speakers - ymagis · 2018. 7. 5. · garic deputy ceo jean mizrahi ceo christophe lacroix vp...

Speakers

Georges Garic

Deputy CEO

Jean Mizrahi

CEO

Christophe Lacroix

VP Content services

Till Cussmann

VP Exhibitorservices

Pierre Flamant

CFO

Agenda

1

Introduction

Dedicated to the cinema industryfor nearly a decade

2007: Creation of the company & beginning of VPF activities 2011:

Creation of the Germansubsidiary

2012: Creation of Spanish subsidiaryGrowth in exhibitorsservices’ activities

2013: IPO on Euronext Paris

2014: Acquisition of Dcinex – Europeanleadership in ExhibitorServices

2015: Acquisitions of Eclair, R2D1, Proyecson

2016: Acquisitions of ST’501,CKS, CineLogistics

About Ymagis Group

20+

Presence in 23 countries with 700 professionals

x4

Quadrupled since the IPO thanks to successful

external growth

European leader in digital services and technologies for the cinema industry

1st

Content deliverynetwork with 3.300*

cinemas connected

~20%

Solid market share in equipment and services

for cinema operators

* incl. DSAT

An offer of solutions covering the entire cinema industry value chain

Financingsolutions

ExhibitorServices

ContentServices

Post-production & Restoration

Versioning & Accessibility

Theatrical Delivery, Digital Distribution & Preservation

Management of contributions in the VPF model

New financing models

Sales & Field Services

Customer services

Software solutions

Combine technology and financial solutions for added value services

41%* 26%* 33%*

* B

reakdow

n o

f sale

s o

n J

une

30th

2016 16

employees as of 30/06/2016417



Cinema: a fast-moving high techindustry

DIGITAL DISRUPTION

CONSOLIDATION

CONSTANTINNOVATION

Our role is to anticipate future trends and provide our clients with the best solutions

An important network across Europe

BERLIN

KARLSRUHE

STRASBOURG

EXHIBITOR SERVICES23 locations across Europe

CONTENT SERVICES10 locations across Europe

Ymagis, a multicultural and international company

FINANCIAL SERVICESGlobal presence

Our fundamental values make us different

Open-minded Ethical

Team Spirit

Vision of the future

Proactive

First rate and recognized skills

Expertise &Transparency

Proximity Innovation & Creativity

Agility & reliability

Our mission

Our Goal: become the Reference Point in our Industry

RATIONALIZATION & EFFICIENCY

INNOVATION

INTERNATIONALIZATION

PROFITABLE GROWTH

Agenda

2

Content Services

Video Presentation

6 divisions covering the entirevalue chain for 5 types of clients

Post Production

TheatricalDelivery

Digital Distribution

VersioningAccessibility

Restoration

Preservation

TYPE OF ACTIVITY TYPE OF CLIENT

International sales agent

Broadcasters

Distributors

Catalogue owners

Producers

Post Production

More than 100 hours this year

◊ Type of clients: TV and Cinema producers

◊ Services: rushes, sound and picture editing, sound effects, mixing, conformation, colour grading, shoot on film

18%

Sales of the BU


Over 13.000 hours of programming

◊ Type of clients: TV and Cinema producers and distributors

◊ Services: stock subtitling, live subtitling, subtitling for hearing impared, voice-over dubbing, synchronoussubtitling, audio description

20%

Sales of the BU

Theatrical Delivery

◊ Type of clients: Distributors & Exhibitors

◊ Services: content delivery to movie theatres by satellite, web or physical support, broadcast of live events in movietheatres

160.000 deliveries and more than70 live transmissions this year

30%

Sales of the BU


◊ Type of clients: Producers, International Sales Agents, Distributors

◊ Services: content delivery to foreign labs, to broadcasters (TV, VOD platforms), DVD manufacturers, etc.

