Enter the cinema of the future… DIGITAL TECHNOLOGIES FOR THE CINEMA INDUSTRY Oddo Midcap Forum...
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Transcript of Enter the cinema of the future… DIGITAL TECHNOLOGIES FOR THE CINEMA INDUSTRY Oddo Midcap Forum...
Enter the cinema of the future…DIGITAL TECHNOLOGIES FOR THE CINEMA
INDUSTRY
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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Activity: increase of 9% as at September 30, 2013Financial results: a 27% improvement in the current result before taxes as at June 30, 2013Important progress in strategy implementation since the IPO• Strengthening of positions internationally• Creation of a JV with SmartJog/TDF
YMAGIS, the specialist in digital technologies for the cinema industry
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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Our expertise
Operating at every step of the value chain
Localization Delivery
Distribution
Technical services
and marketing
Installation
& maintenan
ce
ExhibitionProduction
Storage &
archiving
ProductionPost
Production
Financing solutions
Technological solutions
Management of “fees” financing digital
equipment
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
2011 2012
26.0
39.7
Our profile
4
Two buzz words: growth and profitability Prizes: Deloitte In Extenso Fast 50 France 2013 and
Deloitte Fast 500 EMEA 2013 for the strongest growth over 5 years
An innovative company Half the staff made up of engineers and technicians Proprietary software solutions
An international company N°1 in France, in Germany and in Spain (1)
Commercial development in 11 countries The confidence of more than 190 American distributors
and more than 180 European exhibitors More than 2700 VPF screens deployed to date in Europe
A company listed on NYSE Euronext compartment C since May 2013
11.6 M€ raised 21.9% floating capital Isin code: FR0011471291, mnemonic code: MAGIS
(1) Estimate by the company, Spain on the basis of signed VPF screens only.
+53%
Evolution of consolidated revenue
2011 2012
3.9
5.9+50%
Evolution of current operational result
in M€, audited figures
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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Our ambition
To become n°1 in Europe in digital services and technologies
for the cinema industry
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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Our strategy
Extending geographical coverage in Europe Pursuing screen migration
Opening new sites
Acquiring specialized players
Enhancing the offer of new products and services Producers and distributor: development of new services
Exhibitors: extension of the digital services on offer
Preparing the first cycle of equipment renewal A potential market estimated at between 3 500 and 5 000 digital
installations to be renewed per year in Europe (1), with the first renewals expected in 2015
(1) Estimate by the company, on the basis of 36.000 screens in Europe, to be renewed every 7 years on average
Important progress achieved since the IPO
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Activity: an increase of 9% as at September 30, 2013
Financial results: a 27% improvement in the current result before taxes as at June 30, 2013
Important progress in strategy implementation since the IPO• Strengthening of positions internationally• Creation of a JV with SmartJog/TDF
YMAGIS, the specialist in digital technologies for the cinema industry
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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09/30/2012 09/30/2013
27.730.1
+9%
Evolution of revenue 9 months consolidated
in M€
Analysis of activity as at September 30
Share of consolidated revenue as at September 30, 2013, per
geographical area
France54%
(Sept 12 : 55%)
International 46%
(Sept 12 : 45%)
Non-audited figures
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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09/30/2012 09/30/2013
15.216.3
Evolution of consolidated revenue in France
in M€
09/30/2012 09/30/2013
12.513.8+10%
Evolution of consolidated revenueat international level
in M€
Analysis of activity as at September 30
+7%
Non-audited figures
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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Analysis of consolidated revenueat international level (in M€)
Germany Spain Benelux
5.7
1.9
4.2
7.7
3.7
2.3
09/30/2012 09/30/2013
+35%
-46%
+96%
Share of consolidated revenue as at September, 2013, per
geographical area
France54%
Germany26%
Spain12%
Benelux8%
Analysis of activity as at September 30
Non-audited figures
