2015 – 2017 Strategy and Plan
Milan, 28th January 2015
AGENDA
1
4
Our Mission
Distribution
4.1 CONTENT ACQUISITION
4.2 LIBRARY
2
2014 Key Facts
5 Production
3
Our Roadmap to 2017
2014 Preliminary Results
6 and 2015-2017 Plan
2
TODAY’S SPEAKERS
Raffaella
Leone
Andrea
Leone
Marco
Belardi
Francesco
Becchelli
CEO
President & CEO
CEO of Lotus Production
CFO
3
1. OUR MISSION
4
Deeply rooted in the absolute summit
of film-making craft and endeavour
18th November 2014
Acquisition of Lotus Production
18th December 2013
IPO on the Italian AIM
1989-2005
Focus on Free-TV, Pay-TV and
Home Video
1989
2009
Entrance in the movie production
with «Generazione Mille Euro»
2001
Entrance in the theatrical
distribution with «Traffic»
LFG established under the
name «Andrea Leone Film»
5
Our business is focused on two mainstreams
Distribution
•
•
•
•
Theatrical
Free-TV
Pay-TV
Digital
Movie Production
and Product Placement
•
•
•
Co-production
Executive production
International co-production
6
Our ambition is to create the most successful
independent movie production and
distribution group in Italy
Distribute top US
independent
blockbusters
Infrastructure
Produce top
commercial and
high-quality movie
along top-notch
Italian directors
Content
Continue
expanding our
production and
distribution
agreements
Brand
7
Our priorities going forward
Distribute 30 movies and produce additional
12 movies in the next three years
Enter TV-series market in 2015-2016 with a target of
2 productions
Consolidate relationships with US Indipendents
Reference partner of Lionsgate, The Westein Company, Red Granite Productions
First-look alongside our strategic partners
Complete transition to a premium library
Keep on shifting to “high-end”
Quality over quantity
8
2. 2014 KEY FACTS
9
IPO-to-date key highlights
Content
Acquisition
Content
Distribution
Production
Inked a long-term output deal
with Lionsgate/Summit
Signed a volume agreement
with The Weinstein Co.
(“Weinstein”) and Red Granite
Entered new partnership
agreements with 01 Distribution
for 2015 and 2016
Engaged distribution with
Universal(1) and The Space
Sale to Sky, AXN, iTune, ChiliTV,
Telecom, Wuaki
Acquisition of Lotus
Production and involvement of
Marco Belardi as shareholder
and executive director
Signed an agreement with
Giuseppe Tornatore
(1) Through The SpaceMovie
10
Our content providers
are the most reputed
players in the market
“We have closely followed Leone Film Group’s emergence as a major
force in the Italian marketplace, and we’re delighted to establish a
long-term partnership with them for the distribution of our feature
films in Italy…Andrea, Raffaella […] have great and innovative
marketing skills and have built a tremendous relationship with
exhibitors and broadcasters alike.”
Patrick Wachsberger and Rob Friedman, co-chairmen
of Lionsgate Motion Picture Group, Variety, March 3, 2014
2014 Worldwide
ranking
B.O.
737M/$
n.a.
222M/$
Ranking
7(2)
n.a.
8
(1) Source: Box office Mojo
(2) Largest independent producer
Recent hits in
Italy
Previous Italian
distributors
The Hunger Games
The Twilight Saga
Now You See Me
Universal
Eagle Pictures
Universal
The Wolf of Wall Street
Dumb and Dumber To
Leone Film Group
Leone Film Group
Django Unchained
Philomena
Warner Bros
Lucky Red
Market
share
7.1%
n.a.
2.1%
11
In Italy we continue to strenghten our relations
with market leaders
Co-production
Amiche da morire
Co-production
Playing for Keeps
Generazione 1000 Euro
Immaturi and Immaturi Il
Viaggio
Distribution
First Agreement (2012): 6
movies
Second Agreement (2014): 4
movies
Distribution
Tutta colpa di Freud
Una Famiglia Perfetta
Third Agreement: Covers the
entire contracted line-up for
2015 and part of the 2016.
