S ocial G aming Market in the Russian Speaking I nternet S ector

1. Social Gaming Market in the Russian Speaking Internet Sector Ekaterina Korkina Head of Partnership Department LLC EVA Studio

2. Plan 1) About Russia (4 min) 2) Russian speaking market of social gaming industry - The growth of the Russian market (8 min) - Social networks in Russia and the CIS (8min) 3) Features of the Russian social gaming market (4 min) 4) Benefits of the Russian social gaming market (4 min) 5) Launch difficulties to the Russian market (4 min) 6) The process of publishing games in Russia and CIS (10 min) 7) Conclusion (3 min) 8)Questions (15 min)

4. About Russia • Russia is located so that part of it is in Europe and part is in Asia. • Russia is so large country that has 11 time zones. • In 2014 Winter Olympics (Sochi) will be held in Russia. • At the moment, Russia is rapidly growing in the field of information technology. • Russian programmers are traditionally considered to be one of the strongest in the world. • There are a lot of companies producing games and applications that take up a strong position in the global market of social media.

5. Russian speaking market of social gaming industry nowadays

6. “Runet” Russian part of the Internet, these are the Russian-speaking and Russian-oriented sites.

7. Internet development in Russia 2011 mln. 55 users 2012 mln. 70 users

8. At the moment, Russian game industry is actively developing, and the segment of social gaming is one of the fastest growing. • Number of social network users: 180 million • Games are still the most profitable segment of the Internet business in Russia. According to forecasts the market size of gaming sector will reach 1 billion USD in 2013.

9. Development of the Russian Speaking Gaming Sector mln. 180 users Market size to 2013 $ 1 000 000 000

10. Trends in the market of social games in Russia, 2012 • - Appearance of new non-standard projects; • - Growing popularity of session games, where users play in a short time-slot of the party; • - New cross-platform products; • - Reduce the amount of piracy; • - The main trend in 2012 is the increase in the number of new players who have not played in online games at all.

11. Social Gaming Market Trend in Russia in 2012 • "Migration" of browser games • to social networks; • Increase of games that are distributed • by Free-to-Play model; • Entry of Russian developers’ games • to foreign markets and vice versa.

12. The growth is due to the fact that: • 1) Public Internet has given a new influx of players; • 2) The age of the players is getting "older." For example, game "Shaman" or “Candy", with 40% of the players are over 50 years old; • 3) There is a large percentage of people are on the Internet in Russia – cold weather!

13. Percent of payments made by women dominates Age of social games users (years)

14. Percentage of paying playersamong users of online games

15. Market development of games in Russia in 2013 • The spread of high-speed Internet; • The development of payment systems, increasing popularity of transactions with electronic money; • Investments in the development of games.

16. According to the forecasts by 2013 Russian market volume will grow in2,5 times

17. Social networks of Russian and CIS market

18. Social networks • Russian local social networks Odnoklassniki. Ru, VK. Com dominate • Close social connections between the citizens of the CIS and Russia, as well as the popularity of the Russian language in these countries. • Russian-speaking users of social networks are also people from Germany and Israel

19. vk.com mln. 40 mln. 100 accounts DAU mln. 2165 23 games & apps DAU age 18-24 45:45

20. Features • - The interface is similar to FB, but according to many experts, it is even easier and better in use; • - Resource initially positioned itself as a social network of students and graduates of Russian universities, later called himself a "modern, fast and attractive way to communicate on the network“; • -There is a virtual currency - the "voice“ – 1 voice is $ 0,23; • - Developers have the opportunity to earn not only in games but also in advertising; • - Social network does not restrict advertising projects of other developers;

21. odnoklassniki.ru mln. 37 mln. 135 accounts DAU mln. 767 20 games & apps DAU age 25-34 33:32

22. Features • - More "original" network than "vkontake" - appeared first. • - Virtual currency "OK" – 1 Ok is S 0.03 • - Developers can only earn on the game itself, the social network doesn't allow to advertise other developers’ games

23. my.mail.ru mln. 40 accounts DAU 300 000

24. Total DAU of online games in 2011 – 2012 45 000 000 40 000 000 35 000 000 30 000 000 25 000 000 20 000 000 15 000 000 0 Odnoklassniki.ru vk.com my.mail.ru

25. Features, Benefits and Launch Difficulties of the Russian Speaking Social Gaming Market

26. Russia - one of the few countries where the FB was not able to get"palm" at the local social networks and in the future the situation will not change. • - In Russia, there are a lot of geeks who are very crazy about games. • - Percentage who pay depends on many parameters.

27. Mostly played games in the Russian speaking social networks

28. Social Games Revenue Forecast for 2012- $360000 000 $ odnoklassniki.ru vk.com my.mail.ru

29. Benefits of the Russian Speaking Market The Russian language is the secondnational language in many CIS countries 14 2 000 000 ISTALLATIONS DAYS

30. Launch difficulties • Translation and localization of the games; • Cultural peculiarities of different countries; • Communication gap between the developer and game players; • Publishing of games; • Document control, taxes, legal issues etc.; • Ununified API system.

31. Russia is a prime example of a dynamically growing market in the gaming industry in social networks vk.com odnoklassniki.ru mln. 180 users mln. $360 Russian speaking market is a modern “Klondike” for those who want to make money!

32. Thank you for your attention! Contacts: Ekaterina Korkina Head of Partnership Department LLC EVA Studio www.evast.ru korkina@evast.ru