JANUARY 2021 - WOW: TSX-V WOWMF: OTCQX - Wow Unlimited Media
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WO W : T S X- V WO W M F : OTC Q X JA N UA RY 2 0 2 1
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 2020, 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 and refining its offerings in the United States and Canada, respectively, (ii) WOW!’s
2020 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, 2019 and those contained in the Company’s management’s discussion and analysis for the fiscal year ended December 31, 2019, 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 "$" to Canadian dollars,
unless otherwise indicated.
This presentation does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the
securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold
within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration
requirements is available.
WOW: TSXV WOWMF: OTCQX
OBJECTIVE
BUILDING A GLOBAL, ANIMATION FOCUSED ENTERTAINMENT COMPANY
BUSINESS MODEL
ANIMATION CONTENT MEDIA
OTHER
ANIMATION ORIGINAL
YOUTUBE STREAMING
SERVICES ANIMATION IP
NETWORK PLATFORMS
Revenue: Services Revenue: Licensing Revenue: Advertising Revenue: Licensing
Goal: Be the best Goal: Build hits and Goal: Discover talent Goal: Build brands
service partner long term value & build audiences & partnerships
WOW: TSXV WOWMF: OTCQX
“UNLIMITED” SHELF SPACE FOR HIGH QUALITY CONTENT
GLOBAL TECH & MEDIA GIANTS ARE ... CREATING UNPRECEDENTED
ROLLING OUT STREAMING PLATFORMS... DEMAND FOR CONTENT.
Programming Spend by Platform ($B)
35
29.7
30
26.6
25 23.2
19.5
20
15.8
15
10
5
0
2018 2019 2020 2021 2022
Netflix Amazon Prime Hulu Apple TV+
Source: RBC Capital Markets estimates, Statista, Business Insider, SNL Kagan; estimates for annual programming cost amortization
ANIMATION SERVICES –
TOP CLIENTS & PROJECTS
HIGHLY SUCCESSFUL
25+ YEAR TRACK RECORD
STUDIOS IN
VANCOUVER,
LOS ANGELES
&
”GSP”
GLOBAL STUDIO PIPELINE (“GSP”) ENSURES 24/7
PRODUCTION & COLLABORATION CAPABILITY
WOW: TSXV WOWMF: OTCQX
ANIMATION SERVICES
(cont’d.)
RELEASED
SEPTEMBER 2020
PARTNERS AND PLATFORMS
WOW: TSXV WOWMF: OTCQX
ANIMATION IP
POPULAR “… THE BEST VIDEO GAME
ADAPTATION EVER.” • IGN.com
TITLES
“How Frederator’s Bee and PuppyCat
Became One of YouTube’s Most
Anticipated Shows” • Wall Street Journal
UPCOMING
ANIMATION IP
IN DEVELOPMENT
Over 200
million
views !!
Over 200
million
loops!!
MERCHANDISE
WOW: TSXV WOWMF: OTCQX
NEW REVENUE
STREAMS
LICENSING &
MERCHANDIZING
WOW: TSXV WOWMF: OTCQX
NEW REVENUE
STREAMS (cont’d.)
PUBLISHING
WOW: TSXV WOWMF: OTCQXWOW!’S CHANNEL FREDERATOR NETWORK: MEDIA
KEY VALUE DRIVER
NETWORK
DISCOVER
3. 1. TALENT & IP, ON
YOUTUBE
TEST
SHOWS & BUILD
AUDIENCES ON YOUTUBE
Over 1,000,000,000 monthly views
Over 3,000 channels
Over $30 million LTM revenue
PRODUCE
2.
SHOWS AT WOW!’S
CAPTIVE STUDIOS
WOW: TSXV WOWMF: OTCQXINTEGRATED ECOSYSTEM & MONETIZATION STRATEGY
1
CHANNEL Discover IP,
DISCOVERY FREDERATOR ON Generate
NETWORK
ad revenue
2 HISTORICAL PARTNERS
Develop shows
DEVELOPMENT with low cost
SHORTS partnerships
3
PRODUCTION Produce
in-house
4
Monetize through
DISTRIBUTION /
partners
MONETIZATION and platforms
WOW: TSXV WOWMF: OTCQXEXPERIENCED TEAM
Michael Hirsh, CEO & Chair Neil Chakravarti, President & COO
• One of the founders of the Canadian • Tech, media, and telecom investment banking
for JP Morgan
animation industry
• Founded Nelvana in 1971 - sold to Corus for • EVP - Head of English Channels and Global
~$550mm in 2000 Head of Strategy and Biz Dev for Zee
Entertainment
• Co-founder of Teletoon
• Co-founder of startups - Corporate
• Founded Cookie Jar Ent. in 2004 - sold to
Storytellers and Initium.tv
DHX Media for ~$111mm in 2012
Michael Hefferon, EVP
John Vandervelde, EVP & CFO President – Mainframe Studios
• Media and entertainment advisory – • Produced over 700 half hours of series &
KPMG movies
• VP Production & Finance, Nelvana • Built and grew animation studios in Toronto,
• SVP, Business Development & Co- Berlin, Sydney and Vancouver
production, Cookie Jar • Running Mainframe Studios since 2012
Kim Dent Wilder, SVP
Head Production/ Ops - Mainframe
• Over 20 years in senior roles in animation
• Oversees Studio production, operations and
client deliveries
• Active across key industry forums and
associations
WOW: TSXV WOWMF: OTCQXGROWING PROFITABILITY AND STRONG REVENUE BACKLOG
REVENUE ($M) ANIMATION BACKLOG ($M)
Exited low profit, 100 95.4*
100 non-core media
partnership
72.4
$63 75
75
64.3
57.6
63 Media
33
50 50
45 Animation
13
42
25 40
34 25
32
0
FY'17 FY'18 FY'19 LTM
0
MAR'20 JUN'20 SEP'20 DEC '20
8
EBITDA ($M)
Orders on hand as of
6 $95.4M December 23, 2020
4 3.1
2 1.4
v Current orders on hand excludes billing in progress for
0 the quarter ending December 31, 2020
-2 v Backlog represents value of signed agreements for
-4 -2.4 -2.8 production services and IP licensing contracts for
which the Company expects to recognize revenue in
-6 future periods
-8 FY’17 FY’18 FY’19 LTM
* Refer to explanation of backlog above. All financial disclosures available on www.sedar.com; All figures in C$. Please refer to forward-looking statement disclosures on Slide 2CAPITALIZATION & SHAREHOLDING
CAPITALIZATION FUND RAISES (2018-Present)
Share price (Jan 5, 2021) $0.50
• Jun 2018 - $2.4M raised in common shares at $1.50
Shares O/S 32.0
Market cap. 16.0 • Mar 2019 - $2.0M raised in common shares at $1.10
Add: Debt 7.0
Add: Leases 15.2 • Dec 2020 - $4.7M raised in 9.5%, 3-year convertible
debentures, convertible at $0.55; refinanced existing
Less: Cash (4.5)
convertible note
Enterprise value 33.7
All figures in millions, except share price
OWNERSHIP (est.)
Retail
14%
Insiders Bell
34% Canada
12%
Institutional
40%
WOW: TSXV WOWMF: OTCQXINVESTMENT HIGHLIGHTS
Robust demand for animation content –
large addressable market
Fast growing business; strong sales
backlog
Top-end partner to marquee
client base
Management with proven global
track record
Significant opportunity for value
creation from IP exploitationThank you
Investor queries:
WOW: TSXV WOWMF: OTCQX
ir@wowunlimited.coYou can also read
