Enthusiast Gaming Holdings Inc · TSX:EGLX
Enthusiast Gaming — Investor Presentation (October 2018)
25 slides from Enthusiast Gaming's investor presentation, October 2018
Slide 1: Enthusiast Gaming
Enthusiast Gaming October 2018 1
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS This corporate presentation (“Presentation”) is confidential and contains proprietary non-public information regarding Enthusiast Gaming Inc. (“Enthusiast Gaming”, the “Company”, “we”, “us” or “our”). This Presentation is for information purposes only and does not constitute an
Slide 3: Core Business Model
Enthusiast Gaming Core Business Model Network Media Events Over 1bn ad requests per week Platform of 70+ gaming Largest gaming expo in Canada websites Platform through Enthusiast Projected attendance of 40,000 in Gaming & affiliated publishing 75+ M visitors every month October 2018 partners 3
Slide 4: Investment Highlights
Enthusiast Gaming Investment Highlights Industry $100B+ gaming industry that is bigger than Hollywood and the music industry (dollars spent) Platform Platform of 70+ gaming content websites and 75+ M active visitors every month from 1 website and 20,000 in 2011 Generating over 1bn ad requests per we
Slide 5: Gaming Industry
Gaming Industry
Slide 6: Fastest Growing Industry
Enthusiast Gaming Fastest Growing Industry GAMING INDUSTY Mobile PC Console Significant growth in gaming market across all platforms 2.3B gamers across the globe will spend $137.9B on games in 2018 51% 28% of all consumer spending will come from China $70.3B 25% in 2018 $34.6B Consumer spend on game
Slide 7: Gaming Industry Growth by Region
Enthusiast Gaming Gaming Industry Growth by Region Graph: Newzoo Global Games Market Report April 2018 7
Slide 8: Bigger than Hollywood
Enthusiast Gaming Bigger than Hollywood Top 10 Grossing Box Office Movies vs. Top 10 Video Games Top 10 Movies Top 10 Video Games Avatar $2.8B Space Invaders $13.9B Titanic $2.2B Pac-Man $12.8B Star Wars: Force Awakens $2.1B Street Fighter II $10.6B Avengers: infinity War $2.0B World of Warcraft $8.
Slide 9: Media
Media
Slide 10: Growth Through Acquisition
Enthusiast Gaming Growth Through Acquisition Strategic growth strategy through acquisition which started in 2016 Realizing maximum monetization potential by acquiring and owning affiliated partners Increase the number of monthly visitors from ~2 million in 2015 to ~ 75 million currently Significantl
Slide 11: Recent Acquisition Strategy
Enthusiast Gaming Recent Acquisition Strategy RECENT ACQUISITION • Acquired in 2018 • 6.5 million monthly viewers • One million subscribers on YouTube • Former Editor Russ Pitts brought back as Editor-in-Chief • Zero Punctuation starring Ben “Yahtzee” Croshaw RECENT ACQUISITION • Acquired in 2017 •
Slide 12: Network
Network
Slide 13: Revenue Model
Enthusiast Gaming Revenue Model Advertisers targeting authentic gamers partner with Enthusiast Gaming Enthusiast’s gaming content websites are the leading platforms for brands targeting demographic: • Male, 18-34 years old, average over 10h a week playing video games Enthusiast’s network of 70+ webs
Slide 14: Revenue Model
Enthusiast Gaming Revenue Model DEMAND SIDE PROGRAMMATIC SUPPLY SIDE ADVERTISING MEDIA AD AD AGENCIES EXCHANGES NETWORKS Currently +1bn ad requests weekly LARGE ENTHUSIAST BRANDS OWNED/AFFILIATED CONTENT PUBLISHERS Source: Company Information 14
Slide 15: Events
Events
Slide 16: Gaming Live Expo
Enthusiast Gaming Enthusiast Gaming Live Expo EGLX is the largest Gaming Expo in Canada Launched first expo in 2015 as a grassroots gaming event, grown into the largest gaming expo in Canada Attended by 25,000 people in March 2018, up from 1,700 people in 2015 Projected attendance of 40,000 downtown
Slide 17: Top Gaming Conventions in the World
Enthusiast Gaming Top Gaming Conventions in the World Name Location Size Gamescom Germany 345k Brasil Game Show Brazil 300k Tokio Game Show Japan 270k ChinaJoy China 270k Igro Mir Russia 157k Penny Arcade Expo (PAX) US/Australia 70k EGLX Canada 40K 17
Slide 18: Corporate
Corporate
Slide 19: Significantly Increasing Top-line
Enthusiast Gaming Significantly increasing Top-line $12 $10.0 $8 $4 $3.4 $0.3 $0 2016 2017 2018F Expected revenues for 2018 at $10 M up from $0.3 M in 2016 2017 Source: Company Information 19
Slide 20: Valued at Significant Discount to Comparable Companies
Enthusiast Gaming Valued at Significant Discount to Comparable Companies Comparable Company Analysis MONTHLYUSERS IN A MILLION (1) Based on a valuation of $50 M Enthusiast Gaming | 19
Slide 21: Capitalisation Table
Enthusiast Gaming Capitalisation Table Cap Table Year Shares Price Per Share Capital % Founders 2014 10 Million 23% Friends/Family 2015 4 Million $0.13 $500k 9% Angel/Seed 2016 10 Million $0.20 $1.5 Million 23% Series A 2017 10 Million $0.47 $5 Million 25% RTO 2018 6.8Million $1.25 $8.5Million ~20%
Slide 22: Management Team
Enthusiast Gaming Management Team Menashe Kestenbaum Eric Bernofsky CEO and Founder COO, SVP, Finance Built his gaming blogs from scratch, Former head of M&A at Pelmorex (owner growing them into the largest Canadian of the Weather Network), overseeing a gaming network similar roll-up style strategy
Slide 23: Management Team
Enthusiast Gaming Management Team Alan Friedman Niero Gonzalez Capital Markets & Corporate Advisor Director, Content Experience facilitating many multi- Built one of the world’s largest gaming million dollar financings, going public websites from scratch, with its mascot transactions and corporate e
Slide 24: Investment Highlights
Enthusiast Gaming Investment Highlights North America’s fastest growing gaming company Operating in the fastest growing industry Cornering the advertising space in gaming Value-added acquisitions Owns largest gaming expo in Canada Significantly increasing top-line Valued at a significant discount to
Slide 25: Enthusiast Gaming
Enthusiast Gaming www.enthusiastgaming.com 25
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