ESL Capital Market Day
Stockholm, March 12 2019
ESPORTS HISTORY – ESL FROM VISION TO A GLOBAL MARKET
2000-2010
• 2000-2010
2011-2015
2016-2019+
IEM Global Challenge Los Angeles 2007 IEM Katowice 2019
ESL One Cologne 2014
Scale Monetize
Tens of millions
Global
Grow
Build
Tens of thousands
EU
Hundreds of thousands
EU, NA, LATAM, APAC
Large
FANS
REGIONS
EVENT SIZE
Global
Micro / small
13.03.2019 3INTRODUCTION
ESL strategic framework
WHY
(PURPOSE)
TO CREATE A WORLD WHERE EVERYBODY CAN BE SOMEBODY
MISSION
VISION TO MAKE ESPORTS THE LARGEST MOST ATTRACTIVE SPORT IN THE WORLD
BUILD THE MOST AMAZING STAGES WHERE THE PLAYERS ARE CELEBRATED AS STARS OF THEIR GENERATION,
CREATE LEGENDARY ESPORTS MOMENTS FOR OUR FANS AND CONNECT THEM TO OUR PARTNERS
HOW By building esports ecosystems from zero to hero and local to global
THE GLOBAL ESPORTS Company
WHAT
For Players For Fans For Partners
13.03.2019 4INTRODUCTION
ESL TEAM OPERATES AROUND THE GLOBE – Studios and offices
ESL OFFICE AND STUDIO HQ GERMANY
ESL OFFICE RUSSIA
ESL OFFICE AND STUDIO UK
ESL OFFICE AND STUDIO POLAND
ESL STUDIO BENELUX
ESL OFFICE FRANCE
ESL OFFICE ITALY
ESL OFFICE
AND STUDIO LA, USA
ESL OFFICE NY, USA
ESL OFFICE AND STUDIO SPAIN
ESL OFFICE
AND STUDIO INDIA
ESL OFFICE ASIA
ESL OFFICE AND STUDIO INDONESIA
ESL OFFICE
AND STUDIO BRAZIL
500+ EMPLOYEES
WORLDWIDE
ESL OFFICE
AND STUDIO AUSTRALIA
13.03.2019 5INTRODUCTION
ESL GROWTH FOCUSED ON OWNED AND OPERATED PROPERTIES
ADD MEDIA PARTNERS
INCREASE BRAND PARTNERS
Revenue Growth
Grow premium content
Grow long-term value with existing partners
BRAND
PARTNERS
MEDIA
PARTNERS
Expand distribution channels and platforms
Add non-endemic partners
Increase audience reach
PublisherS FANS
Grow REGIONAL PRODUCTS
EXPAND product verticals
Add game licenses
Extend game’s verticals
Co-Build ecosystems
TEAMS
Grow existing and new properties in Asia, China, LATAM
PLAYERS
Add local championships and events
Audience Growth
FOCUS O O
13.03.2019 6We build esports ecosystems
7WE BUILD ESPORTS ECOSYSTEMS
ESL ENABLES growth IN new games verticals – the Game “Pyramid”
Initial ESpORTS ECOSYSTEMS STRUCTURE GAME PYRAMIDS
360° ESPORTS Properties (O O)
DEFINE GAME ESPORTS STRATEGY
CUSTOMIZE COMPETITION FORMAT
OPERATE PRODUCTION
MANAGE CONTENT
Scale: Add more games
Mature esports ecosystems
Full product development
1 – 3 years
13.03.2019 8WE BUILD ESPORTS ECOSYSTEMS
ESL PROPERTIES cover the full scope of esports
FROM ZERO TO HERO
LARGE PROPERTIES
MASTERS
1
Mass-Market
MEGA prizes
STAGEs
+ online
ESL BRANDED OR WHITELABEL
Watch Play
All platforms
All games
CHALLENGER
LARGE PRIZES
STAGEs
+ online
ENTHUSIAsts
2
Watch Play
All levels
All geographies
OPEN
3
TEASER PRIZES
Online
Friends Family
OPEN
Watch , Play, Engage, Learn
TARGET AUDIENCE
PRIZE LEVEL
Venue SIZE
Competition Style
13.03.2019 9WE BUILD ESPORTS ECOSYSTEMS
EACH GAME PYRAMID FUELED WITH 20 YEARS OF EXPERIENCE
WE BUILD ESPORTS ECOSYSTEMS
TOURNAMENT STYLE LOCATION SIZE ACCESS
REGIONAL SCOPE PRIZES …
SCALE : # of Games Pyramid Scope
AGNOSTIC TO PUBLISHERS
ESL BRANDED – O O WHITELABEL – ESS
Masters
CHALLENGER
OPEN
Grow Scope with existing Partners
Test Learn with New Publishers
Existing Full Scope Pyramids –
New Pyramids – Grow Scope
MaintaiN
13.03.2019 10
ESL CONTINUES INVESTING IN OWNED AND OPERATED PROPERTIES
Relative revenue breakdown
38%
70%
Growing O O properties to push brand, expand existing core products, create new pyramids and scale
62%
30%
ESS
O O
2015’ACT 2018’ACT
13.03.2019 11
34%
52M 1M 375K 20 12
Video sessions Linear TV takers Peak during the Gained followers Broadcasted Stage
during Champions Champions Stage ESL CSGO Twitch languages
Market share among 21-30 age group
+80% +20% 2.9M