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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Analysis of consolidated revenue of Services segment (in M€)
2.5
8.2
1.7
3.1
4.8
2.4
+27%
-41%
+40%
Evolution of consolidated revenue per segment (in M€)
VPF Services
15.412,3
19.8
10.3
+29%-17%
09/30/2012 09/30/2013
Analysis of activity as at September 30
Non-audited figures
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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A growing customer base
As at September 30, 2013 : 2 751 signed screens with 180 exhibitors 2 361 screens deployed on behalf of 173 exhibitors
2009 2010 2011 2012 HQ1 2013 09/30/2013
0
500
1,000
1,500
2,000
2,500
179
636
1 571
2 1622 286 2 361
Evolution of the number of deployed VPF screens
BeneluxSpainGermanyFrance
i.e. 390 signed screens remaining to be deployed
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Activity: an increase of 9% as at September 30, 2013
Financial results: a 27% improvement in the current result before taxes as at June 30, 2013
Important progress in strategy implementation since the IPO• Strengthening of positions internationally• Creation of a JV with SmartJog/TDF
YMAGIS, the specialist in digital technologies for the cinema industry
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
14
Preamble / reminder: the VPF model (Virtual Print Fee) 1/2
Financing model initiated in the United States and adapted to Europe, facilitating the digital conversion of theaters
Principle: the management of a fee on the contents
●Financial contribution paid by the distributor to cover a part of the investment
●For every new content shown, payment of a “VPF” by the distributor to Ymagis
●These VPF cover between 75% and 85% of the equipment’s cost
●More than 1 000 movie releases every year in Europe(1)
significance of the flows generated
(1) Source : European Audiovisual Observatory
Cost of a 35mm copy delivered to the exhibitor
35 mm movie
Digital movie
savings
Cost of a digital copy
delivered to the exhibitor
Contribution to financing
("VPF")
from year 1 to year 10
Cost of a digital copy
delivered to the exhibitor
savings
starting from year 10
The payment of VPF extends over 7 to 10 years
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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The Third-Party Investors model: YMAGIS finances the digital
equipment, mainly through leasing YMAGIS makes lease payments to
the financial institutions in order to reimburse the leasing
The exhibitor pays Ymagis a contribution towards financing the equipment
A breakdown based on 2 methods
Preamble / reminder: the VPF model (Virtual Print Fee) 2/2
IFRS accounting standards• Restatement of the leases:
In the Income Statement, as financial expenses for the portion relating to financial charges
In the Balance Sheet, as debt reduction for the portion representing the asset
• Posted in the assets of the Balance Sheet and depreciation of the financed equipment over 8 years
• Accounting of the exhibitor’s contribution in the revenue
• Accounting of the contribution in external charges
The Third-Party Collector model: The exhibitor finances its equipment
itself The exhibitor invoices YMAGIS for a
contribution
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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Consolidated summarized Statement of Income
Revenue 20.0 17.7 +13.0%
Operating current income 2.9 2.7 +5.3%
Operating income 2.9 2.7 +5.3%
Financial result (1.2) (1.4) -14.5%
Current income before taxes
1.6 1.3 +27.4%
Taxes on income (0.7) (0.5) +26.9%
Net income (2) 1.0 0.8 +27.3%
IFRS, M€, as at 06/30 (1) 2012 Variation (%)2013
(1) The statements on June 30, 2012& 2013 underwent a limited review by auditors (2) Restated for the element attributable to minority shareholders, the Group’s net income amounts to 955K€ versus 883K€ in first half-
year 2012 (+8,1%)
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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Analysis of expenses structure
Revenue 20.0 17.7 +13.0%
Cost of goods and services (2.5) (3.7) -32.5%In % of revenue 12.5% 20.9%
Salaries & benefits (3.4) (2.4) +41.0%In % of revenue 17.0% 13.6%
External charges (7.4) (5.4) +38.0%In % of revenue 37.1% 30.4%
Depreciation and provisions
(3.8) (3.3) +12.5%
In % of revenue 18.8% 18.9%
Operating current income 2.9 2.7 +5.3%
2012 Variation (%)2013IFRS, M€, as at 06/30 (1)
(1) The statements on June 30, 2012& 2013 underwent a limited review by auditors
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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Summarized Balance sheet
ASSETS
Tangible assets 41.6 41.7
Deferred tax assets 1.3 1.2
Other non-current assets 1.6 1.3
Current assetsincluding cash
