BAZAAR ENTERTAINMENT

Contents Distribution Platform through Human Networking

Edu-tainment to the next billion.

TEAMFounder and CEO : Kent Ohwada. 15 years experience at Sony Computer Entertainment. Establish member of PlayStation Asia as sales and marketing executive. Founder and project director of PlayStation Game Incubation Program.

Co-Founder and CTO : Shin Izawa Has more than 20 years career in system development for Oracle, Rakuten, Pia. e.t.c. Co-Founded company named “NOBOT” had acquired by KDDI with 10 million USD

Co-Founder and executive of software developer relations : Duke Chang Has more than 20 years career in gaming industry. Establish member of PlayStation Asia as game developer relations.

Co-Founder and external board : Hiromichi Takahashi Famous game producer in Japan. Sold over 2 million copies sales on PlayStation. CEO of game developer in Japan named TayuTau Inc.

Co-Founder and external board : Shinichi Okamoto First CTO of Sony Computer Entertainment.

OPPORTUNITY \ INDONESIA

• 50% of population is under 30 years old as “Generations of Games”

• 190% growing school attend ratio age 19~24 years old in this 10 year.

• 50% of population become “Rich” and “Middle” class in 2020. Increase spent for Entertainment.

• 52% of mobile phone subscriber will use smartphone in 2017.

• Paid ratio for contents : 1.6USD~4.2 USD/month by Bazaar’s test marketing.

PROBLEMS \ INDONESIA

KFS of contents business • How easy to touch contents (Distribution)

• How easy to pay for contents (Payment, Pricing)

• How easy to know contents (Promotion)

> Slow Mobile Internet, Bandwidth will full in 2017

> 3% credit card holder, 20% bank account, Expensive Alternative payment

> 80% user give up download games after click banner AD. World of Word of Mouth.

Cant’t enjoy rich contents

Cant’t enjoy good contents

Cant’t find good contents+ Killer Contents

STRATEGY

“MLM like distribution” : Digital Contents Distribution by Professional Consumer

• Develop and organize personal distributor network distributing digital contents, promoting contents, and correcting money.

• System

• “Pandemic” contents distribution : Smartphone to Smartphone contents distribution. • Payment system from 1,000Rp. : Same model well known local payment system as Pulsa. • Reward and revenue sharing program for “ProSumer” : Optimize for Word of Mouth

Note : We are NOT MLM. We will NOT provide multi level revenue sharing. Just allow resell between users.

STRATEGY

Why we choose MLM-like model?

• Easy to accept by customers

• Huge needs for Game & Education, love gathering : Acceptable by customer • No physical stock, free to play model : Acceptable by distributor

• Business performance

• Optimized Business Model for word of mouth promotion • Total cost of operation : Cheaper than existing business model

“MLM Model” Digital Contents Distribution by Human Networking.

Note : We are NOT MLM. We will NOT provide multi level revenue sharing. Just allow resell between users.

“PANDEMIC” DISTRIBUTION

DeviceDistributor

Server App

WiFi Direct &

Bit Torrent

Contents

BAZAAR TOKYO(LTE) JAKARTA(3G)

358

4811

Android App(46MB) Download test Weekday 14:00 (Seconds)

“Pandemic” P2P Distribution System

30X FASTER MOBILE

INTERNET

No need to wait for downloading. No need to pay for data charges.

ORIGINAL PULSA SYSTEM

① I want to buy a Point.

② What is your Phone Number?

⑤Pay by Cash

Customer Distributor

To Bazaar Center

080-1111-1111 1000pts

③Send command to transfer

From Bazaar Center

You got a 1000pts

④Send Result via SMS

User can purchase prepaid voucher from 1000Rp. through Bazaar Platform

BlockChain

SECURE LOW COST

BUSINESS MODELHybrid monetize model through Entertainment & Education

Fee model Profit Source Price range MarketingObjective

Synergy

Game

Free Game AD FREE Eye CatchWill charge AD fee to game company

In game purchase Pay par play 1000Rp.~High Profitable

(Demands)Provide free education

coupon

Education

Free Contents AD FREE Market EntryWill charge AD fee

to contents provider

Paid Contents Subscription 50,000Rp./Lesson/Sustainable ProfitParents support

Provide free Bazaar point

per subscription

REVENUE SHARING PROGRAM [DISTRIBUTOR]

• To be a distributor

• User can be a distributor charged Bazaar point more than 500,000Rp.

• Revenue sharing program

• Maximum 20% sales margin from Bazaar point.

• Reward to distributor

• New users recruiting bonus, free promotion goods, incentive dinner & travel.

• Advanced purchase discount, game event organize bonus

Easy to entry, Everybody has a chance

Target Distributor Monthly income 500,000Rp.

Sales Margin 20%

Monthly Sales amount 2,500,000Rp.

ARPU 50,000Rp./month/paid user

Target Paid User 50 paid user

REVENUE SHARING PROGRAM [DISTRIBUTOR]

COD

Bazaar Distributor End User

Point Transfer Point Transfer

COD

$ $$

$

35% 35% 30%Margine

License

Royalty

$

Publisher

Point Transfer

Expanding sales network, Bazaar support re-sell between users.

