yvr deck june 2020 · media group ltd. (the “company”) in any jurisdiction in which an offer,...
TRANSCRIPT
N a s d a q : Y V R
S h a r e s O u t s t a n d i n g : 9 , 9 9 3 , 5 1 0
LIQU
IDM
EDIA
GROU
P.CO
J U N E 2 0 2 0
SAFE HARBOUR
The information contained in this document is provided by Liquid Media Group Ltd. (“LMG”) for information purposes only and does not constitute an offer to issue or arrange to issue, or the solicitation of an offer to issue, securities of LMG or other financial products. The information contained herein is not to be construed as investment advice. Each prospective investor should consult with their own independent advisor or investment, financial, legal and tax professionals before making an investment decision. No securities commission or similar authority in Canada or any other jurisdiction has in any way passed upon the adequacy or accuracy of the information contained herein. You should not rely upon this document in evaluating the merits of investing in our securities or for understanding our business. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this document. To the maximum extent permitted by law, none of LMG, its directors, officers, employees or agents, nor any other person shall be liable, including without limitation, for any liability arising out of fault or negligence for any loss arising from the use of or reliance on the information contained in this document. Except for statements of historical fact, this document contains certain “forward-looking information” within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as “may”, “plans”, “seek”, “expects”, “projects”, “intends”, “believes”, “anticipates”, “estimates” and other similar words or statements that certain events or conditions may or will occur. Forward-looking statements in this presentation include, but are not limited to: general market conditions, LMG’s future expansion opportunities and growth strategies, projections as to trends in the media and entertainment market generally, the competitive environment, LMG’s innovation and development of intellectual property, the use of working capital and financial information. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to known and unknown risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Such risks include but are not limited to those detailed from time to time in filings made by LMG with securities regulatory authorities, which may cause actual outcomes to differ materially from those discussed in forward looking information. Except as required by law, LMG undertakes no obligation to provide additional information or to update any forward-looking information if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
DISCLAIMER + FORWARD-LOOKING INFORMATION
SAFE HARBOUR CAUTIONARY NOTE TO UNITED STATES INVESTORSThis presentation does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities of Liquid Media Group Ltd. (the “Company”) in any jurisdiction in which an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities of the Company may not be offered or sold in the United States, or to, or for the account or benefit of, “U.S. Persons” as such term is defined in Regulation S under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), unless registered under the U.S. Securities Act or an exemption from registration thereunder is available. IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE COMPANY AND THE TERMS OF ANY OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR BY ANY STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES OR ANY CANADIAN PROVINCIAL SECURITIES REGULATOR PASSED ON THE ACCURACY OR ADEQUACY OF THIS PRESENTATION. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. The enforcement of civil liabilities under United States federal securities laws may be affected by the fact that (1) the Company is incorporated or organized under and is governed by the laws of Canada, (2) certain of its directors and executive officers are residents of Canada, and (3) a substantial portion of the assets of said persons are located outside of the United States.
O u r e x i s t i n g d i s t r i b u t i o n c h a n n e l s , n e t w o r k o f
s t u d i o s a n d a c c e s s t o u n i q u e c o - f i n a n c i n g
o p p o r t u n i t i e s e n a b l e L i q u i d t o s h e p h e r d s t o r i e s
f r o m i d e a t i o n t h r o u g h d i s t r i b u t i o n .
C O N T E N TA S T U D I O F O R A L L P L A T F O R M S
3 0 0 + s c r i p t e d s e r i e s p r e m i e r e d
i n t h e f i r s t 6 m o n t h s o f 2 0 1 9
T h e H o l l y w o o d R e p o r t e r
P H Y S I C A L P R O D U C T I O N
$ 4 B s p e n t i n B C F i l m + T V
I n d u s t r y i n 2 0 1 8
V A N C O U V E R E C O N O M I C
C O M M I S S I O N
C O N N E C T I V I T YC l o u d G a m i n g M a r k e t V a l u e
e x p e c t e d t o g r o w f r o m $ 4 5 M
U S D i n 2 0 1 7 t o $ 4 5 0 M U S D i n
2 0 2 3 ( W o r l d w i d e )
S T A T I S T A / W G R / A B C / C R O S S
R O A D T O D A Y
WHO WE ARE
S t o r y i s a t t h e h e a r t o f e v e r y t h i n g w e d o .
E m p o w e r i n g s t o r y t e l l e r s w o r l d w i d e t o d e v e l o p ,
p r o d u c e , a n d d i s t r i b u t e a c r o s s c h a n n e l s a n d
p l a t f o r m s .
