Modern Times Group Mtg Ab Class A · OMXSTO:MTG_A
Modern Times Group Mtg Ab Class A — Investor Day (2017)
36 slides from Modern Times Group Mtg Ab Class A's investor day presentation, 2017
Slide 1: This Is Esports
[MTG Restricted] THIS IS ESPORTS
Slide 2: Video
[MTG Restricted] VIDEO
Slide 3: Vision & Mission
[MTG Restricted] VISION & MISSION ESL’s vision is to make esports the ESL VISION “ “ largest & most attractive global sport across multiple games “ ESL is esports ESL MISSION “ 3
Slide 4: What We Said During the Last Capital Markets Day
[MTG Restricted] WHAT WE SAID DURING THE LAST CAPITAL MARKETS DAY HIGHLIGHTS REACH / AUDIENCE Increase our global reach GEO FOOTPRINT Expand our geographical footprint LEAGUES / EVENTS Establish/develop new leagues and events across the globe MEDIA RIGHTS Expand into new distribution platforms PARTN
Slide 5: We Made Significant Progress This Year
[MTG Restricted] WE MADE SIGNIFICANT PROGRESS THIS YEAR 2017 ACHIEVEMENT SUMMARY REACH / AUDIENCE GEO FOOTPRINT PRODUCT MEDIA RIGHTS +33 (+19%) 172 205 2016 2017F Growth of global reach by 19% Expanded into Australia, Brazil, O&O growing from 40% to 63% in Media rights started to scale - total YoY r
Slide 6: ESL Strategy 2020
[MTG Restricted] ESL STRATEGY 2020
Slide 7: ESL Plays an Industry Long Term Game as the Ecosystem Brand
[MTG Restricted] ESL PLAYS AN INDUSTRY LONG TERM GAME AS THE ECOSYSTEM BRAND ESL ATTRACTS GAMERS CONNECTING THEM TO BRANDS VIA THE MOST COMPELLING CONTENT GROWTH ENGINE 2020 ZERO TO HERO OPEN THE ESPORTS GLOBAL NEW PRODUCT ECOSYSTEM CATEGORY GEOGRAPHICAL INNOVATIVE SYSTEM CHAMPION BRAND PRESENCE FOR
Slide 8: Zero to Hero Product System
[MTG Restricted] ZERO TO HERO PRODUCT SYSTEM CONSOLIDATE PYRAMID FROM AMATEUR TO PRO AND ESTABLISH WORLD RAKING SYSTEM ESL OWNED ESL CO-BRANDED WORLD RANKING ALL PLATFORMS • PC LEGENDARY The Intel • PS4 THE WORLD‘S BEST Grand Slam • Xbox PROFESSIONAL • Mobile • VR (coming up) ALL GAMES PRO • Counter
Slide 9: Open Ecosystem Champion
[MTG Restricted] OPEN ECOSYSTEM CHAMPION NURTURE ESPORTS ECOSYSTEM ADDING VALUE TO PUBLISHERS, DISTRIBUTORS AND PLAYERS GAME PUBLISHERS TEAMS DISTRIBUTORS FANS & LEAGUES / MEGA AUDIENCE EVENTS / CONTENT PRODUCTION BRANDS & ADVERTISERS 9
Slide 10: The Esports Category Brand
[MTG Restricted] THE ESPORTS CATEGORY BRAND CONTINUE BRAND DEVELOPMENT TO IGNITE EXPANSION INTO LARGER AUDIENCES 10
Slide 11: Global Presence for a Global Audience
[MTG Restricted] GLOBAL PRESENCE FOR A GLOBAL AUDIENCE ACCELERATE GEOGRAPHICAL EXPANSION INTO SEA, CHINA, LATAM AND CONSOLIDATE USA ODENSE JÖNKÖPING MALMÖ HAMBURG LEIPZIG COLOGNE DALLAS TOURS KATOWICE MONTREAL NORTH AMERICA NEW YORK LAS VEGAS SHANGHAI ATLANTA VALENCIA DENVER AUSTIN GENTING SYDNEY 11
Slide 12: New Innovative Formats
[MTG Restricted] NEW INNOVATIVE FORMATS ATTRACT MASS MARKET WITH NEW CONTENT, ENTERTAINMENT AND DISTRIBUTION FORMATS ESL organized first 2 PUBG Four new original tournaments: Gamescom programming esports Invitational and first series with Hulu stadium event at IEM Oakland Innovation for Intel and IO
