 and starting right now, we're going to invite on screen the Chief Operating Officer of G2 Esports, Mr. Peter Mukha. He'll be talking about how COVID-19 impacted the esports industry. A very warm welcome to you, Peter. The screen is all yours. Hello, everybody. I said already, my name is Peter Mukha and thanks for having me here. And I'd like to give you kind of insight into our work and what we are doing and what G2 is all about. For those which are already familiar with esports, esports environment, it might be some kind of two basic information that I'm sharing, but I want to give you an opportunity to understand, first of all, what we are, what the business model is about before I jump into the COVID situation and what that impact is on us in 2020 and beyond. Let me share my screen. So I have prepared some slides. Maybe if you like a little bit or a little bit. So that is about me, a little bit understanding why I'm here at G2, managing this company together with Carlos Ozzelot. Carlos Rodriguez named Ozzelot, who he was a former professional player. My background is very much in sport, 11 years of Adidas, then moving into the entertainment industry towards Universal Musing, leading here the business in Central Europe before I joined Activision, by the way, within the same holding Vivendi Group. And what there in the company when the merger with Blizzard happened before I then joined the little tiny company, Microsoft, and leading there the retail business. After that, I decided this is enough of big companies and I started to invest money and manage some startup environment. One of them were Simanto, a technology company around data. And ultimately I met Carlos and I became the CEO of the company. All together I'm talking about 33 years in the industry or in different industry and managing different companies and businesses. That is about me. What it tells you is that I'm pretty old. I'm pretty old. So not representative of that industry, how you can see it. I mean, I like to say that this esport industry, first of all, gaming and esport is not exactly the same. Content, gaming is content of our industry, but not necessarily the same. But this is the biggest niche, I think, in the world. If you see what we talk about, there are about almost two million people in the world which are familiar with esport and interested in esport. And the question, why is it so attractive for so many brands? And if you see and look into the community, we are talking most likely about the most attractive target group in the world for almost any brand in this world because the audience is between 10 and 35. And these are the consumers of today and the future. And that's why many companies and brands have the ambition to be part of this esport industry. By the way, I predict that to be the fastest growing environment in the entertainment industry overall in the next coming years. What you see is about five years ago, the partners in this industry were very much endemic partners, but that has completely changed over the last five to 10 years already. So what you can see there is that the big sponsors from traditional esport are now moving into esport. And they're doing that with a lot of commitment, with a lot of budget behind it. And they do that with a 100% opinion that this is the right way to spend their marketing budget in a very effective way. What you see as well, that traditional sport clubs are part of this esport industry as well. So they are building teams for different leagues as well. So they don't want to miss that train going forward. That was me because I have no idea why my computer is pretty slow. Why is a club and why did I took the decision to put myself into a club into a team environment? And I think there is nobody questioning the fact that we own the asset in this industry. And this is the players. And the players is what makes this industry this kind of attractive environment. We work closely together with league organizers. We work closely together with publishers. And we are present on all platforms. But the players, this is what makes this industry so appealing. So we own something which is the heart and more or less the asset of this entire industry. And that makes it so interesting for us to be where we are. What are we? So what is G2 about? First of all, it is important to mention is we see ourselves as part of entertainment. And the same way as we have professional teams which fight hard for good performance and success, the same way we are an entertainment company, a content producer. We are working closely together with our partners. And the ambition we have is we always want to be relevant in terms of what we produce. We want to be spot on in terms of what we prepare and distribute for our fans, for our community. And that's what we do together with our partners. The other thing about G2 is we are sometimes borderline in terms of how we communicate. We are always extremely empathetic in terms of what we bring across. We don't take ourselves too serious because we don't have not the intention to change the world. But we have the ambition to give some fun, to give entertainment into our communities. That's what we are doing. So what you see and to a certain extent what makes us what we are and why are we so proud with the current setup. These are all the brands and names that you can see that we could win over the last three years for G2. These are definitely and that is a constant thing I want to say. We never speak about these guys, about sponsors. Sponsors are brands and company that show up in your office, leave the money on the desk and disappear. That's