TEST MARKETING RESULT (GAMES)

n=5371 Google Play BAZAAR Bazaar Uniqueness

Attention Ratio 0.03% 90% Word of mouth Promotion

Install Ratio 20% 79% Fast Mobile P2P

Active User Ratio 10% 64% Game Competition Everywhere

ARPPU / Month < 1 USD 1.5~4.2USD Low price Simple purchase

Test Marketing by Bazaar (Nov.14~June.15)

Optimized Platform for “Game” and “Emerging Market” makes a higher KPIs

EXECUTION

• System development

• Mr.Izawa (Bazaar CTO)

• DSI (Local server management)

• Herman (System cording, interface design)

• Contents aggregation

• Mr.Duke (Bazaar Director) : Japan and US. Already got over 40 games at launch

• Ms.Novihana (Bandung) : Local game developer support.

• Local Marketing

• Ohwada & Sky Wang : Game Marketing Specialist in Asia

• Bandung Team : 4 part-time staff

• Qeon (MidPlaza) : Major game company in Indonesia

• Dr. Kamaga : Japanese teacher in Bandung. Has a strong relationship with university and high school in west Jawa.

• Co-marketing company : local expendables company Cosmetics, Drinks, snacks, telecom company, credit card, BizNet Home

Excellent team, Synergy between Indonesia and Japan

Mr.Izawa

Mr.Duke

Dr.Kamaga

EXECUTIONFocus on school marketing at initial phase. Same way with Facebook.

Target Age 15~24

Phase 1(Aug/2016)

Phase 2(Feb/2017)

Phase 3(Sep/2017)

Target City Bandung Jakarta Other Cities (Expand city by city)

Initial Target(4 month)

Target School 9 University 13 University

Target School Students 149,749 316,217

See Business Plan

Target users 70,000 143,000

Distributors 500 1000

Target Paid User 48,000 99,000

ARPPU 20,000Rp. 20,000Rp.

Potential Market

Mobile FB User Age15-24 1,900,000 7,500,000 20,000,000

Number of University 41 49 4,332

Number of Univ. Students 236,662 703,466 4,000,000

30% 20% 23%

20%

EXECUTIONTarget List: Make a heavy effort to catch 16% of user in major university at launch.

Bandung PIC Students

Universitas Pendidikan Indonesia DONE 33,128

Universitas Islam Bandung 10,357

Universitas Pasundan DONE 21,027

Universitas Telkom DONE 20,188

Institut Teknologi Bandung DONE 18,567

Universitas Islam Negeri Sunan Gunung Jati 14,179

Universitas Komputer Indonesia DONE 11,186

Universitas Katolik Parahyangan DONE 10,932

Universitas Kristen Maranatha DONE 10,225

TTL students top 9 univ. 149,749

TTL students in Bandung 236,662

Jakarta Students

Universitas Indonesia 38,722

Universitas Terbuka 57,294

Universitas Negeri Jakarta 31,936

Universitas Pembangunan Nasional Veteran Jakarta 27,486

Universitas Ibnu Chaldun 23,456

Universitas Islam Jakarta 22,384

Universitas Jakarta 20,672

Universitas Katolik Indonesia Atma Jaya 17,884

Universitas Krisnadwipayana 15,075

Universitas Kristen Krida Wacana 13,811

Universitas Muhammadiyah Jakarta 13,044

Universitas Nasional 13,024

Universitas Pancasila 10,761

Universitas Prof Dr Moestopo (Beragama) 10,668

TTL students top 13 univ. 316,217

TTL students in Jakarta 703,466

EXECUTION \ GAME TITLESmore than 60 titles is ready to launch

AAA AA A Company

Major Publisher 5 5 20

Bandai Namco SquareEnix-TAITO

Capcom, SEGA

Independent Developer 15 15 Over 20 developers

Local Game Developer 1 5 Digital Happiness

and othres

MID RANGE PLAN

Deliver contents to 1.4 billion generation of game in emerging countries

Age 15-24 Population in 2020 UN. World Population Prospects: The 2012 Revision

China:267 million

SE Asia:162 million

India:353 million

M.Asia, M.E.:217 million

Africa:356 million

S. America:105 million

Bazaar Platform is designed for “Scaling out” and “Vertical Expansion”

Scaling out - Small investment for Data Center - Small investment for Secure Payment System - Small promotion cost

Vertical Expansion - Other contents distribution - Financial service - Ad business - Job Bank - Device business

APPENDIX

OPPORTUNITY \ INDONESIA

Indonesia : 7% increase Age 15-24 old in next 5 years

China : -17% decrease Age 15-24 old in next 5 years Japan: -4% decrease

Age 15-24 old in next 5 yearsMale Female Male Female

Male Female

PROBLEMS \ INDONESIA

JAPAN INDONESIA

16

32

Average of Installed Apps

INDONESIA MALAYSIA PHILIPPINS THAILAND VIETNAM

Game Marketsize / GDP

PROBLEMS \ INDONESIALTE bandwidth will full capacity until 2018 if national military doesn’t return 2.6GHz bandwidth.

AD COST COMPARISONBazaar’s AD platform makes super cost effective promotion in emerging country.

Assumptions of user Accumulated User in next 6 month: 2293k

Frequency of media Daily Spending time on mobile : 196 minutes* Own Share : 20% Daily Spending time on own service : 39.2 minutes AD frequency : every 10 minutes AD display time : 30 seconds Daily AD display time on own service : 1.96 minutes

* Source : Nielsen

Daily Viewing time/day 2293k user: 11,235k minutes

TV AD cost /person/1minute (Prime Time) * RCTI : Rp.60,000 / person TVONE : Rp.110,000/ person

Daily Value (Base RCTI prime time AD) 2293k user: Rp.494,371 million = USD 37,500,000/dayBAZAAR INVESTMENT

1 MILLION USD/ALL

If you want archive same viewing time on TV…