Sports Ventures Acquisition Corp
Sports Ventures Acquisition — SPAC Merger (January 2022)
39 slides from Sports Ventures Acquisition's SPAC merger presentation, Jan 25, 2022
Slide 1: Where Technology Meets Creativity to Transform Storytelling
WHERE TECHNOLOGY MEETS CREATIVITY TO TRANSFORM STORYTELLING INVESTOR PRESENTATION JANUARY 2022
Slide 2: Disclaimer
DISCLAIMER About this Presentation This investor presentation (this “Presentation”) is for informational purposes only to assist interested parties in making their own evaluation with respect to a possible transaction (the “Business Combination”) involving Prime Focus World NV (the “Company”) . The
Slide 3: Disclaimer (cont.)
DISCLAIMER (CONT.) Use of Projections This Presentation contains financial forecasts for the Company with respect to certain financial results for the Company's fiscal years FY 2022 through FY 2026 . The Company's independent auditors have not audited, studied, reviewed, compiled or performed any proce
Slide 4: Disclaimer (cont.)
DISCLAIMER (CONT.) Trademarks This Presentation may contain trademarks, service marks, trade names and copyrights of other companies, which are the property of their respective owners . Solely for convenience, some of the trademarks, service marks, trade names and copyrights referred to in this Pres
Slide 5: Today's Presenters
TODAY’S PRESENTERS 5 NAMIT MALHOTRA Founder and Chief Executive Officer (since 1997) • Founder and Non - Executive Director of Prime Focus Limited (“PFL”), the parent company of DNEG • Family history in the motion picture industry that dates back three generations • Established Video Workshop in 199
Slide 6: DNEG at a glance
Deep relationships with content creators around the world Full suite of screen - agnostic solutions spanning from script to screen Significant competitive advantage from state - of - the - art technology platform enabling proprietary global workflow driving efficiency at scale Profitable, attractive
Slide 7: Streaming fueled by subscriber growth driving massive demand for content
167 204 285 64 146 334 72 92 185 35 61 104 11 30 66 94 348 533 1,068 2019A 2020A 2024E 7 FY19 - 24E CAGR (a) (b) (c) NM +43% +25% +21% +39% +11% $76b $84b $ 129b Global content creation spending of major media / tech companies (d) Global OTT subscribers of major streaming players (m) +11% STREAMING
Slide 8: DNEG is unique in scale and capabilities amongst its competitors
Visual Effects (VFX) Feature Animation Tier 1 – Tied to Studio Tier 1 - Independent Tier 2 & other Fully embedded into content ecosystem Truly global integrated platform 6,700+ employees across 11 locations Scaled, proprietary tech infrastructure Broad market reach & product offerings Strong margin
Slide 9: Recurring revenue streams from the world's largest content creators
RECURRING REVENUE STREAMS FROM THE WORLD’S LARGEST CONTENT CREATORS 82% 84% 85% 12% 12% 12% 94% 96% 97% FY2019 FY2020 FY2021 % Revenue from recurring customers (a) Selected marquee projects executed Top 7 studios (b) Other Client tenure; Last 6 years approx. revenue 21 years $200m 17 years $280m 18
Slide 10: Strong organic growth driven by a robust and recurring order book and pipeline
$ 334 $ 397 $731m FY22+ FY2022 FY2023+ STRONG ORGANIC GROWTH DRIVEN BY A ROBUST & RECURRING ORDER BOOK AND PIPELINE High Revenue Visibility ($m) $320 $369 $306 $400 $508 $610 $813 $977 FY19A FY20A FY21A FY22E FY23E FY24E FY25E FY26E $76 $79 $82 $100 $150 $201 $289 $384 FY19A FY20A FY21A FY22E FY23E
Slide 11: Multiple pillars for continued growth
MULTIPLE PILLARS FOR CONTINUED GROWTH Organic Growth Inorganic Growth Emerging Markets/ReDefine Gaming & Adjacencies 11 11
Slide 12: Organic growth: enhance scale and increase capacity
Increase global headcount to 10,000+ over medium term and recruit and retain top talent Establish new global studios Invest in technology with continued innovation in creatures, animation, and real - time capabilities Strategic industry partnerships to mitigate risk and manage capacity ORGANIC GROWT
Slide 13: Strategic M&A to catalyze growth
