Xilam Animation Sa · EURONEXT:ALXIL
Xilam Animation Sa — Investor Presentation (May 2019)
26 slides from Xilam Animation Sa's investor presentation, May 2019
Slide 1: Animation's Digital Revolution: From Leaders in France to Integrated Digital Players on a Global Scale
ANIMATION’S DIGITAL REVOLUTION: FROM LEADERS IN FRANCE TO INTEGRATED DIGITAL PLAYERS ON A GLOBAL SCALE 1 MAY 2019
Slide 2: A History of Strong & Profitable Growth
A HISTORY OF STRONG & PROFITABLE GROWTH CAGR 2015-2018 : +35% 28,0 CA Sales EBIT ‒ 20 years in existence 24,1 (€m) ‒ 64% of sales abroad ‒ 4 production studios: Paris, 15,9 Lyon, Angoulême, Ho Chi ‒ 1/3 of revenues Minh City 11,3 generated by the catalogue ‒ 400 employees ‒ Recurrence on 9,7 ‒ 7 dir
Slide 3: European Leader in Animation
EUROPEAN LEADER IN ANIMATION › European leader in animation ─ a portfolio of proprietary brands featuring strong reach, reputation and diversification ─ strength both in France and abroad ─ integration along the entire value chain ─ expertise and know-how acknowledged by major broadcasters › Strong
Slide 4: Migration of the Pay-TV Model to Digital Platforms
MIGRATION OF THE PAY-TV MODEL TO DIGITAL PLATFORMS In addition to the arrival of Disney, Netflix has an Les Echos, 26/3/19 essential fact in its possession: 60% of its subscribers watch programs dedicated to children and families, most of which are cartoons. Over the past 18 months, Netflix has recr
Slide 5: Ideally Positioned to Capture the Growth of Transformation
IDEALLY POSITIONED TO CAPTURE THE GROWTH OF TRANSFORMATION › Multiplication of digital platforms (SVOD/AVOD) TV DIGITAL ─ from a local broadcasting issue to a global broadcasting issue FREE TV PAY TV SVOD AVOD › Structural market imbalance ─ high barriers to entry at the level of expertise ─ premium
Slide 6: A Strong Alignment of Capital Interests
A STRONG ALIGNMENT OF CAPITAL INTERESTS Voting rights Audiovisual CDM 38.4% Xilam Group 14.9% Treasury shares 1.1% 1 Other 3.3% Audiovisual CDM 26,3% Float 42.3% Float 57,8% Xilam Group 10,1% Treasury shares A majority of the voting rights 1,5% are held by the founder Other 2 (53.3%) 4,3% (1) Xilam
Slide 7: A 'Virtuous Cycle' Model Creating High Value-Added
A ‘VIRTUOUS CYCLE’ MODEL CREATING HIGH VALUE-ADDED Présentation XILAM ANIMATION – Résultats semestriels 2018 7
Slide 8: Control over the Entire Value Chain
CONTROL OVER THE ENTIRE VALUE CHAIN CREATION PRODUCTION DISTRIBUTION No or very few Cost control Very few rights-holders and margin commissions to on its retention be paid on sales properties Direct production costs financed from 100% to 140% by pre-sales Presentation of 2018 annual results 8
Slide 9: A Healthy and Virtuous Business Model
A HEALTHY AND VIRTUOUS BUSINESS MODEL Evolution of new productions vs. catalogue (M€) ─ Powerful driver of catalogue growth 28.0 ─ strong impact on revenues and profitability +16% CAGR: 24.1 +35%. +52% NEW 15.9 18,2 CATALOGUE +12% PRODUCTIONS +41% 16,3 11.3 +51% ─ Leveraging volume: 10,8 continuousl
Slide 10: A Long-Cycle Model (1/2)
A LONG-CYCLE MODEL (1/2) 2 years 3 years 5-6 years old ∞ Animation PRODUCTION DELIVERY CATALOGUE TRANSITION life cycle PRE-SALES = 100% TO 140% OPENING OF RIGHTS FOR OPENING OF RIGHTS Revenues from COVERAGE OF PRODUCTION THE 1st CYCLE OF FOR 2nd CYCLE OF operations COSTS OPERATION OPERATION Presenta
Slide 11: A Long-Cycle Model (2/2)
A LONG-CYCLE MODEL (2/2) Production costs Receipts Revenues from operations PRODUCTION avr.-18 août-18 déc.-18 avr.-19 août-19 déc.-19 avr.-20 août-20 déc.-20 avr.-21 août-21 déc.-21 avr.-22 Dec. 2023déc.-22 août-22 avr.-23 août-23 déc.-23 Presentation of 2018 annual results 11
Slide 12: Increasing Number of New Productions
INCREASING NUMBER NUMBER OF HALF-HOURS DELIVERED CHANGE IN SALE PRICE PER HALF HOUR (€k) OF NEW CAGR: +13.4%. PRODUCTIONS 63 69 259 264 51 211 181 35 2015 2016 2017 2018 2015 2016 2017 2018 NEW PRODUCTION SALES 2015 – 2018 (€m) +12% €18.2m IFRS 15 €16.3m 15.3 €m published €10.8m €6.3m 2015 2016 2017
