ESE Entertainment Inc - TSXV: ESE OTCQB: ENTEF Fiscal Q2 2022 Corporate Presentation - Capital Event Management
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ESE Entertainment Inc. TSXV: ESE OTCQB: ENTEF Fiscal Q2 2022 Corporate Presentation
Disclaimer
This document contains forward looking statements, including Future Oriented Financial Information The securities of ESE are considered highly speculative due to the nature of ESE’s business.
(“FOFI”) that relate to our current expectations and views of future events. Certain information
contained herein and certain oral statements made are forward-looking and relate to ESE Entertainment Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may
Inc. (“ESE”) business strategy, any estimate of potential earnings, the completion of any transaction cause the actual results to be materially different from those expressed or implied by such forward-looking statements,
including with stadiums, acquisition of customers, product development, timing of product including but not limited to, business, economic and capital market conditions; the ability to manage our operating
development, events, courses of action, the proposed financing, regulatory approvals and other expenses, which may adversely affect our financial condition; our ability to remain competitive as other better financed
matters. Statements which are not purely historical are forward-looking statements and include any competitors develop and release competitive products; regulatory uncertainties; market conditions and the demand and
statements regarding beliefs, plans, outlook, expectations or intentions regarding the future including pricing for our products and services; security threats; our relationships with our customers, distributors and business
words or phrases such as “anticipate,” “objective,” “may,” “will,” “might,” “should,” “could,” “can,” partners; our ability to successfully define, design and release new products in a timely manner that meet our customers’
“intend,” “expect,” “believe,” “estimate,” “predict,” “potential,” “plan,” “is designed to”, “project”, needs; our ability to attract, retain and motivate qualified personnel; competition in our industry; our ability to maintain
“continue” or similar expressions suggest future outcomes or the negative thereof or similar variations. technological leadership; the impact of technology changes on our products and industry; our failure to develop new and
Forward-looking statements may include, among other things, statements about: our expectations innovative products; our ability to successfully maintain and enforce our intellectual property rights and defend third-party
regarding our expenses, sales and operations; our future customer concentration; our anticipated cash claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could
needs and our estimates regarding our capital requirements and our need for additional financing; our materially and adversely affect our business; our ability to manage working capital; and our dependence on key personnel.
ability to anticipate the future needs of our customers; our plans for future products and enhancements ESE is an early stage company with a short operating history; and it may not actually achieve its plans, projections, or
of existing products; our future growth strategy and growth rate; our future intellectual property; and expectations.
our anticipated trends and challenges in the markets in which we operate.
Important factors that could cause actual results to differ materially from ESE’s expectations include, consumer sentiment
The FOFI has been prepared by our management to provide an outlook of our activities and results and towards ESE’s products and e-sports generally, litigation, global economic climate, increase in operating costs, security
may not be appropriate for other purposes. Our management believes that the FOFI has been prepared threats, exchange rates volatility, government regulations, loss of key employees and consultants, additional funding
on a reasonable basis, reflecting management’s best estimates and judgments. An investor should read requirements, changes in laws, technology failures, competition, and failure of counterparties to perform their contractual
this document with the understanding that our actual future results may be materially different from obligations.
what we expect.
Except as required by law, we undertake no obligation to update or revise any forward-looking statements or FOFI,
Such statements and information are based on numerous assumptions regarding present and future whether as a result of new information, future event or otherwise, after the date on which the statements are made or
business strategies and the environment in which ESE will operate in the future, including the demand information is given or to reflect the occurrence of unanticipated events. Neither we nor any of our representatives make
for our products and services, anticipated costs and ability to achieve goals, the Company’s ability to any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in
complete any contemplated transactions, and that there will be no regulation or law that will prevent this presentation. Neither we nor any of our representatives shall have any liability whatsoever, under contract, tort, trust
the Company from operating its business. Although ESE believes that the assumptions underlying these or otherwise, to you or any person resulting from the use of the information in this presentation by you or any of your
statements are reasonable, they may prove to be incorrect. Given these risks, uncertainties and representatives or for omissions from the information in this presentation.
assumptions, you should not place undue reliance on these forward-looking statements.
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 2/33
What Are Esports?
GAMING ESPORTS
Full gaming value chain; from Value chain related to organizing,
Value Chain hardware manufacturing to participating in, and executing
Coverage service providers competitive gaming events
(tournaments & leagues)
Software Media Rights
Revenue Hardware Sponsorship
Streams
Distribution Advertising
Service Provision Tickets/Online Entry
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 3/33
Example of an Esports Event
Event: Championships
Type: The International
Location: New York, USA
Game: Dota 2
Prize Pool: USD$34mm
Click to Watch
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 4/33
GLOBAL ESPORTS REVENUES SURPASSED $1BN, WITH
The Market IMPRESSIVE YEAR-ON-YEAR GROWTH OF 25%+
Esports pros earning more than GLOBAL ESPORTS REVENUE GROWTH
traditional athletes
2019 Dota Champions
OG Gaming
$15,603,132
The International 9 had a prize pool of USD $34,292,599, making it the largest prize pool in history. OG walked away with $15,603,132, as a team, meaning each player took home $3,120,626.
