Company Presentation:CLSA

18 March 2024
1Disclaimer

The information contained in this presentation has not been independently verified. The Company assumes noresponsibility or liability whatsoever (in negligence or otherwise) for, the accuracy or completeness of, or any errors oromissions in, any information or opinions contained herein nor for any loss howsoever arising, whether directly orindirectly, from any use, reliance or distribution of this presentation or its contents or otherwise arising in connection
with this presentation. It is not the intention to provide, and you may not rely on this presentation as providing a fair,accurate, complete or comprehensive analysis of all material information concerning the Company, or theCompany's financial or trading position or prospects. The information and opinions contained in this presentation areprovided as at the date of this presentation and are subject to change without notice.
This presentation contains projections and forward-looking statements that reflect the Company's current views withrespect to future events and financial performance. These views are based on estimates and current assumptions
which are subject to business, economic and competitive uncertainties and contingencies as well as various risks andthese may change over time and in many cases are outside the control of the Company and its directors. You arecautioned not to place undue reliance on these forward-looking statements, which are based on the current view ofthe management of the Company on future events. No assurance can be given that future events will occur,that projections will be achieved, or that the Company's assumptions are correct.
DBS Bank Ltd. acted as the sole issue manager for the business combination of Vertex Technology Acquisition
Corporation Ltd with 17LIVE Inc.
2

Table of Contents

01

02

03

IndustryOverview17LIVE at aGlance

OurCompetitive
Advantage

0405

FinancialOverview

Appendix3

Industry Overview

4Industry overview

Media andEntertainmentPublishing

GamesRadioFilmMusicTV

VOD

Pay TV andFTA TV

SVOD, TVOD,AVOD

Live onlinesocialentertainment

InternetAdvertisingInteractive video
streaming
Video gamestreaming

5

Market sizing, forecast and share estimates

Total revenue (expected):
Asian media and entertainment industry:•USD 339 billion by 2027 with CAGR of 7% (2023-27)

Interactive Video Streaming Platform Market(SEA):•CAGR 7%

USD 2160.9 million by 2027 with CAGR of 19.2%(2023 to 27)

2027CAGR 19.2%
2023
2027

US$339billion
2023

2027
Source: Frost & Sullivan IMR Report 2023

US$2160.9
million2027

6

The post Covid-19 landscape

Covid-19 impacted the way we interact with technology.
Changed behavior patterns

Rise in the sub-segments of live streaming

Entertainment consumption

Entertainment

Social interactions

Shopping

Learning

Education

Acceptance of the virtual experience economy

7

Macro trends

Rise of thevirtual idols
Demographic
shift and riseof creator’s
economyPersonalisedand mobilefirst content

Gaming andSports – thefuture ofmedia andentertainment

GlobalAwareness ofAsian Marketsand Trends

8Key industry drivers and growth opportunities in SEA

We will capitalise on key industry drivers and growth opportunities in SEA.
Key industry drivers

Growth opportunities in SEA

1.

Internet penetration rates

1.

Continued expansion of live commerce and its
enablers

2.

Advancement of mobile payment infrastructure2.

Enterprises that provide full stack offering3.

Growing middle class and disposable income in SEA
3.

Game live streaming (eSports)

4.

Technological advancements in streaming technology
4.

More than 50% of the region’s online users consume
gaming video content (Youtube and Twitch mostpopular)

5.

Flourishing Anime, Comic and Games segment anddemand

6.

V-Liver sector is nascent in SEA

5.

Increased variety, quality and interactivity in content

6.

Proliferation of fandom and idol culture

9Drivers of each market

Indonesia

Singapore

Thailand

••
•

•

•
•
•

Demographic is young andinternet adoption is largely mobile
firstHyper localStreamers have an integrated
presence
Potential for platforms that offer
full-service

Technologically advanced
Highest monetised customer
penetration rates for interactive
video streaming platforms••

One of the largest internetconsumption countries in the world
Individuals are online for avg 8hours a day
Social media has a significant
presence in the country
Govt actively promoting DigitalThailand strategy

The Philippines

Malaysia

Vietnam

•
•

•••

•
•

Community centric culture
Strong pageant community /support for beauty queens
2nd largest population in SEA
Growing market••••

Convergence of live streamingand ecommerce
Strong leverage of live selling(similar to Chinese model)
More than 95% of internet
population uses social media
One of the highest internet
penetration rates in SEA
One of the largest and mostaddressable audiences•Proliferation of social commerce
Consumers have casualengagement rates with livestreams (broad audience)
Community centric

10

Ongoing business initiatives

Technology••

Roll out of V-Liver strategy, launching of 2 IP Groups
Continued integration of streaming technologies across theplatform for enhanced user experience

Operations•

Operational right sizing across Taiwanese business

Partnerships••

Entered into a MOU with mm2 Asia
SEGA and Nintendo Partnerships

Substantial war chest from De-Spac•Deployment to drive inorganic growth in across Asia

11

17LIVE at a glance

1217LIVE at a glance

Proven business model

Strong user engagement

Strong Growth Drivers

US$278.9mn~93 min+60%

2023 Revenue

Avg. Daily View Duration Per DAU2

2023 V-Liver Revenue

US$20.0mnSpenders

2023Adjusted EBITDA1

16.1%of MAU2

7.1x
Japan V-Liver MAS(Dec 2022 vs Dec 2023)

13

Growth initiatives

14

Diversified growth drivers: Large and growing total addressable market

Rapidly growing total addressable market1
Live commerce

Key drivers of media &entertainment industry

US$6.1bn (2027F)+ 22.7% (2023-2027F) - Taiwan+ 43.6% (2023-2027F) - Japan

V-Liver
US$3.9bn (2027F)

