The Leading International Esports business - Investor Presentation June 2019 Igniting an Esports revolution - Gfinity PLC

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The Leading International Esports business - Investor Presentation June 2019 Igniting an Esports revolution - Gfinity PLC
The Leading
International Esports business
       Igniting an Esports revolution

     Investor Presentation June 2019
The Leading International Esports business - Investor Presentation June 2019 Igniting an Esports revolution - Gfinity PLC
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The Leading International Esports business - Investor Presentation June 2019 Igniting an Esports revolution - Gfinity PLC
Key investment highlights                        INTRODUCTION

1   The Leading International Esports Business

2   Trusted independent Esports partner

3   Leverage and create value with partners

4   Revamped growth strategy is delivering

                                                          2018
The Leading International Esports business - Investor Presentation June 2019 Igniting an Esports revolution - Gfinity PLC
Large and growing global audience and market                                                                                                                                                                                MARKET

                2.2 BILLION                                395 MILLION                                 737                         $151 Million                        $1.80 Billion                                   32%
         People globally who play                    Global number of players                The number of major                Prize money broke                      Projected Esports                     Global Esports revenue
              video games                                & enthusiasts in                    global Esports events            $150 million mark for the                revenue by 2022                        increase during 2018
                                                              2018                                  in 2018                       first time in 2018

     m             Esports audience growth                                                              Prize money development                                         USDm              Esports revenue growth
                                                                                 USDm
                                                                          645
                                                                                 180
                                                                   580
600
                                                                                                                                                               151
                                                    518                          150                                                                                  2,200
                                                                                                                                                                                                                                            1,790
500                                    454                                                                                                                            2,000
                                                                                                                                                                                                                                1,566
                                                                          347     120                                                                   112           1,800                                                                   72
                        395                                                                                                                                                                                         1,340
400      335                                                       316                                                                            93                  1,600
                                                    285                                                                                                                                                 1,096
                                                                                  90                                                                                  1,400                                                                  823
                                       253
300                     222                                                                                                                                           1,200                    865
                                                                                                                                           61
          192                                                                                                                                                         1000
                                                                                  60                                                                                               655                                                       231
200                                                                                                                                                                    800
                                                                                                                                   36                                  600                                                                   161

100                                                 233            264    297     30                                        19                                         400
                        173           201                                                                             13
         143                                                                             6                     9
                                                                                                 3      5                                                              200                                                                   501

 0                                                                                 0                                                                                      0
                                                                                        2008    2009   2010   2011   2012   2013   2014   2015   2016   2017   2018                2017       2018e    2019e        2020e      2021e       2022e
         2017          2018           2019e        2020e       2021e     2022e

                Esports enthusiasts           Occasional viewers                                                                                                          Media           Merch &     Advertising     Sponsorships      Publisher
                                                                                                                                                                          rights           tickets                                        fee

Source: Newzoo 2019 Global Esports Market Report                                                                                                                                                                                                    4
The Leading International Esports business - Investor Presentation June 2019 Igniting an Esports revolution - Gfinity PLC
INTRODUCTION
The Team

                                                              Graham Wallace                             Jonathan Hall                             John Clarke
                                                              Global Chief Operating Officer             Chief Financial Officer                   Global Brand & Marcomms Officer
                                                              Ex-MTV, IMG Media, Manchester              Ex- Saracens Rugby,                       Ex-Heineken, American Express, Burson-
                                                              City FC, Rangers FC                        PA Consulting, Arthur Andersen            Marsteller PR

  Garry Cook
  Executive Chairman
  Ex- Global Brand Officer, UFC
  CEO, Manchester City FC
  President, Michael Jordan Brand, NIKE

                                          Paul Kent                                   Eric Ping                                 Amanda Lawson                                Bryan Healy
                                          Global Head of Esports Solutions           Chief Technology Officer                   Global Head of Content                       Global Head of Client Services
                                          20+ years in Esports                                                                  Ex-UFC, ITV Sport Executive                  Ex-UFC, WMG, NBC Sports, FIFA
                                                                                     CTO CEVO 13+ years
                                                                                                                                Producer                                     2010 World Cup

