Games: Our Unique Approach to Drive Growth

Games: Our unique approach to drive growth

Alexandre Pelletier-Normand, Head of Games

Our unique approach to drive organic growth

02 • Diversified portfolio • User Acquisition • Genre mastery • Live operations

03 M&A enabling additional growth 04 Summary

Games Studios # of live # of games # of new Employees games 1) in Top 100 2) games in development

Note: 1) Games which have normal or lean live ops (e.g. events) 2) Top grossing games in the US on iPhone in Q3 2019 Source: Rovio, App Annie

Constantly growing Games business… …with diversified mobile game portfolio

Games revenue (EUR in million) Games revenue per game Q3 2019 (EUR in million)

1) 263 Q3 2019 grossing rank in the US Angry Birds #98 248 250 Dream Blast Launched: Jan-19 Catalogue

15% Grow 159 28%

111 114 95 83 €65.2M 51

5 57% 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2019 #68 LTM Angry Birds 2 Earn Launched: Jul-15

Note: 1) Top grossing games in the US on iPhone

Platforms

Angry Birds Categories & other IP’s and genres

Strategic choices

Business Audience Model

Geography

Platforms F2P mobile games Other platforms (in-house) (partners / licensing)

Angry Birds Categories Puzzle RPG Strategy & other IP’s and genres Other IP’s

Strategic choices

Adult audience focus F2P business model Business In-app In-game Audience Ads Model purchases subscription (IAPs)

Western market focus Geography

Business Marketing Intelligence & UA Team Team

Business 1. Puzzle 2. Battle Finance Development

Team Team Team Team TEAM TEAM ADS

M&A TEAM Team HR

IT 3. RPG Legal

Team Team Mobile gaming competition is getting tougher

Number of mobile gamers Players play only few Fewer games launching on mobile CPI increasing stabilizing in western market games

Number of mobile gamers in the US (in millions) Games submissions on Apple App Store Average CPI on iOS and Google (in thousands) Play (USD)1) 280 186 191 184 181 176 +17% 169 165 168 4,4 147 3,8 129 165 106 4 139 Average number of 81 mobile games average player plays per month

78 79

50 47 45 38 27 14 2 2011 12 13 14 15 16 17 18 19E 20E 21E 22E 2008 9 10 11 12 13 14 15 16 17 18Q3’19 Q3´17 - Q2´18 Q3´18 - Q2´19 LTM

Note: 1) Liftoff’s 2019 Mobile Gaming Apps Report based on 555 total apps, 81.8M installs and 1.6B clicks between June 2018 – May 2019 Source: App Annie, eMarketer, IDC, Liftoff, Newzoo, Pocket Gamer, Rovio

Market trends Way to win Rovio’s approach

n Diversified portfolio in Puzzle, RPG and Strategy games Diversified portfolio n Balanced total portfolio risk (genre, IP, audience, market novelty) Heavy reliance on User Acquisition n User acquisition (organic & paid) as part of the game Strong User Acquisition since early stages of development capabilities n Internal capabilities for paid and organic UA (e.g. Angry Birds)

n Genre mastery in Puzzle, RPG and Strategy games Genre mastery n Our organization optimized to reproduce success based on previous learnings Growth coming from consumer spend rather than downloads n Operational excellence and proven track record to build and operate games for years Strong live operations n In-house technology platform and AI & ML capabilities

Organic growth Inorganic growth

Diversified portfolio M&A

User Acquisition

Genre mastery

Live operations

Organic growth Inorganic growth

Diversified portfolio M&A

User Acquisition

Genre mastery

Live operations

Market trends Way to win Rovio’s approach

Michail Katkoff, Head of Battle Studio

Global games downloads Global games consumer spend Global games time spent

Global downloads on iOS and Google Play1) Global consumer spend on iOS and Google Play2) Global games time spent on Android phone3) (Billions) (USD in bn) (Hours in bn)

+15% +35% +55% 22 22 33 80 19 29 24 60 52

H1 2017 H1 2018 H1 2019 H1 2017 H1 2018 H1 2019 H1 2017 H1 2018 H1 2019

Note: 1) iOS only for China 2) iOS only for China 3) Exclusing China Source: App Annie

Amount of games has stabilized Fewer games launching on mobile

Number of Games in Apple App Store Games submissions on Apple App Store (in thousands) (in thousands) 280 800 819 750

