INVESTOR
PRESENTATION
PRIVATE OFFERING FOR ACCREDITED
INVESTORS
The Michelangelo Experience Exhibition
represents an investment opportunity in the
new and growing filed of traveling
exhibitions. The Exhibition features the major
sculptural works of Michelangelo’s life, from
his first sculpture at age 14 to his last
sculpture at age 88. Telling the story of
Michelangelo's life in a way never before
possible.
SAFE HARBOR STATEMENTS
This Program Summary offers only limited descriptive material regarding an investment in
Michelangelo Experience, Inc. as a long term investment. It does not purport to be complete. The
use of this material is authorized only when preceded or accompanied by a current Confidential
Private Placement Memorandum, which more fully describes the Offering and sets forth the risks.
All forward-looking statements and any financial projections are estimates only and are subject to
adjustment. This presentation includes forward-looking statements within the meaning of the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995 including statements that
reflect Michelangelo Experience, Inc.'s current expectations about its future results, performance,
prospects and opportunities. Michelangelo Experience, Inc. has tried to identify these forwardlooking statements by using words and phrases such as "may," "expects," "anticipates,"
"believes," "intends," "estimates," "plan," "should,” "typical," "preliminary," "hope," or similar
expressions.
2
CORPORATE OVERVIEW
•
The Michelangelo Experience, Inc., is a private, for-profit museum exhibition company.
•
The Company is focused on the worldwide marketing and touring of its Michelangelo sculptures
exhibition.
•
The Company has exclusive access to an unparalleled collection of Michelangelo’s art.
•
The Michelangelo Experience Tour will show the genius, philosophy, beauty and inspiration of
Michelangelo’s
works and life in a way never before possible.
3
INTRODUCTION
Michelangelo is widely considered the greatest artistic genius that ever lived -- a man whose name
has become synonymous with the word "masterpiece." His works include the world famous Pieta,
David, and the breathtaking frescoes on the ceiling of the Sistine Chapel.
As an artist he was unmatched, the creator of works of sublime beauty that express the full breadth of
the human condition. He left immortal works in sculpture, painting, architecture and poetry. Through
this vast and multifaceted body of artistic achievement, Michelangelo made an indelible imprint on the
Western imagination. No other artist has ever attained such a high level of mastery in all of these four
areas of artistic endeavor.
On their own, each of Michelangelo’s pieces is profound. To understand the scope and scale of his
work would take a lifetime, and to simply experience his work in person would require weeks of travel.
Imagine the impact these masterpieces would have if they were assembled in one collection and in
one location.
This Exhibition, The Michelangelo Experience, does just that. Bringing together all of Michelangelo’s
major works—works that span his entire life—The Michelangelo Experience is the event of a lifetime.
4
INTRODUCTION—CONTINUED
Featuring 19 of Michelangelo’s sculptures, 15 to 40 of his original drawings, and a re-creation of his
remarkable Sistine Chapel, The Michelangelo Experience Exhibition is the best opportunity the world
will ever have to take in the brilliant works of humanity’s greatest artist.
Created in conjunction with the most reputable scholars in the art world and the Casa Buonarroti
museum, this multi-media and multi-sensory experience will feature Michelangelo’s greatest works,
offering insight into his life and his masterpieces that will live on long after the exhibition experience is
completed.
Providing the opportunity to study, explore, and pay homage to all of Michelangelo’s masterpieces in
one location, The Michelangelo Experience Tour will appeal to lovers of art, the devout, and the
general public at a level that will surpass the most successful traveling exhibitions of all time.
5
EXECUTIVE SUMMARY
• The Michelangelo Experience, Inc. (“TME” or “the Company”) has the content and the key
personnel to
maximize returns in the relatively untapped field of traveling exhibitions, which have become a
primary
income generator for the museum industry's $6.5 billion annual revenues.
• The Company is in the process of creating The Michelangelo Experience Exhibition (“the
Exhibition), a
20,000 square foot theatrical and immersive experience that features the largest collection ever
assembled of the sculptures, drawings, architectural models, letters, and poetry of the world’s
greatest
artist Michelangelo Buonarroti.
• TME management’s decade-long relationships with the Italian art and museum community, the
world’s
foremost Michelangelo scholars, and Italy’s finest fine-art foundry, guarantee the Company
exclusive
access to this content with virtually no competition.
