PANTALEON(ENTERTAINMENT(AG(
Company(Profile(
March(2015(
(
PANTALEON((ENTERTAINMENT((AG(
PANTALEON((ENTERTAINMENT((AG(
DISCLAIMER(
MARCH(2015(
Information( contained( in( this( profile( does( not( construe( an( offer,( recommendation( or(
endorsement(to(purchase(equity(investments,(to(engage(in(business(transactions(or(conclude(
any( legally( binding( business.( Information( and( opinions( expressed( herein( are( published( by(
PANTALEON( Entertainment( AG( for( personal( information( and( use( only;( they( are( subject( to(
change( at( any( time( without( prior( announcement.( PANTALEON( Entertainment( AG( does( not(
guarantee( (implicitly( or( explicitly)( accuracy,( completeness( or( currency( of( any( information( or(
opinions( contained( herein.( In( particular,( PANTALEON( Entertainment( AG( is( not( obliged( to(
remove(or(explicitly(designate(outdated(information.(The(information(contained(in(this(profile(is(
are(not(intended(as(the(basis(for(financial,(legal,(tax(or(other(business(decisions.(Investment(or(
other( decisions( may( not( be( made( on( the( basis( of( this( profile( alone.( As( in( all( business( and(
investment(matters,(please(consult(qualified(expert(advice.(
(
04/07/2015( PANTALEON((ENTERTAINMENT((AG(
2(
MISSION(STATEMENT(
NATIONAL(BLOCKBUSTERS(AS(PROTOTYPE(FOR(INTERNATIONAL(SUCCESS.(
Mission:'"Gripping'films'for'a'wide'audience."'
(
The(PANTALEON(Group(stands(for(the(next(generation(of(European(film(makers.(PANTALEON(Creative(Scouts(
have(their(finger(on(the(pulse(of(the(times,(in(close(contact(with(the(top(creative(talents(of(today(and(tomorrow.(
Finding(their(stories(and(putting(them(up(on(the(big(screen,(entertaining(people(and(helping(define(the(Zeitgeist(
of(a(whole(generation,(is(part(of(our(mission.(
Reliability(and(responsibility,(perfection(and(passion(are(living(traits(the(PANTALEON(Group(aspires(to.(These(
are(the(qualities(with(which(PANTALEON(strives(to(entertain(its(growing(audience,(in(all(delivery(forms,(around(
the(world.(
(
(
04/07/2015( PANTALEON((ENTERTAINMENT((AG(
3(
CONTENTS(
((
(EXECUTIVE(SUMMARY(
(PANTALEON(GROUP(
•
•
•
•
•
The(Company(
Data(&(Facts(
Organizational(Structure(
Management(
Company(History(
(BUSINESS(MODEL
((
•  Overview(
•  Film(Production(and(Marketing(
•  Optimized(risk\to\return(ratio(
•  References(
•  Project(Pipeline(
•  The(Secret(of(PANTALEON's(Success(
(MARKET(
•  Market(Position(
•  Growth(Factors(
•  Digital(Distribution(
(OUTLOOK(
(THE(STOCK(
(CONTACT(
04/07/2015( PANTALEON((ENTERTAINMENT((AG(
(
4(
EXECUTIVE(SUMMARY ((
GRIPPING(FILMS(FOR(A(WIDE(AUDIENCE.(
Company(
(
(
(
(
(
(German\based(production(company(for(commercial(theatrical(films(
(
(
(
(Market(leader(thanks(to(string(of(blockbusters(
(Additional(value(created(by(commisioned(productions,(product(placement(and(
(branded(entertainment(
Team(
(
(Experienced(management,(highly(motivated(staff,(lots(of(creative(capital((
(Develop,(finance(and(produce(theatrical(feature(films,(distributed( (
Business(Model(
(
(
(
(
(
(
(
(
(through(leading(national(and(international(partners(over(all(stages(of(
(the(exploitation(chain(
(Revenue(sources:(Producer's(fee,(exploitation(profits,(rights(library(
(Business(model(with(limited(risk(and(large(upside(potential(
(
Market(
(
(Growth(market("Filmed(Entertainment"(with(strong(growth(in(digital(
(markets((
Outlook(
(
(Diversification(and(expansion(by(genres,(talent(and(regions((
04/07/2015( PANTALEON((ENTERTAINMENT((AG(
(
5(
THE(PANTALEON(GROUP(
THE(COMPANY(
PANTALEON(Entertainment(AG(is(a(fast\growing,(independent(German(media(company(mainly(
focused( on( theatrical( feature( films.( The( firm( focuses( on( the( development( and( production( of(
