Tko Group Holdings, Inc. · NYSE:TKO

Tko — Endeavor Group Holdings — Merger or Acquisition (April 2023)

34 slides from Tko's merger presentation, Apr 3, 2023

  1. Slide 1: Endeavor

    ENDEAVOR W.

  2. Slide 2: Disclaimer (1/2)

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.2 Disclaimer (1/2) Cautionary Statement Regarding Forward-Looking Statements This communication, and oral statements made from time to time by our representatives may contain, contains forward-looking statements within the meaning of the Pri

  3. Slide 3: Disclaimer (2/2)

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.3 Disclaimer (2/2) Non-GAAP Financial Information In addition to the financials presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this presentation, and the accompanying oral presentation, include certain n

  4. Slide 4: Transaction Rationale

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.4 Transaction Rationale NewCo is a pure-play IP ownership company operating in some of the most attractive parts of the fast-growing global sports and entertainment ecosystem UFC and WWE are two complementary, iconic companies with leading b

  5. Slide 5: Transaction Overview

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.5 Transaction Overview Endeavor to form a $21B+ global pure-play live sports and entertainment Endeavor WWE company comprised of UFC and WWE Shareholders Shareholders UFC, which is owned by Endeavor, and WWE will form NewCo, a new 100% Owner

  6. Slide 6: NewCo Transaction Crystalizes Value Creation at UFC Since Acquisition

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.6 NewCo Transaction Crystalizes Value Creation at UFC Since Acquisition 2016 Enterprise Today’s Enterprise Combined NewCo Transaction Valuation Value1 Value Enterprise Value2 Summary $21.4B Enterprise Value2 $12.1B $9.3B $9.3B $12.1B Less Ne

  7. Slide 7: Path to Substantial Value Creation Tracks UFC Precedent

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.7 Path to Substantial Value Creation Tracks UFC Precedent Endeavor Flywheel Domestic and International Rights Net Operating Synergies1 Illustrative WWE Adj. EBITDA Illustrative WWE Adj. EBITDA (Pre Synergies) (Post Synergies) Note: 1. Net op

  8. Slide 8: An Integrated Global Sports and Entertainment Company

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.8 A N I N T E G R AT E D G L O B A L S P O R T S A N D E N T E R TA I N M E N T C O M PA N Y

  9. Slide 9: Global Portfolio of Premium Owned Assets and Integrated Set of Capabilities

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.9 Global Portfolio of Premium Owned Assets and Integrated Set of Capabilities Powered by 11,000+ employees across more than 30 countries1 Owned IP Represented IP2 Complementary Capabilities NewCo Note: 1. Employee and country information as

  10. Slide 10: Well Positioned Across Fast-Growing End Markets

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.10 Well Positioned Across Fast-Growing End Markets CONCERTS AND LIVE EVENTS GROW TH PROPELLED BY NEW SPORTS DEALS HIGHLIGHT THE VALUE OF PREMIUM RIGHTS DEMAND PARADIGM 2.8x Average Annual Value Rights Growth 12% YoY Growth in Live Sports and

  11. Slide 11: Connected Segments Drive Powerful Growth Across The Endeavor Flywheel

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.11 Connected Segments Drive Powerful Growth Across The Endeavor Flywheel – UFC posted record revenues, 21 consecutive sell-outs and its best NewCo Owned Sport Properties sponsorship year ever in 2022 Delivering Engaging Live Sports – Announc

  12. Slide 12: Strong Execution Since IPO

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.12 Strong Execution Since IPO Strong Financial Performance $5.3B $1.2B FY2022A Revenue FY2022A Adj. EBITDA 22% FY2022A Adj. EBITDA Margin Accretive Strategic M&A Divestitures Deleveraging Flexible Capital Net Leverage Allocation ~3.8x at YE

  13. Slide 13: Scaled and Diverse Revenue Mix with Strong Cash Flow Generation and a Healthy Balance Sheet

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.13 Scaled and Diverse Revenue Mix with Strong Cash Flow Generation and a Healthy Balance Sheet FY2022 Revenue FY2022 Adj. EBITDA2 Balance Sheet Total: $5.3B1 Total: $1.2B Net Leverage3 $M; % of Total $M; % of Total $1,332 25% $1,512 29% $648

  14. Slide 14: How Endeavor Creates Value For Stakeholders

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.14 How Endeavor Creates Value For Stakeholders Endeavor Has Delivered Double-Digit Revenue and Adj. EBITDA Growth1 Commitment to Prudent Balance On the Strength of its Asset Mix, Sheet Management and Flexible Operational Capabilities and Pos

  15. Slide 15: Investor Presentation

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.15

  16. Slide 16: Forming an Iconic Sports and Entertainment Company with a Large Global Fan Base

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.16 Forming an Iconic Sports and Entertainment Company with a Large Global Fan Base $0.6B T H ROW + G 2X ROW TH $0.4B X G $0.3B ~3 ADJ. EBTIDA¹ ADJ. EBTIDA¹ $0.1B FY2017 FY2022 FY2017 FY2022 OVER 1.5X GROWTH OVER 1.5X GROWTH FY2017-FY2022 REV

