Notorious Pictures S.p.a. · MIL:NPI
Notorious Pictures — IR Top Lugano Small & Mid Cap Investor Day 2018
17 slides from Notorious Pictures's conference presentation, Sep 21, 2018
Slide 1: Notorious Pictures – Digital Entertainment Company
IR Top Lugano Small & Mid Cap Investor Day September 21st, 2018 NOTORIOUS PICTURES – Digital Entertainment Company
Slide 2: Executive Summary: Who we are
1. Executive Summary Who we are ❖ Notorious Pictures (“Notorious”), founded in 2012 by Guglielmo Marchetti, with offices in Rome and Milan, is an important player in the production and distribution of multimedia contents in Italy. ❖ The company is active in: (i) acquisition of distribution rights fr
Slide 3: Executive Summary: Our history
1. Executive Summary Our history Notorious signs the Notorious IPO on agreement for its first the AIM Italia international co- market First agreement with Renewal of agreements with ”Le avventure di production Netflix Sky, RAI Cinema and Fiocco di Neve" is the first movie 2014 RTI Mediaset. distribu
Slide 4: Executive Summary: Our first years 2013-17
1. Executive 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
Slide 5: Notorious Library: Three macro business areas
2. Business Model Three macro business areas The production, acquisition and distribution of movie film rights, to be exploited in all distribution channels, represents Notorious’ historic core business. The company recently added two new important areas of business: trading of Direct to Video right
Slide 6: Business Model: Film rights life cycle
2. Business Model Film rights life cycle 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 entir
Slide 7: Acquisition of distribution rights vs. direct production
2. Business Model Acquisition of distribution rights VS. Direct production The company expands its library through two principal mechanisms of rights acquisition: ACQUISITION OF DISTRIBUTION RIGHTS PRODUCTION AND CO-PRODUCTION Notorious acquires the distribution rights for the Notorious acquires boo
Slide 8: Direct to Digital
2. Business Model Direct to Digital ❖ 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 enter
Slide 9: International Executive Production
2. Business Model International Executive Production ❖ Recently approved legislation (“Legge Franceschini”) has devoted considerable resources to encourage the production of international films in Italy. ❖ Legge Franceschini establishes a tax credit equal to 30% of the film production costs incurred
Slide 10: Production of TV Series
2. Business Model Production of TV Series ❖ The entering of Over the Top and Telecoms into the contents market has generated exponential growth in the production of TV series. ❖ Through the acquisition of rights options on published books, Notorious is developing pilot subjects and screenplays for t
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% ◼
Slide 12: H1 2018 – Revenues by Business Area and Distribution Channel
3. Financial Data H1 2018 – Revenues by Business Area and Distribution Channel Revenue By Business Area and 1H18 1H17 2017 Channel (€ mln) Cinema 4,0 34,7% 1,5 26,6% 4,5 35,4% PRODUCTION AND Home Video 0,2 1,7% 0,0 0,5% 0,2 1,5% CO -PRODUCTION Kiosk 0,0 0,3% 0,0 0,2% 0,0 0,2% Pay TV 3,5 30,7% 1,8 32
Slide 13: H1 2018 – Revenues by Business Area and Distribution Channel
3. Financial Data H1 2018 – Revenues by Business Area and Distribution Channel ◼ Revenue growth was driven essentially by the positive results of films released in 1H18 and by the growth of Executive Production revenues. ◼ During 1H18 the company released 8 new films (vs. 9 in 1H17) that generated b
Slide 14: 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 ◼ Fix
Slide 15: Attention to investors
4. Investment Opportunity 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: on Novem
Slide 16: Investment Opportunity: Conclusions
4. Investment Opportunity 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 b
Slide 17: Notorious
NOTORIOUS U ° Intermonte UBI><Banca BANCA FINNAT rT] | . IRTOPCONSULTING Deloitte. ( \ DLA PIPER CON IL SUPPORTO DI =— Borsa ltaliana sens oe | Notorious h
Notorious Pictures — IR Top Lugano Small & Mid Cap Investor Day 2018 on 6ix