three blue dots an investment proposal!!!

Yorgos Ntovas January 2013Yorgos Ntovas January 2013

Feasibility Proposal & Study by Yorgos Ntovas January 2013 2

Agenda

1. Mission Statement

2. The Team

3. Market Summary

4. Analysis – Market Data

5. Business Model

6. Initial Target Market

7. Investment

8. Exploitation

9. Goals and Objectives

10. Conclusions


Mission Statement

• Creating a network of associated companies, which will

develop, distribute and exploit Online (based on the Internet)

Casual Social Games, using the Business Model of Freemium

(Free - Premium)

• Freemium is a business model, the use of which is a product or

a service (usually a digital offering, such as software, media,

games or services web) is free, but there is a charge for

advanced characteristics, functionality or virtual goods. The

word "freemium" combines the two sides of the business

model: "free" and "premium"

• These games will be handled and used through the Internet,

either through the browser (Browser) or through Social Media

(Facebook, Google+)


The Team

• Yorgos Ntovas• Founder, Director of Development & Operations

• More Information on LinkedIn Profile

(http://gr.linkedin.com/in/yorgosntovas/)

• Yorgos Ntovas has 32 + years of experience in Information

Technology Sector, with specialization in Applied Analysis and

Development, Design and Installation of Computer Systems, Team

Development, Organization and Management, Consulting &

Advisory Services etc.

• He has founded, developed and managed many of companies in

the private sector. He has also served as General Director,

Technical Director, Development Manager, Business Technology

Consultant, Project Manager etc.

• He studied Electronics, Computer Science, Automated Control

Systems etc.

• He is a member of the International Game Developers Association

(IGDA) and Facebook Applications Developer

• The original development team will be selected carefully and will

consist of System Engineer’s, Game Developer's, Graphics

Designer's, Social Media Specialist's

http://gr.linkedin.com/in/yorgosntovas/


Market Summary

• Only the market of Social Network Games (i.e. games

played through social networks like Facebook) is estimated

for the year 2012 in the amount of 7 billion USD.

Estimation of Lazard Capital is that in 2015 the market will

reach 10 billion USD. To these should be added, another

4.5 billion USD of income, outside of Social Gaming

Network

• Overall, the Online Gaming Market is estimated that, for

the year 2012 amounted to 11.5 billion USD approx.

• This does not include revenues from Gambling (Online

Casino etc.) and by subscription type games like World of

Warcraft


Market Summary

Sources: Lazard Capital, Casual Games Association Social Gaming Report 2012


Analysis – Market Data

• The market for online gaming is a relatively new market.

Especially for Social Network Games Market, the fact that a few

years ago did not exist and today generates billions of dollars

income shows the dynamics of this market. The games on social

networks are experiencing exponential growth, which is expected

to continue until 2015 at least. Exemplifies the leading Social

Network Game Company, Zynga (founded just in 2008)

announced an increase of 37%, of the Monthly Active Users

(MAU) in the third quarter of 2012 compared with the third

quarter of 2011. Zynga has 240 million Monthly Active Users in

175 countries. From 2009 to 2011 its revenue grew from $121.5

million to $1.14 billion. (Zynga 2011 Annual Report)

• For the next 2-3 years is expected an average market growth of

around 20%



Sources: Casual Games Association Freemium Gaming Metrics 2012, SocialBakers, Games.com, Bitfold



• Facebook is the top Social Media Network

• Has more than 1 billion Monthly Active Users

(10/2012)

• 604 Million Monthly Active Users on mobile phones

(09/2012)

• 584 Million Daily Active Users (10/2012)

• 81% of them outside U.S. and Canada

• 55% of users play social games daily

• 53% of users have played at least one social game

• 19% of users say addicted to social games

• 12% of all social games are played on mobile



• Of the users play social games:

• 1% - 5% is the ones who buy virtual goods

• 50% spend from 1 € to 5 € per month and

accounted for 10% of revenues of the Game






Business Model

• For better organization, distribution, operation and exploitation,

we will develop a network of associated companies

• Initially there are two independent companies

• A Development Company and an Exploitation Company

• The Exploitation Company, which will have the rights of the

Applications will be installed in an area which is ideal for this

purpose. The area should provide a favorable tax and legal

system, political stability and strong banking system. The

Exploitation Company will out-source the development of

applications (web, social games) to the Development Company.

The Exploitation Company will own the rights of the

applications, that will developed on its behalf


Business Model

• The Development Company will be installed in Greece,

Athens area, and will take on behalf of the Exploitation

Company the Development of the Applications

• Greece is ideal for such business activities. Has available,

specialized, well-trained HR, low wages (compared to the

rest of Europe and America), ideal climate, good

telecommunications infrastructure. The Development

Company will have installed all the necessary equipment

and infrastructure (Hardware, Test Lab, Software,

Telecommunications High Speed Connections)


Business Model

• Development will use the most modern methods and

development environments for web applications like,

Adobe Flash, Php, Javascript, Flare3D etc. Aesthetically will

be used the new generation of three-dimensional

animated graphics, which are used in top games such as

Farmville 2, Cityville 2 etc.