• Leveraging this unparalleled access to content and TME’s deep understanding of the traveling
exhibition
and museum industries, the Exhibition has the potential to draw paid visitors on par with some of
the
most successful traveling exhibitions of all time including King Tut, Titanic, and Bodies, which have
an
6
average attendance of close to nine million visitors and average $180 million in gross box office
TRAVELING EXHIBITIONS
A PROFITABLE MARKET SEGMENT
•
Traveling exhibitions are a major producer of revenue in the museum industry; and over the past five
years, the touring exhibition market has more than doubled in size increasing to about $750 million
annually.
•
Industry analysis indicates a yearly growth rate of 15% to 20% for the traveling exhibition market
•
When exciting content is developed into a traveling exhibition and promoted by the proper organization,
properties of this kind can offer a significant return on investment (Appendix II).
•
As such, museums and promoters are now seeking timeless content that has a powerful appeal to the
public in order to provide them with a meaningful experience for their entertainment spend.
•
Traveling exhibitions, maximize their exposure in the market through limited engagements, routing tours
for the best seasonal return, extending operating hours, and developing universal content that can reach
large market segments including families, churches, and schools.
•
Traveling exhibitions offer typical museum visitors a refreshing change from their museum’s permanent
collection. This keeps the public coming back and keeps museums eager to identify the next blockbuster
property.
•
Exhibitions of iconic masters like Michelangelo can draw between 500,000 to 1,000,000 paid visitors per
market, equating to $10 million to $20 million in box office revenues alone over six months.
(Appendix I).
7
CONTENT OVERVIEW
• Through its relationships with New Renaissance Art, the Vatican, and Casa Buonarroti (the
Michelangelo
Museum in Florence, Italy ), TME has access to the most extensive collection of Michelangelo’s
sculptures.
• The molds from which the bronzes are cast were taken directly from Michelangelo’s original
sculptures in
the early 1900s. This process has since proscribed by Italian law in order to protect the priceless
marble
originals from being damaged, thus ensuring the collection remains exclusive.
• The sculptures cast from these molds are finished by hand chiseling using the same techniques as
in the
Renaissance and take between 6 and 18 months to execute. Their museum quality, exclusivity
(limited to
editions of 12) and authorization by Casa Buonarroti qualify these sculptures to be designated as
posthumously cast original Michelangelo sculptures. This is the first time that such a formal
declaration
has been made by Casa Buonarroti—the only entity with the necessary authority and standing in
the art
world to assign this designation.
• Subsequent to this declaration, discussions with independent appraisers of the American
Appraisers
Association and the National Institute of Appraisers indicate that the value of the sculptures would 8
now
CONTENT OVERVIEW—CONTINUED
•
When far less significant art is fetching astronomical prices today, the investment potential must be
formidable for a work of art by the undisputed master—Michelangelo.
• In addition to these remarkable, full size sculptures, TME also intends to feature between 15 and
40
originals of Michelangelo’s drawings, architectural models, letters, and poetry, which will be loaned
to the
Exhibition by Casa Buonarroti.
• Designed by the foremost museum and theme exhibition designers and employing an easy to
follow
narrative, the Exhibition will be an immersive and experiential environment, making the content
accessible to all levels of Michelangelo enthusiasts from the amateur to the expert.
9
CONTENT OVERVIEW—CONTINUED
A close-up of the Michelangelo’s massive David
Michelangelo’s Pieta of St. Peter
The Exhibition will follow a chronological narrative through the life of Michelangelo. Beginning in a 4D introductory theater,
visitors will meet Michelangelo as a boy and watch him create his first sculptures and drawings that will then appear before
them. Divided into easy-to-follow galleries, the Exhibition will then lead visitors through the life and times of Michelangelo,
using his greatest sculptures, and the original drawings that preceded their creation, as guideposts to mark their way.
10
CONTENT OVERVIEW—CONTINUED
The Moses, commissioned for the tomb of Pope
Julius in 1506, stands nearly eight-feet tall
The Rondanini Pieta, created when Michelangelo was in his
eighties, is considered by many to be the first expression of
modern art
Each sculpture is presented at its complete scale in an
immersive environment, complete with period appropriate sets,
theatrical lighting and audio and video support.
