Slide 1: Investor Presentation – August 2020
© 2020 CuriosityStream, Inc., Silver Spring, Maryland, All Rights Reserved. Investor Presentation – August 2020
Slide 2: Disclaimer
Disclaimer This presentation contains statements that express our opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, “forward - looking statements.” These forward - looking statements can
Slide 3: Transaction Overview
Transaction Overview Transaction Overview Timing Management and Board • Software Acquisition Group, Inc. (Nasdaq: SAQN, “SWAG” or the “Company”) has entered into a definitive agreement to merge with CuriosityStream, Inc. (“CuriosityStream”) • The combined company will be well capitalized, with ~$511
Slide 4: Valuable and Expanding Content Library; Multiple Methods to Monetize Content
▪ Over 3100 HD & 4K titles ▪ Higher production quality and resolutions compared to older libraries ▪ $1.3B estimated original production value ▪ Library has global appeal to viewers regardless of age or language ▪ Vast library covers all major categories of factual entertainment Valuable and Expandi
Slide 5: Management Biographies
• Leads all strategy and operations for CuriosityStream • 28 years of traditional and digital global media experience across programming, production, content development, marketing, operations, advertising sales, and network and program distribution • Leadership roles ranging from SVP to Founder/CEO
Slide 6: John Hendricks, Visionary Founder of Discovery Communications
Summary Biography 1982 Cable Educational Networks founded by John Hendricks Market Cap ($USD in billions) Discovery 1982 - 2014 2014 2014 $28B Market Cap Awards 1985 Discovery Channel raises $5M Series A and debuts on cable TV 2015 C urio sit y Stre a m launched 2017 C urio sit y Stre a m wins 1 st
Slide 7: Founding Purpose and Editorial Mission
Founding Purpose and Editorial Mission CuriosityStream was founded to satisfy humanity’s enduring curiosity about our world with premium factual content that informs, enchants and inspires 5
Slide 8: We are in the midst of a massive shift in consumer behavior
We are in the midst of a massive shift in consumer behavior 1st Revolution BROADCAST 1940 - 1974 2nd Revolution CABLE 1975 - 2006 3rd Revolution ON - DEMAND STREAMING 2007 - Future PI O NEER PIO NEER PIO NEER 4 Content Categories MOVIES & SCRIPTED SERIES FACTU A L GENERAL TV ENTERTAINMENT • Sitcoms
Slide 9: The Perilous Niches of SVoD
The Perilous Niches of SVoD SVOD NICHE International MOVIES & SCRIPTED DRAMA BritBox Acorn TV Masterpiece Go Russia Vemox BoB Viewster cLassics ] 0 SCLFUFANTASY | ACTION FACTUAL CuriosityStream NATURE, SCIENCE HISTORY DRAMA/SERIES | HORROR THRILLERS COMEDY PEOPLE HOME CUISINE ‘TRAVEL LEARNING S AMUS
Slide 10: CuriosityStream Delivers the Full Category of Factual Entertainment
CuriosityStream Delivers the Full Category of Factual Entertainment 8
Slide 11: Significant and Growing Audience Share for Factual Content
Significant and Growing Audience Share for Factual Content 9
Slide 12: Impressive Growth Trajectory
Impressive Growth Trajectory 10 • Doubling YOY revenue for the last three years with plenty of strong growth ahead, 50% CAGR • >60% Gross margins • Massive recurring revenue • Positive AOIBDA in 4Q 2022
Slide 13: Robust, Scalable Lines of Revenue
5 Robust, Scalable Lines of Revenue 11 World's Factual Solution for consumers, distributors, corporations, associations, educational institutions, brands, and media companies Business Line Revenue Model Market Opportunity (1) Revenue Opportuni t y by 2025 Estimated % of Total Revenue Description Dir
Slide 14: Content Acquisition, Production and Distribution Ecosystem
Content Acquisition & Production Management TVF ZDF Enterprises PBS ZED NHK BBC Laptop, desktop, PC or Mac via modern web browser Interface Platforms CDN Servers CenturyLink StackPath Cloudfront Cable, Satellite, and Internet Distributors Internet Global C on s u m ers Android device iPhones & iPads
Slide 15: Total Direct & Partner Subscriber Growth
Total Direct & Partner Subscriber Growth *Does not include bulk corporate subscriptions 13 Direct, Partner Direct, and Total Direct
Slide 16: Direct & Partner Direct Subscriber Net Adds by Quarter
Direct & Partner Direct Subscriber Net Adds by Quarter Net Direct and Net PD *Does not include bulk corporate subscriptions 14
Slide 17: Global Bundled Distribution
Global Bundled Distribution Bundled pay TV distribution in 8 3 countries in 5 languages English, Mandarin, Spanish, Swedish, Russian Long term recurring revenue via multi - year fixed fee agreements Control global rights to most content Factual travels better than any category 15
Slide 18: 10X YOY Bundled Subscriber Growth
10X YOY Bundled Subscriber Growth 0 16 2 4 6 8 10 2016 - 01 2017 - 01 2018 - 01 2019 - 01 2020 - Q1 Million 12 Quarter
Slide 19: Corporate & Educational Partnerships
Corporate & Educational Partnerships 17 • Primary focus on multiyear, multimillion $ partnerships with corporations and associations. • Deal elements include co - branded member streaming services powered by Curiosity, joint content creation, brand advertising, and corporate sponsorship of Curiosity
