ACQUISITION ANNOUNCEMENT OF
A Leading Independent YouTube Multi-Channel Network (“MCN”) based in the United States • Yeah1 Group (Yeah1 or YEG) is pleased to announce today that we have signed a Key Statistics binding agreement for the 100% purchase of ScaleLab, LLC (ScaleLab)
191% • ScaleLab is Los Angeles based YouTube Multi Channel Network (MCN) similar to Yeah1 Revenue CAGR (2015 – 2017) Network (Y1N)
• Founded in August 2013, the Company has experienced rapid growth. To date, the Network has over 1,750 YouTube channels generating 3.0bn+ views monthly $27.3 million Gross Revenue (2017)
• ScaleLab’s partner channels are located around the world with more concentration in North America, Latin America and EMEA
3.0 billion Views Monthly • Once integrated with Yeah1 Network, Yeah 1 Group will have one of the largest YouTube Networks in the world
• The maximum consideration is USD20m 408 million Total Subscribers (YTD) 1 Top-ranked YouTube MCN globally 2 Huge Potential Synergy with Yeah1 Network
. ScaleLab is one of the leading digital video networks worldwide in . ScaleLab has strong knowhow about US and Latin America while our terms of views and creator quality. The company has wide network of current MCNs have deeper knowledge about Asian markets. We can over 1,750 channels and 3.0 bn views monthly combine to promote all channels globally
. ScaleLab is a global brand with a very good market reputation, many . Better trend detection/prediction from analyzing bigger data base existing contracts and personnel that YEG will integrates into our own allows us to better support our creators in tailoring content to user platform preference. Huge data can also be used to develop other businesses like media commerce . Increase the Group’s competitiveness in global market and Yeah1’s brand awareness globally . Having a subsidiary in US opens more partnership opportunity with local brands, supports contents acquisition and diversify content platform
3 Abundant Room for Growth of Digital Media Industry 4 Strong Growth and Financial Performance
. In US, digital marketing amount was up to $90.39 bn in 2017, equivalent . The revenue of ScaleLab in 2017 was USD27.3m with 15-20% growth in to 51% of total media ads spending. Of which, digital video took share of 2018 25% and is estimated to grow at 30% in 2018 . Post acquisition we target 20-25% Revenue growth in 2019 onwards . ScaleLab will enable us to capture Latin America - the fourth largest ad market globally. Similar to Vietnam, the digital’s share of total media . Post acquisition it is expected that 2019 will break-even as costs are spend (26.3%) is currently below and will move towards the worldwide restructured out of the business and synergies are established with average (43.5%) Yeah1 Network (most technical & optimization staff will be based in Vietnam) . ScaleLab’s views mostly come from high CPM markets (share of views from Vietnam is only 0.8%). This will lead to our overall CPM improvement . In 2020 and beyond expect 10% Net Margins SCALELAB’S BUSINESS OVERVIEW ScaleLab is one of the largest independent MCN’s in the U.S. & the World. The Company has revenue from over 240 countries worldwide with 3.0 billion views per month
Jake Paul ScaleLab Creator 17.6M Subscribers In 2018, online video continues to see additional penetration and innovation, with YouTube still at the forefront
Digital Media Consumption by U.S. Adults % of Buyers Expecting to Increase Spend
Consumers watch videos on their 83% 01 81% 79% computers every day 70% Others, 77% 8% 72% 72% The average adult in the U.S. spends Desktop/ nearly 6 hours per Laptop, Mobile, 37% 55% day with digital media
Video Social Display Search OTT/ Native/ 02 Consumers watch videos on their Connected Content smartphones every day 67% TV Marketing
Distribution of U.S. Advertising Spend by Media U.S. Social Network Ad Spend ($B)
2019 43% 34% 25 23.5 100%
19.3 03 Publishers expect to increase their 2018 38% 35% 20 80% mobile video spend by at least 25% 79% 15.4
2017 37% 36% 15 60%
10.9 2016 36% 37% 10 40% 25% 21% 23% 2015 33% 38% 18%
5 20%
Advertisers expect to increase their 2014 28% 39% 04 mobile video spend by at least 25% 70% 0 0% 0% 20% 40% 60% 80% 100% 2015 2016 2017 2018
Digital TV Print Radio Out-of-Home Social Ad Spend % of Digital Ad Spend A YouTube Multi-channel Network (MCN) works with multiple channels and content creators, consulting or assisting towards success on streaming YouTube videos.
