BUILDING THE MOST VALUABLE COMMUNITY OF GAMERS/media/Files/G/Game-Corp/documents/results-reports...Virtual Reality £250m n/a eSports £400m +10-15% Driving Growth From a Number of

1

BUILDING THE MOST VALUABLE COMMUNITY OF GAMERS

This presentation includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking

statements can be identified by the use of forward-looking terminology, including the terms “believe”, “estimates”, “plans”, “projects”,

“anticipates”, “expects”, “intends”, “may”, “will”, or “should” or, in each case, their negative or other variations or comparable

terminology. These forward-looking statements include matters that are not historical facts and include statements regarding the

Company’s intentions, beliefs or current expectations.

Any forward-looking statements in this presentation reflect the Company’s current expectations and projections about future events. By

their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or

events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and

assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Forward-looking

statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or

activities will continue in the future. You should not place undue reliance on forward-looking statements, which speak only as of the

date of this presentation. No representations or warranties are made as to the accuracy of such statements, estimates or projections.

Please note that the Directors of the Company are, in making this presentation, not seeking to encourage shareholders to either buy or

sell shares in the Company. Shareholders in any doubt about what action to take are recommended to seek financial advice from an

independent financial advisor authorised by the Financial Services and Markets Act 2000.

2

FORWARD LOOKING STATEMENTS

3

We are evolving our business to achieve our ambition of delivering the most valuable community of gamers

4

Today’s agenda

Market and Strategy Update Martyn Gibbs, Group CEO

UK Retail Charlotte Knight, UK Retail MD

Insight and Customer Strategy Fred Prego, Insight and Marketing Director

Digital Solutions Andy Grainger, CTO

eSports and Events Craig Fletcher, CEO & Founder of Multiplay

Closing Remarks and Q&A Martyn Gibbs

BREAK

LUNCH

5







6

Understanding GAME

DRIVING CUSTOMER RECRUITMENT AND LIFETIME VALUE

The gaming market


Black Friday and Peak opportunity

Virtual Reality and Nintendo

eSports and events

Digital solutions

Global supplier engagement

Insight from Big data

7

Leading retailer of video games in the UK and Spain

Where We Are

Large, loyal customer base

Start of a core content market growth cycle

Accelerate growth in the large and growing product categories recently entered

Exploit specialist gaming credentials and digital infrastructure in existing and emerging categories

Leverage Multiplay as a platform to drive growth in attractive, complementary markets

Retain strong financial position and disciplined approach to capital allocation

Deep supplier relationships across the Group

A CLEAR DIRECTIONA STRONG FOUNDATION

8

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

W17

-201

3

W20

-201

3

W23

-201

3

W26

-201

3

W29

-201

3

W32

-201

3

W35

-201

3

W38

-201

3

W41

-201

3

W44

-201

3

W47

-201

3

W50

-201

3

W01

-201

4

W04

-201

4

W07

-201

4

W10

-201

4

W13

-201

4

W16

-201

4

W19

-201

4

W22

-201

4

W25

-201

4

Combined XB1/PS4 volume

The Importance of Black Friday

Existing XB1/ PS4 owners at BF 2014:

Expected XB1/ PS4 owners at BF 2015:

PS4 Launch Black Friday 2014GAME sold the same volume in 24 weeks over the summer of 2014 as the 2 weeks over Black Friday

GAME hardware market share: 37%

2,400,000

Source: GFK Chart-Track. Note: UK market only

~4,500,000

9

A strong pipeline of titles and innovation for 2015 and beyond

H2 2014/15

H1 2015/16

NEW FORMATS:

VIRTUAL REALITY

STEAM BOX

NINTENDO

10

2014 2019

Console PC Mobile / Tablet

Global Gaming Market

Largest entertainment industry

$81 billion

3% growth p.a. to 2014-2019 forecast

Source: IDG, Console market includes hardware, software and digital.

$94 billion

11

Market Model: Console Category

2014e 2014a 2015e 2016e 2017e 2018e

PS/XB Content PS/XB Hardware Accessories

Content to grow 8% p.a. ‘14-’18

Overall market stable

£2.6 bn £2.5 bn£2.8 bn

Source: OC&C, Company estimates (UK, Spain total)

No VR forecast in accessories

12

Market Model: Physical vs. Digital Console Content

2014 2018

PS/XB Physical Content PS/XB Digital Content

GAME Console Digital Sales (H1):

+34%

+80%

+3%

Source: OC&C (October 2014), UK and Spain combined, GAME

£1.3 bn

£1.7 bnDigital to drive content growth

13

Market Model: Our Preowned Markets

2014 2018

Preowned Preowned devices

+30%

+20%

39% GAME

Other B&M

Internet only

Other

3%

GAME

Other B&M

Internet only

Other

Source: OC&C (October 2014), UK and Spain combined

£0.8 bn

£1.1bn

14

Opportunities in Core Markets

15

Market Model: Nintendo’s Next Move

Source: OC&C (October 2014), Wikipedia

£1,248m

£30m

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Nintendo market (£m)

