H1 2019 Financial Results

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2.2 BILLION 395 MILLION 737 $151 Million $1.80 Billion 32%People globally who play

video gamesGlobal number of players

& enthusiasts in2018

The number of majorglobal Esports events

in 2018

Prize money broke$150 million mark for the

first time in 2018

Projected Esportsrevenue by 2022

Global Esports revenueincrease during 2018

Large and growing global audience and market MARKET

Esports audience growth

0

100

200

300

400

500

600

2017

Esports enthusiasts Occasional viewers

143 173 201 233 264

316285

253222

192

335395

454

518

580

Source: Newzoo 2019 Global Esports Market Report

m

2018 2019e 2020e 2021e

Esports revenue growth

Media rights

Merch & tickets

Advertising Sponsorships Publisherfee

0200400600800

10001,2001,4001,6001,8002,000

2,200

655

865

1,096

1,3401,566

USDm

2017 2018e 2019e 2020e 2021e0

30

60

90

120

150

180

6 3 5 9 1319

36

61

93112

Prize money developmentUSDm

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

151

2018

1,790

823

231

161

501

72

2022e

297

347

645

2022e

What we do

Game Publishers, Sport Rights Holders,Commercial Partners

Content Buyers and Distribution Platforms

Our Users, Viewers, Fans, Consumers, Data, Insight

Our Brand, Production, Content, and Format

World Leading Esports Solutions ProviderEnd-to-end solutions leveraging Esports expertise, technology content and broadcast capability

Owned and OperatedManaged Services

Esports Solutions

Online & offline game and event management

underpinned by leading Esports technology platform

Content Creation

Offering world class studio and creative

expertise to deliver high quality and valuable

content

Tribe

Building service offering access to our proprietary community platform of

engaged consumers

Owned Content

Gfinity owned and branded leagues & events including The Gfinity Elite

Series

BUSINESS MODEL

Strategic initiatives

Owned and OperatedManaged Services

4.3x

+189%

Number of views

Like for like growth

+64% Number of views

+£2.8mGross profit improvement

Gfinity produced content year on year

Revenue from existing partners

Elite Series live plus shoulder content

Higher revenue and opex efficiency

BUSINESS MODEL

MANAGED SERVICES

Bridging real and virtual sport

Inflection point – large opportunity to expand

Leverage large incumbent fan base

- Esports tournament partner for inaugural ePremier League- Hosting 5 out of 12 events for Fifa eWorld Cup- Opportunity to expand into other sports

- First step by Premier League into Esports- Strong validation of Esports market and Gfinity’s position- Opportunity to expand breadth, scope and monetisation

Growing and expanding with our partners

- Leverage existing strong brands to scale Esports solution- Billions of incumbent sports fans worldwide - FIFA is the largest single game title in the world

Case Study: Sports rights holder solution MANAGED SERVICES

Number of EntrantsNumber of entrants

2017 2018

Number of broadcasters

Number of countries

Online video views

2 live events: Semi Finals at Gfinity Studio and finals in Abu Dhabi November 2017

Viewers under 34 years old

Professional teams signed at least 1 player each

Online video views

1 pro draft event (July) at Silverstone and 3 live events ending December 2018

20

60k

123

6m

70%

66k

9

20m

Owned content

- Bespoke tournament format – connecting enterprises with young audience- More than 13 million live views and 7 million views of shoulder content- Global brands such as Dominos, Facebook and Unilever- Attracting world leading Esports teams

- Structure for social engagement and talent identification- Multiple teams & games, world class content and distribution- Live offline and online event capability- World leading quality content production

Bespoke pro-tournament platform and format

Bedroom to podium – strong consumer engagement

Flexible tournament infrastructure

(BETA)

(BETA)(BETA)

OWNED AND OPERATED

- Adaptable format for any competitive game title- Co-branded – Gfinity and naming rights partner- Custom and bespoke game features on-demand

Financial resultsMANAGED SERVICES

RevenueFiscal year end June

H1(19)

£4.3

£1.8

£2.5

£4.4

H2(18)H1(18)2018

+143%

Adjusted EBITDAFiscal year end June

H1(19)

-£12.5

-£7.4

-£5.5

-£4.4

H2(18)H1(18)2018

+39%

• Expanding scope and breadth with key partners• 189% like for like growth from publisher partners• Underlying market growth support solution value

• Growth in managed services with accretive margin• Lower investment in Elite Series• Stable Opex after completed investment in people

Managed serviceMANAGED SERVICES

RevenueFiscal year end June

H1(19)

£3.5

£1.6

£1.9

£3.2

H2(18)H1(18)2018

+104%

Gross profitFiscal year end June

H1(19)

£1.3m

£0.4m

£0.9m

£1.3m

H2(18)H1(18)2018

Increasing revenue momentum• 104% YoY revenue growth• Key partners like for like growth of 189%• 1 out of 5 assigned EA championship events• 2nd year Formula 1 Esports Series• Forza and Halo championship events (Microsoft)

Improved profitability• Gross margin of 39% (25%)• Significantly increase in value creation• Operational scale from Gfinity Arena

Key Highlights

+224%

Owned and OperatedOWNED AND OPERATED

Key Highlights

RevenueFiscal year end June

H1(19)

£0.8

£0.2

£0.6

£1.2

H2(18)H1(18)2018

+387%

Gross profitFiscal year end June

H1(19)

-£4.7m

-£3.6m

-£1.1m-£0.8m

H2(18)H1(18)2018

Key enabler for managed services• Proof of broadcasting and content capability• Arena for creative development• Adaptable for any commercial partner and game

Season 4 Elite Series• Total viewers grew 64%, including shoulder content• Dominos presenting partner - broadcasted

exclusively on Facebook

Reduced investment• Gross profit loss of £0.8m (£3.6m)• Reduced opex liability in future programs

+79%

Financial highlights and ambition STRATEGY AND OUTLOOK

- Scalable business model where margin is driven by content value and level of sharing between partners- Upside driven by number and scope of partnerships

and consumer engagement driving content value- Opex is largely fixed due to investment already

made in solutions and content production capability

- Target of break-even within 2021

- Target group gross margin of 30-40%

- Target EBITDA margin of 15-25%

Revenue Cash OpexFiscal year end JuneLTM = Last 12 months

£0.2

2018

£0.6 £1.4 £2.4£4.3

2017201620152014 Medium term

£0.7

2018

£2.1

2017201620152014 Medium term

£2.8£4.6

£7.8£10-12

Financial characteristics Financial ambition

Fiscal year end JuneLTM = Last 12 months

Content

Services

LicencesLTM H1(19)

£6.9

LTM H1(19)

£9.7

Outlook

• Deliver 4 out of the 5 tournaments assigned for EA Sports FUT Championship in 2019

• ePremier League: Qualifiers and finale in April 2019• Gfinity to host Call of Duty World League at the Copper Box in

London, May 2019(Activision)• Next evolution of Elite Series in development with key

commercial partners • Strong pipeline of opportunity for new solutions with rights

holders, commercial partners and publishers

OUTLOOK

Short term

Medium term

• Deepening relationships, expanding scope and breadth of Esports solutions with existing key publisher partners

• Greater commercial responsibility, driving revenue upside, underpinned by strong market growth

• Market growth driven by higher consumer engagement, maturing consumer channels and in turn larger budgets

THANK YOU