E-SPORTS MARKET OVERVIEW GENERAL OVERVIEW E-SPORTS MARKET STRONG CONSUMER MARKET WITH UNTAPPED POTENTIAL E-SPORTS REVENUE, $ E-SPORTS AUDIENCE, M +28% +16% YoY +14% YoY +34% +20% YoY YoY 1,2BN 1,2BN YoY 515 500 +36% +43% 444 940M YoY YoY 400 390 +51% 264 800M 700M 324 224 YoY 300 235 195 490M 161 200 400M 325M 115 OCCASIONAL VIEWERS 100 195 220 251 120 163 E-SPORTS 0 0 ENTHUSIASTS 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 ARPU GROWTH REVENUES REVENUES PER FAN $3,3 $4,8 PER FAN 2016 2019 $490M CAGR 40% $1,2BN TOTAL REVENUES TOTAL REVENUES * DATA SOURCES - NEWZOO RESEARCHES AND DASHBOARD SPLIT BY REGION AND CATEGORY NORTH AMERICA WESTERN REVENUE PER CATEGORY, $, 2017 EUROPE $257M EASTERN $151M EUROPE SOUTH $77M KOREA $47M 155M CHINA 268M $105M 700M 117M LATIN SOUTHEAST AMERICA ASIA 65M 95M $20M $700M $20M GLOBAL MARKET SPONSORSHIP ADVERTISING GAME PUBLISHER FEES MEDIA RIGHTS MERCHANDISE & TICKETS * DATA SOURCES - NEWZOO RESEARCHES AND DASHBOARD E-SPORTS ECO-SYSTEM GAME DEVELOPERS & PUBLISHERS TEAMS AND PLAYERS COMPANIES WHICH DEVELOP, PUBLISH GROUP OF PROFESSIONAL GAMERS UNITED UNDER ONE BRAND. EACH AND SUPPORT E-SPORTS GAMES BRAND CAN HAVE SEVERAL TEAMS IN MULTIPLE GAME TITLES CHANNELS EVENTS & LEAGUES VISPA BROADCASTING PLATFORMS THAT ALLOW ORGANIZATIONS WHICH CREATE AND FANS TO WATCH LIVE E-SPORTS ACTIONS HOLD ONLINE/OFFLINE TOURNAMENTS WHY E-SPORTS? GAME DEVELOPERS SPORTS CLUBS GAME DEVELOPERS ARE MAKING SPORTS CLUBS AND OWNERS BUYOUT E-SPORTS #1 MARKETING TOOL E-SPORTS TEAMS BRANDS OR CREATE E-SPORTS DIVISIONS 16$ ARPU TV CHANNELS ARPU IN E-SPORTS WILL GROW 8 TIMES MAJOR TV CHANNELS START TO BIGGER IN UPCOMING 10 YEARS BROADCASTING E-SPORTS LEAGUES AND TOURNAMENTS 2$ 10 YEARS E-SPORTS AUDIENCE 390M 16-36 YRS TOTAL AUDIENCE 85% OF ENTHUSIASTS 195M 195M 85% OCCASIONAL VIEWERS ENTHUSIASTS MALES AUDIENCE PROFILE (US) 42% 58% owns an iPhone has very positive vs 38% of online population brand attitude 30% vs 42% of gamers has very positive 20% brand attitude 46% streams via Twitch vs 19% of gamers uses Google Play vs 3% of gamers vs 44% of online population 35% has subscription 35% vs 13% of online population owns a Samsung phone vs 31% of online population 22% 52% watches has subscription vs 13% of online population vs 29% of online population * DATA SOURCES - NEWZOO RESEARCHES AND ESFORCE ESTIMATION E-SPORTS TALENTS AS OPINION LEADERS WHEN IT COMES TO