CORPORATE PRESENTATION October 2015 Executive summary Wild Bunch - - PowerPoint PPT Presentation

CORPORATE PRESENTATION October 2015

Company presentation – October 2015

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Executive summary

• Wild Bunch is a leading pan-European content gatekeeper ideally positioned to benefit from the structural growth coming

from the digital revolution

• Founded in 2003 solely as an international sales company, it is today a unique independent player with a pan

European presence and leading positons in France, Italy, Spain, Germany and Austria

• It recently consolidated its presence in Germany through the merger with Senator Entertainment and became a

listed entity in February 2015

• Since inception, it has delivered profitable growth driven by adequate capital allocation, acquisitions and a

high level of creativity (specifically, FilmoTV was the first VOD/SVOD service launched in France in 2008)

• One of the largest independent film libraries with c. 2,200 titles (including The Artist, Drive, The King’s Speech)
• Excellent bargaining power across the content spectrum from providers to consumers and towards major new

players like Netflix or Amazon

• Future positioning of the company driven by:
• Access to complementary and attractive markets driven by high growth and pool of talents to add scale and

synergies

• The digital revolution through the proliferation of devices to consume content anywhere at anytime, and the

change in consumption patterns will benefit Wild Bunch on its own or through partnerships as it is already well positioned

• The Company is willing to play a pivotal role in the consolidation of the fragmented content distribution landscape and create

value through accretive acquisitions

• Best-in-class management team coming from StudioCanal with a proven track record and capital markets experience

Company presentation – October 2015

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AGENDA COMPANY OVERVIEW BUSINESS MODEL MARKET POSITIONING AND STRATEGY FINANCIALS AND OUTLOOK

Company presentation – October 2015

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Key financials

79% 21%

Segment “Distribution” Segment “International Sales”

* Derived from the single entity statements of Senator Entertainment AG and Wild Bunch S.A.

Selected award winning film releases

• The company covers the complete filmed entertainment

value chain. Specifically

• It finances, co-produces and acquires filmed

entertainment content

• It monetizes the rights on a multi domestic distribution

network across Europe on all media both through traditional and innovative ways

• It monetizes the rights over the rest of the world
• It owns one of the largest film libraries (c. 2,200 titles)

including The Artist, Drive, The King’s Speech)

• In addition it co-finances and/or distributes up to 100

new independent films per year to enhance the long term value of the library

• Strategy driven by:
• Content growth through the acquisition of new rights

for movies and other programs (TV, Web…)

• Increasing customer reach in new geographies

and/or through new platforms

• Delivering value to shareholders through profitable

growth and accretive acquisitions

FY2014 revenue: € 163,2m*

Group overview

Company overview

Wild Bunch is a leading European filmed entertainment content company

Company presentation – October 2015

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Date 2003 2014* Direct distribution countries None France, Italy, Spain, Germany and Austria Employees 14 178 Library 78 titles

• c. 2,200 titles with up

to 100 new added annually Award-winning movies 25 5 Oscars for best movie, 5 Golden Palms, 2 Golden Lions, etc. since 2003 Sales (€m) 25 163 Activities (by revenue)

Others, 7% Theatrical, 26% Video/VoD/ SVoD, 27% TV, 19% International sales, 21%

Others; 11% International sales; 89%

Company overview

Wild Bunch is an entrepreneurial success and an established player today

* 2014 : Senator Entertainment + Wild Bunch SA

Company presentation – October 2015

6 Acquisition of Wild Side, France Founding of Exception Wild Bunch (renamed Wild Bunch in 2006) Launch of VOD/SVOD service (FilmoTV) Creation of Continental Films: Venture backed by Citigroup, dedicated to acquisition of feature films Acquisition of a majority stake in BIM, Italia Launch of Wild Bunch Germany Acquisition of a majority stake in Vértigo (Spain) Creation of Insiders and eCinema February 2015: Successful completion of Senator/Wild Bunch merger brings benefits:

