Delivered at Casual Connect Tel Aviv 2016. Elad Kushnir, SVP Business Development at Playtika, provides an update on the social casino industry for Q2/Q3 in 2016 – along with key insights.

2. State of the Social Casino
Industry Q2/Q3 2016
Elad Kushnir SVP Business
Development, Playtika
eladk@playtika.com
Nov 1 2016

3. Social Casino global market leader
PLAYTIKA OVERVIEW
Founded
in
2010
6
Games
13
Platforms
1350
Employees

4. 14 Global offices; Head Quartered in Herzeliya, Israel
PLAYTIKA OVERVIEW

5. PLAYTIKAS EVOLUTION
2016
Acquired by Giant Interactive

6. PLAYTIKA IN NUMBERS
$725M
Revenues
in 2015
12
Platforms
20M
MAU
60%
Rev from
Mobile
6M
DAU

7. Market Overview
7
SOCIAL CASINO
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015

8. 8
= Social Casino
Free 2 Play
Business Model
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015
SOCIAL CASINO IN CONTEXT

9. SOCIAL CASINO MARKET SIZE
0.98
1.20 1.26 1.21
1.09
0.90
0.72
0.35
0.83
1.52
2.10
2.63
3.08
3.45
1.33 BN$
2.03 BN$
2.78 BN$
3.31…
3.72 BN$
3.98 BN$
4.17 BN$
2012 2013 2014 2015 2016E 2017E 2018E
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
FB Mobile Gross Revenues
Source: Eilers Research

10. INDUSTRY OVERVIEW: MARKET LEADERSHIP Q3 2016
+ hundreds more
Playtika 25.1%
Scientific Games 8.4%
Zynga 8.4%
IGT 6.7%
Aristocrat 6.3%
Tier 1 54.9%
Tier 2
28.1 %
Tier 3
17%
Source: Eilers Research

11. SOCIAL CASINO GENRES SHARE OF TOTAL MARKET
11
79%
13%
7%
1%
Slots Poker Bingo Other
Game Category Leading Product Leading Company
Slots Slotomania
Poker Zynga Poker
Bingo Bingo Blitz
Other NA NA

12. Source: Eilers Research
TOP 10 GAMES BY $ IS SOCIAL CASINO Q3 2016
# Game Publisher Q3 $
1 Slotomania $105M
2 Double Down $63M
3 Heart of Vegas $55M
4 House of Fun $45M
5 Big Fish Casino $43M
6 Jackpot Party Casino $40M
7 Caesars Casino $33M
8 DoubleU Casino $31M
9 Texas Holdem Poker $28M
10 Bingo Blitz $26M

13. 13
TRENDS AND REALITIES
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015

14. MARKET PLAYERS
Casino Suppliers Games Companies Casino Operators
Proven Content Platform Experience Brand and Cross Promo

15. 3 market entry strategies have emerged.
SLOT SUPPLIERS ARE “ALL IN”
15
M&A Strategic Partnerships Licensing

16. Growth from Niche Products
16
TotalPotentialUserBase
Total Potential Revenue
• Male Oriented
• Classic Content
• Truly Social Slots
• Regional Content
Niche Markets
Mass Markets

17. Focusing on growth within the game
Shift in Focus for Mature games
17
Loyalty Programs
Meta Game
Features
Monetization
Optimization
Slots Content
Game Economy
Optimization
Out of the Box
Marketing Tactics
FTD Conversion
Optimization
Customer Support
One of the biggest upsides is in existing user base. Only a fraction of users have ever paid.

18. CPI / ROI / WTF?
18
Many More
Clear Competitive Advantage / Data and Scale Lacking performance sustainability at scale

19. 19
MERGERS AND ACQUISITIONS
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015

20. M&A Update Q2 / Q3
20
Scene 53
$4.4B $120M$3-10M
(Estimated)

21. Source: Eilers Research
M&A TRANSACTIONS 2010-2016
Year Target Acquirer Price
Jun-10 $18M-$48M
May-11 ~$130M
Nov-12 $40M
Dec-12 $500M
Dec-12 ~$100M
Feb-14 $165M
Feb-14 ~$85M
Jun-14 $100M
Oct -14 $100M
Nov-14 $885M

22. Source: Eilers Research
M&A TRANSACTIONS 2010-2016
Year Target Acquirer Price
March-15 ~$5M
March-15 $10M
Jun-15 $7.5M
July-15 $18M
Aug-15 $39.2M
Aug-15 DGN Games $27.5M
Sep-15 $60M-$110M
Nov-15 $26M
Feb-16 ~$2M
July-16 $4.4 BN
Aug-16 Scene53 ~$3M-$10M
Aug-16 $170M

23. TOTAL M&A TRANSACTIONS IN SOCIAL CASINO TO DATE
23
~$7 BN

24. THANK YOU!
Elad Kushnir
SVP Business Development
E: eladk@playtika.com