Comfy business partners presentation 2011

Comfy 2011

© All right reserved

Company Overview ● 2003 - Founded by private investors and acquired the

Comfy brand and Intellectual Property.

● 2007 - Dov Moran founder of M-systems (sold to SanDisk for $1.65B ) invested in Comfy

● 2008 - launched an entertainment centers business unit.

● 2009 - opened a NJ based USA subsidiary.

● 2011 - launched it’s a new media & gaming business unit targeting the streamers, consoles, tablets & connected TV market.

● partnership with strategic CE providers utilizing its gamepad &content localized into 23 different languages.

● Becoming the hub for Israeli based innovation into the global edutainment market.

Mr. Shachar Erez – Chairman Managing partner in Evergreen, one of Israel's largest VCs. Former President & CEO of Nur Macroprinters (NASDAQ: Nurm)

Main Share Holders

Mr. Yoav (Hillel, & Naftaly) Merari Well-established entrepreneurs, first investor in Comfy

Mr. Shahal Shai – Founder & CEO

Mr. Dov Moran

Founder of Modu, Founder and former president of Msystems and the inventor of the flash memory. The company was acquired by Scandisk in a 1.55 Billion USD deal in 2006.

The Opportunity

● Early education is perceived as a key

success factor in life.

● Toddlers are exposed to interactive

environment in their day to day life, and are

extremely curious about it. This latent

learning motivation is a great tutoring

resource!

● Adjusting Consumer electronics “adult”

user interface to the need and capabilities

of children can turn this curiosity into an

effective learning tool.

How we operate

We leverage our core assets into Three synergic

business units;

Digital Content,

Pedagogical

research,

Products

New media Edutainment

Centres

Consumer

Products

Pedagogical Concept

Curiosity

Confidence

Challenge

A child is born with natural curiosity.

We Provide the child with

age/developmental appropriate

rich and fun content.

Acquiring the sense of control improves

the child's confidence and self-esteem.

Our Target Market

Prime target market

● “First time mom”

● Involved in raising their kids

● Positive attitude to technology and daily access

to PC at home

● Competitive moms

● Middle & upper class

Secondary target market

● Dads (gadget fans, “guilty daddy toy buyers”)

● Grandparents

● Relatives and care givers

● Other vertical target markets (special

needs, kindergartens, Family Entertainment

Centers)

Our product lines

Consumer products business unit

Toy & games Market & Trends

● $138B market in 2009 worldwide (including the video game market).

● Toy specialties (e.g. Toys R Us) are competing with general mass through differentiation

by adding entertainment or educational experience on top of their larger assortment.

● Fast growing video game market is chasing toy dollars and surpluses the US traditional

Toy & games market already in 2008

● Learning platforms are displacing stand

alone toys.

● Kids are getting older younger, & moving to gaming;

*Source : NPD, report , April 10

** Source: Gartner

2015 2013 2011

$27.3B $24.6B $17.8B Hardware

$56.5B $51.1B $44.7B software

$28.3B $21.4B $11.7B online

$112.1B $97.1B $74.4B total

gaming**Total spending on

Easy PC Learning System ● Enable kids to interact effectively with mom & dad PC from

age 12 months.

● Game console type recurring revenue model, Hardware and

13 different software titles, in 10-21 different languages

embedded into the system.

● 17 educational & international

awards including PC magazine

hottest kids friendly gadgets.

● A Huge success story in its

local market.

PLUG ’n PLAY PHONE

● Toddlers PC-Phone learning system

● Develops communication & listening skills

● On-screen characters react to your

child’s voice

iMote – Child’s Remote Control

Walled garden Content with on site & on line reprogramming ability

Transparent buttons For visual navigation

Volume limits and On/off delay

Child’s independency With parent gadget

Rubber Grips for Child’s hands

Sealed battery door To meet Toy safety standard

iCam FETURES ● Specially designed magic wands for Edu-Physical learning

● Learn spelling and Math while moving and having fun!

● Multi-level activities – progress at your own pace

● 10 educational and fun activities

● additional games available to download from the internet

INCLUDES

● Two magic wands for one

or two players,

● magic driving wheel,

● PC webcam,

● "Move & Groove“ CD &

parent guide

(No Batteries Required)

Point of Sale display

Comfy Edutainment Centers

Business Unit

Product & Market

● A 70 sq. meter indoor educational playground for toddlers.

● Launched in 2007 and won industry’s best product of the year.

● Over 100 Installations around the world in five continents.

● an estimated $40 billion market divided into 3 major segments:

*Source: PWC: global entertainment and media outlook

** 23 billion include destination and regional parks only

● Destination parks (more then 2 days average stay)

● Regional parks (200 miles region).

● Local entertainment centers in shopping malls,

museums, daycare centers, gym complexes,

family resorts, etc**.

Comfy Retail-tainment solutions Enhancing the specialty retail buying experience with

educational entertainment - watch movie

New media business unit - Comfy 2.0 Connected TV, Game portals, Mobile & Tablets, cloud gaming

groundbreaking changes in the

toy, games & TV industry

• Free apps, online casual & social games are “eating” the

traditional toys & console based video game industry’s

lunch!*

• Netflix became the largest TV operator in the USA (23M

subs) about 75% of the customers use their game consoles

as their TV streamers

*“iPhone/ iPad have great kids Apps but at some point Mummy will want her iPhone/ iPad back. so we see the

Apps world not only as a great business, but also as an appetizer for our console business”.

New & exciting distribution channels

provide new opportunities

Comfy 2.0 content configuration

& new channels Roadmap when Sales channels Comfy UI Hardware Device UI

Content configuration

current Retail Tangible

Keyboard

“3 foot” UI (Keyboard &

mouse)

CD ROM

2011

Retail & HTPC

partnerships

Tangible

W/L

Keyboard

(IR/RF

according

to cost)

“10 foot” UI (HTPC/

streamers)

Open browser

Streaming content

Retail & game portals/

ISP’s

partnerships

“3 foot” UI PC Keyboard

& mouse (desktop/

laptop)

2012

Retail & game consoles

partnerships “10 foot” UI dedicated

RF based controllers

API compatiable

streaming/ DLC content

2012

Retail & connected TV

vendors partnerships

10 foot UI

(connected TV/ smart

TV)

Pre-loaded or down-

loaded Apps

Mobile App stores

cellular carriers

partnerships

Touch

navigation

3 foot “touch” UI (4',

7', 10' smartphone/

tablets)

2012

INTOeTV

Comfy 2.0 – what's new?

• New hardware enabling devices • streamers, tablets, connected TV, game consoles

• New content business model • subscription, pre installed App or in-App sales biz models

• New content coming soon

• New distribution channels • CE retail, video game retailers, game portals, MSO’s

• New potential strategic partners, • streamers, consoles, & connected TVs, HW manufacturers, MSO &

cellular operators

• New home entertainment location • from PC environment to the living room TV & handheld environments

• Brand re-positioning • new media toddler Edutainment

Comfy – the “Netflix” of toddlers

interactive entertainment

• Netflix is larger then Comcast with 23M subscribers! & 30% of the internet

downstream the USA!*

• Netflix is multiplatform compatible working with all major hardware devices

• Netflix is being watched mainly with game consoles (66%) with PS3 (30%)

Xbox (25%) and Wii (11%)* and just 20% with PC

* Source: Sandive

Two parallel product lines !

Bundle with 1 CD game, USB cord,

PC & Mac only compatibility

Lower retail price with one week free

subscription, wireless USB, multi

device compatibility

current 2011 – 2012 addition

Thank you!