• #2 pan-European independent film distributor
• Synergies to be derived from consolidated

presence in Germany1

• Listing on the German stock exchange to

allow for future growth through acquisitions

• Strong backing from key shareholder

Sapinda that controls c 66%2 Successful restructuring after large impairments for 2013; start of negotiations on merger with Wild Bunch HSW GmbH acquires 50.1% of the share capital after insolvency filing Founding of Joint Venture with Wild Bunch (Central films) Founding of Senator Entertainment AG (1979: Senator Film Verleih GmbH) Berlin IPO

• n the

Neuer Markt segment

1986 1999 2003 2004 2005 2007 2008 2009 2011 2012 2014 2015

Two independent players in Europe’s filmed entertainment content industry joined forces

Company overview

Company presentation – October 2015

7 Since Feb. 2015 COO

• Entrepreneurship History
• Co-Founder and COO of

Wild Bunch

• Executive Vice President for

Production and Distribution at StudioCanal

• COO of Le Studio Canal+
• Accountant Director at La 5
• Auditor at Arthur Andersen
• Expertise
• Strong media-business

manager, who has worked with the most influential producers and filmmakers

Brahim Chioua Vincent Maraval

Since Feb. 2015 CCO

• Entrepreneurship History
• Co-Founder and CCO of

Wild Bunch

• Founded foreign sales label

Wild Bunch as a department

• f StudioCanal
• UGC International Sales

Executive

• Expertise
• 20 years of feature film

acquisition and sales; one of the strongest acquisition and distribution professional worldwide Since Feb. 2015 CEO

• Entrepreneurship History
• Co-Founder, Chairman and

CEO of Wild Bunch

• Senior Executive Vice

President, Universal Studios

• Founder and Chairman and

CEO of StudioCanal

• CFO of Cap Gemini Sogeti
• CFO of Club Méditerranée
• Expertise
• Outstanding knowledge and

network in worldwide media business

Vincent Grimond Markus Maximilian Sturm

Since March 2013 CFO

• Entrepreneurship History
• Managing Director of sports

segment companies of Constantin Medien AG

• Executive Vice President for

corporate planning and Group controlling at Constantin Medien AG

• Controlling and Finance

Manager of Junior Web

• Expertise
• Extensive knowledge in

financing and restructuring

• f media companies

Management Board Members

Company overview

Experienced management team holding c. 25% stake in Wild Bunch

Company presentation – October 2015

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• Established presence across four of the five key

European territories (France, Italy, Spain, Germany and Austria), collaborations for UK in place

• France
• Theatrical distribution via Wild Bunch Distribution
• Video and VOD distribution via Wild Side
• VOD/SVOD via FilmoTV
• Germany
• Wild Bunch Germany (combined German business
• f Senator and Wild Bunch) for direct distribution
• Central Film Verleih, X Verleih
• Italy
• All direct distribution activities via BIM Distribuzione
• Spain
• All direct distribution activities via Vértigo and VOD

distribution via Filmin

International Sales

• Indirect distribution model: Wild Bunch, Elle Driver

and Versatile as value-added intermediary selling rights to local distributors

• International sales helps to control financial risk by

deciding on direct or indirect distribution

• Insiders is a new vehicle that allows Wild Bunch to be

exposed to big-budget US movies without taking financial risk

Paris Berlin France Germany

Domestic distribution channels

Company overview

Established presence in most

• f Europe’s largest markets

Company presentation – October 2015

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43% 26% 31%

EU ROW USA/CANADA

13% 14% 24% 33%

Before 60' 60'-70' 80'-90' 2000-05 2006-…

Acquisition of Wild Side (France) Acquisition of BIM (Italy) Acquisition of Vértigo (Spain)

24% 44% 19% 8% 5%

International Sales France Italy Spain Germany

Direct Distribution

Breakdown of the catalogue by production date* Breakdown of the catalogue by origin* Catalogue by number of titles Breakdown of the catalogue by distribution territory*

Company overview

Wild Bunch has an extensive and well diversified content library

16%

* Excluding Senator’s catalogue as of 2014

Acquisition of Senator (Germany) 80 105 396 436 496 1147 1223 1300 1423 1701 1826 1793 1812 2207

500 1000 1500 2000 2500

Company presentation – October 2015

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AGENDA COMPANY OVERVIEW BUSINESS MODEL MARKET POSITIONING AND STRATEGY FINANCIALS AND OUTLOOK

