RMG Networks Holding Corporation
RMG Networks — Investor Presentation (September 2013)
24 slides from RMG Networks's investor presentation, Sep 23, 2013
Slide 1: RMG Networks Holding Corporation Investor Presentation
tric NETWORKS RMG Networks Holding Corporation Investor Presentation September 2013
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This document, and the remarks made within it, includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Our actual results may ciffer materially from our expecta
Slide 3: RMG Networks Highlights
RMG Networks Highlights RMG Networks is an attractive, fast-growing leader in enterprise-class digital signage and digital out-of-home media Significant + US digital place-based networks growing at ~13% 2011-2016 CAGR® Expected Market Growth + Long-term growth expected due to accelerating adoption t
Slide 4: RMG Networks—Who Are We?
RMG Networks—Who Are We? > RMG Networks is a global leader in digital signage media and technology. The Company sells enterprise-class digital Thousands of customers signage solutions and media applications to some of the around the world, including worlds largest and most demanding companies. Gver7
Slide 5: RMG Networks Provides Comprehensive Turnkey Solutions
RMG Networks Provides Comprehensive Turnkey Solutions RMG Networks Solves Key Customer Competing Offerings: Pain Points Offering Integrated + Multiple suppliers offering individual components Hardware, Software and Services + User responsible for integration Solutions * Offerings complicated to “fit
Slide 6: Screens Guide Our Lives
Screens Guide Our Lives eee rn \.RMGNETWORKS
Slide 7: Significant Expected Industry Growth
Significant Expected Industry Growth U.S. digital-out-of-home market is estimated at: > $2.6 billion and projected to grow at ~13% CAGR through 2016 Projections show the 3 million digital signage BUSA STE SAGE MADE NETTIE media players installed worldwide today will INCREASING ADOPTION increase to a
Slide 8: RMG Networks Sits at the Nexus of Media & Technology
RMG Networks Sits at aa the Nexus of Media & Technology —- + Media and Technology have been on Global acceptance of a collision course for 10+ years “sereens" as an information source accelerating + The Digital Signage Industry Evolution + Moving from an “innovative” marketing Pervasive movement to
Slide 9: All Industries Use Digital Signage
All Industries Use Digital Signage Global Digital Signage Systems Market: Percent of Revenue by Verticals Others 12.2% Government 6.6% Retal 20.6% Education 8.2% Corporate 9.8% Transportation 18.4% Hospitality 16.0% Note: All figures are rounded; the base years 2011. Source: Frost & Sullivan analysi
Slide 10: The Digital Signage Landscape is Fragmented
The Digital Signage Landscape is Fragmented PRODUCT OFFERINGS + Media players HARDWARE — * Displays + Electronic billboards * Content management + Media player management + Ad network operations + Project design and consulting + Network operations SERVICES INDUSTRY SEGMENTS + Deployment and field se
Slide 11: RMG Networks Business Units
RMG Networks Business Units frinc ENTERPRISE Crincmenia SOLUTIONS NETWORKS
Slide 12: RMG Enterprise Solutions
RMG ENTERPRISE SOLUTIONS Digital Signage Ecosystem Comprehensive Solution Offering DIGITAL SIGNAGE—Torgeted information delivered via flat — panel screens installed in call centers, fulfilment centers, lobbies, conference rooms, employee gathering areas VIDEO WALLS—Multiple displays that work in tan
Slide 13: RMG Media Networks
RMG MEDIA NETWORKS, RMG's Media Networks leverage the power of place to target affiuent, consumer-centric audiences on the path to purchase. RMG is able to provide better media impressions through a combination of: contextual content dynamic assets captive environments Targeted Messaging the largest
