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

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

• 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 Ke y Sta tistic s 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 ) 191% • Sc a le L a b is L o 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 Re ve nue CAGR (2015 – 2017) Ne two rk (Y1N) • F o unde d in Aug ust 2013, the Co mpa ny ha s e xpe rie nc e d ra pid g ro wth. T o 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 $27.3 million Gross Re ve nue (2017) • 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 3.0 billion Vie ws Monthly • 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 408 million T otal Subsc ribe rs (YT D)

1 T op- r anke d YouT ube MCN globally 2 Huge Pote ntial Syne r gy with Ye ah1 Ne twor k   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 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 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 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 o ve r 1,750 c ha nne ls a nd 3.0 bn vie ws monthly c o mb ine to promote a ll c ha nne ls g loba lly   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 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 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 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 pla tfo rm 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  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 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 3 4 Abundant Room for Gr owth of Digital Me dia Industr y Str ong Gr owth and F inanc ial Pe r for manc e   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 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 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 2018 25% a nd is e stima te d to g row a t 30% 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  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  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 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 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 spe nd (26.3%) is c urre ntly b e lo w a nd will mo ve to wa rds the wo rldwide 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 a ve ra g e (43.5%) Vie tna m)  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  I n 2020 a nd b e yo nd e xpe c t 10% Ne t Ma rg ins 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

SCAL E L AB’S BUSINE SS OVE RVIE W

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 o ve r 240 c o untrie s wo rldwide with 3.0 b illio n vie ws pe r mo nth Jake Paul Sc ale L ab Cr e ator 17.6M Subsc r ibe r s

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 % of Buye r s E xpe c ting to Inc r e a se Spe nd Digital Me dia Consumption by U.S. Adults Co nsume rs wa tc h vide o s o n the ir 01 70% 83% 81% c o mpute rs e ve ry da y Othe rs, 79% 77% 72% 72% 8% T he ave r age adult in the U.S. spe nds De skto p/ ne ar ly 6 ho ur s pe r Mo b ile , L a pto p, day with digital 55% 37% me dia Vide o So c ia l Displa y Se a rc h OT T / Na tive / Co nsume rs wa tc h vide o s o n the ir 02 Co nne c te d Co nte nt 67% sma rtpho ne s e ve ry da y T V Ma rke ting 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) 23.5 2019 43% 34% 25 100% Pub lishe rs e xpe c t to inc re a se the ir 19.3 03 2018 38% 35% 79% 20 80% mo b ile vide o spe nd b y a t le a st 25% 15.4 2017 37% 36% 15 60% 10.9 2016 36% 37% 10 40% 25% 23% 21% 2015 33% 38% 18% 5 20% Adve rtise rs e xpe c t to inc re a se the ir 2014 28% 39% 04 70% mo b ile vide o spe nd b y a t le a st 25% 0 0% 2015 2016 2017 2018 0% 20% 40% 60% 80% 100% Dig ita l T V Print Ra dio Out-o f-Ho me So c ia l Ad Spe nd % o f Dig ita l Ad Spe nd

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 o 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. Cr e a tor Pa r tne r s / Cha nne ls YouT ube MCNs 70-95% o f ne t a d re ve nue 55% a d re ve nue re c e ive d fro m Yo uT ub e Yo uT ub e c o nte nt Vie we rship (CPM) Vie we rship Online vide o Pro duc t pla c e me nt, spo nso re d Spo nso rship re vie ws, B2B pa rtne rship in 100% c a mpa ig n- re la te d c o st c o nte nt pro duc tio n Ad re ve nue b a se d o n CPM Note : F lo w o f Ad Inve nto ry F lo w o f Re ve nue Audie nc e re a c h o n a g lo b a l sc a le Br a nds

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 Ac c e le ra te d Growth Cha nne l Optimiza tion Big Da ta Ana lytic s Conte nt L ibra ry Ac c e ss to b ig d a ta a na lytic s Ac c e ss to hug e c o nte nt lib ra ry Give c re a to r pa rtne rs the to o ls, Ma na g e a nd impro ve to o ls a nd re po rts fro m YE G’ s pa rtne rship with the e xpe rts, a nd e ve n the the c ha nne l to e nha nc e c usto me r fina nc ing to g ro wth c ha nne l’ s g lo b a l c o nte nt c o mpa nie s like e xpe rie nc e s , inc re a se inte ra c tio ns, Nic ke lo d e o n, T VB, e tc . to a ud ie nc e a nd e a rning s re te ntio n ra te a nd re ve nue mo ne tize c o nte nt Ha nds- On Support Conte nt Prote c tion Hig h- Profile Bra nds Apps Offe rs Co nte nt-ID re la te d se rvic e s Sc a le L a b ha s stro ng c o nne c tio ns Wo rk c lo se ly with c re a to rs who a re Ga in fre e a c c e ss to music lib ra rie s so c re a to r’ s vid e o s a re n't sto le n. o the rs d o n't. Ga in Glo b a l e xpo sure like E pid e mic So und , b ulk o ptimize se rio us a b o ut g ro wth. No o the r Sc a le L a b ha s a te a m tha t wo rks a nd c o lla b o ra tio n, e xc lusive a c c e ss yo ur c ha nne l with Vid IQ, c re a te ne two rk is mo re ha nd s-o n a nd with pa rtne rs o n mo ne tiza tio n issue s to to p-le ve l b ra nd s & spo nso rs who re spo nsive tha n Sc a le L a b o utro s with Outro Ma ke r a nd pro te c ting c ha nne ls pa y hig he r CPM ra te s

YouT ube Awar ds Vie ws by T op Countr ie s Ave r age Vie w Dur ation 18.5% T he Unite d Sta te s Diamond Pla y Butto ns 3 (>10m Sub sc rib e rs) L a tin Ame ric a 33.6% 3.38 Gold Pla y Butto ns 5.1% 85 I ndia (>1m Sub sc rib e rs) minute s Russia 4.4% Silve r Pla y Butto ns 540 Unite d K ing do m 3.7% (>100k Sub sc rib e rs) Par tne r ing with T op Global Br ands

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 44% 27% 15% 14% % o f to tal ne two rk vie ws, data o n January 05, 2019 Kids E nte r tainme nt T e c h & Gaming Othe r • 804 Cha nne ls • 41 Cha nne ls • 782 Cha nne ls • 123 Cha nne ls • 1.5B Mo nthly Vie ws • 520M • 930M Mo nthly Vie ws Mo nthly Vie ws • 450M Mo nthly Vie ws • 242M Sub sc rib e rs • 25M Sub sc rib e rs • 122M Sub sc rib e rs • 54M Sub sc rib e rs • 95M T • 32M T • 58M T o ta l Wa tc h Ho urs o ta l Wa tc h Ho urs o ta l Wa tc h Ho urs • 30M T o ta l Wa tc h Ho urs • 361,365 T • 16,789 T • 416,673 T o ta l Vid e o s o ta l Vid e o s o ta l Vid e o s • 138,384 T o ta l Vid e o s