Leone Film Group Spa · MIL:LFG
Leone Film Group Spa — FY2020 Earnings Presentation
36 slides from Leone Film Group Spa's earnings presentation, Jun 22, 2021
Slide 1: 2020 Results and 2021 business plan
2020 Results and 2021 business plan 22nd June, 2021
Slide 2: Agenda
AGENDA 1 The Group 2 Key Facts 3 Our Roadmap 4 Distribution 5 Production 6 2020 Results and 2021 targets 2
Slide 3: 1. The Group
1. THE GROUP
Slide 4: Two mainstream areas of activity
Two mainstream areas of activity Distribution Production • Theatrical • Production • Free-TV • Co-production • Pay-Tv • Executive production • Home Video • International co-production • Digital • TV series production • International TV series co-production • International executive production servic
Slide 5: A History of Growth
A History of Growth 2001 2002 2007 2009 2013 2014 2015 2016 2017 2018 2019 2020 IPO Bulgari becomes Big Hits: relevant shareholder First Big Hit: La La Land Theatrical Wonder Established The Wolf of Distribution: The Post 1989 First Movie Wall StreetFirst Acquisition Big Hits: Traffic Big Hit: Produ
Slide 6: Italy's largest independent distributor
Italy’s largest independent distributor Box Office 2018 - All Market - LFG pro forma Box Office 2019 - All Market - LFG pro forma BOX OFFICE 2020 - All Market - LFG PROFORMA Distributor Market Share Distributor Market Share WARNER BROS ITALIA 19,4% DISTRIBUTOR Market share WALT DISNEY S.M.P. ITALIA
Slide 7: Two companies creating strong synergies
Two companies creating strong synergies National Distribution Co-Production National Movie Production Executive Production National TV Series Production International TV Series Production International Co-Production International Executive Production • Connect production and distribution • Expand an
Slide 8: Leone Film Group Top Hits since IPO 1/2
Leone Film Group Top Hits since IPO 1/2 Box Office (1) Wonder (2017) 12,4 The Wolf of Wall Street (2013) 12,0 Green Book (2019) 10,1 The Hateful Eight (2016) 8,5 La La Land (2017) 8,3 8 (1) Source: Cinetel, data as of June 15th 2020 in € ml
Slide 9: Leone Film Group Top Hits since IPO 2/2
Leone Film Group Top Hits since IPO 2/2 Box Office (1) 1917 (2020) 6,7 The Post (2018) 6,5 After (2019) 6,4 Mia & the white lion (2019) 5,7 Cena con delitto – Knives Out (2019) 5,2 9 (1) Source: Cinetel, data as of June 15th 2020 in € ml
Slide 10: Leone Film Group Library
Leone Film Group Library • Top independently owned Italian library • Almost 500 movies • Mostly composed of recent titles 10
Slide 11: Snapshot on Sergio Leone's library
Snapshot on Sergio Leone’s library • Cult movies on which LFG commercializes perpetual distribution rights (1) (1) With the exception of ‘Once Upon a Time in America’ whose rights expire in 2035 11
Slide 12: Lotus Top Hits
Lotus Top Hits Box Office (1) Perfetti Sconosciuti (2016) Immaturi (2011) 17,4 Immaturi – Il Viaggio (2012) 15,2 11,8 A Casa Tutti Bene (2018) 9,2 Tutta Colpa di Freud (2014) 7,9 La Pazza Gioia (2016) 6,2 (1) Source: Cinetel, data as of June 15th 2020 in € ml 12
Slide 13: Sales Distribution Cycle
Sales Distribution Cycle Theatrical Home Video Pay Per View/TVOD 1st Pay TV 2st Pay TV Free TV 2st Pay TV Library (1st window) (2nd window) Start 105 days 105 days 180 days 25th Month …til the end 19th Month 49 Month Past now 13
Slide 14: Our Goals
Out Goals: Maintaining the leadership among Italians Independent movie producers and distributors Scaling our successful business model via international expansion Distribute top Produce top Continue independent commercial and expanding our blockbusters high-quality movie, production and TV series,
Slide 15: 2. Key Facts
2. KEY FACTS
Slide 16: Key highlights
Key highlights Content Content Content Acquisition Distribution Production Strong relationships with all Multi-year agreement with RAI Signed agreements with top international independent Long-term sales output deal with directors and screen writers producers, including Lionsgate, Amazon, Sky and Te
Slide 17: 2019 – 2020 Main Releases - Distribution
2019 – 2020 Main Releases - Distribution Title Box Office (1) Green Book 10.1 M€ 1917 6.7 M€ After 6.4 M € Mia and the white lion 5.7 M € Knives Out 5.2 M € 17 (1) Source: Cinetel, data as of August 31st 2020 in € ml
Slide 18: 3. Our Roadmap
3. OUR ROADMAP
Slide 19: Distribution 2021 and 2022 - Titles snapshot