Nintendo NX console slated for possible 2016

launch

Top selling games of all time Year of Launch Platform Copies sold

Tetris 2006 Mobile 100 million

Wii Sports 2006 Nintendo Wii 83 million

GTA V 2013 Various 45 million

Super Mario Bros 1985 Nintendo Ent. System 40 million

Mario Kart Wii 2008 Nintendo Wii 36 million

Tetris 1989 Nintendo Game Boy 35 million

Minecraft 2009 Various 34 million

Wii Sports Resort 2009 Nintendo Wii 33 million

New Super Mario Bros. 2006 Nintendo DS 31 million

Minecraft Pocket Edition 2011 Mobile 30 million

Wii Play 2006 Nintendo Wii 29 million

New Super Mario Bros. Wii 2009 Nintendo Wii 28 million10 of the top 20 games ever are Nintendo titles

No Nintendo NX in market forecasts

16

Non-console digital markets (content only)

Fastest growing areas in PC tied to eSports and social gaming (e.g. Minecraft)

Targeted strategies for mobile / PC games markets to drive share

2014 2018

PC Mobile

Source: OC&C (October 2014), UK and Spain combined

+9%

+28%

£1.4 bn

£1.8bnCurrent market share c.1%

17

PC Case Study: F2P Multiplayer Online Battle Areas (MOBAs)

29

147

250

406

501

2011 2012 2013 2014 2015

F2P MOBA (US sales), $m

• POSA currency

• Code to content

• GAME Wallet payment integration

• Target Multiplay customer base

• eSports and events

How GAME Monetise

0%

10%

20%

30%

40%

50%

$0

$5

$10

$15

$20

$25

Avat

ar C

osm

etic

s

Hero

unl

ocks

Boos

ts

Non-

avat

ar c

osm

etic

s

Rand

omis

ed it

ems

Mod

es

eSpo

rts re

late

d

Acco

unt s

ervi

ces

Anno

unce

r pac

ks

Portr

aits

Spend per player % monetised

Average spend by micro-transaction

18

Mobile gaming£1,000m+5-10%

Steam Machines

£175mn/a

PC downloads

£200m+5-10%

Virtual Reality

£250mn/a

eSports£400m

+10-15%

Driving Growth From a Number of Attractive New Gaming Markets

Digital code distribution for 3rd

parties (Europe)*

£400m+10-15%

Source: Estimated market size figures for 2018. OC&C, IDG, Company estimates. Growth rates are based on 3 year CAGR from 2015 – 2018 where applicable. * The digital console content market sold through retail channels (code to content or currency) in 10 European markets (Includes subscriptions, full game downloads and DLC (such as season passes)

Preowned devices

£550m+5-10%

New Product

New Market

New Service

2014/15 2015/16

PC (Free 2 Play)

£350m+10-15%

19

Virtual and Augmented Reality

32

120 104 1072

1319 29

5

42 70100

2015 2016 2017 2018

Software

Input devices

Head mounted displays

Oculus Rift (Oculus) – 2016e

HTC Vive (HTC / Valve) – 2015/16e

Project Morpheus (PlayStation) – 2016e

Source: *OC&C (October 2014), **Digi-Capital Report (March 2015)

HoloLens (Microsoft) – TBC

Global VR + AR market

estimated to reach£150 billion by

2020E**UK: £236 million*

20

7881,518

278

381

255

346

2015 2018

New gaming markets eSPORTS Digital Code Distribution for 3rd parties (Europe)

£0.1 bn £0.03 bn

Nintendo

3,476 3,287

Mint and preowned console

Market Summary: Reliance on console category to reduce over the medium term

£1.3 bn

£2.2 bn

Source: OC&C , IDG, Company estimates*Excludes mobile content

£3.5 bn £3.3 bn

*

21

There are market reasons to be positive and our strategy positions us to deliver value for our owners

22

2012 – 2014: Building a strong foundation

Re-sized retail estate

Focus on margin management and cash

Deepened supplier relationships

Investment in digital infrastructure

Expanded use of customer insight

2015: Growth strategy for a digital age

Market share growth in core markets

Digital growth

Deliver an omni-channel journey

Go beyond retail

Champion gaming technology

Continued Business Evolution

23

Digital growth


Go beyond retail


Strategy for a Digital Age

Market share growth in core markets Maintain and grow leading market share of new console cycle

Grow share in existing and new preowned markets

Apply retail expertise to an expanding range of gaming, entertainment and tech products

24



Go beyond retail



Digital growth

Grow sales of console downloadable content (DLC)

Grow sales of PC, mobile, F2P and other forms of ‘non-console’ DLC

25


Digital growth

Go beyond retail




Optimise store footprint, utilisation and profitability

Improve cross-channel integration to increase sales and gross profit

Expand range and use of retail services offered

26


Digital growth




Go beyond retail

Drive income from a growing range of gaming events and eSports

Increase in-store events programme to drive footfall and conversion

Build new revenue streams from other non-retail related gaming activities and services

27


Digital growth


Go beyond retail



Monetise existing digital IP and infrastructure

Leverage emerging technologies to support future revenue growth

Support research and innovation to drive business growth

28

Exclusive announcements

and preorder campaigns

Lock-ins

Trade-in launch offers

Nationwide launch events

Purchase with GAME Wallet

Exclusive editionsDLC Attach

Merchandise (in-store /

Marketplace)

Targeted campaigns via reward / CRM

Play online with ClanForge (PC)

Events and eSports

competitions

Managed server hosting for publishers

Increasing monetisation potential

Deepening supplier engagement

29

Supplier Partners

Retail Events & eSports

UK’s #1 gaming festival Digital code distribution

Mobile

Deep insight into how customers and gamers shop, transact and play across platforms

