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Turning Dreams Into Reality
AGENDA
Situational Analysis
MULTISENSORYEXPERIENCE
GEOGRAPHICEXPANSION
Issues
Implementation
Financials
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Valuable Resources
• Creative talents • Strong brand name
Lucrative Target Market
•Affluent & sophisticated individuals
Strong Focused Operations
• 13 Resident, 10 Touring shows• Operating mostly in North America• Partners with Casino Operators
Key Principles • Show before business • Creative challenge and control
Valuable Resources with strong focused operations
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Expression of Creativity
•Constant idea generation from cells need to materialize into shows
Internal forces
Need for expansion and maintaining creative edge
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Expression of Creativity
•Constant idea generation from cells need to materialize into shows• Need for new shows
Internal forces
Need for expansion and maintaining creative edge
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Expression of Creativity
•Constant idea generation from cells need to materialize into shows• Need for new shows
Maintain creative edge •Keep creative core competency•Constantly innovate
Internal forces
Need for expansion and maintaining creative edge
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Opportunities for Expansion• Reputation for increasing partners revenues•Highly sought after
Internal forces External forces
Need for expansion and maintaining creative edge
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Expression of Creativity
•Constant idea generation from cells need to materialize into shows• Need for new shows
Maintain creative edge •Keep creative core competency•Constantly innovate
Opportunities for Expansion• Reputation for increasing partners revenues•Highly sought after•New partner and market opportunities
External forces
Need for expansion and maintaining creative edge
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Internal forces
Expression of Creativity
•Constant idea generation from cells need to materialize into shows• Need for new shows
Maintain creative edge •Keep creative core competency•Constantly innovate
Opportunities for Expansion• Reputation for increasing partners revenues•Highly sought after•New partner and market opportunities
External forces
Need for expansion and maintaining creative edge
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Internal forces
Expression of Creativity
•Constant idea generation from cells need to materialize into shows• Need for new shows
Maintain creative edge •Keep creative core competency•Constantly innovate
Increasing Competition
•Growing number of similar shows
Opportunities for Expansion• Reputation for increasing partners revenues•Highly sought after•New partner and market opportunities
External forces
Need for expansion and maintaining creative edge
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Internal forces
Expression of Creativity
•Constant idea generation from cells need to materialize into shows• Need for new shows
Maintain creative edge •Keep creative core competency•Constantly innovate
Increasing Competition
•Growing number of similar shows•Need to be at the forefront of innovation
Opportunities for Expansion• Reputation for increasing partners revenues•Highly sought after•New partner and market opportunities
External forces
Need for expansion and maintaining creative edge
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Internal forces
Expression of Creativity
•Constant idea generation from cells need to materialize into shows• Need for new shows
Maintain creative edge •Keep creative core competency•Constantly innovate
Increasing Competition
•Growing number of similar shows•Need to be at the forefront of innovation
Expand globally to capture new markets&
Deliver new forms of creativity
Where we want to beWhere we are
Strong permanent foothold in North America
Strong relationship with MGM
Provide high quality and creative entertainment
Where we want to be
Establish permanent foothold globally
Build equally strong relationship with other
partners
Leader in providing the most creative and
forefront entertainment
Issues and concerns
Enter new markets and deliver creative content
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Which show type
How to deliver new forms of creativity
Issues
•Brand dilution•Creative control
Concerns
Which markets to enter•Cannibalization•Over-saturation
Who to partner
•Creative Control•Trust•Sustainability• Profitable model with non-casino operator
• Creative talent • Financial and technical capabilities
Issues and Concerns
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
High quality and creative circus entertainment
provider
Provide the cutting edge and most creative circus
entertainment
Where we are Where we want to be
Strong permanent foothold in North America
Establish permanent foothold globally
Strong relationship with MGM
Build equally strong relationship with other
partners
MULTISENSORYEXPERIENCE
GEOGRAPHICEXPANSION
Strategy
Key Principles •Show before business • Creative challenge and control
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Considerations
Which type of show
Which country to enter
Who to partner with
Global Expansion Considerations
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
BIG TOP RESIDENT ARENA