commerically( successful( feature( films,( chalking( up( a( unique( track( record( of( hits( since( it( was(
founded(in(2009.(Since(then,(every(single(PANTALEON(production(has(debuted(at(No.(1(on(the(
German(box(office(charts,(each(one(becoming(one(of(the(most(successful(German(films(of(that(
year.(
((
This(string(of(box\office(successes(has(allowed(PANTALEON(to(build(a(valuable(rights(library(that(
will( continue( to( generate( revenue( for( many( years( to( come,( based( on( each( film's( commercial(
success.( PANTALEON(Group( markets( each( film( as( an( independent( producer( and( rights( holder(
nationally( and( internationally,( working( with( globally( active( major( studios( like(Warner( Bros.,( in(
order( to( profit( from( the( distibution( clout( and( global( network( of( these( distribution( market(
leaders.(
((
As( a( holding,( the( PANTALEON( Entertainment( Group( includes( three( one\hundred( percent(
subsidiaries( that( handle( its( day\to\day( business:( PANTALEON( Films( GmbH( as( producer( and(
rights(holder;(PANTALEON(Pictures(GmbH(as(commissioned(film(producer;(and(March(&(Friends(
GmbH(as(agency(for(product(placement(and(branded(entertainment.(
04/07/2015( PANTALEON((ENTERTAINMENT((AG(
(
6(
THE(PANTALEON(GROUP(
DATA(&(FACTS((
Name(
(PANTALEON(Entertainment((AG(
Incorporated(in(
(Kronberg(im(Taunus(
Founded(
(2009(
Subsidiaries(
(PANTALEON(Films(GmbH((100%),(PANTALEON(Pictures(GmbH((100%),(
March&Friends(GmbH((100%)(
Offices(
(Munich,(Frankfurt,(Berlin((
Shares(Issued
((1,000.000.00(
Shareholders(
(BlackMars(Capital(GmbH((90%),(publicly(held((10%)((
Stock(Market(
(Entry(Standard(\(Frankfurt(Stock(Exchange((
ISIN
(DE000A12UPJ7(
(
04/07/2015( PANTALEON((ENTERTAINMENT((AG(
(
7(
THE(PANTALEON(GROUP(
ORGANIZATIONAL(STRUCTURE(
PANTALEON(Entertainment(AG((Kronberg(im(Taunus)(
PANTALEON(Group(Holding(Company(
Strategic(management,(general(management,(business(development,(
investor(relations(
100%(subsidiary(
PANTALEON(Films(GmbH(
(Munich)(
InBhouse(productions(and(rights(
holder(of(PANTALEON(Group(
Development,(financing,(
exploitation,(rights(library(
(
100%(subsidiary(
PANTALEON(Pictures(GmbH(
(Munich)(
Commissioned(productions(of(
PANTALEON(Group(
Full(service(provider(for(the(entire(
process(of(film(production(
(
04/07/2015( PANTALEON((ENTERTAINMENT((AG(
(
100%(subsidiary(
March(&(Friends(GmbH(
(Munich)(
Agency(of(PANTALEON(Group(
Social(media,(product(
placement,(branded(
entertainment(
8(
THE(PANTALEON(GROUP(
MANAGEMENT(DAN(MAAG(|(CEO(
Dan(Maag((born(1975)(has(been(producing(theatrical(feature(films(since(1999,(including(
numerous(English\language(productions(such(as("Dead(Fish"((2004)(starring(Gary(Oldman(
and(Robert(Carlyle,(internationally(successful(thriller("Open(Water(2"((2006),(as(well(as(the(
drama("Streets(of(Rio"((2007),(shot(in(the(favelas(of(Brazil.(Along(with(producing(films,(Dan(
Maag(served(as(line(producer(for(various(film(financing(and(production(companies,(including(
numerous(major(international(productions,(such(as(Oliver(Stone's(historical(epic(
"Alexander"((2004)(starring(Colin(Farrell(and(Angelina(Jolie,(Martin(Scorsese's(
"Aviator"((2004)(starring(Leonardo(DiCaprio,(as(well(as(Michael(Caton\Jones’("Basic(Instinct(
2"((2006)(starring(Sharon(Stone.((
((
His(German\language(productions(include(No.1(box\office(hits(like("What(a(Man",("The(
Break\Up(Artist",("Mrs.(Ella",("Joys(of(Fatherhood"(or("The(Nanny".(
In(2012,(he(became(CEO(of(PANTALEON(Entertainment(GmbH,(which(he(runs(as(chairman(
of(the(board(since(its(conversion(to(a(publicly\held(company.(
((
