Investor Presentation December 2019 Safe Harbor Statement This - - PowerPoint PPT Presentation
Investor Presentation December 2019 Safe Harbor Statement This - - PowerPoint PPT Presentation
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
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Safe Harbor Statement
This presentation contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts are forward-looking statements. Examples of forward-looking statements include:
- statements about IDW Media Holdings’ future performance;
- projections of IDW Media Holdings’ results of operations or
financial condition;
- statements regarding IDW Media Holdings’ plans, objectives, or
goals, including those relating to its strategies, initiatives, competition, acquisitions, dispositions, and/or its products. Words such as "believe," "anticipate," "plan," "expect," "intend," "target," "estimate," "project," "predict," "forecast,” "guideline," "aim," "will," "should," “likely,” “continue,” and similar expressions are intended to identify forward-looking statements but are not the exclusive means
- f 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. Forward-looking statements are based on IDW Media Holdings’ current expectations, estimates, and assumptions and because forward-looking statements address future results, events, and conditions, they, by their very nature, involve inherent risks and uncertainties, many of which are unforeseeable and beyond IDW Media Holdings’ control. Such known and unknown risks, uncertainties and other factors may cause IDW Media Holdings’ actual results, performance, or other achievements to differ materially from the anticipated results, performance or achievements expressed, projected, or implied by these forward-looking statements. Forward-looking statements speak only as of the date they are made and are statements of current expectations concerning future results, events and conditions and IDW Media Holdings is under no obligation to update any of the forward-looking statements, whether as a result
- f new information, future events or otherwise.
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1 Share price at market close on November 29, 2019 2 As of December 1, 2019
Market Snapshot
Sectors Media, Publishing, Tourism Ticker OTC: IDWM Share Price1 $8.00 Shares Outstanding2 7.4 million Market Cap1,2 $60 million Insider Ownership2 49% Institutional Ownership2 34%
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1999
Founding of IDW (“Idea and Design Works”) the predecessor to IDW Publishing (IDWP)
Milestones
2000
IDT Corporation (IDT) acquires CTM
2007
IDT acquires IDWP
2014
IDWP acquires assets of Top Shelf Productions
2015
SyFy Orders Wynonna Earp
2015
Company launches IDW Entertainment (IDWE) division and creates Holdings (IDW)
2016
March: Book Three becomes the first graphic novel to receive the National Book Award
2016
Netflix and BBC America Order Dirk Gently’s Holistic Detective Agency
2018
Netflix orders October Faction and V Wars
2018
Netflix orders Locke & Key straight to series
2018
Wynonna Earp wins People’s Choice Award
2019
IDWP earns 4 Eisner Awards
2019
Rights offering completed
2016
Variety names Wynonna Earp a “Best New Show”
2016-2019
IDWE, utilizing IDWP content, produces five shows appearing on Netflix, SyFy and AMC
2019
SyFy Orders Fourth Season of Wynonna Earp
2019
IDWP publishes George Takei’s non-fiction NYT best seller - They Called Us Enemy
2019
Launch of V Wars on Netflix
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Divisions of IDW Media Holdings (IDWM)
Franchise Monetization
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Allan Grafman
New Board Member (May 2019)
Former President, Archie Comics EVP & CFO of Hallmark Entertainment
Chris McGurk
New Board Member (Dec 2019)
Chairman & CEO Cinedigm Digital Cinema Former Vice Chair & COO of MGM
Management Team
Chris Ryall
President, Publisher and Chief Creative Officer, IDW Publishing
15+ years at IDW Publishing
Lydia Antonini
President, IDW Entertainment
15+ years at Warner Brothers; Xbox
Marc Knoller
Chief Executive Officer, CTM
20+ years CTM; IDT
Ezra Rosensaft, CFA
Chief FInancial Officer
15+ years at HBO and KPMG
Howard Jonas
Chairman & Chief Executive Officer
Newly Appointed CEO of IDW Media Holdings
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- 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
IDW ATTRACTIONS: Distributor of Visitor and Tourist Information
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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
Publishing Business
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Entertainment Business
Strategy
- Create 360° franchises to holistically pursue revenue opportunities
Tactics
- Mine and develop IDWP’s content library through digital media
- Cultivate fandom to drive:
▪ direct to consumer merchandising of physical and digital goods ▪ experiences and events
Initial Results
- Produced 5 global series for Netflix, BBC America, and SYFY
- Renewed seasons for franchises with active fanbase
Additional Growth Opportunities
- Build out feature film presence
- Extend franchise into merchandise and ancillary opportunities
- Target interactive platforms and mobile games
Netflix
BBC America
SYFY
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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
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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
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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
… and IDW Is Poised to Win
V Wars Trailer
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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.
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Current Projects/Pipeline
Current TV Assets Distributor- Relationship Status Current IDWE Revenue Drivers Future Upside
Wynonna Earp
SyFy Domestic, international sales S1, S2, S3: completed. S4 principal photography commencing Q1 2020 Premiering Q3 2020 Wholly owned distribution rights to all seasons Incremental Int’l, merchandising, licensing
October Faction
Netflix: Worldwide In post production, premiering in 2020 IDW receives licensing fee Potential future seasons, merchandising
V-Wars
Netflix: Worldwide Premiering December 5, 2019 IDW receives licensing fee Potential future seasons, merchandising
Locke & Key
Netflix: Worldwide Principal photography commenced in CY 2019. Premiering in 2020 Production services fees for each season Potential future seasons, merchandising
Dirk Gently
BBCA, AMC licensing Domestic, Netflix licensing Int’l Option for additional seasons not exercised Back end participation
- ngoing
Exploring derivative productions
Assumptions
- Premium cable and streaming dramas @ $3 M - $5 M per episodic hour
- Kids and youth programming landscape increasingly vibrant
- Significant production budget increases in recent years*
IDW production goals
- Produce and sell new shows on a cost plus basis + some license-fee deals for smaller productions
- Consistent IP from IDW Publishing leading to multi-season shows with escalators
Economics Growth Model
ILLUSTRATIVE ”NEW” SHOWS SHOW 1 SHOW 2 SHOW 3 SHOW 4 ANNUAL TOTAL
Production Budget / Season $50M $20M $20M $10M IDW’s “Plus” @ 10 % = SHOW EBITDA $5M $2 M $2 M $1M $10M
* Source: Variety Budget Breaking Points
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Path to Sustained Profitability
Fiscal Discipline
- Streamline IDW
Publishing and leverage shared resources for IDW Entertainment
- Significantly reduce
annual overhead Strong Balance Sheet
- Raised $23.5 million in
June ‘19 rights offering
- LT debt paid down from
$21 million to $9 million. Balance due 2020 and beyond
- NOL carryforward of $13
million
- IDWE: Produce 3 to 4
TV series annually, financed via models that minimize downside risk and generate profitable contribution margins
- IDWP: Return to
profitability in 2020
- CTM: Continued
profitability Financial Targets
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Summary
Vibrant Landscape
Intensifying competition among domestic (AT&T/ Warner, Disney, Fox, Hulu) international (Canal Plus, Sky) and global OTT streaming platforms (e.g., Amazon, Netflix) is driving unprecedented demand for strong programming and story-telling
Strategic Positioning
Robust growth of controlled properties with pipeline for monetization through TV, film and
- ther mediums
Execution Capability
Experienced management team, solid balance sheet and track record of successfully pitching content to major distributors
Thank you!
investor.relations@idwmh.com