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ASX:ESH eSports - The biggest sport you have never heard of Company Presentation November 2016 For personal use only

For personal use only - Australian Securities Exchange · For personal use only • 1.9bn+ players across all platforms competing globally. ... References: *Superdata Research Brief

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Page 1: For personal use only - Australian Securities Exchange · For personal use only • 1.9bn+ players across all platforms competing globally. ... References: *Superdata Research Brief

ASX:ESH

eSports - The biggest sport you have never heard of

Company Presentation

November 2016

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Page 2: For personal use only - Australian Securities Exchange · For personal use only • 1.9bn+ players across all platforms competing globally. ... References: *Superdata Research Brief

Disclaimer

Disclaimer:

This presentation has been prepared by eSports Mogul Asia Pacific Limited (ESH or the Company). It contains general information about the Company’s activities current as at the date of thepresentation. The information is provided in summary form and does not purport to be complete. This presentation is not to be distributed (nor taken to have been distributed) to any personsin any jurisdictions to whom an offer or solicitation to buy shares in the Company would be unlawful. Any recipient of the presentation should observe any such restrictions on the distributionof this presentation and warrants to the Company that the receipt of the presentation is not unlawful. It should not be considered as an offer or invitation to subscribe for or purchase anysecurities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into onthe basis of this presentation or any information, opinions or conclusions expressed in the course of this presentation.

This presentation is not a prospectus, product disclosure document or other offering document under Australian law or under any other law. It has been prepared for information purposesonly. This presentation contains general summary information and does not take into account the investment objectives, financial situation and particular needs of any individual investor. It isnot financial product advice and investors should obtain their own independent advice from qualified financial advisors having regarding to their objectives, financial situation and needs. ESHnor any of their related bodies corporate is licensed to provide financial product advice.

This presentation and information, opinions or conclusions expressed in the course of this presentation contains forecasts and forward looking information. Such forecasts, projections and

information are not a guarantee of future performance, involve unknown risks and uncertainties. Actual results and developments will almost certainly differ materially rom those expressed or implied.

You should not act or refrain from acting in reliance on this presentation, or any information, opinions or conclusions expressed in the course of this presentation. This presentation does notpurport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the prospects of ESH. You should conduct your own

investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before

making any investment decision. Recipients of this presentation must undertake their own due diligence and make their own assumptions in respect of the information contained in this

presentation and should obtain independent professional advice before may any decision based on the information. No representation or warranty, express or implied, is made in relation to

the fairness, accuracy or completeness of the information, opinions and conclusions expressed in the course of this presentation. To the maximum extent permitted by law, no representation,

warranty or undertaking, express or implied, is made and, to the maximum extent permitted by law, no responsibility or liability is accepted by the Company or any of its officers, employees,

agents or consultant or any other person as to the adequacy, accuracy, completeness or reasonableness of the information in this presentation. To the maximum extent permitted by law, no

responsibility for any errors or omissions from this presentation whether arising out of negligence or otherwise is accepted. An investment in the shares of the Company is to be considered

highly speculative.

This presentation and information, opinions or conclusions expressed in the course of this presentation should be read in conjunction with ESH’s other periodic and disclosure announcementswhich are available on the ESH website (www.esportmogul.com)

November 2016

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Page 3: For personal use only - Australian Securities Exchange · For personal use only • 1.9bn+ players across all platforms competing globally. ... References: *Superdata Research Brief

Capital Structure

November 2016

Corporate Snapshot

ASX Code ESH

Cash (as at 25th Nov 2016) $7.0m

Market Cap ($0.03/share) ~$26m

Listed Shares 678,637,609

Escrowed Shares (November 2018) 26,000,000

Escrowed Shares (November 2017) 74,000,000

Escrowed Shares (January 2017) 100,000,000

Total Shares on Issue 878,637,609

Listed Options @ $0.05 Exercisable on of before 30

Oct 2019

171,478,207

Listed Options @ $0.05 Exercisable on of before 30

October 2019 (Escrowed November 2018)

150,000,000

Listed Options on Issue 321,478,207

Class A Performance Shares - 100,000 ESH

Subscribers with 24 months

113,000,000

Class B Performance Shares - $5m annualised EBIT

within 60 months

100,000,000

Top 5 Shareholders (as at 24th November 2016)

Trust Co Aust Ltd 7.04%

National Nominees Ltd 4.09%

Comprehensive Investments 3.41%

Cyber Century Ltd 3.13%

Block Capital Group Ltd 2.67%

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Page 4: For personal use only - Australian Securities Exchange · For personal use only • 1.9bn+ players across all platforms competing globally. ... References: *Superdata Research Brief

ESH Board

Gernot Abl – Managing Director••

Law, Corporate Finance and Consulting background15+ yrs experience in corporate advisory working in the Gaming, Resources, Energy, Utilities andPublic sectorsLifelong gamer with significant success in the online gaming industryDirector with eSports Hero Inc.

