Electronic Arts Annual Shareholder Meeting Presentation July 2011

8/6/2019 Electronic Arts Annual Shareholder Meeting Presentation July 2011

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Annual ShareholderMeeting

July 28, 2011


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Some statements set forth in this document, including the estimates relating to EAs fiscal year 2012 guidance information and fiscal year 2012

title slate contain forward-looking statements that are subject to change. Statements including words such as "anticipate", "believe", estimate

or "expect" and statements in the future tense are forward-looking statements. These forward-looking statements are preliminary estimates

and expectations based on current information and are subject to business and economic risks and uncertainties that could cause actual

events or actual future results to differ materially from the expectations set forth in the forward-looking statements. Some of the factors which

could cause the Companys results to differ materially from its expectations include the following: sales of the Companys titles; the Companys

ability to manage expenses; the competition in the interactive entertainment industry; the effectiveness of the Companys sales and marketing

programs; timely development and release of Electronic Arts products; the Companys ability to realize the anticipated benefits of acquisitions,

including the PopCap acquisition; the consumer demand for, and the availability of an adequate supply of console hardware units; the

Companys ability to predict consumer preferences among competing platforms; the Companys ability to service and support digital product

offerings; general economic conditions; and other factors described in the Companys Annual Report on Form 10-K for the fiscal year ended

March 31, 2011.

These forward-looking statements are valid as of July 28, 2011 only.

Electronic Arts assumes no obligation and does not intend to update these forward-looking statements. In addition, the preliminary financial

results set forth in this document are estimates based on information currently available to Electronic Arts. While Electronic Arts believes theseestimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its Quarterly Report on Form 10-Q

for the fiscal quarter ended June 30, 2011 and in future filings. Electronic Arts assumes no obligation and does not intend to update these

estimates prior to filing its Form 10-Q for the fiscal quarter ended June 30, 2011.

In addition, this presentation includes various third party estimates regarding the total available segment and other measures, which do not

necessarily reflect the view of Electronic Arts. Further, Electronic Arts does not guarantee the accuracy or reliability of any such information or

forecast.

Safe Harbor StatementPlease review our risk factors on Form 10-K filed with the SEC


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CEO Comments

Q&A

Agenda


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27.8 25.6 24.6 23.2 22.0

12.3 15.9 20.2 24.829.2

CY08 CY09 CY10 CY11E CY12E

Total

Digital

Packaged Goods

Interactive Entertainment

CAGR

20%

25%

CAGR

24%

-6%

6%

17%

14%

31%

Source: EA estimates.

($ B, Calendar Year basis, Worldwide)

40.1 41.5 44.848.0 51.2


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Fewer, Better, Bigger Franchises

Digital Leadership

Drive Efficiencies

EA Strategy through Fiscal 2011


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55

66

83

FY09 FY10 FY11

Average Net Non-GAAP

Packaged Goods Revenue

Per Title

* Metacritic scores are as of June 12, 2011 and average PC, Xbox 360, and PS3 only.

Strong PortfolioIncreasing Quality, Increasing Revenue

Rising Scores *

Madden NFL 08 80 Madden NFL 11 84

NHL 08 79 NHL 11 88

FIFA 08 80 FIFA 11 87

Mass Effect 90 Mass Effect 2 95Dragon Age 88 Dragon Age 2 81

Battlefield: Bad

Company 84

Battlefield: Bad

Company 2 88

Need For Speed

Undercover 63

Need For Speed Hot

Pursuit 88

Medal of HonorAirborne 75 Medal of Honor 74

Dead Space 88 Dead Space 2 89

($ M)

Games industrys richest product portfolio


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Battlefield Franchise

$84

Battlefield Franchise FY10-FY11

Total Non-GAAP Revenue

Packaged SoftwareDigital

BFBC2 Full

Game

Downloads

BFBC2 Extra

content

BF 1943

BF Heroes

Other

Digital Non-GAAP Revenue

($ M)


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#1 PCRetail

#1 Mobile &Apple &Reader

Top 3PDLC1 HDConsole

#1 Casual #2 Social

Top 3 PCDownloadStore

EA's Leading Market PositionWestern World

Leading WesternMMO & Browser

* *

* Acquisition of PopCap announced July 12, 2011. Expected to close in August, 2011.

*


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FY09 FY10 FY11

Non-GAAP Financial Highlights

Please see our Earnings Release, dated July 26, 2011, for important information regarding our use of non-GAAP measures,including a reconciliation to our GAAP financial measures.

$4.09B

EPS($0.30)

$0.44

$0.70

$3.82B

$4.16B

FY09 FY10 FY11

$3.3B$3.6B $3.6B


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Non-GAAP Digital Revenue

FY09 FY10 FY11 FY12E *

$1,125M

$833M$570M

$429M

* FY12 estimates reflect midpoint of revised combined guidance for EA and PopCap as of July 26, 2011


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Stock PerformanceCalendar Year to Date

145%

106%

90%

100%

110%

120%

130%

140%

150%

ERTS NASDAQ

EA outperforms NASDAQ by ~40%


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Building Key IPs into Year-round Businesses

Wholly-owned Franchise IP launches: Battlefield 3, NFS The Run,Mass Effect 3

Increasing share of high-growth, high-margin digital segments

Establish EA as a Platform

SWTOR on PC and The Sims Social on Facebook

Owned distribution through Origin; growth on Android

Investing in Our Creative and Engineering Talent

PopCap team, The Sims team, Battlefield team, FIFA team

Strategy Fiscal 2012 and Beyond


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Battlefield 3

Madden

FIFA

Need For Speed The Run

The Sims

Sims Social

PopCap integration / expansion

Origin

Star Wars

Major Initiatives for FY12


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A Connected, Direct-to-Consumer Gaming Platform

Industry-Leading

Content

Available

directly to

consumers

Anytime,

Anywhere

Commerce Community Social

AchievementsMessaging News

Challenges

*Acquisition of PopCap announced July 12, 2011. Expected to close in August, 2011.

*


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Strengthens EAs position in casual gaming

Accelerates EA toward a $1 billion digital business

Casual gaming is the industrys fastest growing segment

PopCap boasts five solid casual franchises Transaction expected to be at least $0.10 non-GAAP EPS accretive in FY13

PopCap: A Powerful StrategicCombination

PopCap accelerates EAs winning digital strategySource: EA estimates.


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($0.30)

$0.44

$0.70

FY09 FY10 FY11 FY12E

Non-GAAP EPS*

424 570833

1,125

FY09 FY10 FY11 FY12E

EA Non-GAAP Revenue*Distribution

Standard-Definition Packaged Goods

High-Definition Packaged GoodsDigital

$2.2B

$3.1B$2.7B

$3.5B

Continuing Positive Momentuminto Fiscal 2012

$0.70 - $0.90

* FY12 estimates reflect midpoint of revised combined guidance for EA and PopCap as of July 26, 2011. Deal expected to close August 2011. Assumes 80% of PopCaps FY 12 revenue is digital.


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Questions

Documents

Electronic Arts Annual Shareholder Meeting Presentation July 2011