An MCN typically receives 55% of ad revenue from YouTube and pays 70-95% of this revenue out to its creator partners.
YouTube MCNs Creator Partners / Channels
70-95% of net ad revenue 55% ad revenue received from YouTube
Viewership (CPM) YouTube content
Viewership Online video Product placement, sponsored Sponsorship reviews, B2B partnership in 100% campaign- related cost content production
Ad revenue based on CPM
Note: Flow of Ad Inventory Flow of Revenue Audience reach on a global scale
Brands ScaleLab team helps channel partners optimize content and expand audience so creators can maximize their impact on YouTube and beyond
Channel Optimization Big Data Analytics Content Library Accelerated Growth
Manage and improve Access to big data analytics Access to huge content library Give creator partners the tools, the channel to enhance customer tools and reports from YEG’s partnership with the experts, and even the experiences, increase interactions, global content companies like financing to growth channel’s retention rate and revenue Nickelodeon, TVB, etc. to audience and earnings monetize content
Content Protection High-Profile Brands Apps Hands-On Support
Offers Content-ID related services ScaleLab has strong connections Gain free access to music libraries Work closely with creators who are so creator’s videos aren't stolen. others don't. Gain Global exposure like Epidemic Sound, bulk optimize serious about growth. No other ScaleLab has a team that works and collaboration, exclusive access your channel with VidIQ, create network is more hands-on and with partners on monetization issues to top-level brands & sponsors who outros with OutroMaker responsive than ScaleLab and protecting channels pay higher CPM rates YouTube Awards Views by Top Countries Average View Duration
Diamond Play Buttons The United States 18.5% 3 (>10m Subscribers) Latin America 33.6%
Gold Play Buttons India 5.1% 3.38 85 (>1m Subscribers) minutes Russia 4.4% Silver Play Buttons 540 (>100k Subscribers) United Kingdom 3.7%
Partnering with Top Global Brands ScaleLab has a total of 1,750 channels with 408 million subscribers. Key growth focus is entertainment, tech & gaming and kids channels
44% 27% 15% 14%
% of total network views, data on January 05, 2019
Entertainment Tech & Gaming Kids Other
• 804 Channels • 782 Channels • 41 Channels • 123 Channels
• 1.5B Monthly Views • 930M Monthly Views • 520M Monthly Views • 450M Monthly Views
• 242M Subscribers • 122M Subscribers • 25M Subscribers • 54M Subscribers
• 95M Total Watch Hours • 58M Total Watch Hours • 32M Total Watch Hours • 30M Total Watch Hours
• 361,365 Total Videos • 416,673 Total Videos • 16,789 Total Videos • 138,384 Total Videos Jake Paul Genevieve's Playhouse Sparkle Spice Manucraft Erika Costell Joined in Dec 2016 Joined in Aug 2016 Joined in Sep 2016 Joined in Nov 2016 Joined in Jun 2017 5.0b views, 17.6m sub 3.0b views, 8.0m sub 1.4b views, 2.6m sub 1.4b views, 4.5m sub 535m views, 4.6m sub
MrBeast DM Pranks TVFilthyFrank Mariale Marrero Katie Angel Joined in Jun 2016 Joined in Aug 2018 Joined in Jan 2016 Joined in Nov 2017 Joined in Mar 2018 1.0b views, 13.0m sub 840m views, 5.0m sub 814m views, 6.1m sub 1.1b views, 16.6m sub 715m views, 8.5m sub ScaleLab’s management team has been instrumental in its tremendous historical growth and success and will continue post-acquisition
David E. Brenner Maximilien Desmarais George Paskalev Konstantin Shkut Founder & CEO Co-Founder COO CTO Founded ScaleLab in 2013 Founded ScaleLab in 2013 Past Experience Past Experience
Previously CEO of Principal Media, Brings digital advertising, development and where he created over 200 hours of TV social media experience to ScaleLab & online programming for leading networks worldwide At Guess Inc., he spearheaded global social media strategy and expanded fashion Member, YPO (Hollywood chapter) powerhouse’s social footprint to 78 countries.