Slide 14: RMG Airline Media: US Domestic Airline Network Growth
RMG Airline Media: US Domestic Airline Network Growth + RMG Travel Media Network Continental Airlines 8/1, jetBlue | I | | x_ i ADELTA UNITED FRONTIER jetBlue Continental Airlines 2/1, 2010 Ue america AIRFRANCE 7 © Lufthansa = US AIRWAYS sie KLM STAMTRAK ADELTA UNITED FRONTIER AURLINES jetBlue Conti
Slide 15: Providing Solutions to the Largest & Most Demanding Companies Globally
Providing Solutions to the Largest & Most Demanding Companies Globally ADELTA Ciamerica jetBlue Souter og. ZUwtaz ting niter BY AIRFRANCE 7 ‘Cire MEDIA FRONTIER mm Microsoft DALY Kin ee NETWORKS vinous a” 2 ORACLE @Fidety FOX Maitott D@LL FedEx esurance Qwisty 120,000 Airline Screens & ——_‘161 Shopp
Slide 16: Existing Market Leadership and Comprehensive Offerings Provide Strong Platform for Growth
Existing Market Leadership and Comprehensive Offerings Provide Strong Platform for Growth Develop new and expand Build international existing channels to presence in Europe, market in key vertical Middle East, Asia-Pacific industries and Latin America Cross sell additional applications to existing c
Slide 17: Near-term Organic Growth Tactics
Near-term Organic Growth Tactics { RMG ENTERPRISE SOLUTIONS Expanded Geographic Focus: Singapore, Latin America, China Reorganize Sales Force to Drive Customer Retention and Larger Deal Sizes Garner Larger Portion of Customer Spend Offer Additional Solutions Incorporate Practice Leaders Into Marketi
Slide 18: Q2 Pro Forma Results
Q2 Pro Forma Results Pro Forma Consolidated Results! Q2 2013 Highlights {$in millions) 2Q12 2Q13 Acquired, integrated significant - acquisition creating market leader Advertising 5.6 69 offering comprehensive intelligent visual communications solutions * Pro forma combined Q2 total and core Maint./c
Slide 19: Balance Sheet and Capital Structure
Balance Sheet and Capital Structure Summary Pro-forma Balance Sheet Data “ Completed $43 million follow-on offerin (eimai) further diversified Cash 35.4 shareholder base and Debt 23.5 solidified balance * Book Value of Equity 66.8 sheet Warrants Outstanding Outstanding warrants represent potential c
Slide 20: Second Half 2013 Priorities
Second Half 2013 Priorities Complete final integration steps Invest in sales and marketing resources to enhance platform for future growth Capture cross-selling opportunities between two divisions Add new ad inventory and inventory partners Expand geographic and vertical market presences CRihnerwork
Slide 21: Experienced Senior Leadership Team
Experienced Senior Leadership Team With Strong Execution Skills Garry McGuire ecutive Officer + CEO of RMG Networks since 2009 Gregory H. Sachs Executive Chairman + Chaiman ane CEO, Sachs Capital Group + Founder, Fr. Chaiiman an CEO, Deeriic Capital Monagerent * Fe. Charman, leon intemet Ventures +
Slide 22: RMG Networks Highlights
RMG Networks Highlights RMG Networks is an attractive, fast-growing leader in enterprise-class digital signage and digital out-of-home media Significant + US digital place-based networks growing at ~13% 2011-2016 CAGR® Expected Market Growth + Long-term growth expected due to accelerating adoption t
Slide 23: Visual Communications, Delivered.
VISUAL COMMUNICATIONS, DELIVERED. INTELLIGENT © RMGNETWORKS Yee
Slide 24: Appendix — Non-GAAP Reconciliation
Appendix — Non-GAAP Reconciliation Pro forma Calculation of Adjusted EBITDA Q2 — 2013 and 2012 Tere Cr Operating Income (Loss) (5.192.227) (521,852) Add Depreciation and Amortization 1,342,689 1,491,784 Acquisition Expenses 4,013,757 () Purchase Accounting Adjustments |! 675,000 700,000 Adjusted EBI
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