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 5/33
Europe is One of the Largest Markets in the World
IEM Katowice in Poland welcomed 173,000 Fans (46M+ Unique Online Views) at
World’s Biggest Esports Event in History
GERMANY 13 MILLION+
ESPORTS FANS $350 MILLION+
2019, EU Esports Revenues
POLAND 11 MILLION+
ES P ORTS FANS
583 MILLION+
SPAIN 8.4 MILLION+ Online Population
ES P ORTS FANS
32 MILLION+
SWEDEN 1.6 MILLION+ Esports Enthusiasts
ES P ORTS FANS
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation S ource : CNNIC, Ne wZoo Re s e a rch 6/33
Executive Summary
CORE BUSINESS LINES COMPANY HIGHLIGHTS
EMERGING POSITION AS A GLOBAL ESPORTS PLATFORM
Technology The global market is primed for consolidation
DIVERSIFIED BUSINESS MODEL
Infrastructure Scalable through technology and gaming franchise
EXCEPTIONAL MARKET OPPORTUNITY
Gaming is a global megatrend with esports leading the way
Gaming Franchise
RECENTLY COMPLETED AND ANNOUNCED ACQUISITIONS
Four completed acquisition transactions that increase revenue,
PARTNERS AND SPONSORS expand tier-1 client base, and strengthen technology stack
OPERATIONS
Founded: 2019 Team: 100+ Website: esegaming.com
North American HQ: Vancouver, Canada
European HQ: Warsaw, Poland
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 7/33
Company Assets
Becoming a dominant player in esports and gaming through a 360 approach leveraging
current assets, strategic acquisitions, market expansion, and technological innovation
Technology Support Gaming Franchise
• User Acquisition Platform: Per • Fan Engagement for • Media Rights: Sale of
user revenue from publishers esports and sports OTT rights for esports events
• Ecommerce: Product sales • Bespoke solutions with a • Professional Esports
and affiliate revenue dedicated team of agents Team: Sponsorships,
• Simulation Racing: 3D track • Ecommerce support, winnings
scanning revenue monetization, fan • Wholly Owned and
• Infrastructure: Scalable retention and improved Managed Leagues: Setup
service revenue ROI fee, entry fee
ESE Gaming, 360 Gaming GameAddik, Game Marketing Frenzy, Production Business Digital Motorsports, Simracing K1CK Esports, Gaming Franchise WPG, Infrastructure Business
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 8/33
Our 360 Solution for Gaming and Esports
Click to Watch
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 9/33
Digital Tournament Produced by ESE
Click to Watch
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 10/33Locations
Vancouver Montreal Toronto Dublin Cologne Warsaw
Portugal Bucharest
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 11/33Opportunity
No dominant infrastructure company powering esports
● Fragmented channels have made it difficult for esports companies
to generate revenue compared to traditional sports
● Lack of standardization – unlike a traditional sports league, difficult
to secure for rights on behalf of teams
● Lack of permanent digital and physical infrastructure
for supporting events
● Difficult to manage global broadcasting
and advertising channels
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 12/33Solution
ESE: a world-class esports infrastructure company
● Software for events and tournaments
● Physical infrastructure & broadcasting capabilities
● Existing global distribution for esports-related content
● Growing gaming franchise that includes professional teams
● Tier-1 advertising, sponsorship, and business partners
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 13/33Technology, Distribution,
and Customers
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 14/33Distribution
Polsat
Polsat Group is a publicly traded ~$6Bn
market cap company. One of Europe’s
largest media and telecommunication
companies and leader in the CEE
entertainment and telecommunication
markets, controlling TV, telecom, radio, and
more.
ESE has a TV deal with Polsat for its
participation in the Ultraliga Esports Event.
Ultraliga is in collaboration with game
publisher – Riot Games, is broadcast on
nationwide TV in certain parts of Europe, and
the internet. In 2019, Ultraliga had over 24
million viewers tune into its esports channel.
Photo from televised esports event, Ultraliga
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 15/33Distribution
Esports TV (ESTV)
Global distribution deal to facilitate expansion into Europe
and lead the distribution, management, and operation of
ESTV programming through European markets. The deal will
expand ESE’s content reach through ESTV’s and its partners’
global distribution channels, which include:
Roku® Channel and apps
Amazon Fire TV
Dish® Sling™ TV
VIZIO WatchFree
Samsung TV Plus
National Cable Television Cooperative (NCTC)
Select TV
TikiLIVE
SimulTV
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 16/33Key Customers
Porsche
Porsche is a publicly traded ~$32Bn market
cap company. It is one of the world’s largest
and most prestigious automakers.
