[Business Pitch] Artoncode July 2016

PT ARTONONCODE INDONESIA- JULY 2016

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CHANGE TRACKERS

Date Version Change By Remarks

26 July 2016 0.0 Created MS Requested by IG27 July 2016 0.1 Added Future Products MS28 July 2016 0.1 Added Game Jam MS

2013 2014 20150

5

10

15

20

25

30

35

40

45

50

18.7 19.120.5

21.9 22.223.8

2.9 3.3 4

31.9

36.8

43.1

Growth Record

Europe, Mid East, Africa North America Latin America Asia-Pacific

USD

Billio

ns

The Big Players:

1 China $22.2Bn

2 Japan $12.3Bn

3 South Korea $4.0Bn

4 SEA $1.5 Bn5 Australia $1.2Bn6 India $1.2Bn7 Taiwan $0.7Bn

INDONESIAN GAME MARKET

Indonesia Malaysia Vietnam Philippines Singapore Thailand0

50

100

150

200

250

300

350

400

128.96

153.14

120.9

72.54

153.14169.26

181.1

214.2

155.8

96.8

201.6

230.3

321

293

217

166

241

336

SEA Market Growth

2013 2014 2015

Mar

ket

Val

ue (

USD

Mio

)Indonesia leads South East Asia game market growth with the highest CAGR of +45.7%, within the smallest market share

Source: Newzoo.com

2015Early Predictions

$1.57 BnRevenues Generated in 2015

$181.1Revenue Generated in 2014

$9.12Avg. Annual Spend/Payer in 2014

PROBLEM WITH INDONESIAN GAME MARKET

CURRENTLY FOREIGN PUBLISHERS AND DEVELOPER CAN ONLY SEE INDONESIA AS A BIG MARKET.

LOCAL TELCO COMPANIES –AS GAME NETWORK PROVIDER- TAKE A LOT HIGHER PERCENTAGE FROM REVENUE COMPARING TO THE NORMAL 5% IN DEVELOPED COUNTRIES

90% + MARKET SHARE BELONG TO FOREIGN PRODUCTS.

MARKET SHARE

LOCAL GAME DEVELOPER ONLY EARN

1.2%

WHILE INDUSTRY IN TOTAL EARN ONLY UP TO 9.6% MARKET SHARE.

PROBLEM WITH INDONESIAN GAME MARKET

90%

MARKET

> 5%

90% + market share belong to foreign products. Local game developer only earn 1.2% market share, while industry in total earn only up to 9.6% market share.

Currently foreign publishers and developer can only see Indonesia as a big market.

Local telco companies –as game network provider- take a lot higher percentage from revenue comparing to the normal 5% in developed countries

POTENTIAL OF INDONESIAIndonesia holds all kinds of potential to foster a massive game development industry. It is inexpensive to produce games here, there is a large pool of talent that is growing strong in gaming content.

PROJECTION OF INDONESIAN ECONOMY

NOW 2030Economy in the World 16th largest 9th largest

Member of Consuming Class 45 Million 155 Million

Population in City Producing 53% 74% of GDP 71% 74% of GDP

Skilled Worker 55 Million 113 MillionMarket opportunity in

consumer services, agriculture & fisheries,

resource & education$ 0.5 Trillion $ 1.8 Trillion

Source: McKinsey Global Institute

Ecommerce positioned to play an important role in retail and consumer services

• Local game industry ecosystem now grow naturally (read:auto-pilot)

• Most of local game developer has launched product globally

Local Game

Developer

Local Game

Publisher

Foreign Game

Publisher

Foreign Game

Developer

LOW BUDGET• Casual Mobile

Games• Casual Web

Games• PC/Console Mid

Core

GLOBAL MARKET

INDONESIAN MARKET

HIGH BUDGET• PC MMO Games• MOBILE MMO

Games

Produces

Demands

License Fee & Rev-share$$$$

Licenses

Produces

Licenses

Sponsors & Rev-share$$$

Publish & Monetizes

Publish & Monetize

Sales$$$$$$

Sales$$

Sales$$$$$$

Flow of money Flow of product

INDONESIA GAME INDUSTRY ECOSYSTEM

Flow of product

PROBLEM WITH INDONESIA INDUSTRY ECOSYSTEMLack of B2B collaboration among local game developer and local game publisher is caused by:

1.90% local game developer are small scale companies producing small games

2.Big gap between local game developer quality output and quality demanded by local publishers

3.Lack of local developers success story hinder local publisher to publish local game

