Zinc Media : Investor presentation given via IMC platform

Zinc Media Group plc

February 2020

Commercial in confidence © Zinc Media Group Plc 2021

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Disclaimer

This document, has een prepared by and is the sole responsibility of Zinc Media Group plc (the "Company"), comprises these presentation slides (the "Slides") for the sole use at a presentation concerning the Company.

The information in these Slides does not comprise an admission document, listing particulars or a prospectus relating to the Company or any subsidiary of the Company (together the "Group"), does not constitute an offer or invitation to purchase or subscribe for any securities of the Company, does not constitute or form part of a prospectus or admission document and should not be relied on in connection with a decision to purchase or subscribe for any such securities. The Slides and the accompanying verbal presentation do not constitute a recommendation regarding any decision to sell or purchase securities in the Company.

The Slides and the accompanying verbal presentation are confidential and the Slides are being supplied to you solely for your information and may not without the consent of Nplus1 Singer Capital Markets Limited ("N+1") (the "Broker") be reproduced, distributed or otherwise disclosed to any other person or published, in whole or in part, for any purpose. No reliance may be placed for any purpose whatsoever on the information contained in the Slides and the accompanying verbal presentation or the completeness or accuracy of such information. No representation or warranty, express or implied, is given by or on behalf of the Company or the Broker or their respective shareholders, directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in the Slides and the accompanying verbal presentation, and no liability is accepted for any such information or opinions (including in the case of negligence, but excluding any liability for fraud). The information set out herein and given at the verbal presentation is subject to updating, completion, revision, verification and amendment, and such information may change materially.

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Highlights since the last market update

Revenue booked

• • Pre-booked revenues for 2021 more than doubled to £9.3m (up from £4.1m reported Nov. 2020)

• • H2 2020 revenues anticipated to be up on H1

• • First TV revenues booked for 2022

• • Better than expected distribution revenues in Q4 2020

  Revenue diversification

• • Revenue diversification going well with first ever commission from Amazon Audible and in Zinc Communicate

  Returning series

• • 7 returning series currently confirmed for 2021

  Pipeline

• • Strong pipeline for 2021 and beyond

  Covid

• • UK Government permits television production filming during current lockdown

• • Biggest risk to the Group's revenues in short term is tightening or lengthening of Covid restrictions

Transformation plan complete which positions Zinc for profit and cash generation on Covid recovery

Mark Browning - Chief Executive Officer

Will Sawyer - Chief Financial Officer

Executive Management Team

• • Heart (2001-2009): turnaround from no.4 to

  sustained no.1. Chrysalis plc sold for £170m

• • ITN Productions (2009-2019): turnaround

  from loss to profit making, revenues from £8m

  to £50m

• • Joined Zinc April 2019

• • Previously Finance Director of ITN Productions, working in tandem with Mark for 9 years to transform the business

• • Sold Diagonal View, a global leader in online video content, to Sky

• • Joined Zinc October 2018

Source: ITN annual report / accounts & Broadcast Indie Survey 1 2009 to 2019B, 2 2009 to 2018

New business Revenue diversification

Returning series

£5.2m of new business won since last update

Commercial in confidence © Zinc Media Group Plc 2020

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TV Revenue Diversification in 2021

Strategic Priorities

SVoDSsVoD's

7 returning series commissioned for 2021 with more to come

Case study: Tern TV

£10m

Single v Returning Revenue

£9m

£8m

£7m

£6m

£5m

£4m

£3m

£2m

£1m

£m

2014

2015

2016

2017

2018

2019

10 new Zinc shows on TV in February

Commercial in confidence © Zinc Media Group Plc 2021

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Commercial in confidence © Zinc Media Group Plc 2020

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Restructured Group

Zinc Media: a content creation group

television

Contract PublishingBranded ContentVideo marketing

Shared custome	rs & propositions
Shared video production & editing workflows

Blue-chip customers, prestigious awards

The 4-point plan is on track, despite Covid

• • Margin Improvement

  • o TV gross margins are currently tracking 6% higher compared to 2018/19, an equivalent of £0.7m of retained margin on like-for-like revenues

  • o Closure / restructure of two loss-making divisions, accounting for £0.6m of costs/overheads in year ending June 20

• • Revenue Growth and Diversification

  • o Growth hit by Covid by diversification going well - UKTV, Audible and more to come

  • o New Zinc Communicate has booked 3 new clients in video marketing

• • Cultural and Creative renewal

  • o New business wins now coming from integrated group

  • o Reward now focused on margin and profit not revenue

• • Investment in operational excellence

  • o New CTO starts in June

  • o Investment in diversity, personnel and mental wellbeing

Commercial in confidence © Zinc Media Group Plc 2021

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People power our performance

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New Chief Technology Officer

• • Olly Strous

• • Starts in the summer

• • Strategic leadership of all Group technology

• • New revenue

Commercial in confidence © Zinc Media Group Plc 2021

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Market and Outlook

Covid does present further uncertainty

TV market: cautious in short term, optimistic in medium term

Unscripted product had enjoyed surging demand prior to the pandemic and Covid-19 looks only to have strengthened its popularity

TBI Vision, Distribution Survey, October 2020

The BBC is to introduce a "hybrid"

iPlayer/channel commissioning model under a radical reshuffle of its content strategy

Tim Davie, Director General, BBC, September 2020

Sky prepares to launch 50% more original programming in 2021 compared to last year

Poppy Dixon, Director of Documentaries and Factual, Broadcast, Feb 2021

Netflix just announced it's going to spend £1bn on content in the UK, partially to justify its rate increase, but that's a trend that will continue

C21Media, January 2021

Channel 4 hunts fresh ideas in pivot to digital.

Channel 4 is in a healthier position heading in to 2021 than many had predicted.

CEO - Alex Mahan, Broadcast, 21st January 2021

We are commissioning more hours than anybody in the unscripted world… We just want to make sure that the production community knows that we're open and we're eager

Kathleen Finch, Chief Lifestyle brands officer, Discovery, Feb 2021

Zinc has a healthy pipeline

14 January

19 November

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2021 should get progressively better

The Group is now correctly structured for profitability and cash generation on Covid recovery

• • New business winners in place, with more to come

• • TV margins now at levels needed for profitability

• • TV pipelines have plenty of opportunity

• • Loss making businesses closed

• • New Zinc Communicate winning business

• • Clear strategy, new talent, proven management, supportive investors

• • Pent up demand for content