ESE has a deal to manage and run certain
gaming and esports events on behalf of
Porsche, especially in simulation racing.
"We're absolutely delighted to have ESE's logo
on the Porsche cars and the tracks in Assetto
Corsa, on which the best Polish sim racers will
compete," said Konrad Wasiela, CEO of ESE
Entertainment, "Porsche is a company and
brand that has been strongly associated with
motorsport and competitive racing."
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 17/33Key Customers
Orlen
Orlen is a publicly traded
~$8Bn market cap company. It
is one of Europe’s largest petrol
retailers and oil refineries with
major operations in Poland,
Czech Republic, Slovakia,
Germany, and the Baltic states
as well as an operation in
Canada.
ESE has a deal to manage and
run certain gaming and esports
events on behalf of Orlen,
especially in simulation racing.
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 18/33Partnership with Nuvei (TSX: NVEI)
Joining forces with global fintech leader
Nuvei has agreed to sponsor ESE’s K1CK esports team for the
upcoming 2021 season, including jersey logo placement, inclusion in
digital assets and related support, plus providing integration of the
Company’s payment processing technology across ESE’s ecommerce
and esports channels.
Nuvei is an electronic payment processing company, and Canada's
largest private and non-bank payment processor. The company went
public in September 2020 with a $700 million initial public offering
on the Toronto Stock Exchange, and is currently valued around
$9.6Bn.
“As the esports ecosystem continues to grow, we’re excited to sponsor an iconic team, like K1CK, to
provide the best payments experience to fans, merchants, teams and publishers, along with continuing
to drive industry support,” said Philip Fayer, Nuvei’s chairman and CEO. “Along with our deep
experience in serving the online gaming and regulated sports betting industries internationally, we’re
thrilled to join K1CK, given their similar history of excellence.”
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 19/33Upcoming Growth Catalysts ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 20/33
Completed Acquisition of GameAddik
- GameAddik produced revenue of $24.0 million and Income from
Operations of $4.7 million during fiscal 2020 (unaudited)
- Adds New Technology and Capabilities: proprietary technology and
systems to help video game developers reach more users.
- Reaches 30 million qualified gaming users monthly through their
publisher network, enabling the company to register over 300,000
new high-value players every month for its customers.
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 21/33Completed Acquisition of Frenzy
- World class production and content capabilities
- Cross selling through ESE and Frenzy’s unique relationships
- Strengthens ties with Cyfrowy Polsat, one of the largest
digital platforms in Europe and the largest in Central and
Eastern Europe
- Improves revenue and profitability
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 22/33Completed Acquisition of Digital Motorsports
- ESE completed acquisition of Digital Motorsports in September 2021
- A leader in simulation racing ecommerce and esports
- Working with leading motorsports companies across the world
- Multiple business synergies
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 23/33Expand Distribution and Leagues Business
- Provide infrastructure for new games
- Increase opportunities from media rights
- Expand revenue from technology
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 24/33Organic Growth and Integration
- Unlocking synergies between assets
- Organic growth of existing assets
- Integrating systems and processes to maximize revenue and profits
from all assets
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 25/33Evaluate Entering iGaming
- The Company will evaluate a plan to expand its business offerings to
igaming, which may be synergistic with its existing assets, subject to
further business and regulatory due diligence.
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 26/33Enter the Metaverse
- The Company will evaluate a plan to expand its business offerings to
the metaverse, which may be synergistic with its existing assets.
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 27/33Executive Team
Konrad Wasiela Rick Brace Ron Segev Raj Dewan Rob Kang
CEO & Founder Director Director Director Chief Financial Officer
• Founder of a global real estate • Past President of Rogers • Founding partner of Segev • Partner of McMillan’s • Served as the Director of
holdings and private equity Media (NYSE: ROG) LLP, top gaming firm Toronto & Hong Kong office Listings for the TSX Venture
company • Operated two multi-billion • Ranked as a Band 1 Gaming for Capital Markets & Exchange
• Former professional football dollar Sports Networks, TSN Lawyer – the highest Securities • Senior executive experience
player with the BC Lions, and Sportsnet and a Major ranking offered by • Prominent advisor to public with the TMX Group (Toronto
Saskatchewan Roughriders and TV Network CTV. Chambers and Partners. companies & investment Stock Exchange)
Montreal Alouettes • Built one of the world’s • Ron is also a General banks based in on going • Mr. Kang has also served on
• Former Director of BD for a leading sports production Member of the public and M&A in North the executive board of over
global transcription provider for facilities, Dome Productions. International Masters of America. 15 publicly traded
multiple international video • Negotiated multi-year Gaming Law • Advised Bharti Airtel on its companies
game publishers broadcast deals with major • Specialized in gaming and US$10.7B acquisition of • Chartered Accountant
sports leagues such as: esports law, multiple tier-1 Kuwait based Zain’s telecom Designation Holder,
NFL, NBA, MLB, NHL, FIFA, clients • Legal advisor to the Founder graduate from UBC
Olympics, Formula 1, Institute in Silicon Valley
NASCAR, and more.
