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 24 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 34 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014