Rivalry Corp. · TSXV:RVLY
Rivalry — Investor Day (October 2022)
71 slides from Rivalry's investor day presentation, Oct 12, 2022
Slide 1: Investor Day
INVESTOR DAY October 2022
Slide 2: Disclaimer
DISCLAIMER Unless otherwise stated, all figures are expressed in Canadian dollars. IMPORTANT – YOU MUST READ THE FOLLOWING BEFORE CONTINUING: The information contained in this document has been prepared by Rivalry Corp. (formerly PMML Corp.) (the “Company”) and contains information pertaining to the
Slide 3: Disclaimer Continued
DISCLAIMER CONTINUED These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. In addition, even if the outcome and financial effects of the plans and events described herein are consistent with the forward-looking sta
Slide 4: Opening Remarks
RIVALRY INVESTOR DAY OPENING REMARKS 4
Slide 5: Building the Defining Betting Experience for the Next Generation
BUILDING THE DEFINING BETTING EXPERIENCE FOR THE NEXT GENERATION 5
Slide 6: Average Bettor Age vs Average Viewer Age
vs AVERAGE BETTOR AGE AVERAGE BETTOR AGE 18-25 35-45 AVERAGE VIEWER AGE AVERAGE VIEWER AGE 23 49 RIVALRY INVESTOR DAY 6
Slide 7: Today's Key Themes
TODAY’S KEY THEMES RIVALRY INVESTOR DAY PEOPLE & Operational Deliberate & Innovation TALENT excellence thoughtful Approach 7
Slide 8: Betting Handle
BETTING (C$MM / YEAR) HANDLE $250 RIVALRY INVESTOR DAY 217.4 $200 $150 $100 78.2 $50 25.9 (1) The Company defines “Betting 0.5 2.7 Handle” as the total dollar value $0 accepted in wagers, adjusted for 2018 2019 2020 2021 Q2 + Q3 2022 cancellations and corrections. Annualized Run Rate 8
Slide 9: Reported Revenue
REPORTED (C$MM / YEAR) REVENUE $30 RIVALRY INVESTOR DAY $25 24.9 $20 $15 11.1 $10 $5 (1) Please see "Cautionary Note 1.5 Regarding Forward-Looking <0.1 0.5 Information and Forward-Looking $0 Statements" and "Cautionary Note 2018 2019 2020 2021 Q2 + Q3 2022 Regarding Future-Oriented Financial 1 Annua
Slide 10: Agenda
AGENDA 1 | Opening Remarks RIVALRY INVESTOR DAY 2 | Financial Overview 3| The Rivalry Experience: Brand 4 | The Rivalry Experience: Product 5 | Talent & Culture 6 | A Look Ahead 7 | Question & Answer 10
Slide 11: Crawl - Walk - Run
CRAWL - WALK - RUN RIVALRY INVESTOR DAY Marketing Activity Traditio nal Spor tsbook Crawl walk RUN Time in Market 11
Slide 12: Crawl - Walk - Run
CRAWL - WALK - RUN RIVALRY INVESTOR DAY Crawl walk RUN Proof of concept Unit economics Positive, margin-enhanced unit economics hit breakeven unit economics RIVALRY HAS ACHIEVED PROFITABLE UNIT & MARKET LEVEL ECONOMICS AT SCALE IN MULTIPLE JURISDICTIONS 12
Slide 13: Agenda
AGENDA 1 | Opening Remarks RIVALRY INVESTOR DAY 2 | Financial Overview 3 | The Rivalry Experience: Brand 4 | The Rivalry Experience: Product 5 | Talent & Culture 6 | A Look Ahead 7 | Question & Answer 13
Slide 14: Agenda
AGENDA 1 | Opening Remarks RIVALRY INVESTOR DAY 2 | Financial Overview 3| The Rivalry Experience: Brand 4 | The Rivalry Experience: Product 5 | Talent & Culture 6 | A Look Ahead 7 | Question & Answer 14
Slide 15: Agenda
AGENDA 1 | Opening Remarks RIVALRY INVESTOR DAY 2 | Financial Overview 3| The Rivalry Experience: Brand 4 | The Rivalry Experience: Product 5 | Talent & Culture 6 | A Look Ahead 7 | Question & Answer 15
Slide 16: Agenda
AGENDA 1 | Opening Remarks RIVALRY INVESTOR DAY 2 | Financial Overview 3| The Rivalry Experience: Brand 4 | The Rivalry Experience: Product 5 | Talent & Culture 6 | A Look Ahead 7 | Question & Answer 16
Slide 17: Agenda