Distribution 2021 and 2022 - Titles snapshot AFTER 3 THE GOOD HOUSE THE WOLF AND Director: Castille Landon THE LION Director: Maya Forbes, Wallace Wolodarsky Director: Gilles de Cast: Josephine Langford, Hero Fiennes Tiffin Maistre Cast: Morena Baccarin, Sigourney Weaver, Kevin Cast: Graham Kline Gr
Slide 20: Production – selection of Movies or TV Series completed or in post-production
Production – selection of Movies or TV Series completed or in post-production Primo Giorno della Mia vita Alfredino – una storia italiana Director: Marco Pontecorvo Director: Paolo Genovese Cast: Anna Foglietta Script: Paolo Genovese Cast: Toni Servillo, Margherita Buy, Valerio Mastrandrea THE LAND
Slide 21: 4. Distribution
4. DISTRIBUTION 5. DISTRIBUTION
Slide 22: Business structure
Business structure Content Acquisition DISTRIBUTION Library Acquisition of new rights for Right management 15-25 years Acquisition of direct-to- Theatrical release highly video movies relevant to set movie revenues along right Resilient cash generation exploitment period Asset rotation as value Afte
Slide 23: Theatrical Distribution market update
Theatrical Distribution market update Tickets by Months 18.000.000 16.000.000 14.000.000 Total Box Office 2020: 182,5 ml 12.000.000 (-71,28% vs 2019) 10.000.000 8.000.000 6.000.000 4.000.000 Total Tickets 2020: 28,1 ml 2.000.000 (-71,20% vs 2019) - JAN FEB MAR APR MAY JUN JUL AGO SEP OCT NOV DEC 202
Slide 24: 5. Production
5. PRODUCTION
Slide 25: Lotus business model hedges its risks pre-covering production budgets
Lotus business model hedges its risks pre- covering production budgets Production Cost coverage Commercialization Production and co-production Project identification Cost partially or totally covered Perpetual sale of content by pre-sales of rights, across all distribution channels international sal
Slide 26: Our investment criteria in movie production
Our investment criteria in movie production Stand-out Marketability We focus on products which can be Commercial appeal is the key driver immediately recognized by the audience (director, cast, story, etc.) Financial discipline Internationalization No cash-out until all movie costs are Products that
Slide 27: 6. 2020 Results and 2021 Targets
6. 2020 RESULTS AND 2021 TARGETS
Slide 28: 2020 Financial highlights
2020 Financial highlights (€/m) 2020E 2020A (1) Δ Δ% Revenues 62,0 72,5 10,5 17,0% EBITDA 27,6 28,0 0,4 1,3% EBIT 1,2 0,9 -0,3 -23,4% Net Income/(Net Loss) (0,9) (1,2) -0,3 28,4% Net Financial Position/(Cash) 69,7 65,9 -3,8 -5,4% Net Debt / EBITDA 2,5 2,4 -0,2 -6,6% Total releases (#) 7 7 0,0 0,0% D
Slide 29: 2020 EBITDA and EBIT generation
2020 EBITDA and EBIT generation (1) € ml EBITDA: 28 ml EBIT: 0,9 ml (1) IFRS, audited 29
Slide 30: 2020 financial structure
2020 financial structure (1) € ml Equity Net working capital Advances Net debt Assets Other debt (1) IFRS, audited 30
Slide 31: Our targets for 2021
Our targets for 2021 (€/m) 2020A 2021E CAGR Revenues 72,5 104,5 44% EBITDA 28,0 39,1 40% EBIT 0,9 6,8 641% Net Income -1,2 4,2 n/a Net Financial Position/(Cash) 65,9 66,4 1% Net Debt / EBITDA 2,4 1,7 -28% Total releases (#) 7 3 -57% Distribution 5 2 -60% Production 2 1 -50% Investments 23,2 32,2 39%
Slide 32: 2021 targets by business
2021 targets by business (€/m) 2020A 2021E CAGR Revenues 72,5 104,5 44% Distribution 24,1 22,9 -5% Production 48,4 81,6 69% Ebitda 28,0 39,1 Distribution 16,1 17,1 6% Production 11,9 22,0 85% Ebit 0,9 6,8 Distribution 0,9 3,4 288% Production 0,0 3,4 n/a 32
Slide 33: Distribution
Distribution (€/m) 2020A 2021E CAGR Theatrical Releases (#) 5 2 -60% Theatrical Revenues 3,0 1,4 -54% Sale of Rights 1,4 2,4 64% Free TV 5,6 6,2 11% Digital + Pay-TV 12,4 10,8 -12% Home Video 0,5 0,2 -56% Others 1,2 1,9 60% Revenues 24,1 22,9 -5% P&A and Other Costs (8,0) -5,8 -27% EBITDA 16,1 17,1
Slide 34: Production
Production (€/m) 2020A 2021E CAGR Productions 2 1 -50% Revenues 48,4 81,6 69% Production, Corporate & P&A costs (36,5) (59,6) 63% EBITDA 11,9 22,0 85% D&A (11,9) (18,6) 57% EBIT 0,0 3,4 n/a 34
Slide 35: Our 2021 expected theatrical releases
Executive Production Our 2021 expected theatrical releases 2021 o Spiral Distribution o After 3 o Supereroi Production 35
Slide 36: Disclaimer
DISCLAIMER This presentation contains certain forward-looking statements that reflect Leone Film Group S.p.A. (“LFG”) management’s current views with respect to future events and financial and operational performance of the company and its subsidiaries. These forward-looking statements are based on