2. Current Situation Opportunity Recommendation Financials Implementation
Agenda
Current Situation
Opportunity
Recommendation
Financials
Implementation and Wrap-Up
3. Current Situation Opportunity Recommendation Financials Implementation
Current
Situation
• Competitors: One stop media, VST Canada, Zoom Media
• Increasingly competitive environment
• VST Canada – 100 esso gas stations
• OneStopMedia – 139 terminals in TTC subway stations;
hospitality network with Hilton group of hotels
• In order to remain competitive in such an environment,
Newad must enter the digital signage market
THE DIGITAL SIGNAGE BUSINESS ENVIRONMENT IS GETTING INCREASINGLY
COMPETITIVE WITH MULTIPLE PLAYERS
4. Current Situation Opportunity Recommendation Financials Implementation
102.5 285
797
2223
3713
0
1000
2000
3000
4000
Digital Signage Advertising Revenues
Revenue Growth Projection
2004 2006 2008 2010 2011
Current
Situation
MACRO ENVIRONMENT CREATES OPPORTUNITIES FOR ENTRY WHILE
ALLOWING NEWAD TO FOCUS ON CORE COMPETENCIES AND MARKETS
$MM
• Huge growth rate; big business
opportunity
• Currently: Print media digital signage
which adds value proposition
54%
68%
74%
82%
0%
20%
40%
60%
80%
100%
Market Share
Newad’s Market Share in Canada
Montreal Toronto Vancouver Alberta
• Focus on core competencies in core
markets
• 10x eye contact of static signage
• Boost sales of advertised products:
30% 300%
5. Current Situation Opportunity Recommendation Financials Implementation
Opportunity
MACRO ENVIRONMENT CREATES OPPORTUNITIES FOR ENTRY WHILE
ALLOWING NEWAD TO FOCUS ON CORE COMPETENCIES AND MARKETS
“By pursuing a hybrid model
and phasing in digital
signage in different cities and
industries, Newad will be
able to stay competitive in
the digital signage market
while making
$33M in revenue in 6 years
with ROI of 195%”
6. Current Situation Opportunity Recommendation Financials Implementation
Decision
Matrix
How to best
leverage core
competencies?
Enter into
digital signage
Total Network
Hybrid; network
and traditional
Flash memory
card
Stay in
traditional print
NEWAD HAS A FEW ALTERNATIVES UNDER THEIR BELT AND MUST SELECT
ONES THAT BEST LEVERAGES THEIR CORE COMPETENCIES
7. Current Situation Opportunity Recommendation Financials Implementation
Total Network
Hybrid; print +
network
Flash memory card
Status quo
Financial Feasibility Leverage Core
Competencies
Scalability Risk
Decision
Matrix
HYBRID MODEL WILL ALLOW NEWAD TO STAY RELEVANT IN THE INDUSTRY
WHILE FULFILLING DECISION CRITERIA
8. Current Situation Opportunity Recommendation Financials Implementation
Phase 1 (1 year)
Phase 2 (2 years)
Eventual Conversion
Resto-bars
Health & Fitness
Centres
Universities Stadiums
Recommendation
NEWAD SHOULD IMPLEMENT A HYBRID STRATEGY IN THREE DISTINCT PHASES
50% in Montreal
converted
25% country
wide
50% big
boards
Nothing
60% country wide
80% country
wide
80% country
wide
Big board
development;
sell 20
80% country wide No change No change No change
9. Current Situation Opportunity Recommendation Financials Implementation
Recommendation
Metro Airports (advertising)
• Phase 1 – sell contracts;
business development
• Phase 2 – contract with
Vancouver and
Montreal; 139 screens
• 100 screens; waiting
areas, boutiques and
bathrooms
PUBLIC SPACES REPRESENTS VIABLE OPPORTUNITIES FOR NEWAD TO CAPTURE
Developing new business opportunities will enable Newad to diversify and increase its
sources of revenue
Gas Stations
• Contract with shell in
the cities Newad is
operating in
• 100 screens overall
10. Current Situation Opportunity Recommendation Financials Implementation
Implementation
Convert restos,
unis, gyms;
offer incentive
Year 1 Year 2 Year 3 Year 7 Year 8 Long TermYear 4 Year 5 Year 6
Stadiums, big
boards; reduce
rebate to 5%
Continue
conversion
Other city
expansion,
metro, airports
etc
NEWAD SHOULD FOCUS ON ITS CORE COMPETENCIES IN THE NEAR TERM
WHILE WORKING TO DIVERSIFY REVENUE IN THE LONGER TERM
11. Current Situation Opportunity Recommendation Financials Implementation
Risks Mitigants
• Low conversion
• Low revenues
• Greater incentives;
more rebates
• Slow down expansion;
consider flash memory
option
Risks
NEWAD IS NICELY HEDGED AGAINST ANY RISKS
Contingency: Continue with print media – keep pushing successful conversions and
sell-off to cut losses
12. Current Situation Opportunity Recommendation Financials Implementation
Finances
Per week Every Phase
Traditional Price 45 4680
Average costs 30 3120
Average Sale 15 1560
Digital Price 112.5 11700
Average Costs 4 416
Average Investment costs/board 4000
13. Current Situation Opportunity Recommendation Financials Implementation
“By pursuing a hybrid model
and phasing in digital
signage in different cities and
industries, Newad will be
able to stay competitive in
the digital signage market
while making
$33M in revenue in 6 years
with ROI of 195%”
Conclusion