Why is Mobile a $100 Billion Dollar Industry? April 12, 2013

Managing Director

Richard Lim

CEO

David Liu

General Manager

Amy Gu

Vice President

Junde Yu

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$.25 $1 $4 $9

$12

$25

Mobile Applications Revenue Set to Skyrocket

Mobile App Revenue (USD $Billions)

Source: Mary Meeker, Kleiner Perkins, and BI Intelligence estimates

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PC Sales Dropping While Smartphones Continue to Rise

269 295 304 347 356 352

124 157 174

305

494

713

0

100

200

300

400

500

600

700

800

2007 2008 2009 2010 2011 2012

PC Smartphone

Global Smart Device Annual Unit Shipments, 2007–2012

(Global Shipments in Million)

Source: IDC

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Largest Mobile Internet User Base Emerged in China China Internet and Mobile Internet Users Growth

(Million)

Source: CNNIC and Youmeng

298 384 457 513 564

118 233 303 356 420

-

200

400

600

800

2008 2009 2010 2011 2012 Internet Users Mobile Internet Users

Largest Smartphone Market

245M Smartphones in 2012 Active iOS & Android Devices, U.S. versus China (Millions)

85 Million

160 Million

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Apps Command 80% of Consumers’ Time

Source: Flurry Analytics, comScore, NetMarketShare

Time Spent on iOS & Android Connected Devices

Opera Mini, 2% Android Native, 4%

Safari, 12%

BROWSER 20%

APP 80%

Other Apps, 6%

Productivity, 2% News, 2%

Utility, 8%

Entertainment, 8%

Games, 32%

Social Networking, 24%

Other Browsers, 1%

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0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

App Downloads Ramped Fast Apple App Store Downloads,

2008–2013 (Cumulative Downloads in Million)

2008 2010 2012 2009

Source: Business Insider Intelligence

2011 2013

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Revenue Shifted from Ads to In-app Purchases

0.5 1 2 4

6 0.2 1

4

9

13

0

5

10

15

20

25

2008 2009 2010 2011 2012E

Ads Revenue App Revenue

Worldwide iOS & Android App Revenue by Source, 2008–2012

(USD $Billion)

Source: Mary Meeker, Kleiner Perkins, and BI Intelligence estimates

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Application Publisher

Puzzle & Dragons GungHo

윈드러너 for Kakao WeMade

다함께 차차차 for Kakao CJ E&M

Candy Crush Saga King.com

밀리언아서 Actoz

Games Dominated App Store Revenue

Source: Distimo

Top 5 Grossing Apps, (Globally Aggregated over 2013 March)

Application Publisher

Clash of Clans Supercell

Candy Crush Saga King.com

Hay Day Supercell

Kingdoms of Camoelot Kabam

Minecraft Mojang

Top 5 Grossing Apps, (Globally Aggregated over 2013 March)

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Publishers in China Challenged by Distribution Fragmentation

Mobile System Operator

• App Store

• Google Play

• Windows Phone

Handset Manufacturer

• Samsung Apps

• OVI (Nokia)

• Shop4Apps (Motorola)

• Hispace Store (Lenovo)

Telco

• Mobile Market (CM)

• 189store (Tianyi–CT)

• WO Store (CU)

3rd Party App Store

• QQ Apps Center

• Baidu Apps Center

• AnZhi, 91zs, Jifeng

• AppChina, HiMarket

APP

Richard Lim Managing Director and Co-Founder richard@gsrventures.com

Early Stage Venture Capital