SPT Networks: Games & Applications

FY2014 MRP

July 2012

Fy2013 – fy2016 Q2 Reforecast & MRP financials

Q2 Fcst FY14 FY15 FY16

REVENUEWheel of Fortune 3,590$ 3,100$ 4,500$ 4,300$ Jeopardy! 660 2,600 1,800 3,000 TBD Titles 250 1,600 3,100 4,500

TOTAL REVENUE 4,500 7,300 9,400 11,800

COST OF REVENUESProduction & Content (1,071) (2,263) (3,251) (4,630) Testing (22) (21) (30) (40) License Fees (2,200) (2,400) (2,500) (2,500)

TOTAL COST OF REVENUES (3,293) (4,684) (5,781) (7,170)

OPERATING EXPENSESHosting/Bandwidth (61) (279) (289) (299) Data Management (90) (90) (90) (90) Sub-Total Technology (151) (369) (379) (389)

Sales and Marketing (350) (799) (900) (1,200)

General and Admin. (646) (947) (1,240) (1,542)

TOTAL OP. EXPENSES (1,147) (2,115) (2,519) (3,130)

EBIT 60$ 500$ 1,100$ 1,500$

Headcount 5 7 9 11

Cashflow (400)$ (200)$ 500$ 900$

FY13 FY14 FY15 FY16$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

SPT Games Revenue by Title

WHEEL OF FORTUNE

WOF Cubed

WOF Kids

JEOPARDY!

SPORTS JEOPARDY!

Blackjack

TBDRe

ven

ue

$4.5m

$11.8m$9.4m

$7.3m

SPT Games will continue to reinvest in order to grow the product library.

FINANCIAL OVERVIEW REVENUE BY TITLE

•Maintain WOF/JEP as premiere digital properties and create new brand extensions (i.e. Cubed)FY13

ESTABLISH

•Launch on new platforms (i.e. OTT, PC, social), localize and build new gamesFY14

EXPAND•Focus on home-grown original IPFY15

DIVERSIFY

•Continue to reinvent classic brands, innovate and growFY16

EVOLVE

DISTRIBUTION / BD

PRODUCT / OPERATIONS

MARKETING / PR

EXECUTIVE SUMMARY Fy2013-2016 STRATEGIES AND TACTICS

FY13 FY14 FY15 FY16

5

Expand Partnership

Opportunities

Increase revenue by expanding current partnerships, discovering new partnerships and launching new IP

Cultivate New IP

• Deepen strategic ties with existing partners (e.g. Apple, Google, B&N, MSFT)• Scale business through new partnership opportunities with carrier, OEM, and other emerging

storefronts• Secure preload and premium placement opportunities• Source new international partnerships to support expansion efforts and localization• Strengthen inter-company relationships by aiding other business units with app development &

distribution• Pursue development funding opportunities from strategic partners• Research and implement new monetization tactics

• Identify market opportunities and drive the greenlight/ultimate process for home-grown IP• Pursue license deals with 3rd party publishers to accelerate the development of brand

extensions • Source and secure IP from SPT for potential digital game development

DISTRIBUTION / BUSInESS DEVELOPMENT Fy2014-2016 STRATEGIES AND TACTICS

6

Build and Launch New Products

Launch both new and updated products in order to expand and retain a loyal customer base and increase revenue

Upgrade and Maintain Existing

Products

Expand to New Platforms

• Revitalize tent pole franchises (i.e. Wheel of Fortune 30th , Jeopardy! 30th)• Create and launch new WOF/JEP brand extensions (i.e. WOF Cubed, Sports Jeopardy!, and

kids versions)• Drive sales in international territories with localized versions of the apps• Create games with home grown IP that can be distributed across multiple platforms• Research and leverage licensed IP (both within Sony and externally) to create new games

• Develop and maintain cost-effective and scalable back-end solutions to improve functionality and stability (i.e. CMS, server)

• Research and incorporate new monetization platforms into our apps (i.e. SessionM, GetJar)• Improve analytics in all apps to inform product feature changes• Collect and review customer feedback across platforms to focus update strategies

• Launch products on additional platforms (i.e. Facebook, OTT)• Develop products for next-generation connected platforms (i.e. HTML5, Windows 8)• Work with major OEMS and distribution channels to bring our apps to new devices (i.e.