BUYING PRODUCTS OR SERVICES E-SPORTS PLAYERS ARE ROLE MODELS FOR MILLIONS OF ADMIRERS WANT TO EXPLORE TEAMS MAKE PURCHASING PARTNERS PRODUCTS AND DECISIONS BASED DIRECTLY SERVICES ON SPONSORSHIP BRAND EXPOSURE * DATA SOURCES - STEELSERIES RESEARCHES SPORTS VS E-SPORTS NOTEABLE PRIZE MONEY IN 2015 MILLION VIEWERS IN 2015 20M $20M LOL World Finals 36 $15M DoTA 2 International 31 E-SPORTS 11M CS:GO ESL Cologne 27 $10M 9M NBA Finals 20 The Masters 18 $5M MLB World Series 17 2M TRADITIONALS SPORTS NHL Stanley Cup 5,5 0 Kentucky Derby The Master Wimbledon DoTA 2 0 10 20 30 40 The International MARKET GROWTH POPULARITY OF (E) SPORTS BY AGES** 60% ~$100BLN ~$120BLN AMERICAN FOOTBALL VIDEO GAMES INDUSTRY VIDEO GAMES INDUSTRY 50% ~$1BLN ~$8BLN 40% E-SPORTS INDUSTRY E-SPORTS INDUSTRY 30% BASKETBALL 20% BASEBALL BLN BLN ~$152 ~$160 ICE HOCKEY SPORTS INDUSTRY SPORTS INDUSTRY 10% 0% E-SPORTS 2015 2020 10-20 21-35 36-50 51-65 * DATA SOURCES - NEWZOO RESEARCHES; ESFORCE ESTIMATION; OPEN SOURCES DATA (TOURNAMENTS, LEAGUES) ** US BRANDS WORLD TOP BRANDS ARE ALREADY IN E-SPORTS MORE AND MORE NON-ENDEMIC BRANDS ARE COMING INTO E-SPORTS EVERY YEAR ENDEMIC NON-ENDEMIC CASES NON-ENDEMIC TOP E-SPORTS GAMES GAME MONTHLY PLAYERS TOTAL PLAYERS TOTAL HOURS WATCHED SHARE E-SPORTS 100M N/A 100M 28% 9,5M 28M 50M 46% 11M 102M 37M 37% N/A 70M 36M 12% N/A N/A 5M 43% N/A 30M 22M 7% N/A 20M 5M 25% E-SPORTS TEAMS OVERVIEW OVERVIEW 100+ PROFESSIONAL TEAMS ON E-SPORTS MARKET TOP E-SPORTS TEAMS 16,4M 4,5M 2M 3,8M 880k 3,1M 700k 1,7M 640k 1,3M 490k 1,2M WEBSITE VISITS* SOCIAL MEDIA 360k FANS** 1,1M 350k 1M 575M 3,8M 337M 2,8M 220M 2,5M 178M 2M 153M 1,9M LIVE BROADCAST & PLAYERS’ SOCIAL YOUTUBE VIEWS*** 91M MEDIA FANS** 1,9M 78M 1,8M 75M 1,7M PRIZE MONEY WON ** $15,5M $7,3M $6,3M $5,2M $5,1M *AVERAGE BASED ON LAST 3 MONTHS **TOTAL ***ALL CHANNELS, ALL TIME TOTAL TOP E-SPORTS PLAYERS E-SPORTS PLAYERS ARE TRENDSETTERS FOR MILLIONS OF FANS TOP PLAYERS FANBASE 0 1M 2M 3M Bjergsen (Team SoloMid) ~2,7M pashaBiceps (Virtus Pro) ~2,1M scumper (OpTic Gaming) ~1,8M brTT (RED Canids) ~1,5M Faker (SK Telecom T1) ~1,4M xPeke (Origen) ~1,4M Dendi (Natus Vincere) ~1,3M kami (paiN Gaming) ~1,2M GeT_RiGhT (Ninjas in Pyjamas) ~1,2M Rekkles (Fnatic) ~1,2M FalleN (SK Gaming) ~1M s1mple (Natus Vincere) ~0,7M TEAMS SPONSORSHIP PROMOTION KIT PLAYERS GAMING HOUSE PROMOTION PROMO BRANDING CAMPAIGNS SPONSORSHIP PROMOTION UNIFORM