Aspire Media General Presentation

THE WINNING ENTHUSIAST MEDIA STRATEGY

Customer Centric & Media Agnostic “Our channels for delivering content are evolving… and with each new channel, channel our audience expands” expands

Customer Centric

Content that is wanted, needed, and valued

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Media Agnostic

Where, When, and How our customers want

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Why Agnostic? – People Have Diff Different Learning L i Styles S l Not everyone learns the same way.

Source: http://www.pcma.org/Documents/adultlearningstyles.pdf

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What Customers Want

• • •

Instruction Ideas Inspiration

• • •

Communities Shopping Service

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Where Customers Want

• • •

Home Office Online

• • •

Events Mobile Retail Stores

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When Customers Want

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How Customers Want

• • • • • • •

Magazines Newsstand Specials Books E il N Email Newsletters l tt TV DVD Streaming Video

• • • • • • •

Events Workshops Web Sites Di t i Directories E-commerce Stores Online Communities Other Social Media

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Focus

Enthusiast Markets

•

Evergreen content

•

Recession resistant

•

Both content & advertising is valued

•

Enthusiasts predisposed to online usage

•

Lifelong passions

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Targeted Enthusiast Sectors

• • • • • • • • •

Art & Craft Epicurean Photography Videography Equine Hunting & Fishing Antiques Home Family

• • • • • • • •

Garden Writing Music Pets Collecting Audio Fitness Other Hobbies

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Multi-Platform Multi Platform Strategy

• • • • • • •

Synergy B k office Back ffi efficiencies ffi i i Low cost promotion Barriers to entry Competitive advantage Integrated marketing solutions for advertisers Enhanced market intelligence

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Strategy

• • • •

Growth

Acquisitions q Organic growth Line extensions Infield start-ups

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Aspire Team

The Parent Company

A small group of executives, directors, and investors primarily involved in g , acquisitions q and oversight g mergers, of operating unit(s).

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Clay B. Hall

CEO

35 years owning, operating, and advising media companies in 20 different sectors

• City & Regional • Art • Hunting • Fishing • Lifestyle • Gardening • Home & Garden G

• Investment Advisory • Travel • Equine • Golf • Boating • Water Sports

• Extreme Sports • Woodworking • Cooking • Insurance • Health • Crafts

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Troy Wells

CFO

Twenty years financial experience with Meredith Corporation Corporation’s s magazine, magazine book book, interactive and custom publishing businesses • •

•

Controller C t ll ffor M Meredith’s dith’ P Publishing bli hi G Group which hi h produced d d $1 $1.3 3 billi billion in revenue Responsible for the integrity, control and management of all financial p of the p publishing gg group p over seeing g finance, accounting g and aspects credit / collections Led group through several acquisitions and integrations of magazine and interactive businesses performing financial analyses and due diligence

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Private Equity Investors

Successful three decade history of investing; over $1.0 billion under management; focused on middle market growth services

A research-driven growth equity fund providing equity capital to companies in the media, communications and related Internet services industries

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Directors

CLAY HALL – CEO WALTER FLORENCE – Managing Director of Frontenac Company; served on the boards of H-E Parts, Sigma International Group, and SI International (Nasdaq). RYAN MCNALLY – Partner at Catalyst Investors and currently on the board of directors of Start Technology Group PETER DEROW*– Former president and chairman of Newsweek, president of CBS Publishing Group and CEO of Institutional Investor DON NICHOLAS* NICHOLAS – Founder and Managing Director of Mequoda Group, Group direct marketing consultant, architect and founder of Lighthouse Magazine Publishing Model, founder CEO of Blue Dolphin * Independent director

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A Leading Multi Multi-Platform Platform Media Company

Inspiring, encouraging, and supporting creative self-expression through art and craft media

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Interweave’s Interweave s Multi-Platform Multi Platform Strategy

ONLINE

DIRECTORIES

SPIN-OFF TITLES

MAGAZINES

ENTHUSIAST COMMUNITIES PRODUCT SALES

SHOWS & EVENTS

TELEVISION

BOOKS

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Multi-channel Multi channel Marketing Strategy

3,000 Proprietary SKUs

6 Marketing Channels

PRODUCTS • Magazine subscriptions • SIPs • Back issues • Video • Workshops • Books • eBooks • Patterns • Projects • P d t /M t i l Products/Materials

CHANNELS • Direct Mail • Wholesale • eCommerce • Events • Television • Magazines

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Organizational Strategy

Both market and channel accountability

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Content Strategy Re-Purposing Re Purposing

Create once. Deliver often.