4.Lack of local publisher knowledge and networks to publish in global market

LOCAL GAME DEV COMPANY GROWTH PROJECTION

2015 2016 2017 2018 20190

200

400

600

800

1,000

1,200

1,400

416 478 550 633728

60112

183

278

404

Source: https://www.techinasia.com/talk/aim-build-company-unicorn-2/

2015 2016 2017 2018 20190

200

400

600

800

1,000

1,200

1,400

0

100

200

300

400

500

600

LOCAL GAME DEV PRODUCTION GROWTH PROJECTION


2016 2017 2018 2019 -

5,000

10,000

15,000

20,000

25,000

30,000

6,292

8,808

12,332

17,264

24,170

Mar

ket

Shar

e U

nit

in B

illio

n Rp

LOCAL GAME MARKET SHARE PROJECTION


ARTONCODE COMPANY PROFILE

COMPANY OBJECTIVES1. To complete IP development production2. To nail co-production projects with global game companies3. To expand service contracting business unit4. To establish deeper collaboration with Agate Studio

SHORT TERM:

1. To be an Indonesian character/IP databank 2. To be a master licensor for game developer- related software certification3. To be a game related content provider for video broadcaster (online and TV)

LONG TERM

Game development combines various disciplines into production in order to actualize ideas

Business

Design

Art Programming

Software Company

Application

Visual Entertainment

Exhibition

GAME

Game developers constantly evolves their skill based on leading edge technology

Game works by creating interaction with the audience, hence game can be used as a behavioral control tool

GAME DEVELOPMENT

CORE BUSINESS

Provide full/partly services for game, animation and illustration related task

3. Service Contracting

Intellectual Property development, creating full

product from concept to production.

1. IP Development

Join development/production with other company

2. Co- ProductionCo

-Pro

Service

IP Dev

COST ADVANTAGES

Talents

Ability to leverage publishing

infrastructure, gaming community reach, and

R&D development experience for

Artoncode

Advertising

Know-How

•Most cost-effective talents in SEA region•Minimal language barrier to English• Fully scalable and established production pipeline

Guaranteed best price to advertise within EMTEK

Group (Indonesian leading media)

EMTEK GROUPLeading media group in

Indonesia

30.6%

28.9%

21.9%

14.5%

2.5%

Q2.2012Faunia Rancher Released

Q4.2012Artoncode Established

Q3.2012Faunia Rancher Win INAICTA

Q1.2013Faunia Paw Release

Q2.2013Faunia Paw won Best Mobile GameVandaria International Established by Artoncode and Ami Raditya

Q2.2014EMTEK invested in Artoncode

Q3.2014Harmoni ReleasedCollaboration with Ace Edventure on Chemcaper | ReInventing Education

Q3.2015Platinum Patner of Bandai NamcoWinterflame funded on Kickstarter

Q4.2015Asian Poker Released

Q1.2016Collaboration with FingerprintMILESTONE

201620

15201420

132012Q2

2012Q4

COMPANY POSITIONING

GameDeveloper Publisher Distributor Retailer End User

Animation

E-sport

Comic

Toys

Education

Indonesia game development industry ecosystem is still growing, it does not have all the required roles filled in. This means game developer often has to pro-actively fill in another role to achieve more.

OPPORTUNITIES TO BE EXPLORED


Animation

Film

Comic

Toys

Education

Artoncode has the experience to develop IP/characters all the way from pre-production for short animation series development

End Goal:To create IP/characters that can be translated to merchandise through animation, games and other story telling media

OPPORTUNITIES TO BE EXPLORED


Animation

Comic

Toys

Education

E-sport

Artoncode as content provider to enhance gaming tournament videos, and creating story packaging to promote both gamers and players

End Goal:Creating one-stop visual entertainment for local gamers and game enthusiasts

DOTA | CS >> Hardcore e-Sport [150 million people in the worlds]Imagine the e-Sport with Midcore player. Artoncode may have the chance to create that kind of community with ICE, CYBERIA, & VIDIO.COM.

RULE INDONESIA, RULE THE WORLD

Imagine 1 IP with Series on TV, Game, Community, Place to Hang Out & Play, Streaming. The Grand Scale to get Indonesian Digital Market. Creating a lifestyle

IP developmentGame development

Community and E-sport

Community and Social Media

Acquisition andLifestyle via TV Series,

Comic, Toys, Merchandise, etc

NETWORK

SouthPeak GamesVideo game company (Missing Link)SouthPeak Games is a video game publisher of titles including STRONGHOLD3 and VELVET ASSASSIN in Europe and North America.