••

David Sumich – Chairman••

22 years experience in equity capital markets, including 10 years as Director of ASX companiesFounder, and MD, of ASX companies DMC Mining Ltd & Volta Mining LtdPrevious roles at Merril Lynch (Australia) and HSBC (Middle East) in Private Banking &Investment Banking

George Lazarou– Non-Executive Director••

20+ yrs experience as a chartered accountant across industry.Extensive experience in M&A, valuations and advisoryCurrently the Managing Director of corporate advisory firm Citadel Capital

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Page 5: For personal use only - Australian Securities Exchange · For personal use only • 1.9bn+ players across all platforms competing globally. ... References: *Superdata Research Brief

ESH Management

Marc Bell – User Acquisition• 20+ yrs in interactive media• Worked for AAA gaming companies

including Wargaming• Founder Freemeum - agency guiding

developers and publishers on successfullaunch strategies

Jonathan Noal – COO• 20+ yrs marketing and management

experienceFounder of BoilerRoom - awarded DirectAgency of the Year

Michael Arrieta – Media Strategist• Media strategist with a deep understanding of

traditional and digital media, technology,production & distribution.

• Vice President with Sony Pictures driving Sonyto #1 digital market share with revenues inexcess of $100M pa

Rodney Block – Strategic Adviser• Director, Head of ANZ, SEA and India Sales

for GoPro20+ yrs of Video Games experience, wasVice President for THQ APACLaunched Disney Infinity throughout ANZ

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Page 6: For personal use only - Australian Securities Exchange · For personal use only • 1.9bn+ players across all platforms competing globally. ... References: *Superdata Research Brief

Investment Highlights

1. Multi faceted business across 4 distinct verticals within the eSport industry

2. Market demand already proven by existing clientele and first revenues from AstroNvidia

&

3. Despite recent exponential growth the eSport market remains underdeveloped

4. Multi stream revenue model

5. Current relationships and technology provide a > 18 month lead on competitors

6. Experienced management team

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Page 7: For personal use only - Australian Securities Exchange · For personal use only • 1.9bn+ players across all platforms competing globally. ... References: *Superdata Research Brief

Video Game Market on par with Sports

Source: NewZoo Global eSport Revenue Model 2015

http://www.igamingbusiness.com/sizing-esports-opportunity-0

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Page 8: For personal use only - Australian Securities Exchange · For personal use only • 1.9bn+ players across all platforms competing globally. ... References: *Superdata Research Brief

Market Opportunity

November 2016

• eSports is a subset of the estimated US$99bn+ global video games market

• Year on year audience and participation growth

• 1.9bn+ players across all platforms competing globally

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Page 9: For personal use only - Australian Securities Exchange · For personal use only • 1.9bn+ players across all platforms competing globally. ... References: *Superdata Research Brief

eSports is a global phenomenon

References:1 http://superdata-research.myshopify.com/products/esports-market-brief-20152 http://www.redbull.com/en/esports/stories/1331754099932/what-can-100-million-buy-an-esports-team3 http://www.businessinsider.com.au/amazon-buys-twitch-2014-84 http://finance.yahoo.com/news/unikrn-closes-series-binary-capital-113000793.html

November 2016

Established audience • 188m in 2015 forecasted to grow to 238m by 20171

base

Established • Alisher Usmanov co-owner of mail.ru and Megafon invested US$100m into professional teams team Vitrus.pro2

Broadcast support • Twitch.tv has 100m unique visitors a month and was purchase by Amazon for viewers in 2014 for ~US$1B3

• ESPN, Fox, NBC, VICE, CW and Hoyts all covering content

Peripheral industries • Multiple Fantasy and wagering companies - including Unikrn which raised

leveraging passion US$10m in 2015 for a dedicated eSports betting platform4

Maturing fandom • eSports stars have millions of Facebook followers, their own t-shirts and

streaming channels

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Page 10: For personal use only - Australian Securities Exchange · For personal use only • 1.9bn+ players across all platforms competing globally. ... References: *Superdata Research Brief

