Investor Day 11.22.2016 2 INVESTOR DAY - HOW BIG IS THE MARKET? - - - PowerPoint PPT Presentation

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Investor Day 11.22.2016 2 INVESTOR DAY - HOW BIG IS THE MARKET? - - - PowerPoint PPT Presentation

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Investor Day 11.22.2016 2 INVESTOR DAY - HOW BIG IS THE MARKET? - HOW FAST DOES IT GROW AND WHY? - WHO IS IN THE MARKET? - WHERE IS YOUR COMPANY POSITIONED? - HOW DO YOU COMPARE WITH THE LARGEST COMPANY? - HOW DOES THE MARKET MAKE MONEY AND

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Investor Day 11.22.2016

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INVESTOR DAY 2

  • HOW BIG IS THE MARKET?
  • HOW FAST DOES IT GROW AND WHY?
  • WHO IS IN THE MARKET?
  • WHERE IS YOUR COMPANY POSITIONED?
  • HOW DO YOU COMPARE WITH THE LARGEST COMPANY?
  • HOW DOES THE MARKET MAKE MONEY AND HOW DO YOU?
  • HOW DO YOU INTEND TO EXPAND?
  • WHAT ARE THE TRACK RECORDS OF THE MANAGERS

WHOSE JOB IS TO IMPLEMENT THE PLANS?

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VIDEO PROMO

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HOW BIG IS THE MARKET?

INVESTOR DAY

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2-3 DIFFERENT MARKETS, PROGRESSIVELY MERGING (DIGITAL MARKETING) ADVERTISING VIDEO PRODUCTION

ADVERTISING AGENCY EVENT AGENCY DIGITAL AGENCY PRODUCTION COMPANY ADVERTISER (CLIENT) CLIENT CLIENT

EVENT ORGANIZATION

INVESTOR DAY

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Source: eMarketer, Statista

Global advertising spending is expected to reach nearly $700b by 2018

GLOBAL ADVERTISING SPENDING ($b)

INVESTOR DAY

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17.4 12.2

  • 2.5

2.9 4.8 2.2 0.2 2.3 0.3

2015 2016

  • 1.3
  • 11.8
  • 7.7
  • 10.9
  • 6.5

2.2 4.5

Total Newspapers Magazines Radio Out-of-home Cinema TV Internet

INVESTOR DAY

Source: WARC, MarketingCharts, Statista

Digital communication is the fastest growing segment

YOY GLOBAL CHANGE IN ADVERTISING SPENDING BY MEDIUM (%)

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8 INVESTOR DAY

Source: ZenithOptimedia, Cisco Visual Networking Index

T e l e v i s i

  • n

D e s k t

  • p

i n t e r n e t M

  • b

i l e i n t e r n e t N e w s p a p e r s M a g a z i n e s R a d i

  • C

i n e m a &

  • u

t d

  • r

VIDEO CONTENT

Video-related media will continue to get the largest share of marketing budgets

DISTRIBUTION OF GLOBAL ADVERTISING EXPENDITURE 2018, BY MEDIA (%)

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9 INVESTOR DAY

Source: Nielsen

In Italy, TV is by far the leading media

ADVERTISING SPENDING IN ITALY (€m)

Total TV Newspapers Magazines Internet Radio Other

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10 INVESTOR DAY

Source: statements of accounts, management interviews

Casta Diva belongs to the high-end of Italian competitors

TURNOVER OF MAIN PLAYERS IN ITALY (2014, €m)

Film Master* Casta Diva Pictures* Mercurio BRW Indiana Movie Magic Akita Film The Family NCN

(*) excluding events

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11 INVESTOR DAY

Source: Strategy&

The MICE (Meeting, Incentives, Conventions, Exhibition) Industry is composed of four main areas ecompassing a wide range of players

AREA MICE PRODUCTS MICE SERVICES MICE SECTOR-ENABLERS MICE SECTOR-SYSTEM ENABLERS COMPONENTS SAMPLE SUBCOMPONENTS

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12 INVESTOR DAY

Source: ICCA (note: ICCA collects data only on meetings organized by international

Global activity in MICE industry has continued to grow in spite of recessions

GLOBAL TREND IN THE NUMBER OF MEETINGS (no., years)

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13 INVESTOR DAY

Business travel spending, one of the indicators of the sector’s health, is fuelled by emerging economies

