INVESTOR PRESENTATION LD Micro September 2020
August 00, 2020 Safe Harbor Statement
This presentation contains statements that are, or may be Forward-looking statements are based on IDW Media Holdings’ considered to be, forward-looking statements. All statements current expectations, estimates, and assumptions and because 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 • projections of IDW Media Holdings’ results of operations Holdings’ actual results, performance, or other achievements or financial condition; to differ materially from the anticipated results, performance or achievements expressed, projected, or implied by these • statements regarding IDW Media Holdings’ plans, objectives, forward-looking statements. or goals, including those relating to its strategies, initiatives, competition, acquisitions, dispositions, and/or its products. Forward-looking statements speak only as of the date they are made and are statements of current expectations concerning Words such as "believe," "anticipate," "plan," "expect," "intend," future results, events and conditions and IDW Media Holdings "target," "estimate," "project," "predict," "forecast,” "guideline," is under no obligation to update any of the forward-looking "aim," "will," "should," “likely,” “continue,” and similar expressions statements, whether as a result of new information, future are intended to identify forward-looking statements but are not events or otherwise. 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. Welcome to IDW
IDW creates and publishes comics and graphic novels across genres from original IP for our target audiences
We exponentially grow these story brands through entertainment channels including series produced and distributed for leading streaming services
We also develop and distribute comics and games with IP licensed from leading media brands Market Snapshot
Sectors Media, Entertainment, Publishing
Ticker OTC: IDWM
Share Price (8/14/2020) $3.50
Shares Outstanding (7/31/2020) 9.9 million
Market Cap (8/14/2020) $34.7 million
Insider Ownership (7/31/2020) 23%
Institutional Ownership (7/31/2020) (1) 35%
Cash (4/30/2020) $15.9 million
Revenue (TTM ended 4/30/2020) $71.1 million
(1) Shares that are directly or beneficially held by the IDW’s executive officers or members of its Board of Directors Board and Management Leadership
Allan Grafman Howard Jonas Chris McGurk Board Member Chairman Board Member Former President, Archie Comics; Founder Chairman & CEO of Cinedigm Digital Cinema; EVP & CFO of Hallmark Entertainment Former Vice Chair & COO of MGM
Ezra Rosensaft, CFA Chief Executive Officer 20 years at HBO and KPMG
Jerry Bennington Rebekah Cahalin Lydia Antonini President & Publisher, IDW Publishing EVP Operations, IDWP + IDWE President, IDW Entertainment 12+ years with Upper Deck Company; 12+ years with IDW 15+ years as a Producer and Executive at 3 Point Entertainment Warner Brothers; Xbox Home to Renowned and Up & Coming Creators
Delilah S. Dawson Alan Moore Kim Dwinell Marieke Nijkamp Kevin Eastman Steve Niles Joe Hill Stan Sakai Stephen King Mairghread Scott Hon. John Lewis George Takei AJ Mendez Bernie Wrightson Ramping Up
1999-2017 2018-2019 2019-2020
IDW founded (1999) V-Wars Debuts on Netflix October Faction Debuts on Netflix IDWP releases comic ‘30 IDWP releases George Locke & Key Debuts on Days of Night’ (2002). Basis Takei’s “They Called Us Netflix - Netflix Top 10 Show for subsequent hit movie Enemy” S2 of Locke & Key ordered (2007). Wynonna Earp (SYFY) wins Wynonna Earp S4 premieres IDT acquires IDW (2007) People’s Choice Award on SYFY IDWP announces Smithsonian IDT spins off IDW as CTM Institute educational Media (2009) initiative March (Book 3) wins a IDWP launches Spanish National Book Award (2016) language initiative Leading Independent Publisher of Comics and Graphic Novels
Fourth largest direct market publisher of comics and graphic novels.* Published over 400 comics and 170 graphic novels in 2019.