AGENDA 1 | Opening Remarks RIVALRY INVESTOR DAY 2 | Financial Overview 3| The Rivalry Experience: Brand 4 | The Rivalry Experience: Product 5 | Talent & Culture 6 | A Look Ahead 7 | Question & Answer 17
Slide 18: Financial Overview
RIVALRY INVESTOR DAY OVERVIEW FINANCIAL 18
Slide 19: Highlights: First Year as a Public Company
HIGHLIGHTS: FIRST YEAR AS A PUBLIC COMPANY RIVALRY INVESTOR DAY 203% 98% 60% User Base BETTING HANDLE Revenue YoY Increase YoY Increase YoY Increase (Q2 2022) (Q2 2022) (q2 2022) 19
Slide 20: Q3 2022 Preliminary Results Significant YoY Growth
Q3 2022 PRELIMINARY RESULTS SIGNIFICANT YOY GROWTH RIVALRY INVESTOR DAY 277% 203% 93% User Base BETTING HANDLE Revenue YoY Increase YoY Increase YoY Increase (Q3 2022) (Q3 2022) (q3 2022) 1 (1) Please see "Cautionary Note Regarding Forward-Looking Information and Forward-Looking 20 Statements" and "
Slide 21: Disciplined Approach to Capital Allocation
DISCIPLINED APPROACH TO CAPITAL ALLOCATION RIVALRY INVESTOR DAY Operating model prioritizes profitable unit economics Profitable at scale in multiple jurisdictions Significant internal rigor around return on marketing spend Look for gross profit per marketing dollar >1.0x in all markets prior to ramping
Slide 22: Financial Impact of New Products
FINANCIAL IMPACT OF NEW PRODUCTS RIVALRY INVESTOR DAY Launched first third-party casino game in Q3 2022 Casino diversifies revenue and reduces seasonality Casino results support stabilized margins, smoothing out the natural swings associated with a sportsbook-only business New games and user experienc
Slide 23: Rivalry Investor Day
RIVALRY INVESTOR DAY rivauRy ° me: vate) ©, B 2 Aviator Rushlane Sateen: R. iy Bom Squad fi Courier Sweeper Penalty shootout Wheel of Time Launch exe
Slide 24: Embracing a Compliance Culture
EMBRACING A COMPLIANCE CULTURE RIVALRY INVESTOR DAY Highly regulated, reporting to three regulators and three independent auditing firms Institutional financial and reporting discipline, driven by efficient internal communication 24
Slide 25: RIVALRY INVESTOR DAY
RIVALRY INVESTOR DAY 25
Slide 26: Agenda
AGENDA 1 | Opening Remarks RIVALRY INVESTOR DAY 2 | Financial Overview 3 | The Rivalry Experience: Brand 4 | The Rivalry Experience: Product 5 | Talent & Culture 6 | A Look Ahead 7 | Question & Answer 26
Slide 27: The Rivalry Experience: Brand
THE RIVALRY EXPERIENCE: BRAND RIVALRY INVESTOR DAY 27
Slide 28: Connecting with the Next Generation
CONNECTING WITH THE NEXT GENERATION RIVALRY INVESTOR DAY Just over 80% of Rivalry’s active users are < 30 years old, a cohort that represents 40% of the global population The average Rivalry customer is just beginning their lifecycle and have significant upside as they mature as a bettor 28
Slide 29: Rivalry Monthly Active Bettors by Age
RIVALRY MONTHLY ACTIVE BETTORS BY AGE % of MAB RIVALRY INVESTOR DAY 10% 8% Rivalry’s customer demographic is weighted toward Gen Z bettors, with users aged 18-24 representing 6% +55% of Rivalry’s MABs, comparable to next gen entertainment platforms like TikTok. 4% 2% 0% 20 25 30 35 40 45 50 55 60 Ag
Slide 30: Unmistakably Rivalry: Genesis of the Brand
RIVALRY INVESTOR DAY UNMISTAKABLY RIVALRY GENESIS OF THE BRAND
Slide 31: Influencer Marketing
INFLUENCER MARKETING RIVALRY INVESTOR DAY 31
Slide 32: Partnership Ecosystem
PARTNERSHIP ECOSYSTEM RIVALRY INVESTOR DAY INFLUENCERS TEAM SPONSORSHip 32
Slide 33: Consistency Along the Customer Journey
CONSISTENCY ALONG THE CUSTOMER JOURNEY RIVALRY INVESTOR DAY Brand-aligned and responsible customer engagement, including user re-engagement and retention practices Our customer service “Heroes” culturally meet Rivalry users all over the world in an endemic and authentic voice 33