Expandable to other movies
under negotiations
12
The combination will bring mutual benefits and
generate value since inception
•
•
•
•
Accelerate growth in
production
Enter TV—series market
•
•
•
International co-productions
Enter long-term agreements
with directors
Connect production and distribution
Expand and diversify client base
Stronger management team
13
In 2014 our average box office per movie was
the highest among top independent players
€2.5M
€1.7M
€1.5M
€1.1M
LFG
Peer 1
Peer 2
Peer 3
14
3. OUR ROADMAP TO 2017
15
Our key beliefs
1
Market has a stable outlook with upside potential
2
Content will prevail
3
Adaptability increasingly becomes of utmost importance
We expect the theatrical segment will continue to be resilient
New interlopers (e.g.: Netflix, Amazon, etc.) will create additional revenue opportunities
Strong line-ups ensure high-level content at pre-defined and competitive price
Blockbusters have more appealing risk/reward
New media are improving faster than ever (e.g.: Amazon/Woody Allen agreement)
Light organizational structures enable to be open and innovative and to capture opportunities
16
Our competitive arena: competition for time
Cinema is the cheapest entertainment form, resilient over years
Entertainment Industry -> Market size: € 2,2 bn(1)
Exhibitions
6%
Circus and
Shows
9%
2009-2014 Italian Box Office (€ M) (2)
Other
activities
0%
2014
Cinema
29%
2013
619
6.5
2012
605
6.4
2011
Ballet
13%
Sport
15%
575
662
2010
Concert
13%
734
2009
Theatre
15%
7.8
623
2008
6.9
6.5
594
-
200
400
600
800
Box Office revenues / National Consumption
Expenditures (Bps)(3)
Average ticket price (€) ) (3)
30
25
20
15
10
5
0
6.9
24
16
Concert Theatre
13
Sport
12
Circus
and
shows
10
Ballet
6
6
Exibitions Cinema
(1) Source: SIAE annuario dello spettacolo 2013
(2) Source: Cinetel
(3) Source: Istat
17
Our competitive arena: competition for content
Share of revenues in the Italian movie market (€ M)(1)
Vod
0.6%
Vod
0.7%
Free TV
13%
Pay TV
20%
LFG
5.4%
Free TV
12%
Pay TV
22%
Home Video
32%
Theatrical
35%
2008
2014 LFG look-through market share(2)
Home Video
23%
Others
42.5%
Majors
52.1%
Theatrical
42%
2010
(1) Source: 2011, Cineconomy Report, Fondazione Ente dello Spettacolo
(2) Box office of movies distributed by LFG and produced by Lotus. Source: Cinetel
18
Our differentiating business model ideally
positions ourselves to thrive in this evolving
environment
Absence of a
proprietary
distribution network
True partnerships
Contained balance
sheet and P&L risk
Focus on product quality
Alignment of interest
Pre-sale of rights
Distribution fees are paid as
% of theatrical revenues and
not up-fronted as fixed cost
Franchise deals
Cash outlay for P&A postponed
Potential international coproductions leveraging on
our output deals
Visible funding ahead of
investment cycle
More firing capacity
for new content
No-one, except
majors, have similar
agreements in place
No big spikes
No major scale-backs
19
4. DISTRIBUTION
5. DISTRIBUTION
20
Business structure
Content Acquisition
Acquisition of new rights for
20-25 years
Theatrical release highly
relevant to set movie
revenues along right
exploitment period
After first exploitment (~two
years) transition to “library”
DISTRIBUTION
Library
Right management
Acquisition of movies
direct-to-video
Resilient cash generation
Value creation mostly
comes from asset rotation
21
4.1 CONTENT ACQUISITION
5. DISTRIBUTION
22
Distribution structure
Acquisition agreements
DreamWorks
Lionsgate/
Summit
Weinstein
Red Granite
Imagine
Voltage
IM Global
Leone Film Group
Theatrical co-distribution: joint decisions on marketing plan
Free TV
01
Distribution
The Space
Universal
Medusa
Pay TV
Salesforce
Salesforce
Salesforce
Salesforce
SvoD / VoD
Theatres
23
Major procurement agreements
Volume deal signed in December 2012
•
•
•
10 movies between Oct. 2013 and Sept. 2016
Three packages (4+3+3 movies per year)
LFG call option to acquire each package, whose exercise entitles LFG to gain access to
the following one
First package of four movies delivered in Oct. 2013
•
Quinto Potere, Need for Speed, Delivery Man and Amore Cucina e Curry
Second package delayed after change of US top management
Output deal signed in March 2014
•
•
Entire Lionsgate 2015-2017 qualifying production - indicatively 13 movies – i.e.movies
meeting certain features contractually agreed
Two years contract + LFG call option on the third year
Two contracts signed in 2014
•
•
First contract for three movies (The Giver released in 2014 and Chef, Tulip Fever and
to be released in 2015)
A second contract for four movies to be released in 2015 and Q1 2016 under
negotiation
24
Our business is designed to minimize the capital
absorption and the box office risk
Acquisition cost
backed by
distribution contract
Contracted and highly confident pipeline
Sale of right
mitigates P&L
volatility
(1)
P&A advanced by
01 Distribution and
creditable against
Theatrical Revenues
Distribution fee:
variable cost
(1)
Pre-sold
Call option LFG
25
Selected Line-Up
Tulip Fever
Director: Justin
Chadwick
Cast: Christoph Waltz,
Dane Dehaan, Alicia
Vikander, Zach
Galifianakis, Cara
Delevigne, Judi Dench,
Year: 2015
Logline: A 17th century
romance in which an
artist falls for a married
young woman while
he's commissioned to
paint her portrait. The
two invest in the risky
tulip market in hopes to
build a future together.