F2P becomes 500 165 dominant 139

300 78 79 190 50 47 45 125 38 100 27 50 14 2

2010 2011 2012 2013 2014 2015 2016 2017 2018 2008 9 10 11 12 13 14 15 16 17 18 Q3’19 LTM

Source: Pocket Gamer

Number of Games that generated more than $25M in IAP revenue (US + key Western markets)

62 in 2016

65% 85 in 2018 Top 100 Grossing account of overall Games’ IAP revenue in the US 107 in Q1-Q3 2019 on iOS + Google Play

Source: App Annie, Rovio

55% 9months 28

of Games in US Top 50 is the average time it took for Games entered US Top 100 Games (iOS & GP) by new games to reach US Top 100 Games (iOS & GP) by consumer spend have been Games (iOS & GP) by consumer consumer spend between H2 there since January 2017. spend after launching globally. 2018 and H1 2019

Source: App Annie, Rovio

18 ROVIO © 2019 / CAPITAL MARKETS DAY 2019 …and Rovio is among Top 20 Publishers 19 Angry Birds 2 Angry Birds Dream Blast Companies that have more Global launch July 2015 Global launch January 2019 than one game in the US Top 200 Games (iOS & GP) by 52 Months in Top 100 US 5 Months in Top 100 US consumer spend 0 Months to reach Top 100 US 6 Months to reach Top 100 US

Note: Top 100 US refers to US Top 100 iPhone games by consumer spend Source: App Annie, Rovio

CASUAL MID-CORE CASINO SPORTS

• $7.4B in (IAP) net revenues • $9.2B in (IAP) net revenues • $2.5B in (IAP) net revenues • $0.9B in (IAP) net revenues • $1.9B in Ad Revenues • YoY Revenues +21% • YoY Revenues +17% • YoY Revenues +6% • YoY Revenues +24% • 46% of all IAP revenues • 12% of all IAP revenues • 5% of all IAP revenues • 37% of all IAP revenues • 23% of all installs • 2% of all installs • 12% of all installs • 63% of all installs

Source: App Annie

CASUAL MID-CORE CASINO SPORTS

Source: App Annie

22 ROVIO © 2019 / CAPITAL MARKETS DAY 2019 $0.1B $0.1B Idler Platformer -13% Other $0.5B +42% Puzzle +49% AR/ Hyper $0.1B Action Puzzle Location Casual $2.1B -5% Based ** +167% $0.7B +41% Arcade Word/ $0.6B $0.3B Trivia/ Puzzle +103% +47% Board $4.3B +19% Casual $0.03B Other Q3 2019 LTM Shoot ’em +26% Arcade Up $9.6B $0.3B $3.4B Match & Tycoon/ $0.6B +24% +277% +15% Blast Crafting +23%

Lifestyle $0.6B Simulation +5% $1.3B $0.4B $0.1B Sandbox +36% Customization +6% +19%

$0.3B Interactive +2% Adventures Music/ Story $0.04M Band $0.2B -32% +24% Breeding $0.1B Time $0.1B -12% Management +12% Note: net IAP revenue Source: App Annie

23 ROVIO © 2019 / CAPITAL MARKETS DAY 2019 $0.1B $0.1B Idler Platformer -13% Other $0.5B +42% Puzzle +49% AR/ Hyper $0.1B Action Puzzle Location Casual $2.1B -5% Based ** +167% $0.7B +41% Arcade Word/ $0.6B $0.3B Trivia/ Puzzle +103% +47% Board $4.3B +19% Casual $0.03B Other Q3 2019 LTM Shoot ’em +26% Arcade Up $9.6B $0.3B $3.4B Match & Tycoon/ $0.6B +24% +277% +15% Blast Crafting +23%

Lifestyle $0.6B Simulation +5% $1.3B $0.4B $0.1B Sandbox +36% Customization +6% +19%

$0.3B Interactive +2% Adventures Music/ Story $0.04M Band $0.2B -32% +24% Breeding $0.1B Two games own 70% or Time $0.1B -12% more of all revenues Management +12% Note: net IAP revenue Source: App Annie

Monthly revenue development of Puzzle Studio’s games 01/2015 – 09/2019

+110%

2015 2016 2017 2018 2019

CASUAL MID-CORE CASINO SPORTS

Source: App Annie

Survival Action Sync. RPG $0.4B Fighting Battlers -16% $1.0B $0.3B Build & MMO +13% -46% Battle $1.4B Turn- +15% Based RPG RPG $3.3B Puzzle $0.9B $2.8B 4X Strategy +6% RPG +35% +20% $4.5B +20%

