State of the Social Casino Industry Q2/Q3 2016Elad Kushnir SVP Business Development, Playtika

eladk@playtika.com

Nov 1 2016

Social Casino global market leaderPLAYTIKA OVERVIEW

Founded in

20106

Games13

Platforms1350Employees

14 Global offices; Head Quartered in Herzeliya, IsraelPLAYTIKA OVERVIEW

PLAYTIKAS EVOLUTION

2016 Acquired by Giant Interactive

PLAYTIKA IN NUMBERS

$725MRevenues in 2015

12 Platforms

20MMAU

60%Rev from Mobile

6MDAU

Market Overview

7

SOCIAL CASINO

CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015

8

= Social Casino

Free 2 PlayBusiness Model

CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015

SOCIAL CASINO IN CONTEXT

SOCIAL CASINO MARKET SIZE

2012 2013 2014 2015 2016E 2017E 2018E0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

0.981.20 1.26 1.21

1.09

0.900.72

0.35

0.83

1.52

2.10

2.633.08

3.45

1.33 BN$

2.03 BN$

2.78 BN$

3.31 BN$3.72 BN$

3.98 BN$4.17 BN$

FB Mobile Gross Revenues

Source: Eilers Research

INDUSTRY OVERVIEW: MARKET LEADERSHIP Q3 2016

+ hundreds more

Playtika 25.1%Scientific Games 8.4%Zynga 8.4%IGT 6.7%Aristocrat 6.3%Tier 1 54.9%

Tier 2

28.1 %

Tier 3 17%

Source: Eilers Research

SOCIAL CASINO GENRES SHARE OF TOTAL MARKET

11

79%

13%

7%

1%

Slots Poker Bingo Other

Game Category Leading Product Leading Company

Slots Slotomania

Poker Zynga PokerBingo Bingo Blitz

Other NA NA

12

Source: Eilers Research

TOP 10 GAMES BY $ IS SOCIAL CASINO Q3 2016# Game Publisher Q3 $1 Slotomania $105M

2 Double Down $63M

3 Heart of Vegas $55M

4 House of Fun $45M

5 Big Fish Casino $43M

6 Jackpot Party Casino $40M

7 Caesars Casino $33M

8 DoubleU Casino $31M

9 Texas Holdem Poker $28M

10 Bingo Blitz $26M

13

TRENDS AND REALITIES

CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015

MARKET PLAYERS

Casino Suppliers Games Companies Casino OperatorsProven Content Platform Experience Brand and Cross Promo

3 market entry strategies have emerged. SLOT SUPPLIERS ARE “ALL IN”

15

M&A Strategic Partnerships Licensing

Growth from Niche Products

16

Tota

l Pot

entia

l Use

r Bas

e

Total Potential Revenue

• Male Oriented

• Classic Content

• Truly Social Slots

• Regional Content

Niche Markets

Mass Markets

Focusing on growth within the gameShift in Focus for Mature games

17

Loyalty Programs Meta Game Features

Monetization Optimization Slots Content

Game Economy Optimization

Out of the Box Marketing Tactics

FTD Conversion Optimization Customer Support

One of the biggest upsides is in existing user base. Only a fraction of users have ever paid.

CPI / ROI / WTF?

18

Many More

Clear Competitive Advantage / Data and Scale Lacking performance sustainability at scale

19

MERGERS AND ACQUISITIONS

CASUAL CONNECT TEL AVIV, OCTOBER 19-21 2015

M&A Update Q2 / Q3

20

Scene 53$4.4B $120M$3-10M

(Estimated)

Source: Eilers Research

M&A TRANSACTIONS 2010-2016

*Non Playtika Revenue is Estimated / Playtika Revenue is Actual

Year Target Acquirer PriceJun-10 $18M-$48MMay-11 ~$130M

Nov-12 $40M

Dec-12 $500M

Dec-12 ~$100M

Feb-14 $165MFeb-14 ~$85M

Jun-14 $100M

Oct -14 $100M

Nov-14 $885M

Source: Eilers Research

M&A TRANSACTIONS 2010-2016

*Non Playtika Revenue is Estimated / Playtika Revenue is Actual

Year Target Acquirer Price

March-15 ~$5M

March-15 $10M

Jun-15 $7.5M

July-15 $18M

Aug-15 $39.2M

Aug-15 DGN Games $27.5M

Sep-15 $60M-$110M

Nov-15 $26M

Feb-16 ~$2MJuly-16 4.4$ BNAug-16 Scene53 ~$3M-$10MAug-16 $170M

TOTAL M&A TRANSACTIONS IN SOCIAL CASINO TO DATE

23

~$7 BN

THANK YOU!Elad Kushnir

SVP Business DevelopmentE: eladk@playtika.com