Increasing digital natives

Rise of digital media platforms
leading to a positive viewing
experience with technology+ 41.2% (2023-2027F) - Japan

Increasing awareness globallytowards the Asia market

Live streaming
US$7.8bn (2027F)+ 11.2% (2023-2027F) - Taiwan+ 22.0% (2023-2027F) - Japan+ 19.2% (2023-2027F) - SEA

Emergence of popular artists
using social media platforms

Live streaming and gaming
industry – major growth driversof media and entertainment

Confidential
Source: (1) Frost & Sullivan IMR Report 2023. Total addressable market for Live commerce relates to Japan and Taiwan, V-Liver relates to Japan, and Live streaming relates to Japan,Taiwan Iand
Southeast Asia (including Indonesia, Malaysia, Singapore, Philippines and Thailand).

15

Our Competitive Advantage

16

Value chain & value proposition

Content
Production &Development

Content
Distribution &Delivery

Content
Acquisition &Processing

Content
Consumption

Monetisation: Virtual gifts, live commerce, subscription plans& digital advertisements.

1717LIVE ecosystem

UsersStreamers

18End-to-end talent management

19

The virtuous cycle of “online x offline event”
Events drive monetisation and fan engagement cycle

Sengoku Event 2023 (戦国時代 × 花の慶次)

20Psychology of live streams and its audience

What entices users to watch live streams?
1

2

Leverages the power of emotion••

Evokes strong emotion (suspense, excitement, sentimental)
Ability to create vivid memories as emotions are a psychologicalplay

Allows for Synchronous Communication

Key Motivators
oo

3

Gen Z population’s affinity with interactive video
streamingoo4Growth of fandom cultureo••Live streams are a powerful antidote tosocial isolation
Promotes a sense of belonging andsocial connection
Participation in a sub-culture
Coping mechanisms – provides a senseof escapism and catharsis
Information seeking

Idol support and fan clubs
Promotes sense of belonging and social connection

21

Growth drivers guided by opportunities

Live Commerce

V-Livers

22

Diversified growth drivers: V-Liver

2

Organic V-Livers

1 V-Liver opportunityJapan(By total revenue, US$mn)

3,865

Murayuki
Self-grown organic V-Liver since Nov 2018+41.2%
2023-27F
CAGR

3Proprietary V-Liver IPs

Strong growthmomentum inV-Liver business1
Rapidly growing
V-Liver community~2k6.5x

V-LiverMAS

YoYincrease

Expanding
17LIVE fan community~75k2.1x

V-LiverMAU

YoYincrease

973

2023F

Rapid growth ofV-Liver engagement

2027F

BUSHILIVE
5 proprietary V-Liver IPs introduced in Jul 2023

~30k

2.7x

V-Liverspenders

YoY
increase

Source: (1) Frost & Sullivan IMR Report 2023. Average MAS, MAU, and monthly spenders for 2Q 2023. Increase indicates YoY increase compared with 2Q 2022.

Confidential I

23

Financial Overview

24

FY2023 Group Financials

Key takeaways:(in US$’000)

FY2023
ActualShare-based
payment

De-SPAC

Revaluation

FY2023Adjusted

FY2022
ActualFY2022Adjusted

Variance%Variance

Operating revenue

278,927000

278,927

363,718

363,718(84,791)-23.3%

Operating income

13,7501,609

00

15,35910,124

10,964

4,395

40.1%

EBITDA

18,3691,609

00

19,97815,01615,856

4,122

26.0%

(247,915)

1,609

11,609245,681

10,984(51,017)

5,683

5,301

93.3%

Net income

35.8% increase in operating income of US$13.7 million as compared to US$10.1 million in FY2022• Attributable to effective cost discipline and economies of scale• Heightened focus on returns on investment
26% increase in adjusted EBITDA to US$20 million• Impacted by increased operating income
Cash and Cash equivalents at US$102.7 million with no outstanding borrowings• Healthy balance sheet• Improved liquidity to execute on growth drivers

25

FY2023 Group Financials

Achieved higher adjusted operating income, EBITDA, and net income withenhanced profitability.
Adjusted operating income (*1)(in USD million, % of revenue)

Adjusted EBITDA (*2)(in USD million, % of revenue)

Adjusted net income (*3)(in USD million, % of revenue)

+26%

+40%

+93%

Margin%:

3.0%

5.5%

Margin%:

4.4%

7.2%

Margin%:

1.6%

3.9%

(*1) Adjusted operating income = Operating income + Share-based payment(*2) Adjusted EBITDA = Operating income + Depreciation & Amortisation + Share-based payment(*3) Adjusted net income = Profit/loss for the year + Share-based payment + De-SPAC related expense ± Revaluation gain/loss on financial liabilities

26FY2023 Group Financials

SGX listing significantly enhanced health of balance sheet. Improved
liquidity position allows critical navigation in rapidly evolving market.
Cash and cash equivalents(in USD million)

Current assets(in USD million)

1.8x
2.6x

Current liability(in USD million)

-75%

27

FY2023 Group Financials

Improving margins across all segments, driven by new businesses suchas OrderPally, 17LIVE’s live commerce service.
Livestreaming segment profit margin

Others segment profit margin (*)

12.1%
7.3%

10.3%

2022

2022

2023

2023

-14.5%28*Others include live-commerce (OrderPally, HandsUp), Wave.

Thank you29