Slide 34: RIVALRY INVESTOR DAY
RIVALRY INVESTOR DAY 34
Slide 35: Passion for the Brand
PASSION FOR THE BRAND RIVALRY INVESTOR DAY 35
Slide 36: A Brand Is More Than a Logo on a T-Shirt
A BRAND IS MORE THAN A LOGO ON A T-SHIRT RIVALRY INVESTOR DAY 36
Slide 37: RIVALRY INVESTOR DAY
RIVALRY INVESTOR DAY 37
Slide 38: Agenda
AGENDA 1 | Opening Remarks RIVALRY INVESTOR DAY 2 | Financial Overview 3| The Rivalry Experience: Brand 4 | The Rivalry Experience: Product 5 | Talent & Culture 6 | A Look Ahead 7 | Question & Answer 38
Slide 39: The Rivalry Experience: Product
THE RIVALRY EXPERIENCE: PRODUCT RIVALRY INVESTOR DAY 39
Slide 40: Extending the Brand Experience
EXTENDING THE BRAND EXPERIENCE RIVALRY INVESTOR DAY 40
Slide 41: Deliberate Design
DELIBERATE DESIGN RIVALRY INVESTOR DAY Gaming-enthusiasts building an entertaining and familiar experience for betting on esports Entertainment is at the core of Rivalry’s experience which ties from the unmistakable brand through to the betting and casino game interface 41
Slide 42: Betting User Experience
BETTING USER EXPERIENCE RIVALRY INVESTOR DAY 42
Slide 43: Novel Experiences
NOVEL EXPERIENCES RIVALRY INVESTOR DAY Customer desires trending in favor of multiple high-velocity, high-excitement betting experiences Unique micro-betting markets, peer-to-peer betting and player vs. book experiences Micro experiences break through to non-gambling customer touchpoints (e.g. Chick
Slide 44: Traditional Sports
RIVALRY INVESTOR DAY SPORTS TRADITIONAL 44
Slide 45: Beyond a Sportsbook
BEYOND A SPORTSBOOK RIVALRY INVESTOR DAY 45
Slide 46: Mobile App & Casino
MOBILE APP & CASINO RIVALRY INVESTOR DAY Anticipate to launch Rivalry mobile app in regulated markets in Q4 2022 Highly curated and original casino experience that continues to evolve through our innovation cycles 46
Slide 47: Rivalry Games
RIVALRY GAMES RIVALRY INVESTOR DAY Building original casino games in house 47
Slide 48: Proprietary Tech Stack
PROPRIETARY TECH STACK RIVALRY INVESTOR DAY Conscious decision to be builders, not integrators Rivalry’s core components are built from scratch Curated experiences with deliberate user interface Owned tech stack makes Rivalry more agile and fluid, allows for quick exchanges and customer delight. 48
Slide 49: Uniquely Built Team
UNIQUELY BUILT TEAM RIVALRY INVESTOR DAY Working style at Rivalry that attracts non-traditional talent looking to innovate Focused on building the future, not looking in the rearview mirror as to what has been done already 49
Slide 50: Agenda
AGENDA 1 | Opening Remarks RIVALRY INVESTOR DAY 2 | Financial Overview 3| The Rivalry Experience: Brand 4 | The Rivalry Experience: Product 5 | Talent & Culture 6 | A Look Ahead 7 | Question & Answer 50
Slide 51: Talent & Culture
RIVALRY INVESTOR DAY CULTURE TALENT & 51
Slide 52: Building Our Team
BUILDING OUR TEAM RIVALRY INVESTOR DAY Team built around a passion for, and belief in, esports Deep love of building new products for the next generation of esports and sports bettors Team fully buys into a performance culture that promotes talented people to perform at their best 52
Slide 53: Responsible Gambling
RESPONSIBLE GAMBLING RIVALRY INVESTOR DAY 53
Slide 54: Attracting Talent
ATTRACTING TALENT RIVALRY INVESTOR DAY Rivalry’s tech stack and originally developed IP present exciting and innovative engineering challenges The brand, media content, and user engagement, are shaped-by and built-by our target demographic Team culture of trust, radical transparency, and opportuniti
