Simplicity Esports And Gaming Company · OTC:WINR
Simplicity Esports And Gaming — I-AM CAPITAL ACQUISITION — SPAC Merger (June 2018)
33 slides from Simplicity Esports And Gaming's SPAC merger presentation, Jun 27, 2018
Slide 1: Investor Presentation Smaaash Entertainment Inc.
INVESTOR PRESENTATION Smaaash Entertainment Inc. NASDAQ – SMSH June 26, 2018
Slide 2: Table of Contents
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 40 168 223 208 75 38 42 56 144 I. Transaction Overview Table of Contents I. Introduction II. The Smaaash Growth Story III. Financial Overview IV. Transaction Overview 4
Slide 3: I. Introduction
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 40 168 223 208 75 38 42 56 144 I. Introduction I. Introduction 5
Slide 4: I-AM and Smaaash business combination introduction
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 ▪ I - AM Capital Acquisition Company (“I - AM”, NASDAQ: IAM), is pleased to discuss its announced business combination (the “Transaction”) with Smaaash Entertainment Private
Slide 5: Transaction Overview
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 ▪ Definitive Agreement Signed: May 3, 2018 ▪ Transaction Announced: May 8, 2018 ▪ Preliminary Proxy Filed: June 22, 2018 ▪ Target Closing: Q3, 2018 Overview ▪ Smaaash and I
Slide 6: Smaaash founded in 2012 by Shripal Morakhia
Smaaash was founded in 2012 by Shripal Morakhia to set in place his vision to actively engage people to un - pause their play button ▪ Smaaash has developed next - generation hardware and software to create unique, highly immersive and interactive entertainment games and applications ▪ Grown to oper
Slide 7: II. The Smaaash Growth Story
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 40 168 223 208 75 38 42 56 144 II. The Smaaash Growth Story 9
Slide 8: Key investment highlights
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 India’s Premier Family Entertainment Company Cutting - Edge Development Capabilities Proprietary, Immersive Product Offering 3 Leader in Family Entertainment 4 Multiple, In
Slide 9: Large and Rapidly Growing Addressable Market
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 300 550 2017 2025 Large and Rapidly Growing Addressable Market Large, High Growth Population 1 India is the fastest growing consumer market in the world, and offers attracti
Slide 10: Cutting-Edge Development Capabilities
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 40 168 223 208 75 38 42 56 144 VR Games Interactive VR Interactive + Competitive VR VR + AI VR + Real World Cutting - Edge Development Capabilities ▪ 46 member qualified and experienced in - house R&D te
Slide 11: ROSS ae —
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Slide 12: Cutting-Edge Development Capabilities (cont'd)
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 Smaaash engages its audience physically and emotionally by encouraging bonding and team development through group play, all year round Cutting - Edge Development Capabilitie
Slide 13: Cutting-Edge Development Capabilities: franchising and technology sales
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 Cutting - Edge Development Capabilities (cont’d) U PCOMING L OCATIONS P RODUCT S ALES Menlo Park, NJ King of Prussia, PA Jeddah, Saudi Arabia 2 Product Sales Existing Center
Slide 14: Hamleys Setup
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 40 168 223 208 75 38 42 56 144 Hamleys Setup 16
Slide 15: Proprietary, Immersive Product Offering
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 PLAY CELEBRATE BOND REPEAT!!! ▪ Gender neutral content attracts wide audience Proprietary, Immersive Product Offering 3 Centers attract a broad demographic and encourages fr
Slide 16: The Leader in Family Entertainment
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 The Leader in Family Entertainment Smaaash has pioneered the FEC segment in India and enjoys ~80% market share (1) Amritsar Chandigarh 1 1 NCR 5 Mumbai 1 Pune 1 3 Hyderabad
Slide 17: The Leader in Family Entertainment (cont'd)
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 1 29 32 60 10 16 18 23 11 12 13 34 60 FY 2013 FY 2017 FY 2018 Current Future Expansion Underway Across Brand Categories and Product Sales ▪ 46 person in - house R&D team has