                                                                                                                                                                                                              5
The Leading International Esports business - Investor Presentation June 2019 Igniting an Esports revolution - Gfinity PLC
BUSINESS MODEL
   The value chain – strategic client engagement

           Publishers                      Players/Teams                  Leagues/Tournament*               Platforms              Community

                           Create Games                    organised in                    distributed on                 to

          Games Developers + Publishers                                   Brands + Advertisers                           Rights Holders
                 + Key partners

                                                                                                                   Utilise ecosystem, expand
            Increased monetisation                                 Reach engaged young                            audience and increase value
                 opportunities                                           audience                                           of products

*Gfinity is an example of leagues/tournament operator                                                                                                6
The Leading International Esports business - Investor Presentation June 2019 Igniting an Esports revolution - Gfinity PLC
What we do                                                                                                                BUSINESS MODEL

                       The Leading International Esports Business
                   End-to-end solutions leveraging Esports expertise, technology content and broadcast capability

         Strategic Managed Services                                            Owned and Operated

          Solutions                    Content and
        Development                    Monetisation
                                                                      Owned Content                        Community
      Online & offline game and       World class studio and
         event management              creative expertise to           Gfinity bespoke owned            Building service offering
       underpinned by leading          deliver valuable and             and branded solutions           access to our proprietary
     Esports technology platform      engaging content and            including The Gfinity Elite        community platform of
                                           monetisation                         Series                    engaged consumers

        Game Publishers,               Content Buyers and             Our Brand, Production,           Our Users, Viewers, Fans,
       Sport Rights Holders,          Distribution Platforms           Content, and Format             Consumers, Data, Insight
       Commercial Partners
                                                                                                                                           9
The Leading International Esports business - Investor Presentation June 2019 Igniting an Esports revolution - Gfinity PLC
Our value proposition                                                                                            BUSINESS MODEL

         PUBLISHERS                   SPORTS RIGHTS                  ENTERPRISE                      CONSUMERS
    •   Drive growth in users,    •   Joining physical and     •   Structured access to       •   Build communities
        sales & retention             digital world                global gen Y, Z and
                                                                   millennial consumers       •   “Powered by Gfinity”
    •   Complete technology       •   Access to next
        platform & integrations       generation audiences     •   Data, insight, analytics   •   Community insight and
                                                                   and advertising                relevance
    •   “Gfinity Web Services”    •   Grow audience and
                                      consumption              •   Bespoke Esports            •   Creating compelling and
    •   Solid execution track                                      solutions and content          engaging content
        record across genres      •   Trusted tournament
                                      operator and expertise   •   Esports broadcasting       •   Building technology for
    •   Expertise – Esports,                                       and branding expertise         competitive- and social-
        media and content         •   Bespoke solutions                                           gaming

                                                                                                                                  7
The Leading International Esports business - Investor Presentation June 2019 Igniting an Esports revolution - Gfinity PLC
Case Study: Sports rights holder solution                               MANAGED SERVICES

                  2017                                            2018

  60k             Number of entrants                Number of Entrants              66k

   20         Number of broadcasters            Viewers under 34 years old         70%

                                                Professional teams signed
  123            Number of countries
                                                  at least 1 player each              9

  6m              Online video views                Online video views             20m

 2 live events: Semi Finals at Gfinity Studio   1 pro draft event (July) at Silverstone and 3
 and finals in Abu Dhabi November 2017              live events ending December 2018

                                                                                                8
The Leading International Esports business - Investor Presentation June 2019 Igniting an Esports revolution - Gfinity PLC
STRATEGY
Revamped strategy bearing fruits

         Gfinity before: Siloed strategy                        Gfinity now: Fully integrated monetisation partner