Slide 13: Partnerships
[MTG Restricted] PARTNERSHIPS
Slide 14: We Create Stories – Re-imagine Content Marketing
[MTG Restricted] WE CREATE STORIES – RE-IMAGINE CONTENT MARKETING ESL IS A ONE-STOP-SHOP FOR ESPORTS WITH THE RIGHT TARGET GROUP, INVENTORY AND SERVICES RIGHT TARGET GROUP EXCEPTIONAL INVENTORY WIDE ESPORTS SERVICES 14 Note. Numbers related to German market specific pitch
Slide 15: Following the Champions League Logic – Global Exclusive Partners
[MTG Restricted] FOLLOWING THE CHAMPIONS LEAGUE LOGIC – GLOBAL EXCLUSIVE PARTNERS GROWING INTEREST AND THE UNMATCHED ESL GLOBAL PORTFOLIO LEAD TO SUCCESS 1 2 NON-ENDEMIC PARTNERS GROWING GLOBAL EXCLUSIVE PARTNERS 72% 2018 Expect to sign several more 83% partnerships of 83% +1MUSD 28% 17% 17% 2015 20
Slide 16: Mercedes-Benz @ESL One Hamburg
[MTG Restricted] MERCEDES-BENZ @ESL ONE HAMBURG RE-IMAGINING CONTENT MARKETING INTEGRATION AS PREMIUM PARTNER MERCEDES-BENZ ANALYST TRUCK MERCEDES-BENZ TEAM CARS & SHUTTLES MOST VALUABLE PLAYER AWARDED BY MERCEDES-BENZ GROW UP ROADSHOW WITH TEST DRIVING @ESL ONE 16
Slide 17: [MTG Restricted]
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Slide 18: Monetisation Model
[MTG Restricted] MONETISATION MODEL
Slide 19: Opportunities for Monetization Grow Rapidly
[MTG Restricted] OPPORTUNITIES FOR MONETIZATION GROW RAPIDLY GAMING IS A GLOBAL MEGATREND WITH ESPORT AS ITS DIGITAL SPORT +2.6BN +5% GAMERS (1) P.A. TO 2020 >150M +15% ESPORTS ENTHUSIASTS (2) P.A. 2016-20 3 USD ~2- 4x SPEND PER FAN (3) IN 2020 19 Source: Newzoo, Mary Meeker, ESA
Slide 20: We Are Now in Full Scaling Mode of Our Business
[MTG Restricted] WE ARE NOW IN FULL SCALING MODE OF OUR BUSINESS HIGH MARGIN MEDIA RIGHTS & SPONSORSHIPS ARE KEY DRIVERS GROW THE FOUNDATION Add more and scale existing Invest in brand to grow Deepest game EVENTS AUDIENCE PUBLISHERS to create more inventory and increase eyeballs relations globally S
Slide 21: ESS and O&O Product Approaches Are Complementary
[MTG Restricted] ESS AND O&O PRODUCT APPROACHES ARE COMPLEMENTARY PRODUCT MODEL EXPLAINED ESS O&O ESPORTS SERVICES OWN & OPERATED ESL OPERATES TOURNAMENTS AND EVENTS ON ESL OWNS AND OPERATES BEHALF OF GAME PUBLISHER INDUSTRY PARTNERS TOURNAMENTS, PLATFORMS AND EVENTS Full risk for initial setup inve
Slide 22: Business Mix Is Changing Towards Media Rights & Own IP
[MTG Restricted] BUSINESS MIX IS CHANGING TOWARDS MEDIA RIGHTS & OWN IP THE STRONGEST REVENUE AND BOTTOM LINE DRIVERS ARE SCALABLE 2016 2017 13% 10% 7% Advertisement 15% ESL SALES PER 46% 35% Media revenues REVENUE TYPE Sponsorship 14% B2C & other 18% Publishers 20% 22% B2C EXPANSION SPONSORSHIP MED
Slide 23: Growing O&O Business
[MTG Restricted] WE CONTINUE INVESTING IN O&O ESS (ESPORTS SERVICES) REMAINS IMPORTANT SALES SPLIT 37% 60% GROWING O&O BUSINESS 63% 40% 2014 2017 ESS O&O 23 Note: Excluding revenues not directly related to esports leagues & events
Slide 24: ESL One Success Story
