A Leading International Esports Business

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A Leading International Esports Business

PREPARED BY GFINITY JUNE 2019

Gfinity Esports2 Gfinity Esports2

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Gfinity Esports3

Key investment highlights

01

0403

02A leading international esports business

Trusted independent esports partner

Leverage and create value with partners

Revamped growth strategy delivering


Growth of esports, fuelled by digitisation mega trend

1972

1st official video game competition - Spacewar

1980

Atari Space Invaders Championship

1981

Twin Galaxies formed – tracked top players scores on Space Invaders & Donkey Kong

1996

Battle by the Bay, first major Street Fighter tournament

2000’s

Explosion of internet cafes

2009

League of Legends launched 2010-12

Starcraft II, DOTA2, Counter Strike launched

2012

Gfinity founded 2017

F1 esports first full season

2019

Inaugural ePremier League

1997

Quake’s Red Annihilation, 2000+ entrants

Cyberathlete Professional League founded

2004

First FIFA Interactive World Cup 2010

Growth of Multi-player Online Battle Arena MOBA games

2011

Twitch founded

2014

Twitch acquired for $970m by Amazon

2018

Overwatch League media rights $45m

Dec ‘9516m internet

users

Dec ‘051,018m internet users

Dec ‘153,366m

internet users

March ‘194,383m internet

Fnatic, Team Dignitas, Optic Gaming, SK Telecom T1 and TSM esports teams founded

Gfinity Esports5

2.2 BILLION

People globally who play

video games

Large and growing global audience and market

2017 2018 2019e 2020e 2021e 2022e0

100

200

300

400

500

600

143

192

222

335

395

454

518

580

645

253

285

316

347

173 201 233 264 297

m

Esports enthusiasts Occasional viewers

0

30

60

90

120

150

180

USDm

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

6 3 5 9 1319

36

61

93

112

151

0

200

400

600

800

1000

1,200

1,400

1,600

1,800

2,000

2,200

USDm

2017 2018 2019e 2020e 2021e 2022e

Dedicated esports fan growth Prize money development Esports revenue growth

Media rights

Merch & tickets

Advertising Sponsorships Publisher fee

655865

1,096

1,3401,566

1,79072

823

231

161

501

395 MILLION

Global number of players

& enthusiasts in

2018

737

The number of major

global Esports events

in 2018

$151 MILLION

Prize money broke

$150 million mark for the

first time in 2018

$1.80 BILLION

Projected Esports

revenue by 2022

32%

Global Esports revenue

increase during 2018


Consumer always decides

SPENDMOBILE

EXPOSURE

PLAY WATCH

TALK

MOTIVATION

SOCIALISTA24%

ATHLETE3%

CONTROLLER10%

ASPIRER10%

WATCHER6%

Complex consumer landscape

• 900 million esports and competitive gaming engaged consumers

• Not a homogenous group

Proprietary solutions to generate long term sustainable value for the wider audience beyond smaller group of hardcore fans:

- insights led- targeted - clear vision of behaviours and motivations

*Consumer segmentation/definition proprietary to Gfinity

900 Million

Gfinity Esports7

Sports Rights Holders

Brands

Gfinity Esports7

Gfinity uniquely positioned in fragmented esports ecosystem

Consumers

Media

In a world of co-dependency Gfinity’s value is unparalleled in creating compelling experiences for next generation of digital consumers

The fragmented ecosystem requires end-to-end esports solution to build large sustainable new revenue streams. Gfinity delivers this:

Esports platform and expertise that drives engagement and profitability

Publishers

Access to proven esports and entertainment formats engaging a young audience

Media

Solutions that future proof franchise, connecting with valuable and hard to reachdemographic

Sports Rights Holders

Solutions that deliver memorable experiences, connects to hard to reach younger consumers

Ability to play, compete, be part of communities, and be entertained by engagingcontent

Brands

Consumers

Publishers


What we do

Esports Solutions

Strategic Client Management Design; Develop; Deliver

What We Do

Our Approach

What We Deliver

Our Difference

competitions Tournament Live & ancillary content

Competitive gaming

entertainment

Build community &engagement

Holistic solution development

Consumer insights

Proprietary tech platform Tribe World class

production

Creating long term, new business verticals in the virtual world

Advisory services

Long term value creation


Opportunity - evolution of financial model

Monetisation Of Esports Solutions

Other RevenuesMedia Rights AdvertisingSponsorship

Service Provision Partnership Model

Esports Solution

Publishers Rights Holders

Brands

Esports Solution

Publishers

Rights Holders

Brands

Gfinity contracted to create solution. Business client monetises Gfinity and partners own/co-own, create IP. Monetise and share commercial rights

