gateway to the $1.3 trillion sports...
TRANSCRIPT
Gateway to the $1.3 Trillion Sports Market
TSXV:PROS
DisclaimerTSXV:PROS
ProSmart Enterprises Inc. is a public company listed on the Toronto Stock Exchange (Venture) under the symbol "PROS". The legal disclaimers listed below (the "Legal Disclaimers") govern your access and use of this presentation, “The ProSmart Enterprises Inc. Public Deck" (the "Deck").From time to time, the Company may amend the Legal Disclaimers by posting revisions on the Deck with no additional notice to you. Check back frequently to see the current Legal Disclaimers then in effect.
No Offer to Sell: The Deck does not constitute an offer to sell or solicitation to purchase securities of the Company.
Non-Canadian Investors: The Deck does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Company may be lawfully sold in their jurisdiction.
Forward-looking Statements: Certain statements in the Website are "forward-looking statements" which reflect the Company's current expectations and projections about future events and financial trends that it believes might affect its financial condition, results of operations, business strategy and financial needs.In some cases, these forward-looking statements can be identified by words or phrases such as "may", "might", "will", "expect", "anticipate", "estimate", "intend", "plan", "indicate", "seek", "believe", "estimates", "predicts" or "likely", or the negative of these terms, or other similar expressions intended to identify forward-looking statements.
The Company has based these forward-looking statements on its current expectations and projections at the time the statements were originally made or at the time the information was originally provided, about future events and financial trends that it believes might affect its financial condition, results of operations, business strategy and financial needs. Forward-looking statements are based on certain assumptions and analyses made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and it cannot assure that actual results will be consistent with these forward-looking statements. Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including without limitation, those risks and uncertainties discussed elsewhere on the Website and in the Company's Prospectus and other filings on SEDAR.
If any of these risks or uncertainties materialize, or if assumptions underlying the forward-looking statements prove incorrect, actual results might vary materially from those expressed or implied by the forward-looking statements contained in the Website. These factors should be considered carefully and prospective investors should not place undue reliance on these forward-looking statements. Although the forward-looking statements contained on the Website are based upon what the Company currently believes to be reasonable assumptions, the Company cannot assure prospective investors that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of their inclusion on the Website. The Company does not intend, and the Company does not assume, any obligation to update or revise these forward-looking statements to reflect new events or circumstances.
Disclaimer of Warranties and Limitation of Liability: The information on the Deck is taken from sources believed to be reliable and the information is believed to be accurate that the time that it is posted on the Website. However, the information is provided "as is" without any express or implied warranty of any kind. The Company and its suppliers do not warrant the accuracy, completeness or timeliness of the information and reserve the right to make changes at any time without notice.
The Company and its suppliers cannot be held liable under any circumstance for any damages whatsoever, including without limitation, damages for the loss of profit, business interruption, loss of information and data, arising out of the use or inability to sue the Website and the information it contains, even if the Company has been made aware of the possibility of such damages.
Stock Quote Information on the Deck: All stock quotes are delayed/dated unless otherwise stated. All stock quotes and historical stock price data are provided by third party service providers and are provided for informational purposes only, and are not intended for trading purposes. If you are contemplating trading in the securities of the Company or of any other issuer referred to on the Website, we strongly advise you to seek independent professional advice before making any investment decision. The Company makes no representation or warranty regarding the accuracy or completeness of any such stock price quotes or historical stock price data and has not taken any steps to verify the adequacy, accuracy or completeness of the information provided on the Website.
Gateway to the $1.3 Trillion Global Sports MarketTSXV:PROS
SportgoTM - the Global online network that connects sports fans, teams and brands
1000% Growth in last 24 Months; Forecast 6.7 M users by 2020
Integrating with WeChat China to access $223B Chinese sports market
Management Has Built & Sold Sport-Related Companies combined for $1B+
Highly Active M&A: Sports Sector has had 25 major takeovers in 2 years
1.
2.
3.
4.
5.
It’s Evolving
• Sports TV networks losing viewers & money fast
• Fans moving online without a “go to” destination
• Sports content marketing becoming increasingly
sophisticated
It’s Fragmented
• Fan activity spread across multiple social
networks
• Teams, brands and companies unable to identify
and engage fans and audiences
• Teams must now pay to access their own
Facebook communities
$1.3TSports Market
Huge. Evolving. Fragmented.
The Market is Huge
• $1.3T global sports market
• $7B on youth sports travel in the US alone
• 1B+ youth and recreational players
• 650M sports fans on Facebook
• 200M sports fans on Instagram
• 60%: of Twitter’s traffic is sports-related
• China & N. America dominate fan numbers
The Sports Market
is now online
There is a Massive Gap in the Sports Market:
• Teams cannot find or properly engage their fans online
• Teams & Leagues have no control of their online audiences
• Sports companies have no access to their customers
The Old Sports TV Model is Finished
• Fatally expensive rights ($66 Billion just to acquire 22 RSN’s with 44
pro-sport teams)
• Completely failed to harness social media effectively
• In a single year (2016):
• Sky Sports viewers dropped by 19%
• ESPN viewers dropped by 17%
Fans have Now Moved Online
• Online sharing of sports clips rose by +40% (2016)
• 672 million: Tweets sent during the 2014 Soccer World Cup
• 43.4 million: Tweets sent during the 2015 Super bowl
Change in TV viewership, 2011 and 2016 by age group.