8000 movie files processed

12%

Sales of the BU

Restoration

◊ Type of clients: Producers, content rights holders

◊ Services: mechanical restoration, digitization, digital picture and sound restoration, shoot on film, …

Around 100 movies each year

15%

Sales of the BU

Preservation

◊ Type of clients: Producers, content rights holders, sales agents, distributors

◊ Services: archive creation, storage, conservation physical and digital preservation, inventory, delivery

2,1 millions physical elements and 5 Po of data

5%

Sales of the BU

Eclair, at the crossroad of new trends

Our mission: To be the new "netlab"

CONTENT VOLUME INCREASE

PLATFORM SERVICES

PICTURE AND SOUND EVOLUTION

◊ Opportunitythroughdiminution of barriers of entry

Technical

Financial

◊ Greaterinformation flow and consultation

◊ Development of access to digital and online content via platform

◊ Creative toolshave becomesoftware availableeverywhere on the web

◊ Important upsidein pictureinnovation

Ergonomics Reproduce

sound and picture


Potential of growth and profitabilityof our divisions

FUTURETODAY

growth

Pro

fita

bility

EBIT

DA Postproduction


Restoration Preservation

Theatrical Delivery


growth Postproduction

Preservation

Theatrical Delivery


Restoration

Pro

fita

bility

EBIT

DA

An active development plan

New OrganisationNew products and

conceptsInternationalisation

A steadyprofitable organicgrowth

A new organization for more automation and synergies

New organisation

Cross-functional

departements

Technicalmeans

centralized

Customer relations and

supplier services

operations

Managmentcontrol system for optimized

projectprofitability

- Operating costs

o Rationalization

o Synergies

o Massification

+ Scalable organisation

=

Migration to platformeconomy: EclairPlay

New

concept

A unique gateway to all divisions, available on-line

A single portal for all our clients’ needs

From an economy of use to an economy of subscription

Post Production

VersioningAccessibility

TheatricalDistribution


RestorationPreservation

Producer √ √ √

Sales agent √ √ √

Theatrical distributor √ √ √

Digital distributor √ √ √

Exhibitor √

Already operational in most divisions

Launch of innovativetechnologies

New

products

Digital preservation at OAIS standards

UHD Blu-ray: new format with an ultra resolution

EclairColor

High Tech innovations

EclairColor, HDR for cinemas, the next image standard

New

products

◊ High Dynamic Range

◊ Wide Colour Gamut

◊ Eclair has worked on HDR for TV platforms

◊ Maximum impact of HDR in movie theatres

◊ Continue to develop our Theatrical Delivery Network

◊ Use our expertise in France and footprint through ourEuropean sites to develop all divisions

◊ International development requires a local approachthrough acquisitions because of the importance of language

◊ A growth potential not included in our targets set in Plan Perform 2020

An added growth potential

InternationalExtend our Europeanpresence through targeted acquisitions

Goals of the BU by the end of 2020

◊ Growth: expected CAGR of 13% over the next 4 years

◊ Profitability: continuous increase with:

an expected positive EBITDA by the end of 2017

an expected EBT break-even in 2018

an expected EBT margin above 5% by 2020

Upside:

At current scope:

◊ External growth and innovation (EclairColor, EclairPlay, etc.)

Focus on EclairColor

HDR: what it brings to the audience

Richer colors(wider color

gamut)

Higher contrast: deep blacks, subtle whites

Better renderingof the details

Closer to whatyou see with

the naked eye

Towards a new quality standard

Presentation of the main featuresof EclairColor

◊ EclairColor is a new proprietary digital color process

◊ Combining postproduction (creative remastering / colorscience) and projection system setup

◊ Projection technology agnostic

◊ A quality brand aiming at being identified by consumersinternationally

EclairColor: the technologycombining Ymagis’ expertises

Color grading (post-production) of the content either at Eclair facilitiesor Eclair-certified post facilites

Validation by Director/DOP

Working from film shooting/dailyrushes or from the graded master

◊ The mastering process ◊ In-Theater

A premium experience at a reasonable cost

Use of high contrast projectors withEclairColor science software

Currently only Sony projectors canplay EclairColor content

Barco to release an EclairColorcompatible projector

An opportunity to attractmore postproduction

An opportunity to sellmore systems

EclairColor: a fast-track project

June 2015: R&D program launched

June 2016: Demo Presentations at CineEurope (Barcelona)