17 MILLION REWARD ACCOUNTS 3 MILLION DIGITAL CUSTOMERS1.1 MILLION GAMER PLAY ACCOUNTS

600 stores across UK / Spain

Omni-channel infrastructure Major 3rd party events

eSports competitionsFlexible lease profile Managed server software

Digital Solutions

30



Digital growth

Omni-channel journey

Go beyond retail


Grow number and size of Insomnia events

Tech development to enable business growth

Innovation to increase engagement and monetisation in core business

License existing IP to 3rd

parties

Stra

tegi

c Pi

llar

Bring more gaming events to gamers

Deliver local events

Develop our range and offer

Optimise all channels

Increase customer engagement

Digital Solutions

Priorities by Division

31







32

1,476

354

33%

7% 47%81%

47%12%

6% 7%

Nin XB PS

33% 36% 60% 61%

Source : GFK Chart-Track

UK and Spain: Market shape & dynamics

Market Size, H1

£mMarket Online Penetration, %

Console Volume Mix, H1

%Market Value Share, H1

%Retail Digital Share, H1

%

33

Stores (H1)

Avg. sq. ft.

E-commerce

M-commerce

App

Exclusives

Pre-owned

GAMETronics

GAME Wallet

Marketplace

Insomnia

UK vs. Spain

280

790

319

1,250

Watch this space

Watch this space

34

UK Retail Priorities:

Drive core business by growing total customer base

and average customer lifetime value



Improve experience and engagement

35

New Physical and Digital content

£98m

New Hardware£11m

Preowned£69m

Other£29m





1. Driving the core hardware and software businesses

3. Growing our digital business

4. New growth categories

2. Preowned category development


£98m

New Hardware£11m

Group Gross Profit£m, LTM

GAME share of PS4/XB1 Hardware: Life to date

PS4/XB1 Hardware

37% 33%

UK Spain

Focused on customer acquisition and lifetime value

Drives volume and traffic to the business

Opportunity to drive S/W attach

Recruited 1.8 million PS4/XB1 customers to date

Installed Base (m)

14.5

4.13.30.8

UK Spain

PS3/XB360 PS4/XB1

37



Lock-ins






Marketplace)



Events and eSports

competitions


Driving new release pre-launch activity: Preorders

Average Preorder Customer Value, 2014

£101

£393

Non Pre-order customer Pre-order customer

500,000 preorders across top titles this year

Strong preorders for upcoming titles

Preorders are highly valued by publishers

38




Lock-ins





Marketplace)



Events and eSports

competitions


Driving new release pre-launch and launch activity: Trade-in

Over 1.2m customers have traded-in in 14/15

+10% YOY

80% of trade-ins are used to fund a new purchase

36% of PS4/XB1 new releases tied to trade-in

300,000 new trade in customers this year

39




Lock-ins






Marketplace)



Events and eSports

competitions


Driving new release pre-launch and launch activity: Increased programme of events

3,000 events / 150,000 customers in 2014

Strengthens supplier engagement

Increasing social and brand reach

Lock-ins

40

Driving new release pre-launch and launch activity: GAME exclusives

Average Customer Value, 2014

£111

£385

Non-exclusive customers Exclusive customers

Benefits GAME and supplier margin

Exclusive customers spend up to 4X more

Increases preorder figures by up to 1/3

Major H2 exclusives

Exclusive vs. Standard SKU

+600 ppts +11%

%GM ASP

41

Driving new release pre-launch and launch activity

32%

34%

UKH1 13/14 H1 14/15

New Release Week 1 Market Share New Release Week 1 Market Share

57%63%

UKH1 13/14 H1 14/15

Increasing Market Share on New Releases

2015

Reward Re-launch

Summer Campaign

Back to Uni

It’s GAME SeasonTrade-in

campaigns

2016

Reward point events Black Friday

2015 Campaigns and Black Friday

It’s GAME Season

star

Key Peak Releases

Perennial AAA

H1 1

5/16

New IP or new to PS4/XB1 Other significant

H1 1

4/15

44



2. Preowned category development Core preowned

Preowned devices (GAMEtronics)


£98m

New Hardware£11m

Preowned£69m

Other£29m






Preowned£69m


Core Preowned Performance, H1

Core UK preowned sales up 13% yoy

10 million preowned units sold (UK)

Core UK preowned £ margin up 18%

Specialist teams

High street presence

Multi-channel capabilities

Dynamic-pricing models

Leading position

Core UK preowned % margin up over 100ppts to 41.7%

Acquisition of PS4/XB1 customers

Proportion of PS4/XB1 HW and SW preowned sales increasing

Utilise insight and CRM

Increased marketing investment to recruit customers

Driving growth in our core preowned category in 2015

New market for GAME

Online trade-in deals

Online upgrade model

Trade-in Online


Range growth and product cycle

Faster centralisation of stock

Accelerate transition to higher margin product cycle

Expansion of range via Marketplace


Preowned Phones and Tablets (GAMEtronics) in H1 2015

Specialist teams

High street presence

Multi-channel capabilities

Dynamic-pricing models

Growing market shareH1 GAMEtronics sales up 75%

Highest cash margin product

Significant store performance differential (weekly sales)

