Simplicity Esports And Gaming Company · OTC:WINR
Simplicity Esports And Gaming — I-AM CAPITAL ACQUISITION — SPAC Merger (September 2018)
39 slides from Simplicity Esports And Gaming's SPAC merger presentation, Sep 24, 2018
Slide 1: Investor Presentation Update: Smaaash Entertainment Inc.
Investor Presentation Update Smaaash Entertainment Inc. NASDAQ – SMSH September 21, 2018
Slide 2: About this Presentation
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 About this Presentation : This presentation (the “Presentation”) contemplates the potential investment by I - AM Capital Acquisition Company (“I - AM Capital”) in equity sec
Slide 3: Forward-Looking Statements
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 Forward - Looking Statements : This Presentation includes “forward - looking statements” regarding I - AM Capital and Smaaash that reflect their current views and informatio
Slide 4: 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 Appendix 4
Slide 5: 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 6: Introduction to I-AM Capital and Smaaash transaction
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 “Transacti on”) with Smaaash Entertainment Privat
Slide 7: Transaction overview, key dates and governance
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 ▪ Special Dividend Announced from I - AM: August 24,
Slide 8: 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 8
Slide 9: 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 Investment Highlights Cutting - Edge Development Capabilities & Proprietary IP Immersive & Differentiated Product Offering 3 Leader in Family Entertainment 4 Multiple, In -
Slide 10: Large & Growing Addressable Market with Attractive Secular Trends
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 & Growing Addressable Market with Attractive Secular Trends Large, High Growth Population 1 India is the fastest growing consumer market in the world
Slide 11: Large & Growing Addressable Market (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 34.8 24.5 20.0 17.5 16.0 14.9 14.2 13.1 2010 2011 2012 2013 2014 2015 2016 2017 1 11 Large & Growing Addressable Market with Attractive Secular Trends (cont’d) Overview Decl
Slide 12: Cutting-Edge Development Capabilities and Proprietary IP
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 and Proprietary IP ▪ 46 member qualified and experience
Slide 13: Cutting-Edge Development Capabilities and Proprietary IP (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 Cutting - Edge Development Capabilities and Proprietary IP (cont’d) U PCOMING L OCATIONS P RODUCT S ALES Menlo Park, NJ King of Prussia, PA Jeddah, Saudi Arabia 2 Product Sa
Slide 14: Immersive and Differentiated 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 BOND CELEBRATE PLAY REPEAT!!! ▪ Gender neutral content attracts wide audience Immersive and Differentiated Product Offering 3 Centers attract a broad demographic and encoura
Slide 15: Immersive and Differentiated Product Offering (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 Immersive and Differentiated Product O
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 Hyd
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 10 16 16 23 12 20 34 1 11 29 37 60 FY 2013 FY 2017 FY 2018 Current Future . . . With expansion Underway Across Brand Categories and Product Sales ▪ 46 person in - house R&D
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: Multiple, In-Place Growth Opportunities: Digital 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, In-Place Growth Opportunities: Digital 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 22
Slide 23: Attractive Unit Economics at 50.8% EBITDA margin
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% Old New New Old $1.2 $1.5 $0.6 $3.3 $0.7 $0.3 $0.1 $1.1 Game Cost Construction Cost Other Cost Total A Smaaash center offers attractive unit economics
Slide 24: Product Sales Forecast and EBITDA
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 25: 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 26: 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 26
Slide 27: Pro Forma Capitalization and 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) $ 277.2 Pro Forma Enterprise Va
Slide 28: Illustrative Valuation 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 ($ in millions except per share amounts) Key Drivers FY2020 EBITDA $29.2 $35.0 $40.0 $44.5 $44.6 $50.0 $55.0 ↓ ↓ ↓ ↓ ↓ ↓ ↓ Implied Public Investor Ownership w/ (w/o) Clawbac
Slide 29: 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 6.1x 11.9x 11.8x Smaaash Indian Family Entertainment Select US Leisure Companies 2018 - 20E EBITDA CAGR vs. EV / 2020E EBITDA (1) 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 10.0x 11.0x 1
Slide 30: 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 Investment Highlights Cutting - Edge Development Capabilities & Proprietary IP Immersive & Differentiated Product Offering 3 Leader in Family Entertainment 4 Multiple, In -
Slide 31: 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 31
Slide 32: Appendix A: Operations, Financial & Transaction Update
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 32 Appendix A: Operations, Financial & Transaction Update
Slide 33: Operations Update: Growing Smaaash Footprint
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 ▪ July 2018: Two new centers opened ( Thane and Gwalior) ▪ September 2018: One planned center opening (Jalandhar) ▪ October 2018: Four new centers with a total of 54,000 sf
Slide 34: Operations Update: Mall of America / Menlo Park
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% 10% 20% 30% 40% 50% 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 $0 $100 $200 $300 $400 $500 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 Operations Update: Mall of America / Menlo Park 34 H
Slide 35: Operations Update: Product Development / Digital Strategy
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 40 168 223 208 75 38 42 56 144 35 Operations Update: Product Development / Digital Strategy Mobile Second Screen Technology Fan Engagement Product R&D Team continues to produce new interactive games for
Slide 36: Financial Update: Monthly Run Rate EBITDA Bridge
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 ▪ Select India locations lost up to 10 business days due to heavy rains ▪ All India locations lost one day of business due to All India Strike ▪ Total Monthly Product Revenu
Slide 37: Transaction Update: Special Dividend Incentive
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 40 168 223 208 75 38 42 56 144 37 Transaction Update: Special Dividend Incentive Provided by I - AM Capital 600,000 share common stock dividend provides additional compensation to investors Source: Compa
Slide 38: Appendix B: Select Publicly Traded Companies
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 40 168 223 208 75 38 42 56 144 38 Appendix B: Select Publicly Traded Companies
Slide 39: Statistical Summary of Select Publicly Traded Companies
233 50 68 167 34 142 166 166 166 0 167 155 237 239 144 213 41 83 234 43 123 172 61 81 40 168 223 251 86 39 208 75 38 42 56 144 STATISTICAL SUMMARY | As of September 14, 2018 ($ in millions, except per share data) Stock 52 Week % 52-Wk Mrkt. Ent. Net Debt / EV / EBITDA EBITDA Growth Price High High C
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