INVESTOR PRESENTATION DEC 2019 - WOW: TSX-V WOWMF: OTCQX
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WO W : T S X- V
WO W M F : OTC Q X
I N V E S TO R
P R E S E N TAT I O N
D EC 2 0 1 9
Forward-looking statements
Confidentiality, Cautionary Advice and Forward-Looking Statements
Certain statements contained in this presentation constitute "forward-looking information" and "forward-looking statements" (together, "forward-looking statements") within the meaning of applicable Canadian securities laws and are
based on assumptions, expectations, estimates and projections as of the date of this presentation. Forward-looking statements include statements with respect to (i) Wow Unlimited Media Inc.’s (“WOW!” or the “Company”) proposed
operations and growth initiatives for 2019, including the release of anticipated new content and strong growth in both of its operating segments, growth opportunities within the animation production industry; key releases and the
continuation of its long-standing partnership with Mattel; achieving WOW!’s Frederator Network’s objectives of discovering new independent contractors, building its programming initiatives within gaming and refining its offerings in the
United States and Canada, respectively, (ii) WOW!’s 2019 financial outlook, including expectations regarding revenues and EBITDA, and (iii) the market in which WOW! operates and the demand for animation and children’s entertainment
content. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "projected", "forecasts", "guidance", "outlook", "potential", "prospects", "seek", "aim", "strategy" and "targets" or variations
of such words or negative versions thereof and other similar expressions, identify forward-looking statements. Forward-looking statements are based upon management's perceptions of historical trends, current conditions and expected
future developments, as well as a number of specific factors and assumptions that, while considered reasonable by the Company as of the date of such statements, are, in many cases, outside of the Company’s control and are inherently
subject to significant business, economic and competitive uncertainties and contingencies which could result in the forward-looking statements ultimately being entirely or partially incorrect or untrue.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and a number of factors could cause actual events or results to differ materially from the results discussed in the forward-
looking statements. In evaluating these statements, a reader should specifically consider various factors, including the risks outlined herein under the heading "Risk Factors" in the Company’s annual information form for its fiscal year ended
December 31, 2018 and those contained in the Company’s management’s discussion and analysis for the fiscal year ended December 31, 2018, which are available on SEDAR at www.sedar.com, which may cause actual results to differ
materially from any forward-looking statements.
The forward-looking statements contained herein reflect management's current expectations and beliefs and are based upon certain assumptions that management believes to be reasonable based on the information currently available to
management. Such assumptions include, but are not limited to, assumptions regarding: (a) the demand for the Company's products and services and fluctuations in future revenues; (b) sufficiency of current working capital to support future
operating and working capital requirements; (c) currency exchange rates and interest rates; (d) equity and debt markets continuing to provide the Company with access to capital; (e) general economic trends and conditions; (f) the expected
actions of third parties; (g) the Company's future growth prospects and business opportunities; (h) the Company’s ability to anticipate and adapt to changes in technology and product consumption patterns; (i) the Company’s ability to
secure ongoing work-for-service contracts; (j) the Company’s ability to attract qualified personnel; and (k) a stable industry regulatory environment. By their nature, forward-looking statements are subject to inherent risks and uncertainties
that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals
and priorities will not be achieved. Should one or more of the risks or uncertainties identified herein materialize, or should the assumptions underlying the forward-looking statements prove to be incorrect, then actual results may vary
materially from those described herein.
This presentation contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about WOW!’s prospective revenues and EBITDA, all of which are subject to the same assumptions, risk factors,
limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this document was made as of the date of this document and was provided for the purpose of providing further information about WOW!’s future
business operations. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein.
Readers are cautioned not to place undue reliance on forward-looking statements, including FOFI. Except as required by applicable laws, the Company does not intend, and does not assume any obligation, to update the forward-looking
statements, including FOFI, contained herein.
WOW!’s financial disclosure includes non-International Financial Reporting Standards ("IFRS") financial measures such as "Adjusted EBITDA“ and "EBITDA" as supplemental indicators of WOW!’s financial and operating performance. WOW!
believes these supplemental financial measures reflect WOW!’s on-going business in a manner that allows for meaningful period-to-period comparisons and analyses of trends in its business. Accordingly, WOW! believes that such financial
measures may also be useful to prospective investors in enhancing their understanding of WOW!’s operating performance. These non-IFRS measures are not recognized under IFRS and do not have standardized meanings prescribed by IFRS.
