Enter the cinema of the future…
DIGITAL TECHNOLOGIES FOR THE CINEMA INDUSTRY
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
YMAGIS, the specialist in digital technologies
for the cinema industry
Activity: 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
2
Our expertise
Technological solutions
Financing
solutions
Production
Management of “fees”
financing digital equipment
Production
Post
Production
Storage
&
archiving
Distribution
Localization
Delivery
Exhibition
Installation
&
maintenance
Technical
services and
marketing
Operating at every step of the value chain
3
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
Our profile
Two buzz words: growth and profitability
Evolution of consolidated
revenue
 Prizes: Deloitte In Extenso Fast 50 France 2013 and Deloitte Fast
500 EMEA 2013 for the strongest growth over 5 years
+53%
39.7
26.0
An innovative company
 Half the staff made up of engineers and technicians
 Proprietary software solutions
2011
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.
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
2012
Evolution of current
operational result
+50%
5.9
3.9
2011
2012
in M€, audited figures
4
Our ambition
To become n°1 in Europe
in digital services and technologies
for the cinema industry
5
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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
6
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
YMAGIS, the specialist in digital technologies
for the cinema industry
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
7
Analysis of activity as at September 30
Evolution of revenue
9 months consolidated
in M€
Share of consolidated revenue
as at September 30, 2013, per geographical area
+9%
27.7
30.1
International
46%
(Sept 12 : 45%)
France
54%
(Sept 12 : 55%)
09/30/2012
09/30/2013
Non-audited figures
8
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
Analysis of activity as at September 30
Evolution of consolidated revenue
in France
in M€
15.2
+7%
Evolution of consolidated revenue
at international level
in M€
16.3
+10%
12.5
09/30/2012
09/30/2013
09/30/2012
13.8
09/30/2013
Non-audited figures
9
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
Analysis of activity as at September 30
Analysis of consolidated revenue
at international level (in M€)
+35%
Share of consolidated revenue
as at September, 2013, per geographical area
7.7
Benelux
8%
-46%
5.7
+96%
3.7
1.9
Germany
09/30/2012
Spain
Spain
12%
4.2
2.3
Benelux
France
54%
Germany
26%
09/30/2013
Non-audited figures
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
10
Analysis of activity as at September 30
Evolution of consolidated revenue
per segment (in M€)
Analysis of consolidated revenue
of Services segment (in M€)
-41%
+29%
19.8
8.2
-17%
15.4
12,3
+27%
10.3
2.5
4.8
+40%
3.1
1.7
VPF
09/30/2012
Services
Laboratory
2.4
Equipment
Online Support
sales/installation
Services /
Maintenance
09/30/2013
Non-audited figures
11
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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
i.e. 390 signed screens
remaining to be deployed
Evolution of the number of deployed VPF screens
2,500
2 162
2,000
1,500
Benelux
Spain
Germany
France
1,000
500
2 286
2 361
HQ1 2013
09/30/2013
1 571
636
179
0
2009
2010
2011
2012
12
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
YMAGIS, the specialist in digital technologies
for the cinema industry
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
13
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
35 mm movie
Digital movie
Principle: the management of a
fee on the contents
●Financial contribution paid by
the distributor to cover a part of
the investment
savings
●For every new content shown,
payment of a “VPF” by the
distributor to Ymagis
Contribution
to financing
("VPF")
savings
Cost of a 35mm
copy delivered to
the exhibitor
●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
Cost of a digital
copy delivered to
the exhibitor
Cost of a digital
copy delivered to
the exhibitor
from year 1 to year 10
starting from year 10
The payment of VPF extends over
7 to 10 years
(1) Source : European Audiovisual Observatory
14
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
Preamble / reminder:
the VPF model (Virtual Print Fee) 2/2
A breakdown based on 2 methods
IFRS accounting standards
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
• 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
The Third-Party Collector model:
 The exhibitor finances its equipment itself
 The exhibitor invoices YMAGIS for a
contribution
• Accounting of the contribution in
external charges
15
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
Consolidated summarized Statement of Income
IFRS, M€, as at 06/30 (1)
2013
2012
Variation (%)
Revenue
20.0
17.7
+13.0%
Operating current income
2.9
2.7
+5.3%
Operating income
2.9
2.7
+5.3%
(1.2)
(1.4)
-14.5%
1.6
1.3
+27.4%
(0.7)
(0.5)
+26.9%
1.0
0.8
+27.3%
Financial result
Current income before taxes
Taxes on income
Net income (2)
(1)
(2)
The statements on June 30, 2012& 2013 underwent a limited review by auditors
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%)
16
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
Analysis of expenses structure
IFRS, M€, as at 06/30 (1)
2013
2012
Variation (%)
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)
In % of revenue
17.0%
13.6%
External charges
(7.4)
(5.4)
In % of revenue
37.1%
30.4%
Depreciation and provisions
(3.8)
(3.3)
In % of revenue
18.8%
18.9%
2.9
2.7
Operating current income
(1)
+41.0%
+38.0%
+12.5%
+5.3%
The statements on June 30, 2012& 2013 underwent a limited review by auditors
17
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
Summarized Balance sheet
IFRS, M€
06/30/2013 (1)
12/31/2012 (1)
ASSETS
Tangible assets
41.6
41.7
Deferred tax assets