£432

£4,231

Bottom 20 stores Top 20 stores

Driving growth in GAMEtronics in 2015

Channel development

Review of store estate

More GAMEtronics focused Stores

Improved staff training

Trade-in online

New services

Customer repairs

PAYG sim cards

Premium screen protection service

Trade-in of broken products

Pre-loading content


Range growth

Mint range development

Centralised distribution

Core range in all stores


53


£98m

New Hardware£11m

Preowned£69m

Other£29m








2. Preowned category development


£98m


Console Digital

Non-console Digital

Console Digital Non-console Digital

Add-on Content

Digital Products

Full Game Downloads

CurrencySubscriptions

Downloadable Content (DLC)

PC Credit PC Downloads

POSA Free 2 Play

Strong Digital Outperformance in both the UK and Spain

+18%+26%

UK Market GAME

+54%

GAME

Non-console Digital Growth, H1

Console Digital Sales Growth, H1

+23%

+39%

Spanish Market GAME Spain

Source: GFK-Chart Track, Company

Console Digital Market Share Increase, H1

+4%pts

GAME

+114%

GAME Spain

+12%pts

GAME Spain

Marketing across all channels

CRM

Store staff engagement

Digital advertising

Social media

App

3 million+ Digital customers

Driving Digital Performance

% digital purchased In-store

85%

Of digital purchases made with GAME Wallet, trade-in or cash

75%

3,503

1,511

93 42

PC Console Free 2 Play POSA

Digital Range Growth

Over 5,000 products across all platforms

More than 2,000 added in last 12

months

Console

Increasing range of digital

Add-on content

Full game downloads

New display solutions

Offer digital promotions

AAA launch approach

PC

Increasing range of content

Publisher acquisition

New display solutions

GAME Wallet payment integration

More space in store

Mobile and Tablet

GAME Droid launch

Publisher acquisition

Mobile gaming release schedules

Launch plans

Pre-loaded content on devices

Growing our digital sales across console and non-console markets

59



2. Preowned category development PC Category Development

Toys To Life

Licensed Products

Virtual Reality







£98m

New Hardware£11m

Preowned£69m

Other£29m


#1 platform for PC game downloads (est. 7m UK users)

Steam consoles and controller launching in 2015/16

Opportunity to leverage specialise launch expertise

Retail partnership with Steam for launches

Continued PC category growth in 2015

Steam Consoles Accessories

Range expansion across channels and marketplace

Increased space on category

Interactive in-store displays

Monetise Multiplay customer base

POSA currency

Code to content

GAME Wallet payment integration

Target Multiplay customer base

eSports and events

Free 2 Play

Supporting franchise growth through licensed merchandise

Total merchandise sales +60% y/y

Software only Software + mechandise

+15%

Recruiting new customers: Toys to Life (TTL)

18%

24%26%

32%

2012 2013 2014 2015ytd

GAME Market Share of TTL, %

Total TTL category 2012-2014

value growth+18%

Recruiting new customers: Skylanders case study

4 4 5 57

9

1210

<13 13-16 17-20 21+

Non Skylanders Skylanders

£119

£236

£312 £337

2011 2012 2013 2014

Average Transaction Frequency by age group 2011 Skylanders Customers: Average Customer Value

Opportunity to engage customer base at a younger age and extend customer value

At the forefront of Virtual Reality in retail

Partners we are working with What we are working on

Launch partnerships

In-store demoing

Specialist training

Events

Why partner with GAME

Best advice on format and range

Best attach on new release hardware

In-store experience

Events exposure

65





2. Optimising our store portfolio

1. Enabling the full potential of our teams

3. Strengthening our omni-channel approach

66

Staff Friendliness Staff Knowledge Likelihood to recommend

GAME 82% GAME 79% GAME 82%Avg. 81% Ave 74% Avg. 74%

The best stores and teams for gamers and gifters

Empowering store managers

Continuously improving customer service levels in store and online

Award winning training programmes

Ongoing team development

New online customer service IT platform

Source SMG Global Speciality Retail Concepts: 1 Jan 15–31 Mar 15

No loss making stores

Active estate management

Improving site locations

Working with major landlords to explore out of store experiences

Reviewing partnership opportunities

Strategic move to increase footprint in London

London UK Average (ex. London)

Regional Market Share

+3.2%

Average lease length across estate 2.2 years (UK)

68

Enhancing the store experience

Adding digital screens

Evaluating new concepts

Opportunities for eSports and events

Franchise partnerships

Investing across our channels to drive ACV

£89

£202

£429

£720

Online only Store only Store and online Store, online and App

Average Customer Value by Channel

+18% total spend yoy

+10% total spend yoy

Online development

New site launched October 2014:

Unique users 10%

Orders 18%

Conversion 0.35%pts

Drop out rate 2.54%pts

Basket size1.23%pts

+8% increase in traffic y/y

55 million unique

visitors in H1

Marketplace Launched February 2015

Major new initiative

Range expansion

Building franchises

Driving online traffic

Underpins specialist proposition

Over 70,000 products

8X increase in online SKU count

Growing Marketplace

In-store trials

Marketplace vendors at events

On boarding more vendors

Increasing SKU count

Customer and product insight

SoftwareElectronicsAccessoriesHardwareToys & CollectiblesClothingMoviesOther

Sales split by category

2015 Multi-channel developments

2015

App 2.0New

mCommerce site

Order and Collect

GAME FinanceOnline Trade-in

2016

Online customer journey

optimisation New tablet site

74





2. Using insight effectively

1. Prioritising customer centricity

3. Enhancing our channel experience

75

Today’s agenda






Closing Remarks and Q&A Martyn Gibbs, Group CEO

76

FRED PREGOInsight and Marketing Director

77

Customer Insights: informing everything we do

BIG DATA driving a positive outcome for GAME

and its suppliers.