35.611.4
25.45.2
TOTAL ASSETS 80.1 69.7
LIABILITIES
Shareholder’s equity 19.3 7.9
Financial debts (non-current part) 32.2 32.4
Other non-current liabilities 2.0 1.9
Financial debts (current part) 10.1 11.3
Other current assets 16.5 16.2
TOTAL LIABILITIES 80.1 69.7
IFRS, M€06/30/201
3 (1)
12/31/2012 (1)
(1) The accounts underwent a limited review by auditors on June 30 and certification on December 31
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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Analysis of Group’s consolidated indebtedness
Cash 11,4 5,2
TOTAL CASH 11,4 5,2
Borrowing from credit institutions 3,2 1,9
Interest on convertible debenture loan - 2,3
Other financial debts 1,8 1,8
Factoring of receivables 3,2 2,5
TOTAL DEBT EXCLUDING LEASE 8,2 8,6
Third-Party Investors – financing lease contracts
34,1 35,1
TOTAL GROSS INDEBTEDNESS 42,3 43,7
NET INDEBTEDNESS 30,9 38,5
in M€ 06/30/2013 (1)
12/31/2012 (1)
(1) The accounts underwent a limited review by auditors on June 30 and certification on December 31
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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Cash flow Statement
Cash flow 7.5 6.0
Negative working capital change (3.0) (1.3)
Cash flow from operations 3.9 3.7
Cash flow from investing activities (2) (2.2) (2.1)
Cash flow from financing (2) 4.6 (2.0)
Net cash flows 6.3 (0.3)
Cash at the end of the period 11.4 3.0
(1) The statements on June 30 underwent a limited review by auditors(2) Excluding investments financed by financial lease contracts
IFRS, M€06/30/2013
(1)
06/30/2012 (1)
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Activity: an increase of 9% as at September 30, 2013
Financial results: a 27% improvement in the current result before taxes as at June 30, 2013Important progress in strategy implementation since the IPO• Strengthening of positions internationally• Creation of a JV with SmartJog/TDF
YMAGIS, the specialist in digital technologies for the cinema industry
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
22
Strengthening of positions internationally
Spain
July 2013: opening of the laboratory in Barcelona
July 2013: 39 additional screens contracted with Balaña network in Spain
September 2013: contract in Spain for 28 screens with Artesiete and 93 screens
with Unión Cine Ciudad
Germany
April 2013: opening of the sales office in Düsseldorf
On September 30, 2013: signature of 34 new agreements with independent distributors
October 2013: opening of the laboratory in Berlin
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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SMARTJOG’s presentation
Business line of TDF specialized in satellite and ADSL delivery of cinema and commercial contents to cinema theaters
Servers and receiving antennae deployed in 9 countries: France, Spain, Portugal, Germany, Austria, Switzerland, Benelux
Network of 1 600 theaters representing 6 000 connected screens
In 2012 delivery of 26 000 movie copies and 140 000 trailer and commercial copies in Europe
Rental of two transponders with a total capacity of 140 Mb/s to Intelsat, the leading satellite services supplier in the world
Original software solution, brought to the JV
Creation of a joint venture with SMARTJOG
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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Satellite coverage making high-scale European deployment possible
Creation of a joint venture with SMARTJOG
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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Activities brought by YMAGIS and SMARTJOG
>
>Birth of the first European
player in integrated logistics of
digital contents for the cinema
industry
DCP transport by satellite and terrestrial line
Software solution allowing the management of
cinema file transfers
On-line archiving platform
Other advanced information tools
DCP duplication and transport on physical devices
Ymaginet: private network of dematerialized transmission to 450 cinema theaters
Ymaship: integrated logistics solution for cinema
DCP storage and archiving
Creation of a joint venture with SMARTJOG
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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for the DISTRIBUTORfor the DISTRIBUTOR
●A fully integrated service regardless of the delivery model
●Delivery of movies across Europe
for the EXHIBITORfor the EXHIBITOR
●Limitation or suppression of logistics / handling of hard disks
●Reduction of costs related to physical devices
●Continuation of cabin automation
●Wider access to the contents
for YMAGISfor YMAGIS
●A vector of business acceleration
●A business point of entry to sell additional services