[MTG Restricted] ESL ONE SUCCESS STORY WITH STRONG LARGE PARTNERS WE START GROW THE MONETIZATION OF EVENTS WE INVEST IN OUR EVENTS CREATING MORE INVENTORY TO MONETIZE 2016 2017 DRIVE REVENUES (sponsorships, media rights, advertisement, ticketing & merchandising) Frankfurt Hamburg ATTRACT PREMIUM PAR
Slide 25: An Event Is Usually Break-even in Yr3 and Scales Thereafter
[MTG Restricted] AN EVENT IS USUALLY BREAK-EVEN IN YR3 AND SCALES THEREAFTER HIGH MARGIN SPONSORSHIP AND MEDIA RIGHTS ARE KEY DRIVERS BEHIND SCALING O&O EVENTS TYPICAL EVENT LYFE CYCLE EVENT PROFITABILITY DRIVERS 1 Event cost rises 10-20% p.a. Break-even year 3 Viewership grows the more 2 establishe
Slide 26: 2018 Mega Events: Grow from 10 to 13
[MTG Restricted] 2018 MEGA EVENTS: GROW FROM 10 TO 13 OVERVIEW OF LARGE EVENTS 2018 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC DOTA DOTA DOTA MINOR MAJOR MAJOR ESL ONE ESL ONE ESL ONE ESL ONE ESL ONE ESL ONE ESL ONE GENTING KATOWICE IEM IEM IEM IEM KATOWICE 12 MATCH WEEKS NA 12 MATCH WEEKS EURO
Slide 27: Content and Distribution
[MTG Restricted] CONTENT AND DISTRIBUTION
Slide 28: Esports Media Rights Follow Traditional Sports
[MTG Restricted] ESPORTS MEDIA RIGHTS FOLLOW TRADITIONAL SPORTS WE ARE IN A GOOD POSITION TO GROW MEDIA RIGHTS REVENUES UNDERLYING MARKET TREND A HOLISTIC APPROACH ACROSS PLATFORMS Esports global Media rights market (MUSD) +59% 960 336 235 157 94 52 2016 2017 2018 2019 2020 2020 (optimistic) Source:
Slide 29: The Audiences Follows Great Content
[MTG Restricted] THE AUDIENCES FOLLOWS GREAT CONTENT ESL PRO LEAGUE SUCCESSFULLY MOVED FROM TWITCH TO YOUTUBE/FB AND GREW REACH ESL PRO LEAGUE IS A SUCCESS STORY AND FANS ARE LOVING IT Views (M) +17% 65 55 Season 4 Season 5 6K event SEASON 5 14M Hrs 510M visitors KPIS watched Social Finals imp. 29
Slide 30: +205M Unique Viewers Expected in 2017
[MTG Restricted] WE ALREADY HAVE A LARGE DIGITAL REACH OF ESL CONTENT ESL LIVE FORMATS AND CONTENT PACKAGES PERFORM ON DIVERSE PLATFORMS AND TERRITORIES +205M UNIQUE VIEWERS exp. in 2017 30 Source: Newzoo analysis
Slide 31: Publishers
[MTG Restricted] PUBLISHERS
Slide 32: ESL Game Publisher Cooperations Continue to Grow
[MTG Restricted] ESL GAME PUBLISHER COOPERATIONS CONTINUE TO GROW THE SUCCESSFUL ESPORTS LAUNCH OF NEW GAME TITLE PUBG IS A PERFECT EXAMPLE …AND WE’RE FIRST IN LINE FOR KEY EXISTING WE INCREASE RELATIONSHIP WITH PUBLISHERS ESPORTS TITLES AS WELL AS FOR UPCOMING Example new titles 2017 we started to
Slide 33: ESL/DreamHack Show the Leading Game Coverage in Esports
[MTG Restricted] ESL/DREAMHACK SHOW THE LEADING GAME COVERAGE IN ESPORTS COMPETITOR OVERVIEW 33
Slide 34: Summary
[MTG Restricted] SUMMARY
Slide 35: Take Aways Summary Before Q&A
[MTG Restricted] TAKE AWAYS SUMMARY BEFORE Q&A 1 ESL IS THE WORLD’S LEADING ESPORTS COMPANY AND WE CONTINUE TO GROW ESL IS THE GLOBAL CATEGORY BRAND AND PREFERRED CHOICE FOR VIEWERS, 2 PLAYERS, PARTNERS AND PUBLISHERS WE HAVE A STRONG GROWTH IN THE USAGE OF OUR PRODUCTS AND OUR IP HAS 3 PROVEN THAT
Slide 36: Q&A
[MTG Restricted] Q&A