Adam Jones
Director: John Wells
Cast: Bradley Cooper,
Uma Thurman, Jamie
Dornan, Omar Sy, Sienna
Miller, Lily James, Emma
Thompson, Daniel Bruhl,
Riccardo Scamarcio,
Alicia Vikander
Year: 2015
Logline: A chef
assembles a crew
together in an attempt to
create the best
restaurant ever.
26
Selected Line-Up
Las Madres
Director: TBD
Cast: Jennifer Aniston,
Octavia Spencer,
Leslie Mann
Year: 2015
Big Friendly Giant
Director: Steven Spielberg
Cast: TBD
Year:2016
Logline: : adaptation of
Roald Dahl's beloved
classic children's novel,
"The BFG." Published in
1982
"The BFG," tells the story of
a little girl who leads a
friendly giant and the
Queen of England on a
mission to stop the fiercer,
man-eating giants from
gobbling children.
27
Selected Line-Up
Chaos Walking: The Knife
of never letting go
Director: Robert Zemeckis
Cast: TBD
Year: 2016
Logline:The Carnegie Medal
winning books are set in a
dystopian future with humans
colonizing a distant earth-like
planet. When an infection called
the Noise suddenly makes all
thought audible, privacy vanishes
in an instant. In the ensuing chaos,
a corrupt autocrat threatens to
take control of the human
settlements and wage war with the
indigenous alien race, and only
young Todd Hewitt holds the key to
stopping planet-wide destruction.
A Monster
Calls
Director: J.A.
Bayona
Cast: Liam Neeson,
Felicity Jones, Toby
Kebbel, Sigourney
Weaver
Year: 2016
Logline: A boy
seeks the help of a
tree monster to
cope with his single
mom's terminal
illness
28
Selected Line-Up
DeepWater
Horizon
Director: J.C. Chandor
Cast: Mark Wahlberg
Year: 2016
Logline: Based on the
harrowing true story of
the few hours right
before, during, and after
the world’s biggest oil rig
blew up off the coast of
Louisiana.
The Glass
Castle
Director: Destin
Cretton
Cast: Jennifer
Lawrence
Year: 2016
29
Selected Line-Up
Highlander
Director: CedricNicholas-Troyan
Cast: TBD
Year: 2016
Logline: Based on the
original film of the
popular franchise, an
immortal Scottish
swordsman must
confront the most
bloodthirsty of his kind,
a murderously brutal
barbarian who lusts for
the fabled "Prize".
Houdini
Director: Dean Parisot
Cast: Johnny Depp
Year: 2016
Logline: An action
franchise loosely based
on the biography by
Kalush and Sloman. The
world knows the name
Houdini, but they do not
yet know his double life
as a secret government
agent. In this, a globetrotting action
adventure, Houdini is truly
the world’s first
Superman, a real life
Ethan Hunt, doing battle
with the Anarchists and
his arch rival, Rasputin.
30
Selected Line-Up
La La Land
Director: Damien Chazelle
Cast: Emma Watson, Miles Teller
Year: 2016
Logline: A jazz pianist falls for an
aspiring actress in Los Angeles.
Now You See me: The Second Act
Director: Jon. M. Chu.
