Jp Im Low 20090112 Final

information memorandum

© 2009 Jungle Peak Studios. All rights reserved. 2

Notice to prospective investors
This Memorandum (the “Memorandum”) has been and that the recipient will not directly or indirectly
prepared solely for information purposes and has been duplicate or disclose this information without the prior
prepared by Jungle Peak AB (“Jungle Peak” or the written consent of the Company. Recipients who do
“Company”), solely for use by prospective investors in not desire further information agree to return this
considering their interest in making an investment in material promptly to the Company.
Jungle Peak. The Company reserves the right to negotiate with one
The information contained herein has been prepared to or more prospective investors at any time and to enter
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of the information that a prospective investor may prospective investors.
desire. In all cases, interested parties should conduct The Company reserves the right to terminate, at
their own investigation and analysis of the Company any time, solicitation of indications of interest
and the data set forth in this Memorandum. The for an investment in the Company or the further
Company has not verified all of the information, participation in the investigation and investment
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Company makes no representation or warranty as to the right to modify, at any time, any procedures
the accuracy or completeness of this Memorandum relating to such process without assigning any reason
and shall have no liability for any other representations therefor. The Company intends to conduct business
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This Memorandum includes certain statements, of any property, which the Company deems necessary
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Content
Notice to prospective iNvestors 3
executive summary 5
Words from the ceo 6
compaNy descriptioN 9
BackgrouNd & history 9
visioN aNd goals 10
BusiNess model aNd products 11
key partNerships 16
orgaNisatioN 17
the market 18
film & tv series 19
oNliNe & moBile 23
merchaNdisiNg & puBlishiNg 26
competitive laNdscape 28
fiNaNcial forecasts 29
the JuNgle peak share 31
maNagemeNt 33
the Board 34
advisory Board 35
additioNal iNformatioN 36
articles of associatioN 37
key risks 38
fiNaNcials 39


environmental campaign, game design and playable
Executive Summary prototype of a collectible card game, a complete
feature film treatment and storyline for two sequels,
three complete episode scripts and 39 synopses for an
Business concept animated TV series, as well as a six complete full-color
The business idea of Jungle Peak is to offer top of episodes of a seven volume comic adaptation.
the line entertainment for children with a focus on
environmental issues. Colorful characters and engaging Next steps
stories are combined with a clear message: Working
together we can save the world. The primary target After an intense development phase Azaya is
group is children between 8 and 14 years. ready to be introduced to the world. In late 2008
the Azaya Community was made available online.
Jungle Peak introduces a broad spectrum of Azaya The community will be translated, updated and
products in three main areas: Film & TV Series, continuously developed in several different languages
Online & Mobile and Merchandising & Publishing. and markets during 2009 as a part of the marketing
The products are designed to create a demand for campaign and as a way to build up a loyal fan base.
each other through synergy effects. The Azaya concept During 2009 Jungle Peak will seek production and
rests on an animated feature film and an adventure distribution partners for the Azaya film, TV Series,
TV series. These form the basis of environmental Merchandise & Publishing. This will lead to presale
campaigns in collaboration with environmental revenue for sale of the licenses. In 2010 the Azaya
organizations which are highlighted in the Azaya card game and the Azaya comic book will be released.
Games Community (www.azaya.com) and with Mobile applications and games are released in the
Comics, Collectible Cards and other entertainment most developed markets. By Thanksgiving/Christmas
products. 2011 the animated feature film ‘Azaya Azatars
Awakening’ will be released. Some months later, in the
spring of 2012 the animated Azaya TV series will be
About Jungle Peak launched. The autumn of 2011 is the main commercial
It was during a trip to the slopes of Himalaya that launch of the property with all merchandise programs
Edward Antov got the idea to the magical world put into place.
of Azaya. Since then he has spent the last 10 years
developing his vision into an epic tale. The rights Jungle Peak co-operates with several different
to this Intellectual Property are owned by Jungle companies to produce, distribute and market the
Peak. The company was started 2003 and now has Azaya products. Jungle Peak already have agreements
15 employees. The team has comic artists, graphic with several strong partner companies, including
designers, web designers and script writers of highest Rough Draft Studios (animated series) and Big
international standard. Jungle Peak has several Tent Entertainment (US Merchandise partner) and
partnerships and co-operations with companies all are actively pursuing co-operation deals with others
around the world. After several years of hard work including Random House (global publishing rights).
Jungle Peak is ready to take the next big step towards
the market – the production of an animated film trailer
together with Rough Draft Studios, Los Angeles, with
an aim to produce a feature film trilogy and TV Series.