                                                                                                       Game &
                                                                                 Content Creation
                                                                                                     Tournament
                                                                                       and
                                                                                                     Management
                                                                                   Distribution

                                                                                                                 Integrated
                                                                         Own Esports                            Technology
                                                                           Studio                                  Platform

             Events and
             broadcast

                                                                                   Analytics,       Community build
                                                                                  Marketing &        & Engagement
                                                                                  Monetisation

  -   Centered around owned and operated Elite Series                -   End-to-end strategic managed services
  -   Capital intensive and high level of up-front investment        -   Consumer focused, insights driven
  -   One-off “gun for hire” events and cost-plus model              -   Esports rights development and monetisation
  -   Limited monetisation of Gfinity IP creation                    -   Monetisation of Gfinity intellectual property
                                                                                                                              10
STRATEGY

Gfinity today – IP Portfolio
              Esports Solutions: Intellectual Property

                                         Entertainment   Owned Events
  Football    Motorsport   Other Games
                                            Content      & tournaments

                                                                         11
STRATEGY
Strategy checklist

            2018/2019                      2019/2020

    Accelerate revenue through   Multiple Sports rights under
    strategic managed services   development

    Re-align resources with      Increased level of profit
    partnership strategy         sharing and IP monetisation
    Revamp Elite Series and
                                 Owned or joint Esports Rights
    improve profitability
    Mainstream and consumer      Online community platform &
    driven approach to Esports   partner integration

                                                                    12
BUSINESS MODEL

H1(19) – Update on strategic initiatives

           Managed Services                               Owned and Operated

               Number of views                                  Number of views
    4.3x                                              +64%
              Gfinity produced content year on year            Elite Series live plus shoulder content

               Like for like growth                            Gross profit improvement
   +189%                                              +£2.8m
              Revenue from existing partners                   Higher revenue and opex efficiency

                                                                                                          13
Financial highlights and ambition                                                                                                         OUTLOOK

         Revenue                                                                                 Cash Opex
         LTM = Last 12 months                                                                    LTM = Last 12 months
         Fiscal year end June                                                                    Fiscal year end June

                                                                     Esports rights management

                                                 £6.9
                                                                     Proprietary Gfinity IP                                                    £9.7       £10-12
                                                                                                                                      £7.8

                                        £4.3                                                                                   £4.6
                                 £2.4                                                                          £2.1     £2.8
       £0.2     £0.6
                          £1.4                                       Solutions development           £0.7

       2014     2015      2016   2017   2018   LTM H1(19)   Medium                                   2014      2015     2016   2017   2018   LTM H1(19)   Medium
                                                             term                                                                                          term

              Financial characteristics                                                                                 Financial ambition

- Scalable business model driven by Gfinity value                                             - Target of break-even within 2021
  creation and profit sharing with stakeholders
                                                                                              - Target group gross margin of 30-40%
- Opex is largely fixed due to historic investment in
  solutions, brand and content production capability                                          - Target EBITDA margin of 15-25%
- Upside from consumer engagement in turn driving
  Esports rights, solution and content revenue

                                                                                                                                                                   14
Summary                                                                       SUMMARY

    The Leading International Esports business
1   Connecting brands and publishers with a growing and engaged
    Esports community through publishers, sports rights holders and Gfinity
    intellectual property

    Preferred and trusted independent Esports partner
    Leading publisher, rights holder and commercial partner position drives
2   Gfinity media brand and proprietary, scalable and global Esports
    solutions IP portfolio

    Leverage and create value with partners
3   Leverage trusted partner franchises to co-create and monetise fast
    growing media sector through rights management, IP development
    and end-to-end Esports solutions and technology

    Revamped growth strategy bearing fruits
4   New management team focused on growth through game publishers
    and sports rights holder partnerships (B2B and B2C) – monetisation
    through rights management, Gfinity IP, content and community

                                                                                    2018
                                                                                        15
THANK YOU
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