[PPT] - ACQUISIT ION ANNOUNCE ME NT OF A L e ading Inde pe nde nt YouT PowerPoint Presentation

SLIDE 1

ACQUISIT ION ANNOUNCE ME NT OF A L e ading Inde pe nde nt YouT ube Multi- Channe l Ne twor k (“MCN”) base d in the Unite d State s

SLIDE 2

Ke y Sta tistic s

Ye a h1 Gro up (Ye a h1 o r YE

G) is ple a se d to a nno unc e to da y tha t we ha ve sig ne d a b inding a g re e me nt fo r the 100% purc ha se o f Sc a le L a b , L L C (Sc a le L a b )

Sc a le L

a b is L

s Ang e le s b a se d Yo uT

ub e Multi Cha nne l Ne two rk (MCN) simila r to Ye a h1 Ne two rk (Y1N)

F
unde d in Aug ust 2013, the Co mpa ny ha s e xpe rie nc e d ra pid g ro wth. T
da te , the

Ne two rk ha s o ve r 1,750 Yo uT ub e c ha nne ls g e ne ra ting 3.0b n+ vie ws mo nthly

Sc a le L

a b ’ s pa rtne r c ha nne ls a re lo c a te d a ro und the wo rld with mo re c o nc e ntra tio n in No rth Ame ric a , L a tin Ame ric a a nd E ME A

Onc e inte g ra te d with Ye a h1 Ne two rk, Ye a h 1 Gro up will ha ve o ne o f the la rg e st

Yo uT ub e Ne two rks in the wo rld

T

he ma ximum c o nside ra tio n is USD20m

191% Re ve nue CAGR (2015 – 2017) $27.3 million Gross Re ve nue (2017) 3.0 billion Vie ws Monthly 408 million T

tal Subsc ribe rs (YT

D)

SLIDE 3

Sc a le L

a b is o ne o f the le a ding dig ita l vide o ne two rks wo rldwide in te rms o f vie ws a nd c re a to r q ua lity. T he c o mpa ny ha s wide ne two rk o f

ve r 1,750 c ha nne ls a nd 3.0 bn vie ws monthly
Sc a le L

a b is a g lo b a l b ra nd with a ve ry g o o d ma rke t re puta tio n, ma ny e xisting c o ntra c ts a nd pe rso nne l tha t YE G will inte g ra te s into o ur o wn pla tfo rm

I

nc re a se the Gro up’ s c o mpe titive ne ss in g lo b a l ma rke t a nd Ye a h1’ s b ra nd a wa re ne ss g lo b a lly

T

p- r

anke d YouT ube MCN globally

1

T

he re ve nue o f Sc a le L a b in 2017 wa s USD27.3m with 15-20% g ro wth in 2018

Po st a c q uisitio n we ta rg e t 20- 25% Re ve nue g rowth in 2019 onwa rds
Po st a c q uisitio n it is e xpe c te d tha t 2019 will b re a k-e ve n a s c o sts a re

re struc ture d o ut o f the b usine ss a nd syne rg ie s a re e sta b lishe d with Ye a h1 Ne two rk (mo st te c hnic a l & o ptimiza tio n sta ff will b e b a se d in Vie tna m)

I

n 2020 a nd b e yo nd e xpe c t 10% Ne t Ma rg ins

Str

ng Gr
wth and F

inanc ial Pe r for manc e

4

Sc a le L

a b ha s stro ng kno who w a b o ut US a nd L a tin Ame ric a while o ur c urre nt MCNs ha ve de e pe r kno wle dg e a b o ut Asia n ma rke ts. We c a n c o mb ine to promote a ll c ha nne ls g loba lly

Be tte r tre nd de te c tio n/ pre dic tio n fro m a na lyzing b ig g e r da ta b a se

a llo ws us to b e tte r suppo rt o ur c re a to rs in ta iloring c onte nt to use r

pre fe re nc e. Hug e da ta c a n a lso b e use d to de ve lop othe r busine sse s

like me dia c o mme rc e

Ha ving a sub sidia ry in US o pe ns more pa rtne rship opportunity with lo c a l

b ra nds, suppo rts c o nte nts a c q uisitio n a nd dive rsify c o nte nt pla tfo rm

Huge Pote ntial Syne r gy with Ye ah1 Ne twor k

I

n US, dig ita l ma rke ting a mo unt wa s up to $90.39 b n in 2017, e q uiva le nt to 51% o f to ta l me dia a ds spe nding . Of whic h, dig ita l vide o to o k sha re o f 25% a nd is e stima te d to g row a t 30% in 2018