78

1.1Million

3.9Million

17.9Million

Source: GAME Digital plc April 2015

Huge insight databases

79

1.1Million

3.9Million

17.9Million

23 MillionShopping, buying, playing


Huge insight databases

80

Insight development roadmap

2012 Today Ongoing development

Outsourced (1 internal analyst)

Data held externally

7 days old

Limited research capabilities

Restricted loyalty control or analysis

10 strong data insight team

Single internal, database

Limitless analysis, 24 hour response

Detailed segmentation on all shopper types

9,000 strong GAME research panel

Manual CRM Targeted CRM activity; partially automated

Investing in team

Live dashboards

Publisher integration

Real-time analysis

Personalised engagement plans

Continued increase in automation

Team

Data

Rese

arch

CRM

81

Customer database

Transactional data

Web non-Reward

App data

Web metrics

Publisher data

CRM data

Social andcommunity data

Now includes Scan it!

Now includes automated

emails

Fully integrated with 2 publishers

Now includes Market Place

Now includes GAME wallet

GAMEInsight

GAME UK Insight: Multiple Data Sources Aggregated in a Single Database

82

17.9MTotal insight base

13.5MReward card customers

1.2MXBL / PSN customers in LTM

2.8MDigital customers

1.3MSocial media followers

0.5MOmni-channel customers

GAME UK customer base

0.8MNew customers in 2014

42%Bought new gen

33%Bought digital content

47%New in Peak 2014

NEW CUSTOMERS

1.8MNew gen customers in

database

19%New GAME customers

68%Buying digital

92%Reward customers

NEW GEN CUSTOMERS

83

Segment Engagement Strategy

Av. Transaction Frequency

Av. Transaction Value

Driving incremental

revenue

8 Best Customers Show them love and sell them everything new!

7 Better Customers Encourage further loyalty

6 Good Customers “Pin-point” targeting

5 Only on Promotion Communication of “Knock-out deals”

4 Online/ new title Develop online relationship

3 Accessories & download only Specific product targeting

2 Anniversary purchase Seasonal targeting

1 In store / new title / often Encourage new gen engagement

Driving conversion into incremental revenues through unique shopper segmentation

84


1 In store / new title / often Encourage new gen engagement

Source: GAME Insight Database 1st April 2014 – 31st March 2015

50% Upgraded to

new gen (vs. 20% base)


85


5 Only on Promotion Communication of “Knock-out deals”


18% Increase in ATV YTD


86


6 Good Customers “Pin-point” targeting


13% Increase in ATF YTD


87


8 Best Customers Show them love and sell them everything new!


13% Increase in ATV YTD

Thanks to your Virtual Shares!

Can’t see any images? View web based version

Hi Mike, £122.38p worth of free Virtual Shares are now available to spend on your GAME Reward Card… What will you spend yours on? Enjoy your free points!

Connect with us

Terms & Conditions | Privacy Policy | Your Account | Help | Contact Us | Store Finder


88

Day 0

Source: GAME Insight Database April 2015

New Generation Hardware Customers: Automated CRM programme

Day 30Day 25Day 20Day 15Day 10Day 5Day 1

Welcome

Thanks for buying!

Welcome to GAME reward!

GAMEcare

Protect your console!

Digital

Digital benefits and education

Earn rewards!

Accessories

Need a headset or steering

wheel?

Earn rewards!

Movies

Targeted movie promos

Offers

Trade-in

Preowned

New to Digital

Digital guides

Console purchase

31% incremental spend in first 6 months vs. control

High skew to digital and accessories

89

“New to reward” Email automated and personalised programme

Email 1

Email 3


Email 2

In-store sign-up

No App account

No Reward points

Female, age 45

“The GAME app makes it

easier to track your spend and

save money”

43% incremental spend in first 3 months vs. control

90

Are you ready for Game of Thrones?

Can’t see any images? V iew web based version

91

How will insight and marketing support our growth ambitions?

92

Example Insight Support

2. GAMEtronics

1. Toys To Life

3. PC

4. Preparing for VR

93

Pestered parents

Parents are old gamers who want to introduce their kids to gaming

Drive market share of this growing category

CRM, in-store events

Limited spend, big revenue opportunity

Target

Insight

Opportunity

Marketing Strategy

Investment / ROI


Toys To Life

10%

16%

35%

39%

PEGI 12-14

PEGI 15-17

PEGI 18

PEGI 3-12

Software purchased in 6m prior

4 4 5 579 12 10

<13 13-16 17-20 21+

Non Skylanders Skylanders

ATF by age group

94

Young adults, male and female

Most customers own a laptop or PC yet only 11% buy PC digital or accessories17% ready to buy pre-owned phone26% ready to buy pre-owned tablet

Converting existing customers and huge new audience to target

Targeted advertising, in particular radio and Out Of Home (OOH) Own channels; in particular CRM

Significant but targeted spend, big revenue opportunity

Target

Insight

Opportunity

Marketing Strategy

Investment / ROI


Growing GAMEtronics

Old Phones

Mobile Phones

25%

8%

38%

3%

24%2%

Give to family/friends

Recycle

Sell/trade-in

Throw away

Keep

Other

1% 18%

81%

Don't own

Change at leastonce a year

Change less thatonce a year

95

GAME customer base and Multiplay customer base

Over 90% of our current customers own a laptop or PC yet only 11% of our base buy PC digital or accessories from us.