• The applications will be hosted and served in Secure, High

Availability Data Centers in England and Germany


Initial Target Market

• Initial Target Market is the 5 biggest countries in Europe. This

is to make more efficient the initial targeting and quickly

become the desired results with the best Cost-to-Income ratio

• Europe is the third power over the Internet penetration rate in

the total population, after North America and Australia. (North

America 78.6%, Australia 67.6%, Europe 63.2%. (06/2012))

• In Europe there are 518,512,109 users of the Internet.

Facebook users are 250,934,000 respectively. (06/2012)

• Our initial target market is 193,668,000 Internet users and

127,413,160 users on Facebook. (06/2012)

• Using a carefully designed plan of promotion through

Facebook, Google, etc., the primary goal is 480,000 Monthly

Active Users

• Sources: Internet World Stats, SocialBakers


Investment

• The initial investment will be implemented in two stages

1. Stage of Initial Installation

2. The stage of Implementation and Development of the first web

application

• The estimated costs are as follows:

• It will be taken care provision for temporary working capital,

which will be consumed in an emergency. This working capital

provides that it should be in the range of 140,000 € (Maximum)

• The Comprehensive Safe Investment is forecasted to be around

404,000 €

Operating Period Duration ExpensesInitial Installation 3 Months 94,300 €Implementation and Development 9 Months 169,800 €Total 12 Months 264,100 €


Exploitation

• A Freemium game generates income from:

1. Virtual Goods

2. Advertisement

3. Offers

• Considering all the above, behavioral studies of users,

existing market statistics of Internet and Web Social Games,

projected operating results and return on investment are as

follows:

• (Have been calculated on the basis of forecasts for the First

Exploitation Year and that's because in a market that is

evolving rapidly and with great pace, the longest forecast is

not safe)


Exploitation

• Detailed analyses of the Initial Installation Investment,

Implementation Time plan, Budget Forecast are available

upon request

• The calculations were based on business models, and

market data analysis. The most important of them have

been discussed in previous chapters

Operating Period Amount IRR

Initial Installation Investment 264,100 €

Additional Working Capital 140,000 €

1st Exploitation Year Expenses 360,600 €

1st Exploitation Year Net Income (Worst Case) 609,239 € 52%

1st Exploitation Year Net Income (Best Case) 10,792,546 € 3,987%


Goals and Objectives

• The First Exploitation Year refers to the initial development

of the first "pilot" Application of Social Web Game

• During this period and in accordance with the progress of

the application will draw valuable conclusions about the

behavior of the markets and the public (Users)

• These will help us to determine the strategy and tactics for

the development and expansion of our companies

• Initially it appears that the objective of developing at least

two online social games a year, it is perfectly feasible.

With proper organization and staffing could this number be

increased


Goals and Objectives

• We should also consider the possibility of developing

applications for "smart" mobile phones. (Smart Phones).

This particular market is one of the most emerging and

highly dynamic

• Regarding the target market could in Second Period of

Exploitation & Development, being the whole of Europe,

later North America and Australia

• These of course require appropriate "Aggressive" Plans,

Projections and Marketing


Conclusions

• The Internet Market and especially Social Media Gaming

Market is a dynamic marketplace and experiencing

exponential growth. This growth is expected to continue

for years to come

• Internet penetration in the population is large. (63.2% in

Europe, 78.6% in North America)

• Also great is the penetration of Social Media Networks. In

this top is Facebook. (48% in Europe, 54% in North

America)

• The investment is low size, low risk, with a particularly

high IRR (Internal Rate of Return). In the worst case, the

IRR is 52% and 3,987% in the best


Conclusions

• Of course the whole thing is very specific and difficult to

implement, but guarantee to the proper Implementation,

Operation and Evolution, is the involvement of its full

employment of Yorgos Ntovas, who has 32 + years of

experience in Information Technology, with specialization

in Applied Analysis and Development, Team Development,

Organization and Management, etc.

• In case of interest is at your disposal Informational

Material, Analysis, E-Market surveys etc.


Contact

• In case of interest, please contact:

• Yorgos Ntovas

• Enterprise Technology

• Consultant

• Tel.: +30 211 7004551

• Fax: +30 211 7408152

• Mob: +30 6973 661664

• e-Mail: [email protected]

• e-Mail: [email protected]

• Web: www.threebluedots.gr

mailto:[email protected]

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http://www.threebluedots.gr/