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Investor Presentation December 2014
OTC MARKETS: ICTV; CSE-Canada: ITV
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Safe Harbor Statement This presentation contains "forward-looking statements" made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 that are based on current expectations, estimates, forecasts and assumptions and are subject to risks and uncertainties. Words such as "anticipate," "assume," "believe," "estimate," "expect," "goal," "intend," "plan," "project," "seek," "target," and variations of such words and similar expressions are intended to identify forward- looking statements. Such forward-looking statements are subject to certain risks, uncertainties and assumptions that may cause actual results to differ materially from those expressed by the forward-looking statements, including, but not limited to, the following: general economic, industry and market sector conditions; the Company's future growth and the ability to obtain additional financing to implement the Company's growth strategy; the ability to anticipate and respond to industry trends and preferences; intense competition. In evaluating these statements, you should carefully consider these risks and uncertainties and those described under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in the Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other Securities and Exchange Commission filings. All forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement was made, except to the extent required by applicable securities laws.
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What is ICTV Brands? Direct response marketing and branding company focused on the health, wellness and beauty sector Distinctive marketing strategy and multi-channel distribution model to develop, market and sell products through numerous channels, specifically: Direct Response Television (DRTV) Direct to consumer digital marketing Live TV home shopping networks International sales through local distribution partners Successful products to be sold through retail Proven rapid growth potential with flagship product, DermaWand. Platform established to launch portfolio of products Product portfolio focused on stable, recurring revenue model
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Market Overview Publicly traded on two exchanges with high insider ownership and actively traded Symbol: Stock Price: 52-Week Range: Average Daily Volume: Shares Outstanding: Inside Ownership: Market Cap: Revenue 2013: Operating Income 2013: EPS 2013: OTCQB: ICTV; CSE: ITV $0.70 $ $1.08 67,000 shares 23.2mm 37% $15mm $41.0mm (+79% growth) $1.7mm $0.07
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Vice President of Marketing
Board & Management Expertise in Corporate Management and Finance, Retailing & DRTV Kelvin Claney Chairman & CEO Mr. Claney, a founder of ICTV is an established international reputation with over 30 years as a dynamic and creative marketer. Began in the US Direct Response (DR) sector as an independent contractor to National Media Corp; sourced and executive-produced major infomercial projects, including Euro Painter™, HP9000™, Auri®, Color Cote 2000 polymer sealant™, Dustmaster 2000™, LeSnack™, Sterling Spring™, Iron Quick™, Fatfree Express™. Created the successful children's toy BetterBlocks®; advertised and sold nationally and internationally for 15 years. Principally oversaw the production of ICTV's Derma Wand® infomercial and responsible for sourcing all related skin care products in ICTV's DermaVitál® brand. Total sales generated by infomercials he has initiated or overseen now exceed $500 million. Richard Ransom President Mr. Ransom oversees all operations of ICTV, including DRTV campaign management, product procurement, marketing and sales efforts. Mr. Ransom joined ICTV in July 2008 as the Company's Controller, appointed Chief Financial Officer in December 2008 and appointed as President in September Over 8 years of experience in financial management roles at Traffic.Com, Hildebrandt International, and Grant Thornton. He is a graduate of Pennsylvania State University with a degree in Accounting, and received his MBA from Delaware Valley College in December, 2009. Ryan LeBon CFO Mr. LeBon is responsible for managing the financial operations of ICTV, including all SEC, statutory and tax filings. Mr. LeBon joined ICTV in June of 2013 as the Company’s Director of Financial Reporting and appointed Chief Financial Officer in January Prior to joining the Company, Mr. LeBon had over nine years of public accounting and corporate finance experience with Deloitte & Touche LLP, as an Audit Manager primarily serving SEC registrants, and as a Controller with General Electric. Mr. LeBon is a graduate of Villanova University with a degree in accounting and is a Certified Public Accountant in Pennsylvania. Nikki Kearney Vice President of Marketing Ms. Kearney is responsible for managing ICTV’s marketing campaigns including television, print and digital, as well as managing media operations across multiple vendors. Prior to joining the ICTV team, Ms. Kearney was Vice President of Client Services in Mercury Media’s Philadelphia office and was responsible for overseeing the Client Services department with a focus on client management, program analysis and campaign development. Nikki also served as the Associate Director of Account Services at Direct Response Media and prior to that was the Marketing Manager for LA Weight Loss Centers, Inc. Nikki graduated with honors from Penn State University with a BA in Psychology and a minor in Business Doug Crouthers Director of Sales Mr. Crouthers is responsible for managing the Company’s International sales and distribution channels with over 35 countries, working to build and expand ICTV’s International relationships and long term growth. Mr. Crouthers has over a 25 years of sales experience with 17 years in the Direct Response Industry. He most recently worked with Applied Perceptions where he cultivated the customer sales and service call center side of DRTV campaigns, working directly with ICTV Brands on multiple campaigns. He has also held the title of Vice-President of Teleservices at Irwin Naturals and of Vice-President of Sales at Tony Hoffman Productions.