Slide 13: Performance and Resilience of the Catalogue
PERFORMANCE EVOLUTION OF CATALOGUE REVENUES AND RESILIENCE €9.0m OF THE published 9,7M€ +26% CATALOGUE €7.7m IFRS 15 €4.9m €5.1m 2015 2016 2017 2018 Conversion to catalogue revenues in 2018 Evolution of revenues from new productions 2015 2016 2017 2018 13
Slide 14: Direct Broadcasting on AVOD Platforms: Increasingly Significant Income on YouTube
DIRECT BROADCASTING ON AVOD PLATFORMS: INCREASINGLY SIGNIFICANT INCOME ON YOUTUBE YOUTUBE TRAFFIC (BILLIONS OF VIEWS) +55% ‒ >10 billion cumulative views at the end of December 2018 40% ‒ YouTube revenue: 9% of total 4.0 revenue 2.6 2.2 ‒ Number of subscribers to YouTube channels: +162% to 1,1 6.3m
Slide 15: Oggy and the Cockroaches, Zig & Sharko: Illustrating Our Model Perfectly
OGGY AND THE COCKROACHES, ZIG & SHARKO: ILLUSTRATING OUR MODEL PERFECTLY Oggy worldwide Zig & Sharko worldwide An intergenerational concept A hit on par with Oggy A key name in animation Nec plus ultra of slapstick comedy 507 episodes, 7 seasons 234 episodes, 3 seasons Distribution in 190 countries
Slide 16: Financial Results 2018: Increasingly Profitable Growth
DES RÉSULTATS RECORDS FINANCIAL RESULTS 2018: INCREASINGLY PROFITABLE GROWTH 16
Slide 17: Results That Confirm the Model's Fitness for Purpose
RESULTS THAT CONFIRM THE MODEL’S FITNESS FOR PURPOSE (In thousands of euros) 2018 2017 restated 2017 published Sales of New Productions 11,690 10,186 9,218 Subsidies and other income on new productions 6,506 6,101 6,101 Total new production products 18,196 16,287 15,319 Catalogue turnover 9,723 7,70
Slide 18: A Financial Situation of Increasing Strength
A FINANCIAL SITUATION OF INCREASING STRENGTH 12.31.17 12.3117 12.31.17 12.31.17 ASSETS (in thousands of euros) 12.31.18 LIABILITIES (thousands of euros) 12.31.18 restated published restated published Goodwill on acquisitions 664 664 664 Share capital 491 447 447 Intangible assets 60,422 53,002 51,07
Slide 19: Close-up on Net Debt
CLOSE-UP ON NET DEBT 12.31.17 12.31.17 (in thousands of euros) 12.3118 restated published Net cash and cash equivalents 2,231 1,770 1,770 Borrowings (3,173) (3,880) (3,880) Debts related to finance leases (882) (1,103) (1,103) Self-liquidating financial debts (5,995) (22,001) (22,001) Net financial
Slide 20: Close-up on Depreciation/Amortization Policy
CLOSE-UP ON DEPRECIATION/AMORTIZATION POLICY (in thousands of euros) 2016 2017 2018 Book value of current productions and catalogue 31,890 41,727 49,037 of which book value of catalogue (A) 16,905 20,944 20,440 Net catalogue revenue (B) 4,637 8,441 9,464 Book value / net catalogue revenue (A) / (B)
Slide 21: Strong Visibility & Confirmed Ambitions
STRONG VISIBILITY & CONFIRMED AMBITIONS
Slide 22: Confirmed Objective: 100 Half-Hours in 2020
CONFIRMED OBJECTIVE: 100 HALF-HOURS IN 2020 Delivery forecasts for new productions (in half-hours) 100 80 69 63 51 35 2015 2016 2017 2018 2019 2020 2021-2023 New productions that, each year, strengthen the catalogue +195 half-hours +300 half-hours Presentation of 2018 annual results 22
Slide 23: An Ambitious Development Strategy
AN AMBITIOUS DEVELOPMENT STRATEGY Digital platforms Accelerate growth on AVOD platforms Preschool activities High merchandising potential, Accellerating new Organic & e-learning and e-gaming production external growth International development Emerging countries + US Strength and resilience of the c
Slide 24: A Coherent External Growth Strategy
A COHERENT EXTERNAL GROWTH STRATEGY XILAM IS LOOKING FOR XILAM OFFERS ‒ editorial strength ‒ studio workshops ‒ business expertise ‒ a talent collective to integrate ‒ financial resources ‒ adjacencies ‒ access to digital platforms The challenge: preparing for tomorrow's growth through acquisitions
Slide 25: Conclusion
CONCLUSION Safety Visibility Growth Profitability Presentation of 2018 annual results 25
Slide 26: We Welcome Your Questions
WE WELCOME YOUR QUESTIONS 26