Engage GAME/Multiplay customers on buying PC equipment, accessories and digital

Incentivise PC purchase engagement with our own audienceLeverage Multiplay events to build awareness and drive purchase

Limited spend (own channels), big revenue opportunity

Target

Insight

Opportunity

Marketing Strategy

Investment / ROI


PC

Purchase of PC items in our base, % by segment

GAME customer base

0%

10%

20%

30%

40%

50%

1 2 3 4 5 6 7 8

Own console Own Desktop/Laptop

96

20%

50%

60%

Average 1 8

Segment 8 (early adopters) and Segment 1 (brand conscious)

80% of people who have raised an interest for VR are from segment 8!

Get quickly big market share to dominate the VR category from our 2 best segments (800k customers)

In-store experiential events, CRM / personal shopper experience

limited spend, big revenue opportunity

Target

Insight

Opportunity

Marketing Strategy

Investment / ROI


Launching VR

PS4/XB1 Adoption by segment

97

69%63%

16%17%14%15%

They reward those that love gamingThey reward those that buy gifts for game lovers

Total Brand perceptions % Agree

Source: GAME Brand Tracker, January 2015, SPA Future Thinking

More than half of GAME’s loyalty

scheme consider is to be superior to other,

similar ones

Reward is a key brand strength of GAME

Launch Merge with Gamestation programme

App Launch

Reward when Trade in

1997 2013

2014 2015 2016

VIP

Clubs on App

Dynamic Accolades

Non Reward Receipts

Social Integration

Personalised Offers

Geo - Location Offers

Subscriptions

Part of GAME Wallet Partner Offers

Clubs

Weekly Online Offers

Push Online

70% Use Monthly

69% Feel rewarded

53% Best Loyalty Programme

100

Today’s agenda







101

GAME ESPORTS AND EVENTS

102

Today we will cover:

1. Industry overview

2. The Multiplay business and future potential

3. Conclusion

Increase Insomnia events

Bringing more gaming events to gamers


103



3. Conclusion




104

Events and eSports have changed

105

Growth in ‘non-eSports’ events e.g. MineCon, ComicCon

Professionalisation of eSports industry

Explosive growth in on and off line eSports participation

YouTube, Twitch and social media

The Minecraft phenomenon

Increasing mainstream acceptance and commercialisation

Source: New Zoo

And they will continue to change

71.5

205

2010 2011 2012 2013 2014

eSports global audience (millions)

106

13m 56m 19m 117m

0m 50m 100m 150m 200m

Regularly participates Regularly watchesSometimes plays Sometimes watches

54 53

34 29 26 24 23 22

Call ofDuty

FIFA Minecraft World ofWarcraft

League ofLegends

World ofTanks

StarCraft DOTA 2

Global eSports Audience in 2014

Franchise Popularity, % of players (UK)

Total Gaming Population

65% of adults 16-78 years old

99% of 8-15 year olds

DNA of the eSports enthusiast

Source: New Zoo

% of gamers who watch or participate

16%

% of enthusiasts who are big spenders

22%% of enthusiasts who are married

50%

21-35 year olds, %

60%

107



3. Conclusion




108

April - The BIGGEST Insomnia Event to date

Digital Services Launched

1st Insomnia event

1997 1999 2002 2015 2015

March - Joined GAME

Multiplay founded

Our history

109

EVENTS NETWORKS

INSOMNIA GAMING FESTIVAL

ESPORTS

BYOC

EXPO

YOUTUBERS

TRADITIONAL GAMES

CONTRACT EVENT MANAGEMENT

CONVENTIONS

EXPERIENTIAL

ROADSHOWS

EQUIPMENT HIRE

BRAND MANAGEMENT

CONSUMER SERVICES

GAMESERVERS

VOICE SERVERS

DEDICATEDS

COMMUNITY

ENTERPRISE

SERVICES

INFRASTRUCTURE

DEVELOPMENT

HOSTING

SaaS & CDN

MANAGED SERVICES

ESPORTS

PRODUCTION & BROADCAST

TOURNAMENT MANAGEMENT

TALENT SOURCING

PLATFORM SERVICES

CONSULTANCY

What we do

110

A large and growing attendee and online Insomnia gamer audience to engage with

A platform from which to launch new gaming events in the UK, Spain and internationally

Specialist eSports and gaming event management team, contracts and experience

Portfolio of digital services and Worldwide digital consumer base

20 years experienceReliability and agility–

proven track record

Media relationships with eSports casters and YouTube networks

Gaming technology infrastructure and digital team for supplier and gamer engagement

What we bring to GAME

111


CONVENTIONS

EXPERIENTIAL

ROADSHOWS

EQUIPMENT HIRE

BRAND MANAGEMENT

NETWORKS

CONSUMER SERVICES

GAMESERVERS

VOICE SERVERS

DEDICATEDS

COMMUNITY

ENTERPRISE

SERVICES

INFRASTRUCTURE

DEVELOPMENT

HOSTING

SaaS & CDN

MANAGED SERVICES

ESPORTS



TALENT SOURCING

PLATFORM SERVICES

CONSULTANCY

EVENTS


ESPORTS

BYOC

EXPO

YOUTUBERS

TRADITIONAL GAMES

What we do

112

The Glastonbury of Gaming

113

Insomnia 54 – April 2015

Video Coverage

Total unique Stream views: 272kTotal video plays: 495kMaximum concurrent views: 8kMinutes watched: 3.7m

