Notorious Pictures S.p.a. · MIL:NPI
Notorious Pictures — Investor Presentation (September 2019)
25 slides from Notorious Pictures's investor presentation, Sep 27, 2019
Slide 1: Digital Entertainment Company September 2019
Digital Entertainment Company September 2019
Slide 2: Executive Summary
EXECUTIVE SUMMARY 1.
Slide 3: Who We Are
WHO WE ARE ❖ NOTORIOUS PICTURES (“Notorious”), founded in ❖ LONG TERM RELATIONSHIPS with the most 2012 by Guglielmo Marchetti, Chairman and significant players active in different CEO, with offices in Rome and Milan, is an distribution channels: movie theatres (The important player in the production
Slide 4: Our History
OUR HISTORY Notorious signs the agreement for its first First international co- agreements with production Incorporation of ”Le avventure di TIM and Notorious Cinemas Fiocco di Neve" is Vodafone the first movie distributed by Notorious Notorious IPO on the AIM Italia First agreement with market Netf
Slide 5: Business Model
2. BUSINESS MODEL
Slide 6: Business Units
4 BUSINESS UNITS THEATRICAL THEATRICAL DISTRIBUTION HOME VIDEO NOTORIOUS PPV - PAY TV SALES & PICTURES ACQUISITIONS LIBRARY FREE TV DIGITAL VENDITE INTERNAZIONALI PRODUCTION INTERNATIONAL EXECUTIVE PRODUCTION MANAGEMENT OF MOVIE THEATRES 6
Slide 7: Theatrical Distribution
THEATRICAL DISTRIBUTION Notorious fully controls the first cycle of exploitation of film rights that lasts typically 28 months (time frame now tending to shorten as a consequence of market changes induced by new technologies). This first cycle typically generates 70% of a film entire revenues, with
Slide 8: Sales & Acquisitions
SALES & ACQUISITIONS ❖Digital technology developments have allowed the growth of new broadcast channels and new platforms for the fruition of audiovisual contents. Technological innovation has driven the success of new media determining a true revolution in the home fruition of entertainment content
Slide 9: Production
PRODUCTION The Production business unit develops its activity on four distinct business areas: ❖Development ❖Finance ❖Production/Co-produzione ❖International Executive Production 9
Slide 10: Notorious Cinemas
NOTORIOUS CINEMAS 3.
Slide 11: Notorious Cinemas / Andrea Stratta
NOTORIOUS CINEMAS NOTORIOUS CINEMAS HAS AS MAIN ESTABLISHED IN JANUARY 2019, OBJECTIVE to manage Multiplex IS A 100% SUBSIDIARY OF movie theatres both within shopping NOTORIOUS PICTURES. malls and in city centres. Andrea Stratta For over 18 years CEO of UCI Cinemas (Odeon Group), is the new CEO of N
Slide 12: Notorious Cinemas customer experience
1. Top comfort before, during and 4. High level of technology in sound after the vision of a film. and projection. 2. High level of service with great 5. Fully digital experience. attention to cleaning and security. 6. Loyalty program with high 3. Ample choice of food & beverage incentives. not just
Slide 13: Notorious Cinemas Born at a Very Favourable Time
NOTORIOUS CINEMAS BORN AT A VERY FAVOURABLE TIME 1. Despite the growth of new forms of entertainment the movie theatre world market continues to grow (e.g. 2018 record volumes in US and UK). 2. In 2019 the Italian market grows after declines in 2017 e 2018. 3. The recent Legge Franceschini helps exh
Slide 14: Objectives: Opening of 20 Sites by 2023
OBJECTIVES 1. 2. BECOMING THE OPENING OF 20 SITES BY 2023 3rd CIRCUIT OF • New construction in shopping malls CINEMAS IN ITALY • “Takeover” of existing sites WITH 5 MILLION • “Takeover” of traditional cinemas in ADMISSIONS BY downtowns THE END OF 2023 14
Slide 15: Financial Data
FINANANCIAL DATA 4.
Slide 16: Consolidated P/L Results
CONSOLIDATED P/L RESULTS 1H 2019 Economic Data (€ mln) 1H 2018 1H 2017 2018 consolid. Revenues 24,7 21,3 9,1 31,5 EBITDA 7,3 8,0 3,8 11,1 EBITDA % 29,6% 37,3% 41,5% 35,3% EBIT - Result from operations 3,8 3,4 1,6 4,1 EBIT % 15,4% 16,0% 17,4% 13,3% Net profit/(loss) 2,7 3,0 1,2 4,2 Net Profit/(Loss)
Slide 17: Revenues by Business Area
REVENUES BY BUSINESS AREA Revenue By Business 1 H 2019 1 H 2018 2018 Area and Channel (€ mln) THEATRICAL DISTRIBUTION 17,5 71,0% 11,5 60,2% 17,1 61,0% SALES & ACQUISITIONS 5,9 23,8% 0,7 3,7% 2,2 7,7% PRODUCTION - 0,0% 6,9 36,1% 8,7 31,3% 0,7 2,9% - 0,0% - 0,0% Other Revenues & Inventories 0,6 2,2% 2
Slide 18: Impact of IFRS 16 on EBITDA
IMPACT OF IFRS 16 ON EBITDA P/L Impact (€ mln) Revenues 0,0 EBITDA + 0,2 EBIT - Result from operations - 0,1 Net profit/(loss) - 0,1 ❖ The application of the IFRS 16 accounting principle produces negligible effects on the P/L, essentially limited to the substitution of rental and lease costs with th
Slide 19: Consolidated B/S Results
CONSOLIDATED B/S RESULTS 1H 2019 Balance Sheet Data (€ mln) 1H 2018 2018 consolid. Fixed assets 19,9 11,8 14,6 Net working capital 13,4 10,9 9,2 Provisions 3,8 5,3 3,7 Net invested capital 29,5 17,4 20,1 Net financial position / (Cash) 5,2 (5,1) (3,4) Shareholders' equity 24,3 22,6 23,6 ❖Fixed Asset
Slide 20: Impact of IFRS 16 on the NFP
IMPACT OF IFRS 16 ON THE NFP B/S Impacts (€ mln) Fixed Assets + 5,2 LT financial indebtness - 4,7 LT financial indebtness - 0,6 Net Worth - 0,1 ❖ The application of the IFRS 16 accounting principle has a more relevant impact on the B/S. ❖ Fixed assets increase by approximately Euro 5.2 million as a
Slide 21: Investment Opportunity
INVESTMENT OPPORTUNITY 5.
Slide 22: Attention to Investors
ATTENTION TO INVESTORS ❖ EQUITY RESEARCH: since the IPO the company is committed to ensure the publishing of quality research on its stock. Currently Intermonte and UBI Banca publish regular research and periodic updates on the Notorious Pictures stock. ❖ BUY BACK: since December 2015 the company ha
Slide 23: Conclusions
CONCLUSIONS ❖ Full control of the entire value chain, including theatrical distribution. ❖ Consolidation of the production/co-production activity provides the base for the development of TV series business. ❖ Significant expansion opportunity provided by the new TV series business, on the back of de
Slide 24: Partners
PARTNERS * Intermonte UBI><Banca aif IRTOPCONSULTING Deloitte. @ PIPER BANCA FINNAT << i g =— Borsa Italiana a us London
Slide 25: Digital Entertainment Company September 2019
Digital Entertainment Company September 2019
Notorious Pictures — Investor Presentation (September 2019) on 6ix