11
CONTENT OVERVIEW—CONTINUED
The Exhibition will also feature a recreation of Michelangelo’s
remarkable Sistine Chapel, the greatest accomplishment in
Western Art.
12
STRATEGIC OVERVIEW
• TME’s current schedule forecasts opening its
first
Exhibition in Q3 2011.
•
This unit will be featured in the world’s major
markets. Current discussions with museums
and
cultural centers indicate that the Exhibition
will
begin in either New York City, Sao Paulo, or
Mexico City.
• Each unit launched is currently scheduled to
tour
for a minimum of five years. Given the
Company’s relationship with a vast number
of
museums and cultural centers around the
world,
and the relative lack of traveling exhibition
inventory, each unit could tour for up to
fifteen
years (Appendix I, “Industry Overview”).
13
USE OF PROCEEDS
Total Funding from Offering
Less Commissions
Sponsorship
$7,500,000
750,000
4,000,000
Capital Expenditures
Acquisition and Leases
4,384,000
Exhibition Creation: One Unit
Subject Experts
Exhibition Design and Construction
75,000
1,850,000
Creation of 3D Assets
450,000
Website Development
65,000
Gift Shop Inventory
400,000
Shipping to First Venue
165,000
Exhibition Install and Removal
245,000
Public Relations Consultants
75,000
Marketing
800,000
Venue Rent
700,000
Subtotal
4,825,000
14
USE OF PROCEEDS
Administrative Expenses
Salaries, Year One
965,000
Legal
95,000
Accounting
60,000
Payroll Related Expenses
64,000
Rent, Utilities & Telephone, Etc.
32,000
Office Furniture & Fixtures
20,000
D&O Insurance
8,000
Fine Art Insurance
25,000
Computers
16,000
Office Supplies
3,000
Office Printing
2,000
Sculpture Shipping
20,000
Travel & Lodging
150,000
Sub-total
Total Expenditures
Reserves
1,460,000
10,669,000
81,000
15
EXCLUSIVE OFFERING
Minimum Investment $250,000.00
•
250,000 Class A Common shares at $1.00 per share
• The Michelangelo Experience, Inc. is raising $7.5 million in this first round of financing through a
506
Private Placement Memorandum.
• The Private Placement Memorandum for this round of capital is for a direct equity investment in
Class A
Common shares of The Michelangelo Experience, Inc.
• Investors in Class A Common stock will receive a six percent (6%) annual dividend out of net
revenues one
year after their subscription date; in year two (2) Investors in Class A Common stock will receive a
six
percent (6%) annual dividend paid quarterly out of net revenues.
• Beginning in year three (3) the Company intends to pay Class A shareholders a quarterly dividend
from
the net profits of The Michelangelo Experience, Inc. in equal proportion (pari passu) to their equity.
16
POTENTIAL RETURN ON INVESTMENT
Timing
Return
Totals
ROI
Year One
$15,000
$15,000
6%
Year Two
$15,000
$30,000
12%
Year Three-Q1,Q2
$299,568
$329,568
132%
Year Three-Q3,Q4
$64,667
$394,235
158%
Year Four-Q1,Q2
$56,858
$451,093
180%
Year Four-Q3,Q4
$117,145
$568,238
227%
Year Five-Q1,Q2
$97,783
$666,021
266%
Year Five-Q3,Q4
$86,143
$752,164
301%
$752,164
301%
Totals
Based on 250,000 shares with 12,500,000 investor shares and 52,625,875 total shares outstanding.
Calculated on one unit touring continuously for five years. For greater detail, see Projections.
Actual results may vary based on actual attendance, revenues, and expenses.
The Company may reinvest up to 50% of net profits per quarter back into business before calculating dividends.
17
PROJECTIONS
18
COMPETITIVE ADVANTAGES
• TME has secured the rights to market and tour this unparalleled collection of Michelangelo
masterpieces.
Through New Renaissance Art, the Company has privileged access to the art work, resulting in
little to no
competition.
• The management team of The Michelangelo Experience has extensive knowledge in the
specialized field
of traveling exhibitions, and is intimately knowledgeable of the keys to success for this growing
industry.
• Exhibition revenues will be generated from a variety of sources, including exhibition ticket sales,
in-store
and online merchandise sales, limited edition sculpture sales, special and private events and
corporate
sponsorships.