As(chairman,(he(is(responsible(for(the(day\to\day(business(of(PANTALEON(Group.(Thanks(to(
his(many(years(of(international(production(experience,(a(global(network(in(the(
entertainment(industry(and(his(pronounced(entrepreneurial(spirit,(he(contributes(in(large(
part(to(the(success(of(the(PANTALEON(Group.(
04/07/2015( PANTALEON((ENTERTAINMENT((AG(
(
9(
THE(PANTALEON(GROUP(
COMPANY(HISTORY(
2009
(PANTALEON(Entertainment(GmbH(incorporated(in(Berlin((
2010((((((((PANTALEON(Films(GmbH(founded(as(100%(subsidiary(
2012
(Dan(Maag(named(GM(of(PANTALEON(Films(GmbH(and(PANTALEON(Entertainment(GmbH((
2012
(Partnership(with(Warner(Bros.(begins((
2014
(Preparations(for(IPO:(PANTALEON(Entertainment(GmbH(reincorporated(as(PANTALEON(
(Entertainment(AG(in(Kronberg/Taunus,(accumulation(of(equity(capital(
2014
(Organizational(restructuring:(March(&(Friends(GmbH(subsumed(unter(holding,(PANTALEON(
(Pictures((GmbH(founded((
2014 (
(With("The(Nanny"(and("Highway(to(Hellas",(two(films(were(produced(concurrently(for(the(
(first(time,(both(releasing(in(2015(in(Germany((
2015
(Initial(public(offering(PANTALEON(Entertainment(AG(as(Entry(Standard(Listing(on(Frankfurt(
(Stock(Exchange(
(
04/07/2015( PANTALEON((ENTERTAINMENT((AG(
(
10(
BUSINESS(MODEL(
OVERVIEW(
The( core( business( of( PANTALEON( Group( is( the( in\house( production( of( theatrical( feature( films.(
PANTALEON(develops,(finances(and(produces(its(own(feature(films(and(exploits(them(nationally(and(
international(with(leading(partners(on(all(stages(of(the(distribution(chain.(
((
PANTALEON(films(are(targeted(at(a(wide(audience(and(at(commercial(success.(This(exploitation(takes(
place(on(3(levels:(
•  Produktion(
( "Made( by( PANTALEON,( from( first( idea( to( finished( film"( –( this( complete( control( of( the(
(production(process(results(in(an(optimized(risk/profit(ratio.(PANTALEON(usually(finances(less(
(than(5%(of(the(budget(of(its(films,(while(retaining(over(60%(participation(in(back\end(results(
(over(all(exploitation(stages(
•  Exploitation((
( As( producer( of( its( films,( PANTALEON( participates( in( results( from( all( stages( of( the(
(exploitation(process(according(to(the(profit(spilt(negotiated(with(distrib(partners(
•  Rights(Library((
(PANTALEON(retains(as(many(rights(as(possible(in(its(in\house(productions(
(
In(addition,(PANTALEON(subsidiary(PANTALEON(Pictures(GmbH(offers(for\hire(production(services(
for(media(products,(as(well(as(services(in(the(areas(of(social(media,(product(placement(and(branded(
entertainment(through(agency(March(&(Friends(GmbH.(
(
04/07/2015( PANTALEON((ENTERTAINMENT((AG(
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11(
BUSINESS(MODEL(
(STREAMLINED(PRODUCTION(PROCESS(AND(LEADING(DISTRIBUTION(´PARTNERS(
PANTALEON( develops,( finances( and( produces( theatrical( feature( films( and( exploits( them( together(
with( leading( sales( partners( like( Warner( Bros.,( nationally( and( internationally,( over( all( distribution(
stages.(The(company(controls(all(value\creating(stages(of(the(production(process,(and(subsequently(
participates(in(all(stages(of(the(exploitation(chain.(
Development(
Up(to(2(years(
(
Pre\
Production(
Financing((
Up(to(3(months(
(
Up(to(3(
months(
Principal(
Photography((
Up(to(3(months(
Postproduction(
(
Up(to(6(months(
Release((
Begins(with(
theatrical(
release
(
(
((
Budget(max.(100(k(
EUR(
Budget(1.5(to(10(mill.(EUR(/(Max.(5%(PANTALEON(share(
(
Over( all( stages( of( distribution,( PANTALEON( films( reach( an( average( of( 15( million( people,(
rendering( them( an( attractive( commercial( platform( for( industry( partners,( making( additional(
revenue(streams(available(to(PANTALEON(Group(via(product(placement.(
