Unveiled the Secrets of Social Game Operation

Dr. Shumian HeGREE Beijing Co., Ltd.

1

2

Introduction of GREE

History

3

2008 Listed on Mothers of the Tokyo Stock Exchange

2005 Started services for mobile phones in addition to PC services

2004 GREE, Inc. was founded

2010 Listed on the first section of the Tokyo Stock Exchange

Launched “Fishing Star”, one of the world’s first social mobile games2007

Recent Development

4

2012 MayAcquired Funzio

Launched GREE Platform globally

MarchReleased "Zombie Jombie”, the 1st mobile social game targeting global market

2011OctoberEstablished Beijing office

AprilPartnered with

Tencent

JanuaryGREE International

was founded

Annual revenue

：US$1,955mn （ 2012 ） 1

Global platform

： 169 countries and regions14 languagesOver a hundred games

* 使用 2012 年 7 月 23 日汇率计算 ;1日元对 0.081 人民币元

GREE Nowadays

5

1 The translation of JPY to USD are included solely for the convenience of readers outside Japan and have been made at the rate of JPY79.31 to US$1, the rate prevailing at June 30, 2012

Establish ：October 2011

Employee

：Over 100

CEO ：Yusuke Amano

北京格联锐合网络科技有限公司

GREE in China

6

7

GREE In-house Developed Games

* Major markets excluding Japan, China and KoreaRace your rivals for treasure in this car battle game.

(released July 2012)©K S/S ・ T ・ P

©G ・ ACopyright (Japan Only)

More games coming soon …

8

Fishing Star

Product Summary

9

One of the world’s FIRST mobile

social games

Since May 2007

Pioneer of free games with in-game

purchases

10

In-game Paid Items

Paid Items

Bait

Rod

Trap

High ranked ones can reduce fishing time

High ranked ones can attract various kinds of fish

High ranked ones can give you a chance to get bigger fish

11

Paying amount

Non-registered

users

Registration CVR

Registered users

Login UU

Paying UU

ActivityPayment

rateARPPU

Retention rate

Convertible rate

KPI Analysis

Maslow’s Hierarchy of Needs in Game Design

Morality, creativity, spontaneity, problem solving, lack of

prejudice, acceptance of facts

Self-esteem, confidence, achievement, respect of others,

respect by others

Friendship, family, sexual intimacy

Security of body, of employment, of resources, health, property, etc.

Breathing, food, water, sex, sleep, homeostasis, excretionPhysiological

Safety

Love & Belonging

Esteem

Self-actualization

12

Evolution of Fishing Star – Friends & Community

13

Love & Belonging

Borrow friends’ rods without leading to any rod depreciation

Send greeting messages to friends

Re-invite function to reduce loss of users and raise the stickiness of existing users

LvUP LvUP

Fishing

+

+

LvMAX

Power up

Decompose

Decompose

Compose

LvUP

Upper Limit

Evolution of Fishing Star – Upgrade of Rod

14

Esteem

Basic Game Cycle

Game Cycle

Collections / Title

Fishing

Exp / Coins / Maps

Fishing EquipmentAction

Expansion

Rewards

Friends / Community / Events

Blessing (lucky dip)

Esteem Love & Belonging

The Importance of Localization

16

Fishing Games in China?

17

Fishing Games in China?

18

Fishing Games in China?

19

* 使用 2012 年 7 月 23 日汇率计算 ;1日元对 0.081 人民币元

Different User Preferences

20

United States China Japan

Simulation Car racing, sports

and wars Battle and

competition

MMORPG Historical themes Battle, competition

and tricks

RPG, casual, cards Animation Cooperation

Source: AppAnnie as of Nov.7, 2012

21

Importance of Platform

* 使用 2012 年 7 月 23 日汇率计算 ;1日元对 0.081 人民币元

How can we market/sell effectively?

22

More Countries

More Players

Effective

distribution around the globe

One Integrated platform

PF

D

P P P P PP

P

Establish ：May 2012

Description：169 countries and regions

14 languagesOver a hundred games

* 使用 2012 年 7 月 23 日汇率计算 ;1日元对 0.081 人民币元

GREE Global Platform

23

Platform Ecosystem

24

Player

Game Developer

Social Media

Global Platform

Happiness

User base

Revenue Game contents

Media contents

Targeted customer

Targeted search / promotion

Payment gateway

Integrated database

25

2010 2011 2012

We Have a Promising Future Ahead

26

Thank You ！