Google TV)• Leverage new platform technologies to keep our apps fresh and relevant (e.g. Apple iOS

updates)• Integrate cross-brand digital initiatives (e.g. Yahoo! Widget, Wheel Watchers Club, 2nd

screen)

PRODUCT / OPERATIONS Fy2014-2016 STRATEGIES AND TACTICS

7

Leverage Partnerships

Expand SPT Games’ presence and reputation as a leader in the digital games marketplace

Launch 360°Promotions

• Expand strategic relationships with 3rd Parties (Apple, Amazon, Google, Facebook, Barnes & Noble, OEM etc) to extend and promote brands

• Manage open communication between Product team and 3rd Party Partners to optimize game feature sets and involve partners in development process

•Secure key placement on device and in app store at launch, editorial support, newsletter outreach, beta consideration for new programs

• Develop video and banner campaigns for placement across owned and paid media channels including on-air

• Create themed marketing programs to garner promotional support across platforms (e.g. title launch, Back to School, Holiday Hits etc)

• Run periodic pricing promotions to stimulate app rankings and sales• Establish relationships with key games app media and bloggers for earned media support• Partner with WOF and JEP marketing teams for consistent integration to utilize owned media

channels (show, website, FB, Twitter, newsletter etc.)

Build Perennial Brands

• Champion WOF and JEP as SPT Games tentpole franchises• Utilize brand extensions to reach and capture new audiences and cross-sell SPT Games library• Expand marketing presence in most engaged international territories• Evolve products with key updates to re-engage consumers• Launch new IP with strong support across owned and paid channels• Create owned marketing channels (web, FB, Twitter etc) to drive consumer interaction• Explore IP expansion / feature set optimization through consumer research

MARKETING / PR Fy2014-2016 STRATEGIES AND TACTICS

Producer

Hire 2 additional heads to allow for continued product expansion

Associate Producer

•Develop strong game concepts with members of the production and operations team•Created and maintain design documents detailing feature set and full game functionality•Work closely with production team to ensure that obstacles are cleared & milestones were met on

schedule•Engage partners to secure build approvals & ensure that IP is well represented •Provide direction and leadership to QA team throughout the testing and approval process•Plan production of and developed concepts for downloadable game content updates•Support the marketing team to ensure accuracy & provide approval in creation of promotional

materials

•Lead the team through the QA process of game releases•Maintain and customize the internal bug-tracking database, reviewing all bugs per project daily•Create custom test plans to ensure the highest quality and accuracy of all products in testing•Assist Production and Operations in the preparation and packaging of all game builds •Prepare and present reports detailing the status of all titles under test

SPT GAMES AND APPLICATIONS GROUP Fy2014 HEADCOUNT

Celebrate the new 30th season with a completely immersive gameplay experience

Wheel of fortune 30th Anniversary

Launch: 9.17.12Platforms: iOS and AndroidPrice Point: $2.99 with In-App purchaseTarget Audience: Casual/Social Gamers

Key Features• We have the legendary host, Pat Sajak• Play opponents cross platform, iOS vs Android• 30th Anniversary Story mode lets you play through all the

decades• New UI and Social Media Multiplayer interface• In depth customizable Avatar system• New Camera movements and host banter makes the player

feel like they are watching the show• Chat with friends during gameplay

In-Game Monetization• Themed customizable Avatar packs that comes with 100

themed puzzles• Buy power-ups to help you win

Launch: April 2013Platforms: iOSPrice Point: $0.99 with In-App purchaseTarget Audience: Casual/social gamers

Key Features:• Combines Wheel of Fortune with Crossword Puzzles• Fun and addictive like Sudoku• Play against your friends online, asynchronous, or live• Have multiple games going on with different friends• Play different modes – solitaire, speed round, multiplayer

