cinegv presentation sept 24092014 english.pdf

Le cinéma à emporter

24/09/2014 Confidential- CineGV property 1

September 2014

Montparnasse


A UNIQUE SERVICE IN EUROPE

A CLEAR AND INNOVATIVE OFFER

Download a film or a TV serie in 30 to 90 seconds

� from a kiosk located in a train station, an airport or a shopping center

� on a USB/micro USB flash drive supplied by the customer or the kiosk.

� among hundreds of films and episodes of TV series, for rent for 30 days (48 hours

once started) at VOD price: € 3.99 to € 4.99 for a film.


SECURED STRATEGIC LOCATIONS FROM PRESTIGIOUS

BUSINESS PARTNERS

Centre commercial Créteil Soleil

Gare de MarseilleLyon Gare de la

Part Dieu

Aéroport de

MarignaneAéroport de Toulouse

Paris -Gare de

LyonGare de Lille

� 11 kiosks deployed in 7 major train stations (Paris (2), Marseille, Lyon,

Lille, Montpellier, Rennes) with SNCF and Relay stores, two airports

(Toulouse and Marseille) and 2 malls

� Active support of the SNCF, Relay, Klépierre, Immochan ... and ongoing

negotiations for a sustained deployment in other Cat A locations (more

than 50 planned for the short term)


A CATALOGUE OF ATTRACTIVE CONTENT (FILMS, SERIES,

ENTERTAINMENT) WITH RAPID DEVELOPMENT

� Contracts signed with Gaumont, Pathé, TF1, France Television,

Wildside and Mediatoon and agreements finalized (subject to

funding) with Warner, Paramount and Universal.


TECHNICAL INFRASTRUCTURE THAT IS UNIQUE IN EUROPE AND SIZED

FOR A SIGNIFICANT RAMP-UP

� Download of a protected content on a USB stick without the need for a PC or a tablet

on line. This is a world first for Android devices.

� Entirely remotely managed kiosks: films, customer interface, statistics, alarms.

� Innovative carrousel for USB stick distribution.

� An exclusive USB stick with micro USB adapter that download a film in 30 seconds.

AN EXPERIENCED AND HIGH QUALITY TEAM, RECOGNIZED FOR HIS

TEHNICAL AND MARKETING SKILLS, AND ITS EXPERTISE IN TRADE

NEGOTIATIONS WITH STUDIOS AND LEASERS


� Associated founders: Rémy Jacquelin: Ex Content Acquisition Director for Groupe TF1 and

Christophe Chéreau: Group manager, consumer electronics HTM group (Boulanger) bring many

key contacts.

� A strategic committee with representatives of two BA networks: Investessor and BADGE

Founder, CEO and controlling shareholder : Benoît Chéreau

� Polytechnique, MBA Harvard

� Initiator and ex Deputy CEO of Bouygues Telecom ; ex Deputy CEO of Groupe Canal+

� Content Manager: 3 years experience in content

acquisition (Tribeka ltd)

� Technical Manager: 15 years of experience in Internet

and VOD projects (Glowria, Allo Cine)

� Expansion Manager: 15 years experience in commercial

real estate (MMA, Carrefour, Grosvenor)

� Marketing and customer support: young graduate with

experience in digital marketing


A SUCCESSFUL LAUNCH (august /september2014) SUPPORTED

BY A MarCom / MULTIMEDIA EFFECTIVE STRATEGY

� A recognized consumer communication agency : Aston Wood.

� Press release from SNCF, with many web, print and radio

repeat: le Parisien, la Provence, le Point.fr, Ouest France.fr,

Télé matin, FR3 régional Toulouse et Rennes, RTL, Fun radio

Toulouse , Direct matin Montpellier, 20 minutes Rennes as well

as many websites.

� Promotion in progress: 78 days hostess and distribution of

flyers (70,000). 160,000 geo located banners on smartphones.

Build up of a community on social networks: Facebook, Twitter

Two partnerships with tablet manufacturers for Q4: Takara to

integrate the CinéGV application and a free movie in 15,000

tablets; Polaroid to integrate the CinéGV app into 20,000 3G

tablets.