• Proven museum and theme park design elements will combine the latest technologies with the
timeless
forms of Michelangelo’s sculptures and drawings, bringing them to life in a way never before
possible.
• The current plans are to to visit some of the world’s largest markets over the next five years. The
Exhibition
has the potential to generate $140 million in gross revenues from ticket sales alone over five
years, with a
19
conservative anticipated ancillary revenue stream of an additional $100 million.
APPENDICES
APPENDIX I—INDUSTRY OVERVIEW
Touring exhibitions represent the only growing revenue producer for the museum industry. We estimate that
the touring exhibition market has more than doubled over the last five years, increasing to about $750 million
annually.
• Our analysis indicates that the Industry is growing at rates of between 15% to 20% per year, significantly better than
the 4%
annualized growth rate for the entertainment industry overall.
• The growing choice for consumers seeking a meaningful experience for their entertainment dollars, traveling
exhibitions are
a young and expanding industry.
• The market demand for blockbuster exhibitions is driven by the collective demand of the general public as well as
museum
directors, international promoters, and the member base of the museum community.
• According to the American Association of Museums, there are 2,500 museums in the United States alone.
• Museums attract more visitors per year than NASCAR, the NFL, and the MLB combined.
• The member base of museums is in the habit of returning to their museum at least once per year to “see
what’s new”
and has grown accustomed to paying a surcharge for traveling exhibitions.
• Museums have realized dramatic additional revenues to their bottom line when hosting a traveling exhibition,
and
many museums now have dedicated spaces for traveling exhibitions. The larger the exhibition name, the
larger the
draw for the museum.
• There is limited inventory of “blockbuster” traveling exhibitions. Less than ten blockbuster exhibitions are currently
touring
and each can only visit a market once every five years, with some only making return engagements once every ten
20
years.
APPENDIX I—INDUSTRY OVERVIEW
CONTINUED
• Traveling exhibitions evolved into traveling attractions in the 1970s. As a result, key metrics evolved such as
audience head
counts, revenues, and associated expenses.
• Exhibitions became significant events creating enormous publicity for the museums hosting them and driving
attendance to unheard-of levels thus changing the public’s attitudes toward, and expectations of, many
museums.
• The Treasures of Tutankhamun (King Tut) exhibition was arguably the first international blockbuster traveling
exhibition. Starting in Paris in 1967, that exhibition traveled around the world setting attendance records:
• In nine months of 1972 it drew 1.7 million patrons to the British Museum in London.
• Tut toured the US four years later drawing 836,000 to the National Gallery in Washington over a 117
day
period (7,000 people per day); 900,000 visitors in 121 days in New Orleans; and, ultimately attracting
more
than 3,000,000 visitors on its seven city tour. Tut introduced American audiences to the excitement of
an
“event” at a museum.
Growth and Costs
The industry continues to grow and prosper. While King Tut remains the biggest attraction on a per venue basis, human
anatomy exhibitions are the biggest touring exhibitions in terms of revenues and attendance. As these tours decline,
others will invariably be required to replace them.
• In most cases, the need to produce blockbuster type exhibitions has increased the size and cost of production.
However, it is
important to note that the current costs associated with blockbuster traveling exhibitions are both fixed and variable.
Fixed
costs can be associated with licensing fees, and costs to produce hard assets, while variable costs can be
21
associated with
APPENDIX I—INDUSTRY OVERVIEW
CONTINUED
Products
• While dinosaurs and historic collections have typically been the focus of traveling exhibitions, themes are expanding
into
popular culture to include Star Wars, Marvel Comics, and James Bond. Several of these themes have been
successful and
well received.
Venues
• Museums
• Blockbuster exhibitions have been significant in changing the dynamics for museum programming. These
institutions now rely on temporary, traveling exhibitions to draw visitors and create new revenue streams.
• Museum patrons now expect, and are willing to pay additional fees for, new attractions (as many as two to
three
times per year). This now extends to zoos and aquariums, which have expanded their offerings beyond their
permanent attractions by offering special exhibits.
• Museums have now become dependent on the revenue streams from traveling exhibitions to retain
members,
attract new members, and draw visitors to their institutions.
• Income generated by successful touring exhibitions has become a critical component to the financial stability
of the
institution and its ability to satisfy its mission locally.
