Enthusiast Gaming Holdings Inc · TSX:EGLX
Enthusiast Gaming — Investor Presentation (November 2018)
27 slides from Enthusiast Gaming's investor presentation, November 2018
Slide 1: Enthusiast Gaming
TSX.V: EGLX Enthusiast Gaming November 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 Advertising Content Events 12bn ad requests per month Platform of 80+ gaming Largest gaming expo in Canada websites Platform through Enthusiast Attendance of +30,000 in October Gaming & affiliated publishing 75+ M visitors every month 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 80+ gaming content websites and 75+ M active visitors every month from 1 website and 20,000 in 2011 Generating ~ 12bn ad requests per mont
Slide 5: Gaming Industry
Gaming Industry
Slide 6: Fastest Growing Industry
Enthusiast Gaming Fastest Growing Industry GAMING INDUSTRY Mobile PC Console Significant growth in gaming market across all platforms Video Gaming now $180Bn industry 51% 2.3B gamers across the globe will spend $137.9B on $70.3B 25% games in 2018 $34.6B Global games market revenues were $70.6B in 20
Slide 7: North America Gaming Industry
Enthusiast Gaming North America Gaming Industry Enthusiast network has +75m visitors in network. Significant potential to capitalize on growing online gaming network Graph: Newzoo Global Games Market Report 7 2018
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: Content
Content
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: Key Acquisitions
Enthusiast Gaming Key Acquisitions 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 • Over 1 bill
Slide 12: Strategic Growth through Acquisitions
Enthusiast Gaming Strategic Growth through Acquisitions Recent Acquisitions in 2018 Feb 1, 2018 March 15, 2018 July 6, 2018 Nov 14, 2018 PIXELFAME DAILYESPORTS INCGAMERS OPERATION SPORTS Video game Leading news, opinion, Online news site for Largest online sports content for entertainment site for g
Slide 13: Advertising
Advertising
Slide 14: 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 15: Revenue Model
Enthusiast Gaming Revenue Model DEMAND SIDE PROGRAMMATIC SUPPLY SIDE ADVERTISING MEDIA AD AD AGENCIES EXCHANGES NETWORKS Currently 12bn ad requests monthly LARGE ENTHUSIAST BRANDS OWNED/AFFILIATED CONTENT PUBLISHERS Source: Company Information 15
Slide 16: Events
Events
Slide 17: 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 Attendance of 30,000 downtown Toronto in October 2018. Sold out and at capacity on Saturday Looking at opport
Slide 18: 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 Tokyo Game Show Japan 270k ChinaJoy China 270k Igro Mir Russia 157k Penny Arcade Expo (PAX) US/Australia 70k EGLX Canada 30K 18
Slide 19: Corporate
Corporate
Slide 20: 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 20
Slide 21: Valued at a Significant Discount to Comparable Companies
Enthusiast Gaming Valued at a Significant Discount to Comparable Companies Comparable Company Analysis MONTHLYUSERS IN A MILLION (1) Based on a valuation of $50 M Enthusiast Gaming | 19
Slide 22: Share Structure
Enthusiast Gaming Share Structure Enthusiast Gaming Holdings Inc. TSX.V: EGLX Market Cap: ~ 43 M Shares issued & Outstanding 43.5 million Convertible Debentures 9 million Warrants 17.3 million Options 3.6 million Fully Diluted 73.4 million 22
Slide 23: Capitalisation Table
Enthusiast Gaming Capitalisation Table Cap Table Year Shares Price Per Capital Share Founders 2014 10 Million Friends/Family 2015 4 Million $0.13 $500k Angel/Seed 2016 10 Million $0.20 $1.5 Million Series A 2017 10 Million $0.47 $5 Million RTO 2018 6.8 Million $1.25 $8.5Million Convertible Debenture
Slide 24: 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 25: 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 26: 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 27: Enthusiast Gaming
Enthusiast Gaming www.enthusiastgaming.com 27
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