Slide 20: Corporate Partnership Deal Examples
Corporate Partnership Deal Examples • Co - Branded Streaming Service • Content+Companion Docs • Studio Collaborative for New Content Member/Trade Association 3 Years, $30M Professional Services 3 Years, $1.2M • Sponsor Districts in Key Markets • TCS AI to Assess Lexile Levels in Titles and STEAM • C
Slide 21: Co-Branded Member Streaming Service Powered by CuriosityStream
SUMMARY RELATED Apollo 13 Similar Topics Apollo Program Space Lunar Module Astronaut NASA Moon Bro wse Collections Jo h n Search A C ME Co - Branded Member Streaming Service Powered by CuriosityStream 19
Slide 22: Advertising / Sponsorship Revenue
Advertising / Sponsorship Revenue High $ Digital Brand Partnerships & Traditional 24/7 Linear We will light up revenue generating ad inventory in the form of traditional “spots and dots” advertising across our linear networks in November 2020, as well as launch multi - platform branded content campa
Slide 23: Brand Partner Media
Brand Partner Media Full Series U n der w ri t in g (All Full Eps + 5 Custom) Branded Social Media Promo Videos TV Spots Digital Display (C urio sit y Stre a m Retargeting) C u riosi t y Stream 4K Annual Subscriptions (DTC Price & Discounted) Millions of Trackable Media Impressions Short Form Episod
Slide 24: Sample Brand Partnership Proposal
Sample Brand Partnership Proposal Impressions & Cost Guaranteed views and impressions will be delivered by CuriosityStream within USA, unless otherwise requested by partner. 22 Full Series Sponsorship (Messaging on all full episodes, 1 or more full length episodes presented in front of paywall by br
Slide 25: Program Sales: Factual Solution for Media Companies
REPRESENTATIVE PROGRAMS REPRESENTATIVE BUYERS Program Sales Factual Solution for Media Companies • Tapping the $120B+ spent in non - sports content annually (1) • Multi - year, multi - million $ “Curiosity Selects” packaged agreements • Long term pre - sales commitments to high - end blue chip featu
Slide 26: Elite Veteran-Led Management Team
Elite Veteran - Led Management Team Clint Stinchcomb President and CEO Jason Eustace Chief Financial Officer Tia Cudahy Chief Operating Officer and General Counsel Andre Silva Chief Technology Officer Devin Emery Chief Product Officer and EVP, Content Strategy Rob Burk Head of Original Programming D
Slide 27: Strong Key Performance Indicators Driving Superior Top-Line Growth
25 Strong Key Performance Indicators Driving Superior Top - Line Growth F C AS T F C A S T Revenue Subscribers Bundled Distribution 7 7 1 10 , 6 4 9 30 , 4 8 0 4 1 , 02 0 6 2 , 02 0 73,128 9 7 , 0 6 6 1 10 , 0 6 6 DTC & Partner Direct 2 4 9 5 3 2 89 5 1 , 23 0 1 , 65 5 2,112 2 , 6 4 5 3 , 2 1 4 Corp
Slide 28: Revenue Bridge - 2020 to 2021
Revenue Bridge - 2020 to 2021 (in $ Millions) 26 ($1.7) $7.6 Churn New Subs
Slide 29: Investment: Marketing and Programming
2020 2021 2022 2023 2024 2025 Investment Marketing Total Direct Advertising 33,557 37,513 43,388 46,825 60,575 74,325 Blended CPA $ 55S 56 OS 50 § 45° $ 47 S$ 50 Programming - Investment Cash Investment 19,500 60,000 90,000 120,000 135,000 150,000 Programming Premiere Hours Placed in Service Origina
Slide 30: CuriosityStream Business Combination
CuriosityStream Business Combination
Slide 31: Operating / Valuation Metrics Comparable Company Analysis
31 Operating / Valuation Metrics Comparable Company Analysis EV / 2021P Revenue Source: S&P Capital IQ; data as of August 7, 2020 market close; projected figures based on consensus analyst estimates 64. 0% 40. 3% 44. 5% 56. 1% 25. 7% 64. 9% NM 2021P Gross Margin: 2021P Revenue Growth 79.9% 17.5% 32.
Slide 32: Pro Forma Transaction Summary and Footnotes
(1) Assumes estimated cash held in trust at business combination and no redemption of SWAG public shares (2) Value of consideration to CuriosityStream shareholders assuming 100% stock deal (assumes estimated CuriosityStream cap table as of October 22, 2020 which includes accrued shares from Series A
Slide 33: Thank you!
Thank you!
Slide 34: Appendix
APPENDIX 32
Slide 35: CuriosityStream at a Glance
CuriosityStream at a Glance Award - winning non - fiction programming 3,000+ titles available on virtually any device that can stream video Globally relevant, regionally optimized programming strategy Serving the full category of factual including science, nature, space, history, food, travel, and m
Slide 36: Market Scope Details
36 Market Scope Details Bundled Distribution Global # of Operators 884 2019, GSA Report (MNOs actively investing in LTE) Global # of Active LTE Operators 769 2019, GSA Report (Active LTE operators) 2019 2022 " of 4G Subscribers worldwide (in M) 4,150 5,100 Source: 2019, TeleGeography; 2022 Forecast,
Slide 37: Direct and Partner Direct Platforms
Direct Platforms (O&O) Smart TVs Partner Direct Direct & Partner Direct Platforms 35
Slide 38: AOIBDA Reconciliation
38 AOIBDA Reconciliation 2018 2019 $(000)s GAAP Net Loss (3 4 ,9 7 2) (4 2 ,5 1 7) Interest Expenses (Income) 1,555 (2, 0 99) Depreciation and Amortization 260 253 Share - based Compensation 35 1,008 FX - (Gain) / Loss - 27 Foreign WH - 130 Income Tax 43 12 AOIBDA (3 3 ,0 7 9) (4 3 ,1 8 6) 36 AOIBDA