$0.3B MOBA +360% Mid-Core Q3 2019 LTM $9.2B $0.1B +21% Tact. -2%

Action $0.1B Sniper Card $1.1B +19% Games +134% $0.2B -2%

FPS $0.1B -30%

Battle Royale $0.8B +436% Note: net IAP revenue Source: App Annie

Survival Action Sync. RPG $0.4B Fighting Battlers -16% $1.0B $0.3B Build & MMO +13% -46% Battle $1.4B Turn- +15% Based RPG RPG $3.3B Puzzle $0.9B $2.8B 4X Strategy +6% RPG +35% +20% $4.5B +20%

$0.3B MOBA +360% Mid-Core Q3 2019 LTM $9.2B $0.1B +21% Tact. -2%

Action $0.1B Sniper Card $1.1B +19% Games +134% $0.2B -2%

FPS $0.1B -30%

Two games own 70% or Battle more of all revenues Royale $0.8B +436% Note: net IAP revenue Source: App Annie

Survival Action Sync. RPG $0.4B Fighting Battlers -16% $1.0B $0.3B Build & MMO +13% -46% Battle $1.4B Turn- +15% Based RPG RPG $3.3B Puzzle $0.9B $2.8B 4X Strategy +6% RPG +35% +20% $4.5B +20%

$0.3B MOBA +360% Mid-Core Q3 2019 LTM $9.2B $0.1B +21% Tact. -2%

Action $0.1B Sniper Card $1.1B +19% Games +134% $0.2B -2%

FPS $0.1B Rovio focus -30%

Two games own 70% or Battle more of all revenues Royale $0.8B +436% Note: net IAP revenue Source: App Annie

$0.1B $0.2B rd $0.4B -24% RPG genre is 3 largest on mobile with +22% +6%

Survival Action plenty of potential for growth compared to RPG Fighting Asian market. MMO $0.3B -46%

$1.4B Turn- +15% Based RPG RPG $3.3B Puzzle $0.9B We have the experience. Our RPG games +6% RPG +35% Angry Birds Epic and Angry Birds Evolution have accumulated close to 100M installs to date.

Two games own 70% or more of all revenues

Note: net IAP revenue Source: App Annie

The 4X sub-genre is the second largest on

Sync. $0.4B mobile with a very rapid growth rate. Battlers -16% $1.0B +13% Build & Battle Strategy games are notoriously difficult to build due to technical complexity. This $2.8B 4X Strategy +20% $4.5B +20% creates an entry barrier for many developers.

$0.3B MOBA +360% We have the technical capabilities and the genre mastery through the acquisition of PlayRaven. Two games own 70% or more of all revenues

Note: net IAP revenue Source: App Annie

CASUAL MID-CORE Puzzle RPG Strategy

We will continue to expand our presence We will continue pushing into mid-core in the casual games, focusing mainly on taking calculated shots that leverage our the largest sub-category on mobile: learnings on RPG and Strategy games. Puzzle games

Live portfolio New games in development

Grow Earn Catalogue IP Angry Birds New IP

2 3 20+ In dev 4 5

In soft launch 1 2 Sugar Blast Angry Birds Angry Birds 2 Angry Birds Dream Blast Match

World Quest Small Town Angry Birds Angry Birds POP Murders Friends Blast Note: new games in development presents the situation and plan at end of Q3 2019 and is subject to change

Market trends Way to win Rovio’s approach

Alexandre Pelletier-Normand, Head of Games

Organic Paid

AB 97% brand Cross-promotion Designed for UA: Featuring Virality and User awareness capabilities centricity

Super-targeted: Other Mainly digital we aim to get the channels right users

• Aiming at 100% ROI level after 12 months

* Source

1 Changes in the UA market landscape

2 Capitalizing on punctual events (external or internal to the game)

3 Changes in the Life-Time-Value (LTV) of our games

4 New game launches

NIMBLE AGILE TECH SAVVY

Embedded within game With central director, All the most strategic teams allows for custom constantly pushing the knowledge is in-house: UA made strategies per game craft forward and team works closely with and fast learning deciding the spent where tech team to utilize AI/ML it is more profitable to optimize and automate where possible

Supported by BI and Tech teams

* Note: AI = artificial intelligence, ML = machine learning

LTV-model, which Analyzing what kind of Churn prediction in a player updates automatically video creatives perform level to find the optimum daily and adapt to recent well and testing also to time to start promoting more data of recent create new videos about our other games performance

Model updates target ROIs automatically daily using recent data.