What has been accomplished so far?
Intense passion and effort has gone into developing
the storyline as well as building the team to realize it.
An extensive network of skilled subcontractors, notable
among which are long-time Disney licensee ComicUp
Studio and renowned flash studio Muskedunder
Interactive, has resulted in demo cases and production
frameworks to realize big scale production of comics,
casual games and more.

The preproduction material encompasses a wide array
of well thought-out characters, fascinating places,
dazzling concept art and intense scenarios. Products
already realized include an online community offering
9 minigames of four unique varieties and a prototype


Words from the CEO Saving the world is one of the most classical endeavors
of an epic storyline. On Azaya Online you can make a
heroic deed, taking place both in the fantasy world and
in the real world at the same time. Users/viewers can
play an Azaya game; watch an Azaya film, engrossing
themselves in the ever-evolving Azaya environmental
campaign.

As we’ve already experienced in the market, children
are becoming more selective when it comes to product
purchases. Where the awareness of our environmental
situation plays a crucial part in that choice, we
anticipate consumers being even more discerning as
they want to make sure they are supporting product
lines that carry the right message.

Azaya is well positioned to capitalize on this
increasing trend of consumer selectivity, because of
Jungle Peak is a Film and TV-series driven its high quality offering. Azaya is also one of the few
entertainment company with a strong environmental entertainment alternatives that will grow and evolve
profile. It has well established partnerships in the with its user over time, as storylines are developed and
entertainment industry, such as Rough Draft Studios symb otic relationship between TV and online grows.
(producers of The Simpsons TV series, The Simpsons In the online world, Azaya will let users act out your
the movie, Star Wars: Clone Wars, Futurama etc.). dream, experiencing the thrill of becoming a real hero.
Jungle Peak’s goal is to develop an entertainment
universe on a global scale, aimed for release on a wide After the first year of Jungle Peak we learned that
range of platforms. It’s primary target audience is Azaya means haven or paradise in Sanskrit - and this
children between the ages of 8-14. is exactly what we want it to be, an entertainment
haven that fosters viewers/users to make that crucial
During the last couple of years Jungle Peak has difference, transforming the world into what it ought
undergone a fantastic evolution, developing and to be, a paradise.
positioning its entertainment property, Azaya, for
release to a worldwide audience.
We believe that Jungle Peak’s quality content is
unparalleled in this market. Not many companies
in the world have such a strong and high quality
entertainment offer as the Azaya concept nor have
they the unique universal message of environmental
awareness. Edward Antov,
Founding CEO of Jungle Peak Studios AB
This is why we consider Jungle Peak as one of the few
players within the entertainment industry that can
offer something that the young generation of today
actually wants – something that´s more than just
hack´n´slash. We believe that the Azaya story will give
what children’s entertainment market demands – a real
saga, the story and a positive message that can bring
about change


Azaya is a haven, a secret continent where the animal heroes, the Azatars, live in harmony with Nature.

The Azatars are divided into five magic groups. Kiya and Enu embark on a rescue mission to Borneo.
Pictured are the Acroban, agile scouts and defenders They save the Orangutangs from deforestation
of Azaya. commited by the evil forces of Archodius.