Va n c o u v e r ’s “ s u p e r c l u s t e r ” o f i n f r a s t r u c t u r e a n d
t a l e n t b a s e h a v e p o s i t i o n e d i t a s a g l o b a l l e a d e r i n
t h e c r e a t i o n o f b e s t - i n - c l a s s c o n t e n t a c r o s s a l l
m e d i a c h a n n e l s . F r a g m e n t a t i o n i n t h e m a r k e t
l e a v e s s m a l l s t u d i o s a t a d i s a d v a n t a g e , a n d L M G -
t h r o u g h t a r g e t e d a c q u i s i t i o n - c a n u n l o c k t h e i r
t r u e p o t e n t i a l .
U T I L I Z I N G A N A G G R E S S I V E
M + A ST R AT E GY TO R O L L- U P
H O L LY W O O D N O R T H
M O R T A L C O M B A T X S t o r y M o d e a n d P r o l o g u e C i n e m a t i c s c o m p l e t e d b y W a t e r p r o o f S t u d i o s I n c .
E S C A P E V R -C O M P O S I T I N G
S T A R W A R S : B A T T L E F R O N T I I - C I N E M A T I C S S I D M E I E R ’ S C I V I L I Z A T I O N V I - C I N E M A T I C S
T I T A N F A L L 2 - T R A I L E R M O R T A L K O M B A T X - C I N E M A T I C S I N J U S T I C E 2 - C I N E M A T I C S
PRODUCING CONTENT FOR THE STREAMING AGE
W H O L i q u i d M e d i a G r o u p L t d ( N a s d a q : Y V R ) i s a n e n t e r t a i n m e n t c o m p a n y s p a n n i n g c r e a t i v e i n d u s t r i e s . O r i g i n a t i n g i n Va n c o u v e r ’s M e d i a a n d E n t e r t a i n m e n t S u p e r c l u s t e r, L i q u i d ' s m i s s i o n i s t o e m p o w e r s t o r y t e l l e r s w o r l d w i d e t o d e v e l o p , p r o d u c e , a n d d i s t r i b u t e a c r o s s c h a n n e l s a n d p l a t f o r m s . W H AT E m p o w e r i n g t h e n e x t g e n e r a t i o n o f c r o s s - p l a t f o r m s t o r y t e l l i n g . W H E N T h e t i m e i s n o w. W H E R E T h e c o n v e r g e n c e o f m e d i a , e n t e r t a i n m e n t a n d t e c h n o l o g y t a k i n g p l a c e e m p o w e r s s t o r i e s t o s t a r t l o c a l l y a n d s p r e a d g l o b a l l y a t n e a r l i g h t - s p e e d . Va n c o u v e r ’s s u p e r c l u s t e r o f t a l e n t a n d c a p a b i l i t i e s h a s s e t t h e s t a g e f o r i n n o v a t i v e c o m p a n i e s t o h a r n e s s t h e c i t y ’s c o l l e c t i v e p r o d u c t i o n p o w e r. W H Y T h e e r a o f d i g i t a l s t r e a m i n g c o n t e n t c o n t i n u e s t o c h a n g e t h e m e d i a a n d e n t e r t a i n m e n t l a n d s c a p e , o p e n i n g u p n e w h o r i z o n s i n m u c h t h e s a m e w a y t h a t t h e m o v i n g i m a g e e x p l o d e d o u r c o l l e c t i v e s e n s e o f t h e p o s s i b l e . I t ’s a n e w d a y i n e n t e r t a i n m e n t , a n d w h o m e v e r w i n s t h e “s t r e a m i n g w a r s ” d i r e c t s t h e f u t u r e . L i k e t h e e a r l y s t u d i o p i o n e e r s b e f o r e u s , w e s e e a n o p p o r t u n i t y t o c r e a t e a v e r t i c a l l y i n t e g r a t e d s t u d i o f o r t h e n e w e r a , e n f r a n c h i s i n g c r e a t i v e s f r o m t h e g r o u n d u p .
