[Business Plan] PT Artoncode Indonesia May 2016

BUSINESS PLAN2016

HELLO!

I am Indra GunawanYou can find me at [email protected]

Our greatest glory is not in never falling, but in rising every time we fall

- Confucius

Q2.2012Faunia Rancher Released

Q4.2012Artoncode Established

Q3.2012Faunia Rancher Win INAICTA

Q1.2013Faunia Paw Release

Q2.2013Faunia Paw won Best Mobile GameVandaria International Established by Artoncode and Ami Raditya

Q2.2014EMTEK invested in Artoncode

Q3.2014Harmoni ReleasedCollaboration with Ace Edventure on Chemcaper | ReInventing Education

Q3.2015Platinum Patner of Bandai NamcoWinterflame funded on Kickstarter

Q4.2015Asian Poker Released

Q1.2016Collaboration with Gambitious GoGame & Fingerprint

MILESTONE

Faunia RancherGenre Pet and Ranch SimulationPlatform MobileRelease 2012Over 50,000 downloadsAchievements• Apps Store top 20 simulation• Apps Store top 94 apps• Winner INAICTA 2012• Winner Sparx Up 2012Faunia Rancher Game Trailer

ARTONCODE PRODUCTS

Asian Poker : Capsa Banting

Genre Multiplayer Online Poker Game

Platform MobileRelease 2014Over 30,000 downloads

Asian Poker Game Trailer

ARTONCODE PRODUCTS

HarmoniGenre Sing-a-long Applications Platform MobileRelease 2014Over 50,000 downloads

Achievements• Winner of APICTA 2013 and 2014• Indonesia Game Dev

Representation at TGS 2014

Harmoni TrailerHarmoni iTunes Google Play

ARTONCODE PRODUCTS

JKT48 Puzzle StageGenre Match-3 PuzzlePlatform MobileRelease 17 March 2016Project of

Over 50,000 download

ARTONCODE PRODUCTS

Point Blank X (US) |Gun Bullet X (JP /

CHN)Genre ShootingPlatform ArcadeRelease 2016

ARTONCODE PRODUCTS

ChemCaperGenre RPG Chemistry EdugamePlatform MobileRelease March 2016

Co-Production PartnersACE Edventures (Malaysia)Artoncode (Indonesia)

AchievementsFeatured at Google IOExhibitioned at GDC and GameCon

Google IO TrailerChem Caper Trailer Art Book Trailer

ARTONCODE PRODUCTS

fingerprint

Winterflame : The Other Side

Genre Puzzle PlatformerPlatform PCRelease Q4 2016

AchievementsFunded at Kickstarter $ 71K CADGreenlit by SteamMost Promising - IGS 2014Most Promising – GDG 2015Winterflame Trailer

ARTONCODE PRODUCTS

GAMBITIOUS

FUZE

ASPYR

HEAD UP

NETWORK

SouthPeak GamesVideo game company (Missing Link)SouthPeak Games is a video game publisher of titles including STRONGHOLD3 and VELVET ASSASSIN in Europe and North America.

Nintendo Co., Ltd. is a Japanese multinational consumer electronics company headquartered in Kyoto, Japan. Nintendo is the world's largest video game company by revenue

goGame PTE. LTD.Singapore-headquartered mobile games publisher.goGame’s one-stop-shop service handles customer support, marketing, analytics, payment, user acquisition and other time-consuming processes into a single platform .

Bandai Namco Entertainment Inc. is an arcade, mobile and home video game publisher, based in Japan. The company also publishes video, music and other entertainment products related to its video game IPs.

CORE BUSINESS

Provide full/partly services for game, animation and illustration related task

3. Service Contracting

Intellectual Property development, creating full

product from concept to production.

1. IP Development

Join development/production with other company

2. Co- Production

Co-P

roService

IP Dev

COMPANY OBJECTIVES

1. To complete IP development production (Winterflame: the other side)2. To nail co-production projects with global game companies3. To expand service contracting business unit4. To establish deeper collaboration with Agate Studio

SHORT TERM:

• To be an Indonesian character/IP databank • To be a master licensor for game developer- related software certification• To be a game related content provider for video broadcaster (online and TV)

LONG TERM

IP PRODUCTION-WINTERFLAME

1

Fuze Game Co.,Ltd Beijing internet entertainment company focus on TV game console product design， development and gaming operation.

Publishers looking forward to the game release:

Gambitious BV is the first global crowd-financing platform exclusively for games.

