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Enter the cinema of the future… DIGITAL TECHNOLOGIES FOR THE CINEMA INDUSTRY Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014.

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Presentation on theme: "Enter the cinema of the future… DIGITAL TECHNOLOGIES FOR THE CINEMA INDUSTRY Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014."— Presentation transcript:

1 Enter the cinema of the future… DIGITAL TECHNOLOGIES FOR THE CINEMA INDUSTRY Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014

2 2 Activity: increase of 9% as at September 30, 2013 Financial results: a 27% improvement in the current result before taxes as at June 30, 2013 Important progress in strategy implementation since the IPO Strengthening of positions internationally Creation of a JV with SmartJog/TDF YMAGIS, the specialist in digital technologies for the cinema industry

3 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 Our expertise 3 Operating at every step of the value chain Localization Delivery Distribution Technical services and marketing Installation & maintenance ExhibitionProduction Storage & archiving Production Post Production Post Production Financing solutions Technological solutions Management of “fees” financing digital equipment

4 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 Our profile 4 Two buzz words: growth and profitability Prizes: Deloitte In Extenso Fast 50 France 2013 and Deloitte Fast 500 EMEA 2013 for the strongest growth over 5 years An innovative company Half the staff made up of engineers and technicians Proprietary software solutions An international company N°1 in France, in Germany and in Spain (1) Commercial development in 11 countries The confidence of more than 190 American distributors and more than 180 European exhibitors More than 2700 VPF screens deployed to date in Europe A company listed on NYSE Euronext compartment C since May 2013 11.6 M€ raised 21.9% floating capital Isin code: FR0011471291, mnemonic code: MAGIS (1) Estimate by the company, Spain on the basis of signed VPF screens only. +53% Evolution of consolidated revenue +50% Evolution of current operational result in M€, audited figures

5 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 Our ambition 5 To become n°1 in Europe in digital services and technologies for the cinema industry

6 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 Our strategy 6 Extending geographical coverage in Europe Pursuing screen migration Opening new sites Acquiring specialized players Enhancing the offer of new products and services Producers and distributor: development of new services Exhibitors: extension of the digital services on offer Preparing the first cycle of equipment renewal A potential market estimated at between 3 500 and 5 000 digital installations to be renewed per year in Europe (1), with the first renewals expected in 2015 (1) Estimate by the company, on the basis of 36.000 screens in Europe, to be renewed every 7 years on average Important progress achieved since the IPO

7 7 Activity: an increase of 9% as at September 30, 2013 Financial results: a 27% improvement in the current result before taxes as at June 30, 2013 Important progress in strategy implementation since the IPO Strengthening of positions internationally Creation of a JV with SmartJog/TDF YMAGIS, the specialist in digital technologies for the cinema industry

8 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 +9% Evolution of revenue 9 months consolidated in M€ Analysis of activity as at September 30 8 Share of consolidated revenue as at September 30, 2013, per geographical area Non-audited figures

9 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 9 Evolution of consolidated revenue in France in M€ +10% Evolution of consolidated revenue at international level in M€ Analysis of activity as at September 30 +7% Non-audited figures

10 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 10 Analysis of consolidated revenue at international level (in M€) +35% -46% +96% Share of consolidated revenue as at September, 2013, per geographical area Analysis of activity as at September 30 Non-audited figures

11 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 11 Analysis of consolidated revenue of Services segment (in M€) +27% -41% +40% Evolution of consolidated revenue per segment (in M€) +29% -17% 09/30/201209/30/2013 Analysis of activity as at September 30 Non-audited figures

12 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 A growing customer base 12 As at September 30, 2013 : 2 751 signed screens with 180 exhibitors 2 361 screens deployed on behalf of 173 exhibitors Evolution of the number of deployed VPF screens Benelux Spain Germany France i.e. 390 signed screens remaining to be deployed