Company presentation – October 2015

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Content Distribution

• Diverse editorial policy
• Proven access to quality

movies

• Growing film catalogue
• Robust direct and multi-

domestic distribution network

• Worldwide sales capability
• Direct electronic distribution

service Content requires distribution Distribution requires content

Development and production Trading Co financing and production Marketing and packaging Physical and electronic delivery

Scale Reach

Business model

Filmed entertainment content and distribution are closely linked to grow and create value

Company presentation – October 2015

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Diverse editorial policy Access to quality movies Growing film catalogue

• Innovative selection of films with a clear focus on both local content for distribution in its

home markets and premium independent movies

• Over time, the company has built a network of relationships with directors, producers and

agents creating a unique ability to identify new talents

• Diverse library of c. 2,200 titles that include director-driven, art-house, genre and

mainstream fare, as well as documentaries. It includes local, international and English language titles

• Today Wild Bunch has a unique multi domestic distribution network and is active in

France, Italy, Spain, Germany and Austria

• Leading player in international film sales. Its market position has been strengthened by its

experience with foreign distributors worldwide and creative talent

• It has recently launched Insiders, an international sales company based in Los Angeles

dedicated to US independent movies exposure, with a budget of c. USD 25m

• In 2008, pre-empting the competition, Filmoline was created with a focus on the direct

electronic distribution of filmed entertainment across platforms and countries

• In 2015, it also launched its eCinema activities
• Wild Bunch controls, manages and optimises the entire filmed entertainment value

chain from acquisition, distribution and marketing while building a catalogue of rights that can be exploited globally

• Increased value given that the distribution landscape is becoming more and more complex

Content Distribution

Direct network Worldwide sales capability Direct electronic distribution

Gatekeeper

Business model

Wild Bunch acts as a gatekeeper within the content value chain

Company presentation – October 2015

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Wild Bunch has been able to create a unique network to attract projects from around the globe

• Local European movies: Coming from Wild Bunch distribution territories and targeting primarily

domestic markets (budgets from € 2m to € 8m)

• Independent author movies: Director-orientated movies from all over the world for international sales

and local distribution (budgets from € 15m to € 25m)

• Independent mainstream movies: From all over the world with special emphasis on the US, targeting

local distribution (budgets from $ 30m to $ 70m)

• Genre movies: Small budget movies for segmented audiences, targeting international sales and local

distribution, traditional or electronic (budgets from € 0.5m to € 3m) Before acquiring rights attached to a film, Wild Bunch will carefully review the financials

• International sales: The sales team makes estimates giving an ask and a minimum price on a

country-by-country basis

• Direct distribution: Each subsidiary involved provides assessment for each medium
• Financial estimates: Review of the contemplated deal and financial outcome
• Existing commitments: Review of the consistency with the existing line-up and the existing global film

exposure of Wild Bunch

Editorial policy Acquisition process

Business model

A selective and efficient content acquisition process

Company presentation – October 2015

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Direct distribution platform International sales Direct Electronic distribution

• Established presence across four key European countries (France, Italy, Spain, Germany and Austria)

with a pan European mind-set

• Well diversified revenue streams across various distribution channels: theatres, video, TV and

electronic distribution

• Channel agnostic positioning with a proven expertise across all distribution routes to market
• Recognised sales expertise enables to monetise filmed entertainment content worldwide
• Allows Wild Bunch to realize economies of scale on distribution costs, spreading marketing and

advertising expenses for the distribution of one movie across several territories

• Large distribution franchise gives Wild Bunch an increased bargaining power due to its geographic

reach

• By managing the international sales process of a movie, Wild Bunch is able to mitigate its financial

risk exposure

• Sells digital content worldwide and has specific agreements in countries where it has direct

distribution (e.g. Wild Side to Netflix and to iTunes)

• Precursor in using innovative direct distribution means since day one when allowed : day and date

releases, ultra VOD*

• Launched eCinema distribution
• Established FilmoTV which acquires VOD/SVOD film rights from a number of distributors (Wild

