rev CAGR WW Social & Mobile Gaming Market ($BN)
$19.1

Social 

Mobile 
$14.0 $10.4 $5.6

$16.5 $6.3

$7.1

35%

`
‐2% Console 0% PC

24%

$6.6 $3.0 $3.7

$4.3 $6.1

`
$8.4

$12.1 $10.2

Mobile

Social

2010E  

2011E  

2012E  

2013E  

2014E  

WW Video Game Market by Region ($BN)
2009 RoW $4.7 Europe  $8.2 U.S.  $12.8 2014E RoW  $6.6

Asia  $13.2

`

Europe  $11.1 U.S.  $16.1

Asia  $20.7

Source: Think Equity, 2011

Critical Success Factors
Maximizing disruptions in the game industry

 Best‐of‐breed Game Franchises  Multi‐platform (especially Mobile)  Online (especially Social)  Worldwide (especially Asia)
PopCap addresses these trends like no other

PopCap Confidential

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Company Overview

Our Franchises
2010 Revenues by Franchise

Other HOGS

Franchise Lifecycle
Original IP Platform Expansion

Game Mechanics Reference build Fun Geographies Channels Platforms Broader service

Franchise Management

Franchise as a  Service Consumer lifecycle  management Brand extensions

PopCap Confidential

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Company Overview

Great Games and Market Enablers
These trends will continue

PopCap

Market Enablers

Great  Games

Better  Devices Better  Stores Play w/  Friends

2011

Multi-Platform Business

Desktop
• • • • PopCap.com SpinTopGames 3P Portals Retail

Online
• Social • Web • Skill and  Chance • Sponsorships

Mobile
• Smart Phones • Feature  Phones • Tablets

Console
• Online • Retail

80% Digital vs. 20% Retail

PopCap Confidential

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Company Overview

PopCap and the Market Enablers
Transformed how our games are played
Desktop 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Mobile Online Console

2005 63% Desktop 34% Mobile 2% Online 1% Console
2005 2006 2007

2010 38% Desktop 34% Mobile 14% Online 13% Console
2008 2009 2010

Unique Cross-Platform Leadership
Top Download Games 2010
(casualcharts.com Days in Top 10, all sites)
# 1 2 3 4 5 6 7 8 9 10 Publisher Activision Blizzard Electronic Arts Take 2 Interactive THQ Square Enix Encore Atari PopCap Games Bethesda SoftWorks Microsoft Total PopCap Share

Top PC Retail Game Publishers for 2010
(NPD PC Games, $000s)
2008 165,467  194,288  29,568  41,895  21,025  14,862  16,528  5,899  13,077  32,586  704,982  0.8% 2009 118,905  210,510  28,903  40,733  6,600  16,170  17,268  10,528  12,117  25,242  682,046  1.5% 2010 279,616  139,706  38,223  20,003  18,013  17,193  14,859  13,838  13,760  13,371  701,252  2%

 2,000  1,500  1,000  500  ‐

1,676 

1,314  832  815  789  738  736  717  704  620 

Top Facebook Game Developers by DAU (March ’11)
# Publisher 1 Zynga 2 Electronic Arts (Playfish) 3 PopCap Games 4 CrowdStar 5 Wooga 6 Digital Chocolate 7 Disney (Playdom) 8 Happy Elements 9 MindJolt 10 Lolapps # of Games 47 24 2 18 5 14 37 11 4 1 DAU 58,206,588 5,820,296 4,885,730 3,629,237 2,836,465 2,706,622 2,678,691 1,781,053 1,491,981 1,153,774

Top-Grossing iOS Apps for 2010
(Apple Computer Rewind)

# App 1 MLB.com at Bat 2 Angry Birds 3 Call of Duty: Zombies 4 Bejeweled 2+Blitz 5 FriendCaller 3 Pro 6 Zombie Farm 7 TomTom USA 8 Tetris 9 Plants vs Zombies 10 Doodle Jump

Publisher MLB Rovio Activision PopCap Games C2Call GmbH The PlayForge TomTom Int’l BV Electronic Arts PopCap Games Lima Sky

PopCap Confidential

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Company Overview

Unique Cross-Platform Leadership
Top Download Games 2010
(casualcharts.com Days in Top 10, all sites)
# 1 2 3 4 5 6 7 8 9 10 Publisher Activision Blizzard Electronic Arts Take 2 Interactive THQ Square Enix Encore Atari PopCap Games Bethesda SoftWorks Microsoft Total PopCap Share

Top PC Retail Game Publishers for 2010
(NPD PC Games, $000s)
2008 165,467  194,288  29,568  41,895  21,025  14,862  16,528  5,899  13,077  32,586  704,982  0.8% 2009 118,905  210,510  28,903  40,733  6,600  16,170  17,268  10,528  12,117  25,242  682,046  1.5% 2010 279,616  139,706  38,223  20,003  18,013  17,193  14,859  13,838  13,760  13,371  701,252  2%

