Investor Presentation December 2019
Safe Harbor Statement This presentation contains statements that are, or may be considered Forward-looking statements are based on IDW Media Holdings’ current expectations, estimates, and assumptions and because to be, forward-looking statements. All statements that are not historical facts are forward-looking statements. forward-looking statements address future results, events, and conditions, they, by their very nature, involve inherent risks and Examples of forward-looking statements include: uncertainties, many of which are unforeseeable and beyond IDW Media Holdings’ control. Such known and unknown risks, • statements about IDW Media Holdings’ future performance; uncertainties and other factors may cause IDW Media Holdings’ actual results, performance, or other achievements to differ • projections of IDW Media Holdings’ results of operations or materially from the anticipated results, performance or achievements expressed, projected, or implied by these forward-looking financial condition; statements. • statements regarding IDW Media Holdings’ plans, objectives, or goals, including those relating to its strategies, initiatives, Forward-looking statements speak only as of the date they are made competition, acquisitions, dispositions, and/or its products. and are statements of current expectations concerning future results, events and conditions and IDW Media Holdings is under no obligation Words such as "believe," "anticipate," "plan," "expect," "intend," "target," "estimate," "project," "predict," "forecast,” "guideline," "aim," "will," to update any of the forward-looking statements, whether as a result of new information, future events or otherwise . "should," “likely,” “continue,” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Readers are cautioned not to place undue reliance on these forward-looking statements and all such forward-looking statements are qualified in their entirety by reference to the following cautionary statements. 2
Market Snapshot Sectors Media, Publishing, Tourism Ticker OTC: IDWM Share Price 1 $8.00 Shares Outstanding 2 7.4 million Market Cap 1,2 $60 million Insider Ownership 2 49% Institutional Ownership 2 34% 1 Share price at market close on November 29, 2019 2 As of December 1, 2019 3
Milestones 2019 Rights offering completed 1999 2016-2019 Founding of IDW IDWE, utilizing IDWP 2019 (“Idea and Design Works”) the content, produces five predecessor to IDW Publishing (IDWP) shows appearing on Netflix, IDWP earns SyFy and AMC 4 Eisner 2014 2015 Awards IDWP acquires Company launches IDW assets of Entertainment (IDWE) 2000 Top Shelf division and creates IDT Corporation (IDT) Productions Holdings (IDW) acquires CTM 2016 2018 2019 2007 Netflix and BBC Netflix orders SyFy Orders IDT acquires IDWP America Order October Faction Fourth Season of Dirk Gently’s Holistic and V Wars Wynonna Earp 2019 Detective Agency 2018 IDWP publishes George Takei’s 2016 Netflix orders non-fiction NYT best Locke & Key Variety names Wynonna Earp a seller - They Called Us straight to series “Best New Show” Enemy 2018 2016 Wynonna Earp wins March: Book Three becomes the first 2019 People’s Choice Award graphic novel to receive the Launch of National Book Award 2015 V Wars on Netflix SyFy Orders Wynonna Earp 4
Divisions of IDW Media Holdings (IDWM) Franchise Monetization 5
Management Team Allan Grafman New Board Member (May 2019) Howard Jonas Ezra Rosensaft, CFA Former President, Archie Comics Chairman & Chief Executive Officer Chief FInancial Officer EVP & CFO of Hallmark Entertainment Chris McGurk Newly Appointed CEO of IDW Media Holdings 15+ years at HBO and KPMG New Board Member (Dec 2019) Chairman & CEO Cinedigm Digital Cinema Former Vice Chair & COO of MGM Lydia Antonini Chris Ryall Marc Knoller President, IDW Entertainment President, Publisher and Chief Chief Executive Officer, CTM Creative Officer, IDW Publishing 15+ years at Warner Brothers; Xbox 20+ years CTM; IDT 15+ years at IDW Publishing 6
