Enter the cinema of the future…

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


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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

http://empreintes-digitales.fr/medias/images/articles/cinemasalle.jpg


2011 2012

26.0

39.7

Our profile

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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


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Our ambition

To become n°1 in Europe in digital services and technologies

for the cinema industry


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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, 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



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09/30/2012 09/30/2013

27.7 30.1+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


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09/30/2012 09/30/2013

15.2 16.3

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€


+7%

Non-audited figures


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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%


Non-audited figures


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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


Non-audited figures


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A growing customer baseAs 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 09/30/20130

500

1,000

1,500

2,000

2,500

179636

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, 2013Important progress in strategy implementation since the IPO• Strengthening of positions internationally• Creation of a JV with SmartJog/TDF



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Preamble / reminder: the VPF model (Virtual Print Fee) 1/2Financing 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


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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


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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%)


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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


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Summarized Balance sheet

ASSETSTangible assets 41.6 41.7Deferred tax assets 1.3 1.2Other non-current assets 1.6 1.3Current assetsincluding cash

35.611.4

25.45.2

TOTAL ASSETS 80.1 69.7

LIABILITIESShareholder’s equity 19.3 7.9Financial debts (non-current part) 32.2 32.4Other non-current liabilities 2.0 1.9Financial debts (current part) 10.1 11.3Other current assets 16.5 16.2TOTAL LIABILITIES 80.1 69.7

IFRS, 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


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Analysis of Group’s consolidated indebtedness

Cash 11,4 5,2TOTAL CASH 11,4 5,2

Borrowing from credit institutions 3,2 1,9Interest on convertible debenture loan - 2,3Other financial debts 1,8 1,8Factoring of receivables 3,2 2,5TOTAL 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


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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 3.7Cash 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, 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



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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


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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, BeneluxNetwork 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 EuropeRental 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


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Satellite coverage making high-scale European deployment possible



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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 transfersOn-line archiving platform

Other advanced information tools

DCP duplication and transport on physical devicesYmaginet: private network of dematerialized transmission to 450 cinema theatersYmaship: integrated logistics solution for cinemaDCP storage and archiving



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for the DISTRIBUTOR

●A fully integrated service regardless of the delivery model

●Delivery of movies across Europe

for 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 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



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SATELLITE

●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 DEVICESWIRE 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



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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, 250Scandinavia,

600


Competitive environment

No known project

Netherlands, 100

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http://www.deluxedigital.co.uk/


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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



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11/30/2013: EGM of SmartJog-Ymagis Logistics (SYL) validating the contributions of SMARTJOG and YMAGISPro-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 receiverBusiness deployment has already started, with the first contracts expected early 2014 in Western Europe then Eastern Europe

Update early December 2013


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Our priorities

Making a success of the business deployment of SYL and of its installed baseDeploying the signed contracts in SpainDeveloping the customer base in Germany in order to strengthen our penetration in this regionWidening the technological gap by enriching our innovative software offerExtending our geographical reach to new areasFinding new acquisition opportunities making it possible to extend our offer of products and/or services to distributors and exhibitors


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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


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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


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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Enter the cinema of the future…

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