Global Digital Creations Holdings Limited · HKEX:8271
Global Digital Creations — IPO Roadshow (July 2003)
46 slides from Global Digital Creations's IPO roadshow presentation, July 2003
Slide 1: GDC Global Digital Creations Holdings Limited
GDC ions Holdings Limited ih A Rh i\ = ah AR A Sa
Slide 2: Opportunities
Opportunities
Slide 3: Expanding CG Market
Expanding CG Market Worldwide CG commercial production is forecasted to grow from US$ 25 billion in 2000, to US$ 36 billion by 2004 TOTAL C/A INDUSTRY TOTAL C/A Industry Forecast * Roncarelli Report - 2001 2
Slide 4: Expanding CG Market
Expanding CG Market Seven full length CG movies are among the top 100 grossing movies of all time at worldwide box office Rank Title Year Total box office Released Worldwide (US$ million) 23 Monsters, Inc. 2001 528.9 29 Toy Story 2 1999 485.7 34 Shrek 2001 455.1 55 Ice Age 2002 378.3 67 Toy Story 19
Slide 5: High cost of production
High cost of production Title (Year released) Estimated production cost (US$ million) Final Fantasy: The Spirits Within (2001) 137 Monsters, Inc. (2001) 115 Toy Story 2 (1999) 90 Shrek (2001) 50 A Bug's Life (1998) 50 Source: www.boxofficereport.com and filmforce.ign.com 4
Slide 6: Asia Pacific Region Accounts for increasing share but.....
Asia Pacific Region Accounts for increasing share but..... h There are 7,500 known CG contents facilities in the world. About half are located in North America. h Production of high value CG contents are highly concentrated: less than 1% of all CG production facilities have outputs of more than US$1
Slide 7: Building an Industry
Building an Industry Mission Statement We are the pioneers in a new technology and industry. There are many problems and difficulties in our way. We will conquer and overcome. We believe our future will rest on the people that we train and nurture today. Together working as a team, we will build and
Slide 8: CG Creation and Production
CG Creation and Production h Developed a global and domestic quality content creation business, based on a well-honed production pipeline, and an international and domestic creative team h Run CG training courses, ensuring a continuous supply of skilled manpower for production h Target the global ma
Slide 9: Competitive Edge
Competitive Edge h Integration of pre-production coupled with the CG production studio makes GDC self -sufficient h Research and development capabilities h A stable pool of digital artists cultivated through GDC training h Experienced management team h Low labour costs in CG production compared to t
Slide 10: CG Creation and Production Pipeline
CG Creation and Production Pipeline h Completion of Thru the Moebius Strip in the last quarter of 2003 for worldwide release in early 2004 h Projects in an advanced stage of discussion with WAMC Inc. included co-production of a 26 episodes TV series The New Adventures of Raggedy Ann and Andy; the Th
Slide 11: IP Rights - Thru the Moebius Strip
IP Rights - Thru the Moebius Strip G DC holds the intellectual property rights to Thru the Moebius Strip which is being developed into a 90 minute full length feature CGI 3D high definition animation movie created by French artist, Jean Moebius Giraud (Tron, Alien, 5th Element) These rights result i
Slide 12: A Paradigm shift: From Film
A Paradigm shift : From Film Digital Content Distribution Framework for Digital Cinema 11
Slide 13: To Digital Distribution
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Slide 14: Digital Content Distribution & Exhibition via Digital and Electronic Cinemas
Digital Content Distribution & Exhibition via Digital and Electronic Cinemas We have developed an end-to-end solution for the digital cinema The Digital Super Realism, "DSRTM Digital Film Agile Encoder" compresses and encrypts the films for distribution by satellite, broadband or transportable physi
Slide 15: Business Model: CG Creation and Production
Business Model CG Creation and Production
Slide 16: Business Model
Business Model Process Creation Production Distribution Position the Group Own or co-own Exploit high value end Lead paradigm shift Objective as player in intellectual property of market away from film distribution chain • Script development • Production of CG • Encoder production • Digital Film mov
Slide 17: Corporate Strengths
Corporate Strengths
Slide 18: Corporate Strengths
Corporate Strengths Self-sufficient fully integrated production facilities comprising Lower costs in CG film making sculptors, graphic designers, in the PRC as compared to storyboard artists and CG those in the US production studio Unparalleled Competitive Edge Training Academy provides stable pool
Slide 19: Corporate Strengths
Corporate Strengths Possess proprietary technologies in digital film processing, encryption, compression, storage, delivery and distribution h Developed a 2K x 1K digital cinema solution which is highly cost-effective Creative and technological partnerships with some prominent individuals and corpor
Slide 20: Corporate Strengths
Corporate Strengths Mr. Anthony Neoh, SC, JP Mr. Raymond Dr. Chong Mr. Adrian Mak Neoh Man Nang Chairman & Non- executive Founder & CTO CFO Director CEO h Experienced management team with strong experience and extensive connections in the industry facilitates the sourcing of CG works and partnership
Slide 21: Corporate Strengths