not our intention. We work extremely closely together with our partners. We do joint marketing activities. We have brand marketing campaigns with them. We are their content producer. You could call us a media house for them in terms of production and distribution of any content. And the thing that we are 100% proud of is the fact we have never lost a partner. So whenever we started to work with people and we work with brands, we still work with them. We never lost anybody. And that makes us extremely proud and tells us that we must do certain things right. Overall, how is our business model? How does it look like? And actually very similar to traditional sports. So very comparable with what football clubs, basketball clubs, cricket clubs or whatever, what they are doing. So we work closely with partners, as I said before. This is the heart of our understanding what we are in close collaboration working with other brands. We have income due to price money. And thankfully, our teams perform extremely well for a long time. We are not talking only about professional players. We are working with influences creators as well. And on the other end, we have typically as any other sport club in the world as well, consumer products or merchandise, who you want to call it, both physical product as well as digital product. We work closely together with Leaks. We share the success that we make together there. And we have similar to sport clubs as well, media, income and revenue as well. For us, it's not that relevant being present on TV. For us, it's more important to be on relevant platforms. And that's what we do extremely intensively. Let me be proud again in that presentation. So after I said, we are proud of the partners that we work with, the same way, I think G2, and that's nothing to be too arrogant, one of the most successful teams ever in this industry. And this, we are present in eight different games. When whenever we are present, we are, let's say, top five at least in the world. So we never, we always try to get the best teams into our company. And we support them with whatever we can in order to make them successful. We allow them to train as much as they can. We try to help them to build their own brand. But this is all part of our own army. So that's what we are extremely proud of. And hopefully, and I think I'm pretty convinced that this will continue like this. Overall, important to know big difference. We have, as I said before, we are a multi-team club being present internationally in all different kind of relevant leaks and games. And we are convinced that we are further growing and entering into other industry or into other games as well in the future. What makes us successful? And how do we measure that? And what I said before in terms of our culture and our philosophy, we always want to be relevant. And what you can see, and what you can see as well in terms of a work that we won over the last couple of years, we are whenever we are in a leak or in a game, we always one of the most watched, most streamed, most relevant team overall. We spend a lot of money to continue to be in that position by producing content exactly the way how the community is expecting that and is demanding that as well. The standard way anybody who is familiar with eSports and clubs and how they are managed is pretty simple, pretty decent in terms of we have a marketing plan together with our partners. We decide in what game, what event, what content we want to produce and how to distribute that on different channels and platforms. Then we are the content producer. We promote the content with players and influencers. And ultimately we have a data tool as well that we measure the success of whatever we do together with partners. Having that said, let's enter into the situation around COVID-19 or corona in 2020. Being that long in the industry and on this planet, this was I think, my opinion, by far the biggest impact ever on this planet, on industry and of course, all societies in this world. And there were different kind of impacts for different industries. And luckily and thankfully, we are able to say that we had an impact as well, that industry had an impact as well. You see that for the first time revenue in eSports stay flat or even slightly decreased to a certain extent. What you see in 2021, that is a forecast 21 from New Zealand and how they calculate it is, you still see that the increase is moderate. So for 21, there's still a lot of influence due to corona. But then in 2022, hope is there that everything gets back to normal and that we can fully use the power that the industry has to grow significantly more than this is the case in 2021. G2 needs to be extremely, extremely happy and thankful for the fact. If I show you the number, is there any question or there's I hear sometimes some background noise of that's not the case. So what you see here is compared to the industry grows, G2 has a incredible growth in 2020. Even though that we had some impacts of corona as well, but we could grow our business so much that this is really, really incredible. However, we had to change almost everything as well the way we were. We were to a certain extent privileged because our business is fully digital and the issues other more old-fashioned industry have is the fact that they never consequently digitalized their business. So we were already in an advanced status in terms of being prepared for a digital environment. We had some kind of footprint in the offline environment as well. And we were able to move that from offline to online in order to copy fully on track in terms of our marketing