corporate presentation 2014 - gameloft

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CORPORATE PRESENTATION 2014

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Page 1: CORPORATE PRESENTATION 2014 - Gameloft

CORPORATE PRESENTATION

2014

Page 2: CORPORATE PRESENTATION 2014 - Gameloft

ABOUT DIGITAL GAMING

Page 3: CORPORATE PRESENTATION 2014 - Gameloft

Digital gaming is everywhere

Smartphones, tablets, smart TVs, STBs, smart watches…

• Installed base of 2 billion smartphones and tablets at the end of 2013

• Rapid growth of the installed base: 1.2 billion smartphones (+20% YoY) and 340

million tablets (+40% YoY) are expected to be sold worldwide in 2014 *

• Rapid growth in gaming on mobile devices

3 * Source: Consumer Electronic Association – January 2014

Smartphones & Tablets Feature phones TVs & STBs

Page 4: CORPORATE PRESENTATION 2014 - Gameloft

DEVICES

STORE OS

A fragmented industry

Gameloft develops its games on 4000 smartphone & 350 feature phone models

in 15 languages and on multiple operating systems (iOS, Android, WP8, etc.)

4

Page 5: CORPORATE PRESENTATION 2014 - Gameloft

Flood of 50$-100$ smartphones & tablets

5

Average smartphone retail price expected at 297$ in 2014 vs. 345$ in 2013*

* Source: Consumer Electronic Association – January 2014

Green Farm on Yuan Dao Dual Core

Android Tablet

Danger Dash on Gionee Dual Core

Android Smartphone

Page 6: CORPORATE PRESENTATION 2014 - Gameloft

GT Racing and Let’s Golf 3 : first Freemium games to launch in early 2011

03/01/2011: Launch of the

Freemium version

Launch date: 08/01/2011

Makes more revenue than

LG2 ($4,99) after 3 months.

Makes 40% more revenue

after 12 months

IAP & Ads as a percentage of Gameloft smartphone sales

6

A quick adaption to the freemium ecosystem

0%

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Page 7: CORPORATE PRESENTATION 2014 - Gameloft

ABOUT GAMELOFT

Page 8: CORPORATE PRESENTATION 2014 - Gameloft

All Gameloft games are developed in-house. World

class product development and deployment on

smartphones, feature phones, tablets, smart TVs and

set-top boxes. Quality comes first.

Our 27 studios are spread all over the world in

America, Europe and Asia, allowing Gameloft to benefit

from cultural diversity and competitive development

costs.

Gameloft releases 12-15 smartphone and tablet

games every year thanks to its 5200 developers.

Unique portfolio of in-house franchises and third

party IPs.

Unique worldwide network of sales, marketing and

PR people.

Partnerships with all major digital stores and social

networks: App Store, Google Play, Amazon, Microsoft

Market Place, etc. and direct agreements including

billing agreements with over 200 carriers in more than

80 countries.

Competitive advantages

8

Page 9: CORPORATE PRESENTATION 2014 - Gameloft

The #1 game catalogue

9

Third party IPs

Gameloft IPs

Page 10: CORPORATE PRESENTATION 2014 - Gameloft

Established in-house franchises

10

A HUGE SUCCESS ON

ALL GAMING PLATFORMS

OVER 3.5 MILLION VIEWS

FOR ASPHALT VIDEOS

A HIGHLY FEATURED LICENSE

ASPHALT FUN FACTS

500 stadiums

would be necessary

to seat all the players

of Asphalt

$3.2 billion in speeding tickets

would be given if

Asphalt users took their

driving to the streets

Asphalt players

have made

950,000 drives

around Earth

A LICENSE PRAISED BY ALL MEDIA SINCE 2004

OVER 80 MILLION DOWNLOADS

Page 11: CORPORATE PRESENTATION 2014 - Gameloft

Top Quality Games Across All Genres

11

“It's a beautiful game, with popping colors

and a lot of variety ” -Touch Arcade

“Not sure who loves this game more—my 9

year old son or his mom?” -User Review

“a brilliantly put together arcade racing package”

-Pocket Gamer

265 Million Downloads!

Asphalt 8: Airborne

5 stars from 4,306 reviews

Despicable Me: Minion Rush

5 stars from 14,734 reviews

#1 Top Paid #1 Top Free

Page 12: CORPORATE PRESENTATION 2014 - Gameloft

Massive audience: 1.3 billion installs

55m installs 16m installs 265m installs 90m installs

11m installs 35m installs 26m installs 44m installs

21m installs 20m installs 24m installs 40m installs

25m installs

16m installs

13m installs 12

Page 13: CORPORATE PRESENTATION 2014 - Gameloft

Recurring revenue streams

13

Page 15: CORPORATE PRESENTATION 2014 - Gameloft

A worldwide marketing network

15

Page 16: CORPORATE PRESENTATION 2014 - Gameloft

Strong relationship with Apple, Google & others

16

Page 17: CORPORATE PRESENTATION 2014 - Gameloft

FINANCIALS

Page 18: CORPORATE PRESENTATION 2014 - Gameloft

Rapid and steady organic growth

18

10.2 23.2

46.8

68.4

96.1 110.3

122.0

141.0

164.4

208.3

233.3

0.0

40.0

80.0

120.0

160.0

200.0

240.0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Sales (m€) - CAGR 2003-2013 = +37%