Company description is able to drive brand awareness and customer loyalty
through its online virtual world; www.azaya.com.
Introduction The three corner stone product lines linked to each
channel / distribution model are i) Animated Content
Jungle Peak is a cross-media entertainment company (Film & TV series), ii) a Virtual World (Online &
that has developed and produced its own children’s Mobile) and iii) Merchandising & Publishing (Retail).
entertainment property, ‘Azaya’ in a multitude of media
formats. Azaya is a fairy tale based entertainment By leveraging both established and emerging media
universe with an environmentaly friendly profile and technology channels, the company is able to
primarily targeting children between 8 and 14 years, establish deep and broad reach within its target
both boys and girls At the core of the roll-out strategy demographics.
lies the feature animated film; Azaya – Azatars
Awakening and the animated TV series; Azaya – Through Azaya, Jungle Peak combines original
Enter the Azatars. characters and engaging stories with a clear message:
engaging Azaya users and viewers to interact as
At the core of the roll-out strategy lies a feature a community and make a positive change for the
film: Azaya – Azatars Awakening and an animated environment.
TV series: Azaya – Enter the Azatars. As the first
European company ever, Jungle Peak has negotiated Jungle Peak is a content developer that arrives in
a production contract with the leading Hollywood the market through key partnerships for publishing
production company, Rough Draft Studios. Rough and marketing. The global distribution of the Azaya
Draft is one of the most well respected animation property to TV channels, publishing houses and
studios and has worked on well-known feature films licensing companies is coordinated by Jungle Peak.
and TV series such as The Simpsons, Star Wars Clone
Wars and Futurama. As a first step Rough Draft will
produce a trailer of Azaya which will be used to secure
film funding and airing agreements with terrestrial and Background & history
satellite channels globally for the TV series. The TV The company was founded in 2003 by CEO Edward
series and feature film are produced with reusability in Antov and now has a staff count of 15 persons.
mind, significantly lowering pre-production costs. Edward originated the idea of a eco-friendly
entertainment saga ten years ago because of the lack of
The feature film will be produced in cooperation with a story driven virtual worlds online. From the beginning,
major film distributor (such as Warner Bros., MGM or the primary focus has been to create a high quality
Universal) and film funders (such as RGM Holdings). story based property that taps into both fantasy and
Well renowned animation producer Rough Draft the environmental concerns of today. Azaya combines
Studios are contracted for a first of three planned these influences to create a truly unique entertainment
feature film installments, due to open in theaters by experience.
Christmas 2011. Pre production is well under way,
with a lot of character and set design in place, as well Through 2004 and 2005, Jungle Peak managed to
as an illustrated script treatment. Full screenplay and improve its content production abilities by hiring
episode scripts for the first season of the TV series Fredrik Andersson and Mikael Spjelkavik, which are
will be finalized during 2009. Script development and well-known 2-D and 3-D graphic artists respectively.
production design are being developed in close co- In 2006 the company was strengthened by recruiting
operation with Rough Draft Studios. Martin Jordö as CMO and Daniel Strömer as CTO,
overseeing the expansion of the company to a modern
Jungle Peak offering production studio.

film & tv series In 2007 Jungle Peak formed production partnerships
with Comic-Up (Barcelona) or the production of
online & mobile Azaya comics and with Muskedunder (Göteborg)
for production of online games. During 2008 the
merchandise & publishing production have been active in the pre-production and
planning of the film and the animated TV series.

Source: Company information The Azaya concept is pitched for prospective partners
firms in the US. In Januari 2009, Jungle Peak finalised
Jungle Peak is currently in discussions with specialized a production agreement with Rough Draft Studios for
cartoon channels Cartoon Network (Warner), Jetix the Azaya Animated feature films and trailer. Jungle
and Disney XD (Disney). Following the TV-launch, Peak also signs on with the US-based licensing agency
Jungle Peak will be able to capitalize on its Azaya Big Tent for merchandise development in the North
content through merchandise and publishing products. and South American markets.
Given the story-driven nature of the Azaya content, it


Vision and goals

The Jungle Peak vision is “To release high-quality
entertainment products that contribute to a better
understanding of environmental issues in the world”.

This will be done in terms of spreading socially Jungle peak rollout plan
entertaining and intellectually stimulating content Source: Company information

to children all over the world. By engaging content
the children will learn about endangered species, 2009
Q1
environmental issues while having fun.

The long-term goal is to make Azaya a hugely popular Q2
children’s entertainment property with longevity movie trailer
comparable to Harry Potter or Lord of the Rings. Q3
full release: azaya.com
Q4

2010
Our operational goals are: Q1 collectible card game release
ʛ Q3 2009 - to finalize a commercial animated
3-min trailer of the TV series/film Q2

ʛ Q4 2009 – to secure finanzing for a feature film Q3
and animated TV series
Q4 comic pocket release
ʛ Q3 2010 – to close airing agreements with major
TV networks in the US, Europe and Asia 2011
Q1
ʛ Q1 2011 – to have launched physical products
and a merchandise program in retail in up to 17 Q2
markets

ʛ Q4 2011 – to have produced and premiered an Q3
Azaya animated feature film
Q4 film premiere
2012
Q1

Q2 tv series start to air

Q3

Q4


Business model and products
Jungle have launched the Azaya online community in
Business model Q1 2009, with the animated feature film premiering
in 2011. The animated film and TV-series will be the
Jungle Peak´s business model is to offer top of the main catalyst for bringing other Jungle Peak products
line entertainment for children with a focus on to market, as the animated series will help catapult the
environmental issues. Colorful characters and engaging Azaya brand through the viewers.
stories are combined with a clear message: Working
together we can save the world. The primary target
group is children between 8 and 14 years. Environmental campaigns
All content is driven by specific “campaigns” that carry
Jungle Peak introduces a broad spectrum of Azaya an environmentally friendly story based on endangered
products in three main areas: Film & TV Series, animals from around the world.
Online & Mobile and Merchandising & Publishing.
The products are designed to create a demand for each Each year, several campaigns will run that feature
other through synergy effects. The Azaya concept rests new animals and their habitats framed in interactive
on animated feature films and an animated adventure missions and stories. An example mission would be:
TV series. These forms the basis of a environmental ‘Rescue the Orangutans from illegal hunters in the
campaigns in collaboration with enviromental Borneo rain forest’.
organisations which are highlighted in the Azaya
Games Community and with Comics, Collectible
Cards and other entertainment products.