Tickets, merch, virtual items, subscription

Gfinity Esports10

The Opportunity – transition from Service Provision to Partnership Model

Gfinity brings additional value to Publishers and Sports Rights Holders

Publishers

- Extend reach and create new revenue streams

- Complete technology platform & integrations

- World class execution across gaming genres

- Expertise in esports, media and content

Sports rights holders

- Create new business vertical in virtual world

- Connect physical and digital worlds

- Access next generation audiences

- Trusted end-to-end solution design, develop and deliver

Football Motorsports Other SportsSelectedcommercial rights

Rightsacquisition/JV

Rights partnershipTier 2

Tier 3

Tier 1

Tier 2

Tier 3

Indicative based on Gfinity segmentation

Gfinity Esports11

Case Study - Igniting a motorsports esports revolution

Formula 1 Esports Other Motorsports The Future

Design, develop and deliver long term strategic

esports solutions

Creating new consumer touch points

Proprietary solution for each rights holder to connect

with young and digital consumers

3 seasons designed, developed and delivered by

Gfinity

Creation of new virtual business vertical

New audience – 70% under the age of 34

1.1Bn number of motorsport fans

250 million gamers who love motorsports

Portfolio of global solutions targeting younger

audience

Proprietary IP and partner IP bridging the gap

between the real and virtual

Mainstream approach to expand addressable market

and grow number of fans

Gfinity Esports12

Case Study - Igniting a football esports revolution

EA Sports FIFA Other Football The Future

Gfinity designing, developing and delivering solutions

for a growing number of additional football rights

holders

Football clubs and leagues need solutions to address

the next generation fan

Multi-year relationship, growing 4x since inception

World class delivery of an increasing number publisher

owned esports programme

From Service Provision to include limited commercial

rights (tournament sponsorship)

500 million gamers who love football

Bridging the gap to 2.2bn soccer fans

Portfolio of global solutions targeting younger

audience

Leverage strong brands to grow Esports reach and

value

- New competitive gaming entertainment formats:

- Creative partner concepts

- Owned formats (IP) with commercial rights

Gfinity Esports13

One year on

Design, Develop, DeliverMotorsports; football; popular gamesPresence in USA

Refocused the business

Delivery on financial commitments

Significant increase in revenues

Improved margins

Stabilised cost base

Increasing share of commercial rights

Financial performance

Reprioritization of resourcesCommercial focus and strengthened team

Strategic client management

F1; EA Sports; Activision Blizzard

Growth in strategic partnerships

Premier League; Truxtun Capital; IndyCar

Strategic partners

Community growth

Intergration of RealSport

Media distribution channel


Four business priortiesPeople

Grow Owned/Shared IP

Strategic Client Management

Pathway to Breakeven

Consumer Focus

+ Creation of new business verticals in the virtual world

+ Acquire own/partnership esports and esports entertainment rights

+ Increase level of profit share and monetisation

+ Revenue growth through number and scale of strategic accounts

+ Focused deployment of resources to value add areas

+ Strong financial discipline

+ Building on strong platform for growth

+ Commercial focus

- 10 strategic partnerships

+ Deepen relationships across ecosystem

+ Insights driven

+ Test and learn across Gfinity community/tribe

+ Gfinity to become key media monetization partner

- 30 business partnerships

- 50 in partnership pipeline

+ Design; Develop; Deliver solutions

+ Shared monetization to transform operational scalability

Gfinity Esports15

Financial highlights and ambition

Financial characteristics

2016 2017 2018 LTM H1(19)

£1.4 £2.4

£4.3

£6.9

- Scalable business model driven by Gfinity value creation and profit sharing with stakeholders

- Opex is largely fixed due to historic investment in solutions, brand and content production capability

- Upside from partnership model driven by esports solution monetisation and IP sharing

RevenueFirst year end June

Mediumterm

Partnership driven revenue share model- Level of IP sharing and commercial rights- Size and scope of investment

Service provision- Number of clients- Size and scope of engagement

Financial ambition

- Target of break-even within 2021- Target group gross margin of 30-40%- Target EBITDA margin of 15-25%- Opex of £10-12m through the medium term

Gfinity Esports17

Senior Leadership Team

GrahamWallace

BryanHealy

PaulKent

AmandaLawson

JonathanHall

GLOBAL CHIEF OPERATIONS OFFICER

GLOBAL HEAD OF CLIENT SERVICESGLOBAL HEAD OF ESPORTS SOLUTIONS

P R E V I O U S LY

P R E V I O U S LYC O M P E T I T I V E G A M I N G P R E V I O U S LY

P R E V I O U S LY

MTV

Manchester City FCGlasgow Rangers FC

UFCWMGFIFA 2010 World Cup

20+ Years Experience in designing Esports solutions

UFC

ITV Sport

Saracens RFC

PA Consulting

Arthur Andersen

GLOBAL HEAD OF CONTENT

CHIEF FINANCIAL OFFICER

IMG

P R E V I O U S LY

HeinekenAmerican Express

GLOBAL BRAND & MARCOMNS OFFICER

John Clarke

Burson-Marsteller PR

GrahamWallaceEXECUTIVE CHAIRMAN

P R E V I O U S LY

GLOBAL BRAND OFFICER

UFC

Manchester City

Garry Cook

CHIEF EXECUTIVE OFFICER

P R E S I D E N T

Michael Jordan Brand, NIKE

Gfinity Esports18

Summary

Uniquely positioned in fragmented esports ecosystem. Focused on design, development and delivery of esports solutions for publishers, sports rights holders, brands and media companies. Driven by consumer insights.

Deepened long-term relationships with world class partners and added a number of new organisations to our client portfolio. Being chosen based on esports expertise and ability to create and execute global and large scale solutions

Leverage trusted partner franchises to co-create new long term business vertical and monetise fast growing media sector through rights management, IP development and end-to-end esports solutions and technology

New management team re-focused business. Strategic Client Management approach implemented. Deepened existing and added new strategic partnerships. Opened office in fast growing US market. Delivering on financial commitments.

A leading international esports business

Preferred and trusted independent esports partner

Leverage and create value with partners

Revamped growth strategy bearing fruits

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A Leading International Esports Business

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