TSX-V: LM | OTCQB: LMDCF JUNE 2017 - - PowerPoint PPT Presentation

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TSX-V: LM | OTCQB: LMDCF JUNE 2017 - - PowerPoint PPT Presentation

TSX-V: LM | OTCQB: LMDCF JUNE 2017 PROPRIETARY - LINGO MEDIA 1 CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION This presentation has been prepared by Lingo Media Corporation


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TSX-V: LM | OTCQB: LMDCF

JUNE 2017 PROPRIETARY - LINGO MEDIA 1

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This presentation has been prepared by Lingo Media Corporation (“Lingo Media” or the "Company") exclusively for informational purposes, and does not constitute an offer to sell or the solicitation of an offer to buy any securities. This presentation includes "forward-looking" statements as defined in section 27A of the U.S. Securities Act of 1933 and section 21E of the U.S. Securities and Exchange Act of 1934 and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). Forward-looking statements often, but not always, are identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "targeting" and "intend" and statements that an event or result "may", "will", "should", "could", or "might"

  • ccur or be achieved and other similar expressions. The forward-looking statements that are contained in this presentation are based on various

assumptions and estimates by Lingo Media and involve a number of risks and uncertainties. As a consequence, actual results might differ materially from results forecast or suggested in these forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Lingo Media to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements in this presentation. Factors that could cause the actual results to differ include: risks relating to inability to obtain required regulatory approvals, market conditions and general business, economic, competitive, political and social conditions. These statements are based on a number of assumptions, including assumptions regarding general market conditions, timing and receipt of regulatory approvals, the ability of Lingo Media and other relevant parties to satisfy regulatory requirements, the availability of financing for proposed transactions and programs on reasonable terms and the ability of third-party service providers to deliver services in a timely manner. Although Lingo Media has attempted to identify important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements. Readers of this presentation are encouraged to review the “risk factors” set out in the Company’s 20-F filed with the U.S. Securities and Exchange Commission or the Company’s most recently filed Management Discussion & Analysis which can be found on the Company’s profile at www.sedar.com or www.sec.gov Forward-looking statements contained herein are made as of the date of this presentation and Lingo Media disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on any forward-looking statements. In preparing this presentation, the Company has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to it or otherwise reviewed by it. The information contained in this document has been taken from sources deemed as reliable. The Company does not represent that such information is accurate or complete and it should not be relied on as such.

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION

JUNE 2017 PROPRIETARY - LINGO MEDIA

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1.6 BILLION

2 PEOPLE LEARNING ENGLISH GLOBALLY

ENGLISH LANGUAGE LEARNING PRODUCTS AND SERVICES ARE A $56.3

BILLION

1

GLOBAL MARKET

1 Source: Ambient Insight | 2 Source: British Council

*All figures denominated in US Dollars

THE MARKET

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EXPENDITURES ON DIGITAL

ENGLISH LANGUAGE LEARNING

PRODUCTS WILL ACCOUNT FOR

$2.5 BILLION OF THE GLOBAL

MARKET IN 20171

1 Source: GSV Advisors

THE MARKET (CONT’D)

*All figures denominated in US Dollars

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OUR TECHNOLOGY IS POWERED BY A

SOFTWARE-AS-A-SERVICE (SAAS)

LEARNING PLATFORM WITH

2,000+ HOURS OF MATERIALS AND 1,000+ HOURS OF LESSONS

CORPORATE OVERVIEW

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PROPRIETARY AND STATE-OF-THE-ART LEARNING MANAGEMENT SYSTEM COMPLETES THE SUITE OF PRODUCTS AND ALLOWS US TO MARKET AND SELL OUR PRODUCTS TO:

ACADEMIC INSTITUTIONS GOVERNMENTS CORPORATIONS

CORPORATE OVERVIEW

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PRINT-BASED PUBLISHING ONLINE TRAINING & ASSESSMENT

&

STRATEGIC FOCUS

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PRODUCT LINE

  • WINNIE’S WORLD
  • ENGLISH ACADEMY
  • SCHOLAR
  • CAMPUS
  • ENGLISH FOR SUCCESS
  • MASTER
  • BUSINESS

JUNE 2017 PROPRIETARY – LINGO MEDIA

ELL TECHNOLOGIES

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STUDENT DASHBOARD

LEARNERS MANAGE THEIR COURSES, MONITOR THEIR PROGRESS AND SCORES, AND ACCESS ELL TECHNOLOGIES’ SPECIALIZED LEARNING TOOLS FROM THE STUDENT DASHBOARD. THE TEACHER DASHBOARD ENABLES TEACHERS TO MANAGE THEIR CLASSES, VIEW THEIR SCHEDULE AND INTERACT WITH STUDENTS THROUGH THE LEARNING MANAGEMENT SYSTEM (LMS).