Cast: Jesse Eisenberg, Mark Ruffalo, Michael Caine,
Woody Harrelson, Dave Franco, Lizzy Caplan
Year: 2016
31
Selected Line-Up
Sicario
Director: Denis Villeneuve
Cast: Emily Blunt, Benicio Del
Toro, Josh Brolin
Year: 2015
Logline: young female FBI
agent joins a secret CIA
operation to take down a
Mexican cartel boss, a job
that ends up pushing her
ethical and moral values to
the limit.
Power Rangers
Director: TBD
Cast: TBD
Year: 2016
32
Selected Line-Up
The Last Face
Director: Sean Penn
Cast: Javier Bardem,
Charlize Theron
Year: 2015
Logline: A director
(Charlize Theron) of an
international aid
agency in Africa meets
a relief aid doctor
(Javier Bardem) amidst
a political/social
revolution, and
together face tough
choices surrounding
humanitarianism and
life through civil unrest.
The Shack
Director: Forest Whitaker
Cast: Forest Whitaker, Mark Wahlberg
Year: 2015
Logline: In the aftermath of a devastating personal
tragedy, Mackenzie Allen Philips receives a mysterious
note in his mailbox inviting him to The Shack. The letter is
signed Papa, his wife’s nickname for God. Mack
responds and finds himself in the presence of God, and
a life-transforming journey of truth, forgiveness, and
ultimately acceptance.
33
4.2 LIBRARY
34
Library of 400 movies
Evergreens
Blockbusters
Commercial
Once Upon A Time in
America
Traffic
Into The Sun
The Good, The Bad, The
Ugly
Point Break
16 Blocks
Once Upon a Time
in The West
GI Jane
Until Death
35
Snapshot on Sergio Leone’s library
Il Colosso di Rodi
Per qualche dollaro in più
Giù la testa
Sale rights:
Sale rights:
Sale rights:
 100% Italy
Perpetual
 100% Italy
Perpetual
100% Italy
67% International
Perpetual
Il Buono, Il Brutto, Il Cattivo
Un Genio, due compari, un
pollo
C’era una volta in America
 100% Italy
Perpetual
Sale rights:
 50% Italy
Perpetual
C’era una volta il west
I sogni nel mirino
Sale rights:
Sale rights:
100% Italy
67% International
Perpetual
40% Italy
40% International
Perpetual
Sale rights:
Sale rights:
 100% Italy
Perpetual
Colt, an american legend
Colt
Sale rights:
67%% Italy
67% International
Perpetual
36
Library management
Library
Free-TV
6-24 months
Re-runs negotiated case by
case
Exclusive basis
No holdback
Flat fee
Pay-TV
1 year
Exhibition weeks negotiated
case by case
Exclusive basis
Flat fee
Digital
SVoD / PPV: 3 months on
exclusive basis
TVoD/EST: 24 months,
Revenue sharing
37
Our franchise clients for Pay-TV and digital
PPV
VoD
VoD
EST
VoD
TVoD
SVoD
VoD
EST
VoD
EST
VoD
EST
VoD
EST
38
5. PRODUCTION
39
Business structure
Leone Film Group
PRODUCTION
Lotus Production
International co-productions
Italian co-productions
Average production budget:
~€ 6,5 M
Executive productions
TV-series
Average co-production
budget:
~€ 3,5 M
40
Lotus has built a unrivalled reputation on the
market
2014
2011
1996
2009
2007
2002
First
co-productions(5)
“Immaturi”
(Paolo Genovese)
First executive
productions(4)
First TV-series(3)
First TV-format(1) and
commercial spot(2)
Commercial spot
TV format & Short movies
(1) “Indovina chi viene a cena”
(2) “Honda Hornet – Valentino Rossi”
(3) “Viaggio in Italia” (“Ballaro’”)
Theatrical
(4) “Amiche Mie”, produced by Mediavivere, and “Amore 14” (Federico Moccia)
(5) “Ti Sposo Ma Non Troppo” (Gabriele Pignotta) and “Ti Ricordi di Me” (“Rolando
Ravello”)
41
Strong track record in Italian blockbusters(1)
15,2
Immaturi (2011)
11,8
Immaturi – Il Viaggio (2012)
7,9
Tutta colpa di Freud (2014)
3,3
Una Famiglia Perfetta (2012)
(1) Source: Cinetel, € M
42
Lotus is engaged in the origination, execution
and commercialization of its projects
Production
Project identification
Selection of director and cast
and related agreements
Cost coverage
Production
and co-production
Cost covered by international
sales, tax credit, governmental
and regional incentives and
equity
Commercialization
Sale of content across all
distribution channels
Library build-up as rights are
retained
Executive
Production
Costs entirely up-fronted by
the client
Lotus receives a fee and a
bonus depending on box
office (plus other incentives)
No balance sheet or P&L risk
Sale of the entire product to a
single client
No rights are retained
43
Our investment criteria in movie production
Stand-out
we focus on products which can be
immediately recognized by the
audience (director, cast, story, etc.)