YouTubers Exposure (Event Vlogs & promotion)

Views: 11m Total YouTuber Subs: 45m

eSports Tournaments

Total prize money: £25k Total Teams: 168Total players: 1300

Website

Total visits: 641kUnique visitors: 405kPage views: 1.6mFlickr views: 2.6m

114

Insomnia growth

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2012 2013 2014 2015 (p)

Annual Ticket Revenue

+56% CAGR

0

20,000

40,000

60,000

80,000

100,000

120,000

2011 2012 2013 2014 2015 (p)

Annual Footfall

+37% CAGR

115

Grow the Insomnia brand

Continue expansion in size and scope

Increase B2B spend

Increase share of consumer spend

eSports growth & streaming

YouTube / Twitch partnership

UK Expansion

International Expansion

Store Involvement

116


ESPORTS

BYOC

EXPO

YOUTUBERS

TRADITIONAL GAMES

NETWORKS

CONSUMER SERVICES

GAMESERVERS

VOICE SERVERS

DEDICATEDS

COMMUNITY

ENTERPRISE

SERVICES

INFRASTRUCTURE

DEVELOPMENT

HOSTING

SaaS & CDN

MANAGED SERVICES

ESPORTS



TALENT SOURCING

PLATFORM SERVICES

CONSULTANCY

EVENTS

What we do


CONVENTIONS

EXPERIENTIAL

ROADSHOWS

EQUIPMENT HIRE

BRAND MANAGEMENT

117

00

200,000

400,000

600,000

800,000

1,000,000

1,200,000

FY12 FY13 FY14 FY15 (p)

B2B Contract Event Revenue (Excluding Minecon)

ConventionsMineconRunefest

Activity DeliveryEGXGadget Show

Trade ShowsParadoxVersus EvilJagex

Press EventsWarnerParadoxPremier PRIndigo Pearl

eSportsCOD XPGiffgaffIPLWCG

RoadshowsInjustice EU WCG

Stage Production and Broadcast

Existing event services

+50% CAGR

118

Growing gaming events

LEVERAGE GAME’S SUPPLIER RELATIONSHIPS TO TAKE GAMING EVENTS FURTHER!

119


CONVENTIONS

EXPERIENTIAL

ROADSHOWS

EQUIPMENT HIRE

BRAND MANAGEMENT


ESPORTS

BYOC

EXPO

YOUTUBERS

TRADITIONAL GAMES

NETWORKS

CONSUMER SERVICES

GAMESERVERS

VOICE SERVERS

DEDICATEDS

COMMUNITY

ENTERPRISE

SERVICES

INFRASTRUCTURE

DEVELOPMENT

HOSTING

SaaS & CDN

MANAGED SERVICES

EVENTS

What we do

ESPORTS



TALENT SOURCING

PLATFORM SERVICES

CONSULTANCY

120

Founded in eSports, continues to be a cornerstone of our services.

Custom-built tournament systems for ladders, leagues and cups

Specialist eSports team to consult and deliver for clients

Extensive broadcast experience, including all necessary equipment and plans for a studio

eSports

121

DRIVING COMMUNITY ENGAGEMENT THROUGH

ESPORTS

Public Play

Casual Tournaments

Clan Tournaments

Semi-Pro

Pro

Deliver an increasing number of local eSports & gaming events

OTHERS

122

eSports – Monetisation through engagement

VIP programmes

All audiences - from casual

to pro

Crowd funding

Reward points for playing

Reward database and

insight

Complete yearly lifetime

customer value

Social community interaction

Targeted CRM, app push

etc…

47%are likely to purchase new

content after attending an event

38%are likely to buy goods or

services from a brand used or showcased

78%are likely to spend money on in-game content within a week of

attending an event

86%feel more enthusiasm for a

game after an event

LIFETIME VALUE

123

eSports – The Multiplay / GAME Advantage

WELL PLACED TO BE THE MARKET LEADER OF THE FUTURE ESPORTS MARKET!

A PROVEN SUSTAINABLE MODEL – NOW WITH ROCKET FUEL!

END TO END ENGAGEMENT OF THE COMPLETE PYRAMID

Venues

StoresInsomnia Cinemas

Online Destination

eSports platform

Expertise

20 years in eSports

Audience

Reward card holders

Multiplay database

Established Brands

Flagship events High Street brand

Broadcast

Build out Twitch & YouTube channels

124

PUBLISHER FUNDED

1.

CROWDFUNDING

2.

BROADCAST ADVERTISING / MEDIA RIGHTS

4.

TICKETING & SPONSORSHIP

3.