In addition to ticket and DVD sales related to the
feature film, Jungle Peak will also generate revenues
from content licensing (from animated TV series and
feature film), product merchandising (game cards,
toys, figurines, etc.), comic book sales, online micro-
payments and other revenues sources.

Film
&
TV Series

Azaya
Content
&
M

Storylines
& e
erc

lin
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Pu

ile
On
an
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bli

ob
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sh

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Example Campaigns TV Series screenshots

Source: Company information Source: Company Information

The campaigns will run across all the Azaya channels Jungle Peak plans to launch a TV-series in early 2012
and will include comics, collectible cards, TV-series with trailer material available from of the third quarter
material, online games, etc. The campaigns also move of 2009. The TV-series is comprised of 13 episodes per
a theoretical time line forward as children anticipate season. Each weekly episode contains 22 minutes of
the next release, and as the virtual world expands with animated material based on a mission-based storyline
every new mission. around endangered animal species or environmental
issues. The TV-series is sold to TV networks and
channels in each territory and Jungle Peak gains
Film & TV Series
income from these format sales as well as sales of
Core to the Jungle Peak offering is the animated DVD rights and other associated rights.
content which will be produced by Hollywood
animation company Rough Draft Studios. Animation A typical adventure in an episode of the TV-series
both for feature films and TV Series will be made in focuses around a specific environmental issue which
parallel and will be reused in order to capitalize on the ‘the protagonists’ tries to resolve by stopping ‘the
Azaya content in the most efficient way. villains’ from causing further harm to the environment.

In the end of 2011, Jungle Peak plans to release a film Through the Film and TV-series, Jungle Peak expects
that will showcase the Azaya concept and allow it to to create widespread awareness of the Azaya brand and
gain income both from film ticket sales, DVDs and grow its online community by encouraging viewers to
merchandise worldwide. The film will not only drive follow campaigns online as well as encouraging sales of
sales of all Azaya products, but also has the capacity to merchandise and publishing products.
produce significant income to Jungle Peak by itself. The
film is to be distributed by a major Hollywood studio
for global release country-by-country.

The 110-minute animated feature film, ‘Azaya Azatars
Awakening’ is the first in a trilogy, with a new film
released to the Thanksgiving/Christmas period in 2012
and 2013 respectively. The storyline in the films is an
epic saga that tells the story of Azaya and how it is
rediscovered by the animal heroes.


Online & Mobile The site also features content from the comic series,
downloadable animated video clips, as well as online
The Azaya Virtual World is an engaging online games. The world and the content are tied together
destination for the younger demographic to experience around the various ‘missions’ as discussed previously.
and explore Azaya in an online community. Given the
unique story-driven nature of the online virtual world Campaigns center around an environmental theme
users are able to continue the TV Series storylines and which typically encompasses a biotope, one or more
follow environmental campaigns online. endangerd animals and one or more threats. These
are featured in the comics and minigames, along with
The online world invites users to create their own background “fact files” and virtual collectible items
online characters / avatars – called ‘Azatars’ – and to such as cards. To collect all cards tied to a specific
create their own habitats, all of which they can explore campaign, the user needs to play all games and take
and share with other users. Users can also play story- quizzes on some of the facts. The cards are designed
based flash games and read online comic books. As the to be a valuable in-game commodity, to be traded and
user experiences the world of Azaya, personalization used to boost your Azatar in certain game settings.
features allow continuous evolvement of the personal Furthermore, users get to follow a real live “campaign
profile and the Azatar. animal” which is adopted by Jungle Peak through one
of our environmental partners.
The Azaya community was opened for public beta
testing on December 2008 and is planned to be Azaya online world
released in September 2009. During 2009 the
community is totally free of charge, and in 2010
payment options for premium content will be added.

