& ESL AUSTRALIA

The region’s largest esports provider. 2017 “... Gaming is what every traditional sport league is desperate to become:

young, global, digital and increasingly diverse.”

A term for organized video game competitions, WHAT ARE ESPORTS? especially between professional players. BUILDING THE SPORT OF THE NEXT GENERATION

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2011 1,700,000 Unique Viewers 2016 43,000,000 Unique Viewers China & South Korea GLOBAL | FOR 2014, 2015, 2016, 2019 will generate $106M MEDIA RIGHTS, MERCHANDISE & 2014-2019 TICKETS, ONLINE ADVERTISING, in 2016, or 23% of global esports BRAND PARTNERSHIPS, ADDITIONAL GAME PUBLISHER revenues INVESTMENT

MILLION $463M 2016

MILLION

MILLION

MILLION

CHINA S.KOREA

POWERED BY NAM REST OF WORLD

© Newzoo | 2016 Global Esports Market Report GLOBAL | FOR 2014, 2015, 2016, 2019 Asia-Pacific will account for

OCCASIONAL VIEWERS

ENTHUSIASTS 2014-2019 44% of the Esports Audience in 2016

MILLION

MILLION

MILLION MILLION MILLION 256M

MILLION 2016 MILLION

MILLION

NAM EU APAC

POWERED BY REST OF WORLD

© Newzoo | 2016 Global Esports Market Report BUILDING THE SPORT OF THE NEXT GENERATION THE WORLD’S LARGEST ESPORTS COMPANY

TRUSTED PROFESSIONAL AUTHENTIC PROVEN as a source of as a team of we understand with a history information respected the esports of over 1,000 and solution industry experts ecosystem global activations

5,000,000 REGISTERED USERS | 350+ GLOBAL EVENTS HOSTED SINCE 2000 | 15,000,000 USD AWARDED IN CASH PRIZES 24,000 HOURS BROADCASTED | 80,000,000 VIEWERS REACHED VIA ONLINE STREAMING PLATFORMS TRULY GLOBAL

ESL OFFICES Asia Australia Benelux Brazil Bulgaria China CIS Europe France Germany Greece Hungary India Italy Japan Latin America Nordics Poland Portugal South Africa Spain Turkey United Kingdom United States Position in the market

The central position in the ecosystem enables ESL to work with multiple esports stakeholders

3

1 2

5

4

1 2 3 4 5 Owner and operator of Operator of game Content production and Amateur leagues and major esports events and publisher leagues and content sales of owned- tournament owner leagues events and operated events and (ESEA, ESL Play) (ESL, IEM) (work for hire) leagues ESL ACTIVITIES

MEGA EVENTS PROFESSIONAL AMATUER SEASON TOURNAMENTS

CONTINUOUS ANNUAL MASSIVE ARENA EVENTS AMATEUR COMPETITIONS PROFESSIONAL SEASONS FOR EVERYONE SOLD OUT STADIUMS AROUND THE WORLD PRODUCT CATEGORIZATION

CO-BRANDED / Goal: Lighthouses. ESL PRODUCED LEGENDS

The world‘s best Professional

Goal: Content PRO Pro Esports League Penetration. champions

Goal: Brand meets MAJOR Prove your skill Play market.

Major League Go4 Cup OPEN Good luck. Have Open Ladder Open Cup Goal: Grassroots.

Amateur Fun! THE AUSTRALIAN STORY

ESL Sydney Studios

FOUNDATION VIM MEDIA & EVENTS MOVING FORWARD

Nick Vanzetti & JB Hewitt create JB & Nick create VIM Media & Events, a ESL Australia is now the region's largest

independent esport event businesses white label event production company, esport production & events company, with

in Brisbane Australia specialising in esports and tech activations 25+ staff & Australia’s only dedicated esport live event arena 2009 2015

2000 2011 2017 JOINING ESL FORCES AUSTRALIA They come together under the ACL VIM Media & Events is acquired by

banner to create Australia's first ever Turtle Entertainment, AKA ESL

esport event circuit Global. ESL Australia is born INCREASING REVENUE & ACCEPTANCE

ESL is created Global Market Expansion IEM is launched

Mainstream Hype

Mainstream Acceptance

Media rights Growth become relevant

Non Endemic brands get Underground involved movement Rejected & neglected Australian Cyber League: 2009 - 2011 Australian Cyber League: 2009 - 2011 VIM Media Events: 2012 - 2014 Australian Cyber League: 2009 - 2011 ESL AUSTRALIA: 2015 - OPL Final – Aug, 2015 Riot Games OPL Final – Aug, 2015 International Wild Card Allstars - Riot Games - November 2015 Finals - For Riot Games - August 2016 Oceanic Pro League Finals - For Riot Games - August 2016 Oceanic Pro League Finals - For Riot Games - August 2016 Oceanic Pro League Finals - For Riot Games - August 2016 THE REGION’SPROJECT 1MOST REACHINGPROJECT 2 BROADCASTINGPROJECT 2 EXPERIENCEDBuying and selling STAFF a HUNDREDSBuying and selling OF a MORE GAMES THAN product lorem service. THOUSANDproduct lorem service. OF ANYONE ELSE PEOPLE EACH WEEK