Titles routinely garner industry’s most prestigious awards
Long-standing relationships with renowned authors and illustrators
Robust addressable markets
Comics and games for leading media brands
Promising growth initiatives
* In USA. Diamond Comic Distributors: 2019 year-end market share report Leader in Critical Acclaim
They Called March Trilogy Artist’s Us Enemy Honorable John Editions George Takei, Lewis, Andrew Scott Dunbier Justin Eisinger, Aydin, and Nate Steven Scott, and Powell Harmony Becker
Winner, APALA Award for Winner, Robert F. Kennedy Winner, Eisner Award Young Adult Literature Book Award (2014) (8-Time Winner) (2020) Winner, National Book Winner, Harvey Award Winner, Eisner Award (6-Time Winner) Award (2016) (2020) Winner, Coretta Scott King Book Award (2017) Comics and Games for Leading Media Brands Leveraging our distribution capabilities Robust Opportunities in Primary Addressable Markets
$1.2 billion comics and graphic novels market 1 Expanding in high growth kids genre Market growth 11% (2019/2018).1
$7.2 billion board games market Focus on $355 million non-collectible miniatures segment 2 Segment CAGR of 25%2
(1) ICv2-Comichron Comic Sales Report (2019); (2) ICv2 Growth Initiatives Expanding to new markets New Audiences Partners Ancillary Offerings
Spanish language The Smithsonian Merchandise initiative Other offerings Library and for fandoms educational markets Entertainment Business
The Strategy Challenges Produce TV shows, films & digital ⬥ Ability to scale in success content from IDW Publishing’s ⬥ Cash-flow favorable deal economics content library
Initial Results Additional Growth Opportunities Produced 5 global series for Netflix, ⬥ Build out feature film presence SyFy and BBC America ⬥ Target interactive platforms & mobile games ⬥ Genre expansion - Kids, Family & Animation The Content Arms Race Driving Massive Investment in IP and Video Content Content Spend By Service* For 2019, in billions
* Variety Intelligence Platform On Budget Producer Fees Fees paid on project production budget De-Risked Often includes a share of back-end profits and limited Business Models merchandising rights For Predictable Cash-Flows Cost Plus Primarily offered by global OTT & streamers Covers production budget plus a percentage Producer may retain some ancillary and merchandising rights
Studio Proceeds from one or more network sales fund production Studio generally retains control of global territories and merchandising rights Shows Produced / Distributed
Locke & Key Wynonna Earp October Faction
V Wars Dirk Gently Development Pipeline
Going to market with Managing returning Leveraging current Growth of IP pipeline a powerful line-up series with an TV business to focus from publishing of pitches increased emphasis on film and interactive operations will on franchise growth opportunities generate additional go-to-market pitches Case Studies Leveraging licensed and original intellectual properties for media, comics and games
ORIGINALS/IDW-OWNED IP ORIGINALS/IDW-OWNED IP LICENSED Locke & Key Teenage Mutant Ninja Turtles March By Congressman John Lewis, by Joe Hill from Viacom Andrew Aydin and Nate Powell
2008-2013 - IDW publishes original 2011 - IDW first TMNT comic 2013 - Top Shelf publishes March: 37 comics in six story arcs Book 1, the first volume of the 2011 - IDW begins publishing March trilogy. 2008-2017 - IDW publishes graphic novels comprising Standard and Master collections collected, colorized collections 2015, 2016 - Top Shelf, now an IDW imprint, publishes Books 2&3 2020 - Netflix premier 2016 - Sales of TMNT: Shadows of the Past board game top $1 million 2016 - Top Shelf publishes March 2020 - IDW teams with DC Comics (Trilogy Slipcase Set) for publishing event with Neil 2020 - IDW publishes #100th issue Gaiman’s Sandman Ben & Jerry’s headquarters mural 2020 - Sales of TMNT Adventures devoted to voting rights as 2020 - Netflix orders season 2 City Fall top $800 thousand on portrayed through March Kickstarter Investment Thesis
Proven Original IP Multiple Revenue Streams Robust Growth Potential Development Capability in High Growth Markets
⬥ Robust sources of ⬥ Entertainment industry ⬥ S2 of “Locke & Key” ordered by Netflix original IP: spend for original content (2020) is +$120B/year • IDWP’s historic IP ⬥ IDWE pitching new projects from strong portfolio ⬥ IP monetized across development slate • Creator relationships multiple platforms: • Ongoing publishing - ⬥ Each series typically generates $2-5MM+ 400+ titles per year • Media (original IP) EBITDA/season • Comics & graphic novels ⬥ Three original IP titles • Games ⬥ Games, merchandise, and ancillary premiered in • Merchandise & ancillary platforms provide proven franchises 2019-2020 with ‘blue sky’ potential
Preparing to register with the SEC and up-list to a national stock exchange Thank you!
[email protected] Appendix Balance Sheet IDW Media Holdings, Inc. — Condensed Consolidated Balance Sheet (in millions) P&L
(2)
(1) Adjusted EBITDA is a non-GAAP measure (2) TTM - Twelve months ended April 30, 2020