The main source of online revenue in the medium
term will come from the community making micro-
payments. Users will be spending money on Jungle
Peak to buy more clothes for their avatars, buy
furniture, acquire a pet and educate them, purchase
digital cards, etc. Players will be given various payment
options, such as using premium text messaging on
their mobile phone or will be able to use a certain
weekly or monthly allowance provided to them by
their parents.

In addition, further online revenue will come from
premium membership subscription. Premium
membership can be very useful to increase the
stickiness of a platform, and Jungle Peak considers
offering premium subscriptions where users who
upgrade their accounts will obtain access to additional
features such as enhanced group invitation, additional
Source: Company information
features for their profile site, or access to privileged
content (e.g. pre-releases of new virtual items). Building your own Azatar

Users interact online through a number of community
and communication features including a chat function,
trading virtual items to each other and competing and
cooperating in various games.

The key purpose of the Azaya Internet experience is
to build up a loyal user base that wants to experience
Azaya online, but also to cross-promote the other
channels (Film & TV and Merchandise & Publishing)
that drive further monetization through license fees,
merchandise, print products, etc.
Sale of virtual goods and online advertising are other
sources of revenue for this channel.



Case study: Fact/Fiction
All the characthers in Azaya are based on real-
life endangered animals. Pictured is the Yachu,
a Snow Leopard from the Himalayas. Through
campaigns that focus on specific habitats and
animals, children will learn more about the
threats to animals like the Snow Leopard and
what the children can do themselves to help save
them from extinction.

Online game: Mission Borneo


Online game: Zary Caves



Merchandising & Publishing Azaya community. The customers will get added value
to their purchase of cards by getting bonus features
Within the merchandising and publishing in the online virtual world. The collectible cards
segment Jungle Peaks strategy is to leverage the allow users to get certain upgrades to their Azatars
synergies between online and TV into a profitable depending on the current campaign and promotions.
merchandising property. Jungle Peak plans to derive The cards, which are printed on environmental-
income from sales in collectible cards, toys, clothing, friendly material in full colour, are planned to be
etc. Jungle Peak has formed partnerships with leading released in “Adventure decks” of about 40-50 cards as
merchandisers and retailers to promote a range of well as “Booster packs” of about 10 cards.
Azaya items including comic books, collectible cards
and toys. The collectible card game is driven both by the
collectability of the many characters of Azaya as well as
Jungle Peak is developing a comic book trilogy series by a novel adventure-style gameplay that lets children
called ‘Azaya Azatars Awakening. play together rather than against each other.
The trilogy consists of i) the Azatars Awakening (4-5 In its first year of operation, year Jungle Peak plans
albums), ii) the Return of the Spirits (4-5 albums), and to release about 150 cards in a Base Set, with an
iii) the Legend of Life (4-5 albums). additional 50 cards being released for each campaign.
Jungle Peak is currently in discussions with publisher
Random House on comics and chapter books based
on the Azaya property. Being one of the world’s
largest book publishers, they have vast experience is
distribution, marketing and publishing.

The planned release of the first book is for fall 2010
in conjunction with the Card game release in each
market. Jungle Peak package the trilogy into four to
five ‘Comic Albums’ per annum as hardcover comics
with an average length of about 180 pages.

In the start of 2010 Jungle Peak will in cooperation
with a publisher launch its collectible card game that
offers both physical cards to play and trade with, as
well as access to an online version of the game at the