AspyrThe Greatest Mac publisher on Earth, ever.

Headup Games GmbH & Co. KG is a video game publisher company located in Düren, Germany. Headup Games has published games including LIMBO for several platforms. PC and Mac, as well as iOS and Android.

IP PRODUCTION-WINTERFLAME

1

CompletedDemo

Contract NegotiationWith Publishers

Part 1: ProductionPart 1: Release

Part 2: ProductionPart 2: Release

Part 3: ProductionPart 3: Release

June 2016 July 2016 Feb 2017 Nov 2017 Apr 2018

MORE CO-PRODUCTION

2Artoncode existing portfolio allows the company to explore bigger projects to following target companies:

2015 revenue from co-production:USD 250K with 30% profit margin

EXPAND SERVICES3

No Service Project Value Range (in USD)

1 Full game development 30K – 3M2 Art asset development 30K – 300K3 Animation development 30K – 50K4 Concept, design and game prototyping 30K - 1M 5 Localization 10K (per language)6 Game testing 10K – 50K7 Matte painting 5K – 30K8 Pre-production Up to 3M

Artoncode services:

COLLABORATION WITH AGATE4

Benefits from the collaboration:

1. Increase company value Agate adver-gaming business unit is rapidly growing in scale, Artoncode ‘s expertise will expand the business unit revenue even faster. 2. Increase target revenue and profit marginAgate average talent cost is lower than Artoncode, with twice the size of the team. Both will increase production capabilities.

No Project Target Revenue (in USD) Profit Margin1 Winterflame Production 250 K 2 Co-production 500 K3 Services 300 K

Total 1050 K 40%

FINANCIAL TARGETPeriod Revenue (in USD) Profit Margin

2015-2016 250 K 30%

ANNUAL CASHFLOW FORECAST

Year 1 Year 2 Year 3

Expenses Unit Amount (in USD) Months Total Unit Amount

(in USD) Months Total Unit Amount (in USD) Months Total

Human Resources 80% 35 1,000 12 420,000 45 1,000 12 540,000 45 1,000 12 540,000

Overhead 10% 52,500 77,142 77,142

Hardware 10% 52,500 - -

Sub-total 525,000 771,429 771,429

Taxes 12% 63,000 92,571 92,571

Total Expenses 588,000 864,000 864,000

Revenue Unit Amount (in USD) Months Total Unit Amount

(in USD) Months Total Unit Amount (in USD) Months Total

Average Rev/person

35 2,000 12 840,000 45 2,000 12 1,080,000 45 2,500 12 1,350,000

Total Revenues 840,000 1,080,000 1,350,000

Annual Cashflow 252,000 216,000 486,000Profit Margin 30% 20% 36%Accumulated

Cashflow252,000 486,000 954,000

ROADMAP

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2016 2017 2018

IP DevelopmentUSD 250,000

Service / Co-ProductionUSD 500,000

AAATriple A Colaboration

Service / Co-ProductionUSD 300,000

Service / Co-ProductionUSD 1,000,000

IP Dev /Co-ProductionGame with revenue of USD 100,000 / day

S.W.O.T analysisSTRENGTH Passionate Team Member Best TalentS in Indonesia Good Network with big Game

Publisher [Platinum Patner of Bandai

Namco]

WEAKNESSSlow transfer of knowledgeCapital Constraint

OPPORTUNITY Creating e-Sport with ICE,

CYBERIA, VIDIO.com CO-Production with Big Game

Publisher Artoncode not only good in

game industry, but also entertainment in general

THREAT Lack of interest from financial

investors No entry barrier for global

player’s foreign direct investments, causing local market exploitation

COMPANY POSITIONING

GameDeveloper Publisher Distributor Retailer End User

AnimatedTV series

E-sport

Pop CultureLocal Events

Toys

Education

Indonesia game development industry ecosystem is still growing, it does not have all the required role filled in. This means game developer often has to pro-actively fill in another role to achieve more.