Bunch, Warner, Pathé, StudioCanal, Sony, Gaumont…) and mainly focuses on a subscription based revenue model. It is available through IPTV/cable, smart TVs and tablets accessing 80% of addressable market

Business model

The filmed entertainment content distribution is

• rganized around three main pillars

* When VOD is released before the cinema window starts

Company presentation – October 2015

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• Large distribution franchise strongly established in 5

European countries

• Negotiating economics for the rights of a movie made

easier thanks to Wild Bunch’s unique geographic reach

• Ability to mitigate risk amongst countries
• Capitalising on a close proximity with creative talent

emerging from each geography

• Sourcing via day-to-day local relationships and

constant contacts

• Distributing local content is essential in Wild Bunch’s

5 home territories

• Opportunity to address the European market in multiple

geographies instead of having to deal with local players in each country

• Attractive value proposition, especially for international

producers

• Spreading marketing and advertising expenses for

the distribution of one movie across several territories

• This is balanced by the need to continuously tailor

distribution methods to local preferences

“One-stop shop” for content owners Economies of scale on distribution costs Increased bargaining power due to scale Enhanced ability to source local content

Business model

Multi-domestic distribution presence brings strong benefits

Company presentation – October 2015

16 Cumulative cashflow Cumulative EBIT

+ €m

• €m

Theatre Home entertainment Pay-TV SVOD Free TV Library

• Distribution is secured through the acquisition of rights from producers
• Payment of the “minimum guarantee” (MG)
• 1-2 years between the acquisition of a movie right and the theater release date
• Rights can be acquired for all or selected distribution channels and countries
• Broad range of contracts
• Revenue generation driven by several factors (admissions and audience recognition, quality of the film, level of MGs,

competition, etc.)

• Cumulative cash flow usually turns positive around the time of pay TV release
• Targeted gross margins in excess of 20% on the portfolio of movies

Acquisition of movie rights – cash flow profile (for illustrative purposes only)

Business model

Case study : How to acquire a movie and how to capitalize on it

Company presentation – October 2015

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AGENDA COMPANY OVERVIEW BUSINESS MODEL MARKET POSITIONING AND STRATEGY FINANCIALS AND OUTLOOK

Company presentation – October 2015

18 34 35 35 35 35 26 27 28 28 30 20 25 30 35 2012 2013 2014 2015 2016 North America Europe

$bn

Electronic distribution and market opportunity1,2

• Wild Bunch is active in a global growth market: total

worldwide revenue to exceed $100bn in 2017

• Europe 2012A-16E CAGR at 3.6% with a target size of

c $30 bn by 2016E

• Expansion being driven by growing demand in

emerging markets (such as China), while mature markets (such as the US, the UK and Japan) will also continue to grow

• OTT/streaming services will deliver the fastest rates of

growth over the next years both in mature and emerging markets

• In terms of potential consumers, Europe is a larger market

than the already matured US, and has room for growth

• Wild Bunch wants to benefit from Europe’s catch-up

potential by providing attractive content via all distribution channels

• Average expenditure in the US is a more important

factor than in Europe, as a result of more advanced digital penetration

502 308 EU US 216 116 EU US 69.2% 82.1% EU US 3,252 10,247 EU US 15.0 88.3 EU US

Population (m) Households (m) Broadband penetration Electronic distrib. market ($m) Avg expenditure ($)3

Filmed entertainment market worldwide (2010-2015E)¹

Market positioning and strategy

The European filmed entertainment content market provides substantial growth potential

(1) PwC Global Entertainment and Media Outlook 2012-2016 (2) US Census Bureau, Eurostat

Company presentation – October 2015

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India

• Market currently dominated by

Indian releases

• Wild Bunch successfully selling

films since 2007

• Admissions in India to grow by

4.8% up to $2.7bn in 2016

• Gross box office CAGR (2012-

2016): 9.4% Latin America

• Whereas main markets (Argentina, Brazil,

Mexico) show stable growth, territories such as Colombia, Chile or Peru are experiencing strong growth

