The Leading International Esports business - Investor Presentation June 2019 Igniting an Esports revolution - Gfinity PLC
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The Leading
International Esports business
Igniting an Esports revolution
Investor Presentation June 2019
Important notice The information contained in this confidential document (“Presentation”) has been prepared by Gfinity PLC (the “Company”). It has not been verified and is subject to material updating, revision and further amendment. This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 and therefore it is being delivered for information purposes only to a very limited number of persons and companies who are persons who have professional experience in matters relating to investments and who fall within the category of person set out in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or are high net worth companies within the meaning set out in Article 49 of the Order or are otherwise permitted to receive it. Any other person who receives this Presentation should not rely or act upon it. 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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
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
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
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
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
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
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
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
10STRATEGY
Gfinity today – IP Portfolio
Esports Solutions: Intellectual Property
Entertainment Owned Events
Football Motorsport Other Games
Content & tournaments
11STRATEGY
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
12BUSINESS 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
13Financial 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
14Summary 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
15THANK YOU
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