Since some games monetize and retain longer, they require less payback early on.

Game 1 Game 2 Game 3 Game 4 Game 5

Payback journey of a cohort

We aim for 0% return over 12 months – after that everything is profit ROI (%)

Portfolio effect gives us 5-10% discount on CPIs UA investments and revenues (USD)

Months after install

Market trends Way to win Rovio’s approach

Tero Raij, Head of Puzzle Studio

Genre mastery How we have Game built genre examples mastery in Puzzle

FOCUS LEARNING ORGANIZED

Every new Clear genre game in Game studios focus on what specific genre organized by kind of game to be better genre to develop than the last one

2015 2016 2017 2018 2019

2015 2017 2019 § Angry Birds POP! § Angry Birds Blast § Angry Birds Dream Blast – a bubble shooter – our first tap-to-clear – internal game with fresh co-op with 3rd party game, co-op with 3rd physics based puzzle core § Fruit Nibblers party § Sugar Blast – our first internal § Angry Birds Match – leveraging the core from game, match-3 core – our second match-3 Dream Blast with new IP game

Monthly revenue development of Puzzle Studio’s games 01/2015 – 09/2019

+110%

2015 2016 2017 2018 2019

Repeated Success Growth and 1. 2. Predictability Independent Player game teams first side by side

3. Culture of togetherness – constant learning among teams

Mastering the We discover new We create rich player in-level experience level-based core gameplay fantasies through narrative

Great level content is Core gameplay is in the Strong theme enables extremely important - but heart of marketing mass differentiation from not enough alone. market game. competition.

MISSION

Claim physics based tap-to-clear puzzle mechanic to Rovio

No significant changes to the core or meta of Dream Blast

A very fast production: only 5 months to Global Launch

Age & Gender distribution

Younger audience 13-17 18-24 25-34 35-44 45-54 55-64 65+

Female Male

Age & Gender distribution

Older & more female audience 13-17 18-24 25-34 35-44 45-54 55-64 65+

Female Male

Source: Facebook Analytics (Oct 22, 2019)

MISSION:

Take ownership of a compelling theme - highly familiar to the audience - but new in match3

CORE PILLARS:

Appealing Great Theme of Match-3 Unique Look Solving Level & Feel Murder Content Mysteries

Why we can succeed Example projects in pipeline

n Our previous two RPG games (Angry Birds Epic and Angry Birds Evolution) have accumulated over 90M installs RPG

n Our Puzzle Studio has built expertise that can be World Quest: used to succeed in the Puzzle RPG sub-category RPG game

n Internal tech from Battle Bay, our internally developed MMO Battle game Battle

n Acquisition of PlayRaven – a team that has built PlayRaven: strategy games for over 6 years strategy game

Market trends Way to win Rovio’s approach

Miika Tams, Co-lead of Puzzle Studio

Senior game Market Game vision Focus Execution dev team opportunity

A good mix of Team identifies Team can Team starts Team is driven to juniors and the audience imagine what the building the GAME get the game to the seniors bring needs – and game will be. from the critical hands of their both the energy create the game pieces, in the target audience and experience. for that audience. Team makes sure correct order. that their vision is Team has the right Team sizes the right for the Team delivers with processes to opportunity and audience. high diligence. support their style the risks of working. involved.

Rovio’s cloud services for game teams (Beacon)

01 Live Ops, development, testing, QA tools Actionable real-life analytics through 02 player profiles, segmentation and targeting 03 AI & Machine Learning 04 UA tools and support 05 Monetization

Developed since 2011 with great time, effort and investments

Rovio experiments Machine Learning:

1. To identify market opportunities

2. To optimize UA and marketing

3. To personalize games for players

4. To understand the motives and behaviour of players

5. To develop & operate games

IN 2022 ROVIO HAS A GAME TAILOR MADE FOR INDIVIDUAL PLAYERS

Example Machine Learning use cases:

- Level balancing

- Generating new levels

Execution in LIVE GAMES

The ability to keep the game fresh The ability to develop new areas to and have top monetization with the spend and fundamentally change features you already have and user behavior to create baseline optimize new features to the shifts in revenue maximum

• Optimization • Fundamental Shifts in User Behavior • Events • Rethink Old Features • Offers • Add New Features • Short Development Time • Longer Development Time