DIGITAL & IN-GAME BRANDING BRANDING CELEBRITY LIVE BROADCAST VIDEOS CO-BRANDED PROMOTION PRODUCTS SPONSORSHIP PACKAGE PRICE RANGE $150K - $1M TEAMS SPONSORSHIP PROMOTION KIT TEAMS EVALUATION 21 TOP TEAMS REACH VALUE WEBSITE SOCIAL MEDIA VISITS* FANS** 23M 23M LIVE BROADCAST & PLAYERS’ SOCIAL ~$50M+ YOUTUBE VIEWS*** MEDIA FANS** SPONSORSHIP 1,6B 26M INVENTORY AND MEDIA RIGHTS TOP E-SPORTS PLAYERS & TALENTS *AVERAGE BASED ON LAST 3 MONTHS **TOTAL ***ALL CHANNELS, ALL TIME TOTAL E-SPORTS TOURNAMENTS OVERVIEW OVERVIEW MAJOR TOURNAMENTS COVER 95% OF E-SPORTS AUDIENCE WESTERN EUROPE EASTERN EUROPE NORTH AMERICA ASIA 3-5M 15-30M UNIQUE VIEWS VIEWS PER TOP EVENT EVENTS SPONSORSHIP PROMOTION KIT SPONSORSHIP PROMOTION OFFLINE LIVE BROADCAST DIGITAL PROMO STANDS (BOOTH’S) PROMOTION DURING STREAMS (BANNERS, DIGITAL MEDIA BRANDING & BANNERS PRE-ROLLS, CHAT-ADS) (WEB-SITE, SOCIAL MEDIA, YOUTUBE) STAGE BRANDING STUDIO BRANDING PROMO POSTS IN SOCIAL MEDIA BRANDING (PRESS-WALLS, TICKETS, MERCHANDISE) CASTERS PROMOTION PRODUCT PLACEMENT IN-GAME BRANDING & ADS SPECIAL PROMO SPONSOR SHOWS VIDEOS ON VENUE PROMO VIDEOS PRODUCTION SPONSORSHIP PACKAGE PRICE RANGE $100K - $5M / PER EVENT EVENTS SPONSORSHIP PROMOTION KIT LEAGUES AND TOURNAMENTS EVALUATION MAIN EVENTS REACH VALUE ~$200M+ SPONSORSHIP ~370M INVENTORY 95% OF E-SPORTS AND MEDIA RIGHTS FANS & ENTHUSIASTS OTHER PROMOTIONAL POSSIBILITIES IN E-SPORTS OTHER PROMOTION POSSIBILITIES IN E-SPORTS PROFESSIONAL PLAYERS, E-SPORTS TALENTS AND BROADCASTING CELEBRITIES PRO AMATEUR STUDIOS EVENTS AND MILLIONS OF OTHERS BRAND INTEGRATIONS EXAMPLES & EVALUATION HYPERX KEY PLAYER ON E-SPORTS SPONSORSHIP MARKET WITH WORLDWIDE FOCUS SPONSORED SPONSORED E-SPORTS SPENDING E-SPORTS TEAMS TOURNAMENTS EVALUATION ~$3,5-4M + OTHER LOCAL + OTHER LOCAL MARKETS TEAMS MARKETS EVENTS MSI MODERATE INVESTMENT IN E-SPORTS WITH FOCUS ON EVENTS AND LOCAL TEAMS SPONSORED SPONSORED E-SPORTS SPENDING E-SPORTS TEAMS TOURNAMENTS EVALUATION ~$600-900k ASUS FOCUSES ON OWN IP TOURNAMENTS, HIGH-QUALITY TOURNAMENTS AND E-SPORTS TEAMS SPONSORED SPONSORED E-SPORTS SPENDING E-SPORTS TEAMS TOURNAMENTS EVALUATION OWN ASUS TOURNAMENT ~$800k-1M SPONSORSHIP + OWN TOURNAMENT ORGANIZATION EXPANSES THANK YOU FOR ATTENTION! THE LAST QUESTION IS… WHEN WILL YOU BE IN E-SPORTS? CONTACTS Andrey Cherednychenko NA`VI Head of Partnerships [email protected] facebook.com/andriy.cherednychenko.