MILESTONES
2 0 1 6
• Acquisitions:
• Waterproof Studios (49%) 01/16
2 0 1 7
• Waterproof investment returns studio to profitability
2 0 1 8
• Releases: • Iridion: 3D and Iridion II re-released on Steam for PC (12/19)
• In Development: • Coba: Tale of the Moon development complete (2020 release) • Ancient Aliens: The Game (Chapter 3) in production (2020 release)
• Strategic Partnerships: • Entered into partnerships with A+E TV Networks (4/19), YDX Innovation
Corp. (5/19), and Rabbit Hole Studios (12/19) • Waterproof Studios doubles revenue reach to CDN$5M
2 0 1 9
• Nasdaq Listed: YVR 10/18 • Acquisitions:
• Majesco Entertainment (51%) 01/18
• IP: incl. 130+ Classic and Retro Gaming Titles
• Waterproof studios completes key contracts (Entertainment Arts, Warner Brothers)
AT A GLANCE I N V E S T M E N T H I G H L I G H T S
• Vertically integrated global studio with assets in gaming, visual effects (VFX) and production services • One of only two Canadian entertainment studios listed on Nasdaq • IP portfolio of 1 30+ video game titles including existing sales and publishing rights • New games in development include titles for Nintendo Switch, PC and mobile • As of December 2019, Liquid has 17 Titles available for purchase on Steam • Signed agreement with A+E Networks to become official operator of Ancient Aliens: The Game • Plans to leverage Owned IP into full media franchises
P A R E N T C O M P A N Y
C O N T E N T P H Y S I C A L P R O D U C T I O N
W A T E R P R O O F S T U D I O S
4 9 % O W N E R S H I P
M A J E S C O E N T E R T A I N M E N T
5 1 % O W N E R S H I PN E W Y O R K V A N C O U V E R
BOARD OF DIRECTORS
CHAIRMAN
JOSHUA JACKSON
CFO / DIRECTOR
DANIEL CRUZ
BOARD MEMBER
STEPHEN JACKSON
BOARD MEMBER
NANCY BASI
PRESIDENT
CHARLIE BREZER
Joshua is an actor, producer and
director with over 20 years of
experience in the entertainment
industry. He has starred in over 30
films and headlined in over 200
hours in acclaimed TV series such
as Fringe, Dawson’s Creek and The
Affair, as well as performed both
on Broadway and the West End.
Daniel became one of the
youngest Senior Investment
Advisors at Canaccord Financial
Inc. in 2006. Now he combines his
expertise in securities and capital
markets with his passion for the
entertainment industry.
Stephen acts as corporate counsel
for Northland Properties, and
advises Liquid on a wide range of
corporate, real estate, labour and
commercial matters. He brings
experience as a Director of a
number or public companies in
Canada and the USA.
Nancy brings 25+ years of
experience across film, TV,
gaming, VFX, animation and VR
to Liquid, including a 360°
perspective on all aspects of
production and studio operations.
An entrepreneur with over 15
ye a rs o f m a n a ge m e n t a n d
leadership experience, Charlie’s
a g g re s s i v e , h a n d s - o n , a n d
forward thinking approach in
integral to Liquid’s continued
success.
THE MARKETI N J U S T I C E 2 S t o r y M o d e C i n e m a t i c s c o m p l e t e d b y W a t e r p r o o f S t u d i o s I n c .
OVERVIEW // GAMING
L I Q U I D H I G H L I G H T S
• Liquid has licenses to sell across multiple generations of
consoles for each of the three industry leading console
makers: Sony, Microsoft and Nintendo
• Access to developer kits for each of the major console
softwares, reducing overhead across portfolio
C O N S O L E
P C
• Liquid holds a license to sell through Steam, with 17 titles
currently available for purchase
M O B I L E
G a m i n g i n c r e a s i n g l y l i e s a t t h e h e a r t o f t h e e n t e r t a i n m e n t i n d u s t r y, w i t h m o r e
t h a n 2 . 5 b i l l i o n g a m e r s w o r l d w i d e e n g a g i n g w i t h s t o r i e s a c r o s s p l a t f o r m s .
• 2 0 1 9 S n a p s h o t :
• C o n s u m e r S p e n d u p 9 .6 % Yo Y t o $ 1 5 2 B
• M o b i l e d e v i c e s a r e d r i v i n g d i g i t a l c o n s u m p t i o n a c r o s s a l l p l a t f o r m s , w i t h
r e v e n u e s o f $ 6 8 . 5 B a c c o u n t i n g f o r 4 5 % o f t h e g l o b a l m a r k e t
• C o n s o l e i s t h e f a s t e s t g r o w i n g s e g m e n t t h i s y e a r, g r o w i n g a t + 1 3 .4% Yo Y t o
$ 4 7. 9 B
• P C : $ 3 5 .7 B
* S o u r c e : N e w z o o I G l o b a l G a m e s M a r k e t R e p o r t 2 0 1 9
• Liquid currently operates two mobile games in partnership
with A+E TV, and has identified a key opportunity in
translating existing IP into mobile game titles
2 0 1 8 - 2 0 2 2 G L O B A L G A M E S M A R K E T F O R E C A S T P E R S E G M E N T T O W A R D 2 0 2 2
2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2