Increases and sustains Creates baseline shifts revenue in revenue

6 1 2

Optimize on Identify Evaluate LiveOPS opportunities potential

5 4 3 Validate Develop Create Idea hypothesis MVP 1) & hypothesis

Growth enablers Reached Top 100 Grossing in 6 months

Dream Blast grossing position in the US Q1-Q3 20191)

Effective live operations 1.1.2019 2.1.2019 3.1.2019 4.1.2019 5.1.2019 6.1.2019 7.1.2019 8.1.2019 9.1.2019 01 0 02 Fast level production pace 100 200 Improved baseline retention 03 300 Average grossing rank Q3 2019 04 Ability to scale the game fast 400 500 #98 Strong mentality and process for 600 Angry Birds 05 testing Dream Blast Dream Blast

1) iPhone Top Grossing Games Source: App Annie, Rovio

Revenue development Q3 2015 – Q3 2019 Stella Released Hat Shop New Gacha Hal Repick Released Jet Pack Leonard 400+ 22 5% Hatchling Events Run Released AB Tests Run AB Tests Running at Development time Bubbles Released any given point spent on tests Hat Events Start Loyalty Mighty Eagle Restart Screen Program Bootcamp Room Tower of Fortune Clan Feats Clans Battle Gem Letter King Pig Arena Panic Win Streak Hats Arena Daily Challenge

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019

IAP revenue Ads revenue

Late game revenue Fun to spend The flow of the game

Improve the revenue Improve the conversion Improve the connection impact of being social and with new ways of making it between features in the competitive. fun to spend. game.

Make it clear what it means Example: in-game It should always be clear to be in a clan. subscription. for a player what to do next.

Organic growth Inorganic growth

Diversified portfolio M&A

User Acquisition

Genre mastery

Live operations

Timo Rahkonen, Head of Strategy & M&A

01 M&A market in mobile gaming 02 Rovio M&A strategy 03 Case PlayRaven

Fragmented market Trends supporting consolidation

• Difficult to reach top grossing charts – big companies like Rovio dominate

• Industry dynamics favor scale especially in > 900,000 marketing and UA investments Active mobile games in the • Rising development costs – AAA quality also in App Store mobile • New technologies and platforms emerging

• East-to-west, west-to-east has remained challenging

* Source: Pocket Gamer, Rovio

Number of mobile gaming studio deals (H1 2017-2019) Number of mobile gaming studio deals (H1 2017-2019) with value > €10M1)

20 18 17

H1 2017 H1 2018 H1 2019 H1 2017 H1 2018 H1 2019

Note: 1) Based on Pocket Gamer deal information and Rovio estimates Source: Pocket Gamer, Rovio

Mid-size F2P mobile Casual and Mid-Core Investment in Play gaming studios categories Ventures gaming fund

CASUAL MID-CORE

• Major financial impact • Target already has or has potential for Top 100 grossing game Main focus Mid-size F2P mobile • Mostly independent studios area next 12 gaming studios months • Rovio supports mainly in UA/growth investments • 100% ownership preferred Rovio

• Promising team Secondary • Add missing capabilities (”acqui-hiring”) focus area Small-size F2P mobile next 12 • gaming studios Expansion to new genre months • Requires support from Rovio (e.g. UA, BI, Live Ops, technology) • Majority deal preferred

• Games and game services companies with +€100M potential Goal to Play Early stage • Also targets beyond F2P mobile e.g. cross-platform invest in Ventures companies • Minority deals 20–25 companies • Additional deal candidates to Rovio in later stages

Screening > 100 companies / year Well defined investment criteria

• Pool of Focus on F2P mobile gaming candidates

• Long-term value creation potential

> 100 companies Screening, meetings • Good strategic fit

~ 50 companies Further evaluation • Justified price tag

Due diligence, • Good operational and cultural fit Few top targets negotiation

• Contribution to our financial targets (revenue and EBIT)

Deal closed

• Acquired by Rovio in November 2018 • Expansion to the 2nd largest mobile gaming genre: strategy games • Experienced strategy game developers • First strategy game planned to test launched in December 2019 • Building franchise of strategy games that utilize the same technology platform

01 02 03 04 05 06

Develop F2P Strengthen our Expand and build Grow existing top Launch New IP Strengthen our mobile games genre mastery in genre mastery in Angry Birds games to knowledge in for adult Puzzle (Casual) RPG and Strategy games and diversify AI/ML and audience with (Mid-Core) launch new portfolio apply this global appeal games knowledge to with main focus the Game in western value chain markets

* Disclaimer