Notorious Pictures S.p.a. · MIL:NPI
Notorious Pictures — Investor Presentation (May 2019)
24 slides from Notorious Pictures's investor presentation, May 14, 2019
Slide 1: Digital Entertainment Company
Digital Entertainment Company May 2019
Slide 2: Executive Summary
EXECUTIVE SUMMARY 1 e | NOTORIOUS |
Slide 3: Who We Are
WHO WE ARE NOTORIOUS PICTURES (“Notorious”), founded in LONG TERM RELATIONSHIPS with the most 2012 by Guglielmo Marchetti, Chairman and CEO, significant players active in different distribution with offices in Rome and Milan, is an important channels: movie theatres (The Space Cinema player in the p
Slide 4: Our History
OUR HISTORY Notorious signs the agreement for its first First international co- agreements with production TIM and Incorporation of ”Le avventure di Vodafone Notorious Cinemas Fiocco di Neve" is the first movie distributed by Notorious Notorious IPO on the AIM Italia First agreement with market Netf
Slide 5: Business Model
BUSINESS MODEL 2. | NOTORIOUS |
Slide 6: 4 Macro Business Areas
4 MACRO BUSINESS AREAS THEATRICAL PRODUCTION AND CO-PRODUCTION HOME VIDEO ACQUISITION OF PPV - PAY TV MOVIE RIGHTS NOTORIOUS PRINTING AND FROM THIRD PICTURES ADVERTISING PARTIES AT INT.L LIBRARY ACTIVITIES FREE TV FILM MARKETS DIGITAL LIBRARY - DIRECT TO VIDEO INTERNATIONAL SALES INTERNATIONATIONAL
Slide 7: Film Rights Lifecycle
FILM RIGHTS LIFECYCLE 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 entire revenues, with th
Slide 8: Distribution vs. Production
DISTRIBUTION vs. PRODUCTION NOTORIOUS PICTURES 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 Italian Notorious acquires book rights and develop
Slide 9: Direct to Digital
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 entertainment contents.
Slide 10: International Executive Production
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 in Italy. ❖ Notor
Slide 11: TV Series Production
TV SERIES PRODUCTION ❖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 the production of TV ser
Slide 12: Notorious Cinemas
NOTORIOUS CINEMAS 3 e | NOTORIOUS |
Slide 13: Notorious Cinemas and CEO Andrea Stratta
NOTORIOUS CINEMAS ESTABLISHED IN NOTORIOUS CINEMAS HAS AS MAIN JANUARY 2019 , IS A 100% SUBSIDIARY OBJECTIVE to manage 20 Multiplex by the OF NOTORIOUS PICTURES. end of 2023 reaching 5 million admissions and becoming the third movie theatre circuit in Italy. Andrea Stratta For over 18 years CEO of U
Slide 14: Notorious Cinemas Born at a Very Favourable Time
NOTORIOUS CINEMAS BORN AT A VERY FAVOURABLE TIME: 1. THE NEW LAW FRANCESCHINI HELPS EXHIBITORS. 2. NEW LAW ON WINDOWS GIVES 105 DAYS OF EXCLUSIVITY. 3. NEW SUMMER TERMS TO RELEASE BLOCKBUSTER DAY & DATE. NOTORIOUS CINEMAS OPENED VERY SUCCESSFULLY ITS FIRST SITE ON MARCH 1°; DURING SUMMER IT WILL BE
Slide 15: Worldwide Cinema Market
WORLDWIDE CINEMA MARKET • USA & Canada Box Office has reached the new record at $11.9 billion. • UK Market hits a new record in admissions due to industry initiatives and investments (reclining). • In the main European countries the market declined due to lack of animation and comedy and the World C
Slide 16: Best Cinema Experience for Our Customers
WE HAVE TO OFFER TO OUR CUSTOMERS THE BEST CINEMA EXPERIENCE 1. Top comfort before, during and 4. High level of technology after the vision of a film. in sound & projection. 2. High level of service with great 5. Fully digital experience. attention to cleaning and security. 6. Loyalty program. 3. Bi
Slide 17: Objectives
NOTORIOUS CINEMAS OBJECTIVES 1. 2. BECOMING THE 3rd CIRCUIT OF • New construction in shopping malls CINEMAS IN ITALY • “Takeover” of existing sites WITH 5 MILLION • “Takeover” of traditional cinemas in ADMISSIONS BY downtowns THE END OF 2023 NOTORIOUS CINEMAS 16
Slide 18: Financial Data
FINANCIAL DATA 4. | NOTORIOUS |
Slide 19: 2018 P/L Results
2018 P/L RESULTS Economic Data (€ mln) 2018 2017 Revenues 31,5 18,0 EBITDA 11,1 6,0 EBITDA % 35,3% 33,2% EBIT 4,1 1,9 EBIT % 13,3% 10,5% Net Profit/(Loss) 4,2 1,5 Net Profit/(Loss) % 13,2% 8,2% ❖ 2018 Revenues up 74% vs. 2017. ❖EBITDA of Euro 11.1 million up 85% vs. 2017 and reaching 35.3% of Revenu
Slide 20: 2018 B/S Results
2018 B/S RESULTS Balance Sheet Data (€ mln) 2018 2017 Fixed Assets 14,6 13,8 Net Working Capital 9,2 6,1 Provisions 3,7 5,2 Net Invested Capital 20,1 14,8 Net Financial Position / (Cash) (3,4) (6,2) Shareholders' Equity 23,6 21,0 Dividends * 1,8 1,2 * Approved with reference to the year and payed ou
Slide 21: Investment Opportunity
INVESTMENT OPPORTUNITY 5. 20
Slide 22: Attention to Investors
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: since December 2015 the company ha
Slide 23: Conclusions
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 business, on the back of de
Slide 24: *) Intermonte
*) Intermonte BANCA FINNAT Deloitte. — H Borsa Italiana — a orsa It ( UBI ><Banca aiff IRTOPCONSULTING “ain me London Stock Exchange
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