Largest live
TV esports audience in
Denmark ever vs. 2018 vs. 2018 Total followers
+137% +67%
587K #13
Peak on main Largest Twitch
Twitch channel channel (followers)
Merchandising Ticketing revenue revenue vs. 2018 vs. 2018
13.03.2019 12 FANS, PLAYERS
AND
TEAMS
13 FANS, PLAYERS AND TEAMS
ESL CREATES PLATFORMS FOR PLAYERS AND FANS
▪ CommWunaittcyh-based approach: Play – Watch – Learn –
Engage
Play
▪ Game hubs: tailor-made for community for selected
Watch core ESL games
ESL B2C
Approach
GUIDING Game
PILLARS Hubs
Platform
Hubs
▪ Deep-game related features: anticheat, matchmaking,
AI assistant
Learn
▪ Platform hubs: cluster non-core games by platform
▪ Further explore potential of new titles
Engage
13.03.2019 14 FANS, PLAYERS AND TEAMS
ESL ATTRACTS THE WORLD’S TOP TEAMs
100%
Astralis #1 Virtus Pro ** #1 G2 Esports ** *
Natus Vincere ** #2 Team Liquid #2 PENTA *
of world‘s top teams participate at events run by
Faze Clan ** PSG.LGD *#3 #3 Evil Geniuses
#4 Team Secret Team Liquid *#4 Team Empire
Mousesports ** #5 Mineski #5 PET Nora-Rengo *
Fnatic ** #6 Vici Gaming #6 Faze Clan ** *
#7 MIBR #7 Newbee Team Secret *
13 Teams
are members of Cloud 9 #8 Team Liquid *VGJ.Thunder #8
OG #9 Rogue *
Ninjas in
Pyjamas **
TI8 winner
* Based on # of top 3 appearances at
2018-2019 premier tournaments
Intel Grand Slam
CONTENDERS
SOURCES:
-CS:GO: HLTVtop 10 teams of 2018 (
-Dota 2: Dota Pro Circuit 2017-2018 Rankings (
-Rainbow SixSiege: top 3 appearances at 2018-2019PremierTournaments (
15
TEAM SHOWCASE: ENCE @ IEM KATOWICE 2019 – from ZERO to HERO
ENCE, the most unlikely of IEM KATOWICE 2019 FINALISTS
In the course of one event, team ENCE left its mark on the history of CS:GO.
They played more than 35 maps all the way from the regional qualifiers to the grand finals.
▪ From European closed qualifiers…
▪ To Champions stage and Grand Finals
▪ From underdog… ▪ To victory against #2 and #3 teams in the world
▪ To IEM Katowice legendary stage
▪ To world Top 5
▪ From small offsite venue…
▪ From #17 CS:GO team in the world…
13.03.2019 16 GAME
PUBLISHERS
17 GEAsMElPUPBLRISHOERVS IDES GAME SOLUTIONS TO GROW ESPORTS
Global Footprint
Strategic vision Time to market Global network reach Scaleability
Content Brand Partners Teams Distribution networks
Product Management Operations Players’ understanding Lifecycle management
40
Games under license
13.03.2019 18 GPAuMEbPUlBLiIsSHhERSer partnerships – latest achievements
Arena of Valor Pro League
ESL Katowice Royale Fortnite
European Masters League of Legends
Clash of Clans World Championship
FIFA19 Major at Paris Games Week
QuakeCon
PUBG Starchallenge PGI EU
Gamescom
Global Rainbow Six esports partner
CS:GO Major Katowice
BlizzCon (3 stages), Hearthstone Global
Games, Starcraft Katowice
13.03.2019 19 GPAuMEbPUlBLiIsSHhERSer showcase: EPIC GAMES
ESL Katowice royale
▪Most competitive Fortnite tournament to date
▪Dedicated 100 seats stage at
IEM Expo 2019
▪$ 500.0000 Prize Pool
▪200 onsite participants in 4 days
▪ 300K peak online audience
13.03.2019 20 GPAuMEbPUlBLiIsSHhERSer showcase: UBISOFT developing A complete Rainbow 6’s global ECOSYSTEM
▪ Rainbow Six: Siege became a top esports title
▪ 35 million players
▪ Increased consumer engagement
▪ Viewing hours multiplied heavily
ESPORTS STRATEGY PRODUCT MANAGEMENT
GLOBAL PROJECT
MANAGEMENT
GAME CONSULTATION
LEAGUE TOURNAMENT TV PRODUCTION
OPERATIONS BROADCAST
13.03.2019 21 BRAND
PARTNERSHIPS
22 BERSANLD PACROTNENRSSHIUPSMER Profiles ARE HIGHLY ATTractive for brands
54% 70% 550k are 21-35 years old* of esports Enthusiasts Live visitors globally are male at ESL events in 2018
38% NPS 56 240m buy goods from a brand showcased at ESL event
+11 pts increase vs. 2016
Online ESL Fans in 2018
