Allied Gaming & Entertainment Inc. · NASDAQ:AGAE
Allied Gaming & Entertainment — Black Ridge Acquisition — SPAC Merger (December 2018)
32 slides from Allied Gaming & Entertainment's SPAC merger presentation, Dec 20, 2018
Slide 1: Project Colosseums Investor Presentation
STRICTLY CONFIDENTIAL STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS ENTERTAINMENT, INC. Project Colosseums Investor Presentation December 2018
Slide 2: Disclaimer
PAGE 1 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS 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 complet
Slide 3: Contents
01 Insert divider title 3 A Insert divider title 7 Contents Contents STRICTLY CONFIDENTIAL STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED ESPORTS ENTERTAINMENT, INC. 1 Executive Summary 3 2 Company Overview 13 3 Financial Summary 28
Slide 4: Executive Summary
STRICTLY CONFIDENTIAL STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED ESPORTS ENTERTAINMENT, INC. 1 Executive Summary
Slide 5: Situation Overview
PAGE 4 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS 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 tourn
Slide 6: Transaction presents a unique esports opportunity for investors
PAGE 5 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS 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 nd
Slide 7: Pro Forma Capitalization
PAGE 6 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS 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) Esti
Slide 8: AESE Board and Management Team
PAGE 7 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS 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 CE
Slide 9: Gaming's Robust Industry Fundamentals
PAGE 8 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS ENTERTAINMENT, INC. 10.3% 3.7% 2.6% 2.0% 0.2% (0.5%) Gaming Cinema TV & Video Music Broadcast Publishing 11.5% 4.5% 3.6% 2.2% 0.2% (1.0%) Gaming Cinema TV & Video Music Broadcast Publishing $71 $77 $85 $93 $107 $122
Slide 10: Esports is the Next Global Sports Industry
PAGE 9 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS 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
Slide 11: Esports Viewership Rivaling Major Established Sports Leagues
PAGE 10 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS 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 Revenu
Slide 12: A Complete Esports Entertainment Platform
PAGE 11 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS ENTERTAINMENT, INC. In - Person Experiences Live events Global property network Event affiliates Allied Esports Entertainment A Complete Esports Entertainment Platform Interactive Services Direct - to - cons
Slide 13: Esports vs. Poker comparison
PAGE 12 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS 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
Slide 14: Company Overview
STRICTLY CONFIDENTIAL STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED ESPORTS ENTERTAINMENT, INC. 2 Company Overview
Slide 15: Evolution of the World Poker Tour
PAGE 14 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS 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 sinc
Slide 16: Allied Esports Entertainment Introduction
PAGE 15 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS 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 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS 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 Flagsh
Slide 18: Purpose-Built Esports Arena
PAGE 17 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS 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 /
Slide 19: Affiliates and Mobile Arenas
PAGE 18 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS 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
Slide 20: Global Reach
PAGE 19 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS 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 a
Slide 21: Multiplatform Content Overview
PAGE 20 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS 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
Slide 22: Content Generation and Distribution
PAGE 21 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS 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 retain
Slide 23: We Make Esports Entertainment
PAGE 22 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS ENTERTAINMENT, INC. Multiplatform Content We Make Esports Entertainment 2
Slide 24: Ninja Vegas '18 event
PAGE 23 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS 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 Engagem
Slide 25: Interactive Services Introduction
PAGE 24 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS ENTERTAINMENT, INC. 3 Interactive Services Introduction
Slide 26: Subscription-based online platform
PAGE 25 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS 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 firs
Slide 27: Subscription Benefits
PAGE 26 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS ENTERTAINMENT, INC. 3 Interactive Services CENTER Subscription Benefits Monthly Subscription Service Exclusive online content Exclusive tournaments Prizes & cash rewards PLUS Tiered Membership Benefits, including Ex
Slide 28: Interactive Services Online Platform and KPIs
PAGE 27 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS 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 reac
Slide 29: Financial Summary
STRICTLY CONFIDENTIAL STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED ESPORTS ENTERTAINMENT, INC. 3 Financial Summary
Slide 30: Financial Overview
PAGE 29 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS 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 $310.0 2018E 2019E 2020E 2021E 2022E In-Person Experien
Slide 31: Capital Expenditures
PAGE 30 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS ENTERTAINMENT, INC. Capital Expenditures Year Ending December 31, (US$ in millions) 2018E 2019E 2020E 2021E 2022E Total Allied Esports Flagship Arena Buildout - EU $-- $-- $20.0 $-- $-- $20.0 Flagship Arena Buildout
Slide 32: 2018E–2022E Revenue Bridge Projected Performance
PAGE 31 STRICTLY CONFIDENTIAL | NOT FOR PUBLIC DISTRIBUTION | © 2018 ALLIED E SPORTS ENTERTAINMENT, INC. ($9.4) $28.4 $36.3 $64.3 ($11.7) $107.9 2018E EBITDA In-Person Experiences Multiplatform Content Interactive Services Corporate 2022E EBITDA $19.9 $60.5 $54.7 $175.0 $310.0 2018E Revenue In-Perso
Black Ridge Acquisition — SPAC Merger (December 2018) on 6ix