Our eSports media hub

- eSport content - Tournament platform - Digital downloads - Academy platform

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Page 11: For personal use only - Australian Securities Exchange · For personal use only • 1.9bn+ players across all platforms competing globally. ... References: *Superdata Research Brief

Our Content Offering

• Video content streaming is worth US$3.8bn globally

• Establishing ourselves as a premier Gaming Content provider, specialising in backstoryaccess

• Turnkey solutions: content, relationships, shooting, post-production with a range oftechnologies: HD Linear, 360/VR and interactive

• Positioning ESH as unique providers of backstory content for the mega-brands who arefighting for market share e.g. Google vs Amazon

• Revenue will come through production of exclusive content and revenue share on advertising

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Page 12: For personal use only - Australian Securities Exchange · For personal use only • 1.9bn+ players across all platforms competing globally. ... References: *Superdata Research Brief

https://www.dropbox.com/s/te87a2bcw6etor0/eSports%20Mogul%20-%20Manila%20Majors%20-%20Nvidia%20Teaser.mp4?dl=0

Showreel example: Nvidia

5 Country shoot for documentary

VR / 360

Nvidia short

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Page 13: For personal use only - Australian Securities Exchange · For personal use only • 1.9bn+ players across all platforms competing globally. ... References: *Superdata Research Brief

eSports Hero Tournament Platform

• ESH has a 20% equitable interest in eSportsHero Inc

• 10 year exclusive license for the APAC region

- Largest games region globally with an

estimated 900m+ gamers in 2015

Major Features

1v1 / 5v5 Matches

Up to 256 Seat Automated Tournaments

Automated Match Reporting

Compliant eWallet + KYC + AML

Direct Challenges

API Integration with Top Games

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Page 14: For personal use only - Australian Securities Exchange · For personal use only • 1.9bn+ players across all platforms competing globally. ... References: *Superdata Research Brief

Digital Downloads

• Digital game download market is already worth US$6.3bn* globally

• ESH is able to offer digital games at competitive market rates

• Revenue will be generated through the sale of products, with expectedgross profit margins of between 17% and 30%

• Additional benefits includes:

• Potential to use gross profit margin returns to subsidise Academysubscription fees

• Direct dialog with publishers for game titles

References: *Superdata Research Brief - eSports Market Brief, May 2015

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Page 15: For personal use only - Australian Securities Exchange · For personal use only • 1.9bn+ players across all platforms competing globally. ... References: *Superdata Research Brief

eSport Learning Academy

• Video game streaming market is worth $3.8bn globally, mainly comprised of:

••

Low end content such as game walk throughs;POV from influencers; and

live eSports streaming

• The ESH academy will create a complete entertainment package to fansthrough:

••

Weekly content from experts or star playersTutorials on how to play

A private version of the tournament platform to practice on

Interactive engagements through sponsors

• Strategic value in partnering the Academy with professional teams andcontrolling their media

• Ultimate goal is to partner with the mega-brands such as Google and Amazonin their fight for market penetration and differentiation

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Page 16: For personal use only - Australian Securities Exchange · For personal use only • 1.9bn+ players across all platforms competing globally. ... References: *Superdata Research Brief

Monetisation recapMonetisation Opportunities

November 2016

Advertising/

sponsorship

Subscription

Product Margin

Services

Fee for services

Data

White labelling

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Page 17: For personal use only - Australian Securities Exchange · For personal use only • 1.9bn+ players across all platforms competing globally. ... References: *Superdata Research Brief

Competitor Review

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Page 18: For personal use only - Australian Securities Exchange · For personal use only • 1.9bn+ players across all platforms competing globally. ... References: *Superdata Research Brief

AchievementsAchievements to Date

• Established ESH as a leading provider of eSports content

• In early stage discussions with major brands

• First mover advantage which has lead strategic engagements for Nvidia & Astro (eg Manilla)

• Launched and started the optimisation process for HeroGamer.tv

• Taken on Philippines as a test market building a prototype South East Asian model which includes:

--

-

-

cafe group partnerships

local media partnerships

influencerson-ground staff and studio access

• Leveraging all of the above in order to disrupt the industry through new entertainment vehicles such as

the Academy - which have the potential to be supported by mega-brands

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