• G l o b a l g a m e s m a r k e t
e x p e c t e d t o h i t
U S D $ 1 9 6 B b y 2 0 2 2
• M o b i l e : $ 9 5 .4 B
• C o n s o l e : $ 6 0 . 8 B
• P C : $ 3 9 . 2 B
• Existing Asset, Waterproof studios, has been working at 100%
capacity
• Deep talent pool remains fragmented amongst smaller studios,
creating attractive roll-up opportunities
P R O D U C T I O N S E R V I C E S
C O N T E N T
• The demand for content continues to increase, spreading out
across platforms and changing the entertainment landscape. Liquid
has IP in development, ready for release, and currently available for
purchase across gaming platforms
• Vancouver provides unique opportunities for co-financing “shovel-
ready” (late stage) productions, which can be driven through LMG-
network service providers where appropriate
L I Q U I D H I G H L I G H T S
OVERVIEW // FILM + TV
0
125
250
375
500
2002 2011 2012 2013 2014 2015 2016 2017 2018
146153146150148131119116
135
Basic Cable Pay Cable Broadcast Online Services
29.7%53.8%50%61.4%52.2%70.5%66.7%63.6%F a i l u r e R a t e ( p r o g r a m c a n c e l l a t i o n ) i s d r o p p i n g d e s p i t e i n c r e a s e i n p r o d u c t i o n
E S T I M A T E D N U M B E R O F O R I G I N A L S C R I P T E D T V S E R I E S A I R E D I N T H E U S A B Y P L A T F O R M
B.C. Film + TV Industry grew 135% from est. CDN$1.6B in 2012 to CDN$3.8B in 2017*
0
500
1000
1500
2000
2012 2013 2014 2015 2016 2017
Gross Payroll VFX & Animation Gross Payroll Film & TV
0
1000
2000
3000
4000
2012 2013 2014 2015 2016 2017 2018
Total Spend VFX & Animation Total Spend Film & TV
H I S T O R I C A L P A Y R O L L G R O W T H O F B C ’ S F I L M + T V , V F X + A N I M A T I O N I N D U S T R Y 2 0 1 2 - 2 0 1 7
H I S T O R I C A L T O T A L S P E N D O F B C ’ S F I L M + T V , V F X + A N I M A T I O N I N D U S T R Y 2 0 1 2 - 2 0 1 8
* S o u r c e : Va n c o u v e r E c o n o m i c C o m m i s s i o n
THE OPPORTUNITYC O B A : T A L E O F T H E M O O N U p c o m i n g R e l e a s e f r o m L M G / M a j e s c o E n e t e r t a i n m e n t
THEPERFECT
STORM
• Stackable BC/Federal tax incentives
• 452 tax credit certs. approved across 452 productions approved during FY 2017-2018*
• Exchange rates
• Lobbying for “Flow-through” credits
TAX / MONEY
INTEGRATION
MATURITY
• Industry poised for rapid consolidation of assets
CONSOLIDATION• Proven model in Toronto, Paris and London
* S O U R C E : C R E AT I V E B C R E L E AS E , 0 7/ 1 8
• Largest cluster of VFX/animation/gaming studios
• 3rd largest production center in the world
• Existing ski l led labour and educational infrastructure
• 25 years of Govt. support for Film + TV Industry
WHY US • Liquid has licenses to sell across multiple generations of consoles for each of the three industry leading
console makers: Sony, Microsoft and Nintendo
• As of Sep. 2017, the top 10 selling consoles of all time are previous generation consoles including Playstation 2,
Nintendo DS, Gameboy, Playstation and Nintendo Wii (VG Chartz)
• Over 1 billion previous-generation consoles sold (VGChartz)
• Liquid owns 130+ games made for previous generation consoles with opportunity to build sequels, emulate
and drive retro title sales.
E X E C U T I N G A V I S I O N O F T H E F U T U R E• Led by Jesse Sutton, Majesco represents 25+ Years
Publishing Experience and deep Industry Ties.
• Chairman Joshua Jackson brings his vision of a Studio for
the Streaming Age along with 20+years of experience in
Media and Entertainment, as an Actor, Director, and
Producer.
• CFO Daniel Cruz brings his 10+ years in the capital markets,
spent financing small-cap companies, as well as M+A
experience with 20+ RTOs and IPOs, across sectors. Cruz
recently joined the board of the Whistler Film Festival.
• President Charlie Brezer brings 10+ years operational
expertise, with multiple successful exits from startups in his
career as an Entrepreneur.
• Board Member Nancy Basi, current Executive Director of
the of the Media + Entertainment Centre for the Vancouver
Economic Commission, brings 20+ Years across film,
television, commercials, VFX, animation, games and VR.
• Board Member Stephen Jackson, currently serving as
Corporate Counsel for Northland Properties, brings 20+
years as a securities litigator in North America.
P R O V E N T R A C K R E C O R D
Y V R i s t h e o n l y V a n c o u v e r - d o m i c i l e d P u r e P l a y t o A c c e s s t h e S u p e r C l u s t e r o n N a s d a q
GROWTH STRATEGYT I T A N F A L L A S S A U LT T r a i l e r c o m p l e t e d b y W a t e r p r o o f S t u d i o s I n c .