The eSports opportunity

125



3. Conclusion




126

INSOMNIA

EVENTS MANAGEMENT

GAMING SERVICES

CLANFORGE

COMMUNITY

STORES/WEB/APP

LOCK INS

CONSUMER EVENTS

MIDNIGHT LAUNCHES

COMMUNITY

OWNING THE GAMER’S

EXPERIENCE

INSIGHT

Building the most valuable community of gamers

CUSTOMER LIFETIME VALUE

127







128

Leveraging our digital solutions capability into new and existing markets

129

DELIVERING A CONNECTED EXPERIENCE

CORE OPERATIONAL BUSINESS DIGITAL SOLUTIONS : Enabling technology

CLANFORGESERVER HOSTING

DIGITAL CODE DISTRIBUTIONGAME E-WALLETSCAN IT

SERVICES

GAME Digital Solutions

Working in partnership with agile technology businesses

130

Developing an engagement platform

OWN THE GAMERS EXPERIENCE

GAME Servers

Matchmaking services

Forums

Lobby

Moderated Channels

Voice Servers

Tutorials

Self-help forums

Streamed content

YouTube shows

GAME.TV

eSports Tournements

From casual to pro

Online & offline

Community-generated content

Curated content

Reviews

GET HELPPLAY CHAT WATCH COMPETE READ

131

Hosting Services – Consumer

150+ games supported

10+ million players per month

28 points of presence across 5 continents

132

Drive digital growth – B2C Drive

US32%

GB31%

SE8%

AU5%

DE5%

NL4%

RU4%

CA3%

FR3%

Others5%

Leverage GAME user base

Website development and localisation: DE, FR and ES markets are huge

0

5000

10000

15000

20000

25000

30000

Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15

Active Consumer Services% B2C revenue by location

133

FY12 FY13 FY14 FY15 (p)

Enterprise Hosting Revenue

Hosting services – Enterprise

Worldwide game hosting NexonEA Bohemia Paradox Hi-Rez

Enterprise hosting IGN EutechnyxChucklefishRobocraftKSP

Design and build consultancy Telefonica EutechnyxIGNBohemia

Cloud integration in progressGoogle Compute Microsoft Azure

+116% CAGR

134

Drive digital growth – Fixing Publisher Hosting Pain

“Fix this problem and we could open two new studios with the money we would save”

Don’t guess, automatically scale using Clanforge® technology

Amazon and other cloud services simply do not work for most games. They are also expensive!

Microsoft Azure and Google Compute both interested in our technology and making it work on their platform. Azure has no tools for games!

135

136

Delivering a connected experience

EASE OF TRANSACTION

DISCOVERY

RELEVANT RANGE

CUSTOMER ENGAGEMENT

IN STORE

ONLINE ON THE MOVE

EVENTS

137

GAME Digital Solutions

Code DeliveryAt Till

Code Delivery By Email

Content Discovery

Interactive Customer Experience

QR Scanning At Till

Secure payment solution for digital

content

Curated Android App & Tablet Store

Integrates With Wallet And App

DIGITAL CODE DISTRIBUTION

SCAN IT! GAME WALLET GAME DROID

138

Digital code and fulfilment

Engaged with key partnersPUBLISHER/SUPPLIER

GAME CODEBANK

GAME DIGITAL SERVICES

END CONSUMER

STORES E-COM M-COM APP

CUSTOMER REWARDS CUSTOMER INSIGHT

WAYS TO PAY

GAME WALLET

TRADE IN

CASH

CREDIT / DEBIT

REWARD POINTS

20+ million codes sold

5,000+products in catalogue

139

Trade ins

Reward

Cash

Gift Card

WALLETTHE CURRENCY FOR GAMERS

In store

E-comm

M-comm

App

Multiplay events

GAME Droid

Partner platforms

GAME Wallet – a secure payment solution

Magic button

140

Integrated into all channels*

Over 500,000 Registered users

*Online in April 2015

Our GAME Wallet customer base

£27.7 millionCustomer total credit value (UK)

141

Our GAME Wallet offers a unique proposition

Trade inPay in store

Pay online

Full insight

Store in Wallet

NFC REWARD

142

PUBLISHING PARTNERS

NON-CONSOLECONTENT

PLATFORMS & PAYMENT GATEWAYS

MOBILE

BUILDING PARTNERSHIPSNEW GLOBAL PARTNERSHIP

Humble Bundles are a series of collections of digital games that are sold and distributed online at a price

determined by the purchaser.

Our GAME Wallet offers a unique proposition

143

World’s largest product augmented reality solution with over 2,500 products

A key engagement tool within the GAME app to promote brands and products

Over 750,000 scans to date – each scan tracked and feeding insight

LAUNCHED OCTOBER 2014

Scan It – Bringing content to life

144

Internal partnerships

External opportunities

Scan and Pay

New product ranges

3D scanning

Scan It theatre

FURTHER OPPORTUNITIES

Scan It – Bringing content to life

145

GAME’s innovation area to trial out new concepts

Focused on finding digital solutions for retail and improving customer experiences

Scan It Digital movies

GAME Tech Lab - our centre of innovation

PRODUCTS TO DATE IN PROGRESS

I-beacon in stores

Marketplace in store

In store personalisation

Digital signage

One Account

CodebankAppScan itDroidMarketplaceGame Wallet

146







147



Digital growth

Omni-channel journey

Go beyond retail


Grow number and size of Insomnia events

Tech development to enable business growth

Innovation to increase engagement and monetisation in core business

License existing IP to 3rd

parties

Stra

tegi

c Pi

llar

Bring more gaming events to gamers




Increase customer engagement

Digital Solutions

Priorities by Division

148

Understanding GAME

DRIVING CUSTOMER RECRUITMENT AND LIFETIME VALUE

The gaming market


Black Friday and Peak opportunity

Virtual Reality and Nintendo

eSports and events

Digital solutions

Global supplier engagement

Insight from Big data

149


Documents

BUILDING THE MOST VALUABLE COMMUNITY OF GAMERS/media/Files/G/Game-Corp/documents/results-reports...Virtual Reality £250m n/a eSports £400m +10-15% Driving Growth From a Number of