23
13.03.2019 23 BRAND PARTNERSHIPS
REACHING THE LEVEL OF LARGER SPORTS
13.03.2019 24 BRAND PARTNERSHIPS
REACHING THE LEVEL OF LARGER SPORTS
13.03.2019 25 BRAND PARTNERSHIPS
BRAND SHOWCASE: DHL – GLOBAL DEAL WITH HOLISTIC ESPORT INTEGRATION
STADIUM ACTIVATION BRAND ACTIVATION IN-GAME ADVERTISEMENT CUSTOMER ENGAGEMENT
13.03.2019 26 27 BRAND PARTNERSHIPS
BRAND SHOWCASE: INTEL, THE longest standing parTnership in esports
2000 2006 2016-2018 2019+
one of the first between Intel ESL Global partnershipü ▪ Intel becomes ▪ Cooperation ▪ Intel becomes ▪ 3 years investors in and ESL turns Technical announced esports global Partner (longest so far) extending ▪ Intel starts beyond IEM ▪ Intel Extreme ▪ Intel and ESL supporting ESL Masters commits to property is early events in long-term
13+ years
From IEM Season 1 finals at CeBIT 2007… ▪ $1M Intel Grand launched Germany esports Slam is launched partnership
70 IEM
EVENTS
… to IEM Katowice CS:GO Major 2019
Same core values and principles, magnified investment and memorable events
13.03.2019 28 MEDIA
PARTNERS
29 MEDIA PARTNERS
MEDIA DISTRIBUTION IN ESPORTS IS EVOLVING AND GETTING MORE LOCAL
SELECTION OF DISTRIBUTION PARTNERS
LOCAL VIDEO STREAMING
LIVE VOD
GLOBAL VIDEO STREAMING
LIVE VOD
NEW in CHINA – HuamoaTV, HuyaTV
NEW in US – Mixer, PlutoTV
EXPLORED: Exclusivity Facebook
CONTINUED: Twitch, YouTube
ADDED: Caffeine TV
NEW in GERMANY - ProSieben TV
EXPLORED: Oculus VR
OTHERs
GLOBAL AND LOCAL LINEAR TV
13.03.2019 30 MEDIA PARTNERS
20.5 %
Total Market Share
Market Share 14-29
Market Share 14-49
LINEAR MEDIA PARTNER SHOWCASE – PRO7
Magazines
7 % up to 20% share in the target
4 %
LIVE
Group 14-29
Analysis
Well-known esports faces as casters
▪ Reach per week +150K
▪ Reach per year +5M
Pro players as co-commentators
Make esports understandable for everyone
13.03.2019 31 MIEEDMIA PAARTNNERDS ESL ONE KATOWICE 2019 captured LINEAR MEDIA
TV2 DENMARK YLE FINLAND DMAX Italy
▪ 95K viewers during Grand Finals
▪ 240K viewers on YLE Areena (OTT)
▪ 30K viewers as TV Highlight (rerun) ▪ 115K viewers
▪ Highlight and Live Broadcast for
Fortnite
▪ 34% market share in target group
21-30 ▪ 2,3% market share in target group
15-34 (40% above average)
13.03.2019 32 MDEIDGIA PIATRATNELRSMEDIA PARTNER SHOWCASE – HUYA and HUOMAOTV
▪ In January 2019, ESL
IEM KATOWICE CS:GO – 2018 vs. 2019 expanded digital media distribution partnership in
China with Huya and HuomaoTV
+204% +233%
8
34 14
4
▪ ESL properties will include
ESL One, IEM and CS:GO Pro
League
11
0
4
0
26
10
Huya
Huya
11
HuomaoTV
4
HuomaoTV
▪ China accounted for c.18% of the global esports revenue in
2018*
2018 2019 2018 2019
# of sessions (mm)
# of unique viewers (mm)
13.03.2019 * Source: Newzoo 33
KEY
MESSAGE
34 KEY MESSAGE
ESL IS DEDICATED TO GROW THE ESPORTS INDUSTRY
FANS AUDIENCE
€ | Merchandising € | Ticketing
€ | Prize money
€ | Media rights fees
PLAYERS AND TEAMS MEDIA PARTNERS
We build esports ecosystems
€ | Publisher contribution
€ | Sponsor + advertisement fees
GAME BRAND
PUBLISHERS SPONSORS
13.03.2019 35 KEY MESSAGE
ESL TODAY AND TOMORROW
1
Leading global esports company in a fast growing market
Grow and build more full grown properties and games’ pyramids
ESL PRODUCTS MONETIZATION
Catch up on monetization backlog and market growth
2
Building esports ecosystems by growing new players, audience, governance and fairplay
We focus on growth
3
Experienced team with proven track record
B2C Brand
Open, inclusive, to become the brand of the largest sport where everybody can be somebody
Expand consumer offering from Play and engage with learn and watch
4
Very broad portfolio of publishers, brand sponsors and media partners
13.03.2019 36 Thank You
37