Therefore, it is unlikely that these measures will be comparable to similarly titled measures reported by other issuers. Non-IFRS financial measures should be considered in the context of WOW’s IFRS results. WOW! cautions readers to
consider these non-IFRS financial measures in addition to, and not as an alternative for, measures calculated in accordance with IFRS.
WOW! defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization (excluding amortization of investments in film and television properties), adjusted for certain items. Adjusted EBITDA is presented on a basis
consistent with WOW!’s internal management reports. WOW! discloses Adjusted EBITDA to capture the profitability of its business before the impact of items not considered in management's evaluation of operating performance.
The financial statements of WOW! are prepared in accordance with IFRS and are reported in Canadian dollars. All currency amounts in this presentation are expressed in and all references in this presentation to "$" to Canadian dollars,
unless otherwise indicated.
This presentation does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the
securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold
within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration
requirements is available.
WOW: TSXV WOWMF: OTCQX
OBJECTIVE
BUILDING A GLOBAL, ANIMATION FOCUSED ENTERTAINMENT COMPANY
BUSINESS MODEL
CONTENT MEDIA
ANIMATION ORIGINAL OTHER
YOUTUBE PLATFORMS
SERVICES ANIMATION IP
Cover overheads Build hits, profits, Discover talent/IP Build WOW! brands
& generate profits long term value & build audiences globally
WOW: TSXV WOWMF: OTCQX
INVESTMENT
HIGHLIGHTS
Robust demand for animation
from global players
Significant growth within first 3
years; on path to profitability
Growing sales backlog
Top-end clients, partners,
shareholders
Management with proven
global track record
ANIMATION
SERVICES
25+ YEAR TRACK
RECORD
STUDIOS IN
VANCOUVER,
LOS ANGELES
WOW: TSXV WOWMF: OTCQX
“… Castlevania Just Became
ANIMATION IP the Best Videogame
Adaptation of All Time”
POPULAR Source: Paste Magazine (November 8, 2018)
TITLES
Daytime Emmy nominations for:
Outstanding Performer
Outstanding Sound Mixing
Canadian Screen Awards nominations for:
Best Children’s or Youth Fiction Program
Best Visual Effects
CATBUG
OUR NEWEST PROPERTY:
YouTube: 25mm views, 400,000 likes
TikTok: 135 mn views
Giphy: 200mm loops
“How Frederator’s Bee and PuppyCat
Became One of YouTube’s Most
Anticipated Shows” – Wall Street
Winner: Shorty Award for Best Web Series Journal
Streamy Awards: Nominated for Best
Animated Series
ANIMATION IP
DIGITAL
SHORTS
1,500+
VIDEO
LIBRARY
WOW!’S CHANNEL FREDERATOR NETWORK:
EXPERTS IN DISCOVERING TALENT AND BUILDING AUDIENCES MEDIA
NETWORK
BUILD AUDIENCES FOR DISCOVER
OWN SHOWS ON TALENT, IP,
YOUTUBE AUDIENCE
TASTES ON
YOUTUBE
3,000+
CHANNELS
PRODUCE SHORTS & SERIES
AT WOW!’S CAPTIVE
STUDIOS
WOW: TSXV WOWMF: OTCQX
CARTOON
GET IN THE ROBOT ATOMO NETWORK
HANGOVER
FREDERATOR CINEMATICA LEADERBOARD CHANNELS ON
CHANNEL THE
WOW! PRE- WOW!