Theatrical((
Blu\Ray(/(
DVD(Rentals((
04/07/2015( PANTALEON((ENTERTAINMENT((AG(
(
DVD(Sales(
Pay\TV(
Free\TV(
12(
BUSINESS(MODEL(
REFERENCES(\(IN\HOUSE(PRODUCTIONS((
February(2014(
"Joys(of(Fatherhood"(launches(at(No.(1(on(German(box\office(charts,(becoming(one(of(the(top(
German(films(of(the(year,(with(2.36(million(tickets(sold(
((
October(2013(
"Mrs.(Ella"(also(launches(at(No.(1(on(German(box\office(charts,(selling(1.2(million(tickets(
((
November(2013(
"Schlussmacher"((remade(as("The(Break\Up(Man")(wins(Austrian(film(prize(ROMY,(MTV(Movie(
Award,(the(German(Film(Prize(and(a(BAMBI(as("Best(Film(national"(
((
January(2013(
( "Schlussmacher"( launches( at( No.( 1( on( German( box\office( charts,( becoming( one( of( the( top(
German(films(of(the(year,(with(2.5(million(tickets(sold(
((
November(2012(
"What(a(Man"(released(in(USA.(The(New(York(Times(calls(star/director(Matthias(Schweighöfer(
"a(talent(to(watch"(and(heralds(his(international(debut(
((
August(2011(
"What(a(Man"(launches(at(No.(1(in(theaters,(becoming(the(most(successful(German(film(ever(
for(20th(Century(Fox,(with(1.8(million(tickets(solds(
04/07/2015( PANTALEON((ENTERTAINMENT((AG(
(
13(
BUSINESS(MODEL(
PROJECT(PIPELINE(
PANTALEON(Group(currently(has(over(30(different(projects(in(various(stages(of(development,(15(of(
which( have( production( schedules.( Projects( can( be( delayed( or( expedited( according( to( development(
progress.(Current(theatrical(release(slate(includes:(
(
(
(
2015(Releases((
(
(
(
Theatrical(release:(3/26/15(\(
Theatrical(release:(8/8/15(\(
Distrib:(Warner(Bros.((
Distrib:(Warner(Bros.((
(
(
2016(Releases( (
(3(in\house(feature(film(productions((incl.(1(international(production)((
(
2017(Releases( (
(4(in\house(feature(film(productions((incl.(1(international(production)((
(
2018(Releases( (
(6(in\house(feature(film(productions((incl.(4(international(productions) (((
(
(
04/07/2015( PANTALEON((ENTERTAINMENT((AG(
(
14(
BUSINESS(MODEL(
THE(SECRET(OF(PANTALEON'S(SUCCESS(
Pantaleon(is(the(new(generation(of(European(filmmakers(
Excellent(strategic(position,(solid(financing(
Excellent(access(to(all(business(levels(through(high(public(awareness(
Very(attractive(to(creative(talents(
Attractive,( long\term( revenue( streams( thanks( to( growing( film( library( with( lasting(
potential(
•  Limited( dependency( on( government( film( subsidies( thanks( to( commerical( success( and(
partnership(with(major(Hollywood(studio((
•  Advantageous( risk/profit( ratio( thanks( to( low( in\house( investment( in( film( budgets( (max.(
5%)(and(high(rights(retention(ratio((over(60%)(
•  Our(motto(is("Made(by(PANTALEON,(from(first(idea(to(finished(film"(
(
•
•
•
•
•
04/07/2015( PANTALEON((ENTERTAINMENT((AG(
(
15(
MARKET(
MARKET(POSITION(
In( recent( years,( PANTALEON( has( successfully( occupied( an( important( position( on( the( German( theatrical( film(
market.(
(
Record(German(movie(market(tops(billion(Euros(2013((€1.023(billion(total(box(office)(
•  With(26.2%(of(the(total(box(office,(German(films(had(their(best(year(since(2008.(A(total(of(34(million(tickets(
were(sold(to(German(films.(
•  In(2013,(a(total(of(1025(German(films(were(released(in(theaters,(while(only(seven(of(them(sold(over(1(million(
tickets((source:(FFA\Info(1/2014).(
•  With( "Schlussmacher"( and( "Mrs.( Ella",( two( of( these( seven( hit( films( were( PANTALEON( productions.(
PANTALEON(box(office(revenue(was(€27(million,(a(little(more(than(10%(of(the(entire(German(film(box(office(
2013.(
•  With(3.8(million(tickets(sold(for(these(two(PANTALEON(titles,(every(ninth(ticket(sold(for(a(German(film(2013(
was(for(a(PANTALEON(film.(
((
