Allied Gaming & Entertainment Inc. · NASDAQ:AGAE
Allied Gaming & Entertainment — Black Ridge Acquisition — SPAC Merger (May 2019)
32 slides from Allied Gaming & Entertainment's SPAC merger presentation, May 7, 2019
Slide 1: Project Colosseums Investor Presentation
© 2019 ALLIED ESPORTS ENTERTAINMENT, INC. Project Colosseums Investor Presentation May 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: Contents
01 Insert divider title 3 A Insert divider title 7 Contents Contents © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. 1 Executive Summary 3 2 Company Overview 13 3 Financial Summary 28
Slide 4: Executive Summary
© 2019 ALLIED ESPORTS ENTERTAINMENT, INC. 1 Executive Summary
Slide 5: Situation Overview
PAGE 4 © 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 publishi
Slide 6: Transaction presents a unique esports opportunity for investors
PAGE 5 © 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 7: Pro Forma Capitalization
PAGE 6 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. Pro Forma Capitalization Cash $98.0 Debt -- Net Debt ($98.0) Market Capitalization (7) 315.1 Enterprise Value $217.1 EV / 2021E Adjusted EBITDA 3.3x EV / 2022E Adjusted EBITDA 2.0x (US$ and shares in millions) Estimated Sources Cash from BRAC Trust (3
Slide 8: AESE Board and Management Team
PAGE 7 © 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 Go
Slide 9: Gaming's Robust Industry Fundamentals
PAGE 8 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. 9.3% 3.6% 2.6% 1.7% 0.1% (0.7%) Gaming Cinema TV & Video Music Broadcast Publishing 11.8% 4.4% 3.4% 2.3% 0.3% (0.8%) Gaming Cinema TV & Video Music Broadcast Publishing $71 $77 $85 $93 $107 $122 $138 $152 $166 $180 2012A 2013A 2014A 2015A 2016A 2017A
Slide 10: Esports is the Next Global Sports Industry
PAGE 9 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. 230 350 468 682 897 1,553 95 143 187 183 199 237 $325 $493 $655 $865 $1,096 $1,790 2015A 2016A 2017A 2018A 2019E 2022E Brand Investment Revenue Other Revenue 120 121 143 173 201 297 115 160 192 222 253 347 235 281 335 395 454 645 2015A 2016A 2017A 201
Slide 11: With Viewership Already Rivaling Major Established Sports Leagues
PAGE 10 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. $88 $69 $52 $35 $2 114 65 270 231 395 -- 50 100 150 200 250 300 350 400 450 $ -- $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 tr
Slide 12: A Complete Esports Entertainment Platform
PAGE 11 © 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 Mult
Slide 13: Esports vs. Poker comparison
PAGE 12 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. Viewership Player Base Market Statistics (1) 58M Poker Esports Description A card game played by two or more people involving gambling with money Competitive gaming organized as a spectator sport through live tournament online streaming and televisio
Slide 14: Company Overview
© 2019 ALLIED ESPORTS ENTERTAINMENT, INC. 2 Company Overview
Slide 15: Evolution of the World Poker Tour
PAGE 14 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. Evolution of the World Poker Tour -In May 2002, launched the inaugural tour with the Five Diamond World Poker Classic at the Bellagio in Las Vegas, featuring a $1.4 million prize pool -Has since expanded to an 11 event global main tour and dozens of
Slide 16: Allied Esports Entertainment Introduction
PAGE 15 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. Allied Esports Entertainment Introduction In - Person Experiences Interactive Services Multiplatform Content 1 2 3
Slide 17: Flagship – Esports Arena Las Vegas
PAGE 16 © 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 18: Purpose-Built Esports Arena
PAGE 17 © 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 19: Affiliates and Mobile Arenas
PAGE 18 © 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 20: Global Reach
PAGE 19 © 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 21: Multiplatform Content Overview
PAGE 20 © 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 22: Content Generation and Distribution
PAGE 21 © 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 dist
Slide 23: Multiplatform Content: We Make Esports Entertainment
PAGE 22 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. Multiplatform Content We Make Esports Entertainment 2
Slide 24: Ninja Vegas '18
PAGE 23 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. A record - breaking Las Vegas debut for “Ninja” set the gold standard for Esports Entertainment and formed the basis for scalable, profitable event production going forward Source: Hookit Engagement Rankings, TwitchTracker. (1) Based on third party v
Slide 25: Interactive Services Introduction
PAGE 24 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. 3 Interactive Services Introduction
Slide 26: Subscription-based online platform: Watch, Play & Win
PAGE 25 © 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 27: Subscription Benefits
PAGE 26 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. 3 Interactive Services CENTER Subscription Benefits Monthly Subscription Service Exclusive online content Exclusive tournaments Prizes & cash rewards PLUS Tiered Membership Benefits, including Exclusive events Exclusive merchandise Exclusive access t
Slide 28: Online Platform for Participant Programming: Representative KPIs
PAGE 27 © 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 29: Financial Summary
© 2019 ALLIED ESPORTS ENTERTAINMENT, INC. 3 Financial Summary
Slide 30: Financial Overview
PAGE 29 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. ($26.5) ($42.8) ($32.5) $36.7 $102.6 2018A 2019E 2020E 2021E 2022E $17.1 $29.1 $41.2 $28.7 $5.7 2018A 2019E 2020E 2021E 2022E ($9.4) ($13.7) $8.7 $65.5 $108.3 2018A 2019E 2020E 2021E 2022E 26.7 49.9 69.0 13.8 35.2 54.4 41.6 118.2 184.0 $20.6 $27.0 $8
Slide 31: Capital Expenditures
PAGE 30 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. Capital Expenditures Year Ending December 31, (US$ in millions) 2018A 2019E 2020E 2021E 2022E Total Allied Esports Flagship Arena Buildout - EU $-- $-- $20.0 $-- $-- $20.0 Flagship Arena Buildout - Asia -- -- -- 20.0 -- 20.0 Mobile Esports Arenas 0.0
Slide 32: 2018A–2022E Revenue Bridge and Projected Performance
PAGE 31 © 2019 ALLIED ESPORTS ENTERTAINMENT, INC. $20.6 $61.3 $51.4 $174.2 $307.4 2018A Revenue In - Person Experiences Multiplatform Content Interactive Services 2022E Revenue ($9.4) $30.8 $34.0 $63.9 ($11.0) $108.3 2018A Adjusted EBITDA In - Person Experiences Multiplatform Content Interactive Ser