GLOBAL BUSINESS TRAVEL SPENDING GROWTH (%)

Source: Carlson Wagonlit Travel; GBTA; Statista; Strategy&

17.8% 13.6% 10.6% 7.6% 5.9% 5.9% 5.9% 5.5% 5.4% 5.3% 5.1% 5.0% 4.5% 2.8% 1.8% 16.5%

  • 5.4%

7.0% 2.1% 5.8% 6.8% 12.5% 5.4% 1.1% 2.5% 4.4% 4.0% 1.6% 2.8%

  • 1.8%

2015 C h i n a R u s s i a G e r m a n y I n d i a S

  • u

t h K

  • r

e a U n i t e d S t a t e s B r a s i l F r a n c e A u s t r a l i a C a n a d a U n i t e d K i n g d

  • m

S p a i n N e t h e r l a n d s I t a l y J a p a n 2014

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14 INVESTOR DAY

Source: UFI World Map (venues with a minimum of 5 000 sqm indoor exhibition space), Strategy&

The exhibition industry is still Euro-centric

REGIONAL EXHIBITION SPACE AVAILABLE (2011)

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15 INVESTOR DAY

WORLD

$ 565b - $ 1,500b 2010-2013 CAGR = 12% in value

ITALY

(only corporate events):

2014 = € 819m 2015 = € 1,040m

The MICE market size exceeds €500b

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16 INVESTOR DAY

(*) Total turnover, including non-events BU Source: Special Events, UK Companies House

The events business is marked by a very high fragmentation

TURNOVER OF MAIN PLAYERS (2015, $m)

T h e I m a g i n a t i

  • n

G r

  • u

p * P i c

  • G

l

  • b

a l S e r v i c e s G e

  • r

g e P . J

  • h

n s

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F r e e m a n X P V

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D a m s A s h fi e l d M e e t i n g s A M C I J a c k M

  • r

t

  • n

H a r g r

  • v

e I n d e x I n V i s i

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C

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m u n i c a t i

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s I n V N T F i l m M a s t e r E v e n t s

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17 INVESTOR DAY

(*) *excluding branded video content Source: Cerved

The events business is marked by a very high fragmentation

TURNOVER OF MAIN PLAYERS (2015, $m)

F I L M M A S T E R E V E N T S U E V E N T S S i n e r g i e N E X T S I M M E T R I C O P R O D E A A L P H A & O M E G A

( D a t

  • n
  • n

c e r t i f i c a t

  • )

F A N D A N G O N E W T O N L A B P A L A Z Z I & G A S C A S T A D I V A G R O U P * P U N K F O R B U I S I N E S S P I A N O B . C R E O I M P A C T N I N E T Y N I N E E V E N T U A L Y

30 30 28 25,7 20 11 10 9 8,5 7,6 6,5 6,3 4,6 4 4 3 3

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18 INVESTOR DAY

HOW FAST DOES IT GROW AND WHY?

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Source: eMarketer, Statista

Global advertising spending is expected to reach nearly $700b by 2018

GLOBAL ADVERTISING SPENDING ($b)

INVESTOR DAY

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20 INVESTOR DAY

Source: ICCA (note: ICCA collects data only on meetings organized by international

Global activity in MICE industry has continued to grow in spite of recessions

GLOBAL TREND IN THE NUMBER OF MEETINGS (no., years)

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BRANDED VIDEO CONTENT

Integrated communication Direct engagement with Advertisers (Clients) Storytelling Social media

INVESTOR DAY

Casta Diva’s integrated offering can profit from current trends

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VIDEO EXAMPLES

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22 INVESTOR DAY

Casta Diva’s integrated offering can profit from current trends

LIVE COMMUNICATION

Web and social media extension (thru video) Pre and post event digital channels (thru video) High tech and user experience events (thru video and VR) Proprietary events

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23 INVESTOR DAY

WHERE IS YOUR COMPANY POSITIONED?

