MEDIA TAPPING DIVERSE REVENUE STREAMS

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1 MEDIA TAPPING DIVERSE REVENUE STREAMS

2 ABOUT F+W MEDIA F+W Media is a community-focused commerce and content company serving enthusiasts in several specialty categories, including crafting, fine art, writing, design and the outdoors and collectibles. Our goal is to inspire, educate and equip the enthusiasts we serve so they can better enjoy and excel at their passions. We do so through our many touch points including, digital stores, events, educational services, online resources, magazines, books and e-books. F+W is the parent company of leading brands including Interweave, The Artist s Network, Writer s Digest, The Quilting Company, Popular Woodworking and Sky & Telescope.

3 OUR AUDIENCE IS MOVING SO IS YOURS TOTAL POPULATION 323MM ACTIVE INTERNET USERS 282MM +4% ACTIVE SOCIAL MEDIA USERS 192MM +3% ACTIVE MOBILE SOCIAL USERS 169MM +6% Source: UN, US Census Bureau, ITU, Facebook, GSMA Intelligence, CCS Recontact 2015, ITU, Facebook, GSMA Intelligence, CC

4 THE F+W MISSION Inspire an enthusiast audience with great content about the hobbies they love Educate the audience about how to become more proficient at their hobbies and enjoy them more Equip the audience with the best tools and materials for their goals and proficiency level INSPIRE EDUCATE EQUIP

5 COMMERCE FIRST There are no church and state concerns in our enthusiast space. When we asked focus group participants to build the ideal quilting website, they described a place to buy fabric and discover new ways to use it.

6 THE OLD MODEL Brands succeed or fail based on their ability to attract an audience of readers to a magazine and/or website and sell those eyeballs to advertisers. Other activities are viewed as gravy, operate independently and are given names like ancillary products. Great care is taken not to create even the appearance of setting a magazine brand up in competition with its advertising clients.

7 THE PROBLEM IS WITH THE CHANNEL Magazines (monthly or weekly) aren t frequent enough to create or maintain brand relevance 51>2 falloff in magazine wholesalers in past 10 years Newsstand sales is plummeting

8 THE F+W MODEL IS A DTC MODEL Develop or acquire the product most valued by our enthusiast audiences Our content plans start with the product Engage audiences with the content, leading naturally to product sales GO DIRECT!

9 OUR FUTURE EFFORTS TO PROFITABLY SERVE OUR COMMUNITIES WILL FOCUS ON: Digital Products Live Events (Consumer facing) Video Production/Distribution Equipment sales

10 DIGITAL PRODUCTS Digital first publishing Online education Video infotainment products

11 VIDEO Key area of growth and opportunity for the company in regards to generating new revenue as well as a competitive necessity The rapid expansion of video as the dominant content delivery vehicle creates opportunity for F+W but also demands a new approach. Hired a new VP to oversee video transformation across all of our verticals and businesses Creating new formats of videos (SVOD, infotainment, sponsored content, short form social) to further develop our audience Build audience and engagement through our video and video channels with free content and then offer further options through subscriptions/paywall

12 EVENTS Create unique live events/experiences that enhance and inspire our enthusiasts passions Recent successes: Sky & Telescope: Eclipse two sold out tours to view totality of the eclipse alongside our experts from Sky & Telescope revenue of more than 200K Blade show revenue and attendance has doubled in the past 5 years with a second show, Blade Show West being added in October show revenues over $1 million New events London Writer s Summit: November 11, 2017 first international Writer s Digest event - one-day event in partnership with The London Book Fair distills all the best of the Annual event (Pitch Slam, education in craft and business) Artists Network: Italy Retreat: Tuscany, Fall high-end art consumers in a rustic retreat in the heart of Tuscany; in close proximity to sites rich with art history and art instruction with big name artists. Sky & Telescope: Two new tours - a stargazing-slash-safari tour to Botswana in August, and a "Great Observatories of the American Southwest" tour in October. Tours to see the next two total solar eclipses, which will be seen across Chile and Argentina in 2019 and 2020

13 ECOMMERCE Our investment in the digital assets of our company starts with our online stores/sites. It is imperative that we are providing consumers an easy way to find what they want/need and to get it to them quickly Marketing functionality and capabilities on our platforms that give us the ability to run campaigns/provide offers that are appealing to consumers (buy one get one free, free gift with purchase, free shipping when you spend X amount) Success depends on hiring staff with skill sets and experience in this area Drop Shipping increases our product offerings on our online stores, expanding our revenue from commerce without the overhead of inventory and warehousing costs

14 ONLINE EDUCATION We offer a variety of Online Ed Products that promote personalized learning and education options for all skill levels The courses have full product integration : Collaboration with community partners to deliver a rich education experience. Feature identifiable talent Events and shows (live and virtual) Merchandising, sponsorships, & partnerships on-demand/start anytime courses, start/end date courses, live workshops, live and recorded New Courses: unique courses developed and launched 2017 Q1-Q3-111 new unique courses developed and launched Online Ed Sessions: (individual online ed sessions including webinars, and certifications) ,400 total number of online ed sessions available on combined sites 2017 Through Q3 3,374 total number of online ed sessions available on combined sites Unique Enrollments: , Through Q3-21,854

15 AUDIENCE DEVELOPMENT SEO - implement best practices through technology (Yoast/Brightedge). Create content that targets high search keywords Leverage content distribution channels (partnerships/paid placements) Improve Conversion: merge the Content and ecommerce experience. Better align content with products Design pages that remove friction between learning to buying experiences Implementation of technology to bring people back to the site lead capture retargeting

16 INTERACTIVE CONTENT Sky & Telescope & Reveel Technologies Testing a new way for readers to interact with advertising and editorial Provides pathway to incremental revenue by upselling current or prospective advertisers a much richer consumer experience with their print ads Adding an interactive experience to all forms of visual media (in this case print) Invites the audience to explore, learn and buy The reader uses their phone to take a photo of the edit or ad content and are linked to a custom landing page or branded experience that allows for richer storytelling, more information and the ability to purchase products online Bonus No additional creative or programming required (i.e. out of pocket cost to publisher)

17 IS IT WORKING? Interweave.com ecommerce sales have been up year/year for the past 7 consecutive months Apr-Oct 2017 are up 17% vs This revenue exceeds the total revenue of any single magazine in our stable Currently replicating this model with launches of quiltingcompany.com, artistsnetwork.com, writersdigest.com

18 BUILDING A HEALTHIER REVENUE MIX 2017 Legacy Revenues (magazine and books) - 63% New revenue streams (online education, commerce, events, video) - 37% 2018 Projections Legacy Revenues 50% New Revenue Streams 50%

19 THANK YOU MEDIA