After-Life After Life

Licensing

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The Growing Interweave Footprint 2005

2006

2007

2008

2009B % VARIANCE 2005-2009

Magazines

8

12

13

18

18

125%

SIPs

3

7

10

14

16

433%

160

182

207

275

379

136%

21

26

30

41

44

109%

Events

1

7

6

6

6

500%

Email Newsletters

1

4

5

8

11

1000%

Web Sites

1

13

17

19

24

2300%

3

5

6

1

67

75

117

140

147

119%

1

2

3

4

4

300%

Books in Print New Books Published

Ecommerce Stores FTEs Locations

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Acquisitions, Partnerships & Launches 2005 Acquired Interweave Press

2006

2008

2009

Acquired Quilting Arts & CPS

Acquired American Artist Group

Acquired Bead Expo

Acquired NeedleArts Studio

Acquired Crochet Me.com

Launched Stringing

Partnered with Beads, Baubles & Jewels TV

Launched E-commerce E commerce Store

Partnered with Quilting Arts TV

Launched DVD Products

Launched Interweave Crochet

Acquired Gems Division (Primedia)

2007

Launched Knitscene Launched La nched Knitting Daily Launched Beading Daily y

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Leading the Way

• • • • • • •

7 acquisitions since 2005 6 new business launches (not counting SIPs) 2 strategic partnerships since 2005 133% revenue growth since acquired Interweave in 2005 Cohesive portfolio of businesses Unique multi-platform enthusiast media company 14% of revenues from online sales (2008) and growing rapidly

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Interweave Team

Successfully done it before • • • • • • • •

100% success rate in retaining talented founders Creative, customer centric content, marketing, and sales staff Disciplined, p , metric driven business office Collaborative and supportive culture between business staff and market groups Many employees are crafters themselves New product development machine Acknowledged producers of best in market content Direct marketing and E-media DNA companywide

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Linda Ligon

Interweave Interweave’s s Founder

Founded as Interweave Press in 1975 with the launch of Interweave magazine. Grew company from small regional magazine to six diverse magazines with substantial book division. •Published first book in 1980, has brown into 200+book division •Former President of PMA Board of Directors and has served on MPA and IMAG Advisory Board •Has Has experience in diverse enthusiast markets •Successfully launched over ten publications over the course of her career •Launched various conferences and events in the fiber and beading industries

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David Pyle

Vice President & Publisher

Sixteen years experience as a leader, driving growth in hobby product categories and creative enthusiasts media. •Group G publisher bli h ffor C Creative ti E Enthusiasts th i t G Group/F+W /F W P Publications. bli ti Created print and online growth for eight enthusiasts brands. •Director of Marketing, Winsor + Newton, the world’s largest brand in fine g marketing g and branding g for the $35M North art materials. Managed American Division. •President, CreativEnergy. Marketing/communications firm specializing in brand and market growth strategies for the art and craft industry. •Board Member ACMI (Art + Creative Materials Institute) 2003-05 2003-05.

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John Bolton

Vice President & Publisher

More than 13 years of founding, owning, and operating successful small businesses.

•Co-founded, owned and operated a successful multi-media publishing company for 7 years – Quilting Arts, LLC •Founded, owned and operated a successful attorney practice – Licensed Attorney •Co-founded, owned and operated a successful real estate appraisal and investment business for 6 years - Commonwealth Valuation Group, Inc.

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Stephen Koenig

VP Sales & Marketing and Book Publisher

More than ten years publishing, marketing, and managing book businesses.

•Director of Sales, F+W Publications, Inc. Cincinnati, OH overseeing more than $65 Million in annual revenues •National Accounts Manager, F+W Publications, Inc. Cincinnati, OH Web Content Manager – Harris InfoSource (a D&B Company) Company), Cleveland, Cleveland •Web OH •Featured Speaker at the 2007 BEA Writers Conference, New York

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Bob Kasik

VP Consumer Marketing

Twenty-five years of special interest publishing and direct marketing industry experience.