TEACHER DASHBOARD NEW TECHNOLOGY & DESIGN

ELL TECHNOLOGIES

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ANALYZE PRONOUNCIATION AND EXERCISE REAL LIFE SCENARIOS

THE STUDIO SPEAK2ME SPEECH RECOGNITION

ELL TECHNOLOGIES

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THE STUDIO PROVIDES LEARNERS WITH

THOUSANDS OF WORDS AND PHRASES

USERS RECORD AND COMPARE THEMSELVES WITH NATIVE

SPEAKERS UNTIL THEY ARE

PROFICIENT WITH THEIR PRONOUNCIATION FEEDBACK APPEARS AS

COLOUR-CODED

ELL TECHNOLOGIES

SPEECH RECOGNITION – THE STUDIO

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✓ SELF STUDY OR TEACHER LED COURSES ✓ SKILLS DEVELOPMENT (LISTENING, READING, SPEAKING, WRITING) ✓ ASSESSMENTS - PLACEMENT AND ACHIEVEMENT TESTS ✓ HELP & LEARNER’S GUIDE ✓ ADVANCED LEARNING MANAGEMENT SYSTEM ✓ VARIOUS DELIVERY OPTIONS - ONLINE, LAN, CD ✓ SCORM COMPLIANT CONTENT (SHARABLE CONTENT OBJECT REFERENCE MODEL) ✓ EXTENSIVE DIGITAL LIBRARY

ELL TECHNOLOGIES

PRODUCT HIGHLIGHTS

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ELL TECHNOLOGIES

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LIBRARY

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LINGO MEDIA’S ELL TECHNOLOGIES & eDISTRIBUTION SAS AWARDED MULTI-MILLION DOLLAR CONTRACT IN COLOMBIA, SOUTH AMERICA

  • DEVELOPING DIGITAL CONTENT LIBRARY TO SENA

(COLOMBIA’S NATIONAL TRAINING SERVICE)

  • MAJOR MILESTONES:

✓ CORPORATE MILESTONE (HIGH PROFILE GOVERNMENT CONTRACT PROVIDING RECOGNITION TROUGHOUT LATIN AMERICA) ✓ DISTRIBUTION MILESTONE (FIRST TRANSACTION WITH eDISTRIBUTION ) ✓ REVENUE MILESTONE (MULTI-MILLION DOLLAR, HIGH-MARGIN CONTRACT) ✓ PRODUCT DEVELOPMENT MILESTONE (SELF FUNDING DEVELOPMENT OF THE LARGEST DIGITAL CONTENT LIBRARY IN THE WORLD)

SENA MILESTONE CONTRACT

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TELEFONICA AND LINGO MEDIA ENTER INTO A DISTRIBUTION PARTNERSHIP FOR PERU

  • Distribution partnership in Peru with

Telefónica Group.

  • Telefónica is the dominant telecom player

to Peru’s 32 million people, providing connectivity for the education market as well as to government and corporate customers.

  • Telefónica Educación Digital is expected to

generate significant sales contracts in Peru.

  • Secured first two Telefónica contracts with

Universidad de San Martín de Porres and CERTUS.

TELEFONICA PARTNERSHIP

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GALE CENGAGE AND LINGO MEDIA ENTER INTO GLOBAL DISTRIBUTION PARTNERSHIP

  • Global distribution partnership with Gale, a division of Cengage

Learning.

  • Cengage is one the leading education publishers in the world with

presence in over 40 countries, $1.5 billion in revenues and 5,500 employees

  • ELL Technologies’ Scholar software to be marketed to Gale’s vast

network of college, university, private school and public libraries throughout Europe, Asia, Australasia, Africa and the Middle East.