• Latin America fastest growing region in the

world with CAGR of 7% to $7.1bn in 2018 China

• With a total population of 1.4bn, China remains a substantial source of

growth opportunities

• China to become 3rd largest market by 2018, with total revenue of

$7bn by 2018 and CAGR of 13%

• Wild Bunch already sold commercial-attractive films to China

including March of the Penguins, Largo Winch and Wolf Totem, which already crossed the US$ 100m mark in box office there

• Box office booms from $3.1bn to $5.9bn by 2018
• More than 22% CAGR (2012-2016) in terms of gross box office as

well as admissions

Summary

Market positioning and strategy

Emerging markets remain a key growth driver for the future

Source: PwC Global Entertainment and Media Outlook 2012-2016

Company presentation – October 2015

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• Connected devices increase the size of the installed base for consumption
• Dematerialised content means consumers can access filmed entertainment

“anytime and anywhere”

• Progressive increase in the number of TV channels creates a new

monetisation opportunity

• New content delivery platforms enable distributors to shift the traditional movie

window to maximise the commercial success of filmed entertainment

• The film industry keeps fighting against piracy with mixed effects across

countries

• Films offer a comparatively high entertainment value for each dollar spent

Consumers Technology Industry

Digitisation of filmed entertainment Continued emergence

• f new TV channels

Shift in sequence of releases (“windows”) Proliferation of connected devices Tightening of anti-piracy laws Resilience of consumer spend on films

• Theatres are also taking advantage of this new environment to renew and

propose a more sophisticated offering New experiences

Market positioning and strategy

Industry growth ultimately sustained by key structural changes

Company presentation – October 2015

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• Independent distributors increasingly

struggle to access quality content

• Quality and editorialised content remain

the ultimate key differentiator

• Wild Bunch image and reputation as a company

and as a distributor make it an attractive destination for artistic and managerial talents

• Wild Bunch’s strong relationships in the industry

provide unique access to high quality content

• Proven ability to handle increasing complexity
• The combination of ease of distribution

and broader consumer base increases the value of the addressable market

• Further investment in the expansion of e-business

and FilmoTV will enable Wild Bunch to fully benefit from the digital revolution in France and to replicate its successful business model in other geographies

• Nimble company, channel agnostic, flexible mind-set

and open to changes

• Scale provides distributors with higher

purchasing power and access to better content

• Scale drives overall profitability
• Given its unique presence in 5 European countries, Wild

Bunch has a substantial negotiating power and is able to mitigate risk across its movie portfolio

• Company is poised to create value through

consolidation

Quality

• f the content

Digitalisation Scale Implications for the sector Answers from Wild Bunch

Market positioning and strategy

Wild Bunch is ideally placed to benefit from industry dynamics

Company presentation – October 2015

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• Acquisition of rights from independent producers for new movies and TV series
• Increase overall volume of fresh movies, libraries as well as other content (TV, Web…)
• Acquisition of valuable libraries
• Expand into new geographies
• Export the proven business model to other European countries such as UK, Eastern Europe, Nordic countries
• Expand into fast growing markets (China, India, Latin America, etc…)
• Create commercial relationships and create content links with key markets such as the USA
• Expand into new platforms
• More distribution power to create the ultimate digital content gatekeeper and provider
• More direct distribution and marketing power: make FilmoTV a european player
• Profitable growth
• Economies of scale will bring incremental margins while new business initiatives will provide higher margins
• Accretive acquisitions
• Target companies already identified in geographies such as the UK, Australia, Canada
• Buy and build policy to provide operational synergies and bring complementary revenue streams
• Disciplined financial approach to acquisitions through strict financial metrics

Customer reach Content growth Value delivery

Market positioning and strategy

Wild Bunch to become a global player in the digital era

Company presentation – October 2015

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• Since inception, Wild Bunch’s business model has been based on

the view that the traditional linear model is outdated

• Market pressure and technological changes will force a

reconsideration of media chronology

• Identifying and controlling content remains a key

differentiator

• Promoting and marketing content will require sophisticated

skills

• Complexity and competition will favour large, “industrial”,

versatile first class operations to reap revenues and margins

• Today, Wild Bunch is ideally positioned to maximize revenues

across the value chain

Market positioning and strategy

Wild Bunch to play a central role in the media economy

The linear model is outdated

✔

How Wild Bunch sees the market today

Company presentation – October 2015

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AGENDA COMPANY OVERVIEW BUSINESS MODEL MARKET POSITIONING AND STRATEGY FINANCIALS AND OUTLOOK