Allows greater technical development & creativity
Fit with brand image
Maintain creative control
Profits
CRITERION
Resident and Arena shows provide the most viable vehicles of expansion & expression of creativity
30%
30%
15%
15%
Global Expansion
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
NEW YORK
Tourist Arrivals
Reception towards Performing Arts
Ease of Competition
RESIDENT CRITERION
London & Singapore are the most viable cities to expand into
50%
25%
25%
LONDON BERLIN SYDNEY SINGAPORE
Country Selection
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Why London
•High industry revenues and attendance that are continuously growing•Boost in tourism for 2012 London Olympics
Big Opportunities
•One of the world’s highest international tourism arrivals
Big Markets
Sophisticated Audience•Well established performing arts scene•Large pool of target audience
Establish a permanent foothold in London with a resident show
London
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
How to Enter London
•No casinos•Find a partner with the most fit•Construct a modern theater at West End
Partnership
Society of London Theater (SOLT)
Why SOLT?•Trade association representing owners, producers and managers of London theaters•They have the expertise and fit to direct CdS’s expansion in London
London
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
NEW YORK
Tourist Arrivals
Reception towards Performing Arts
Ease of Competition
RESIDENT CRITERION
London & Singapore are the most viable cities to expand into
50%
25%
25%
LONDON BERLIN SYDNEY SINGAPORE
Global Expansion
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Why Singapore
•Opening of 2 Integrated Resorts (IR) in Singapore : Resort World & Marina Bay Sands
New Opportunities
•Access to growing Asia market•One of the highest international tourist arrivals globally
New Markets
Low Risk
•Tried and tested casino model•Non-Saturated Market
Extend Partnership with Las Vegas Sands in Macao to theMarina Bay Sands IR
Singapore
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
How to Enter Singapore
•Upcoming casinos and integrated resorts•Implement similar casino-operator contracts
Partnership
Marina Bay Sands
Why Marina Bay Sands?•Exisiting ZAIA show in Macao casino operated by Las Vegas Sands•Both parties benefit as the IR will enjoy increased visitations while CdS will enjoy increased box office takings
Singapore
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
BIG TOP RESIDENT ARENA
Allows greater technical development & creativity
Fit with brand image
Maintain creative control
Profits
CRITERION
Resident and Arena shows provide the most viable vehicles of expansion & expression of creativity
30%
30%
15%
15%
Global Expansion
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Why Arena
•Highest revenue & growth•Larger audience
Huge Earnings
•Our research partnership into Augmented Reality requires high lead time and costs
Needed to Support Research
Low Lead Time & Cost
•Stage setup can be done in hours•Show runs last for up to a week
Arena
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Diluting of Brand
Limitation
•Better sight lines•Enhanced lighting and décor•Bigger choreography•Overall an enhanced entertainment experience
Addressing Limitations
Arena
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Considerations
Which market to enter
Which type of show
Who to partner with
Geographic Expansion
London & Singapore
Resident Shows Arena Shows
Society of London TheaterMarina Bay Sands
Global Expansion
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
MULTISENSORYEXPERIENCE
GEOGRAPHICEXPANSION
Multisensory Experience
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Sound
Smell Feel
Motion
Sight
MULTISENSORYEXPERIENCE
Multisensory Experience
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Core Competency
Technological Opportunity
Continuous creative innovation in shows
• Motion capture sensors•Vision tracking camera•3D Modeling•Interactive interface
Create an Augmented Reality
New Interactive Platform
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Core Competency
Technological Opportunity
Continuous creative innovation in shows
• Motion capture sensors•Vision tracking camera•3D Modeling•Interactive interface
Create an Augmented Reality
RESULTAn interactive semi-virtual performance can be built to appeal
to multiple senses
IMPLICATIONHow to acquire such technology?
New Interactive Platform
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Cirque du Soleil
•A creative team to design the show
AF+RFID RESEARCH LAB
•Collaboration initiative of the Royal Academy of Art in the Hague & Delft University of Technology
•Worked with world class organizations such as Van Gogh Museum in Holland
•Specialize on Augmented Reality for art and design
•Provide research funds
Sound
Smell Feel
Motion
Sight
MULTISENSORYEXPERIENCE
Technological Partnership
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Technological Complexity
High Capital Investment
Perceived threat of obsolesce by performers
Limitation
Plan longer lead time to coincide with London Theater construction
Large revenue from increased Arena shows
Include them in the development process &assure them of their required presence in live
shows
Addressing Limitations
Limitations
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Revenue from Recommendations higher
1621
2554
3331
1621
21092403
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2009E 2012E 2014E