Corporate Strengths Strong shareholders render continuous support to the rapid development of the Group % of shares held immediately after the New Issue and the Capitalization Issue Anthony Neoh 16% Upflow Holdings Limited 28% Morningside CyberVentures Holdings Limited SW Kingsway CITIC Internationa
Slide 22: The Board
The Board Mr. Anthony Neoh, SC, JP Chairman, Non-executive Director Mr. Raymond Neoh Executive Director Mr. Gordon Kwong Independent Non-executive Director (Chairman of the Audit Committee) Prof. Japhet Sebastian Law Independent Non-executive Director (Chairman of the Remuneration Committee) Mr. Ste
Slide 23: Financial Information
Financial Information
Slide 24: Financial Information
Financial Information 2001 2002 (Year ended December 31) Turnover HK$2,240,000 HK$2,306,000 Loss for the year HK$10,317,000 HK$17,429,000 Asset Base HK$45,029,000 HK$81,929,000 (As at December 31) - Fixed Assets HK$24,861,000 HK$28,160,000 - Current Assets HK$20,168,000 HK$53,769,000 23
Slide 25: GDC Global Digital Creations Holdings Limited
GDC ions Holdings Limited ih A Rh i\ = ah AR A Sa
Slide 26: Business Model: Digital Content Distribution and Exhibition
Business Model Digital Content Distribution and Exhibition
Slide 27: Digital Content Distribution & Exhibition via Digital and Electronic Cinemas
Digital Content Distribution & Exhibition via Digital and Electronic Cinemas We have developed an end-to-end solution for the digital cinema The Digital Super Realism, "DSRTM Digital Film Agile Encoder" compresses and encrypts the films for distribution by satellite, broadband or transportable physi
Slide 28: DSR Digital Film Agile Encoder
DSRTM Digital Film Agile Encoder "DSRTM Digital Film Agile Encoder" compresses, encrypts, and packages film-originated or digital-originated contents for distribution by satellite, broadband or transportable physical media. 27
Slide 29: DSR Digital Film Server
DSRTM Digital Film Server "DSRTM Digital Film Server" possesses a 2K film decoding and decryption engines and HDTV video live-streaming engine for the exhibition of digital movies and live HDTV program 28
Slide 30: Technology Leader
Technology Leader h A digital cinema server with h A digital cinema server that runs RAID-1 for the data storage and on Linux Operating System (OS) operating system, a digital film and we all know how reliable server that has redundant-and- the UNIX OS is compared with recoverable OS built into the
Slide 31: Year 2002 and beyond
Market Leader Year 2002 and beyond h Installed first digital cinema theaters in China based on our technology h Commercial release of China's first digitally release movie - Missing Gun based on our technology on May 1st, 2002 h To date, seven (7) digital movies were screened. These movies include C
Slide 32: Year 2002 and beyond
Market Leader Year 2002 and beyond h Entered into agreement with Adlabs Films Limited of India for the sale of 1,400 DSRTM Digital Film Servers over a five year period; to date the largest contract in digital cinema h We have delivered 36 DSR™ Digital Film Servers to India since April 2003 h In Marc
Slide 33: Future Plans: Digital Content Distribution and Exhibition
Future Plans Digital Content Distribution and Exhibition
Slide 34: Future Plans & Strategies
Future Plans & Strategies Digital content distribution and exhibition h Penetrate the Asia Pacific digital cinema markets, targeting PRC, India, Hong Kong and Singapore and h Market the Group's end-to-end also expand into the US digital cinema solution market h Develop upstream and downstream produc
Slide 35: GDC Global Digital Creations Holdings Limited
GDC ions Holdings Limited ih A Rh i\ = ah AR A Sa
Slide 36: Future Plans: CG Creation and Production
Future Plans CG Creation and Production
Slide 37: Future Plans & Strategies
Future Plans & Strategies CG creation and production • Enhance the Group's international recognition • Establish a with a pipeline of high merchandising arm profile production • Develop further • Operate a games • Operate a magazine and intellectual property in development and comics base conjunctio
Slide 38: Future Plans & Strategies
Future Plans & Strategies Provision of CG Training courses Continue to organize training courses for digital artists in the PRC, extending to South East Asia 37
Slide 39: GDC Global Digital Creations Holdings Limited
GDC ions Holdings Limited ih A Rh i\ = ah AR A Sa
Slide 40: Listing Details
Listing Details
Slide 41: Listing Details: Proposed Use of Proceeds
Listing Details Proposed Use of Proceeds ¾ The net proceeds of the share offer, after deducting related commission and expenses are estimated to be approximately HK$53.3 million. HK$ million Strengthening management team and international marketing 4.9 team Developing the digital cinema distribution
Slide 42: Listing Statistics
Listing Statistics
Slide 43: Listing Statistics
Listing Statistics New shares 66,300,000 shares Placing shares 58,300,000 shares (subject to reallocation) Public offer shares 8,000,000 shares (subject to reallocation) Issue price HK$1.00 per share Market capitalization HK$780 million Adjusted net tangible asset 11.84 HK cents value per share
Slide 44: Listing Timetable
Listing Timetable
Slide 45: Listing Timetable
Listing Timetable IPO opens 23 July 2003 IPO closes 28 July 2003 Allotment results announcement 31 July 2003 Dealings on GEM Board commence 4 August 2003 Stock code 8271
Slide 46: GDC Global Digital Creations Holdings Limited
GDC ions Holdings Limited ih A Rh i\ = ah AR A Sa
Global Digital Creations Holdings — IPO Roadshow (July 2003) on 6ix