July 2016: Official Announcement

Sept. 2016: First movie remastered with EclairColor and first cinema equipped

Oct. 2016: 2nd cinema equipped on Champs Elysées and Los Angeles Demo

Less than 2 years to launch EclairColor

EclairColor, a business model withhigh potential

An objective of 200 films remasteredand 500-600 systems by 2019

Content owners and third party post companies to pay a mastering fee

Exhibitor to pay a licence fee

◊ The business model

End 2017100-150 systems & 52 films

remastered

End 2018250-300 systems & 100 films

remastered

◊ Targets

See for yourself

Agenda

3

Exhibitor

Services

Video Presentation

3 divisions dedicated to exhibitors

Sales & Field Services

Customer Services

Software Solutions

Full service provider

A unique offer for a turnkey cinema

CinemaDesign

Financial solutions

Installation & Maintenance

TrainingCustomer Support Center

MASTERING THE WHOLE VALUE CHAIN

A positive trend, even before the emergence of the replacement market

Source: CNC, Media Salles, UNIC

€8.8 billion in box office

revenue in Europe in 2015, an increase

of +12,5%

Cinema box office leads to positive

investment climate

+6%increase in 2015

of number of admissions in

Europe at 1.26 billion

Market is resilientdespite unfavorable

macroeconomicenvironnement and competition from

other entertainmentsources

Constant deployment of new cinemas in urban centers or shopping malls

+ 40 000 new cinema

openings around the world between 2005

and 2015

+ 2 640screens in UE

between 2010 and 2015

Strong demand for technological

innovation

- Laser projection

- Immersive Sound

- HDR

- Comfortableseating

Continous net growth of number of screens expected in EMEA

10% potential growth over the next 5 years

Source : I.H.S

Western Europe

Central & EasternEurope

Africa & Middle East

+10%

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

2016 2017 2018 2019 2020

Replacement market: growthdriver for the future

A potential of more than 10 800 projection systemsto be replaced by 2020

Source : I.H.S & Company's estimates

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2016 2017 2018 2019 2020

New cinemas Replacement market

An active development plan

New Organisation for more efficiency

New products and concepts

Internationalisation

A steadyprofitable organicgrowth

Better customer proximity withoptimized central structure

New organisation

New procurementstructure &

policies

Efficient IS systems

(CRM, SAP, Customer

Portal)

Regionalsales

management

An efficient & best practice central structure

- Operating costs

o Massification of our spend

o Improve our central cost

functions

+ Scalable organisation

=

Logisticsoptimization

Grow our products and service portfolio

New

products

◊ Product diversification through: Exclusive partnerships

In house innovation

◊ More accurate product differenciation Serving each type of client at different price level

BE ABLE TO ADDRESS ALL OUR CUSTOMER’S NEEDS

◊ Development of new financial solutions to remplace the VPF

An exclusive concept for movie theatres: Eclair "Premium"

Be the natural first choice for any movie theatre project looking for differenciation and enriched experience

EclairDecoPack

EclairImmersive

SoundSystem

EclairExclusive Seating

EclairLobby

Concept

EclairEvent

EclairPlay

EclairDesignConcept

ECLAIR PREMIUM

Geographical expansion and gain in market share

International

Adressing the specific needs of pan-european cinema chainsby offering competitive and tailormade solutions

Benefit from replacement cycle and traction for new technology to gain market sharein mature and growing markets

◊ Increase our marketshare in Europe

◊ New geographicalexpansion

◊ Outside Europe Market, with a particular emphasis on areas withstrong growth potential as Asiaand Africa & North America

◊ An external growth potentialnot included in our targets set in Plan Perform 2020

Goals of the BU by the end of 2020

◊ Market share: current average share to increase to 30% in

2020 (vs. 20% today)

◊ Growth: expected CAGR of 15% over the next 4 years

◊ Profitability: continuous increase with an expected EBT

margin above 5% by 2020

Upside:

At current scope:

◊ External growth and innovation (EclairColor, EclairPremium

format, etc.)