Financial discipline
no cash-out until all movie costs are
covered
Marketability
i.e. commercial appeal is the key
driver
Internationalization
products that can be sold outside
national borders
44
Set for growth on the basis
of a solid contracted pipeline
Paolo
Genovese
Paolo
Virzì
Silvio
Muccino
Exclusivity contract
for 2014-2018
• 4 executive productions
for Medusa
Contract for two movies in
2015-2017
• Co-productions
• First release in Q1 2016
“Le Leggi del Desiderio”
• Executive production
(Medusa)
• Release on Feb. 25, 2015
1 TV-series for Mediaset
• 6 episodes (2015-2016)
Option for another one movie
• Release in 2017
Maccio
Capatonda
Carlo
Vanzina
Giuseppe
Tornatore
“Italiano Medio”
• Executive production
(Medusa)
• Release on Jan. 29, 2015
“Miami Beach”
• Co-production
• One movie in 2016
Contract for another one
movie
45
6. 2014 PRELIMINARY RESULTS
AND 2015-2017 PLAN
46
Basis for preparation and key factors
potentially impacting on 2014 final results
BASIS FOR PREPARATION
Revenues
Theatrical Cinetel reports
POTENTIALLY IMPACTING
FACTORS
Detailed consolidation
adjustments
Pay-TV: contracts in place
Actual distributors’ reports on
movie income and P&A
Service costs
Interest rates
P&A: budget approved with distributors
Mark-to-market of derivatives (FX hedging)
with notional value of USD ~10 mn
Right sale: existing contracts
Lotus Production and
Pacmedia LLC
Actual 2014 results and IFRS translation
47
2014 Preliminary financial highlights(1)
2013A(2)
2014P (3)
YoY Change
H1 2014(2)
Revenues
20,3
21,9
8,0%
11,3
Ebitda
12,6
13,3
6,0%
7,1
Capex
12,4
10,7(4)
9,5%
5,0
NFP/(Cash)
(3,4)
7,5
n.m.
2,8
€M
(1)
(2)
(3)
(4)
IFRS, unaudited
Consolidated, IFRS, audited
Consolidation of LFG S.p.A. and Pacmedia S.r.l.. Does not include neither Pacmedia LLC nor Lotus Production s.r.l.
Includes €1.6 mn for the acquisition of Lotus Production s.r.l.
48
2014 Preliminary side-by-side financial highlights
LFG(1)
€M
LOTUS(2)
LFG
Pro-forma
Revenues
21,9
8,1
30,0
Ebitda
13,3
0,7
14,0
CAPEX
10,7(3)
1,3
12,0
7,5
1,4
8,9
NFP
(1)
(2)
(3)
IFRS, unaudited, includes LFG S.p.A. and Pacmedia S.r.l. only.
ITA GAAP, unaudited, covering Jan-Dec 2014
Includes €1.6 mn for the acquisition of Lotus Production s.r.l.
49
2014 LFG financial structure(1)
Committed Lines as of today
(€ M)
Net Financial Position as of
31 December 2014(1) (€ M)
18,5
Average cost:
Eur 3m + ~335
7,5
NFP
Credit line against
invoices/contract
1,4
Debt
5,1
Short-term
7,7
1,4
Revolving
Cash
0,4
(1)
IFRS, unaudited, includes LFG S.p.A. and Pacmedia S.r.l. only.
