Presentation on the Basics of Writing. Writing a Paragraph
Lingo Media
1. L I N G O M E D I A C O R P O R AT I O N
( TS X - V: L M )
O C TO B E R 2 8 , 2 0 1 0
M AR S I N N O VAT I O N S U M M I T 2 0 1 0
Changing the Way the World
Learns English
2. Market Opportunity
• 1.6 Billion English language
learners (ELL)
• Within 5 years- 2 Billion
• China- largest ELL market in
the world
• English skills earn higher
income (up to 72.5%
more)**
100
200
400
700
900 950 1,000
1,300
2,000
-
500
1,000
1,500
2,000
2,500
1970 1975 1980 1985 1990 1995 2000 2005 2010
English Language Learners Worldwide
(Millions)
Source: British Council
*Source: U.S. Census Bureau, International Data Base
**Source: ChinaHR.com
2
4. Funding
4
Several Rounds of Financings
Strategic Investors
Most Recent $5 MM investment from Orascom Telecom
Other Sources Of Funding
Less Dilutive
Government Financing
CIDA Inc., Heritage Canada, OMDC and others
Issuance of Shares To Fund Acquisitions
Speak2Me
ELL Technologies
5. Lingo Learning – Publishing
• Partnership with People’s
Education Press (PEP), China’s
MOE Publisher
• Investment in developing
textbooks led to 348 original
titles
• 60% market share*
• 11.7 Million students used PEP
Primary English in 2009
• Co-Published 350 Million units
through PEP
Number of Units Sold
(in Millions)
5
5.0
24.8 27.7
32.5
35.3
40.0
48.9
63.8
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
2001 2002 2003 2004 2005 2006 2007 2008
Number *Primary school market for ELL in China
6. Speak2Me - Social Learning
• Speak2Me acquired in October 2007
• Investment in online platform and portal for
China market
• Launched in China in December 2008
• Social network meets online learning
• Free-to-Consumer: “Fun, Fast, and Free”
• Avatar and state-of-the-art speech
• recognition technology
• 1,500,000 registered users and growing
www.Speak2Me.cn
6
7. Speak2Me’s - Conversational Advertising
How it works?
• Advertisers embed brand in
interactive campaigns with
Speak2Me Lessons
• Content developed around the
brand and integrated into lesson
• Users interacts with brand &
product messaging
• 10 X More effective than banners
It is product placement
taken to an entirely new
level!
7
8. Parlo - Training
• Parlo acquired in Sept 2009
• Investment in fee-based training
platform and LMS
• Developed off-the-shelf and
customized solutions
• Clients
• Universities & Language Centers
• Corporations
• Government
• Focused on spoken English skills
• Available 24/7 and scalable
8
9. Parlo –Launch Client For Training
Client
• China Southern Airlines
• 7,000 Flight Attendants
• China Southern needs to compete on an
international level
• Required a customized solution
Solution
Fully accessible platform for employees
Incorporated brand look and feel into
lessons
Employees learn about and engage with
the airline’s brand
Cost effective
9
10. Parlo Assessment – Launch Client
Client
• Shanghai World Expo 2010
• Expected 70 million visitors
• Challenge to recruit and process volunteer
applications (1.5 million applicants applied)
• Scalable platform solution to assess
80,000 volunteers in English
Solution
Standardized test platform for pre-
screening
Incorporated brand look and feel into
lessons
Volunteers learn about and engage with
the brand
Developed for high volume assessment
10
11. ELL Technologies (Q Group) - Training
11
Acquired in May 2010
Online language training company
Distributors in 11 markets
Includes reading comprehension,
writing skills and SCORM
compliant
Over 1,700 hours of learning
through online, CD-ROMs and
blended learning
12. Growth Strategy
Acquire undervalued assets in line with
operational strategy
Capitalize on R & D from acquisitions
Aggressive sales and marketing in China & India
Expansion of distribution partners in other
markets
Launching new English Online Assessment
Service and Mobile Applications
12
13. Contact Us
Corporate Headquarters
Lingo Media Corporation (TSX-V: LM)
Michael Kraft, President & CEO info@lingomedia.com
151 Bloor Street West, Suite 703 Tel (416) 927-7000 ext. 23
Toronto, Ontario Fax (416) 927-1222
Canada M5S 1S4 www.lingomedia.com
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14. New Product Development - EAP
14
Corporations Job Seeking Websites
Job Applicants
Parlo Internet Based Test
English Qualified Applicants
Individual Applicants
Parlo Internet Based Test
English Qualified Applicants
Distributor
Retailer
End User End User
Become qualified by taking the Parlo Test
Parlo Assessment
Editor's Notes
Let me set the stage with a 2 minute video.
Show Video
Hold National Post – Here is one example how the media is covering the explosion of ELL in China & globally
Now let me tell you about Lingo Media.
-Huge market opportunity for Lingo Media
-The market in China is enormous along with India, Brazil and Russia BRIC has more than 2.85 Billion people
-Why learn English?
-to study abroad
-especially to earn higher salaries
-Lingo Media turned our legacy text book publishing start-up into an innovative, high tech English language online solutions provider now in 11 countries providing online training and testing platforms
Transition :
-S2M: acquired Speak2Me in Taiwan in Fall 2007, the world’s 1st digital English language teacher using avatars and speech recognition, our web development ported the CD Rom’s to online platform and launched a Free-to-Consumer social learning service called Speak2Me.cn
-Our New Media Offering – Speak2me.cn …. Is the leading English Learning Website in China today with more than 1.5MM users
Parlo-acquired Parlo.com and ELL Technolgies marketed under the Q Brand
Parlo-acquired Parlo.com in Sept 2009
Parlo is now Speak2Me with a Learning Management System
-Our Online Training Service -Parlo.com recently launched in China with plans to launch in India
Q Group-acquired in May 2010
Q Group is a leading ELL solution provider is distributed in 11 countries
-We are on a roll now in China and now going global
Legacy Business – 348 Titles and 350 Million Units and 12 Million + Students / Year
-revenues limited b/c our deal is with China gov’t had limitations of how much one can earn but assures payment
Funding
-We have to do whatever it takes to get capital
-Our objective was to look for a strategic investor and we found that investor in Orascom Telecom who participates on the board and opens up biz dev opportunities for us
-Back in 2001, Lingo entered the China market to build a brand
-Gov’t of Canada supported this aggressive market entry along with private placement financings ie. combination of public and private finance
-Gov’t Programs are available and one cannot leave any stone unturned. The best thing about Gov’t Funding is no dilution for current shareholders
-Our strategy is buying undervalued assets at basement pricing
-Speak2Me in Taiwan was the first acquisition in Oct 2007 in the online ELL Market
-Speak2Me.cn focuses on Spoken English addressing the market need with the world’s first scalable English test practice platform
-Growth in Users –we are now positioned to do a deal with a leading SNS to access massive reach
Add Parlo flash slide after
-LM had been a China focused company
-Looked for an acquisition that could provide product expansion and geographic expansion
-Here is a company that fit that model
-Today we are fully integrated and taking advantage of all the synergies and getting ready to launch Q Group in China
-With this acquisition, we are product ready and now transitioning into a sales and marketing company