2 0 2 0 : • P h a s e I :
• S t u d i o A : 3 D A n i m a t i o n • S t u d i o B : 2 D A n i m a t i o n
A l l t a r g e t s a r e r e v e n u e p o s i t i v e w i t h c o m p l e m e n t a r y s e r v i c e s .
WAT E R P R O O F ST U D I O S • R e v e n u e d o u b l e d i n 2 0 1 8 t o r e a c h
C D N $ 5 M i n 2 0 1 9 , n e t m a r g i n s b e t w e e n 1 2 % a n d 2 4%
• To p l i n e r e v e n u e p r o j e c t e d t o g r o w b y m i n i m u m 5 0 % b y 2 0 2 1
• U n d e r L i q u i d M a n a g e m e n t , r e t u r n e d t o p r o f i t a b i l i t y w i t h i n 1 Ye a r
M A J E S C O E N T E R TA I N M E N T C O M PA N Y • 2 5 + y e a r t r a c k r e c o r d w i t h $ 1 B i n
h i s t o r i c a l s a l e s • L i b r a r y o f e s t a b l i s h e d t i t l e s • E x i s t i n g d i s t r i b u t i o n a g r e e m e n t s w i t h t o p
c o n s o l e s • R e t u r n t o p r o f i t a b i l i t y p r o j e c t e d f o r 2 0 2 0
A B O Y A N D H I S B L O B M a j e s c o E n t e r t a i n m e n t
# 1V F X & A n i m a t i o n c l u s t e r i n t h e w o r l d ( Va r i e t y )
1 0 0 0 0 + V F X & A n i m a t i o n j o b s i n Va n c o u v e r ( V E C r e s e a r c h / N o r d i c i t y )
6 0 + W o r l d c l a s s V F X & A n i m a t i o n s t u d i o s i n Va n c o u v e r ( V E C r e s e a r c h )
VFX2D/3D AnimationGaming
A C Q U I S I T I O N S T O D A T E
T A R G E T A C Q U I S I T I O N S
S E R V I C E M A R K E T H I G H LY F R AG M E N T E D :
• 4 0 V F X s t u d i o s • 2 8 2 D / 3 D A n i m a t i o n s t u d i o s • 1 7 0 + G a m i n g s t u d i o s
MERGERS + ACQUISITIONS (M+A)
LMG sees a unique opportunity to effectuate a targeted roll-up of complimentary production service studios. USD$3B Annual production spend across a highly fragmented marketplace offers the ability to quickly onboard revenue.
• Targeted studios are currently revenue positive
• Dedicated management teams retained
• LMG investment + operational efficiencies maximize each studio’s potential
• Many studios cannibalize each other’s profits
• Small studios can’t scale to maximize potential
• Dependent upon freelance workflow
• Vulnerable to gaps between work completion and payment
• Targeted studio acquisition based upon complimentary capabilities
• Streamlined infrastructure to smooth production revenue gaps
• Shared resources across studios empowers creative talent
• Cultural investment to retain and attract top tier talent
G R O W T H S T R A T E G Y R E V E N U E C A P T U R ES T R O N G E R T O G E T H E R
PHYSICAL PRODUCTION
M O R T A L K O M B A T 1 1 - I N - E N G I N E C I N E M A T I C S S H A D O W O F T H E B E A S T - C I N E M A T I C S P R A X I S 1 7 - C H A R A C T E R D E S I G N E X T R A T E R R E S T R I A L V F X - V F X / A N I M A T I O N S E V E R E R E D - C G S H O R T F I L M
H O C K E Y H A L L O F F A M E - S T E R E O S C O P I C V F X
• Targeted studio acquisition based upon complimentary capabilities
• Streamlining infrastructure to smooth production revenue gaps
• Shared resources across studios empowers creative talent
• Fostering culture to retain and attract top tier talent
• Aggressively leverage properties across additional channels (i.e., Animation, Games, Film + TV)
• Long-tail revenue stream
• C a p i t a l i z e o n “s h o v e l - r e a d y ” productions as a parallel path to development
INTELLECTUAL PROPERTY (IP)
Liquid intends to streamline the production pipeIine through in-house development, acquisition and strategic partnerships to optimize IP across platforms.