Merchandise products
Source: Company Information
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Key partnerships Big Tent Entertainment
On the back of the strength of its proprietary content Jungle Peak entered into an agreement with Big Tent
and unique positioning, Jungle Peak has been able to in September 2008, where Big Tent will represent
form a number of key strategic partnerships to help Jungle Peaks licenses on physical goods in the North
leverage the production, distribution and marketing of and South American marketplaces. This includes brand
the Azaya products. management in these territories as well as overseeing
master toy licenses for worldwide distribution.
Big Tent is a New York based licensing agency that
Rough Draft Studios Inc.
also have offices in Buenos Aires, Argentina and
Rough Draft Studios, Inc. (RDS) entered into a Dallas, Texas. For the second year running they have
partnership agreement with Jungle Peak in December been awarded ‘Best Licensing Agency of the Year’ by
2008. The two companies will collaborate in animating the readers of trade magazine Kid Screen Magazine.
Jungle Peak’s animated feature film and TV series. Big Tent staff is headed by leading licensing industry
This partnership is a far-reaching joint venture veterans, including Richard Collins and Rich
reaching over several years. Rough Draft lowers Maryyanek.
production cost for the animated material and receives
a part of the income from merchandise of the Azaya
property.
Partnership with environmental organisations
Rough Draft is one of the most well respected For all Azaya environmental campaigns Jungle Peak
animation studios and has worked on a number of has exclusive partnerships with environmental non-
well-known feature films and TV series. governmental organisations with expertise on the
chosen campaign animal. For example in our first
campaign about orangutans we have a partnership with
Selected Rough Draft films and TV series Borneo Orangutan Survival Sweden (BOS). For our
Animated Films Box Office next campaigns we are in dialogue with WWF (World
Revenues (M$) Wide Fund for Nature).
Jungle Peak partnership agreement with BOS was
The Simpsons Movie (2007) 526
signed in 2008. The agreement is a far-reaching co-
Finding Nemo (2003) 94 branding agreement that lets Jungle Peak use material
from BOS in Azaya campaigns where children learn
The SpongeBob SquarePants Movie (2007) 140 about the plights of the Orangutans. The agreement
is without financial obligations, although Jungle Peak
Beavis and Butt-Head Do America 80
plans to help raise funds for BOS and encourage
children to adopt Orangutans with BOS. BOS will
also provide marketing for Azaya on their web-pages.
Selected TV Series Studio Borneo Orangutan Survival (BOS) consists of a group
of some 350 permanent experts and staff, presently
Futurama 20th Century Fox
running the worlds’ largest primate conservation
Drawn Together Comedy Central project in cooperation with the Indonesian Ministry of
Forestry.
Baby Blues Warner Brothers

Star Wars: Clone Wars I & II Cartoon Network
Current discussions
Jungle Peak is currently involved in discussions
Source: Company information concerning a global publishing deal for all types of
publishing format (chapterbooks, comic books, comics,
RDS is headquarters in Glendale, California, United foliants, pockets etc.) with the world largest publisher
States. Random House, with the Azaya property. No contract
has been signed yet by any party. Jungle Peak is also
involved in a business dialogue with Nokia Gaming
pertaining gloabl release of Azaya games, comics and
Azatars (Avatars) on mobile platforms and on Nokia
online. No contract has been signed yet by any party.


Characters from Azaya

Organisation
Jungle Peak employs 15 staff in its Göteborg, Sweden
head offices. 12 of these are employees, while 3 work
on consultancy agreements. Jungle Peak also takes on
time-limited junior interns from educations. Added
are 5 part-time external advisors and consultants, and
partnership firms such as Muskedunder (5 employees)
and Comic-Up (7 employees). Jungle Peak staff
breakdown is 6 management team members, 1 game
developers, 5 2D graphics comic producers, 1 3D
graphics content producers and 3 Script and design
producers.

The management team consist of:
Edward Antov (CEO), Martin Jordö (VP & CMO),
Eva Carlberg (CFO), Daniel Strömer (COO), Anna
Martinez (CIO) and Johan Brandstedt (CPO).

The 2D Community and Development production
team is headed by Johan Brandstedt. The Creative &
Film production team and the Business Development
team is supervised by Edward Antov and currently
staffs 4 persons.

The board of directors consists of 6 members: Jani
Karlsson (Chairman), Edward Antov, Martin Wirén,
Ulf Ryberg, Tom Berggren and Nicholas Löfberg.

The Jungle Peak Advisory Board is made up of
industry veterans with an extensive global network in
the entertainment industry. The advisory board consits
of David Freeman, Kyle Balda, Cyril Fung, Netanel
Jacobsson and Olle Langenius.

Organisation chart

Board of directors

advisory Board

ceo
Edward Antov

evp & cmo cfo coo cio cpo
Martin Jordö Eva Carlberg Larsson Daniel Strömer Anna Martinez Johan Brandstedt

