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penetratedin mobile and interna tech wil sft towards 3 party.

i. Enterprise on the enterprise side, lease se pages 29-3 for he market
segments tht Epicis going after In most cases, we a not focused on dsiacing exstng solions but
Tatar on complementing exising toc wih rea ime. 5d veuaizaton capabilies. Compared 0 Unt. we
View out compete advrtage on the anirprse side

morgan ron we oe sie t use MA a a tol o acquire th bes teams technology
30 pipeine in certain ares o acolrate engine development

27 Longe: out finanil resouoes fiom Farin alows us to focus on adoption and sing
{or enlrpre customers rel ssoes va having force monehzaton immecitey (16 cresing
gates o accessing ut ech)

5. Please provide projections on here the Gampany sees usr growh endng, particulary for enterprise vericals
"Alto growt n automate, both users and manebzaton. i he ages near tom oppartuny nirpriss
port or Unreal gen xsing pensation and use Cases today Unie + bag uoed or rea ume rendering
Far design nabing ml-user Colabarai reviews, veriing and marketing. cr confurabon or cusomers
Sutonamous diving Smisation and human machine meriace We hove he halon’ op wo aa OEM 8 paying
Customers and expect 1 coninue expandng user penataton and manetzaton over me.

5 Medio and entertainment is the 2" largest area of enterprise roth a the post production costs of im and
TV connie increase. Unreal salteady being used  pevaualzaton 3nd vidal production, anmaton. ea
ime poducion and broadcast and ve sverts

© Architecture growth in rchiecture s diven by our Twinmton poduct—whic sa reame, 30
arhiecuralvisuazaton ols bul on op of Uneal. It provides sie fo us tol 0 lan archiactue,
Constuchon, ban anNnG and andscaping Projects hat con be ea i contoured show ferent ayous,
Saasons, weather paters, fumihings otc Ss closing on he acuistion in ary 2015, Epc made th product
fee ad grow the ser base om 4.000 over 350000. Twinmoton wl be Enc jan horse io rchtecute
ms. by having a imple to use oo that anyone can use, ul but oop and connected tothe Unreal Engine
or Nighy technica rchtecs to pian consnchon projects.

5" "Goternmant and Defense

7. Please provid an estimate of te number of developers voridide hat use he Unreal Engine
"57mm have dounload ihe Unreal Engi and vi have ~S30K month acave users s of December 2019

5. How many Epc enonees and smyicyees re dedicated o the Uneal Enine business?

"a" "2560 amyhcyass of 2000 ota at pc) re deicaed oh Unreal Engine business. Of Epics ~450
Sngineers, we have 210 dedicated oth Unteal business (oe than any aier business segment including
Games wnare we have 170)

5" Resources are gy fungi, peope are allocated bas on he highest business pire at any given ime

9. Vihat ae the direct cous and operating expenses associated wih the Uneal Engine business?

"Ther ar amos no cre coste sssocsied ih operating the Unvesl Engine ater than marketgace revenue
Share (of 8/12) bu ohewise the ange usess fs 100% gross margin anc we have -$120mm S150mm of
Spex tor engi
Enterprise Stateay Overview
Epic Games has been developing and monetizing the Unieal Engine since foundingin 1939. The Unreal Engine was designed
1050. game engine for 3 party game developers and for Epic developed games (Unreal Tournament, Gears of War, Fore,
eo)
Epic mado the engine fee in 2016:2017 and observed non-gaming companies using the Une Engine in unexpected ways
aCios ndusy erica including im and TV. scomote manuaciuing, archiecire and esi. eathcrs, of and go, atc
Oni other visuaizaton and cols boraion fois used hess eerpises, Gaming engines work tke. What ie net
Scan in game ook 1K or a ayer is cepancent on 1h achons ha Payers 100k bears, no wo payer exparences are the
Same and ihe gaming engine technology mist support hese ream changes an erator. eqs a (1 more complex
Gata vauatzaton tachnlody than whats headed for Inear TV o fending 8 1
Epic has monetized enterprise usage in bespoke ays including ona contac basis 1. General lors wil contract usage f the
Uhiea! Engin for a cern ijec) 9nd saat basis (1. $1,500 por sea) Th primary product of Unies! cones to be fas and
olen monetzaion athe request of te customer (enieprises require he to 6 a contract in place efre being aie 1
leverage a3 ary techncogy).
5 we bul up enterprise adoption and he business development team 0 support terse sales, we antcpate being able to
monetize engin fr enters na few Ways

+ Seats: Uni cutenty monetzes their game engine trogh a per use per year model of $1,600 sat We.

oiipat doing is ncetin verticals whee we have o produczed industry spec oerng uch a archiecture wih

lr Thinhlosan sofware Wo made he soars fea 1 dre 8Gopion and wil begin charging an annuel ee ff se

+" Technical account support Red Hat and cfr open source safware products that sel no he enterprise

Commun have dove monekzaton and adoption (hrough Techical Account Manages that nlscrate deeply io 8

Customers organization help understanding of how fo Use th angie and iso adoption

+" Dita Assets: in mca and entertainment, milion of dlrs are invested o crete Gigal asses (e animated

Cnaracier, landscape, 300nd cipe) ht are uae or one Show of movie and hen recreted b another studio or he

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