execution. What does it in concrete means? What was the impact in 2020 that we have seen? So what we definitely saw is the fact that the partners that we work with works much slower in terms of commitments for budgets to be spent in 2020. That was all about the insecurity around COVID-19 because they couldn't see what the impact would be. And therefore, of course, they were more cautious before they made decisions for big money investment into anything. Thankfully, we only had a delay. We didn't saw any kind of reduction in budget they spend or anything in terms of reduction of initiatives. But there was a high level of cautious behavior and the kind of thinking twice and even three times before anything was committed. But in real numbers, we were extremely successful anyhow. Because what you can see is we found six new partners, one of them or two of them is BMW and Adidas. So not small partners, big ones, the real big ones in the industry. We could increase our starting revenue in 2025 by 75%. And ultimately, an increase on our end, what you could see what was flat in the industry, we could increase our total business by 45%. So very happy that this is the case for us. It's not given due to coincidence. We started last year, February, when we heard first indication that there might be a pandemic in the world, we started immediately to think what the implication could be and started to adopt our toolkit accordingly. So how does it look like in particular? It looked in a way that there was no way anymore to produce content the way we did before. We didn't want to take the risk to have potential risks of our players being infected by Corona. And therefore, we simply had to decide that we use photos for video creation. And the community took that extremely positive that we had this kind of responsible behavior, not having this kind of potential risk for any of our employees or players to be confronted with Corona. And therefore, we just changed the way how we produced. We needed to work with kind of non-person-present kind of production. And what you can see here, that was extremely well perceived by the community and that was extremely well perceived by our partners in this case, BMW as well. We got good results. We got even great results. And therefore, that was one activity that we did in terms of production. A second example, what we changed usually for worlds, there's a kind of big kind of on stage life content production and stuff like this. This was impossible, even though that they created an isolation bubble environment for the tournament, it was a physical tournament that happened. It was not an online only tournament. It requires that our players and all the production team needed to be in quarantine for 14 days before the event even started. And what we simply did because even the teams were not allowed to share rooms or to share any kind of thing during these 14 days of quarantine, we gave them video cameras themselves and we created content in the isolation bubble for the 14 days in advance and shared that and joined that with our partners and distributed that the same way as we did before. That was extremely well perceived because the showing responsibility for your organization and showing that you adapt according to the new situation around Corona, that was something that was super well perceived, both audio in the community as well with our partners. What we think what it will be in the future now that we see that it's getting better, it's not like that everything is done and it's solved and it's fixed right now. I think we are still in a situation that we need to be careful in terms of whatever we do in terms of getting back to normal. But what I personally think it will never be, it will never go back to normal and it should not go back to normal because we all have learned that traveling for any event is not 100% needed. We have seen that you can reach your community and audience without being present on events or on any activity. We have seen there are alternatives in order to avoid any potential risks. From a business perspective I see we were so privileged that we didn't saw any direct impact and now here I'm talking about G2ONI. There are definitely other organizations in eSports which have seen a direct impact. We didn't have that. I don't see that in 2021 but there might be an indirect impact for us as well because the partners that we work with might have an impact and might need to react in terms of their budget and commitments. I think we will maintain to use the established new formats like online events and online production and that that is a good thing to have because it saves a lot of money that money can be spent in a better way instead of traveling and that's why I think we should do our best to keep that new formats alive and we created new formats. We have been able with that concept to have all our deliverables fulfilled and we could significantly grow our audience and I really believe and I think that's not something that you need to be great in making projection for the future. I think we shouldn't go back to the way how it works before because we have learned that the way how we manage the business right now with the adaptation we made it works even better than it worked ever before. So hopefully that could give you a kind of understanding what we are, how we work, what we do and what we see for the future. Thank you. Thank you so much Peter for that wonderful address to our audiences. I'm sure all our viewers have taken away some great highlights and takeaways from your session. Thank you so much for your time once again. You're welcome.