Page 19: CORPORATE PRESENTATION 2014 - Gameloft

Q1 2014 sales per region

19

EMEA 34%

North America

29%

APAC 20%

LATAM 18%

Page 20: CORPORATE PRESENTATION 2014 - Gameloft

154

486

1,197

694

1,388

-21

263

546 650

760

170

-200

0

200

400

600

800

1,000

1,200

1,400

1,600

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Additional headcount

Key Financial Indicators

20

1.2 2.4 2.3 2.5 2.9 3.3

10.4

17.1

22.0 20.4

28.4

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EBIT (m€)

2.5 2.5 8.8

18.7 13.9

10.7

19.7 25.1

36.9

55.6 60.3

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Net Cash (m€)

2.4 1.9 1.4

16.3

-4.1 -1.8

6.0

13.6

18.2

9.3 7.5

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Net Profit (m€)

Page 21: CORPORATE PRESENTATION 2014 - Gameloft

Profit & Loss Account

M€ 2013 % of sales 2012 % of sales

Sales 233.3 208.3

Cost of sales - 40.5 -17% - 32.6 -16%

Gross margin 192.8 83% 175.8 84%

R&D - 106.8 -46% - 103.1 -49%

Sales & Marketing - 36.1 -15% - 35.5 -17%

Administration - 20.9 -9% - 17.2 -8%

Other expenses -0.4 0% 0.5 0%

Current operating income 28.4 12% 20.4 10%

Stock-based compensation - 3.5 -2% - 4.0 -2%

Other operating revenues & expenses - 1.3 -1% - 1.6 -1%

Operating income 23.6 10% 14.9 7%

Net financial income - 7.5 -3% - 0.5 0%

Net income before tax 16.1 7% 14.3 7%

Income tax -8.5 -4% - 5.0 -2%

Net income (group share) 7.5 3% 9.3 4%

21

Page 22: CORPORATE PRESENTATION 2014 - Gameloft

Balance Sheet

ASSETS (M€) 31/12/13 31/12/12

Intangible assets 8.1 10.5

Tangible assets 16.4 9.1

Non-current financial assets 6.7 6.6

Tax assets 11.2 12.9

Total non-current assets 42.5 39.1

Client receivables 62.8 59.7

Other receivables 20.6 20.5

Cash 61.8 55.7

Total current assets 145.2 135.8

TOTAL 187.7 175.0

LIABILITIES (M€)

Capital 92.8 89.8

Reserves 36.0 28.9

Net profit 7.5 9.3

Shareholders’ equity 136.3 128.0

Non-current liabilities 4.3 4.4

Current liabilities 47.1 42.6

TOTAL 187.7 175.0 22

Page 23: CORPORATE PRESENTATION 2014 - Gameloft

Cash Flow Statement

M€ 2013 2012

Net income 7.5 9.3

Depreciation & provisions 13.6 16.4

Stock based compensations 3.5 4.0

Capitalized R&D -0.8 -1.4

Deferred tax and others 2.1 0.1

Operating cash flow before working capital 25.9 28.3

Change in working capital -1.4 -8.8

Operating cash flow 24.5 19.5

CAPEX -16.5 -6.9

License acquisitions -6.1 -5.5

Others -0.4 -0.1

Free cash flow 1.5 6.9

Capital increase in relation to stock options 10.0 13.2

Share buy-back -6.2 0.0

Effect of exchange rate changes -0.5 -1.5

Change in net cash 4.7 18.7

23

Page 24: CORPORATE PRESENTATION 2014 - Gameloft

Shareholders Information

www.gameloft.com

Stock market Information

SBF120 stock, listed on NYSE Euronext Paris

Level 1 ADR traded OTC in the US

Shares outstanding 84,028,824 (28/02/14)

Sector: Software

Identification Codes

ISIN: FR0000079600

Ordinary shares Mnemo: GFT

ADR ticker: GLOFY

PR Contact

Heather Cosby (US)

+1 (646) 203-8643

Email: [email protected]

Stéphanie Cazaux-Moutou (France)

Tel : + 33 (0)1 58 16 21 55

Email: [email protected]

24

Page 25: CORPORATE PRESENTATION 2014 - Gameloft

This statement may contain financial data evaluated, information

on future projects and transactions and on future economic results/performance.

Such valuations are provided for estimation purposes only.

They are subject to market risks and uncertainties and may vary significantly with

the actual results that shall be published.

The financial data evaluated have been presented to the Board of Directors

and have not been audited by the Auditors.