13 Proven history of successful M&A and global integration With new capital, DNEG can pursue a highly disciplined M&A strategy to increase capacity, bolster technology, and expand geographically Highly fragmented animation, VFX, and gaming market provides significant opportunity to capture greater s
Slide 14: Well positioned to capitalize on growth in emerging markets including China and India
• Provides VFX and animation services for mid - range, higher volume project work in the West (a) , India, and China • Leverages DNEG’s existing technology and tools • Margin acceleration through largely India - based execution • Recent expansion into Montreal and Bulgaria as well as plans for Austr
Slide 15: Gaming industry creating new demand for our high-end content solutions
$107 $219 2016A 2024E Global Gaming Revenue ($b) 15 November 2021: TEV: $1.625b Highlights ability to leverage VFX tech into gaming and other adjacencies 2024E GAMING INDUSTRY CREATING NEW DEMAND FOR OUR HIGH - END CONTENT SOLUTIONS Already being tapped to produce high - quality movie content based
Slide 16: Significant value in proprietary tools
Composite, Pipeline & Review A set of machine learning tools unique to the industry Build / Environment Generation Creature FX & FX Simulation Rendering 16 SIGNIFICANT VALUE IN PROPRIETARY TOOLS WITH APPLICABILITY TO VFX, GAMING, AND BEYOND Complex asset sets from trees to full cityscapes Photoreali
Slide 17: Our key barriers to entry
OUR KEY BARRIERS TO ENTRY Deep industry relationships Award - winning track record Global footprint & scale Technology 17 17
Slide 18: Global, scaled workforce well positioned to address growing demand
Toronto & Montréal Headcount: 781 Los Angeles Headcount: 41 London Headcount: 674 Vancouver Headcount: 413 ~ 6,700 Employees Worldwide Global teams across 11 facilities (a) in 4 time zones deliver 24/7 production capabilities Footprint aligned with tax credit incentives for our customers Work is sha
Slide 19: Technology is the key to our success
Cutting edge, globally distributed tech infrastructure built over 20 years 19 TECHNOLOGY IS THE KEY TO OUR SUCCESS Global technology backbone and decades of experience not easily replicated Technical complexity of high - end work and information security requirements entrench DNEG as an industry lea
Slide 20: Key investment highlights
KEY INVESTMENT HIGHLIGHTS Benefits from massive content creation industry tailwinds across the globe Long - term and well - established relationships with the major content creators, all of which have increasing demand Highly visible, recurring revenue streams coupled with an integrated global workf
Slide 21: Why go public now?
Attract and retain top talent DNEG aims to hire premier talent, and the prominence and resources (e.g., stock options) of a public company will give DNEG a competitive advantage Further invest in technology and increase capacity DNEG typically operates at high capacity utilization, and new capital w
Slide 22: Transaction overview
TRANSACTION OVERVIEW Sports Ventures Acquisition Corp (NASDAQ: AKIC) is a publicly listed s pecial purpose acquisition company with $230m cash held in trust SVAC has agreed to combine with DNEG in a transaction that values the pro forma enterprise value of DNEG at $1,706m - Implies 12.4x TEV / CY 20
Slide 23: Valuation versus peers
12.4x 21.6x 32.5x NM 25.0x 19.6x 11.5x 8.0x 7.5x Avg: 27.1x Avg: 14.3x Overall avg: 18.0x 0.3x 2.1x 2.0x NM 1.4x 0.6x 1.1x NM 1.0x Avg: 2.0x Overall avg: 1.4 x Avg: 1.1x 3.5x 4.1x 7.2x 23.8x 5.6x 3.5x 1.4x 1.3x 2.4x Avg: 2.8x Overall avg: 3.6x (a) Avg: 5 .6x (a) TEV ($b) CY22E EBITDA ($m) Note: Mark
Slide 24: Strong growth and high profitability
40.4% 10.2% 16.6% NM 17.6% 33.6% 10.9% (1.6%) 7.4% Avg: 13.4% Avg: 13.6% Overall avg: 13.5% 24.6% 13.4% 18.5% 29.6% 13.0% 15.2% 11.9% 3.6% 3.3% Avg: 20.5% Avg: 9.4% Overall avg: 13.6% CY22E EBITDA margin Note: Market data as of 1/21/22; Balance sheet as of latest available; Company metrics calendari
Slide 25: Appendix
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Slide 26: SVAC business overview and management team