13 13 Activity: an increase of 9% as at September 30, 2013 Financial results: a 27% improvement in the current result before taxes as at June 30, 2013 Important progress in strategy implementation since the IPO Strengthening of positions internationally Creation of a JV with SmartJog/TDF YMAGIS, the specialist in digital technologies for the cinema industry

14 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 Preamble / reminder: the VPF model (Virtual Print Fee) 1/2 14 Financing model initiated in the United States and adapted to Europe, facilitating the digital conversion of theaters Principle: the management of a fee on the contents ●Financial contribution paid by the distributor to cover a part of the investment ●For every new content shown, payment of a “VPF” by the distributor to Ymagis ●These VPF cover between 75% and 85% of the equipment’s cost ●More than 1 000 movie releases every year in Europe (1)  significance of the flows generated (1) Source : European Audiovisual Observatory Cost of a 35mm copy delivered to the exhibitor 35 mm movieDigital movie savings Cost of a digital copy delivered to the exhibitor Contribution to financing ("VPF") from year 1 to year 10 Cost of a digital copy delivered to the exhibitor savings starting from year 10 The payment of VPF extends over 7 to 10 years

15 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 15 The Third-Party Investors model: YMAGIS finances the digital equipment, mainly through leasing YMAGIS makes lease payments to the financial institutions in order to reimburse the leasing The exhibitor pays Ymagis a contribution towards financing the equipment A breakdown based on 2 methods Preamble / reminder: the VPF model (Virtual Print Fee) 2/2 IFRS accounting standards Restatement of the leases: In the Income Statement, as financial expenses for the portion relating to financial charges In the Balance Sheet, as debt reduction for the portion representing the asset Posted in the assets of the Balance Sheet and depreciation of the financed equipment over 8 years Accounting of the exhibitor’s contribution in the revenue Restatement of the leases: In the Income Statement, as financial expenses for the portion relating to financial charges In the Balance Sheet, as debt reduction for the portion representing the asset Posted in the assets of the Balance Sheet and depreciation of the financed equipment over 8 years Accounting of the exhibitor’s contribution in the revenue Accounting of the contribution in external charges The Third-Party Collector model: The exhibitor finances its equipment itself The exhibitor invoices YMAGIS for a contribution

16 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 Consolidated summarized Statement of Income 16 Revenue20.017.7+13.0% Operating current income2.92.7+5.3% Operating income2.92.7+5.3% Financial result(1.2)(1.4)-14.5% Current income before taxes1.61.3+27.4% Taxes on income(0.7)(0.5)+26.9% Net income (2) 1.00.8+27.3% IFRS, M€, as at 06/30 (1) 2012 Variation (%) 2013 (1)The statements on June 30, 2012& 2013 underwent a limited review by auditors (2)Restated for the element attributable to minority shareholders, the Group’s net income amounts to 955K€ versus 883K€ in first half-year 2012 (+8,1%)

17 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 Analysis of expenses structure 17 Revenue20.017.7+13.0% Cost of goods and services(2.5)(3.7)-32.5% In % of revenue12.5%20.9% Salaries & benefits(3.4)(2.4)+41.0% In % of revenue17.0%13.6% External charges(7.4)(5.4)+38.0% In % of revenue37.1%30.4% Depreciation and provisions(3.8)(3.3)+12.5% In % of revenue18.8%18.9% Operating current income2.92.7+5.3% 2012 Variation (%) 2013 IFRS, M€, as at 06/30 (1) (1)The statements on June 30, 2012& 2013 underwent a limited review by auditors

18 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 Summarized Balance sheet 18 ASSETS Tangible assets41.641.7 Deferred tax assets1.31.2 Other non-current assets1.61.3 Current assets including cash 35.6 11.4 25.4 5.2 TOTAL ASSETS80.169.7 LIABILITIES Shareholder’s equity19.37.9 Financial debts (non-current part)32.232.4 Other non-current liabilities2.01.9 Financial debts (current part)10.111.3 Other current assets16.516.2 TOTAL LIABILITIES80.169.7 IFRS, M€ 06/30/2013 (1) 12/31/2012 (1) (1)The accounts underwent a limited review by auditors on June 30 and certification on December 31