Sc a le L

a b will e na b le us to c a pture L

a tin Ame ric a - the fo urth la rg e st a d

ma rke t g lo b a lly. Simila r to Vie tna m, the dig ita l’ s sha re o f to ta l me dia spe nd (26.3%) is c urre ntly b e lo w a nd will mo ve to wa rds the wo rldwide a ve ra g e (43.5%)

Sc a le L

a b ’ s vie ws mo stly c o me fro m hig h CPM ma rke ts (sha re o f vie ws fro m Vie tna m is o nly 0.8%). T his will le a d to o ur o ve ra ll CPM improve me nt

Abundant Room for Gr

wth of Digital Me dia Industr

y

3 2

SLIDE 4

SCAL E L AB’S BUSINE SS OVE RVIE W

SLIDE 5

Jake Paul

Sc ale L ab Cr e ator 17.6M Subsc r ibe r s

Sc a le L a b is o ne o f the la rg e st inde pe nde nt MCN’ s in the U.S. & the Wo rld. T he Co mpa ny ha s re ve nue fro m

ve r 240 c o untrie s wo rldwide

with 3.0 b illio n vie ws pe r mo nth

SLIDE 6

I n 2018, o nline vide o c o ntinue s to se e additio nal pe ne tratio n and inno vatio n, with Yo uT ub e still at the fo re fro nt

T he ave r age adult in the U.S. spe nds ne ar ly 6 ho ur s pe r day with digital me dia

Digital Me dia Consumption by U.S. Adults

Mo b ile , 55% De skto p/ L a pto p, 37% Othe rs, 8%

Distr ibution of U.S. Adve r tising Spe nd by Me dia U.S. Soc ia l Ne twor k Ad Spe nd ($B) % of Buye r s E xpe c ting to Inc r e a se Spe nd

83% 81% 79% 77% 72% 72% Vide o So c ia l Displa y Se a rc h OT T / Co nne c te d T V Na tive / Co nte nt Ma rke ting

28% 33% 36% 37% 38% 43% 39% 38% 37% 36% 35% 34% 0% 20% 40% 60% 80% 100% 2014 2015 2016 2017 2018 2019 Dig ita l T V Print Ra dio Out-o f-Ho me 10.9 15.4 19.3 23.5 18% 21% 23% 25%

0% 20% 40% 60% 80% 100% 5 10 15 20 25

2015 2016 2017 2018 So c ia l Ad Spe nd % o f Dig ita l Ad Spe nd

70%

Co nsume rs wa tc h vide o s o n the ir c o mpute rs e ve ry da y

01

67%

Co nsume rs wa tc h vide o s o n the ir sma rtpho ne s e ve ry da y

02

79%

Pub lishe rs e xpe c t to inc re a se the ir mo b ile vide o spe nd b y a t le a st 25%

03

70%

Adve rtise rs e xpe c t to inc re a se the ir mo b ile vide o spe nd b y a t le a st 25%

04

SLIDE 7

A Yo uT ub e Multi-c ha nne l Ne two rk (MCN) wo rks with multiple c ha nne ls a nd c o nte nt c re a to rs, c o nsulting o r a ssisting to wa rds suc c e ss

n stre a ming Yo uT

ub e vide o s. An MCN typic a lly re c e ive s 55% o f a d re ve nue fro m Yo uT ub e a nd pa ys 70-95% o f this re ve nue o ut to its c re a to r pa rtne rs.

Spo nso rship 100% c a mpa ig n- re la te d c o st Pro duc t pla c e me nt, spo nso re d re vie ws, B2B pa rtne rship in c o nte nt pro duc tio n Yo uT ub e c o nte nt Online vide o Vie we rship 70-95% o f ne t a d re ve nue re c e ive d fro m Yo uT ub e 55% a d re ve nue Vie we rship (CPM)

Cr e a tor Pa r tne r s / Cha nne ls

Audie nc e re a c h o n a g lo b a l sc a le Ad re ve nue b a se d o n CPM

Br a nds YouT ube MCNs Note : F lo w o f Ad Inve nto ry F lo w o f Re ve nue

SLIDE 8

Sc a le L a b te a m he lps c ha nne l pa rtne rs o ptimize c o nte nt a nd e xpa nd a udie nc e so c re a to rs c a n ma ximize the ir impa c t o n Yo uT ub e a nd b e yo nd

Cha nne l Optimiza tion

Ma na g e a nd impro ve the c ha nne l to e nha nc e c usto me r e xpe rie nc e s, inc re a se inte ra c tio ns, re te ntio n ra te a nd re ve nue

