Presentation by Will Cardwell and Tero Kuittinen at the residence of the Finnish Consulate in New York, January 16 2013.

1. FINLAND –
Europe’s Mobile App HOTHOUSE
Will Cardwell* Tero Kuittinen*
Aalto University Alekstra, BGR
*Idea’s here are ours and not necessarily our employers… January 16, 2013

2. Top Publishers by Monthly Revenue
Rank
Rank Publisher Category HQ Country # of Apps
Change
1 Supercell 1 Games FIN 2
2 Electronic Arts 1 Games USA 969
3 GREE 7 Games Japan 108
4 Rovio 8 Games FIN 24
5 Gameloft 1 Games France 260
6 Zynga 3 Games USA 58
7 Kabam 2 Games USA 5
8 Apple 3 Various USA 19
9 Storm8 2 Games USA 40
10 CyberAge 6 Games Japan 93
SOURCE: App Annie Index ™ December 2012, iOS only

3. Top Game Apps by Monthly Revenue
Rank HQ
Rnk Game Publisher Subcategory
Change Country
1 Clash of Clans - Supercell FIN Strategy
2 Hay Day 2 Supercell FIN Simulation
Electronic
3 The Simpsons™ 1 USA Simulation
Arts
4 Kingdoms of Camelot 1 Kabam USA Simulation
GungHo
5 Puzzle & Dragons 2 Japan Puzzle
Online
6 Slotomania 1 Playtika Israel Card
7 Angry Birds Star Wars new Rovio FIN Arcade
8 CSR Racing - NaturalMotion UK Racing
9 Poker by Zynga - Zynga USA Card
10 Angry Birds Star Wars HD new Rovio FIN Arcade
SOURCE: App Annie Index ™ December 2012 iOS Only

4. Tale of Two Start-ups
• Rovio’s 2012 revenue is expected to be about 4x 2011; up from $106
M in 2011, $7 M in 2010, $2 M in 2009
• Rovio’s monthly active user base has increased >10x to 260 M from
23 M in one year.
• Licensing and merchandizing probably more than 40% of Rovio’s
sales by end of 2012.
• Supercell was founded in 2010, and launched its first game in June
2012 and the second in August 2012; the two games were thought to
be grossing $30M per month in December 2012.
• Estimated 2012 revenue: $70+ M in 2012, up from nearly zero in
2011.
• Supercell’s 2 games are now outgrossing EA’s 969 games, and it has
been suggested by Accel Partners that Supercell is its fastest growing
company in history.

5. Mobile Games Underestimated ?
• December 2012: Twitter hit 200 M monthly users – and
Rovio hit 260 M monthly users. Twitter launched six years
ago; Angry Birds three years ago.
• Arbitron engagement survey: In July 2012, iPhone app
users spent 150 min on Twitter, 52 min on YouTube, 51
min on Ebay, 38 min on Gmail, – and 60 minutes on
Angry Birds.
• % of monthly users who also use an app weekly: Twitter
34%, YouTube 26%, Ebay 30%, Angry Birds 28%.
• Rovio is already a major influencer in the education
market – teaming with NASA and National Geographic.
• Can the converged expertise in Mobile and Gaming be
leveraged into other societally important verticals?

6. Rovio’s Evolution
• Many dismissed Angry Birds as a fad when it hit big in
Feb -10
• Jan 12, -13: AB Star Wars #1 paid app after 66 days in
Top 200; AB Space #4 after 287 days; Bad Piggies #7
after 109 days; Angry Birds #32 after 1,057 days; AB
Seasons #51 after 814 days
• Rovio is expanding its stable of characters like Disney
during the Thirties – gradually and within the same
universe
• Cannibalization of older games is minimal
• Cross-promotion of mobile games far more effective than
in other entertainment sectors

7. Supercell’s Overnight Success
• Clash of Clans debuted last August – it has been the #1
iPad app in revenue generation in USA on most days
since Sep 15.
• For most of this January, Clash of Clans and Hay Day
have been the two highest grossing iPad apps in America.
• Both Clash of Clans and Hay Day were outside Top 50 in
downloads when they became Top 3 highest grossing
apps.
• Both games hit top on iPad first – then became Top 3
iPhone revenue generators a few weeks later. This
reverses the old pattern of iOS blockbusters.
• Supercell has probably less than 2% of Rovio’s download
base; but it now makes more revenue per month directly
from games.

