Notorious Pictures S.p.a. · MIL:NPI

Notorious Pictures — H1 2018 Earnings Presentation

15 slides from Notorious Pictures's earnings presentation, Sep 17, 2018

  1. Slide 1: Notorious Pictures – Digital Entertainment Company

    NOTORIOUS PICTURES – Digital Entertainment Company Milan, September 17th, 2018

  2. Slide 2: Executive Summary: Who we are

    1. ExecuKve Summary Who we are v Notorious Pictures (“Notorious”), founded in 2012 by Guglielmo MarcheI, with offices in Rome and Milan, is an important player in the produc<on and distribu<on of mul<media contents in Italy. v The company is ac<ve in: (i) acquisiKon of distribuKon rights from third

  3. Slide 3: Executive Summary: Our history

    1. ExecuKve Summary Our history Notorious signs the Notorious IPO on agreement for its the AIM Italia first international market First agreement with Renewal of agreements ”Le avventure di co-production Netflix with Sky, RAI Cinema Fiocco di Neve" is the first movie 2014 and RTI Mediaset. distribute

  4. Slide 4: Our first years 2013-17

    1. ExecuKve Summary Our first 5 years 2013-17 P/L results (€ million) cumulative Revenues 102,5 EBITDA 42,8 EBITDA % 41,8% EBIT 27,2 EBIT % 26,5% Net Profit 19,2 Net Profit % 18,7% Distributed dividends 6,0 4

  5. Slide 5: Three macro business areas

    2. Business Model Three macro business areas The producKon, acquisiKon and distribuKon of movie film rights, to be exploited in all distribu<on channels, represents Notorious’ historic core business. The company recently added two new important areas of business: trading of Direct to Video rights and

  6. Slide 6: Film rights life cycle

    2. Business Model Film rights life cycle Notorious fully controls the first cycle of exploitaKon of film rights that lasts typically 28 months (<me frame now tending to shorten as a consequence of market changes induced by new technologies). This first cycle typically generates 70% of a film enKre reven

  7. Slide 7: Acquisition of distribution rights vs. direct production

    2. Business Model AcquisiKon of distribuKon rights VS. Direct producKon The company expands its library through two principal mechanisms of rights acquisition: ACQUISITION OF DISTRIBUTION RIGHTS PRODUCTION AND CO-PRODUCTION Notorious acquires the distribu<on rights for the Notorious acquires book ri

  8. Slide 8: Direct to Digital

    2. Business Model Direct to Digital v Digital technology developments have allowed the growth of new broadcast channels and new plaaorms for the frui<on of audiovisual contents. Technological innovaKon has driven the success of new media determining a true revolu<on in the home frui<on of entertain

  9. Slide 9: International Executive Production

    2. Business Model InternaKonal ExecuKve ProducKon v Recently approved legisla<on (“Legge Franceschini”) has devoted considerable resources to encourage the produc<on of interna<onal films in Italy. v Legge Franceschini establishes a tax credit equal to 30% of the film producKon costs incurred in Ita

  10. Slide 10: Production of TV Series

    2. Business Model ProducKon of TV Series v The entering of Over the Top and Telecoms into the contents market has generated exponen<al growth in the produc<on of TV series. v Through the acquisi<on of rights op<ons on published books, Notorious is developing pilot subjects and screenplays for the

  11. Slide 11: H1 2018 – P/L results

    3. Financial Data H1 2018 – P/L results Economic Data (€ mln) 1H 2018 1H 2017 2017 Revenues 21,3 9,1 18,0 EBITDA 8,0 3,8 6,0 EBITDA % 37,3% 41,5% 33,3% EBIT - Result from operations 3,4 1,6 1,9 EBIT % 16,0% 17,4% 10,6% Net profit/(loss) for the year 3,0 1,2 1,5 Net Profit/(Loss) % 14,2% 12,7% 8,3% n

  12. Slide 12: H1 2018 – B/S results

    3. Financial Data H1 2018 – B/S results Balance Sheet Data (€ mln) 1H 2018 1H 2017 2017 Fixed assets 11,8 11,9 13,8 Net working capital 10,9 10,9 6,1 Provisions 5,3 5,4 5,2 Net invested capital 17,4 17,4 14,8 Net financial position / (Cash) (5,1) (3,3) (6,2) Shareholders' equity 22,6 20,7 21,0 n Fi

  13. Slide 13: Attention to investors

    4. Investment Opportunity Attention to investors v EQUITY RESEARCH: since the IPO the company is commined 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. v BUY BACK: on Nove

  14. Slide 14: Conclusions

    4. Investment Opportunity Conclusions v Full control of the en<re value chain, including theatrical distribu<on. v Consolida<on of the produc<on/co-­‐produc<on ac<vity provides the base for the development of TV series business. v Significant expansion opportunity provided by the new TV series bus

  15. Slide 15: Notorious

    NOTORIOUS Cc T U R ° Intermonte UBI><Banca BANCA FINNAT rT] | . IRTOPCONSULTING Deloitte. ( ' DLA PIPER — 4 . =— Borsa Italiana ae ( | NoToRIoUs |

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