Agenda

4

Perform 2020

Deleveraging at a much faster pace than expected revenue decrease

Decrease of no. of screens based on estimated VPF recoupment date 1

Accelerated debt extinction 1

3 347 3 1752 369

686

2 783 2 783

2 783

2 783

6 130 5 9585 152

3 469

1 025 854

2015 2016 2017 2018 2019 2020

dcinex VPF screens Ymagis VPF screens

1 As of 31 December 2015

In €m

-80

-60

-40

-20

0

20

40

60

2015 2016 2017 2018 2019 2020

VPF Operating CF NFD VPF

HIGH FREE CASH FLOW GENERATION

Expected VPF end by 2020

VPF replaced by organic growth of services activities

◊ CAGR of Content and ExhibitorServices BU >10% between 2016 and 2020 offset the drop in VPF turnover

◊ VPF supports margins to the return of profitability of Content services by the end of 2017 withan EBITDA >0

◊ Expected EBT margin above 5%by 2020 in each BU

41%

2%

26%

38%

33%

60%

H1 2016 2020

VPF

Content Services

Exhibitor Services

Estimated sales breakdown

Perform 2020: a strategic plan for a profitable growth

A CENTRALIZED AND

TRANSERVAL ORGANISATION

A STRATEGY FOCUSED ON HIGH VALUE-

ADDED SERVICES

A STRONG INNOVATION

PROGRAM

Profitabilityfor each BU

Maintainingthe top line

organicallywithout VPF

At constant scope

A new organisation for more efficiency and profitability

◊Rationalization

◊Massification

◊Economy of scale & cost optimization

◊Synergies

An important upside

◊ Additional revenues from acquisitionsAcquisitions opportunities are not included

in BP

◊ Additional revenues from innovationCertain new products such as EclairColor,

EclairPlay & EclairPremium are not included in BP

Focus on our external growthstrategy (i)

Content Services Exhibitor Services

◊ Acquire unit allowingrationalization and costsavings

◊ Expand the high growthand/or profitable divisions in Europe

Theatrical and digital delivery, preservation

localization/versioning

◊ Complete the Europeanexpansion in countries where the marketshare is too low

◊ Grow the business in new territoriesdivisions in Europe

NAFTA

APAC

◊ Integrate new technology providers

Focus on our external growthstrategy (ii)

◊ Acquire profitable relutive businesses and/or companiesto be consolidated and rationalized

◊ Reach full coverage at European level in key businesses and expand in new territories

◊ Finance acquisitions with debt and free cash flow generation

◊ Target €50m additional revenue by 2020, with at least the same profitability as the rest of the group

Agenda

5

Appendices

Content Services: presentation of the competitive market

Local International

+

Company size-

Numerousplayers

Exhibitor Services: presentation of the competitive market

Local International

+

- Company size

Ymagis Stock

STOCK EVOLUTION AT 7 OCT. 2016

• Euronext C

• ISIN ticker: FR0011471291

• Shares oustanding: 7,894,390

• Share price: €9.00

• Capitalization: €71m

• Eligible FCPI, label « Entreprise Innovante »

• Analysts: Oddo, Aurel BGC, IdMidcaps

YMAGISPierre [email protected]

CALYPTUSInvestor relationsSophie [email protected]

YMAGIS

Holdings

23.3

%

Odyssée Venture

0.7%

Public

44.2%Amiral

Gestion

12.5%

SHAREHOLDERS’STRUCTURE AT 7 OCT. 2016

CONTACT

STOCK MARKET INFORMATION AT 7 OCT. 2016

5,5

6,5

7,5

8,5

9,5

10,5

sept.-14 mai-15 janv.-16 sept.-16

OTC

AM

0.7%

Fin. de

l’Echiquier

6.1%

Sycomore

12.5%

www.ymagis.com

speakers - ymagis · 2018. 7. 5. · garic deputy ceo jean mizrahi ceo christophe lacroix vp...

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