  17. Slide 17: Opportunity to Own Two Global Sports and Entertainment Leaders in a Single Company

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.17 Opportunity to Own Two Global Sports and Entertainment Leaders in a Single Company 5% 10% Consumer Products Consumer Products Must-watch, live and original content 11% 71% 75% Live Media Media Events 10% Live Events Large, young and diver

  18. Slide 18: Value of Sports and Live Entertainment Continues to Accelerate

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.18 Value of Sports and Live Entertainment Continues to Accelerate GLOBAL LIVE SPORTS REVENUE GLOBAL SPORTS MEDIA REVENUE GLOBAL SPORTS SPONSORSHIP REVENUE GR $87B CA GR 9% CA 8% $74B GR GR CA GR CA $67B CA 8% 6% 8% $60B $62B AGR C $51B 7% $5

  19. Slide 19: NewCo Has Differentiated Attributes Among Peers in a Large, Global and Growing Segment

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.19 NewCo Has Differentiated Attributes Among Peers in a Large, Global and Growing Segment High Engagement Global Growth Young and Diverse Fans Control of All Rights Lack of Teams / Team Owners Year-Round Content Note: Entities listed above r

  20. Slide 20: Leveraging Endeavor's Capabilities to Drive Value of Both Assets

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.20 Leveraging Endeavor’s Capabilities to Drive Value of Both Assets Endeavor and WWE have built a deep history and trusted partnership Attractive rights portfolio with highly contracted revenue base and visible growth further supported by up

  21. Slide 21: Multiple Avenues for Future Growth

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.21 MAXIMIZE MEDIA RIGHTS VALUE ENHANCE SPONSORSHIP OPPORTUNITIES ACCELERATE BRAND MULTIPLE AVENUES AND TALENT PLACEMENT, FOR FUTURE GROWTH PRODUCT LICENSING DEVELOP NEW FORMS OF CONTENT

  22. Slide 22: Leveraging Endeavor's Flywheel to Drive Value Creation

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.22 Leveraging Endeavor’s Flywheel to Drive Value Creation As evidenced by UFC success WHAT WE ACHIEVED WHAT WE BROUGHT CAPABILITIES GLOBAL FAN BASE +75M Entered new markets (France), investment in local Fan Base Growth EXPANSION Since Jan-20

  23. Slide 23: Leveraging Endeavor's Flywheel to Drive Value Creation

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.23 Leveraging Endeavor’s Flywheel to Drive Value Creation As evidenced by UFC success WHAT WE ACHIEVED WHAT WE BROUGHT CAPABILITIES Abu Dhabi, Atlantic City, SITE FEES / Melbourne, Newark, Perth, One of the most globally diverse event operat

  24. Slide 24: Operating Synergy Opportunity

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.24 Operating Synergy Opportunity $1B combined cost base (excluding COGS), of which ~50% appears highly addressable Expected $50-100M long-term annualized run-rate net operating synergies Majority of expected net operating synergies supported

  25. Slide 25: Key Financials

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.25 Key Financials Attractive combined financial profile and healthy balance sheet, prior to expected net operating synergies and revenue opportunities $2.4B 10% $1.0B 61% Revenue Revenue Growth Adj. EBITDA1 FCF3 Conversion4 (FY2022) (FY2019

  26. Slide 26: NewCo Capital Allocation Opportunities

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.26 NewCo Capital Allocation Opportunities Anticipated strong cash flow generation and healthy balance sheet allowing for flexible capital allocation policy ORGANIC INVESTMENTS CONTINUED DELEVERAGING OPPORTUNISTIC CAPITAL RETURN DISCIPLINED M

  27. Slide 27: Framing the NewCo Investment Opportunity

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.27 Framing the NewCo Investment Opportunity CATEGORY-DEFINING GLOBAL FAN BASE, DIFFERENTIATED AND BRANDS BETTER SCALE AND REACH ATTRACTIVE VALUE TOGETHER Over 700M UFC and 1.2B WWE global PROPOSITION Combines two iconic companies fans consum

  28. Slide 28: Seasoned Management Team with a Proven Track Record

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.28 Seasoned Management Team with a Proven Track Record Ariel Emanuel Vince McMahon Mark Shapiro Jason Lublin Endeavor and NewCo, CEO NewCo, Executive Chairman Endeavor and NewCo, President and COO Endeavor, CFO Andrew Schleimer Dana White La

  29. Slide 29: Appendix

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.29 APPENDIX

  30. Slide 30: UFC and WWE: Adjusted EBITDA and Free Cash Flow

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.30 UFC and WWE: Adjusted EBITDA and Free Cash Flow GAAP to Non-GAAP Reconciliations | $ Millions Notes: Figures as of FY2022. 1 Includes $170.6 million of capital expenditures related to WWE’s new headquarter facility for FY2022. Excluding t

  31. Slide 31: UFC and WWE: Net Leverage

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.31 UFC and WWE: Net Leverage $ Millions | FYE Dec

  32. Slide 32: Endeavor: Adjusted EBITDA and Free Cash Flow

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.32 Endeavor: Adjusted EBITDA and Free Cash Flow $ Millions

  33. Slide 33: Endeavor: Net Leverage

    I N V E S T O R P R E S E N TAT I O N A P R I L 2 0 2 3 PG.33 Endeavor: Net Leverage $ Millions

  34. Slide 34: Endeavor

    ENDEAVOR W.

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