SCHOOL PLAYDATE WORLD
OWNED &
OPERATED BRANDS
CHANNELS ON
MEDIA
INTEGRATED ECOSYSTEM
1
CHANNEL Discover talent
DISCOVERY FREDERATOR Discover IP
NETWORK
Market shows
2 HISTORICAL PARTNERS
Low cost
DEVELOPMENT through partnerships,
crowd-funding
SHORTS
3
In-house
PRODUCTION Production
4
PARTNER
PLATFORMS
DISTRIBUTION /
MONETIZATION OWNED &
OPERATED
CHANNELS
WOW: TSXV WOWMF: OTCQXFINANCIAL PERFORMANCE
$64.7 M REVENUE ($M) 2019 EBITDA ($M)
Booked production backlog guidance:
as of Sep 30, 2019 $90mn
100
BACKLOG ($M) 8
80 75 $79 6
$69.2 $71.9
$64.7 4
2019
60 $54.4 50 2 guidance:
$69 $0.55 mm
$45 0
40 25 -2
$18 -4 $1.9 ($2.4) ($2.8) ($2.4)
20
0 -6
FY'16 FY'17 FY'18 Q1-Q3 2019 FY’16 FY’17 FY’18 Q1-Q3
-8
2019
0
DEC MAR JUN SEP
'18 '19 '19 '19
BUSINESS SEGMENTS & REVENUE MODEL (2017 VS. 2018)
Revenue % of Total Revenue % of Total Operating
Segment Type of Revenue ’17 Revenue ’18 Revenue EBITDA ‘18
Animation Production • Work-for-hire $32.0M 71.6% $33.7M 42.9% $3.68M
• Licensing
Media Networks & • YouTube Advertising $12.7M 28.4% $44.9M 57.1% ($3.19)M
Platforms • Other
*All financial disclosures available on www.sedar.com; All figures in C$ 9
Please refer to forward-looking statement disclosures on Slide 2EXPERIENCED TEAM
Fred Seibert, Chief Creative
Michael Hirsh, CEO & Chair
Officer & CEO- Frederator
• One of the founders of the Canadian animation • First Creative Director of MTV, last President of
industry Hanna-Barbera, founder of Next New Networks
• Founded Nelvana in 1971 - sold to Corus for (acquired by YouTube)
~$550mm in 2000 • Producer for all-time hits on Nickelodeon and
• Co-founder of Teletoon Cartoon Networks
• Founded Cookie Jar Ent. in 2004 - sold to DHX • Founder and CEO of Frederator Networks
Media for ~$111mm in 2012 • Early investor and board member of Tumblr
(acquired by Yahoo)
Neil Chakravarti, President & COO John Vandervelde, EVP & CFO Bob Ezrin, Vice Chairman
• Tech, media, and telecom investment banking for JP • Media and entertainment advisory – KPMG • Producer – Pink Floyd’s The Wall and
Morgan • VP Production & Finance, Nelvana multiple evergreen albums
• Head of English Channels and Global Head of • SVP, Business Development & Co-production, • Co-founder and CEO of 7th level
Strategy and Biz Dev for Zee Entertainment Cookie Jar (interactive animation / entertainment
• Co-founder of Corporate Storytellers and Initium.tv company) and Enigma Digital (internet
broadcasting company)
WOW: TSXV WOWMF: OTCQXCAP STRUCTURE & ASSETS
Capital structure and ownership
CAPITALIZATION(C$M) FUND RAISES
Share Price • Dec 2016 - WOW! Unlimited Media formed through a
$0.45 merger of Rainmaker (now Mainframe), Frederator and
(Dec 5, 2019)
Ezrin Hirsh Inc.; Rainmaker changes name to WOW!
Shares Outstanding (MM) 32.0
Market Capitalization 14.4 • Dec 2016 - $11M raised in common shares at $1.80
Add: Debt * 5.5
• Dec 2017 - $4.3M raised in 8%, 3-year convertible
Add: Lease adjustment for IFRS16 * 13.3
debentures, convertible at $2.00
Less: Cash* 5.8
Enterprise Value 27.4 • Jun 2018 - $2.4M raised in common shares at $1.50
* As of 9/30/19
• Mar 2019 - ~$2.0M raised in common shares at $1.10
OWNERSHIP (est.) ASSET OVERVIEW
Retail
14% Studios
Insiders Bell
34% Canada
12%
Media
brands
Get in
the Robot
Institutional • 4 full length series
40% Library • 15-20 series in development
• Over 1,500 short-form videos
WOW: TSXV WOWMF: OTCQX 11Thank you
Investor queries:
WOW: TSXV WOWMF: OTCQX
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