  • Gale, which has sales team of hundreds servicing existing

relationships in over 25 countries, will now add Scholar program to their offering

  • Licensing arrangement with Gale will generate low cost and high

margin business

  • Currently in trials with hundreds of libraries and academic

institutions

GALE CENGAGE PARTNERSHIP

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52-WEEK TRADING RANGE:

CURRENT PRICE (5/31/2017):

SHARES ISSUED & OUTSTANDING: SHARES FULLY DILUTED:: MARKET CAP: % HELD BY INSIDERS:

TSX-V: LM OTCQB: LMDCF

$0.24 (CAD$) / $0.16 (USD$) $0.19 - $1.19 (CAD$) 35.5 MILLION 37.6 MILLION $8.53 MILLION (CAD$) 20.17% SECTOR/INDUSTRY: TECHNOLOGY/EDUCATION SERVICES TRADING SYMBOLS:

FINANCIAL SNAPSHOT

REVENUE(TTM): $3.04M EBITDA(TTM): $1.28M

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Stock Options: 2,369,500 ($0.13 - $0.24)

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FINANCIAL HIGHLIGHTS

For the period ended March 31, 2017: ✓Revenue (TTM) totaled $3.04M; ✓NI (TTM) totaled $17,362; ✓EBITDA (TTM) totaled $1.28M; ✓Cash as at March 31, 2017 totaled $300,042 as compared to $84.303 as at December 31, 2016; ✓Loans payable of $395,000 was repaid in full on April 30, 2017

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MICHAEL KRAFT – PRESIDENT & CEO Visionary and entrepreneur with more than 25 years of experience in sales, marketing and corporate management, with a strong record of success in both public and private

  • companies. Under Mr. Kraft’s stewardship, Lingo Media expanded its reach into the English

language learning education market through a series of strategic acquisitions and transitioned from print-based publishing into online training. GALI BAR-ZIV – CHIEF OPERATING OFFICER Developed the brand strategies that grew product sales by 700% in his prior position. Turned around a $300 Million operating division of Fairfax Financial. KHURRAM QURESHI – CHIEF FINANCIAL OFFICER Chartered Accountant with more than 25 years experience in the field of accounting and corporate finance. Held senior positions with several small to medium sized public companies, and was a key member of several merger and acquisition teams. LAURENT GLORIEUX – SENIOR SALES DIRECTOR Former Sales Director for Rosetta Stone led enterprise and education sales team in Latin America and the Caribbean achieving 50%+ sales increase in just one year. In 2007, he was Sales Director at Tell Me More S.A., a global language learning company acquired by Rosetta Stone in 2014.

MANAGEMENT TEAM

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MICHAEL KRAFT THE HONOURABLE JERRY S. GRAFSTEIN, Q.C. Co-Founder of a range of media companies, focused in broadcasting, cable, telecom, and publishing in Canada, Latin America, the UK and the US. He has served as an advisor to several key government ministries, including transportation, external affairs, consumer and corporate affairs, and justice.

GERBRAND NIJMAN

Chief Financial Officer and Executive Director of Global Telecom Holding S.A.E., (an Egypt listed company and a member of the VEON Group, a NASDAQ and Euronext Amsterdam listed global provider of connectivity, serving more than 235 million customers) who have been a significant shareholder of Lingo Media since 2008. MARTIN BERNHOLTZ, BBA, CA Chief Financial Officer of Kerbel Group Inc. with extensive business experience in finance, real estate, emerging growth companies and public markets. TOMMY WEIBING GONG Founder of the energy saving clean tech leader Polar Bear Energy Inc., Chairman of Shanghai Green Town Real Estate Development Co. Ltd. and Zysteq North America Corporation both focused in real estate development in China.

BOARD OF DIRECTORS

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Why Lingo Media?

  • High-margin SaaS model within EdTech space with stable,

profitable legacy print revenue

  • Emerging market opportunity currently within Latin/South

America with growth opportunities in Asia

  • Proprietary technology
  • Developing the largest digital English learning library in the world

Fundamentals:

  • $8.53M valuation currently trading at 7x TTM EBITDA
  • No debt, cash flow positive, EBITDA positive, no need for

additional capital

  • 20% insider ownership

INVESTMENT HIGHLIGHTS

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mkraft@lingomedia.com (416) 927-7000 ext. 23 www.lingomedia.com

TSX-V: LM | OTCQB: LMDCF

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