Business overview Experienced management team Acquisition criteria Alan Kestenbaum , CEO & Chairman • Previously CEO of one of the earliest and most successful SPACs, International Metal Inc. • CEO of Stelco, a Canadian steel company • Operates a one - of - a - kind filming destination utilized by n
Slide 27: Other supplemental information
OTHER SUPPLEMENTAL INFORMATION
Slide 28: Visionary, creative, and entrepreneurial management team
28 VISIONARY, CREATIVE, AND ENTREPRENEURIAL MANAGEMENT TEAM WITH A HISTORY OF SUCCESS Deep bench of 60+ creative VFX supervisors (industry leaders) globally Proven history of successful M&A and global integration Namit Malhotra Founder, Chairman & CEO 25 years experience Vikas Rathee CFO 21 years ex
Slide 29: DNEG is fully integrated into the content creation process
DNEG IS FULLY INTEGRATED INTO THE CONTENT CREATION PROCESS (Months before release) Additional payments ~17 - 19 months ~13 - 14 months ~14 months 1 - 3 months Pre - Production + Concept Art Post - Production Production Final Delivery Content released Additional monetization / growth opportunities VR
Slide 30: Revenue detail
Historical performance benefited from secular tailwinds in content creation and strong execution with top - line growth on the back of: ‒ Large scale live action VFX work ‒ Continued growth in Feature Animation projects ‒ Launch and quick traction for the ReDefine brand Revenue diversity and orderbo
Slide 31: Order book and pipeline conversion
166 203 198 226 340 220 48 76 146 74 57 114 214 279 344 300 397 334 212 259 299 267 58 43 56 31 270 302 355 298 Actual Revenue FY19A Order book and pipeline @ 3/31/2018 Actual Revenue FY20A Order book and pipeline @ 3/31/2019 Order book and order pipeline conversion ($ in m) On average (a) , DNEG co
Slide 32: Revenue and contract basics
Additional opportunities (Cat C2) Order pipeline (Cat C1) Order book (Cat A, B) Revenue Revenue breakout At the date of estimation, the order book and pipeline is comprised of: Typical contract and payment terms Key risks Contract size and pricing is based on duration, scope of work and complexity o
Slide 33: Adjusted EBITDA detail
76 79 82 100 150 201 289 384 FY19A FY20A FY21A FY22E FY23E FY24E FY25E FY26E Adjusted EBITDA ( $m) Demonstrated margin expansion driven by global workflow model with top - quality execution delivered by lower - cost regions − Quadrupled Adj. EBITDA from FY15 to FY21 (a) Relentless focus on efficienc
Slide 34: Capital structure overview
CAPITAL STRUCTURE OVERVIEW 34 Note: Presents numbers in US GAAP format. Pro forma for India Production Services Business (a) Adjusted for a new short - term $75m liquidity facility used to invest in future growth and for general corporate purposes; Pro fo rma balance sheet based on 9/30/2021 capital
Slide 35: Adjusted EBITDA reconciliation
35 ($m) FY19 FY20 FY21 LTM 9/30/21 Net Income 25 2 14 29 Add: Tax (1) 7 8 12 Income before income taxes 24 9 23 41 Add: D&A 33 30 30 28 Add: Interest 16 14 14 11 EBITDA 73 52 67 80 Adjustments Covid cost adjustments 0 2 7 2 Capital raising costs 2 7 3 0 Stock compensation expenses 1 17 2 1 Other one
Slide 36: Pro forma organizational structure
PRO FORMA ORGANIZATIONAL STRUCTURE 36 Prime Focus Ltd (India) Novator Capital Limited (Guernsey) SVAC (Cayman) ESOP Sponsor PIPE Investors Public Other Subsidiaries Double Negative Holdings Ltd (UK) Note: Organizational structure presented in summary form and excludes certain parent, holding and sub
Slide 37: Risk factors
RISK FACTORS Certain factors may have a material adverse effect on our business, financial condition, and results of operations. The summa ry risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties that we are unaware of, or that we currently believe
Slide 38: Risk factors (cont.)
RISK FACTORS (CONT.) 38 Risks Related to our Global Operations • The international nature of our business exposes us to several risks, such as significant currency fluctuations and unexpecte d c hanges in the regulatory requirements of multiple jurisdictions. • Exchange rate fluctuations could adver
Slide 39: Thank you
THANK YOU 39
Sports Ventures Acquisition — SPAC Merger (January 2022) on 6ix