IDW ATTRACTIONS : Distributor of Visitor and Tourist Information • Leading provider of out-of-home advertising to tourists and travelers. Brochure and digital displays at over 19,000 strategic locations in 26 states and Canada • Industry consolidation opportunity • Ticketing portal and platform partnerships/revenue share • Strategic strengths: ▪ Trusted Brand: Leverages long-term relationships with leaders in the tour and attractions industry ▪ Geographic Moat: Industry leader in East and much of Midwest and in Ontario, Canada ▪ Synergistic Digital Offering: Touchscreen network deployed in key markets 7
Publishing Business Overview • One of the foremost independent publishers of comics and graphic novels • Publishes IDW-owned and creator-owned properties including Locke & Key , Onyx and Beauty of Horror • Publishes comic franchises for Lucasfilm, Hasbro, Nickelodeon, Disney, Paramount, Sony, Universal, Marvel, Netflix, etc. • Publishing 30+ new IP “franchises” annually Strategic Assets • Owns / controls media and ancillary rights to library of genre-diverse IP • Established relationships with A-list content creators • Creator-friendly reputation in the industry Critical Acclaim • George Takei’s They Called Us Enemy, an Amazon Best Book of 2019 • Industry recognition - Four Eisner awards (2019) • John Lewis’s March , first graphic novel to win a National Book Award 8
Entertainment Business Strategy • Create 360° franchises to holistically pursue revenue opportunities Tactics • Mine and develop IDWP’s content library through digital media Netflix • Cultivate fandom to drive: ▪ direct to consumer merchandising of physical and digital goods ▪ experiences and events BBC America Initial Results • Produced 5 global series for Netflix, BBC America, and SYFY • Renewed seasons for franchises with active fanbase SYFY Additional Growth Opportunities • Build out feature film presence • Extend franchise into merchandise and ancillary opportunities • Target interactive platforms and mobile games 9
IDW 360° Franchise Monetization IDW 360 develops the overall franchise footprints of IDW Publishing’s premier brands IDW 360 pursues monetization opportunities across all screens and platforms including: ● Film ● TV ● Comics ● New Media / Virtual Reality ● Online / Mobile ● Tabletop games ● Merchandise ● Video games ● Immersive fan experiences and events 10
It’s a Content Arms Race... Escalating demand for IP and video content propelled by proliferation of OTT streaming platforms competing for expanding global audience Platform Signature Franchises Netflix Stranger Things , The Crown , Black Mirror Disney+ Film library from Marvel, Star Wars, Pixar + original content like The Mandalorian , & The Falcon and the Winter Soldier Hulu The Handmaid’s Tale , Little Fires Everywhere ; Adult, edgier fare, FX Networks to produce OC AppleTV+ Original content: The Morning Show , See & Masters of the Air Amazon (Prime Video) Jack Ryan , The Marvelous Mrs Maisel , Good Omens , Lord of the The Rings HBO Max Game of Thrones , Euphoria, The Flight Attendant Peacock (Comcast) The Office , Frasier , and Cheers , NBC, Universal CBS All Access Star Trek Discovery , The Twilight Zone 11
… and IDW Is Poised to Win Integrated Franchise Development Strategy • IDWP’s legacy library supplemented by 30+ new titles annually drives digital media opportunities with streaming players • 360 franchise monetization extends titles through merchandising, mobile games and other ancillary revenue streams Robust Media Development Pipeline • Four series currently in production / airing • 30 franchises currently in television pipeline portfolio V Wars Trailer 12
Business Models IDWE is transitioning to de-risked production financing to capture predictable returns near term while retaining upside potential: COST PLUS Primarily offered by global OTT & streamers, covers production budget plus a percentage (typically 10%-20%) - producer retains some ancillary and merchandising rights, ON BUDGET PRODUCER FEES Fees paid out on the production budget of a project; often includes a share of back end profits and limited merchandising rights. STUDIO The proceeds from one or more network sales fund the production of a show. Studio generally retains control of additional global territories and most merchandising rights. 13
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