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The only real independent multinational communication company born in Italy and now based in 10 countries

London - Manchester - Milan - Rome - Prague - Beirut - Istanbul - New York - Los Angeles - Buenos Aires - Montevideo - Cape Town - Mumbai

INVESTOR DAY

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DIVERSIFICATION IN THE COMMUNICATION MARKET BRANDED CONTENT LIVE COMMUNICATION MUSIC ENTERTAINMENT CINEMA E TV DIGITAL COMMUNICATION

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26 INVESTOR DAY

Source: CDG - Kobo analysis

Few competitors match Casta Diva’s broad offering and integration capability

COMPETITIVE SCENARIO, ITALY ( = weakness, = strength)

OFFERING POSITIONING Directors Production Other services International presence Digital knowledge Commercials Cinema TV

Film Master

Events, service

BRW

Service

Indiana

Publishing, service

Mercurio Movie Magic Casta Diva

Events, service

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27 INVESTOR DAY

Casta Diva Group’s offering has broadened from branded video content to live communication

BRANDED VIDEO CONTENT LIVE COMMUNICATION LIVE ENTERTAINMENT

Production of commercials and branded content. Design, production and

  • rganization of corporate,

institutional and private events. Blue Note Jazz Club and restaurant

€ 14m € 6m € 5m

B2C

2015 TURNOVER CLIENTS/BRANDS SELECTION (2015)

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28 INVESTOR DAY

The Group’s expansion has been driven by a strong value proposition for local partners

MILESTONES 2005-today

2005 2007 2009 2011 2013 2015 2006 2008 2010 2012 2014 2016

November: CDP Prague

  • ffice is the

first addition to CDP Milano in its first year of

  • perations

December: Egg Milano February: CDP Buenos Aires Rhea Vendors Group SpA invests in CDG January: CDP London & Manchester February: CDP Istanbul November: Mumbai (rep.

  • ffice)

November: CDP New York May: CDP Cape Town February: Los Angeles office November: Egg opens Rome office February: CDP Beirut August: Reverse merger with Blue Note Spa AIM Listing: CDG:MI

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29 INVESTOR DAY

The Group has grown at 18% rate in 10 years

GROWTH METRICS (no., €000)

3,860 6,327 7,412 5,440 9,374 16,892 17,511 17,732 16,045 21,706 20,147 94 244 238 205 179 215 289 503 1,064 1,726 1,640 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Turnover Ebitda 2 2 2 3 5 7 # offices: 8 9 11 11 2 CAGR = 18%

Consolidated figures

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Key clients relationships have fuelled CDG’s initial international expansion, but the Group is growing a broader A class clients base

CLIENT PORTFOLIO (gross margin in €000 and cumulated %)

30 INVESTOR DAY

€ 3,156 € 1,092 € 437 3% 18% 79% 70% 90% 100%

PROCTER & GAMBLE UNIPOL SAI VODAFONE

% of clients

2014

€ 2,419 € 741 € 334 3% 25% 72% 70% 90% 100%

PROCTER & GAMBLE RHEA VENDORS

% of clients

2013

€ 2,750 € 819 € 354 9% 18% 73% 70% 90% 100%

PROCTER & GAMBLE UNIPOL VODAFONE PERFETTI PERFUME HOLDING L'OREAL RHEA VENDORS MAYBELLINE ULKER

% of clients

2015

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More than half of turnover is international

REVENUE MIX: GEOGRAPHIES (% of total turnover)

31 INVESTOR DAY

31% 49% 47% 14% 13% 15% 4% 7% 12% 11% 12% 9% 11% 10% 9% 8% 3% 4% 20% 6% 3% 1%

2013 2014 2015

India UK South Africa Czech Republic Turkey USA Argentina Italy

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Awards

INTERNATIONAL AWARDS WON LAST YEAR (2016)

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32 INVESTOR DAY

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33 INVESTOR DAY

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34 INVESTOR DAY

CDG has recently signed the agreement for the reverse takeover of Blue Note, entertainment company listed on AIM Italia

International brand 13 years of uninterrupted activity 25% of the total Italian live Jazz turnover 60.000 tickets sold per year

  • f which 48.000 sold online

80.000 recipients of BN weekly newsletter Live on Radio Monte Carlo High quality music, food and beverage Perfect location

BLUE NOTE MILANO HIGH-LIGHTS

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35 INVESTOR DAY

Blue Note has hosted the performances

  • f world-famous jazz, blues and soul artists

The Blues Brothers, Stefano Bollani, Dee Dee Bridgewater, Billy Cobham, Chick Corea, Eugenio Finardi, Paolo Fresu, Pino Daniele, Malika Ayane, Al Di Meola, Incognito, Ahmad Jamal, Raphael Gualazzi, Level 42, The Manhattan Transfer, Wynton Marsalis, Brad Mehldau, Marcus Miller, Maceo Parker, Gino Paoli, Enrico Rava, Joshua Redman, Antonella Ruggiero, John Scofield, McCoy Tyner, Chucho Valdes, Ornella Vanoni and The Angels in Harlem Gospel Choir which performs regularly during Christmas period.