• Determine optimal media channel for property development, from a story-first POV
• Determine investment structure on a case by case basis (full or co-production)
• Build creative team
• Leverage LMG production capabilities
A C Q U I S I T I O N O P T I M I Z A T I O ND E V E L O P M E N T
P U Z Z L E B O B B L E N H L B R E A K A W A Y 9 8 M A G I C T H E G A T H E R I N G : B A T T L E M A G E
B L O O D O F T H E W E R E W O L F A L L S T A R B A S E B A L L ( 9 7, 9 9 , 2 0 0 1 - 2 0 0 6 )
K W I R K B U S T A M O V E M I L L E N I U M
A N T Z E X T R E M E R A C I N G
C O L L E G E S L A M D R A G O N H E A R T - F I R E & S T E E L
DISTRIBUTION AGREEMENTS
• Through our subsidiary game publishing company, Majesco Entertainment, Liquid has distribution
agreements in place with Sony, Xbox, Nintendo, Steam, IOS and Google Play
• Licenses in place are cross-generational, including 10 of the top 10 most popular consoles on the market
• To date, Majesco games have sold over USD $1 billion across the six major platforms including the smash
hit franchises Zumba, Cooking Mama and the puzzle game Kwirk
C O B A : T A L E O F T H E M O O N M a j e s c o E n t e r t a i n m e n t
GAMING LIBRARY• Titles can be cross-exploited through
animated series for traditional TV and/or streaming platforms, theatrical release(s), augmented reality and/or virtual reality programming as well as merchandise sales.
• To this end, Liquid, in partnership with YDX Innovation Corp. recently announced Romans from Mars: 360 in development for VR
P E R C O N S O L E
A B O Y A N D H I S B L O B
I N J U S T I C E 2 S t o r y M o d e C i n e m a t i c s c o m p l e t e d b y W a t e r p r o o f S t u d i o s
9%8%
20%
13%
39%
11%
ShooterActionSportsSimulation / RoleplayAdventureRacing
7%
60%
17%
15%
SegaSony (PS, PS2, PS3, PS4, PSP)Nintendo (DS, 3DS, SNES, Wii, N64, GB Color, GB Advance)Microsoft (Xbox, Xbox 2, Xbox 360, Kinect)
P E R G E N R E
D O U B L E D R A G O N : N E O N K W I R K 2
C O B A : T A L E O F T H E M O O N B L A S T W O R K S
20
CONTENT IS KINGA S S A S S I N ’ S C R E E D I I I C i n e m a t i c s c o m p l e t e d b y W a t e r p r o o f S t u d i o s I n c .
CONNECTIVITY
CONTENT LIFECYCLE
PHYSICAL PRODUCTIOND e d i c a t e d t o t h e c r e a t i o n o f b o u n d a r y - p u s h i n g i m a g e r y , W a t e r p r o o f p r o d u c e s c u t t i n g e d g e c o n t e n t c r e a t i o n f o r s o m e o f t h e w o r l d ’s m o s t i c o n i c b r a n d s , T h i s h a s e n a b l e d t o a t t r a c t a n d r e t a i n b e s t - o f t a l e n t i n t h e 3 D a n i m a t i o n i n d u s t r y.
A f u l l - s e r v i c e p r o d u c t i o n s t u d i o c r e a t i n g i n n o v a t i v e c o n t e n t i n t h e g a m i n g , f i l m , w e b , a n d t e l e v i s i o n i n d u s t r i e s , Wa t e r p r o o f i s f l u e n t i n a l l m o d e r n d i g i t a l a n i m a t i o n + g a m e e n g i n e s . V i d e o g a m e t i t l e s i n c l u d e M o r t a l K o m b a t X , I n j u s t i c e 2 , X C O M 2 a n d T i t a n f a l l 2 .
B u i l d i n g o n m o r e t h a n 2 5 y e a r s o f h i s t o r y a n d $ 1 B i n H i s t o r i c a l R e v e n u e , M a j e s c o E n t e r t a i n m e n t r e t u r n s w i t h r e t u r n s t o t h e m a r k e t w i t h e x c i t i n g n e w c o n t e n t a n d a l i b r a r y o f b e l o v e d r e t r o T i t l e s f o r g a m e r s t o e n j o y. A s e c o n d g e n e r a t i o n f a m i l y b u s i n e s s , M a j e s c o h a s e v o l v e d a l o n g s i d e t h e g a m i n g i n d u s t r y , b e g i n n i n g w i t h a r c a d e g a m e s , t h r o u g h c o n s o l e s , a n d i n t o t h e m o d e r n d i g i t a l l a n d s c a p e .
A p r o v e n w i n n e r i n t h e g a m i n g m a r k e t , M a j e s c o h a s b e e n a p i o n e e r i n g g l o b a l d e v e l o p e r , m a r k e t e r , p u b l i s h e r a n d d i s t r i b u t o r o f i n t e r a c t i v e e n t e r t a i n m e n t f o r c o n s u m e r s s i n c e 1 9 9 8 .