• Non-Museum
• In response to both a lack of suitable museum space and lack of museum interest in certain types of
exhibitions,
exhibitors and promoters have moved to exhibiting in non-traditional venues such as commercial venues,
concert
halls, and convention centers. Many promoters familiar with the traveling exhibition model are willing to pay22
sizeable
APPENDIX II—COMPARISONS
•
Given its unique and timeless content, and the popular appeal of the Michelangelo brand name, The
Michelangelo Experience can expect to see total attendance figures similar to those of the world’s most
popular traveling exhibitions.
Total Attendance
12,000,000
10,000,000
8,000,000
Total Attendance
6,000,000
4,000,000
2,000,000
0
1
2
3
1. Titanic, 2. Bodies, 3. King Tut
23
APPENDIX II—COMPARISONS
•
As a rule, traveling exhibitions tour on a five-year life cycle. However, blockbuster exhibitions like The
Michelangelo Experience can continue to generate high weekly attendance—a key metric—for a much
longer period. For example, Titanic, has been touring for close to 15 years with similar attendance as
when it first opened.
Attendance per week
30,000
25,000
20,000
15,000
Attendance per week
10,000
5,000
0
1
2
3
4
5
6
7
1. Titanic, 2. Bodies, 3. King Tut, 4.Tut:Replicas, 5. Real Pirates, 6. Harry Potter, 7. Average Weekly Attendance
24
APPENDIX III—ACTIVATION PLANS
TME’s activation plans for its Exhibition include a first touring unit launching in late 2011 and a second
unit launching in Q2 2012. Additional plans are in development for a third traveling exhibition in Asia
that has the potential to be fast-tracked following initial success.
• The design team is already underway, preparing the Exhibition for construction and opening.
• The Exhibition will be presented in venues of highest repute in the world’s major markets, where
TME has
existing relationships with the regions’ most prominent museums and promoters.
• Each traveling exhibition will remain in a market for between four to six months, with the possibility
for
extension being built into each venue agreement as demand warrants.
• The Exhibition opening will be preceded by a comprehensive public relations and marketing
campaign,
as well as a customized digital strategy, which will generate awareness several months in advance
of
opening and throughout the Exhibition’s run.
• The Company has relationships with some of the industry’s most experienced and efficient
operators,
who will keep costs low and customer service at a maximum.
• Each Exhibition will be accompanied by a customized art gallery and accompanying retail store
that will
act as a final gallery. Forced exits of this kind increase overall revenues by 20% according to
conservative
25
successes of similar properties.
APPENDIX III—ACTIVATION PLANS
VENUE AND PARTNER IDENTIFICATION
TME has a robust network both within the museum community and in the wider promoter community.
Both groups recognize the revenue potential of traveling exhibitions.
• The Company has already been in contact with potential partners around the world and has
significant
interest in Asia, Europe, and South America. TME’s numerous ties to the North American museum
community have generated preferred interest in the United States, Canada and Mexico.
• TME will work with a market’s major museum—one with the largest database and largest
marketing,
education, and outreach budgets.
•
In markets that lack museums meeting this criteria, the Company will focus on cultural centers that
centrally located, have high foot-traffic, and are close to mass transit.
26
APPENDIX III—ACTIVATION PLANS
MARKETING
The Exhibition’s Marketing Campaign will utilize the most iconic and eye-catching images associated
with Michelangelo and entice the public to experience the genius of the world’s greatest artist.
• An awareness campaign will begin three to six months prior to opening to build anticipation and
will be
accompanied by placing tickets on sale.
• As the opening approaches, the media buying strategy will change to a “paint the town” approach
such
that any resident or visitor in the market will be aware of The Michelangelo Experience and view it
as the
“must-see” event of the decade.
• The on-going marketing campaign will feature weekly messaging and promotions in each market
to keep
the Exhibition at the top of mind for residents and visitors.
• Targeted regional outreach will also focus on local residents and early adopters, offering them
preview
admission at discounted rates to increase word-of mouth marketing.
• Several promotional packages developed with local Chambers of Commerce will create regional
buzz
around the property.
• This will be accompanied by a national campaign in tourist publications prior to the first opening,
creating
overall awareness for the Exhibition as it continues on its routing.
