Modern Times Group Mtg Ab Class A · OMXSTO:MTG_A
Modern Times Group Mtg Ab Class A — Investor Day (2016)
56 slides from Modern Times Group Mtg Ab Class A's investor day presentation, 2016
Slide 1: Redefining entertainment for Millennials
Redefining entertnment for Millennials
Slide 2: 5 truths about Millennials
5 truths about Millennials 2
Slide 3: Digital influencers gather millions of followers
1. Digital influencers gather millions of followers with new video formats Photo: J. Emilio Flores/NY Times/TT Trending Esports Video Networks Gaming 3
Slide 4: Millennial stars are from the digital universe
2. Millennial 1 KSI VanossGaming 2 PewDiePie Nigahiga Online star Hollywood/Pop Star Smosh Markiplier stars are from 3 4 5 6 the digital Bruno Mars Taylor Swift The Fine Bros. Jenna Marbles universe 7 8 9 10 Source: Variety 2015 Trending Esports Video Networks Gaming 4
Slide 5: Trending Esports Video Networks
Trending Esports Video Networks Gaming 5
Slide 6: Gaming defines mainstream pop culture
4. Gaming defines mainstream pop culture 107 Minutes per day playing video games, compared to 139min watching live TV Source: SuperData; Newzoo; Crowdtap; Ipsos Media CT; OC&C analysis Trending Esports Video Networks Gaming 6
Slide 7: Esports is the new sport
5. OTT: daily reach & estimated viewing time (2016Q2, min, %) Esports is the new Daily Reach 86,0 90,0 Viewing time (min) sport Source: Mediavision 2016Q2; Country: Sweden 10,5% 12,0% Sports Esports/gaming Trending Esports Video Networks Gaming 7
Slide 8: Trending Esports Video Networks
Trending Esports Video Networks Gaming 8
Slide 9: Trending Esports Video Networks
Trending Esports Video Networks Gaming 9
Slide 10: Millennials consume, create and share content all day long
Millennials consume, create and share content all day long – mobile & games a big part of their lives Breakfast On the way to work At work Lunch break Create & Share: Snap peers, Share: Reply to comments and Consume: Latest news, chat, Consume: Play a bit and watch watch clips further distribute pho
Slide 11: Gaming is one of the main entertainment products on mobile devices
Gaming is one of the main entertainment products on mobile devices Daily Time Spent, Adults, US, 2011-2017F (hrs:mins) Delta 2011-17F +1:03 0:46 12:05 11:08 0:46 3:18 Mobile +2:32 30% 2:30 Digital or >1 hour of 0:18 2:10 PC -0:20 mobile usage 0:28 Other Digital per day is gaming 7:33 6:10 Traditiona
Slide 12: Trending Esports Video Networks
Trending Esports Video Networks Gaming 12
Slide 13: Our Digital Entertainment Strategy is based on three Verticals
Our Digital Entertainment Strategy is based on three Verticals Esports Digital Video Networks Gaming Trending Esports Video Networks Gaming 13
Slide 14: Our verticals cover the whole customer journey in gaming entertainment
Our 3 verticals cover the whole customer journey in gaming entertainment Esports MPN Gaming Watch – Interact – Compete Watch – Create – Share Play – Pay – Create • Discover new games • Discover new products • Download games and start playing • Start interacting with other players (e.g. games) and fe
Slide 15: Total MTGx Revenue Growth
Total MTGx Revenue Growth +91% +48% 2014 2015 2015 2016 FY FY YTD Q3 YTD Q3 (Pro forma) (Pro forma) Trending Esports Video Networks Gaming 15
Slide 16: Trending Esports Video Networks
Trending Esports Video Networks Gaming 16
Slide 17: Esports is rivalling traditional sports on viewership
Esports is rivalling traditional sports on viewership Sports enthusiasts (M) Esports Enthusiasts & Occasional Viewers (M) 186 164 +17% 345 151 147 317 287 256 226 180 89 94 206 164 76 171 148 134 115 131 89 74 58 125 139 153 165 76 97 117 111 Volleyball American Handball Esports Ice Swimming 2012 20
Slide 18: Average annual revenue per sports fan (USD)
Average annual revenue per sports fan (USD) Upside c. 19x 19 67 3.5 Esports Basketball Soccer Source: Newzoo 2016 Trending Esports Video Networks Gaming 18
Slide 19: League operator is a key position in the evolving esports ecosystem
League operator is a key position in the evolving esports ecosystem Trending Esports Video Networks Gaming 19
Slide 20: There are 2 main esports categories and MTG is leading both
There are 2 main esports categories and MTG is leading both of them Esports Leagues & Events Digital Festivals Sold-out stadiums of professional competitive gaming Community driven 2-4 days (usually week-ends) Bring your own computer to the event 10-12 hours of matches/day Watch live esports, digita
Slide 21: Trending Esports Video Networks
Trending Esports Video Networks Gaming 21
Slide 22: ESL defines and shapes the Esports landscape
ESL defines and shapes the Esports landscape Leagues & Sponsors & Tournaments Partnerships ESL hosts the ESL has partnership biggest events all relations >10 years around the world Teams & Game Players relationship Publishers ESL has long-lasting ESL has a proven track relationships with the Operat
Slide 23: ESL has built a global footprint through talent acquisitions
