Investor Presentation December 2019 Safe Harbor Statement This - - PowerPoint PPT Presentation

investor presentation december 2019 safe harbor statement
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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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Investor Presentation December 2019

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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

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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

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Thank you!

investor.relations@idwmh.com