With( "Joys( of( Fatherhood"( in( 2014( (2.36( million( tickets),( a( PANTALEON( film( was( the( second( most( successful(
German(film(of(the(year(and(8th(most(successful(film(released(in(Germany(overall,(beating(a(lot(of(national(and(
international(blockbuster(competition.(
04/07/2015( PANTALEON((ENTERTAINMENT((AG(
(
16(
MARKET(
GROWTH(FACTORS(
The(global(market(for(Filmed(Entertainment(will(grow(to(a(volume(of(US($(100(billion(in(2017.(Driven(by(growth(
markets(like(China(and(online(distribution,(established(markets(like(Germany(and(the(USA(continue(to(grow(as(
well.(
Source:(PwC(
Compared(to(other(important(movie(markets,(Germany(has(a(number(of(strategic(production(advantages,(leading(to(
growing( interest( from( foreign( productions( in( shooting( in(Germany.The( average( budget( for( a(German( film( in( approx.(
€3\4(million.(Budgets(is(France(and(the(UK(are(approx.(3\4(times(as(expensive,(U.S(productions((cost(approx.($50(million(
on( average.( PANTALEON( is( in( a( strong( position( to( profit( from( this( development( in( furture( with( productions( for( the(
international(market("Made(in(Germany(by(PANTALEON."(
04/07/2015( PANTALEON((ENTERTAINMENT((AG(
(
17(
MARKET(
DIGITAL(DISTRIBUTION(
In( 2018,( revenue( from( digital( distribution( (over\the\top( content,(OTT,( and( streaming( video)( will( surpass( physical(
sales((Blu\Rays,(DVDs)(for(the(first(time.(Digital(distribution(will(double(its(share(of(filmed(entertainment(revenue.(
Source:(PwC(
Source:(PwC(
This(seismic(shuft(in(distribution(channels(will(open(attractive(new(avenues(of(monetarizing(its(library(and(pipeline(to(
PANTALEON( Group.(The( rapid( growth( of( digital( is( accompanied( by( increased( demand( for( exclusive( content( from(
Video\on\demand( services( like( Netflix,( Watchever( and( Amazon( Prime( Video.( These( new( market( players( provide(
PANTALEON(Group(with(additional(market(options(that(may(grow(into(business(fields(of(their(own.(
04/07/2015( PANTALEON((ENTERTAINMENT((AG(
(
18(
OUTLOOK(
SEIZE(GROWTH(OPPORTUNITIES(\(EXPAND(THE(BRAND(
PANATLEON(aims(to(become(one(of(Europe's(leading(movie(entertainmemt(companies(in(the(years(ahead.(
(
Expand(market(position(on(German\language(market(
•  Increase(numer(of(in\house(productions(
•  Expand(genre(spectrum(
•  Grow(creative(pool(of(writers,(actors(and(directors((
(
Commissioned(productions(of(prestige(projects,(esp.(for(innovative,(rapidly(developing(distribution(channels(like(VoD(
International(Expansion(
•  National(market(strength(as(basis(for(international(growth(
•  Internationally(experienced(management(
•  Long\cultivated(partnerships(with(leading(international(theatrical(distributors(
Expand(product(placement(and(branded(entertainment(business(
((
Expand(company(structures(
04/07/2015( PANTALEON((ENTERTAINMENT((AG(
(
19(
THE(STOCK(
FUNDAMENTALS(
Symbol:(
(PAL(
ISIN: (
(
(DE000A12UPJ7(
WKN: (
(
(A12UPJ(
Stock(Type:
(
(Bearer(shares(/(common(stock((
No.(of(Shares(Issued:
(1,000,000(
Equity(Capital: (
(€1,000,000.00(
Exchanges:
(
(Frankfurt(Stock(Market,(XETRA(
Market(Segment:(Open(Market(
Reporting(Standard:(
(Entry(Standard(
!
(Shareholder(sturcture((March(2015)(
(BlackMars(Capital(GmbH(approx.(90,0%(
BlackMars!Capital!GmbH!90!%!
Freefloat!10!%!
Publicly(traded(approx.(10,0%(
(
BlackMars(Capital(GmbH( is( a( holding( for( the( company(
founders'(shares.(
04/07/2015( PANTALEON((ENTERTAINMENT((AG(
(
20(
CONTACT(
INVESTOR(RELATIONS(
PANTALEON(Entertainment(AG(
Katharinenstraße(4(
D\61476(Kronberg(im(Taunus(
(
Tel.:(+(49(6173(394(50(95((
Fax:(+(49(6173(394(50(97(
E\Mail:(ir@pantaleongroup.com((
(
04/07/2015( PANTALEON((ENTERTAINMENT((AG(
(
21(