1.3
1.2
Other non-current assets
1.6
1.3
35.6
25.4
11.4
5.2
80.1
69.7
Shareholder’s equity
19.3
7.9
Financial debts (non-current part)
32.2
32.4
2.0
1.9
Financial debts (current part)
10.1
11.3
Other current assets
16.5
16.2
80.1
69.7
Current assets
including cash
TOTAL ASSETS
LIABILITIES
Other non-current liabilities
TOTAL LIABILITIES
(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
18
Analysis of Group’s consolidated indebtedness
06/30/2013 (1)
in M€
12/31/2012 (1)
Cash
11,4
5,2
TOTAL CASH
11,4
5,2
3,2
1,9
-
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
30,9
38,5
Borrowing from credit institutions
Interest on convertible debenture loan
NET INDEBTEDNESS
(1)
The accounts underwent a limited review by auditors on June 30 and certification on December 31
19
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
Cash flow Statement
06/30/2013
IFRS, M€
(1)
06/30/2012 (1)
7.5
6.0
(3.0)
(1.3)
3.9
3.7
(2.2)
(2.1)
Cash flow from financing (2)
4.6
(2.0)
Net cash flows
6.3
(0.3)
11.4
3.0
Cash flow
Negative working capital change
Cash flow from operations
Cash flow from investing activities (2)
Cash at the end of the period
(1) The statements on June 30 underwent a limited review by auditors
(2) Excluding investments financed by financial lease contracts
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
20
YMAGIS, the specialist in digital technologies
for the cinema industry
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
21
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
22
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
Creation of a joint venture with SMARTJOG
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
23
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
Creation of a joint venture with SMARTJOG
Satellite coverage making high-scale European deployment possible
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Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
Creation of a joint venture with SMARTJOG
Activities brought by YMAGIS and SMARTJOG
Software solution allowing the
management of cinema file
transfers
On-line archiving platform
Other advanced information
tools
>
Birth of the first
European player
in integrated
logistics of
digital contents
for the cinema
industry
>
DCP transport by satellite and
terrestrial line
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
25
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
Creation of a joint venture with SMARTJOG
An offer to answer the sector’s needs
for the DISTRIBUTOR
●A fully integrated service
regardless of the delivery
model
●Delivery of movies across
Europe
for the EXHIBITOR
for YMAGIS
●Limitation or suppression of
logistics / handling of hard
disks
●A vector of business
acceleration
●Reduction of costs related to
physical devices
●A business point of entry to sell
additional services
●Continuation of cabin
automation
●Ultimately, a decrease in
delivery costs
●Wider access to the contents
26
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
Creation of a joint venture with SMARTJOG
A unique offer in Europe, making it possible to optimize technical means
SATELLITE
PHYSICAL DEVICES
WIRE LINKS
●Allows coverage of a wide area
to distribute pan-European
movies (studios)
● Ensures the distribution of
limited releases
● Economic vector for limited
releases
●Option valid for “large” national
releases by local distributors
● The “dropped packets” of a
satellite diffusion may go
through ADSL or fiber
● Makes it possible to offer an
immediate solution in countries
not well-equipped with satellite
/ ADSL receivers
● Answers an emerging demand
for content download on
demand by theaters
● Ensures the movie release on
every site, even in case of
receiver breakdown
●Allows the management of
copies’ “circulation” thanks to
pre-loading
●Premium to the widest network
YMAGIS, the only European player capable of offering an integrated solution
27
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
Creation of a joint venture with SMARTJOG
Competitive environment
Number of
connected sites
+
Europe, 1 800
Europe, 1 000
France, 600
Scandinavia, 600
4 countries, 700
UK, 250
-
+ Geographical
coverage
Netherlands, 100
France, 0
ADSL/Fiber project
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
28
No known project
28
Creation of a joint venture with SMARTJOG
The roadmap
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
29
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
Creation of a joint venture with SMARTJOG
Update early December 2013
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
30
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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
31
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
Share characteristics
Capital
distribution
Voting rights
distribution
ISIN code:
Reuters code:
Bloomberg code:
13.61%
21.88%
31.55%
FR0011471291
MAGIS.PA
MAGIS:FP
38.79%
23.36%
22.58%
Market compartment: NYSE Euronext C
Number of shares:
6 495 531
Average number of shares/day:
3 266
23.99%
24.23%
Founders
OTC AM
Odyssée Venture
Stock price evolution since the IPO
Public
over three rolling month on 01/06/2014
Stock price on 01/06/2014:
Capitalization on 01/06/2014:
7.30 €
47.4 M€
Highest 12 months:
Lowest 12 months:
7.60 € (10/18/2013)
6.52 € (09/03/2013)
32
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
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
33
Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014
Website
www.ymagis.fr
Investors’ contacts:
Jean-Marie DURA
Managing Director
01 79 97 78 67
investisseurs@ymagis.com
ACTIFIN (financial communication)
Alexandre COMMEROT
01 56 88 11 11
ymagis@actifin.fr
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Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014