CONTENT
TV / FILM /
STREAMING
GAME
MERCH / LICENSING
IP
Tr a n s l a t i n g g r e a t s t o r i e s a c r o s s p l a t f o r m s i s a c o r e p a s s i o n o f L i q u i d M e d i a , a n d t h e r a p i d c o n v e r g e n c e o f m e d i a , e n t e r t a i n m e n t a n d g a m i n g a r e o p e n i n g n e w a n d g r e a t e r a v e n u e s t o r e a c h a u d i e n c e s . L i q u i d ’s a b i l i t y t o t a k e o w n e d I P t h r o u g h p r o d u c t i o n u n t o d i s t r i b u t i o n , i n c o m b i n a t i o n w i t h s t r a t e g i c p a r t n e r s h i p s a n d a c q u i s i t i o n s , a l l o w s L i q u i d t o e x p l o i t e a c h u n f o l d i n g o p p o r t u n i t y.
CASE STUDY // CONSOLE + PC COBA : TALE OF THE MOON
• Coba: Tale of the Moon is a Maya-mythology themed action-role playing game (RPG). Coba
blends the gameplay and art style of The Legend of Zelda: Link to the Past with the ethereal
mood of Shadow of the Colossus
• Coba is 100% complete for PC and Nintendo Switch with a planned release date of Q2 2020
• Nintendo Switch
• On sale in China as of December 9, 2020, opening new opportunities for publishers
to reach the Chinese gaming audience
• Porting for Xbox and Playstation consoles (roughly 50% of the total gaming market)
slated for Q1 2020
• At a competitive price of USD$19.99, conservative sales estimates exceed $3M in 2020
• One of Liquid’s mobile games available for iOS , Android and Facebook in collaboration with A&E
Networks
• Anticipated ROI (new content development + marketing spend to net profit) of 40%+ over three years
• 50 / 50 revenue split for both ad revenue and in-app purchases
• New chapter now in development for episodic launch starting January 2020
• Existing audience engaged and clamoring for new content
• Access to A+E advertising channels allows access to new and returning audience
• Cross-promotional agreement in coordination with the launch of Project Blue Book: The Game,
another A+E Title penned by Ancient Aliens: The Game author Steven-Elliot Altman with
expected reach in the millions
• 62,000+ Android reviews with overall rating of 4.3 out of 5
• On Android alone, Ancient Aliens: The Game has generated in excess of 1-million installs, and has
maintained an impressive ARPPU (average revenue per paying user) of USD $17.64
CASE STUDY // MOBILE ANCIENT ALIENS : THE GAME
SHARE STRUCTURES T A R W A R S B A T T L E F R O N T I I C i n e m a t i c s c o m p l e t e d b y W a t e r p r o o f S t u d i o s I n c .
ISSUED COMMON SHARES* CASH ON HAND*** USD$3.5 MILLION9,993,510
*As at June 03, 2020 **Assumes conversion of debenture
***Currency Exchange as of June 2020
NASDAQ: YVR // SHARE STRUCTURE
O U T S T A N D I N G
507,995 STOCK OPTIONS*
3,622,126WARRANTS*
OUTSTANDING CONVERTIBLE DEBENTURE ~USD $405,000
REFLECTS 270,000 COMMON SHARES AND 270,000 WARRANTS
TOTALS - FULLY DILUTED** 14,393,631
O P T I O N S A N D W A R R A N T S C A S H P O S I T I O N
Further Information:Media Inquiries:Daniel Cruz CFO + Director Liquid Media Group Ltd. +1 (416) 489-0092 [email protected]
Adam Bello Media + Analyst Relations Manager Primoris Group Inc. Office: +1 (416) 489-0092 x 226 [email protected]
Keep in Touch.
D O U B L E D R A G O N : N E O N M a j e s c o E n t e r t a i n m e n t .
