Avista
Video Game Briefing Partners
Highlights:
• Market Cap for all public companies in global game sector is $101.7 billion; a rise of 10% since the November Newsletter
• Over $1.5 billion of M&A deals in global sector (LTM)
• Over $1.6 billion raised in global sector (LTM)
• Weighted average share prices were up 5% in the last month using the median for PC/Console Game companies
• Weighted average share prices were up 8% in the last month using the median for Online Game companies
Game Index Performance by sub-sector (LTM)
The Online Games Index is the best performing game sector index at -38%
120.0
Indexes low point
110.0
11/20/08
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
12/18/07 1/18/08 2/18/08 3/18/08 4/18/08 5/18/08 6/18/08 7/18/08 8/18/08 9/18/08 10/18/08 11/18/08 12/18/08
Game Retailers Index Online Game Index Mobile Game Index PC/Console Game Index Game Distributor/Accessory Index S&P 500 Index
Note: the companies making up each index are those listed in the corresponding comps in the following pages. The indexes are based on a weighted market cap and are rebased to 100 at the start.
December 2008 Source: Capital IQ, Company Filings, Brokers & Press 1
Avista
Video Game Briefing Partners
Game Index Performance by region (LTM)
The Asia Game Index is the best performing regional game index at -26%
Indexes low point
120.0
11/20/08
110.0
100.0
90.0
80.0
70.0
60.0
50.0
40.0
12/18/07 1/18/08 2/18/08 3/18/08 4/18/08 5/18/08 6/18/08 7/18/08 8/18/08 9/18/08 10/18/08 11/18/08 12/18/08
Asia Game Index North America Game Index Europe Game index S&P 500 Index
December 2008 Source: Capital IQ, Company Filings, Brokers & Press 2
Avista
Video Game Briefing Partners
Stock Comps (by sector & ranked by enterprise value):
Stock Price
(local Price as % Price as Enterprise
EV/Revenue EV/EBITDA P/E Share price movement(1)
currency) of LTM % of LTM Market Cap Value
(12/19/08) High Low (USDm) (USDm) CY 2007 CY 2008 CY 2009 CY 2010 CY 2007 CY 2008 CY 2009 CY 2010 CY 2007 CY 2008 CY 2009 CY 2010 L1M L3M L6M LTM
PC/Console Game Publishers/ Developers
Nintendo Co. Ltd. 34,450.00 51.1% 159.5% 49,266.8 36,245.4 2.06x 1.66x 1.67x 1.81x 7.0x 5.5x 5.1x 5.0x 14.6x 18.5x 12.3x 12.3x 21% -38% -49% -56%
Activision Blizzard, Inc. 9.23 47.9% 102.7% 12,224.1 9,288.1 2.29x 2.21x 1.84x 1.73x 16.6x 88.5x 9.1x NA 20.1x 17.8x 13.8x NA 11% -30% NA NA
Konami Corp. 2,145.00 48.6% 159.2% 3,297.2 3,153.4 0.95x 0.86x 0.86x 0.86x 6.1x 5.9x 4.7x 4.6x 15.1x 12.2x 11.8x 11.7x 49% -35% -43% -36%
Electronic Arts Inc. 16.76 27.8% 108.1% 5,378.0 2,913.0 0.92x 0.64x 0.60x 0.51x NM 6.9x 4.3x 3.4x NM 32.2x 14.6x 7.7x -16% -61% -61% -65%
