VISIT WWW.ELADKUSHNIR.WORDPRESS.COM TO SEE AN UP TO DATE VERSION OF THIS LECTURE (Q2/Q3 2016) Part of my ongoing lecture series on the State of the Social Casino Industry, this presentation is from Casual Connect Tel Aviv (October 19-21 2015). For more on Social Casino visit my blog at www.eladkushnir.wordpress.com

1. State of the Social Casino
Industry Q3 2015
Elad Kushnir, Vice President of Business Development
Blog: www.eladkushnir.wordpress.com
Twitter: @eladkushnir
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015

2. Playtika is the Social Casino Global Market Leader
2CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015
$549
Revenues
in 2014
million 5.7
DAU
million
18.5
MAU
million$0.27DARPU
12 Global Offices, Over 1100 Playtikans

3. Market Overview
3
SOCIAL CASINO
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015

4. 4
= Social Casino
Free 2 Play
Business Model
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015
SOCIAL CASINO IN CONTEXT

5. 5
2012 2013 2014 2015E 2016E 2017E
FB Revenues Mobile Revenues
$4.44 B
$2.8 B
$2.03 B
$1.33 B
$3.46 B
$4 B
SOCIAL CASINO MARKET SIZE
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015 Source: Eilers Research

6. 6
$58.6
$32.9
$3.5
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
Billions$USD
Web / PC / Console Mobile Social Casino
GLOBAL GAMES REVENUES Vs. SOCIAL CASINO 2015
B
B
B
~4% of Global
Games Revenues
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015 Source: Eilers Research, New Zoo

7. 7
MARKET PLAYERS
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015
Casino Suppliers
Offline Casino Operators RMG Operators
Social Games Companies
Proven Content Mobile & Social Platform Experience
Brand and Cross Promotion Digital Casino Experience

8. 8
+ HUNDREDS MORE
PLAYTIKA ~22%
ZYNGA ~11%
IGT ~9.5%
GSN ~5.9%
CHURCHILL DOWNS ~5.7%
SCIENTIFIC GAMES ~5.4%
TIER 1 ~59.5%
TIER 2
~21.3%
TIER 3
~19.2%
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015 Source: Eilers Research
COMPETATIVE LANDSCAPE Q3 2015

9. 9
TRENDS AND REALITIES
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015

10. 10
THE PORTFOLIO STRATEGY GOES MAINSTREAM
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015
Games
launched
or acquired
in 2015

11. EXPANDED PRODUCT OFFERINGS
11
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015
Classic Slots

12. LOYALTY PROGRAMS ARE THE STANDARD
12
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015

13. A B2B POSTMORTEM
13
My slide from Casual Connect San Fran 2014
 Quality of content, game
play, support, and overall
experience is hard to achieve
in an off the shelf product.
 A one size fits all approach
doesn’t work in the
entertainment industry
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015

14. 14
MERGERS AND ACQUISITIONS
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015

15. 15
SOCIAL CASINO 2015 M&A SUMMARY
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015 Source: Playtika Research Dep
Date Target Acquirer Price
MAR 15 ????
MAR 15 ~$10M
JUN 15 $7.5M
JUL 15 $18M
AUG 15 $39.2M
AUG 15 $27.5M
SEP 15 $25.6M
SEP 15 $60-110M
DGN GAMES

16. QUICK RECAP
• The Social Casino industry is growing steadily and consistently. Worth $3.46B
this year.
• The Social Casino niche generates ~4% of global games revenues
• 4 types of companies dominate the social casino landscape
• The top tier players continue to strengthen their market share controlling almost
60% of the market.
• Trends and Realities
• The Portfolio strategy is key to success
• Classic slots are a new sub-niche with real potential
• Loyalty programs are standard practice
• B2B has yet to scale
• M&A trend continues albeit at a smaller scale
16

17. THANK YOU!
Elad Kushnir
E: eladk@playtika.com
CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015