Company presentation – October 2015

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Stock price performance since merger

Financials and outlook

Key data

68 9,5 11,1

• 0,7

H1 2015 H1 2014 H1 2015 H1 2014

Revenues (€m) Gross profit (€m)

€68m

Revenue H1 2015

€146m1

Market cap

€11.1m

Gross profit H1 2015

• €0.02
• Adj. diluted

EPS

€84.2m

Net debt H1 2015

74m

Shares

• utstanding

80 90 100 110 120 130 140 150 févr. 2015

• avr. 2015

juin 2015 août 2015

• ct. 2015

Wild Bunch Eurostoxx Media FTSE 350 Media

Financials

(1) As of October 8th 2015

April 23: 2014FY Senator Entertainment results released August 31: 2015 H1 Wild Bunch results released

Company presentation – October 2015

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The 2015 fiscal year was marked by the combination of Senator Entertainment and Wild Bunch creating a new company, listed in Germany and being one of the leading pan European filmed entertainment companies This combination induced significant challenges. The group must, first of all, make significant headway in integrating the two preexisting companies, so that it is run as a single entity and takes advantage of the identified synergies. It also needs to restructure its financial resources, and clearly reverse the Senator trend in operational profitability By expanding its geographical footprint, enlarging its portfolio of content, in both cinema and television, and remaining at the forefront of digital change, Wild Bunch intends, through internal and external growth, to more than double its size over the coming five years 2015 revenues are expected to imply a multiple of 6x to 7x Senator revenues in 2014

Summary

Outlook

Financials and outlook

Company presentation – October 2015

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• Wolf-Dieter Gramatke (Supervisory Board Chairman)
• Founder and Managing Director of Great-Minds Consultants. Former executive for

GST at Universal Europe. Also serves as Supervisory Board Chairman of DEAG

• Prof. Dr. Katja Nettesheim
• Founder and Managing Director of Mediate. Extensive business/investment

experience as advisor. Previously held executive position at Axel Springer regional newspaper

• Pierre Tattevin
• Partner and managing director at Lazard Investment Bank with wide international

experience in the field of filmed entertainment. Previous Board Member of Wild Bunch SA

• Benjamin Waisbren
• Substantial experience in advising clients in the U.S and Europe in media,

especially film investments. President of LSC Fund. Executive producer of more than 25 major motion pictures distributed by Columbia Pictures and Warner Bros

• Hans Mahr
• Founder and Managing Director of mahrmedia. Former member of management at

Premiere AG and RTL Group. Has in-depth knowledge of GST media markets, especially TV and VoD

• Tarek Malak
• Investment Manager at Sapinda. Extensive knowledge in the media, sports and

leisure sector. Former investment banker at Deutsche Bank and Rothschild

Shareholder Structure Supervisory Board members

Committed anchor investor and strong Supervisory Board

Financials and outlook

Management; 24,2% Shard Capital; 3,0% Naya Capital Management; 14,2% SWB Entertainment Investment BV; 45,1% Free float, 13.6%

Company presentation – October 2015

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“The information set forth and included in this presentation is not provided in connection with an offer or solicitation for the purchase or sale of a security and is intended for informational purposes only. This presentation contains forward-looking statements that are subject to risks and uncertainties. Statements contained herein that are not statements of historical fact may be deemed to be forward-looking information. When we use words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may” or similar expressions, we are making forward-looking statements. You should not rely on forward-looking statements because they are subject to a number of assumptions concerning future events, and are subject to a number of uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from those indicated. These factors include, but are not limited to, the following: market risks: consumer behavior towards movies and their consummation, dependence on success of movies, our level of debt and the ability to refinance; inflation, interest rate levels and fluctuations in exchange rates; general economic, political and business conditions and existing and future governmental regulation; and the effects of competition. Please note that we disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.”

Cautionary statements and disclaimer