Square Enix Holdings Co., Ltd. 2,735.00 71.2% 149.1% 3,526.1 2,714.0 1.57x 1.73x 1.39x 1.34x 7.2x 9.5x 5.7x 5.2x 26.3x 21.0x 17.2x 15.3x 30% -23% -11% -23%
Sega Sammy Holdings Inc. 981.00 66.4% 170.3% 2,763.7 2,305.2 0.44x 0.47x 0.44x 0.44x 5.1x 4.1x 3.9x 3.3x NM NM 25.4x 17.2x 48% -15% -10% -36%
UBI Soft Entertainment SA 12.10 33.8% 102.5% 1,621.2 1,518.2 1.02x 1.03x 0.90x 0.84x 3.1x 3.3x 3.0x 2.7x 13.4x 12.1x 10.5x 9.8x -12% -43% -44% -42%
Namco Bandai Holdings Inc. 913.00 48.2% 118.4% 2,514.7 1,420.2 0.27x 0.29x 0.28x 0.28x 2.0x 2.2x 2.5x 2.4x 12.2x 13.0x 14.6x 12.4x 12% -28% -29% -49%
Capcom Co. Ltd. 1,949.00 53.5% 132.1% 1,345.5 1,181.6 1.37x 1.36x 1.04x 1.00x 8.7x 5.9x 4.8x 4.4x 24.8x 14.2x 12.1x 11.1x 8% -41% -45% -38%
Koei Co. Ltd. 903.00 41.6% 105.7% 692.4 596.1 1.68x 1.81x 1.60x 1.55x 6.2x 7.2x 6.5x 6.6x 8.4x 10.7x 9.7x 9.5x 19% -33% -30% -53%
Take-Two Interactive Software Inc. 8.91 31.9% 103.0% 692.3 353.6 0.37x 0.22x 0.25x 0.22x 8.9x 1.4x 2.4x 1.8x NM 3.3x 6.6x 5.0x 11% -52% -55% -25%
Soft-World International Corp. 86.80 70.3% 152.3% 331.5 223.3 1.36x 1.25x 1.11x 1.02x 4.8x 20.0x 16.1x 13.2x 12.2x 10.1x 8.1x 7.3x 17% -14% -29% -13%
Midway Games Inc. 0.19 4.5% 118.8% 17.5 202.9 1.29x 0.98x 0.85x NA NM NM NM NA NM NM NM NA -27% -83% -83% -83%
Infogrames Entertainment SA 3.71 21.8% 101.4% 148.0 162.2 0.37x 0.36x 0.33x 0.31x NA 1.7x 1.7x NA NA NM NM 9.9x -9% -54% -49% -49%
THQ Inc. 4.51 15.1% 137.1% 302.4 143.3 0.14x 0.17x 0.14x 0.14x 0.7x NM 2.2x 2.2x 94.5x NM 17.2x 7.4x -33% -69% -77% -81%
Tecmo Ltd. 766.00 50.8% 142.4% 207.8 95.6 0.71x 0.69x 0.61x 0.57x 3.9x NA NA NA 18.9x 72.2x 16.1x 14.1x 36% 26% -20% -43%
D3 Inc. 42,050.00 14.9% 105.1% 9.9 58.1 0.43x 0.35x NA NA 7.2x NA NA NA 74.0x NA NA NA -12% -56% -77% -80%
Jowood Productions Software AG 8.60 55.5% 129.9% 33.8 44.5 1.44x NA NA NA 9.7x NA NA NA 1.2x NA NA NA 10% -34% -45% -50%
Eidos plc 0.21 10.2% 129.7% 83.0 43.7 0.20x 0.17x 0.15x 0.13x NM NM 1.5x 0.5x NM NM NM NM -8% -40% -62% -92%
Mindscape SAS 9.80 55.2% 99.0% 40.1 42.2 0.72x 0.56x 0.43x 0.35x 6.0x 3.3x 2.3x 1.6x 15.2x 6.9x 5.0x 3.8x 12% -23% -30% NA
SouthPeak Interactive Corp. 1.05 35.0% 100.0% 37.8 40.5 1.39x NA NA NA 12.4x NA NA NA 1.9x NA NA NA 0% -13% NA NA
Yuke's Co., Ltd. 351.00 62.7% 199.4% 42.4 38.4 0.58x 0.59x NA NA 2.1x NA NA NA 4.7x 7.2x NA NA 14% -2% -39% -42%
Playlogic Entertainment Inc. 0.60 40.0% 500.0% 27.8 32.4 3.21x NA NA NA 23.3x NA NA NA 23.7x NA NA NA -49% -71% -85% -77%
City Interactive sp. z o.o. 7.40 70.5% 106.5% 32.4 29.3 4.59x NA NA NA 13.3x NA NA NA 27.4x NA NA NA -5% -14% -22% -25%
Tose Co. Ltd. 571.00 51.1% 107.7% 48.9 26.3 0.40x 0.38x 0.35x NA 2.8x 2.4x NA NA 12.7x 11.2x 9.4x NA 8% -22% -34% -47%
Softstar Entertainment Inc. 15.65 77.9% 187.9%