Nintendo Co., Ltd. is a Japanese multinational consumer electronics company headquartered in Kyoto, Japan. Nintendo is the world's largest video game company by revenue

goGame PTE. LTD.Singapore-headquartered mobile games publisher.goGame’s one-stop-shop service handles customer support, marketing, analytics, payment, user acquisition and other time-consuming processes into a single platform .

Bandai Namco Entertainment Inc. is an arcade, mobile and home video game publisher, based in Japan. The company also publishes video, music and other entertainment products related to its video game IPs.

ARTONCODE

REEL

https://drive.google.com/file/d/0B8fP_db1mVH-NkJjdkk2enFIdTQ/view

ARTONCODE PRODUCTS

FAUNIA RANCHERGenre Pet and Ranch

SimulationPlatform MobileRelease 2012Over 50,000 downloadsAchievements• Apps Store top 20 simulation• Apps Store top 94 apps• Winner INAICTA 2012• Winner Sparx Up 2012

ARTONCODE PRODUCTS

ASIAN POKER: CAPSA BANTING

Genre Multiplayer Online Chinese-Poker Game

Platform Mobile

Release 2014

Over 30,000 downloads

HARMONIGenre Sing-a-long Applications Platform MobileRelease 2014Over 50,000 downloadsAchievements• Winner of APICTA 2013 and

2014• Indonesia Game Dev

Representation at TGS 2014

JKT48 PUZZLE STAGE

Genre Match-3 PuzzlePlatform MobileRelease 17 March 2016Project of

Over 50,000 download

ARTONCODE PRODUCTS

POINT BLANK X (US) GUN BULLET X (JP / CHN)

Genre Shooting

Platform Arcade

Release 2016Project of:

CHEM CAPERGenre RPG Chemistry

EdugamePlatform MobileRelease March 2016Co-Production PartnersACE Edventures (Malaysia)Artoncode (Indonesia)AchievementsFeatured at Google IOExhibitioned at GDC and GameCon

JUMP PACA PACA!Genre Action PuzzlePlatform AndroidRelease 20 March 2016Play Store Rating:

ARTONCODE GAME JAM

MOCHI KUJIGenre Action PuzzlePlatform Android, iOsDeveloped June 2016

Release TBA

PUPPY TOWERGenre Tower StackingPlatform AndroidDeveloped June 2016

Release TBA

Game Jam products are games created within 3 (three) days in an semi-annual internal event challenge to the company’s employees

ARTONCODE TEAM

8 years experience in managing game industry

15+ years experience in gaming industry

8 years experience in tech- industry

Business Process Analyst

Founder of Cyberia Digital Lounge | Cyber-cafe by Telkom

Commissioner, BLISSINDO

B.Com (Accounting Finance), University of Melbourn

Game Dev Director of Ace Edventure – Kuala Lumpur

Founder of Stormidea Kreasindo - Jakarta

2006-2009 Co-Founder of Red Eye Studio Singapore

1999-2003 Studio Head of Matahari Studio

Commissioner, BLISSINDO

B.Com (Accounting Finance), University of Melbourne

B.IS (Information System) University of Melbourn

ANTON BUDIONOCTO

INDRA GUNAWANCEO

ANTONIUS BONGCFO

Founder of Tiket.com

Founder of Wayang Force

Founder of PhaseDev

Founder of Bouncity

Founder of Lintas Berita

B.Sc. (Computer Science) British Columbia Institute of Technology

14+ years experience in game industry

5 years experience in gaming industry

8 years experience in tech- industry

HENRY DARMAWANPUBLISHING EXPERT

MARLIN SUGAMACREATIVE LEAD

WENAS AGUSETIAWANADVISOR

2007- 2015 Co-Founder of Main Studio (creative digital content developer)

2014 Winner ASEAN Character Award, Japan

2010 Screen Category Finalist- British Council IYCE

2009 Winner of TELKOM Indigo-preneur

2002-2006 Co-Founder/Producer Altermyth Studio (Game Developer)

Creator of COMBO Arena

Founder of Matchstick Dream Studio

2011 Project Manager of Area G Pte. Ltd. [game studio]

2009 Winner of Best Young Director Award – Citrapariwara (advertising awards)

ARTONCODEFUTURE PLAN

No Project Target Revenue (in USD)

Profit Margin

1 Winterflame Production 250 K 2 Co-production 500 K3 Services 300 K

Total 1050 K 40%

FINANCIAL TARGET

Period Revenue (in USD) Profit Margin2015-2016 410 K 30%

Description 2015 2016 2017 2018(in USD)

Cash InFlow 410 1,050 2,500 5,000Cash OutFlow 465 995 2,110 3,230Game Dev and R&D 280 600 750 850Game Publishing 50 155 1,000 2,000Rent and Utilities 20 40 60 80Events and Other Expenses 115 200 300 300