27
• A digital and social media strategy will engage visitors before, during, and after the Exhibition
APPENDIX III—ACTIVATION PLANS
PUBLIC RELATIONS
The Company’s public relations campaign will begin immediately, building grass roots, local and
national support for the project behind the scenes, leading to a major announcement initiative three to
six months prior to the opening date and a gala VIP reception and preview prior to opening.
• In an ongoing strategy, TME will release two feature stories to the media a week for follow up and
will be
in constant contact with local media.
•
The Exhibition will feature two lecture series and events each month.
• Outreach to schools will focus on, but not be limited to, art, history, and religious instruction.
Exhibition
managers will also engage with corporations to book private functions in the Exhibition space and
to
become sponsors of the Exhibition.
28
APPENDIX IV—REVENUE POTENTIAL
TICKET SALES
Before entering each market, TME will carefully assess the landscape, identifying pricing for all similar
events, including previous visits from other traveling exhibitions. This will ensure competitive pricing
models and inform marketing plans to minimize competition.
• Pricing will be scaled to accommodate adults, children, seniors, students, school groups and
private
groups. Weekend ticket pricing will be at a premium. Numerous discounts will give potential ticket
buyers
the sense of value without undermining our average ticket price (projected at approx $22.50).
• Ticket sales will be available at the box office, at participating retailers, online, through the TME
education
department, and via group sales agents.
• The planned ticketing system with a major ticketing provider generates an additional revenue
stream,
whereby a portion of each ticket sold is paid back to TME to ensure long-term partnerships.
29
APPENDIX IV—REVENUE POTENTIAL
RETAIL—PHYSICAL STORES AND ONLINE
The Michelangelo Experience Retail Program will accompany The Michelangelo Experience touring
exhibition, serving as the primary retail outlet for all merchandise products created to commemorate
The Michelangelo Experience tour.
• The retail program will consist of one primary distribution center, exclusive vendor relationships,
physical
retail stores that will serve as the final gallery at each Michelangelo Experience exhibition and an
ecommerce outlet.
•
The vertically integrated program will guarantee uninterrupted access to inventory.
• Immediately following the exhibition experience, the retail store has the unique opportunity to
generate
a high volume of sales ranging from small collectibles to high-end and exclusive designer lines.
•
The online component of the merchandise store will take advantage of the growing interest in
Michelangelo created by the exhibition, making specialized and exclusive products available
around the
world.
•
The retail store will also be responsible for the sale of audio guides and commemorative
photographs.
30
APPENDIX IV—REVENUE POTENTIAL
SCULPTURE SALES
The Sculptures on display in The Michelangelo Experience Exhibition are cast in fine-art limited
editions of 12. Recent fervor in the art world for posthumously cast original edition sculptures of this
kind has driven up the value for these limited edition, full-scale casts of Michelangelo’s works.
• Certain of these limited edition full-scale sculptures will be available for sale to exclusive buyers.
The net
profits of these sales will flow to the Company’s bottom line.
• Given their rare nature—only 12 of each will ever be made—their authorization by the Casa
Buonarroti,
and their sheer beauty, it is difficult to speculate on the magnitude of revenue that these sculptures
can
generate for the Company. However, TME reasonably proposes that these sculpture sales will
contribute
$60 million in revenue. This additional revenue is currently not reflected in the projections.
31
APPENDIX IV—REVENUE POTENTIAL
THE MICHELANGELO ART GALLERY
In the exit gallery of the exhibition, visitors will have the opportunity to buy perfect reproductions
of the full-size busts of many of the sculptures.
•
Past performance indicates a potential penetration of
between 1.5% and 3% in these commercial gallery
sculpture sales.
• As these busts are limited editions, they will increase in
value
as demand increases. For example, busts of the
Madonna
from Michelangelo’s Pieta of St Peter’s first retailed for
$15,000 and now retail for $75,000.
•
Busts of 15 sculptures will be produced in four different
materials, each in edition of 500, allowing for a potential
inventory of 30,000 busts.
• Other reduced scaled reproductions in various sizes of
the 19
Sculptures in the collection will also be cast in limited
editions of 500 each in, bronze, silver, stainless steel and
acrylic.
32
The Michelangelo Experience, Inc.
(855) 326-4767
www.michelangeloexperience.com
33