community & development creative & film production Business development



The Market entertainment companies dominating the licensing
activity. The entertainment sector accounted for 46% of
Overview estimated revenues.
Jungle Peak, through its operating brand ‘Azaya’, The customer segments for the character and
operates at the intersection of a number of converging entertainment properties vary depending upon the
markets including: property, but kids — from pre-school to teens — are
a major target for all players. The secular substitution
ʛ Original and Animated Content (Film / between traditional toys and electronic toys and
Animated TV Series) videogames, which are major segments for these
ʛ Merchandising and Publishing licensors, creates challenges (new channels, partners)
ʛ Virtual Worlds and Online Social Networks but also opportunities to further segment the
properties for these licensors. Jungle Peak believe that
The market for original content production is one of these new channels is virtual worlds. Virtual
becoming increasingly valuable as major publishers Worlds and Online Social Networks have recently
seek to leverage unique brands in converging started to grow explosively, in particular brands with
traditional and online media. One example of this is a strong focus on a young audience. Within the space,
Pokémon which has become a multi-billion dollar the cross platform gaming sector remains in its infancy,
franchise – generating $5bn of revenues in 1999 and but expected to experience hyper growth in years to
growing to $15bn in 2007, corresponding with a come. Generally, business models in Virtual Worlds
CAGR of 17%. and Online Social Networks segments rely on the
The offline markets of Merchandising and Content following revenue streams to monetize the user base:
Publishing also represent significant revenue
opportunities for successful converged (offline/ ʛ Micro-payments
online) brands like Azaya. According to the Licensing ʛ Advertising
Industry Merchandisers’ Association (L.I.M.A.), the ʛ Subscriptions
estimated licensing income in the US for 2007 was ʛ Content licensing
$6bn. As in previous years, the five largest sectors were ʛ Merchandising (physical goods)
entertainment and character, corporate trademarks,
sports, fashion and collegiate. Together, they Successful virtual worlds create an environment which
represented 93.4% of the overall licensing revenues in lends itself to multiple revenue streams. Depending
2007. Azaya with its strong proprietary content and on a brand’s positioning and target demographics,
casual gaming partnerships will be well positioned to the different streams have enjoyed varying degrees of
capitalize on these market opportunities. success.

Entertainment/TV/Movie is largest subsector Within the Virtual World sector, promising business
models in the teen segment (e.g. Habbo Hotel) rely
The character and entertainment sector is the largest predominantly on micro-payments from users buying
($2.7bn) and most concentrated of all licensed virtual items. We believe that the Azaya experience will
properties, with a few large players representing lend itself particularly well to micro-payments as users
the consumer products divisions of the major advance through quests and seek to personalize their
presence.


Artwork: Kiya sketches Film & TV Series
For each characther in the Azaya universe
there are complete character books with The animated Film and TVseries will be the main catalyst for bringing
concept art and animation guidelines. other Jungle Peak products to market as the launch of the first film
initiates the broader launch of Azaya.
The Film and TV-series will drive awareness and help catapult the
Azaya brand to the viewers.

The market size of the global animation industry (from the demand
perspective) was estimated at $55bn in 2005. The industry is expected
to witness a CAGR of eight percent and is estimated to be $75bn in
2009.
Animated movies have become a large industry with the ten animated
films released in 2007 grossing worldwide box office revenues of
$3.6bn as strong content draws large crowds to movie theatres.

Gross worldwide box office revenues for 2007 releases
Alvin and the Chipm unks

Golden Com pass

Surf's Up

Meet the Robinsons

TMNT

The Sim psons Movie

Shrek the Third

Rataouille

Beow ulf

Bee Movie

0 100 200 300 400 500 600 700 800 900

Gross Worldw ide Box Office Revenues ($m )

Source: Wikipedia, wwww.boxofficeguru.com

The success of “The Simpsons Movie” and “Shrek the Third” are
particular examples of animated content being able to capitalize on the
success on their franchise. “The Simpsons Movie” was preceded by 19
seasons (series premiered in 1989) of TV series and the film was able
to capitalize on its loyal fan base to generate a gross box office revenues
of $526m.

“Shrek the Third” was not preceded by a TV series but by two
successful films – Shrek and Shrek 2 – which allowed it to ferment
a large audience. The first Shrek movie was released in 2001, had a
budget of $60m and grossed $484m. Shrek 2 was released in 2004, had
a budget of $75m and grossed $920m.

TV shows lead the way to online streaming video
The use of online streaming video is up across all age segments, but it
is the youth segment that drives this industry. A typical US child now
views around 100 pieces of streaming video content online per month.
The trend is that the market leaders in offline entertainment, such as
Disney, are the ones generating the most interest for online viewing.

While teenagers spend more time on social networking sites and ‘open
content’ sites such as YouTube and Facebook, the younger children
have their consumption pattern mirror that of the TV shows they
watch and/or the toys the play with. For animated content on Film/
TV this makes a strong case for expanding the content to online
market. TV is the main marketing channel for successful kids websites.