• Vice President, Consumer Marketing, Rodale • President and Publisher, Leman Publications, a Rodale subsidiary • Publisher, Memory Makers, an F+W publication • Vice Vi P President, id t M Marketing k ti ffor severall IInternet t t startups t t • Vice President, Database for Neodata, a division of EDS

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Trish Faubion

VP Production

Twenty-three years experience in the publishing industry.

•Senior Editor, then Managing Editor, then Editor-in-Chief for two computer publications at Duke Communications Int’l •Managing Editor for PieceWork and Herb Companion, then Production Editor for All Interweave Press titles at the time •Managing Editor for 29th Street Press (books) •Managing Editor for email newsletters, Penton Technology Media •Production Director for Penton Technology Media

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T. J. Harty

VP Technology

Fourteen years experience in online development and business strategy.

•Director of eMedia Technology at Penton Media responsible for product development, technologies, research and development, and technical innovations for future products •Managed M d a tteam off more than th ttwenty t tto b build ild and d maintain i t i 130+ websites b it in thirty markets

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Marilyn Murphy

Editorial Director of Yarn Group

Twelve years experience in the publishing industry, and over 30 years in the crafts industry, including being past president of Interweave. •Founder of the former Textile Arts Center, a non-profit arts organization in Chicago •Founding editor of Interweave Knits magazine in 1996 •Current C t President P id t off The Th N National ti lN NeedleArts dl A t A Association i ti •Serves on the board of Spinning and Weaving Association, and the Independent Magazine Advisory Group

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Market Leading Products Nearly all are #1 or #2 in market

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Yarn Magazines

4X

4X

4X

125,013 paid circ.

39,882 paid circ.

30,171 paid circ.

6 Titles in Market

5 Titles in Market

1 Title in Market

#1 Advertising

New

#1 Advertising

SIP

SIP

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Beading Magazines

6X

4X

6X

72,560 paid circ.

62,668 paid circ.

33,999 paid circ.

7 Titles in Market

7 Titles in Market

7 Titles in Market

#3 Advertising

#5 Advertising

#6 Advertising

SIP

SIP

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Jewelry Making Magazines

12X

5X

35,929 paid circ.

44,452 paid circ.

2 Titles in Market

3 Titles in Market

#1 Advertising

#3 Advertising

SIP

SIP

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Quilting Magazines

6X

SIP

65,443 paid circ. 7 Titles in Market #6 Advertising

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Mixed Media Magazines

6X

4X

49,166 paid circ. 2 Titles in Market #1 Advertising

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Fine Art Magazines

11X

4X

4X

4X

40,821 paid circ.

32,838 paid circ.

22,310 paid circ.

9,420 paid circ.

#2 Advertising

#2 Advertising

SIP

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Fiber Art Magazines

5X

6X

17,865 paid circ.

18,892 paid circ.

1 Title in Market

1 Title in Market

#1 Advertising

#1 Advertising

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Weaving Magazines

5X 24,438 paid circ. 1 Title in Market #1 Advertising

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Trade Publications

1X

6X

NA

7,242 paid circ.

3 Titles in Market

1 Title in Market

#1 Advertising

#1 Advertising

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Books

•

Unparalleled g Instruction,, Design and Inspiration

•

More than 250 books in print, with approximately app o a e y 40 0 new books published annually

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Events & Workshops

CLICK LOGO FOR EVENT LINK

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Television

OWNED

MEDIA SPONSOR & HOST

MEDIA SPONSOR

CLICK LOGO FOR VIDEO LINK

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Video

DVD • Streaming •

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Web Sites

myamericanartist

knitscene

interweavestore

fiberarts

b di d il beadingdaily

spinoff i ff

stepbystepbeads

colored-stone

stepbystepwire

jewelryartistmagazine

stringingmagazine

jewelryshowguide

beadfest

quiltingarts

knittingdaily

interweave

interweaveknits

aspire-media

CLICK NAME TO VIEW SITE

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E-mail E mail Newsletters

Knitting Daily Beading Daily Q ilti A Quilting Arts t Cloth, Paper, Scissors Fiber Arts American Artist Drawing Colored Stone Jewelry Artist Spin-Off CLICK NAME TO NEWSLETTER

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E-commerce E commerce Store

Interweavestore More than 3,000 Interweave SKUs in one, user friendly, fully searchable, e commerce store e-commerce

CLICK NAME TO VIEW SITE

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For more information contact: Clay Hall, CEO (970) 613-4628 [email protected] @ p