ESL has built a global footprint through talent acquisitions Sweden Office & Studios Poland UK Germany Office & Studios Office & Studios Office & Studios Russia Office France Events or offices Office ESL or subsidiary offices or Los Angeles Spain working spaces Office & Studios Office & Studios Chin
Slide 24: ESL is the biggest esports content provider with exploding growth figures
ESL is the biggest esports content provider with exploding growth figures September YTD KPIs 331% Growth YoY 272% Growth YoY 129% Growth YoY Sessions Uniques Minutes watched Trending Esports Video Networks Gaming 24
Slide 25: ESL's events fill the biggest arenas
ESL´s events fill the biggest arenas ESL ONE COLOGNE 2016 • 3 Days - CS:GO Event • 14,000 event visitors per day • World‘s best esports teams • > 25 Millions are watching live online • 1,000,000 Peak Concurrent Viewers • $1,000,000 in prize money Trending Esports Video Networks Gaming 25
Slide 26: ESL runs a portfolio of league brands for every competition level
ESL runs a portfolio of league brands for every competition level worldwide ESL OWNED ESL CO-BRANDED / PRODUCED Professional LEGENDS The world‘s best PRO Esports Champions MA JOR Prove your skill Play OPEN Major League Go4 Cup Amateur Good luck, have fun! Open Ladder Open Cup Trending Esports Video
Slide 27: Event schedule 2017: esports action throughout the year
EVENT SCHEDULE 2017: esports action throughout the year JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC QUALIFIERS QUALIFIERS ESL ONE ESL ONE ESL ONE ESL ONE HAMBURG ESL ONE NEW GENTING EUROPE COLOGNE YORK QUALIFIERS QUALIFIERS QUALIFIERS QUALIFIERS IEM IEM SYDNEY IEM OAKLAND IEM SEOUL KATOWICE 12 M
Slide 28: New distribution platforms are driving growth and monetization of esports
New distribution platforms are driving the growth and monetization of esports VIRTUAL REALITY LINEAR DISTRIBUTION Content Reach LOCAL DIGITAL DISTRIBUTION VOD DIGITAL GLOBAL STREAMING Trending Esports Video Networks Gaming 28
Slide 29: ESL founded WESA with leading teams to professionalize esports
ESL founded WESA together with globally leading teams to professionalize esports Create an authentic framework to support growth and set industry standards: § Fairness § Transparency § Integrity § Sharing Predictable schedules for fans, players, organizers and è broadcasters, and involve all st
Slide 30: With ESEA ESL runs the leading competitive B2C Counter-Strike community
With ESEA ESL runs the leading competitive B2C Counter-Strike community Industry leading B2C subscription service 62% Paid Subscribers Base with proprietary plaform Growth YoY Q3 Trending Esports Video Networks Gaming 30
Slide 31: Esports on the rise
ESPORTS ON THE RISE “For the first time in generations we’re witnessing the birth of a new sport…” “…Gaming is what every traditional sports league is desperate to become: young, global, digital and increasingly diverse.” Trending Esports Video Networks Gaming 31
Slide 32: Trending Esports Video Networks
Trending Esports Video Networks Gaming 32
Slide 33: DreamHack was founded in 1994 as a modest LAN party
DreamHack was Event footprint founded in 1994 as a modest LAN party. It has grown to become the leading digital festival brand. Trending Esports Video Networks Gaming 33
Slide 34: DreamHack - world's #1 digital festival
DreamHack - world’s #1 digital festival 250M 200M 130K EVENT 221M STARTED 150M VISITORS STREAMS 100M 50M 0 2011 2012 2013 2014 2015 5,22B MINUTES WATCHED views hours watched Trending Esports Video Networks Gaming 34
Slide 35: DreamHack runs a broad esports portfolio
DreamHack runs a broad esports portfolio Festivals International Events Events Pro - International Pro/AM - Open Amateur – National & Local Esports Studio Production Broadcasting DreamHack • Ticket platform • Digital event experience Online • Ad platform • DH One Account Trending Esports Video Netwo
Slide 36: ESL and DreamHack combined cover the full esports spectrum
ESL and DreamHack combined cover the full esports spectrum Operations Key Focus World cup finals “Champions league” Viewership and mature audience More interaction / Gaming Festivals focus than viewership “Grassroot digital LAN Parties festival” Trending Esports Video Networks Gaming 36
Slide 37: Key achievements in 2016: Launch of the first esports association
Key achievements in 2016: Launch of the first esports association Leagues and Event DreamHack Geo-rollout into the U.S, First ESL Event in Southeast Asia (ESL Manila), League expansion 1 expansion into LATAM (Brazil), new Halo championship series International 2 Driven by M&A investments in Australi
Slide 38: We are investing in fast growth for our esports assets
We are MTG esports revenues investing +94% +59% in fast growth for our esports assets 2014 FY 2015 FY 2015 YTD Q3 2016 YTD Q3 (Pro forma) (Pro forma) Trending Esports Video Networks Gaming 38
Slide 39: Esports revenues derive from three main sources
Esports revenues derive from three main sources League operations TV/Online Publishers Sponsors Advertising Media rights Ticket sales Other • Ticket sales events B2C Licensing Premium services Licensing Merchandise Royalties Trending Esports Video Networks Gaming 39