 2,000  1,500  1,000  500  ‐

1,676 

789  738  leadership • Unique 736  717  704  620  position in • Desktop • Online • Mobile • Console Top-Grossing iOS Apps for 2010 Top Facebook Game Developers by DAU (March ’11) ability to succeed with Computer Rewind) (Apple • Demonstrated # App Publisher # Publisher # of Games DAU MLB new monetization models 1 MLB.com at Bat 1 Zynga 47 58,206,588 832  815 
24 2 18 5 14 37 11 4 1 5,820,296 4,885,730 3,629,237 2,836,465 2,706,622 2,678,691 1,781,053 1,491,981 1,153,774 2 Angry Birds 3 Call of Duty: Zombies 4 Bejeweled 2+Blitz 5 FriendCaller 3 Pro 6 Zombie Farm 7 TomTom USA 8 Tetris 9 Plants vs Zombies 10 Doodle Jump

1,314 

2 Electronic Arts (Playfish) 3 PopCap Games 4 CrowdStar 5 Wooga 6 Digital Chocolate 7 Disney (Playdom) 8 Happy Elements 9 MindJolt 10 Lolapps

Rovio Activision PopCap Games C2Call GmbH The PlayForge TomTom Int’l BV Electronic Arts PopCap Games Lima Sky

Our Geographies

Asia
Tokyo, Japan
Local Office

Seoul, S. Korea
Local Office

Shanghai, China
Game Studio, Asia Pacific HQ

North America
Vancouver, Canada
SpinTop Games

Europe
Dublin, Ireland
Mobile Game Studio,  Localization, EMEA HQ

Seattle, WA
Worldwide Headquarters

London, England
Local Office

San Carlos, CA
Game Studio

PopCap Confidential

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Company Overview

Geographic expansion
Trending to 50% Overseas
Americas 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Europe Asia Pacific

2006 94% Americas 5% Europe 1% Asia Pacific

2010 76% Americas 16% EMEA 8% Asia Pacific

2005

2006

2007

2008

2009

2010

Growth Drivers
Next 3 years
 Mobile

• Transition from legacy (feature phone) to  smart phones  Social • Rapid growth of Facebook, other SNS  Asia • Payoff from long‐term R&D investments

PopCap Confidential

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Company Overview

PopCap’s Mobile History
Basic Phones
$ in Millions

Apple Mobile

Other Smartphone

 $40  $35  $30  $25  $20  $15  $10  $5  $‐ 2007 2008 2009 2010

Social
Great Games Matter
PopCap’s Monthly Social Revenue Growth Since August, 2010 

>100% to >$2.5 Million 2.5 Billion+ > 75%

Bejeweled Blitz Games Played Per Month Share of PopCap Currency Orders that are Re‐orders  Average 1‐year DAU Change for Leading Games vs. Bejeweled Blitz

-36% vs. +32%

PopCap Confidential

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Company Overview

PopCap and Facebook
Engagement Rates (DAU/MAU, >1M DAUs)
MAU Rankings
1 2 3 4 5 … 11 Bejeweled Blitz PopCap 11M
15.0% 40.0%

Cityville Farmville Texas Holdem Frontierville Café World

Zynga Zynga Zynga Zynga Zynga

94M 50M 37M 19M 15M

35.0%

34.3%

30.0% 25.0% 20.0%

28.5%

27.6% 24.7% 23.6% 22.8%

21.8% 21.6% 20.1% 19.8% 19.6% 18.4% 18.2% 17.4% 15.7% 14.3% 12.4%

DAU Rankings
1 2 3 4 5 … 10 Pet Society EA 1.7M Cityville Farmville Texas Holdem Frontierville Bejeweled Blitz Zynga Zynga Zynga Zynga PopCap 21.2M 14.4M 7.4M 5.1M 3.8M
0.0% 10.0% 5.0%

Source: AppData and DeveloperAnalytics as of 3/4/2011

PopCap Asia

PopCap Confidential

13

Company Overview

PopCap Asia Strategy
4-year history
 Games built in Asia, for Asia

• Not “insourcing”  Organic growth instead of acquisitions  Local decision making • What happens in Asia, stays in Asia  Best of breed local gamer operator partnerships

PopCap Confidential

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Company Overview

Plants vs. Zombies in China

Chinese New Year’s TV Show

TV SitCom Pilot

TV Dating Game

Skit at The9’s Annual Party

PopCap APAC
Major initiatives for CY11
China PC Online SNS Mobile Social Legacy Other Korea Japan SE Asia Australia / NZ

PopCap  World PVZ Social Zuma Blitz

PopCap  World PVZ Social

PopCap  World Zuma Blitz PopTower

Mobile Clothing

Mobile

Mobile

Retail

Retail Portals

PopCap Confidential

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Company Overview

PopCap Confidential

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Company Overview

Native App

Web

PopCap Confidential

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Company Overview

Questions?

PopCap Confidential

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