TSX-V: LM | OTCQB: LMDCF · This presentation has been prepared by Lingo Media Corporation...

TSX-V: LM | OTCQB: LMDCF

1SEPTEMBER 2016 PROPRIETARY - LINGO MEDIA

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" occur 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

SEPTEMBER 2016 PROPRIETARY - LINGO MEDIA 2

1.6 BILLION2

PEOPLE LEARNING ENGLISH

GLOBALLY

ENGLISH LANGUAGE LEARNING PRODUCTS AND SERVICES ARE A

$56.3 BILLION1

GLOBAL MARKET

1Source: Ambient Insight |

2 Source: British Council

*All figures denominated in US Dollars

3

THE MARKET

SEPTEMBER 2016 PROPRIETARY - LINGO MEDIA

EXPENDITURES ON

DIGITAL ENGLISH

LANGUAGE

LEARNING PRODUCTS

WILL ACCOUNT FOR $2.5

BILLION OF THE GLOBAL MARKET IN 20161

1Source: GSV Advisors

THE MARKET (CONT’D)

*All figures denominated in US Dollars


AN EDTECH INDUSTRY

COMPANY THAT INTEGRATES

EDUCATION &

TECHNOLOGY,

EMPOWERING EDUCATORS

TO EASILY TRANSITION FROM

PURE PAPER-BASED TEACHING TO

DIGITAL LEARNING

ABOUT US


QUARTERLY REVENUE TTM: $4.8M

QUARTERLY EBITDA TTM: $3.3M

$0.0

$0.4

$0.8

$1.2

$1.6

$2.0

Q3 '15 Q4 '15 Q1 '16 Q2 '16

Mill

ion

s

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

Q3 '15 Q4 '15 Q1 '16 Q2 '16

Mill

ion

s

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


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


PRINT-BASED

PUBLISHING

ONLINE TRAINING &

ASSESSMENT

&

STRATEGIC FOCUS


PRODUCT LINE

• WINNIE’S WORLD

• ENGLISH ACADEMY

• SCHOLAR

• CAMPUS

• ENGLISH FOR SUCCESS

• MASTER

• BUSINESS

SEPTEMBER 2016 PROPRIETARY – LINGO MEDIA 9

ELL TECHNOLOGIES

STUDENT DASHBOARDLEARNERS 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


ANALYZE PRONOUNCIATION AND EXERCISE REAL

LIFE SCENARIOS

THE STUDIO SPEAK2ME

SPEECH RECOGNITION

ELL TECHNOLOGIES


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


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


SEPTEMBER 2016 PROPRIETARY – LINGO MEDIA 14

ELL TECHNOLOGIES

LIBRARY

52-WEEK TRADING RANGE:

CURRENT PRICE (8/31/2016):

SHARES ISSUED & OUTSTANDING:

SHARES FULLY DILUTED:

MARKET CAP:

% HELD BY INSIDERS:

TSX-V: LM OTCQB: LMDCF

$0.445 (CAD$) / $0.35 (USD$)

$0.34 - $1.19 (CAD$)

35.4 MILLION

38.6 MILLION

$15.75 MILLION (CAD$)

20.17%

SECTOR/INDUSTRY: TECHNOLOGY/EDUCATION SERVICES

TRADING SYMBOLS:

FINANCIAL SNAPSHOT


REVENUE: $4.8M EBITDA: $3.3M NI: $2M EPS: $0.07 (TTM/CAD$)

ANNUAL REVENUE BY SEGMENT


$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

2013 2014 2015 First Half of 2016

Mil

lio

ns

77%

23%

67%

33%

40%

60%

Lingo Learning (Print) ELL Technologies (Online)

Total: $2,008,066Total: $2,512,464

Total: $4,925,735

43%

57%

Total: $2,306,255

FINANCIAL HIGHLIGHTSFor the period ended June 30, 2016: Revenue (ttm) totaled $4.8M; for six months ending June 30, 2016 totaled

$2.3M

NI (ttm) totaled $2M or $0.07/share; for six months ending June 30, 2016 totaled $682,000 or $0.02/share

EBITDA (ttm) totaled $3.3M; for first six months ending June 30, 2016 totaled $1.5M;

Cash as at June 30, 2016 totaled $1.5M as compared to $409,022 as at December 31, 2015, an increase of $1.1M from operations and exercise of warrants and stock options;

Current ratio improved to 4.68:1 as at June 30, 2016 as compared to 2.86:1 as at December 31, 2015;

Loans payable of $580,000 paid in full and retired, company debt reduced to zero

Book value improved to $7M as at June 30, 2016 as compared to $4.1M as at December 31, 2015.


QUARTERLY REVENUE

18SEPTEMBER 2016 PROPRIETARY - LINGO MEDIA

$0.0

$0.5

$1.0

$1.5

$2.0

Q3 '15 Q4 '15 Q1 '16 Q2 '16

Mil

lio

ns

$1,203,201$1,276,248

$756,858

$1,549,397

QUARTERLY REVENUE TTM: $4.8M

QUARTERLY EBITDA


$740,746

$1,038,161

$493,936

$0.0

$0.3

$0.6

$0.9

$1.2

$1.5

Q3 '15 Q4 '15 Q1 '16 Q2 '16

Mill

ion

s

$1,054,115

QUARTERLY EBITDA TTM: $3.3M

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


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


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


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.

MANAGEMENT TEAM


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.

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


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:

• ~$14M valuation currently trading at ~4x TTM cash flow

• $1.5M in cash, no debt, no need for additional capital

• $7M book value

• 20% insider ownership

INVESTMENT HIGHLIGHTS


[email protected]

(416) 927-7000 ext. 23

www.lingomedia.com

TSX-V: LM | OTCQB: LMDCF


TSX-V: LM | OTCQB: LMDCF · This presentation has been prepared by Lingo Media Corporation...

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