Past Experience Past Experience
Tyler Wells Adrian Kort Executive VP Director of Finance
Education Education Past Experience Past Experience YEAH1YEAH1 GROUP GROUP AFTER AFTER ACQUISITION ACQUISITION Post Yeah1’s acquisition, ScaleLab is poised for massive growth in the near future
Mariale Marrero ScaleLab Creator 16.6M Subscribers Traditional Media Pillar Digital Media Pillar Media Commerce Pillar
Leading YouTube MCN A joint venture with AKS Japan to o Operating 4 top-ranked TV Channels o o launch Vietnams largest Idol Girl National Cable Coverage 3,000+ Channels, 610m Subscribers & o o Group over 6.9bn monthly views Yeah1 TV, Yeah1 Family, iMovie TV & o The Debut was hold on December 22, UM Channel 3 Dimond Buttons, 122 Gold Buttons o o 2018 with huge success by attracting and 919 Silver Buttons 17k audience Strong Footprint in US and Latin Youth & Housewife focused content o o America under ScaleLab Incubator like program where by we o Strong Influencer management o test, R&D and invest in new start-ups o Fast Growing Movie Investment and business Production House and ideas to support the Y1G o Digital Publishing Business Unit o Full film process from investment, The genesis behind Yeah1 Ventures is Operating as 1 of only 35 Google o production and distribution o that the digital world of content, Certified Publishing Partner under the distribution and commerce is always Netlink Subsidiary changing and we need to ensure that o Dominant TV Agency Business o Operating Global Network WAP ad- we are ahead of the game o Currently representing over 16 network under Webface Subsidiary channels across the country o 900+ Current Publishing Partners
o 3.2bn+ Monthly Impressions Brand 1 Brand 3
NO OF CHANNELS 1,254+ 1,750+ 3,000+
MONTHLY VIEWS 3.9bn + 3.0bn + 6.9bn+
SUBSCRIBERS 202mn + 408mn + 610mn+
GLOBAL MCN RANKING #6 Top 10 Top 3
YOUTUBE AWARDS 37 Gold 379 Silver 3 Diamond 85 Gold 540 Silver 3 Diamond 122 Gold 919 Silver Buttons Buttons Buttons Buttons Buttons Buttons Buttons Buttons
PRESENCE 240 countries+ 240 countries+ 240 countries+
Note: Synergy effect has not been counted OUR KEY OBJECTIVES
Build Global AVOD Distribution platform for our 1 own and licensed content
Work with IP owners to export their local 2 content globally
3 Generate and collect user watching data to further optimize existing channel performance
Use viewer trending data to produce shorter 4 form social content for global consumption Channel Acquisition Content Investment
Acquire channels for MCN with best in class Invest in new and original content for service and technology global distribution
Optimization Premium Content Focus
Optimize existing MCN channel License premium content for selective performance and viewership regions
Global Dominance Monetization
Create new Yeah1 global Owned channels Work with Brands for full integrated campaigns (direct sales) If you need any further information, please contact our Investor Relation Team at:
[email protected] (+84) 28 73 006 071
YEAH1 GROUP CORPORATION
Head Quarter Office
1st Floor, M Plaza Tower, 39 Le Duan St, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam
Main Operating Office
201A Nam Ky Khoi Nghia St., Ward 7, District 3, Ho Chi Minh City, Vietnam This Acquisition Announcement (“Announcement”) is prepared by Yeah1 Group Corporation (“YEG", or the "Company") solely for informational purposes. The information contained in this document is of a general nature only, it is not meant to be comprehensive and does not constitute financial, legal and tax due diligence reports. No copy or use of this presentation should occur without the permission of the Company. YEG retains all intellectual property interests associated with the Announcement. The Company expressly disclaims liability for any wrong purpose use of such content.
This information includes certain statements and estimates provided by the Company with the projected future performance of the Company. Such statements, estimates and projections reflect various assumptions by Management concerning possible anticipated results, which assumption may or may not be correct. No representations are made as to the accuracy of such statements, estimates or projections.
This Announcement may contain statements that are not historical facts, referred as “forward looking statements.” The Company’s actual future results may differ materially from those suggested by such statements, depending on various factors.
Further, the Company is not under any obligation to revise or publicly release any revisions to these “forward-looking statements”, in light of new information or future events.