●Ultimately, a decrease in delivery costs
An offer to answer the sector’s needs
Creation of a joint venture with SMARTJOG
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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SATELLITESATELLITE
●Allows the management of copies’ “circulation” thanks to pre-loading
●Premium to the widest network
●Allows coverage of a wide area to distribute pan-European movies (studios)
●Option valid for “large” national releases by local distributors
A unique offer in Europe, making it possible to optimize technical means
● Economic vector for limited releases
● Makes it possible to offer an immediate solution in countries not well-equipped with satellite / ADSL receivers
● Ensures the movie release on every site, even in case of receiver breakdown
PHYSICAL DEVICESPHYSICAL DEVICESWIRE LINKSWIRE LINKS
● Ensures the distribution of limited releases
● The “dropped packets” of a satellite diffusion may go through ADSL or fiber
● Answers an emerging demand for content download on demand by theaters
YMAGIS, the only European player capable of offering an integrated solution
Creation of a joint venture with SMARTJOG
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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-
Number of connected
sites
Geographical coverage+
+
-
Europe, 1 800
4 countries, 700
Europe, 1 000France, 600
France, 0 ADSL/Fiber project
UK, 250
Scandinavia, 600
Creation of a joint venture with SMARTJOG
Competitive environment
No known project
Netherlands, 100
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Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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Q4 2013 / early 2014 : Effective capital contribution on 11/30/2013 Start of the new entity, Smartjog Ymagis Logistics Implementation of a unified business policy Evolution of the business model for terminal availability Implementation of the necessary financing for the business
extension Continuation of the deployment of receiver terminals
2014 : Negotiation of local or pan-European agreements with
distributors Acceleration of the deployment in France and in the rest of
Europe
The roadmap
Creation of a joint venture with SMARTJOG
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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Creation of a joint venture with SMARTJOG
11/30/2013: EGM of SmartJog-Ymagis Logistics (SYL) validating the contributions of SMARTJOG and YMAGIS
Pro-forma 2013 SYL income of around 7 M€ increasing by 14% vs 2012
Accounting integration from December 1st , 2013 in the YMAGIS accounts
A team of 25 people, including 12 from YMAGIS, who will operate from YMAGIS offices
1 800 theaters connected in Europe of which 1 600 equipped with a transmission receiver
Business deployment has already started, with the first contracts expected early 2014 in Western Europe then Eastern Europe
Update early December 2013
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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Our priorities
Making a success of the business deployment of SYL and of its installed base
Deploying the signed contracts in Spain
Developing the customer base in Germany in order to strengthen our penetration in this region
Widening the technological gap by enriching our innovative software offer
Extending our geographical reach to new areas
Finding new acquisition opportunities making it possible to extend our offer of products and/or services to distributors and exhibitors
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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31.55%
23.99%
22.58%
21.88%
38.79%
24.23%
23.36%
13.61%
Founders OTC AM Odyssée Venture Public
Capital distribution
Voting rights distribution
Share characteristics
ISIN code: FR0011471291
Reuters code: MAGIS.PABloomberg code: MAGIS:FP
Market compartment: NYSE Euronext CNumber of shares: 6
495 531Average number of shares/day: 3
266over three rolling month on 01/06/2014
Stock price on 01/06/2014: 7.30 €Capitalization on 01/06/2014: 47.4 M€
Highest 12 months: 7.60 € (10/18/2013)
Lowest 12 months: 6.52 € (09/03/2013)
Stock price evolution since the IPO
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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Financial communication Agenda 2013/2014
February 11, 2014: turnover for 2013
March 25, 2014: results for 2013
May 13, 2014: turnover for 1st quarter 2014
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
Websitewww.ymagis.fr
Investors’ contacts:
Jean-Marie DURAManaging Director01 79 97 78 [email protected]
ACTIFIN (financial communication)Alexandre COMMEROT01 56 88 11 [email protected]
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