PROMISING PROSPECTS WITH NO DIRECT COMPETITION

� CineGV market studies: 2,300 adults on internet plus 300

interviews in train stations: 64 % interested, 14% very interested

By extrapolation(43 million adults in France): 27 million interested.

6 million very interested

� Declared use: train (61% of interested), plane (49%), at home

(72%).

Intends 10 rents and 3 purchases per year.

� Benchmark Digiboo in USA since 2012: 115 kiosks in 2 years.

� Indirect competition via public networks (at home the day before, 4G, public Wi-

Fi): unreachable while travelling, too slow and unpredictable in train stations &

airports.

� Barriers to entry: - Preemption of locations in train stations and airports

- 3 years exclusivity agreement with the two key suppliers.

VISION


Physical proximity downloading ( USB or dedicated Wi Fi ) will remain 5-10 times faster than

public networks:

� USB: today € 10 = 180 Mb / s; € 100 = 1200 Mb / sec --- much lower cost tomorrow

� WiFi : up to 50 Mb / sec today; ---- devices will improve towards standard at 1300 Mb / s

� ADSL: 2 to 15 Mb/sec

� Fibre : 30 to 100 Mb/s in practice in very large cities only

� 4G : 10 to 20 Mb/s in practice

The demand for quality and thus file size will continue to grow:

HD: twice 4k : 8 times 8k (natural 3D) : 32 times

CineGV will give priority to the speed of choice in an attractive catalog

To be the reference brand for VOD on the move

in France and in Europe


PROSPECTS FOR A RAPID AND PROFITABLE DEVELOPMENT : positive

KPIs, break even in 2016 and Turnover in 3 years estimated at € 18 M

� The business model is distinguished by a structurally negative working capital. Recurring fixed costs are low.

Key Figures

(€ ooo or units) 2013-2014 2015 2016 2017 2018

Nber of customers end of year (k) 13 137 220 360 602

Number of rents (k) 18 554 1 328 2 246 3 824

Number of sales (k) 75 401 741 1 232

Number of keys sold (k) 5 67 66 84 101

Nber of kiosks end of year 12 55 127 186 288

TURNOVER 114 3 503 10 400 18 056 29 907

GROSS MARGIN 46 834 2 445 4 251 7 005

(%) CA 24% 24% 24% 23%

Number of employees 5 8 13 15 18

EBITDA (773) (375) 557 1 562 3 251

Capex 825 1 083 1 142 1 244 1 987

Change in working capital 84 697 836 901 1 258

Free cash flow (1 517) (785) 221 1 194 1 929

-

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

estimated

cumulative

visitors on

kiosk(page/5)

Cumulative

unique

visitors

cinegv.com

Pregistered &

registered

accounts


€ 1,137 K raised since April 2013:

� € 248 k - 3 Founders: 195 k€ at creation in April 2013 plus 53 k€ in 2014

� € 481 k - Love Money in May 2013, March & June 2014

� € 240 k - BPI Innovation financing (9/2013) & priming loan (6/2014)

� € 175 k - Two Business Angel networks (Investessor & BADGE) in June 2014

Search for € 400,000 financing in october/november 2014 to finance operations.

� Marketing and operating costs: 160 000 € (40 à 50 k€ par mois)

� Developpment of sale functionality : 40,000 €

� Guaranteed minimum for content from american majors: 60,000 €

� Technical supplier credit: 140 000 €

In 2015 , financing search for growth (1 M€ +) :

� 45 additionnal kiosks, WiFi downloading and iOS functionality

CinéGV is controlled at 54% par Benoît Chéreau.

A complete shareholder agreement has been signed with the BA networks in June 2014.

FINANCING STEPS


Thank you!

Contact: [email protected]

Mobile: (33) 6 24 51 92 02

cinegv presentation sept 24092014 english.pdf

Documents

group manager

years experience

years of experience

technical manager

protected content

exclusive usb stick

usb stick distribution

content acquisition