Cash Burn (55) 0 390 1,770

CASHFLOW PROJECTION

ROADMAP

Q3 Q4 Q2 Q3 Q4 Q2 Q3

2016 2017 2018

IP DevelopmentUSD 250,000

Service / Co-ProductionUSD 500,000

AAATriple A Colaboration

Service / Co-ProductionUSD 300,000

Service / Co-ProductionUSD 1,000,000

IP Dev /Co-ProductionGame with revenue of USD 100,000 / day

Q1 Q1

FUTURE PRODUCT- WINTERFLAME

WINTERFLAME: THE OTHER SIDE

Genre Adventure Puzzle Platformer

Platform Steam, PC, Mac

Target Audience

Young Adults (RT PG 13)

Est. Playing Time (per part)

2 (two) hours

Est. Total Playing Time

6 (six) hours

ReleasePart 1: Forest and RuinsPart 2: Heights and WaterarcPart 3: Cradle

AchievementsFunded at Kickstarter $ 71K CADGreenlit by SteamMost Promising - IGS 2014Most Promising – GDG 2015


Fuze Game Co.,Ltd Beijing internet entertainment company focus on TV game console product design， development and gaming operation.

Publishers looking forward to the game release:

Gambitious BV is the first global crowd-financing platform exclusively for games.

AspyrThe Greatest Mac publisher on Earth, ever.

Headup Games GmbH & Co. KG is a video game publisher company located in Düren, Germany. Headup Games has published games including LIMBO for several platforms. PC and Mac, as well as iOS and Android.


Dev Stage Due Date Technical Deliverables Content Deliverables Prerequisite Requirements

First playable demo 15 Juni 2016 • Main features accessible• UI/UX fully functioning• Myuu’s Journal sample• Gauntlet- Zroot

• Complete 4 (four) playable puzzle from Forest

• 1 puzzle with Zroot (power-up gauntlet)

Part 1- Alpha November 2016

• All features accessible• Myuu’s Journal part 1 complete• Gauntlet- Zroot and Voltex

• Forest and Ruins complete puzzle set (approx. 50 puzzles)

• Additional content in Myuu’s Journal

Immediate publisher’s deal after demo

Part 1- Beta December 2016

Shippable bug part 1

Part 2- Alpha June 2017 • All features accessible• Myuu’s Journal part 2 complete• Gauntlet- Air Hole and Bobble

• Air Hole and Bobble complete puzzle set (approx. 50 puzzles)

• Additional content in Myuu’s Journal

Part 1 release on-time

Part 2- Beta July 2017 Shippable bug part 2Part 3- Alpha January 2018 • All features accessible

• Myuu’s Journal part 3 complete• Cradle complete puzzle set

(approx. 25 puzzles)• Additional content in Myuu’s

Journal

Part 2 release on-time

Part 3- Beta Febuary 2018 Shippable bug part 3Release March 2018 Part 1-3 Gold version

**all timeline is subject to change depend on the pre-requisite completion

HARMONI SERIES Genre Children Educational

ApplicationPlatform Apple

Target OS:

iOS 6.0 and up

Device: iPhone 4- iPhone 6SiPad 2

AndroidTarget OS:

Android 4.1 and up

Minimum Requirements

Memory RAM 512MBSpace 1024MB

Language:

Primary: Bahasa IndonesiaSecondary: English

Screen Ratio

Safe frame 4:3 – Optimum frame 16:9

Monetization

Ads and Premium

FUTURE PRODUCT- HARMONI

ASEAN

Multiple Countries

Mobile Apps

Comic

Simple Comic Strip

Items

Cute Pop-Up Shop

Cute Chars

Universal Characters from Indonesia

ShortsNew established local IP

Collabo-ration

Kids Meal

FUTURE PRODUCT- HARMONIDev Stage Due

DateTechnical Deliverables

Content Deliverables

Assumptions

Harmoni Jukebox- Alpha

May 2016 Main features working properly

• Game flow• Play song • Auto-play

Harmoni Jukebox- Beta

June 2016 Additional features working properly

• Shop• Parental lock• Social media sharing

Harmoni Jukebox- Release

TBD All features working and testedFeedback from “value potion”

Harmoni ABC- Alpha

July 2016 Main features working properly

• Game flow• All alphabets and all animals

asset done• Auto-play• 4 mini games (letter,

animals, puzzle, make-a-word)

