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Gateway to the $1.3 Trillion Sports Market TSXV:PROS

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Page 1: Gateway to the $1.3 Trillion Sports Marketprosmart.redbreadlab.com/wp-content/uploads/2018/05/Pros... · 2019. 6. 13. · Gateway to the $1.3 Trillion Global Sports Market TSXV:PROS

Gateway to the $1.3 Trillion Sports Market

TSXV:PROS

Page 2: Gateway to the $1.3 Trillion Sports Marketprosmart.redbreadlab.com/wp-content/uploads/2018/05/Pros... · 2019. 6. 13. · Gateway to the $1.3 Trillion Global 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has based these forward-looking statements on its current expectations and projections at the time the statements were originally made or at the time the information was originally provided, about future events and financial trends that it believes might affect its financial condition, results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.

Page 3: Gateway to the $1.3 Trillion Sports Marketprosmart.redbreadlab.com/wp-content/uploads/2018/05/Pros... · 2019. 6. 13. · Gateway to the $1.3 Trillion Global Sports Market TSXV:PROS

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.

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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

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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.

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• 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

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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:

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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

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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

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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

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Projected Market Growth

SportgoTM user growth rate and solution is directly comparable to LinkedIn growth track

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Shareholder Value Creation Potential

TOTAL ENTERPRISE VALUE ($MM)

(Monthly Active User)

Page 13: Gateway to the $1.3 Trillion Sports Marketprosmart.redbreadlab.com/wp-content/uploads/2018/05/Pros... · 2019. 6. 13. · Gateway to the $1.3 Trillion Global Sports Market TSXV:PROS

• 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

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APPENDIX

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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.

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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