In-Game Monetization:• Additional Puzzles and Power Ups

Wheel of fortune cubed

Combine the rules of Wheel of Fortune with the cleverness of a Crossword

Launch: April 2013Platforms: iOSPrice Point: $0.99 with In-App PurchasesTarget Audience: Card/Strategy gamers

Key Features:• Progression-based story mode for single players – defend

against an evil Joker who has captured all the Kings and Queens

• Travel through the world and fight enemies with easy to pick up and play Black Jack rules

• Customizable Player Avatars gives each individual a unique playing style

• Play against your friends through FB Connect with an asynchronous turn-based mode

In-Game Monetization:• In-game currency allows the player to purchase “Gold” in bulk

to spend on virtual Items• Virtual items include additional weapons, strength, power ups

etc.

Play Black Jack with Fantasy Role Playing twist in this game based on original IP developed in-house

Black Jack the knight

LIFE METER LIFE METER

Launch: TBDPlatforms: TBDPrice Point: TBDTarget Audience: Male skew, Sports Fans

Key Features:• All the fun of Jeopardy! only focused on Sports• Play with friends across multiple platforms• Live or turn-based and will allow for single, multiplayer,

and tournament modes• For multiplayer, play against your friends online,

asynchronous, or live. In-Game Monetization:

• Additional Puzzles based on specific sports, leagues, college sports, sports by decade, tournaments/events, sports movies/tv shows,

• Avatar Options based on teams, leagues, events

Sports jeopardy!

Prove you are the ultimate sports expert in this special edition of America’s Favorite Quiz Show®

Appendix

13

Fy2013 – fy2016 Q2 Reforecast & MRP financials

Q2 Fcst FY14 Last MRP Variance FY15 Last MRP Variance FY16

REVENUEWheel of Fortune 3,590$ 3,100$ 3,640$ (540)$ 4,500$ 4,060$ 440$ 4,300$ Jeopardy! 660$ 2,600$ 1,560$ 1,040$ 1,800$ 1,740$ 60$ 3,000$ TBD Titles 250$ 1,600$ 1,600$ (0)$ 3,100$ 3,100$ -$ 4,500$

TOTAL REVENUE 4,500$ 7,300$ 6,800$ 500$ 9,400$ 8,900$ 500$ 11,800$

COST OF REVENUESProduction & Content (1,071)$ (2,263)$ (1,434)$ (829)$ (3,251)$ (1,890)$ (1,361)$ (4,630)$ Testing (22)$ (21)$ (21)$ 0$ (30)$ (21)$ (9)$ (40)$ License Fees (2,200)$ (2,400)$ (2,600)$ 200$ (2,500)$ (3,000)$ 500$ (2,500)$

TOTAL COST OF REVENUES (3,293)$ (4,684)$ (4,055)$ (629)$ (5,781)$ (4,911)$ (870)$ (7,170)$

OPERATING EXPENSESHosting/Bandwidth (61)$ (279)$ (200)$ (79)$ (289)$ (250)$ (39)$ (299)$ Data Management (90)$ (90)$ (113)$ 23$ (90)$ (113)$ 23$ (90)$ Sub-Total Technology (151)$ (369)$ (313)$ (56)$ (379)$ (363)$ (16)$ (389)$

Sales and Marketing (350)$ (799)$ (913)$ 113$ (900)$ (1,196)$ 296$ (1,200)$

General and Admin. (646)$ (947)$ (1,019)$ 72$ (1,240)$ (1,330)$ 90$ (1,542)$

TOTAL OP. EXPENSES (1,147)$ (2,115)$ (2,244)$ 129$ (2,519)$ (2,889)$ 370$ (3,130)$

OP. INCOME BEFORE CONT. 60$ 500$ 500$ (0)$ 1,100$ 1,100$ 0$ 1,500$

EBIT 60 500 500 (0) 1,100 1,100 0 1,500

Headcount 5 7 7 - 9 9 - 11

Cashflow (400)$ (200)$ (200)$ (0)$ 500$ 500$ 0$ 900$