Allied Gaming & Entertainment Inc. · NASDAQ:AGAE
Allied Gaming & Entertainment — Black Ridge Acquisition — ROTH Conference March 2019
19 slides from Allied Gaming & Entertainment's conference presentation, Mar 19, 2019
Slide 1: Allied Esports Entertainment ROTH Conference March 2019
© 2019 ALLIED ESPORTS ENTERTAINMENT, INC. Allied Esports Entertainment ROTH Conference March 2019
Slide 2: Disclaimer
PAGE 1 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. Disclaimer Neither Black Ridge Acquisition Corp. (“Black Ridge”), AEI/WPT LLC (“AEI/WPT”) nor any of their respective affiliates makes a ny representation or warranty as to the accuracy or completeness of the information contained in this presentation
Slide 3: Situation Overview
PAGE 2 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. • Premier public esports company • Traded on NASDAQ exchange • Requisite capital to execute on multiple avenues for growth, including: — Building additional esports arenas and trucks to host tournaments and top influencers — Signing sponsors and publi
Slide 4: Transaction presents a unique esports opportunity for investors
PAGE 3 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. Transaction presents a unique esports opportunity for investors (1) $50 million in contingent consideration, payable based on achieving a share price of at least $13.00 for 30 consecutive c ale ndar days within five years of transaction close. Investm
Slide 5: Pro Forma Capitalization and Sources and Uses
PAGE 4 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. Pro Forma Capitalization Cash $98.7 Debt -- Net Debt ($98.7) Market Capitalization (7) 312.4 Enterprise Value $213.8 EV / 2020E EBITDA 9.3x EV / 2021E EBITDA 3.2x (US$ and shares in millions) Estimated Sources Cash from BRAC Trust (3) $142.2 BRAC Equi
Slide 6: AESE Board and Management Team
PAGE 5 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. AESE Board and Management Team Board of Directors (1) Management Team Lyle Berman AESE: Chairman BRAC: Director • Sits on the Board of Golden Entertainment (NASDAQ:GDEN) • Formerly Chairman and CEO of Lakes Entertainment prior to its 2015 merger with
Slide 7: Esports is the Next Global Sports Industry
PAGE 6 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. Esports revenue and viewership growth outpace the broader gaming and entertainment markets, led by brand investment through sponsorship, advertising and media rights deals Source: Company filings and press releases, Mergermarket, Newzoo, Statista and
Slide 8: Esports Momentum vs. Mainstream Sports
PAGE 7 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. $88 $69 $52 $35 $2 114 65 270 231 335 -- 50 100 150 200 250 300 350 400 $ -- $20 $40 $60 $80 $100 $120 MLB NHL NFL NBA Esports Global Viewership (millions) Per Capita Revenue ($) Per Capita Revenue Global Viewership As viewership eclipses many traditi
Slide 9: Allied Esports Entertainment: A Complete Esports Entertainment Platform
PAGE 8 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. In - Person Experiences • Live events • Global property network • Event affiliates Allied Esports Entertainment A Complete Esports Entertainment Platform Interactive Services • Direct - to - consumer online tournament platform • Subscription offering
Slide 10: Allied Esports Entertainment Introduction
PAGE 9 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. Allied Esports Entertainment Introduction In - Person Experiences Interactive Services Multiplatform Content 1 2 3
Slide 11: Flagship – Esports Arena Las Vegas
PAGE 10 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. Esports Arena Las Vegas, located at Luxor Hotel & Casino, opened in March 2018 as the first dedicated esports arena on the Strip and is the Company’s flagship venue In - Person Experiences Flagship – Esports Arena Las Vegas 1 Retro Gaming Lounge Priv
Slide 12: Allied Esports' flagship property compared to other arena formats
PAGE 11 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. Allied Esports’ flagship property is state - of - the - art and provides fans a more intimate and interactive experience compared to other arena formats Primary Sport(s) N/A Esports Basketball / Hockey Primary Team(s) None None Max Capacity 500 (1) 1
Slide 13: Affiliates and Mobile Arenas
PAGE 12 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. In - Person Experiences Affiliates and Mobile Arenas 1 Affiliate centers and mobile arenas operate as a network under the AESE brand umbrella, bringing unique capability to deliver and broadcast live event programming to every community Mobile Arenas
Slide 14: Global Reach
PAGE 13 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. In - Person Experiences Global Reach 1 Strategic build - out of additional flagship arenas, continued roll - out of mobile arenas and expansion of affiliate network will expand AESE’s footprint and brands Note: Reflective of 2022E global property net
Slide 15: Multiplatform Content Overview
PAGE 14 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. Multiplatform Content Overview 2 AESE generates content for 24/7 consumption, including digital live stream, broadcast and cable, and social media short form content Live Streams Broadcast Shows Social Videos
Slide 16: Multiplatform Content Generation and Distribution
PAGE 15 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. Multiplatform Content Content Generation and Distribution 2 AESE’s content has a built - in audience for ratable monetization, allowing navigation of the full distribution landscape • AESE retains optionality in monetization of content via direct dis
Slide 17: CENTER subscription-based online platform
PAGE 16 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. CENTER is a subscription - based online platform where esports fans watch, play and win with top esports streamers 3 Interactive Services Watch, Play & Win User Acquisition Strategy Leverage first two pillars Streamer affiliate program Tournament and
Slide 18: Interactive Services – Representative KPIs
PAGE 17 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. AESE leverages scalable interactive services to deliver branded participant entertainment in the form of integrated programming, combining in - person, viewing and interactive experiences to reach fans and communities globally 3 Interactive Services
Slide 19: Financial Overview
PAGE 18 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. ($29.3) ($43.0) ($14.9) $38.2 $102.2 2018E 2019E 2020E 2021E 2022E 30.3 50.4 67.5 22.0 37.5 57.7 55.6 120.5 184.8 $19.9 $35.1 $107.9 $208.4 $310.0 2018E 2019E 2020E 2021E 2022E In - Person Experiences Multiplatform Content Interactive Services ($9.4)