50
Key underlying assumptions
Distribution
Production and Product Placement
Co-distribution model to remain in place (i.e. LFG
retaining 50% of equity interest)
Only contracted or highly- confident movies included
in the projections
Exercise of the option for the second and third
Dreamworks movie slate or equivalent
Exercise of the options for another one movie with
Silvio Muccino and one with Maccio Capatonda not
included
Only contracted or highly-confident movies
included in 2015 and 2016 projections
Proprietary or acquired screenplays under
development not included
4 out 13 movies in 2017 already contracted
USD/€ exchange rate (1)
2015: 1.29 (USD 10M already
funded)
2016-17: 1.06
Pre-tax cost of funding : 4.3%
5-yrs IRS: 0,3%(2)
Spread: 400 bps
Key
assumptions
Pay-out: ~50% of consolidated
net income
(1) Source: Bloomberg, Brokers’ report
(2) Source: Il Sole 24 Ore
Average Tax rate: 32%
51
Our targets for 2017
2013A
2014P
2015E
2016E
2017E
2014P – 2017E
CAGR
Revenues
20,3
30,0
31,2
52,5
62,4
27,6%
Ebitda
12,6
14,0
12,4
31,9
36,7
37,9%
Ebit
4,3
n.a.
4,3
8,0
10,8
n.a.
Net Income
2,2
n.a.
2,6
4,7
7,2
n.a.
(3,3)
8,9
9,4
16,4
20,8
n.m.
Total releases (#)
4
12
11
14
20
n.m.
Distribution
2
9
8
10
13
n.m.
Production
2
3
3
4
7
n.m.
Net Financial
Position/(Cash)
Pro-forma with Lotus(1)(2)
(1)
(2)
LFG: IFRS, unaudited, includes LFG S.p.A. and Pacmedia S.r.l. only.
Lotus: ITA GAAP, unaudited, covering Jan-Dec 2014
52
Key financial ratios
2013A
2014P(1)
2015E
2016E
2017E
62%
47%
40%
61%
59%
21%
n.a.
14%
15%
17%
Net Debt / Ebitda
n.m.
0.64x
0.76x
0.51x
0.57x
D/(D+E)
n.m.
n.a.
30%
47%
52%
ROAE(3)
23.9%
n.a.
8.6%
14,0%
19.3%
n.m.
0.60x
0.46x
0.49x
0.63x
Ebitda margin
Ebit margin
Adjusted Net
Debt/ Ebitda(2)
Pro-forma with Lotus(1)
(1)
(2)
(3)
Pro-forma with Lotus. LFG and Pacmedia S.r.l.: IFRS, unaudited. Lotus: ITA GAAP, unaudited, Jan-Dec 2014
Year-end net debt adjusted for pre-payments for movie acquisitions
Average Equity
53
2017 targets by business
2013A
2014P(1)
2015E
2016E
2017E
Revenues
20,3
30,0
31,2
52,4
62,4
Distribution
10,2
19,8
13,0
31,0
33,6
Production & Product Placement
10,0
10,2
18,2
21,4
28,8
Ebitda
12,6
14,0
12,4
31,9
36,7
Distribution
5,5
n.a.
7,5
23,0
25,3
Production & Product Placement
7,1
n.a
4,9
8,9
11,4
Ebit
4,3
n.a.
4,3
8,0
10,8
Distribution
1,6
n.a.
2,0
4,1
4,7
Production & Product Placement
2,7
n.a.
2,2
3,9
6,2
€M
(1)
LFG and Pacmedia S.r.l.: IFRS, unaudited. Lotus: ITA GAAP, unaudited, Jan-Dec 2014
54
Distribution
2013A
2014P(1)
2015E
2016E
2017E
2/33
9/65
8/35
10/90
13/80
Theatrical Revenues
1,2
4,1
3,2
7,8
7,8
Sale of Rights
7,3
13,1
3,8
16,6
17,0
Pay-TV
0,7
1,1
2,5
2,2
4,2
Library
n.a.(3)
n.a.(3)
3,3
2,4
2,4
Other(2)
1,0
1,5
0,3
2,0
2,3
Revenues
10,2
19,8
13,1
31,0
33,6
P&A and overheads
4,8
n.a.
(5,5)
(8,0)
(8,4)
Ebitda
5,5
-
7,5
23,0
25,3
Amortizations
3,9
-
(5,5)
(18,9)
(20,6)
Ebit
1,6
-
2,0
4,1
4,7
€M
Theatrical Releases (#)/ Av. budget ($M)
(1)
(2)
(3)
LFG and Pacmedia S.r.l.: IFRS, unaudited. Lotus: ITA GAAP, unaudited, Jan-Dec 2014
Include third-party rights, international, VoD, home video and regional incentives
Included in the various items
55
Distribution - Key financial ratios
2013A
2014P(1)
2015E
2016E
2017E
Ebitda margin
53%
n.a.