Slide 55: Retaining Talent
RETAINING TALENT RIVALRY INVESTOR DAY We retain talent and experience very low turnover rates Offer a constructive career trajectory where everyone can develop their professional skills and feel empowered through agency 55
Slide 56: RIVALRY INVESTOR DAY
RIVALRY INVESTOR DAY 56
Slide 57: What's Next
WHAT’S NEXT RIVALRY INVESTOR DAY Continue to develop a Rivalry culture that attracts great talent from all over the world Extending our talent pool will drive accelerated output Maintaining an operations team to apply Rivalry’s repeatable playbook for launching in new markets 57
Slide 58: Agenda
AGENDA 1 | Opening Remarks RIVALRY INVESTOR DAY 2 | Financial Overview 3| The Rivalry Experience: Brand 4 | The Rivalry Experience: Product 5 | Talent & Culture 6 | A Look Ahead 7 | Question & Answer 58
Slide 59: A Look Ahead
RIVALRY INVESTOR DAY AHEAD A LOOK 59
Slide 60: Rivalry Product Roadmap
RIVALRY PRODUCT ROADMAP RIVALRY INVESTOR DAY 60
Slide 61: Differentiated Experience
DIFFERENTIATED EXPERIENCE RIVALRY INVESTOR DAY 61
Slide 62: Let's Play One of Our Original Rivalry Games
ae LET'S PLAY ONE OF OUR BBR «ORIGINAL RIVALRY GAMES! CC... NEXPLA’
Slide 63: Value-Creating Catalysts
VALUE-CREATING CATALYSTS RIVALRY INVESTOR DAY Entering peak activity season on the esports calendar Near term product releases: Mobile app, third-party casino games, and new originally created games Continued YoY leading growth into strong outlook for calendar 2023 63
Slide 64: Financial Outlook
FINANCIAL OUTLOOK RIVALRY INVESTOR DAY Casino products ramping up adds diversification and helps normalize margins Careful management of internal KPIs with a prioritization on profitability Continuous focus on operational leverage to deliver compound returns on spend 64
Slide 65: Corporate Development
CORPORATE DEVELOPMENT RIVALRY INVESTOR DAY All growth to-date has been organic and coming from markets with multiple years of Rivalry’s presence Significant upside as additional newly-entered markets begin to reflect mature-market KPIs Additional upside as Rivalry’s (currently) average bettor begins t
Slide 66: Three Pillars of Growth
THREE PILLARS OF GROWTH RIVALRY INVESTOR DAY RIVALRY RIVALRY RIVALRY GAMES Product/ MEDIA & ip CONTENT 66
Slide 67: Key Takeaways
KEY TAKEAWAYS RIVALRY INVESTOR DAY Our approach to growth has been deliberate with a high level of tact and surgical-level precision Authenticity to the Rivalry brand has enabled success with our target demographic woven throughout the company culture 67
Slide 68: Investment Highlights
INVESTMENT HIGHLIGHTS RIVALRY INVESTOR DAY Deliberate approach to brand building that has made 1 Rivalry the most engaged esports betting brand globally Well capitalized with an operational discipline that prioritizes profitable unit economics above all Multiple markets where Rivalry is operational a
Slide 69: Investment Highlights
INVESTMENT HIGHLIGHTS RIVALRY INVESTOR DAY Product innovation through wholly-owned and developed IP that is creating market leadership among Gen Z bettors 80% of Rivalry’s active users are < 30 years old, a cohort that represents 40% of the global population Team culture that rewards high performanc
Slide 70: Question & Answer
QUESTION TO ASK A QUESTION: & ANSWER Type yo u r q u e s on the webcast co-8 t io n 1 in t o t he Q&A box nsole and hit 88-886-7786 “S u b m it ” O r d ia l -764-8658 RIVALRY INVESTOR DAY l f r e e ) o r (+ 1 ) 4 1 6 (tol 70
Slide 71: Thanks for Tuning In
THANKS FOR TUNING IN inve s tor s @ r i va lry.c o m