OPPORTUNITIESTO BE EXPLORED

GameDeveloperPublisher Distributor Retailer End User

AnimatedTV Series

Film

Pop Culture Local Events

Toys

Education

Artoncode has the experience to develop IP/characters all the way from pre-production for short animation series development

End goal:To create IP/characters that can be translated to merchandise through animation, games and other story telling media

OPPORTUNITIESTO BE EXPLORED

GameDeveloperPublisher Distributor Retailer End User

Animated TV Series

Toys

Education

E-sport

Artoncode as content provider to enhance gaming tournament videos, and creating story packaging to promote both gamers and players

End Goal:Creating one-stop visual entertainment for local gamers and game enthusiasts

Pop Culture Local Events

DOTA | CS >> Hardcore e-Sport [150 million people in the worlds]Imagine the e-Sport with Midcore player. Artoncode may have the chance to create that kind of community with ICE, CYBERIA, & VIDIO.COM.

RULE INDONESIA, RULE THE WORLD

Imagine 1 IP with Series on TV, Game, Community, Place to Hang Out & Play, Streaming. The Grand Scale to get Indonesian Digital Market. Creating a lifestyle

IP developmentGame

development

Community &E-sport

community & social media

Acquisition &Lifestyle via TV

Series, Comic, Toys, Merchandise, etc

ROADStep by step planning to develop IP production ecosystem to

IP

IP ECOSYSTEMIP developer IP

publishingIP licensing Mass Production

Illustration Toys Designer Comic/Graphic

Novel Animation/Movie Game Other content

developers…

Licensing company Brands Merchandising Company

Consumer good products Merchandise Factory

IP channels Printing media Website TV Stations Game Platfom Other media and

network providers…

KEY SUCCESS FACTORS

90% revenue for IP is generated by merchandise mass-production

Ideally merchandise has to be ready on-the-same-day IP hits the market

An IP need to have at least 5 (five) products simultaneously on the market for at least 2 (two) years- (5 products: animation, comic, game, merchandise, toys etc.)

IP DEGREE OF ACCESS

Easiest

Hardest

Game

Video

Toys

Comic

Literature

Video (especially short animation series) is the fastest way to introduce IP to the audience. It does not take any effort to access it. People can simply watch and enjoy the story

As long as the toy is eye-candy to the market standard, it can easily attract people to buy

Sequential printed art is relatively cheap to produce and can be access easily for people who likes to read

Game considered harder to be accessed, because it required audience to be engaged then provide input to get full experience from the IP

Only for people who likes to read, and usually gets challenge to visualize IP against people imagination.

STEPS TO SUCESSFUL IPResearch and Development iteration process- develop series of mini-products and gather market

opinion. Iterate the product profile according to market feedback. E.g.: animation shorts, comic inserts, attractive toy designs release

1-6 months

Develop IPs with positive feed back, while gathering data and building fanbase. E.g.: more storyline, more variations of products. 1-6 months

Push 5 (five) products simultaneously to the market + offline events to build numbers and collect testimonials6-12 months

Collaborate with licensing company to manage IP merchandise distribution

Collaborate with brands through licensing company

Mass-produce merchandise for the IP

1-6 months

1-6 months

SAMPLE PLAYERSIP developer IP

publishingIP licensing Mass ProductionIP channels

Source: http://www.btha.co.uk/inventors/character-licensing-of-toys-2/

DATA FROM LOCAL EVENTS

ICC stands for Indonesia Comic Convention Popcon and ICC are two biggest conventions and exhibitions for local and international characters Booth revenue are survey result from local creators with IPs sold without publishing Indonesian buying capability and interest to IP/characters reach averagely Rp 300,000,-/person/day

Year 2014 2015Event Title PopCon ICC PopCon ICCNo of Visitor 24,000 5,081 37,000 20,515

Admission Ticket Price Rp 25,000 Rp 90,000 Rp 25,000 Rp 90,000

Days of Event 3 days 3 days 3 days 3 days

Total EO Revenue from Ticket Rp 1,8 bio Rp 1,3 bio Rp 2,7 bio Rp 5,5 bioNo of Exhibitor 116 57 167 140

Daily revenue/booth USD 750 USD 500 USD 1000 USD 1000

Total revenue from booth USD 261,000 USD 85,500 USD 501,000 USD 420,000

CHARACTER PUBLICATION

Collaboration:Cross marketing Harmoni series of edu-apps for children with Kebab Babarafi the biggest franchise chain from Indonesia

Harmoni provide characters for packaging-Kebab Babarafi print Harmoni characters and download code on kids meal packaging and distribute to all of its outlet

Additionally:The kebab packaging can be folded to paper craft

KEBAB BABARAFI

KRATOON CHANNEL

More than 4,000 total views, with average of 300 views per videos

3350 subscribers

THANKS!

Any questions?You can find me at [email protected]