The potential for high box office returns but also the need for extensive advertising for
animated films is demonstrated by these numbers:

Gross Office figures. Referenced from http://www.the-numbers.com

Movie Production Print Advertising US Gross Box Foreign Box
Budget (M$) Cost (M$) Office (M$) Office (M$)

Star Wars: Clone Wars (2008) 8,5 n/a 35 30

Space Chimp (2008) 37 n/a 30 34

Wall-E (2008) 180 n/a 217 163

Rataouille (2007) 150 n/a 206 413

The Simpsons Movie (2007) 72 n/a 183 343

Ice Age 2: The Meltdown (2006) 75 42 195 452

Over the Hedge (2006) 40 n/a 155 180

Cars (2006) 52 44 244 217

Madagascar (2005) 75 n/a 193 334

Pooh’s Heffalump Movie (2005) 20 n/a 18 35

The Polar Express (2004) 170 58 172 123

Shark’s Tale (2004) 75 55 161 202

The Incredibles (2004) 92 54 261 374

Shrek 2 (2004) 70 48 436 479

Finding Nemo (2003) 94 40 339 526

The triplets of Belleville (2003) 8 n/a 7 8

Ice Age (2002) 65 30 176 206

Spirited Away (2002) 21 n/a 10 275

Lilo& Stitch (2002) 80 40 145 100

Shrek (2001) 50 30 267 211

Monsters Inc (2001) 115 50 255 273

Toy Story 2 (1999) 90 35 245 239

Tarzan (1999) 145 30 170 277

A Bug’s Life (1998) 45 25 162 195

Antz (1998) 60 n/a 90 61

Toy Story (1995) 30 35 191 170

The Lion King (1994) 79 12 328 455

Aladdin (1992) 28 10 217 286

Beauty and The Beast (1991) 20 n/a 171 232

Who Framed Roger Rabbit? (1988) 70 n/a 154 197


Online & Mobile US Child and Teen Users who Visit Virtual Worlds

The crosspollination between the different segments: 2011
20.0
Film/TV-series, Online/Games and Merchandise will 17.7
(53%)
2010
enhance the revenue opportunities for a converged 15.1
(48%)
2009
brand like Azaya. The Azaya virtual world and the 12.0
(42%)
2008
Azaya digital games sector is one of the cornerstones 8.2
(34%)

in the Azaya business model. 2007
(24%)
5.3
2006
(16%)

Virtual world market explodes 0 5 10
Millions (% of total teens)
15 20

Virtual worlds can be defined as computer-based Source: eMarketer
simulated environments intended for its users
to inhabit and interact via avatars in order to Communication with friends drives the
communicate with each other or engage in multi-
player games. This habitation is usually represented in young
the form of 3D graphical representations of humanoids Child and teen Internet users are today primarily drive
or other graphical or text-based avatars. online to communicate with existing and new friends
The best known virtual worlds are LindenLab’s through social community and communication tools.
Second Life (focused on adults), Sulake’s Habbo Hotel With more than 58% of users visiting their social
(focused on teenagers and young adults) and Disney’s network profile at least once a day, the stickiness of
Club Penguin (focused on young kids between 6-14) . such sites is enormous.

Screenshots from Second Life and Habbo Hotel Frequency of Social Networking Web Site Usage - US Teens

Less often 11%

Every few weeks 9%

1-2 days a week 15%

3-5 days a week 17%

Once a day 26%

Several times a day 22%
Source: Second Life, Habbo Hotel
0% 5% 10% 15% 20% 25% 30%
Millions (% of total teens)
Virtual worlds allow users to create and customize Source: eMarketer
their avatars, to chat and interact with others users,
engage in various entertaining activities and buy virtual Online social networking has risen to become a top
items and gadgets to dress or enhance their avatars. five communication technology used by teenagers in
Virtual worlds also often offer users the possibility to the US, now having surpassed text messaging.
own their own virtual home and to buy or trade virtual
goods in a simulated - or real - economic environment. Attractive usage profile and stickiness
Virtual worlds not only attract a significant number
The power of the younger demographic of users but also create a high degree of visitor loyalty,
In 2007, an estimated 24% of all US child and teen commonly referred to as “site stickiness”.
Internet users were visitors of virtual worlds; this is A recent DataMart Google Analytics analysis found
expected to increase to 53% by 2011. that Neopets visitors spend an average of 2 hours and
With the overall industry witnessing unrivalled 27 minutes on the site. For Habbo Hotel and Second
growth, the share of this younger web literate Life, average session numbers per active user varies
demographic is generating opportunities for from 30-45 minutes per day for casual users to over
imaginative, character-driven environments to rapidly two hours per day for heavy users .
build up significant user bases.
Multiple revenue opportunities
Virtual goods and currencies have become the
predominant driving economic force for a number
of virtual world companies. According to Forrester
Research, people are currently spending over $1.5
billion on virtual items per year. Pets, coins, avatars,
furniture, land and houses, cars and other vehicles,
gifts and gadgets are among the most purchased goods
online.


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