Conte nt L ibra ry Big Da ta Ana lytic s

Ac c e ss to b ig d a ta a na lytic s to o ls a nd re po rts Ac c e ss to hug e c o nte nt lib ra ry fro m YE G’ s pa rtne rship with g lo b a l c o nte nt c o mpa nie s like Nic ke lo d e o n, T VB, e tc . to mo ne tize c o nte nt

Ac c e le ra te d Growth

Give c re a to r pa rtne rs the to o ls, the e xpe rts, a nd e ve n the fina nc ing to g ro wth c ha nne l’ s a ud ie nc e a nd e a rning s

Ha nds- On Support Conte nt Prote c tion

Offe rs Co nte nt-ID re la te d se rvic e s so c re a to r’ s vid e o s a re n't sto le n. Sc a le L a b ha s a te a m tha t wo rks with pa rtne rs o n mo ne tiza tio n issue s a nd pro te c ting c ha nne ls Wo rk c lo se ly with c re a to rs who a re se rio us a b o ut g ro wth. No o the r ne two rk is mo re ha nd s-o n a nd re spo nsive tha n Sc a le L a b

Apps

Ga in fre e a c c e ss to music lib ra rie s like E pid e mic So und , b ulk o ptimize yo ur c ha nne l with Vid IQ, c re a te

utro s with Outro Ma ke r

Hig h- Profile Bra nds

Sc a le L a b ha s stro ng c o nne c tio ns

the rs d o n't. Ga in Glo b a l e xpo sure

a nd c o lla b o ra tio n, e xc lusive a c c e ss to to p-le ve l b ra nd s & spo nso rs who pa y hig he r CPM ra te s

SLIDE 9

Par tne r ing with T

p Global Br

ands

3.38

minute s

Ave r age Vie w Dur ation Diamond Pla y Butto ns

3

(>10m Sub sc rib e rs)

Gold Pla y Butto ns

85

(>1m Sub sc rib e rs)

Silve rPla y Butto ns

540

(>100k Sub sc rib e rs)

YouT ube Awar ds Vie ws by T

p Countr

ie s

18.5% 33.6% 4.4%

T he Unite d Sta te s L a tin Ame ric a Russia

3.7%

Unite d K ing do m

5.1%

I ndia

SLIDE 10

44% 27% 15% 14%

E nte r tainme nt T e c h & Gaming Othe r Kids

41 Cha nne ls
520M

Mo nthly Vie ws

25M Sub sc rib e rs
32M T
ta l Wa tc h Ho urs
16,789 T
ta l Vid e o s
804 Cha nne ls
1.5B Mo nthly Vie ws
242M Sub sc rib e rs
95M T
ta l Wa tc h Ho urs
361,365 T
ta l Vid e o s
123 Cha nne ls
450M Mo nthly Vie ws
54M Sub sc rib e rs
30M T
ta l Wa tc h Ho urs
138,384 T
ta l Vid e o s
782 Cha nne ls
930M Mo nthly Vie ws
122M Sub sc rib e rs
58M T
ta l Wa tc h Ho urs
416,673 T
ta l Vid e o s

Sc a le L a b ha s a to ta l o f 1,750 c ha nne ls with 408 millio n sub sc rib e rs. K e y g ro wth fo c us is e nte rta inme nt, te c h & g a ming a nd kids c ha nne ls

% o f to tal ne two rk vie ws, data o n January 05, 2019

SLIDE 11

Ja ke Pa ul

Jo ine d in De c 2016 5.0b vie ws, 17.6m sub

Ge ne vie ve 's Pla yhouse

Jo ine d in Aug 2016 3.0b vie ws, 8.0m sub

Spa rkle Spic e

Jo ine d in Se p 2016 1.4b vie ws, 2.6m sub

Ma nuc ra ft

Jo ine d in No v 2016 1.4b vie ws, 4.5m sub

E rika Coste ll

Jo ine d in Jun 2017 535m vie ws, 4.6m sub

MrBe a st

Jo ine d in Jun 2016 1.0b vie ws, 13.0m sub

DM Pra nks

Jo ine d in Aug 2018 840m vie ws, 5.0m sub

T VF ilthyF ra nk

Jo ine d in Ja n 2016 814m vie ws, 6.1m sub

Ka tie Ang e l

Jo ine d in Ma r 2018 715m vie ws, 8.5m sub

Ma ria le Ma rre ro

Jo ine d in No v 2017 1.1b vie ws, 16.6m sub

SLIDE 12

Sc ale L ab’s manage me nt te am has be e n instr ume ntal in its tr e me ndo us histo r ic al gr

wth and suc c e ss and will

c o ntinue po st-ac quisitio n

Ge or ge Paskale v

COO

Past E xpe r ie nc e Maximilie n De smar ais

Co -F

unde r

Konstantin Shkut

CT O

F

und e d Sc a le L

a b in 2013 Pre vio usly CE O o f Princ ipa l Me d ia , whe re he c re a te d o ve r 200 ho urs o f T V & o nline pro g ra mming fo r le a d ing ne two rks wo rld wid e Me mb e r, YPO (Ho llywo o d c ha pte r)