57%
74%
75%
Ebit margin
15%
n.a.
31%
15%
22%
(1)
LFG and Pacmedia S.r.l.: IFRS, unaudited. Lotus: ITA GAAP, unaudited, Jan-Dec 2014
56
Production & Product placement
2013A
2014P(1)
2015E
2016E
2017E
Theatrical Releases (#)
2
3
3
4
7
Co-productions
2
2
1
1
5
Executive productions
-
-
2
3
2
Revenues
10,0
10,2
18,2
21,4
28,8
Co-productions
10,0
-
8,7
17,1
16,0
-
-
9,5
4,3
12,8
Production Costs and P&A
(2,9)
-
(13,2)
(12,5)
(17,4)
Ebitda
7,1
-
4,9
8,9
11,4
D&A
(4,4)
-
(2,7)
(5,0)
(5,2)
Ebit
2,7
-
2,2
3,9
6,2
€M
Executive productions
(1)
LFG and Pacmedia S.r.l.: IFRS, unaudited. Lotus: ITA GAAP, unaudited, Jan-Dec 2014
57
Production- Key financial ratios
2013A
2014P(1)
2015
2016
2017
Ebitda margin
n.m.%
n.a.
27%
42%
40%
Ebit margin
n.m.%
n.a.
12%
18%
21%
(1)
LFG and Pacmedia S.r.l.: IFRS, unaudited. Lotus: ITA GAAP, unaudited, Jan-Dec 2014
58
Investments (€ M)
Distribution
40
34
35
Production
30
25
25
18
20
15
25
22
9
10
5
9
9
3
0
2015
(1)
(2)
2016
100% of movie acquisition cost for distribution
Investment for 2018 pipeline not included
(2)
2017
59
Proposed buy-back and 2015 financial calendar
BUY-BACK – KEY FEATURES
• Proposal of the Board of Directors to
be submitted to shareholders’ general
meeting of April 22th, 2015
• Size: up to € 1,0 M (~2.8% of share
capital and ~12% of free float at
current trading price)
2015 FINANCIAL CALENDAR
• 11 March: Board of Directors to
approve 2014 consolidated results
• 22 April: AGM convened to approve
2014 separated and consolidated
results and the proposed buy-back
• 28 September: Board of Directors to
approve H1 2015 consolidated
results
60
Our contracted and highly-confident pipeline
2
0
1
5
2
0
1
6
2
0
1
7
1.
2.
1.
2.
3.
1.
2.
3.
4.
5.
1.
2.
Italiano medio
Le leggi del desiderio
International Movie
Mi vuoi risposare
Un po’ di felicità
1.
Power Rangers
First movie Dreamworks 2.
Second movie Dreamworksù3.
4.
Virzì
5.
Per sempre Natale
6.
1Q
1.
TV-Series
Chaos Walking
Houdini
First movie Dreamworks
Second movie Dreamw.
Miami Beach
Italian Co-production
2Q
Contracts under negotiation
1.
2.
3.
4.
5.
6.
7.
8.
1.
2.
3.
Sicario
Tulip Fever
A Monster Calls
Highlander
Deep Water Horizon
Las Madres
Now You See Me 2
Glass Castle
Lalaland
Tornatore
Tornatore
Paolo Genovese
Tv-series
3Q
1.
2.
3.
4.
5.
6.
The last face
Adam Jones
International movie
International movie
Father and Daughters
Italian Movie Production
1.
2.
Shack
Big Friendly Giant
LFG/Lotus
(Production)
Weinstein
Lionsgate
Dreamworks
Voltage
1.
Ricky StanIcky
4Q
61
Our core values
A lifetime commitment
62
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 LFG’s current
expectations and projections about future events. Because these forwardlooking statements are subject to risks and uncertainties, actual future results
or performance may differ materially from those expressed in or implied by
these statements due to any number of different factors, many of which are
beyond the ability of LFG to control or estimate precisely, including changes in
the regulatory environment, future market developments and other risks.
You are cautioned not to place undue reliance on the forward-looking
statements contained herein, which are made only as of the date of this
presentation. LFG does not undertake any obligation to publicly release any
updates or revisions to any forward-looking statements to reflect events or
circumstances after the date of this presentation. This presentation does not
constitute a recommendation regarding the securities of LFG.
63