USING AUSTRALIA’S TO CREATE THE WITH THE BACKING MOST TALENTED BIGGEST & BEST OF THE WORLD’S BROADCAST TEAM EVENTS IN THE LARGEST ESPORTS REGION COMPANY

is #1 for esports in Australia. Who we are

ESL Australia’s team grew to 26 permanent staff in 2017, which expands to 60+ of our regular technical crew during our biggest events and shows. ESL Studios Sydney, Australia Sydney studios

ESL’s studios in Sydney operate multiple world class broadcasts and plays host to live events for an audience up to 200, as well as weekly online broadcasts. LOCATION & DATE Sydney’s Qudos Bank Arena 6th - 7th May, 2017 FOOTPRINT Over 1,000sqm entertainment space Over 7,000 pax attendance per day CONTENT World’s best Counter Strike players Experience Zone with 19 exhibitors Freeplay PCs Community Stage & Tournaments Influencers

IEM SYDNEY 30 million unique Almost 8 Million Online broadcast users engaged on unique viewers delivered across 30 social media and 92 surpassing last year's digital and linear million impressions recorded viewership of platforms in 22 across all social media IEM Oakland. languages. platforms. Exhibition Hall

In addition to the action on the main stage, the brought to Australia the first gaming expo dedicated to esports enthusiasts. The expo hall showcased products and brands popular amongst esports fans, and gave them hands on experience with some of the latest technology. This was a popular area at IEM Sydney, with enthusiasts trying out products in gaming free play and competitions across the weekend. Pro Player signing sessions were also held in this area. Intel Extreme Masters Sydney was already the third consecutive IEM event that was broadcast in VR, solidifying Intel’s and ESL’s commitment to continue delivering legendary esports moments to fans on-site and online alike using the latest in technology and broadcast innovation. Over 150,000 unique viewers tuned in to watch the competition via SliverTV. Press and Coverage Overview

Press coverage across national radio, TV and several games and entertainment sites

150+ pieces of coverage 685,871,476 total audience reach CONTENT, CHALLENGES & OPPORTUNITIES SUPPLEMENTING BROADCAST

INSTANT SOCIAL REPLAYS VR LIVE STREAMING Snappy TV integrated with Partnership with Sliver TV and Facebook HTC Vive, Oculus, Samsung Gear Integration of statistics CHALLENGES AND OPPORTUNITIES

BANDWIDTH 720p standard to 1080p (anything less not acceptable) VR requirements will mean even more

BROADCAST ENCODING Multiple broadcast platforms with different formats Cloud based distribution and new range of tools to facilitate CHALLENGES AND OPPORTUNITIES LIVE FEEDBACK Instant feedback for production problems Requirement for more monitoring and stronger communication Power to harness audience reactions and interact with fans Ability to tailor content to the audience’s preferences 2017 INTO THE FUTURE ESPORTS MARKET TRENDS Esports ecosystem is still under development, multiple trends expected to have short-term impact

1 2 Increasing importance of esports for game publishers Traditional media media companies companies entering esports esports ecosystem ecosystem

5 3 Increased interest from non- Professionalization of esports brands teams & players 4 Intensified competition in the online distribution segment 1

Increasing importance of esports for game publishers

2

Traditional media companies entering esports ecosystem 3

Professionalization of teams & players

Huge cubs getting behind esports. Man City had more revenue than esports in total combined, and continued interest from these kinds of clubs will exponentially grow the audience in the next few years. 4 5 Intensified competition in the Increased interest from non- online distribution segment – esports brands locking down content rights.

Media rights only make a very small portion of the Esports have reached a tipping point in product revenue distribution for esports. This revenue stream sponsorships, the next step is to win over major non- has the highest potential to grow in the next years. endemic brands to sponsor events and leagues. INCREASING REVENUE & ACCEPTANCE

ESL is created Global Market Expansion IEM is launched

Mainstream Hype

Mainstream Acceptance

Media rights Growth become relevant

Underground Endemic brands get involved movement Rejected & neglected VS SPORTS GROWTH SCENARIO’S & COMPARISON TO SPORTS | 2012-2019

ALTERNATIVE OPTIMISTIC SCENARIO $15 The average annual revenue per fan of TOTAL ESPORTS REVENUES basketball REPORT SCENARIO $20 AVERAGE ANNUAL REVENUE PER The average annual ENTHUSIAST revenue per fan of the NBA

TOTAL ESPORTS REVENUES $60 2012 2013 2014 2015 2016 2017 2018 2019 2020 The average annual GLOBAL NUMBER OF ESPORTS ENTHUSIASTS revenue per fan of the

POWERED BY NFL

© Newzoo | 2016 Global Esports Market Report TRENDS & PREDICTIONS

Sporting Leagues

NBA has partnered with game developer 2k to run their Australian sporting bodies like the AFL, NRL, Cricket own league, and FIFA is springing leagues on national Australia and others are looking into how to get levels. EA is already very integrated with EPL etc. involved in esports. TRENDS & PREDICTIONS

New Businesses with Esports Focuses Education & Vocational Changes

Esports & gaming bars and other purpose fit recreational Games like Minecraft are huge and this audience will transition into esports. facilities are popping up all over the world. TRENDS & PREDICTIONS

Kids Minecraft

Esports is 19 years old. Any child today grows up knowing Games like Minecraft are huge and this audience will what esports is and accept it as normal. transition into esports. THANK YOU

Nick Vanzetti Managing Director [email protected]

+61 488 525 225