APPENDIXI R I D I O N 2 M a j e s c o E n t e r t a i n m e n t
PLATFORMS //CONSOLE + PC
• LMG has licenses to sell across multiple generations of consoles for each of the three industry leading
console makers: Sony, Microsoft and Nintendo
• As of Sept 2017, the top 10 selling consoles of all time are previous generation consoles including Playstation
2, Nintendo DS, Gameboy, Playstation and Nintendo Wii (VG Chartz)
• Over 1 Billion previous generation consoles sold (VGChartz)
• LMG owns 200+ games made for previous generation consoles with opportunity to build sequels, emulate
and drive retro title sales. • Steam game Sales Revenue reached USD $4.3B in
2017, an 18.6% increase from 2015 (VG24/7, 2018)
• LMG holds a license to sell through Steam
P C
C O N S O L E
MAR
KET
VALU
E IN
US D
$ M
ILLI
O NS
S O U R C E : P W C , V I D E O G A M I N G A F R I C A
X B O X 3 6 0 0
5000
10000
15000
20000
25000
30000
35000
40000
2011 2013 2015* 2017* 2019*
U NI T
SA L
E S I N
MI L
L IO N
S
G L O B A L U N I T S A L E S O F C U R R E N T G E N E R A T I O N V I D E O G A M E C O N S O L E S I N M I L L I O N U N I T S ( 2 0 0 8 - 2 0 1 7 )
1 0
2 0
3 0
4 0
5 0
6 0
7 0
8 0
9 0
0
N I N T E N D O W i i N I N T E N D O D S
S O N Y P L A Y S T A T I O N 4 N I N T E N D O S W I T C H X B O X O N E N I N T E N D O 3 D S S O N Y P L A Y S T A T I O N V I T A S O N Y P L A Y S T A T I O N 3 N I N T E N D O W i i U
S O N Y P S P
S O U R C E : V G C H A R T S
V A L U E O F P C G A M I N G M A R K E T I N D U S T R Y I N M I L L I O N S
PLATFORMS //MOBILE
• Across the global market, consumers will spend USD $92.1B on apps; more than 3/4 (76% or $69.1B) of
these revenues will be generated by Mobile Games (Newzoo)
• In 2020, the number of mobile phone gamers in the U.S. is expected to grow by 9% from 2017's record of
192.2 million mobile phone gamers (IAB (Trends) 2016)
• In 2017, there are 126.2 million tablet gamers in the U.S. and is expected to grow by 10% more in 2020
(eMarketer, 2016)
• There are more than three billion smartphone users worldwide, including 77% of Americans (SensorTower)
S O U R C E : C A P C O M , I N T E R N A T I O N A L D E V E L O P M E N T
VA
LUE
IN B
ILLI
ON
S O
F $U
SD
0
10
20
30
40
50
60
70
80
90
2011 2012 2013 2014 2015 2016 2017 2018 2019
74.4
68.4
59.8
48.5
39
22.5
14.712.3
8.6
W O R L D W I D E M A R K E T V A L U E O F M O B I L E G A M E C O N T E N T S I N B I L L I O N S $ U S D ( 2 0 1 1 - 2 0 1 9 )
W O R L D W I D E M O B I L E G A M E D O W N L O A D S 2 0 1 8
S O U R C E : S E N S O R T O W E R
• In 2017 the total in-app purchase revenue worldwide
reached about $3B (Statista)
• Fortnite attracted more than 200-million players with the
free-to-play model
MARKET SHARE BY GENRE
• In 2017, shooting games led the way with a 25.9% share of all game sales, action games were second with a
21.9% share of game sales while sports games accounted for the third largest share of game sales at 11.6%
• As evidenced by our library of games spanning the six most popular genres in gaming, Liquid’s strategy is to
maximize reach, revenue and profit through diversification
• We believe appealing to a wide range of gamers will lead to the long term viability of our gaming platform and
deliver value to our shareholdersS P O T L I G H T O N R E T R O G A M I N G
• 78% of gamers are 21+ years of age, with the average age of the North American gamer is 35
• Retro consoles on the market include: NES Classic, Super NES Classic, Playstation Classic, Sega Genesis Flashback
and Atari Flashback
• NES Classic was June 2018’s highest unit-selling hardware platform in the U.S., selling 4M+ units in one year
• Liquid has library of 70+ wholly owned nostalgic games that can be emulated or remastered for release on retro and/or current-generation platforms
MALE
22%
19%
29%
31%
>18 18-35 36-49 50+
FEMALE
29%
24%22%
24%
A V E R A G E G A M E R B Y A G E G R O U P
B E S T S E L L I N G V I D E O G A M E S U P E R G E N R E S O F 2 0 1 7 B Y U N I T S S O L D
S O U R C E : T H E N P D G R O U P / R E T A I L T R A C K I N G S E R V I C E / D I G I T A L G A M E S T R A C K I N G S E R V I C E S O U R C E : T H E N P D G R O U P
F O R E C A S T I N G T H E O P P O R T U N I T Y : C A P T U R I N G 1 % O F 2 0 2 1 T O P 6 G E N R E R E V E N U E S
All Other3.6%
Strategy4.2%
Fighting6.0%
Racing6.4%
Adventure9.1%
Role Playing11.3%
Sports11.6%
Action21.9%
Shooter25.9%
$111$158
$197
$197
$381
$451
Shooter Action SportsRole Play Adventure Racing
MARKET + INDUSTRY DATAThe information contained herein includes market and industry data that has been obtained from third party sources, including industry publications. LMG believes that its industry data is accurate and that its estimates and assumptions are reasonable, but there is no assurance as to the accuracy or completeness of this data. Third party sources generally state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance as to the accuracy or completeness of included information. Although the data is believed to be reliable, LMG has not independently verified any of the data from third party sources referred to in this presentation or ascertained the underlying economic assumptions relied upon by such sources.