Slide 18: Multiple, In-Place Growth Opportunities
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 Multiple, In - Place Growth Opportunities Build New Centers in India A Drive Product Sales B Expand Internationally through Franchising C D Launch Digital Platform Indian an
Slide 19: Highly differentiated digital product - B2B strategy
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 40 168 223 208 75 38 42 56 144 . . . Including a highly differentiated digital product - offering a B2B Strategy . . . Multiple, In - Place Growth Opportunities (cont’d) 5 ▪ Partnership with some of Indi
Slide 20: Multiple Growth Opportunities: B2C Strategy
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 Multiple, In - Place Growth Opportunities (cont’d) 5 ▪ Developed games based on Smaaash’s Proprietary IP in Soccer and Cricket; currently developing IP around both Basketbal
Slide 21: Proven and Experienced Leadership Team
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 Proven and Experienced Leadership Team Shripal Morakhia CEO & Founder Vishwanath Kotian CFO 6 Smaaash boasts a leadership team with a proven track record of building and gro
Slide 22: III. Financial Overview
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 40 168 223 208 75 38 42 56 144 III. Financial Overview 24
Slide 23: Smaaash center capex and opex comparison
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 $0.5 24.0% $0.3 36.0% $1.2 $1.5 $0.6 $3.3 $0.7 $0.3 $0.1 $1.1 Game Cost Construction Cost Other Cost Total Comparison of a Smaaash center demonstrates lower capex for future
Slide 24: Opex Initiatives to Drive Margin Growth
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 $40.0 $60.0 Guragon May '15 Seawoods May ' 18 $3.4 $0.8 Guragon May '15 Seawoods May ' 18 $110 $125 $100 $35 $18 $25 Cricket Superkeeper Finger Coaster Opex Initiatives to D
Slide 25: Product Sales Forecast
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 $0.2 $0.8 $2.5 $4.9 $6.3 $8.1 67% 33% 49% 40% 40% 40% FY16 FY17 FY18 FY19 FY20 FY21 Company to utilize global access and international recognition of Smaaash brand to furthe
Slide 26: Robust Historical and Projected Growth
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 40 168 223 208 75 38 42 56 144 $1 $4 $8 $18 $29 $45 $68 2016A 2017A 2018E Current Pro Forma Run Rate FY1 2020P 2021P $8 $16 $26 $104 $148 $207 $2 $5 $12 $16 $20 $18 $31 $116 $164 $227 2016A 2017A 2018E F
Slide 27: IV. Transaction Overview
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 40 168 223 208 75 38 42 56 144 IV. Transaction Overview 29
Slide 28: Pro Forma Capitalization & Ownership
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 Pro Forma Capitalization (Diluted) (1) Pro Forma Cash (2) $50.3 Debt ( Smaaash ) 45.1 Net Debt (5.2) Equity Capitalization at Closing (3,4,5) $269.8 Pro Forma Enterprise Val
Slide 29: Select Transaction Considerations and Clawback Provision
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 Select Transaction Considerations Clawback Provision Illustration ▪ Capital investments to accelerate growth through securing locations – India – expand presence physically
Slide 30: Valuation Considerations
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 5.9x 9.7x 10.8x 10.1x Smaaash Indian Family Entertainment Select US Leisure Companies Median EV / 2020E EBITDA (3) 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x 0.0% 10.0% 20.0% 30.0% 40
Slide 31: Q&A
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 Q&A Cutting - Edge Development Capabilities Proprietary, Immersive Product Offering 3 Leader in Family Entertainment 4 Multiple, In - Place Growth Opportunities 5 Proven and
Slide 32: Appendix
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 40 168 223 208 75 38 42 56 144 Appendix 34
Slide 33: Select Publicly Traded Companies Statistical Summary
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 Select Publicly Traded Companies STATISTICAL SUMMARY | As of June 22, 2018 ($ in millions, except per share data) Stock 52 Week % 52-Wk Mrkt. Ent. Net Debt / EV / EBITDA EBI