8. Rovio and Supercell –
Radically Different Revenue Strategies
• Both Rovio and Supercell have unusual customer loyalty, but
Supercell turns a smaller group of players into rabid fans
• Clash of Clans has an exceptional average play frequency; 12
times a day
• Rovio has topped 1 Billion downloads, while Supercell gets a
smaller group of fans to pay continuously for in-app features.
• It is likely that Rovio will got more than 50% of its sales from
licensing fees during 2012, and up to 70% in 2013, as they
leverage a massive base of casual fans into retail success.
• Rovio moving quickly into new verticals. They are already
ubiquitous in retail, significant in education: what about health
care, environment and others? Where can the brand be used to
generate engagement?

9. New Depth
• iPad apps now generating roughly 50% as much revenue
as iPhone apps according to several game developers;
Finnish companies have had a special focus on iPad
software thus far, but hitting new platforms now
• In January 2012, only Rovio had entries in the US iPad
Top Ten game charts
• In January 2013, seven Finnish titles by four houses hit
the iPad Top Ten game chart in America
• Rovio, Supercell, Fingersoft, Boomlagoon
• Fingersoft is a team of just 3 people; Boomlagoon created
by 3 former Rovio employees

10. The Next Generation
• Fingersoft’s ”Hill Climb Racing” became #1 iPhone app on
Nov 17
• Boomlagoon’s ”Noble Nutlings” hit the US iPad Top 5
chart just three days after it debuted on January 8.
• New Finnish app firms are getting an infusion of graphics,
marketing and in-app purchase revenue optimization
expertise from older firms.
• Boomlagoon benefiting from a burst of publicity due to
Rovio. Fingersoft built an Android audience of 40 M
downloaders, which created built-in iOS demand.
• They will not be the last…

11. Why Finland, and Will it Continue?
• Core drivers born from open source, telecom, and demo scenes
perculating during the 80s and 90s; and produced huge impact thru
Nokia, Linux, MySQL, IRC and others.
• Finland caught mobile game fever in 2001, when 5-6 start-up companies
received solid VC backing – the second wave then broke through
globally in 2010-2012.
• Remedy Entertainment had a massive global console hit with Max
Payne in 2001, pulling in a lot of talent into game development.
• Nokia had an ambitious mobile gaming program in 2001-2007, paying
outside contractors to create content for Ngage and Symbian platforms.
• Finland is small enough for talent and ideas to quickly spread from one
company to another – key talent from Rovio to Supercell to Boomlagoon
to Remedy all know each other.
• New talent rolling in from Russia and Baltics.

12. OPPORTUNITY FOR
U.S. CORPORATE AND
VC INVESTORS
… Still a chance to be an early mover, but the
pioneers are mostly in already

13. International VCs relatively significant…
Annual Comparison 2010-2012
120 € 80
Millions
70
100 €
60
80 € Angel
50
International
60 € Domestic 40
#
30
40 €
20
20 €
10
0€ 0
2010 2011 2012
International VC Zone estimates

14. … but little into mobile so far
Investment by Industry 2012
Proportional Value of
Investments 50 35
100%
Millions
45
90% 30
40
€
80% 35 25
#
70% Software 30
20
Nano 25
60%
Mobile 15
20
50%
Life Sciences 15 10
40% Industrial 10
Hardware 5
30% 5
Cleantech 0 0
20%
10%
0%
2010 2011 2012
International VC Zone estimates

15. Foreign Corporations Getting Active
• Microsoft, Intel, Samsung, Huawei, Electronic Arts most
significant announcements so far, but MANY more are
looking closely.
• Case: AppCampus shows how University and
Corporates can work together to catalyze a market

16. AppCampus Overview
• A three year project,
based at Aalto
university
• Funded with 21M€ by
Microsoft, Nokia and
Aalto University.
• A new kind of accelerator for
next generation of mobile
experience
16

17. So, Why Now?
THEN… … NOW
• Nokia was dominant in • Now the talent is
attracting talent. interested in start-ups
• University graduates were • MAJOR movement led by
not entrepreneurial, little Aalto University of best
foreign talent graduates to startup scene
• Dilution-free state R&D • New tools combined with
funding led to ”business- market situation creating
lazy” talent new sense of urgency
• Very few R&D/ Design • Global titans moving in.
centers for global Huawei, Intel, Samsung,
companies EA, others following.

18. One Last Important Signal…
$125 US Embassy Innovation Center shows
strong US commitment to Finland

19. Big Thanks to
Ambassador Jukka Pietikäinen
and his team at the Consulate of Finland in New York
for the opportunity to share with you!
Will Cardwell* Tero Kuittinen*
Aalto University Alekstra, BGR
Will.cardwell@aalto.fi teromail@gmail.com
*Idea’s here are ours and not necessarily our employers…