• Temporary BGM, SFX and VOHarmoni ABC- Beta Aug 2016 Added outsourcing result • Sound and music

implementedBGM, SFX and VO are outsource to a third party

Harmoni ABC- Release

Aug 2016 Tested

Harmoni Short 1 Aug 2016Harmoni Short 2 Aug 2016


ROYALE FLUSHGenre Mobile Card GamePlatform Apple

Target OS: iOS 6.0 and upDevice: iPhone 4- iPhone 6S

iPad 2AndroidTarget OS: Android 4.1 and upMinimum Requirements

TBA

Language:

Primary: English

File Size 75 MBPricing Freemium

(Free-to-Play with in-game purchases)

FUTURE PRODUCT- ROYALE FLUSH


Dev Stage Due Date Deliverables Deliverable’s RequirementsPhase 1 1 Nov 2016 • Base game and UI

• Floor system• FB login and social features• Chat pre-set & emoticon• Player Rating Value system• Mission system• Bot system• Auto-solver• VIP Point

All project’s specification for phase 1 are accepted and confirmed before 1 August 2016.

Phase 2 1 Feb 2017 • Tournament system• Mini-games• Daily reward• Leaderboard• Theme setting and shop

All project’s specification for phase 2 are accepted and confirmed before 1 November 2016.

Phase 3 1 May 2017 • Custom game• Facebook game version• CMS

All project’s specification for phase 3 are accepted and confirmed before 1 February 2017.


Offline Marketing- Popular Magazine:• Create an exclusive tournament sponsored by Popular Magazine. The preliminary will be held

online, with a high stakes qualification. This will encourage people to buy their way up to join the tournament.

• The top finalist will be invited to an offline event, where they play the last leg of the tournament accompanied by the Popular Models.

• Create a stand where people can play strip poker against a Popular Model if they download the game or buy an in-game item.


TAP TAP BATTLE Genre Multi-player action tapping mobile

gamePlatform Apple

Target OS: iOS 6.0 and up

Device: iPhone 4- iPhone 6SiPad 2

AndroidTarget OS: Android 4.1 and up

Minimum Requirements

Memory RAM 512MBSpace 1024MB

Language:

Primary: English

Screen Ratio

Safe frame 4:3 – Optimum frame 16:9

File Size TBA

Pricing In-App Purchase

FUTURE PRODUCT- TAPTAP BATTLE

FUTURE PRODUCT- TAP TAP BATTLEDev Stage Due

DateTechnical Deliverables

Content Deliverables Assumptions

Tap Tap Battle - Alpha

Oct 2016 Game flow working properlyAll mini-games deliveredSingle player scoring

• Sign in/Sign up• Category randomizer• 18 mini-games• 6 tutorial (1 each

category)

Production starts August 2016

Tap Tap Battle- Beta

Nov 2016 Multiplayer featuresLeaderboard

• Friend invite and friends list

• Opponent search• Challenge random

opponent or friend list• Sharing content

Connectivity and Sharing

TBD Integration with BBM • Login connect • Broadcast and direct

message sharing• Link to auto-status

change Tap Tap Battle- Gold

TBD All features working properly and tested

Depend on previous milestone delivery time **all timeline is subject to change depend on the pre-requisite completion

FUTURE PRODUCT- TAP TAP BATTLE

Online Marketing:• In-game event – on monthly basis, the game provide

objectives for player to achieve, such as high-score, play certain category, play against required number of opponents

• Social media sharing• BBM timeline sharing• BBM broadcast or direct message sharing

Offline Marketing:• Offline competition (e-sport event)• TapTap battle game community

SCIENCE SIMULATORGenre Virtual Reality GamePlatform Windows

Target OS: Windows 7 and upMinimum Requirements

Nvidia GTX 970 Graphic card, HTC Vive or Oculus rift

Language:

Primary: English

File Size 1.2 GB

Pricing Premium

FUTURE PRODUCT- VIRTUAL REALITY



Product Duration Deliverable RequirementVirtual Field Trip 6 Months • Virtual reality app using

Google Cardboard• Teacher guide application• Core analytics• 3 sets of trip

• Test device for development.• Content for the trips.

Science Simulator 9 Months • Virtual reality app using HTC Vive or Oculus Rift

• Teacher application side for analytics

• 3 sets of experiments

• Test device for development.• Content for the experiments.


• VR for Education is targeted for schools interested in giving its student extraordinary learning experience.

• Schools that want to be ahead of the curve of normal education can leverage the novelty of VR.

“It's not the big that eat the small...

It's the fast that eat the slow”

THANKS!Any questions?

You can find me [email protected]/ +62 (812) 86 688 388

[Business Pitch] Artoncode July 2016

Business

Transcript of [Business Pitch] Artoncode July 2016