The document summarizes major trends in the social gaming market and 6waves' role as a social gaming publisher. Key points include: (1) the social gaming market is still growing rapidly driven by better monetization, established brands entering the space, and increased competition from startups; (2) 6waves has had success publishing numerous hits that have reached millions of users globally; (3) 6waves' developer fund aims to support independent developers in the social gaming market.

1. G-Star 2011
Arthur Chow
Chief Operating Officer

2. Agenda
 6waves Background
 The Social Gaming Market
 Major Trends in Social Gaming

4. 6waves Major Milestones

5. Largest independent publisher on Facebook
28%
35%
23%
1%
10%
3%

7. Revenue Trend of Video Games
Digi-Capital projection, June 2011

8. More Interesting Data
Games As A Games As A
Service Product
Over 5 years till
+16% - 1%
2015
Virtual Goods
Sales Social Social Mobile
Games Games
+19% CAGR +30% CAGR +34% CAGR
$5.2 billion
$8.9 billion
$22.5 billion
In 2015
Source: Lazard Capital Markets Oct 2011

9. World Map of Social Networks

10. The Global Social Phenomenon
When online, the average American
spends more time on:
Source: SingleGrain

11. Growth of Users of Facebook
http://www.benphoster.com/facebook-user-growth-chart-2004-2010/

12. Growth of Users of Facebook
www.socialbakers.com

13. Good growth in users …
but what about games?
Source: Appdata

14. Good growth in users …
but what about games?
Source: Appdata

15. 6waves Lolapps still see growth
Source: Appdata

16. Ravenskye City growth

17. Yet is there Room for New Entrants?

18. Strong Growth for Newly Published Games

20. Major Trends
Better
Monetization
Major Trends
For
Social Games
Brands Matter Competition

21. Major Trends
Better
Monetization
Major Trends
For
Social Games
Brands Matter Competition

22. Better Monetization
 Facebook Credits
 Trust
 Frictionless payments
 Increasing coverage and support with regional payment providers
 Improvement in game quality
 Better game designs
 Better reasons to pay

23. Facebook Credit adoption
 Significant increase in Pay Rate
Switched to FBC as
in-game currencies
Pay Rate
Source: 6waves Internal

24. MAU vs. Paying Users
 MAU maintained at similar levels while paying users
increased
MAU (index)
Pay Users (index)
Source: 6waves Internal

25. Major Trends
Better
Monetization
Major Trends
For
Social Games
Brands Matter Competition

26. Brands Matter!
 Need to differentiate into a crowded gaming market
 Leverage existing fan base on Facebook
 Facilitate user’s conversion and virality and CPI
 Improves pay rate and monetization

27. Major Trends
Better
Monetization
Major Trends
For
Social Games
Brands Matter Competition

28. Global Competition
 Early social gaming
companies becoming
established
 Traditional gaming
companies entering
 Startups continue to
flush into the market

29. Self Publishing
Pros Cons
 Retain all profits (or loss!)  Prohibitive cost of marketing and
 Grow the game at own pace promotion
 Takes longer to ramp up
 Lack of viral channels
 Limited life cycle
 Dilutes developer focus and
resources

30. Work with Publishers
Pros Cons
 Achieve rapid boost for growth  Revenue share
 Relationship with platform  Resources to implement
 Benefits of scale suggestions
 Significant, optimized marketing
spend
 Each party focuses on strengths
 Value-added services

31. Partner - Publisher Model
 Publishers provide services that bring social games to scale, while allowing
developers to focus on building and maintaining great games
Additional
Marketing

32. Proven Success Stories
 6waves has published numerous hits to over millions of users all over the
world

34. Summary
Many
untested
More genres Users expect
branded better
games games
Still growing
Social Willing to
Games spend

35. Ready to Join the Party?
Initiative to support
Independent developers
www.6waves.com/fund