• An online network designed for the sports industry
• 1500+ teams & organizations in 100+ countries;
growing fast!
• The only online network partnered with Sports Radar
(World’s largest sports feed company) – giving users
live feeds on 325,000+ sports events
• Best-in-class content created “exclusively” by hall-of-
fame, Olympic & pro athletes and world class partner
• Creates direct connection between teams and fans
TSXV:PROS
The SportgoTM Online NetworkMillions in monthly content views and growing…
ONE CENTRALIZED NETWORK
Pro Sports teams
Unique access to fans
Fans (UGC)
Fan created,
shareable content
Event management &
promotion apps
Educational
Best-in-class content created
by star athletes
Official live content rights
(NBA, NFL, PGA TOUR, etc.)
325,000+ sport events and feeds
Sports Influencers
Strong support from
Olympic & sports stars
SPORTGO CONTENT CHANNELS DRIVE VIEWERSHIP
TSXV:PROS
ProSmart’s Proprietary Sports Marketing Engine
“Direct to Fan” Marketing
• ProSmart has developed a disruptive technology they call an open social engine
• ProSmart’s open social engine is able to uniquely identify and activate fans across all
social networks. Leagues are challenged not being about to access their own
communities on Facebook without paying a fee to do so.
• No more middleman such as Facebook or Google. Connects brands directly with fans.
Open social and “app-less sharing”
• Content is tracked across all major social networks. No one else can do this.
• Identifies fans and influencers by name and contact details. No one else can do this.
• Differentiates between fans who are influencers vs simply popular. No one else can do this
• Uses “opt-in” features to obtain contact details and permission; creates direct-to-fan
marketing channels for partners.
A single piece of content, shared on
competing social platforms, enables PS to
Identify thousands of influencers and
unnamed fans. This is game changer!
Since signing the Vancouver Canucks, ProSmart is now in
discussions with over 120 sports franchises and brands
Here is why:
TSXV:PROS
Teams, leagues and corporations in active discussions with ProSmart
Building on Canucks, Panthers and Red Bull partnerships, ProSmart now in discussion with 120+ Tier One brands
TSXV:PROS
The Chinese Winter Olympics
• ProSmart has partnered with DGA group – one of China’s leading
sports marketing agencies (NFL, NBA as clients), to integrate ProSmart
with WeChat (980M monthly users in China)
• China mandated spending min. of $3.9B on 2022 Winter Olympics
• Ice hockey is a major focus, with 650 new rinks being built by 2022
• China’s sports industry est. to more than triple its current US$223B
value by 2025 (Bank of China, 2017)
• ProSmart has acquired DL (Doug Lynch) Hockey, which operates hockey
clubs & skills camps in China; has well-respected, established brand
Unrivalled China Opportunity
PROSMART INTEGRATING ITS NETWORK WITH WECHAT
TO ACCESS USD $223B+ CHINESE SPORTS MARKET
TSXV:PROS
856,350
2018 2019 2020 2021 2022
3,881,250
users
6,760,625
users
10,257,240
users
18,947,669
users
SportgoTM User Growth Projections
865,000 users
M&A Activity and Metrics Show Major Blue Sky
• Based on comparison to other online network companies, ProSmart calculates
value of between $40 and $50 per SportgoTM user (see appendix)
• Sports industry is marked by very active M&A - 25 sports media & sports
tech companies acquired in last two years alone
TSXV:PROS
Projected Market Growth
SportgoTM user growth rate and solution is directly comparable to LinkedIn growth track
TSXV:PROS
Shareholder Value Creation Potential
TOTAL ENTERPRISE VALUE ($MM)
(Monthly Active User)
• Co-built Club Penguin:
sold to Disneyfor $750M
• 700k paid subs
• 30 years early stage
growth specialist
• Solution Strategist
• STN Sports Platform
• 2.4B audience
• 75+ Leagues
• PHD Computer Sc.
• Systems Architect
• Prof. OK college
• CA
• Media specialist
• Public expertise
• Financial Background
• Professional Hockey
• Strategist
Pascal AudetteDirector
APPENDIX
TSXV:PROS
• AUDIENCE – Impressions & audience views
• REVENUE - diverse set of revenue drivers (ARPU)
• USERS - strong user lifetime value (EV/MAU)
• CONTENT - rich sport media repository
• DATA - “big data” generation and capture
• IP - scalable & flexible proprietary technology
Value Proposition
Impressions& Views
RevenueValueMember
Value
Content Value
Data Value
IPValue
Corporate value in built upon 6 key components.
TSXV:PROS
Solving the Fragmented Online Landscape
This enables the Company to liberate,
harness and drive sports fans and
communities to ProSmart as a one-stop
destination.
One of the irrefutable laws of the sports industry is
that the business revolves around the fans.
ProSmart is ideally
positioned to take
advantage of this by
using fan identification
and conversion tools.
1.5 Billion+ Sports Fans