Electronic Arts Inc. · NASDAQ:EA
Electronic Arts — Merger or Acquisition (July 2011)
15 slides from Electronic Arts's merger presentation, Jul 12, 2011
Slide 1: Electronic Arts Inc. Acquisition Announcement
Exhibit 99.2 Electronic Arts Inc. Acquisition Announcement th July 12 , 2011
Slide 2: Safe Harbor Statement
Safe Harbor Statement Some statements set forth in this presentation regarding EA’s acquisition of PopCap and the expected impact of the acquisition on EA’s strategic and operational plans, contain forward-looking statements that are subject to change. These forward-looking statements are subject to
Slide 3: Summary
Summary PopCap strengthens EA’s position as a leader in casual gaming and accelerates EA toward a $1 billion digital business Casual gaming is the industry’s fastest growing segment PopCap is a leader on the fastest growing digital gaming platforms, with five very strong casual IPs Acquisition price
Slide 4: PopCap At A Glance
PopCap At A Glance Overview of PopCap Franchise revenue has continued to grow over time Founded in 2000. Headquartered in Seattle, WA ~475 employees Award-winning and durable IP 80% of PopCap revenue is digital IP has been strong for many years Games Well Suited to Emerging Platforms Years in # of F
Slide 5: PopCap Strategic Overview
PopCap Strategic Overview Long-term game sector growth PopCap maps well to the digital is led by digital opportunity Smartphones, smartpads/tablet, 80% of revenue in CY2010 was social, PC, IPTV are key platforms digital; > 40% revenue growth rate in March 2011 quarter IP expected to gain more distri
Slide 6: Financial Summary of Transaction
Financial Summary of Transaction Deal is expected to be non-GAAP EPS neutral in FY12 and highly accretive in FY13: EPS Impact FY2012 FY2013 Non-GAAP ~$0.00 ~$0.10 GAAP ~$0.00 ~ ($0.10) Up-front $650 M cash, $100 M EA stock, with potential of up to $550 M earn-out Up to $50 M in long-term equity rete
Slide 7: Worldwide Industry Growth Segments
Worldwide Industry Growth Segments 25 PopCap enhances EA’s position in one Core Packaged of gaming’s most 20 important segments 15 MMO Casual/Social/ Subs + Full Game Downloads Mobile/Tablet/ 10 Browser/Free-to-Play 5 Core Packaged - Related Digital - -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% CY09 – C
Slide 8: Sector Analysis – Game Market
Sector Analysis – Game Market Worldwide Video Game Market Size Estimates by Platform (in $ billions) Mobile & Social growth outpacing other video game sectors 7
Slide 9: Sector Analysis – Mobile/Social
Sector Analysis – Mobile/Social Casual games are driving platform growth on smart phones and social network sites 8
Slide 10: PopCap Maps Well to New Platform Opportunities
PopCap Maps Well to New Platform Opportunities Top Grossing iOS Games for 2010 Top PC Retail Game Publishers for 2010 iTunes Rewind 2010 NPD PC Games $000s # iPhone Game Publisher # Publisher 2008 2009 2010 1 Angry Birds Electronic Arts 1 Activision Blizzard $165,467 $118,905 $279,616 2 Call of Duty
Slide 11: Success on Facebook – Winning Combination
Success on Facebook – Winning Combination DAUs in MMs (Q2 CY11) 1. PopCap has the highest player Rank Developer DAUs engagement of any Top 5 Facebook Game Publisher at 25% 1 Zynga 53.6 (DAU/MAU) 2 EA + PopCap 10.0 3 Wooga 4.5 2. PopCap has achieved Top 5 success through only two 4 Playdom 3.7 evergr
Slide 12: PopCap Further Accelerates EA’s Digital Growth
PopCap Further Accelerates EA’s Digital Growth Pro Forma Non-GAAP Digital Net Revenue Annualized * Pro Forma $1,068 M Q4 FY11* Pro Forma PopCap - Console PopCap - PC PopCap - Mobile EA - Total Digital $267 M Q4 FY11 Full Year Pro Forma EA & PopCap deliver a >$1 billion digital non-GAAP revenue run r
Slide 13: EA Financial Update
1 EA Financial Update Revenue Guidance Update: FY12 Non-GAAP Revenue FY12 GAAP Revenue Low End High End Low End High End Guidance ($ Millions) Guidance ($ Millions) Reaffirmed EA Standalone $3,750 $3,950 Reaffirmed EA Standalone $3,700 $3,900 PopCap Partial Year PopCap Partial Year $50 $75 $25 $50 C
Slide 14: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation In its press release dated July 12, 2011 announcing the PopCap acquisition, Electronic Arts has providedits preliminary estimates for the first quarter of fiscal 2012 and business outlook for the second quarter of fiscal 2012 and the full fiscal year 2012. The followi
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement the Company’s unaudited condensed consolidated financial statements presented in accordance with GAAP, Electronic Arts uses certain non-GAAP measures of financial performance. The presentation of these non-GAAP financial measures is not intended to be consid