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ECONOMIES OF SCALE

36 INVESTOR DAY

The integration of Blue Note within Casta Diva Group can benefit from multiple synergies

LIVE ENTERTAINMENT OFFERING BRAND EXTENSION

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Video Teaser

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38 INVESTOR DAY

1 CITY 12 DAYS 40 LOCATIONS 80 CONCERTS 320 ARTISTS 30.000 + AUDIENCE 3.000.000 € EARNED MEDIA

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39 INVESTOR DAY

Turnover Ebitda Ebitda/Turnover Net Financial Position

  • No. of shares

Share price € 24.660k € 1,118k 4.5% € -249k 10,472,923 € 3.00

The resulting business combination has been valued €31m

COMBINED ENTITY’S KEY FIGURES (BASED ON 2015 BALANCE SHEETS)

Note: valuation and swap ratio approved by the expert appointed by the Court of Milan (‘ex art. 2501 sexies c.c.’)

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2016 H1 Financial Results TOTAL NET REVENUES EBITDA PFN / (Cash)

IN EURO THOUSANDS

H1 ‘16 2.108

  • 47

636 BLUE NOTE CONSOLIDATE H1 ‘15 2.312

  • 222

181 Revenues EBITDA

  • 9% vs H1 ‘15

+79% vs H1 ‘15 closed in June 2016 loss reduction

  • 9%

79% * Dec ‘15 *

INVESTOR DAY

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BLUE NOTE H1 REVENUES (EURO THOUSANDS) Other Events Food & Beverage Shows

€ 2.108

H1 ‘16

€ 344 € 371 € 255 € 327 € 659 € 641 € 868 € 955

€ 2.312

H1 ‘15

INVESTOR DAY

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2016 H1 Financial Results TOTAL NET REVENUES EBITDA PFN / (Cash)

IN EURO THOUSANDS

* Dec ‘15 H1 ‘16 9.669 826

  • 656

CASTA DIVA GROUP CONSOLIDATE H1 ‘15 9.254 721

  • 430 *

Revenues EBITDA +4% vs H1 ‘15 +15% vs H1 ‘15 4% 15%

INVESTOR DAY

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CASTA DIVA GROUP H1 REVENUES (EURO THOUSANDS) Live Communication Branded Content / Cinema / TV

€ 9.669

H1 ‘16

€ 2.631 € 2.418 € 7.038 € 6.836

€ 9.254

H1 ‘15

INVESTOR DAY

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2016 H1 Financial Results TOTAL REVENUES EBITDA PFN / (Cash)

IN EURO THOUSANDS

Blue Note Consolidate 2.108

  • 47

636 Casta Diva Group Consolidate 9.669 826

  • 656

Revenues EBITDA +1,8% vs H1 ‘15 +56% vs H1 ‘15 Aggregate 11.776 779

  • 20

INVESTOR DAY

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CASTA DIVA GROUP + BLUE NOTEH1 REVENUES (EURO THOUSANDS) Blue Note Live Communication Branded Content / Cinema / TV

€ 11.776

H1 ‘16

€ 2.108 € 2.312 € 2.631 € 2.418 € 7.038 € 6.836

€ 11.566

H1 ‘15

INVESTOR DAY

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46 INVESTOR DAY

HOW DOES THE MARKET MAKE MONEY AND HOW DO YOU?

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47 INVESTOR DAY

Target and channels segmentation Seamless use of multiple channels Content is king, distribution is queen Evolution of product-driven companies to media companies

Convergence is the keyword of future communication

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48 INVESTOR DAY

The plan is based on a detailed analysis of revenue and cost drivers for each office

GROUP AVERAGE JOB: P&L (%)

100% 74%

2%

24%

Revenues External production costs Internal production costs Gross margin

Drivers:

# countries # jobs avg job size avg mark up

Drivers:

standard resource pool per job type make/buy strategy local standard costs

Drivers:

make/buy strategy local standard costs

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49 INVESTOR DAY

HOW DO YOU INTEND TO EXPAND?