E duc ation

F

und e d Sc a le L

a b in 2013 Bring s d ig ita l a d ve rtising , d e ve lo pme nt a nd so c ia l me d ia e xpe rie nc e to Sc a le L a b At Gue ss Inc ., he spe a rhe a d e d g lo b a l so c ia l me d ia stra te g y a nd e xpa nd e d fa shio n po we rho use ’ s so c ia l fo o tprint to 78 c o untrie s.

Past E xpe r ie nc e E duc ation Past E xpe r ie nc e Past E xpe r ie nc e Adr ian Kor t

Dire c to r o f F inanc e

Past E xpe r ie nc e David E . Br e nne r

F

unde r & CE

O

T yle r We lls

E xe c utive VP

Past E xpe r ie nc e

SLIDE 13

YE AH1 GROUP AF T E R ACQUISIT ION YE AH1 GROUP AF T E R ACQUISIT ION

SLIDE 14

Mar iale Mar r e r

Sc ale L

ab Cr e ator 16.6M Subsc r ibe r s

Po st Ye a h1’ s a c q uisitio n, Sc a le L a b is po ise d fo r ma ssive g ro wth in the ne a r future

SLIDE 15

T r aditional Me dia Pillar

Ope ra ting 4 to p-ra nke d T

V Cha nne ls

Na tio na l Ca b le Co ve ra g e
Ye a h1 T

V, Ye a h1 F a mily, iMo vie T V & UM Cha nne l

Yo uth & Ho use wife fo c use d c o nte nt
F

a st Gro wing Mo vie I nve stme nt a nd Pro duc tio n Ho use

F

ull film pro c e ss fro m inve stme nt, pro duc tio n a nd distrib utio n

Do mina nt T

V Ag e nc y Busine ss

Curre ntly re pre se nting o ve r 16

c ha nne ls a c ro ss the c o untry

Digital Me dia Pillar Me dia Comme r c e Pillar

L

e a ding Yo uT ub e MCN

3,000+ Cha nne ls, 610m Sub sc rib e rs &
ve r 6.9b n mo nthly vie ws
3 Dimo nd Butto ns, 122 Go ld Butto ns

a nd 919 Silve r Butto ns

Stro ng F
o tprint in US a nd L

a tin Ame ric a unde r Sc a le L a b

Stro ng I

nflue nc e r ma na g e me nt b usine ss

Dig ita l Pub lishing Busine ss Unit
Ope ra ting a s 1 of only 35 Go o g le

Ce rtifie d Pub lishing Pa rtne r unde r the Ne tlink Sub sidia ry

Ope ra ting Glo b a l Ne two rk WAP a d-

ne two rk unde r We b fa c e Sub sidia ry

900+ Curre nt Pub lishing Pa rtne rs
3.2b n+ Mo nthly I

mpre ssio ns

A jo int ve nture with AK

S Ja pa n to la unc h Vie tna ms la rg e st I do l Girl Gro up

T

he De b ut wa s ho ld o n De c e mb e r 22, 2018 with hug e suc c e ss b y a ttra c ting 17k a udie nc e

I

nc ub a to r like pro g ra m whe re b y we te st, R&D a nd inve st in ne w sta rt-ups a nd ide a s to suppo rt the Y1G

T

he g e ne sis b e hind Ye a h1 Ve nture s is tha t the dig ita l wo rld o f c o nte nt, distrib utio n a nd c o mme rc e is a lwa ys c ha ng ing a nd we ne e d to e nsure tha t we a re a he a d o f the g a me

SLIDE 16

Bra nd 1 Bra nd 3

NO OF CHANNE L S MONT HL Y VIE WS SUBSCRIBE RS GL OBAL MCN RANKING YOUT UBE AWARDS PRE SE NCE 1,254+ 1,750+

3,000+

3.9bn + 3.0bn +

6.9bn+

202mn + 408mn +

610mn+

#6 T

p 10

T

p 3

3 Diamond Buttons

240 c ountr ie s+ 240 c ountr ie s+

240 c ountr ie s+

No te : Syne rg y e ffe c t has no t b e e n c o unte d

85 Gold Buttons 540 Silve r Buttons 37 Gold Buttons 379 Silve r Buttons 3 Diamond Buttons 122 Gold Buttons 919 Silve r Buttons