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 28/33Executive Team
Eric Jodoin Wayne Silver Niall Maher JJ Steszewski Pedro Fernandes
CEO of GameAddik CEO of WPG CEO of Digital Motorsports Director EU Operations Director, K1CK Franchise
• Founder and CEO of • Started, bought, sold 25 • Technology executive & • 20 years of experience in • Over 20 years in esports
GameAddik, a top companies, including WPG and CEO with 20+ years of sport, 3 years in esports and gaming
advertising technology Encore, that are now part of experience in cloud • Founder of the Polish • K1CK Esports Club Founder,
company focused on the ESE. adoption and digital League of American former player for the Club
video game industry • Started WPG Racing in 2017 transformation. Football and its CED and currently Chairman
• Avid early adopter of • Key contracts with racing • Founder of Digital • Event Director of the 2019 • Expanded team roster into
technology such as cloud companies and OTT service Motorsports, one of the UCI Track Cycling World top esports games like
computing and digital • Started Phonetime and took largest ecommerce stores Championships League of Legends, CS:GO
assets. them public on TSX in 2001. for simulation racing. • MA in Microelectronics and and more
• Graduate from MIT in the • Grew to hundreds of million in • Past Vice President of nanoelectronics at Warsaw • Led K1CK team to over 800
Entrepreneur Masters revenue with 200+ staff offices Technology at SuMi TRUST University of Technology awards and 500 tournament
Program. on 5 continents Global Asset Services wins
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 29/33ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation
Comparables
~$77M
ESE Entertainment
~$1.5B ~$3.0B ~$502M ~$24.2B ~$2.5B
ESL FACEIT Keywords Enthusiast Take-Two Score Media and
Group* Studios Gaming Interactive Gaming**
Market Capitalization numbers in Canadian Dollars and as of February 24, 2022
*ESL Gaming and FACEIT merged and purchased by Saudi Arabian government-backed Savvy Gaming Group for a combined $1.5 billion, announced on January 24, 2022
**Score acquired by Penn National Gaming, Inc. (PENN: NASDAQ) for U.S.$2.0 billion on October 19, 2021, representing a valuation multiple of approximately 20x revenue 30/35Financial Performance
$9.0M
$8.03M
$32M $8.0M
$7.0M
Annual Revenue Run Rate $6.24M
Based on Fiscal Q1 2022 revenue
$6.0M
$5.0M
$4.23M
$4.0M
4069% $3.0M
Growth in Revenue $2.0M
from Fiscal Q1 2021 to Q1 2022 Financials
$1.0M $.72M
$.19M
$.0M
Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022
Does not include recent acquisition*
*Financial figures here do not include recently completed acquisition of 9327-7358 Quebec Inc. DBA GameAddik ("GameAddik")
All numbers are unaudited and in Canadian Dollars. Historical Financial performance does not guarantee future performance. Any financial projections are highly
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation speculative forward-looking information. Actual results are subject to significant risk and may differ materially from ESE’s expectations and financial projections. 31/33Capital Structure
and Overview
Name: ESE Entertainment Inc.
Symbols: TSXV: ESE
Acquisition of WPG Acquisition of GameAddik
OTCQB: ENTEF completes, April 14 completes, Feb. 14
Definitive Agreement with
Share Price: $1.08 WPG signed, Feb. 16 Acquisition of Frenzy
completes, Nov. 15
Public Float: ~39M Shares
Basic Market Cap: ~$77M Acquisition of K1CK
completes, Jan. 18
Acquisition of DMS
Insider Holdings: ~40% completes, Sept. 15
Total Shares Out: ~71M First Trading
Day: Aug.17,
Analyst Coverage: Canaccord 2020
Numbers as at March 23, 2022
All $ Figures are approximate and in CAD
Approximately 18 months since public listing
Tight Structure – Primed for Growth
ESE Entertainment Inc. (TSXV: ESE): Corporate Presentation 32/33ESE Entertainment Inc. TSXV: ESE Contact: Konrad Wasiela, CEO OTCQB: ENTEF Phone: +1 (778) 238-4988 Q1 Corporate Presentation Email: investors@esegaming.com
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