Slide 40: Strategic measures focus on geo expansion, leagues and B2C products
Our strategic measures focus on investments into geo expansion, leagues and B2C products Audience / community Strategic Priorites and investments Commercial § Drive monetization of media rights 1 § Increase sponsorships and partnerships Operational model (Media rights, Advertisement, Sponsorships)
Slide 41: Trending Esports Video Networks
Trending Esports Video Networks Gaming 41
Slide 42: The global digital video advertising market has significant growth potential
The global digital video advertising market has significant growth potential CAGR +23% 34,2 We are well positioned in the most attractive AVOD segments 18,2 in the market We are platform agnostic and drive our 2016 2019 own content IP and O&O channels Global video internet advertising (Mobile + Wire
Slide 43: Market trends towards premium content and less dependency on YouTube
The market trends towards focus on premium content and less dependency on YouTube Distribution beyond YouTube MCN is now MPN Premium content production: Content Licensing and Productions Own IP Increasing Competition “Reach” is now “Engagement” Branded Entertainment in Digital Ad Budgets growing Bra
Slide 44: Zoomin, Splay and Engage Sports Media network reach
22,000+ channels 640+ channels 16 digital channels 1.5BN monthly views 230M monthly views 4 Own & Operated 14 countries 4 countries 4 Sports www.zoomin.tv www.splay.tv www.engagesportsmedia.com Trending Esports Video Networks Gaming 44
Slide 45: Zoomin creates strong own IP by leveraging a global VJ network
Zoomin creates strong own IP by leveraging a global VJ network Branded Media Content Entertainment Distribution Production Sources for Unique Stories Massive VJ and Talent Network Digital Data 360° Talent Global and Multi-language Setup optimisation Intelligence Monetisation Speed to cover relevant
Slide 46: Splay expands production for new distribution partners
Splay expands production for new distribution partners Broadcasters Telco’s Publishers Advertisers Offer engaging content for ad-averse audiences through branded entertainment and influencer marketing Trending Esports Video Networks Gaming 46
Slide 47: Engage Sports Media: Exploring digital video for global sports
Digital first video production Class leading approach Digital format Digital channel to video capture development development Content distribution Engage Sports Media Linear holdbacks and 40 digital network Content ingest, non-linear distribution and publisher deals/ configure and distribute 6 conti
Slide 48: Our 5 strategic priorities: own content IP and branded entertainment
Our 5 strategic priorities: We invest into own content IP and branded entertainment 1 Diversify revenue streams and broaden product portfolio 2 Create premium cross-sales products with MTG 3 Deliver short and long form premium productions towards new players 4 Continue developing talents into brands
Slide 49: Trending Esports Video Networks
Trending Esports Video Networks Gaming 49
Slide 50: Gaming is a highly attractive growing market with a mass audience for B2C
Gaming is a highly attractive growing market with a mass audience for B2C Global Gaming Market (USD bn) Key Growth Drivers +7% CAGR More players 113 2015-18F New 92 Segments 51 (Mobile, 12% 37 Browser) More paying players 28 Console 0% 28 PC 27 34 (traditional) 8% Higher spend per player 2015 2018E
Slide 51: We enter the online gaming market by acquiring 35% of InnoGames
We enter the multi-billion dollar online gaming market by acquiring 35% of InnoGames Trending Esports Video Networks Gaming 51
Slide 52: InnoGames is a leading online & mobile games developer & publisher
InnoGames is a leading online & mobile games developer & publisher Founded 2007 in Hamburg; Revenue split (2015) Revenue (EURm)& EBITDA margin (%) A global games developer and self- Rest of World publisher with established track record 10% ~125 in Strategy / RPG 26% +24% 104 Portfolio of 6 cross-pla
Slide 53: InnoGames runs 6 successful gaming brands
InnoGames runs 6 successful gaming brands 2003 2008 2010 2012 2014 2015 InnoGames founders InnoGames’ second InnoGames launches InnoGames further Expansion of the Hendrik Klindworth, game, The West, a its third game, broadens its game Tribal Wars franchise Eike Klindworth and MMORPG, is Grepolis, a
Slide 54: What's next? Focus on mobile only games
What’s next? Focus on mobile only games MMO Strategy Action Role Playing Survival Role Playing Epic guardians 3 unique heroes First of its type on mobile Stunning 3D graphics Hundreds of weapons Mysterious single player Diverse game world Epic boss battles Unique crafting system Trending Esports Vid
Slide 55: Summary: Building the next generation entertainment company with 3 verticals
Summary: We‘re building the next generation entertainment company by creating 3 strong verticals • Invest into leagues, events and B2C products Esports • Professionalize and shape esports ecosystem • Focus on creation of own content IP Digital Video • Ramp up branded entertainment capabilities • Bui
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