SLIDE 17

Wo rk with I P o wne rs to e xpo rt the ir lo c a l c o nte nt g lo b a lly Use vie we r tre nding da ta to pro duc e sho rte r fo rm so c ia l c o nte nt fo r g lo b a l c o nsumptio n Build Glo b a l AVOD Distrib utio n pla tfo rm fo r o ur

wn a nd lic e nse d c o nte nt

Ge ne ra te a nd c o lle c t use r wa tc hing da ta to furthe r o ptimize e xisting c ha nne l pe rfo rma nc e

1 2 3 4 OUR KE Y OBJE CT IVE S

SLIDE 18

Ac q uire c ha nne ls fo r MCN with b e st in c la ss se rvic e a nd te c hno lo g y

Cha nne l Ac q uisitio n Pre mium Co nte nt F

c us

Mo ne tiza tio n Optimiza tio n

Optimize e xisting MCN c ha nne l pe rfo rma nc e a nd vie we rship Cre a te ne w Ye a h1 g lo b a l Owne d c ha nne ls Inve st in ne w a nd o rig ina l c o nte nt fo r g lo b a l distrib utio n

Co nte nt I nve stme nt

L ic e nse pre mium c o nte nt fo r se le c tive re g io ns Wo rk with Bra nds fo r full inte g ra te d c a mpa ig ns (dire c t sa le s)

Glo b a l Do mina nc e

SLIDE 19

I f yo u ne e d a ny furthe r info rma tio n, ple a se c o nta c t o ur Inve stor

Re lation T e am a t: YE AH1 GROUP CORPORAT ION He ad Quar te r Offic e

1st F lo o r, M Pla za T

we r, 39 L

e Dua n St, Be n Ng he Wa rd , Distric t 1, Ho Chi Minh City, Vie tna m

Main Ope r ating Offic e

201A Na m K y K ho i Ng hia St., Wa rd 7, Distric t 3, Ho Chi Minh City, Vie tna m ir@ ye a h1.vn (+84) 28 73 006 071

SLIDE 20

T his Ac q uisitio n Anno unc e me nt (“Anno unc e me nt”) is pre pa re d b y Ye a h1 Gro up Co rpo ra tio n (“YE G", o r the "Co mpa ny") so le ly fo r info rma tio na l purpo se s. T he info rma tio n c o nta ine d in this do c ume nt is o f a g e ne ra l na ture o nly, it is no t me a nt to b e c o mpre he nsive a nd do e s no t c o nstitute fina nc ia l, le g a l a nd ta x due dilig e nc e re po rts. No c o py o r use o f this pre se nta tio n sho uld o c c ur witho ut the pe rmissio n o f the Co mpa ny. YE G re ta ins a ll inte lle c tua l pro pe rty inte re sts a sso c ia te d with the Anno unc e me nt. T he Co mpa ny e xpre ssly disc la ims lia b ility fo ra ny wro ng purpo se use o f suc h c o nte nt. T his info rma tio n inc lude s c e rta in sta te me nts a nd e stima te s pro vide d b y the Co mpa ny with the pro je c te d future pe rfo rma nc e o f the Co mpa ny. Suc h sta te me nts, e stima te s a nd pro je c tio ns re fle c t va rio us a ssumptio ns b y Ma na g e me nt c o nc e rning po ssible a ntic ipa te d re sults, whic h a ssumptio n ma y o r ma y no t b e c o rre c t. No re pre se nta tio ns a re ma de a s to the a c c ura c y o f suc h sta te me nts, e stima te s o r pro je c tio ns. T his Anno unc e me nt ma y c o nta in sta te me nts tha t a re no t histo ric a l fa c ts, re fe rre d a s “fo rwa rd lo o king sta te me nts.” T he Co mpa ny’ s a c tua l future re sults ma y diffe rma te ria lly fro m tho se sug g e ste d b y suc h sta te me nts, de pe nding o n va rio us fa c to rs. F urthe r, the Co mpa ny is no t unde r a ny o b lig a tio n to re vise o r pub lic ly re le a se a ny re visio ns to the se “fo rwa rd-lo o king sta te me nts”, in lig ht o f ne w info rma tio n o r future e ve nts.