With Recommendation W/O Recommendation
38.6% higher38.6% higher
5 Yr CAGR +15%
5 Yr CAGR +8%
Revenue
AssumptionsW/O recommendation based on increased focus on Big Top while recommendations includes focus on Arenas and Multi Sensory
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
EBITDA from Recommendations higher
510
936
1273
510614
679
0
200
400
600
800
1000
1200
1400
1600
2009E 2012E 2014E
With Recommendation W/O Recommendation
80% higher80% higher
5 Yr CAGR +20%
5 Yr CAGR +6%
Revenue
AssumptionsW/O recommendation based on increased focus on Big Top while recommendations includes focus on Arenas and Multi Sensory
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Multi Sensory Approach +ve NPV
FY end 31 YearIn USDm Unit 2008 2009E 2010E 2011E 2012E 2013E 2014EEBITDA 0 0 0 39 78 117NWC 10 10 10 10 10 10Capex 20 20 38.5 15 15 15FCF -30 -30 -49 14 53 92Terminal 261FCF w Terminal -30 -30 -49 14 53 510WACC 12%NPV 368.96
Terminal369 3% 4% 5% 6% 7%
Occupancy 70% 300 300 301 302 30280% 367 368 369 370 37190% 435 436 437 438 43995% 469 470 471 472 473
WACC369 10% 11% 12% 13% 14%
Occupancy 70% 360 329 301 275 25180% 439 402 369 338 31090% 518 475 437 402 36995% 557 512 471 433 399
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Multi Sensory Approach +ve NPV
FY end 31 YearIn USDm Unit 2008 2009E 2010E 2011E 2012E 2013E 2014EEBITDA 0 0 0 39 78 117NWC 10 10 10 10 10 10Capex 20 20 38.5 15 15 15FCF -30 -30 -49 14 53 92Terminal 261FCF w Terminal -30 -30 -49 14 53 510WACC 12%NPV 368.96
Terminal369 3% 4% 5% 6% 7%
Occupancy 70% 300 300 301 302 30280% 367 368 369 370 37190% 435 436 437 438 43995% 469 470 471 472 473
WACC369 10% 11% 12% 13% 14%
Occupancy 70% 360 329 301 275 25180% 439 402 369 338 31090% 518 475 437 402 36995% 557 512 471 433 399
+NPV 368m Remains positive even when conservative sensitivity scenarios are factored in
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
0
347
985
162
289
Resident Multi SensoryBig Top ArenasMerchandise
Revenue Breakdown
350
12151477
333
289
Resident Multi SensoryBig Top ArenasMerchandise
Revenue
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
0
347
985
162
289
Resident Multi SensoryBig Top ArenasMerchandise
Revenue Breakdown
350
12151477
333
289
Resident Multi SensoryBig Top ArenasMerchandise
Multi Sensory and Arenas will take up a significant portion of Revenue in 2014E
Revenue
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
2009 2010 2011 2012 2013
Leverage existing partnership with Sands
Multi Sensory
Expansion
Shift Touring focus towards Arenas
Begin R&D partnership
Establish relationship with SOLT
Arena
Enter the London market
Create new creative experiences for Singapore and London
2014
Singapore
London
Enter with Multi Sensory
Constantly innovate to achieve breakthrough technologies
BT Big Top will be maintained but slowly phase towards Arenas
Implementation
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
High quality and creative circus entertainment
provider
Provide the cutting edge and most creative circus
entertainment
Where we are Where we want to be
Strong permanent foothold in North America
Establish permanent foothold globally
Strong relationship with MGM
Build equally strong relationship with other
partners
MULTISENSORYEXPERIENCE
GEOGRAPHICEXPANSION
Implementation
Key Principles •Show before business • Creative challenge and control
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
THANK YOU
Financial Assumptions:TouringTOURING
Assumptions Unit RemarksPerformances Week 9Number of weeks a year 36Capacity Occupancy
Breakeven % 65%Average % 85% Assume
CostsProduction USDm 30Equipment and Transport USDm 17Tent USDm 13Per show Operating cost USDm 36.86 0.114Rent for Arena USDm 18
115
Introduction SituationAnalysis
GeographicExpansion
MultisensoryExperience
Financials Implementation
Why do we not implement the new technology in saturated/more mature markets?
• Prevent cannibalisation in existing markets • Existing infrastructure is not made for it – requires
overhaul that requires stopping original shows
Why multi sensory entertainment makes sense?• Aligned with your creative direction: Onedrop
foundation• We live in an experience economy – this is what
your consumers will want • New media is a current trend
In the event that the partnership does not work out
• Other available partners (Eg: institution in Nottingham institution)
• Governmental organisations are interested in such technology – gov support (eg: Singapore)
• Emergence of research labs conducting the relevant research
In the event that the partnership does not work out
• Other available partners (Eg: institution in Nottingham institution)
• Governmental organisations are interested in such technology – gov support (eg: Singapore)
• Emergence of research labs conducting the relevant research
How is it possible in London now? • Other available partners (Eg: institution in
Nottingham institution)• Governmental organisations are interested in such
technology – gov support (eg: Singapore) • Emergence of research labs conducting the
relevant research
Completely phase out big top eventually• Big top restricts creativity• Beyond the normadic roots (known for creativity)
• 35 other big scale shows on the Vegas Strip very competitive
• We have 7 resident shows on in Vegas cannibalisation
• Ex CdS employee Franco Dragone has a similar show just next door (Le Reve- aquatic show)
• Explore new markets that are less competitive
top related