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Casta Diva Group has identified 4 strategic pillars for development

DEVELOPMENT GUIDELINES

DIGITAL COMMUNICATION

GROWTH BY ACQUISITION

PREFERRED PARTNERSHIPS

INCREASED PRESSURE ON SALES & MARKETING

LIVE COMMUNICATION

GROWTH BY ACQUISITION + FOCUSED INVESTMENTS

FICTION AND STORYTELLING

FOCUSED INVESTMENTS

INVESTOR DAY

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51 INVESTOR DAY

The Group is launching a capital increase with the goal of becoming a leading player in innovative video and live communication leveraging digital technologies

Live Communication: growth by acquisition Digital Communication: growth by acquisition and product development Offering and organizational development

TOTAL FUNDING € 10m

€ 5-7m € 2-4m € 1m

USE OF PROCEEDS

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52 INVESTOR DAY

WHAT ARE THE TRACK RECORDS OF THE MANAGERS WHOSE JOB IS TO IMPLEMENT THE PLANS?

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Paolo Perrotta, Chief Financial Officer

Born in Naples in 1977, he worked in Turin for several years as Financial Controller and Finance Manager in the real estate business. He always wanted to work in media and entertainment and in 2011 he joined Fox Networks Group Italy in Rome as Planning & Reporting Manager, developing a significant experience in programming rights management and financial reporting. He joined Casta Diva Group as CFO to manage the reverse takeover of Blue Note and the listing process at the AIM Italia. His responsibilities include finance, planning, control and administration, capital markets, M&A, corporate development.

INVESTOR DAY

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Luca Oddo, Chairman

Started in the advertising business at Ogilvy & Mather in Milan, first as a copywriter, later as a producer. Five years in agency, fifteen years in a production company before cofounding Casta Diva Pictures. Vast experience with international clients and film directors from all

  • ver the world. Since 2005 he is the partner of Andrea De Micheli in

Casta Diva Pictures. Luca and Andrea are the authors of the book La fabbrica degli spot (The Spot Factory), published in 2007 by editor Fausto Lupetti.

Andrea De Micheli, CEO

One thousand spots produced for one hundred major brands in thirty

  • countries. His teachers have been Oscar-winners like Martin Scorsese,

Dante Ferretti, Nestor Almendros, Peppuccio Tornatore, Stu Hagmann, Paolo Sorrentino and many others, among whom, Jean Jacques Beneix, Dario Argento, John Landis, and the numberless agency creatives who have put their trust in him. He founded two corporate web tv networks, for Enel and Intesa. He has an EAVE master’s degree in cinema and one in multimedia. Today he is partner to Luca Oddo in Casta Diva Group. With him he wrote the book La fabbrica degli spot (The Spot Factory), published in 2007 by editor Fausto Lupetti.

INVESTOR DAY

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"I tell all my students all the time there’s no one way to get into film-making. You don’t have to go to film school to be a film-maker. Many come in through music videos. Many come in through the commercial route. I like the immediacy of commercials because they come and get it quick. You might get a call here are the boards. We shoot in a week. And it has to be cut right after that. So between my feature films, I just don’t want to be sitting around. Doing documentaries, short films, commercials really helps my film-making for."

Excerpt from Spike Lee’s foreword to the book

Luca Oddo, Andrea De Micheli

La fabbrica degli spot (The Spot Factory), 2007 publisher Fausto Lupetti.

INVESTOR DAY

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THANKS FOR LISTENING!

Further information upon request

INVESTOR DAY

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CONTACT

London - Manchester - Milan - Rome - Prague - Beirut - Istanbul - New York - Los Angeles - Buenos Aires - Montevideo - Cape Town - Mumbai

INVESTOR DAY

Andrea De Micheli, CEO

+39 329 6713562 a.demicheli@castadivagroup.com

Luca Oddo, Chairman

+44 7512 253626 l.oddo@castadivagroup.com

Paolo Perrotta, Chief Financial Officer

+39 347 8499051 p.perrotta@castadivagroup.com

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58 INVESTOR DAY

IR Top Consulting Investor Relations Integrae SIM NomAd Corporate Family Office SIM Specialist