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Board & Management Expertise in Corporate Management and Finance, Retailing & DRTV Stephen J. Jarvis Director 30 years DR marketing industry experience; formed Direct Response Advertising, Inc., generating and qualifying DR leads for companies dealing in luxury consumer items. Several successful products taken to the Aus. DR market; notably BetterBlocks™ sold via DRTV and all major Aus. retailers. Co-founder and Pres. of Positive Response Vision, Inc., Manila; grew to leading DR marketing org. in SE Asia; marketed and distributed a vast range of products. Responsible for product sourcing and acquisition, inventory, finance control, design issues, and sales back-end programs. Produced infomercials privately; licensed them to Positive Response Vision, Inc. and other int’l infomercial co.’s. Recently established an outbound call center, Vision TV Philippines Inc, and produced 8 new shows for international distribution. William N. Kinnear CPA, CA, Director Chartered accountant in Canada with over 40 years of experience as a senior officer at a variety of companies, both public and private, in the accounting and financial disciplines. Currently Corporate Secretary for a private investment company, and provides corporate secretarial services to a variety of companies, working closely with stock exchanges and security commissions within Canada. His experience includes the areas of mortgage underwriting and finance, point of sale, steel fabrication, secretarial services, and investments. He spent 15 years as President of Corsec Canada, Inc., providing corporate secretarial services to small cap public companies. Don McDonald Director Presently with Great Valley Capital Advisors, assisting companies with corporate development and strategy. Mr. McDonald’s 40-year career spans several organizations from financing to direct response advertising to technology and media. His responsibilities as a Founder and Executive over the past 30 years include strategy vision, management, operational and sales. In particular, Mr. McDonald led National Media Corporation, a direct response marketing company, to $320 million in annual sales and a NYSE listing as a public company.
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Industry Highlights Branding through Direct Response Television (DRTV)
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Flagship Product: DermaWand®
DermaWand is an at-home, handheld RF beauty tool that reduces the appearance of fine lines & wrinkles & improves overall skin appearance 2M+ units sold to-date Expanding domestic and international sales; recent success in Mexico Launched directly in Quebec in Q3 2014 Expect to launch Japan and the UK in Q Next-generation device and infomercial expected in 2015 National retail rollout with Rite Aid; available at nearly 4,000 locations
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Expanding Products & Distribution
Always seeking additional licensing or acquisition opportunities to expand product offerings in the health, wellness & beauty category DermaWand success has opened many new doors New product pipeline is strongest in company history M&A opportunities continually being reviewed Celebrity branding & licensing Creative & development expertise
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Product Portfolio DermaVitál® Elastin-rp™ CoralActives
Products are specifically formulated to help consumers get the most benefit out of DermaWand's advanced radio frequency technology. Created using leading edge skin care formulations & highest grade ingredients for professional grade results Elastin-rp™ Delivered using a unique body heat-activated system which enables the BioLastin Complex™ to penetrate quickly to help stimulate your skin's natural ability to replenish elastin & collagen CoralActives An acne treatment & skin cleansing solution product line Derma Brilliance Offers easy-to-use at-home microdermabrasion systems for all skin types & concerns, plus other products & accessories for total body care Jidue A facial massager that works through 18 uniquely positioned pulsating nodes, which stimulates the 4 key pressure points around the eye to increase facial blood circulation & lymph flow
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Product Portfolio Plan
st Half nd Half st Half nd Half 35+ Int’l Countries U.S Canada Mexico New Version Retail Japan UK China 13 Products Dr. Angel Guerrero New Formulas Retail Int’l Acquired Launched Revamp Retail Int’l Sourced Acquired Revamp Retail Infomercial Int’l Acquired Clinical Study Infomercial Retail Int’l Infomercial Acquired Retail Int’l
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Data Analytics: Proof in the Numbers
ICTV management is constantly monitoring detailed analytics to optimize marketing dollars spent & greatly improving the bottom line MER = media efficiency ratio Forecasted targeted media spend across 20+ vendors spanning different mediums in multiple languages Conversion % Customer acquisition costs Cross-Sell % Average order value
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Financial Performance
From Turnaround Situation to Growth Opportunity 2011 = $3.1mm revenue & ($0.5mm) operating loss 2012 = $22.9mm revenue & ($0.5mm) operating loss 2013 = $41.0mm revenue & $1.7mm operating income
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$100mm in total revenue 8-10% operating margins
Goal & Target Model in ICTV Brands A family of products in the health, wellness & beauty area $100mm in total revenue 8-10% operating margins Recurring revenue business model Device – razor/razor blade Consumables Continuity programs
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Recap Investment Highlights
Well Positioned Global sales & distribution channels set up in 40 countries internationally Management In-house talent & expert management team to build brands Product Pipeline Portfolio of unique products that have the potential for rapid growth Financials Healthy, under-leveraged balance sheet Share Structure Excellent capital structure, heavy inside ownership (37%) Richard Ransom President T: E: Kirk Gamley Investor Relations T: E:
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