19 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 Analysis of Group’s consolidated indebtedness 19 Cash11,45,2 TOTAL CASH11,45,2 Borrowing from credit institutions3,21,9 Interest on convertible debenture loan-2,3 Other financial debts1,8 Factoring of receivables3,22,5 TOTAL DEBT EXCLUDING LEASE8,28,6 Third-Party Investors – financing lease contracts 34,135,1 TOTAL GROSS INDEBTEDNESS 42,343,7 NET INDEBTEDNESS 30,938,5 in M€ 06/30/2013 (1) 12/31/2012 (1) (1)The accounts underwent a limited review by auditors on June 30 and certification on December 31

20 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 Cash flow Statement 20 Cash flow 7.56.0 Negative working capital change (3.0)(1.3) Cash flow from operations 3.93.7 Cash flow from investing activities (2) (2.2)(2.1) Cash flow from financing (2) 4.6(2.0) Net cash flows 6.3(0.3) Cash at the end of the period 11.43.0 (1)The statements on June 30 underwent a limited review by auditors (2)Excluding investments financed by financial lease contracts IFRS, M€ 06/30/2013 (1) 06/30/2012 (1)

21 21 Activity: an increase of 9% as at September 30, 2013 Financial results: a 27% improvement in the current result before taxes as at June 30, 2013 Important progress in strategy implementation since the IPO Strengthening of positions internationally Creation of a JV with SmartJog/TDF YMAGIS, the specialist in digital technologies for the cinema industry

22 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 Strengthening of positions internationally 22 Spain July 2013: opening of the laboratory in Barcelona July 2013: 39 additional screens contracted with Balaña network in Spain September 2013: contract in Spain for 28 screens with Artesiete and 93 screens with Unión Cine Ciudad Germany April 2013: opening of the sales office in Düsseldorf On September 30, 2013: signature of 34 new agreements with independent distributors October 2013: opening of the laboratory in Berlin

23 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 23 SMARTJOG’s presentation Business line of TDF specialized in satellite and ADSL delivery of cinema and commercial contents to cinema theaters Servers and receiving antennae deployed in 9 countries: France, Spain, Portugal, Germany, Austria, Switzerland, Benelux Network of 1 600 theaters representing 6 000 connected screens In 2012 delivery of 26 000 movie copies and 140 000 trailer and commercial copies in Europe Rental of two transponders with a total capacity of 140 Mb/s to Intelsat, the leading satellite services supplier in the world Original software solution, brought to the JV Creation of a joint venture with SMARTJOG

24 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 24 Satellite coverage making high-scale European deployment possible Creation of a joint venture with SMARTJOG

25 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 25 Activities brought by YMAGIS and SMARTJOG > > Birth of the first European player in integrated logistics of digital contents for the cinema industry DCP transport by satellite and terrestrial line Software solution allowing the management of cinema file transfers On-line archiving platform Other advanced information tools DCP duplication and transport on physical devices Ymaginet: private network of dematerialized transmission to 450 cinema theaters Ymaship: integrated logistics solution for cinema DCP storage and archiving Creation of a joint venture with SMARTJOG

26 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 26 for the DISTRIBUTOR ●A fully integrated service regardless of the delivery model ●Delivery of movies across Europe for the EXHIBITOR ●Limitation or suppression of logistics / handling of hard disks ●Reduction of costs related to physical devices ●Continuation of cabin automation ●Wider access to the contents for YMAGIS ●A vector of business acceleration ●A business point of entry to sell additional services ●Ultimately, a decrease in delivery costs An offer to answer the sector’s needs Creation of a joint venture with SMARTJOG

27 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 27 SATELLITE ●Allows the management of copies’ “circulation” thanks to pre-loading ●Premium to the widest network ●Allows coverage of a wide area to distribute pan-European movies (studios) ●Option valid for “large” national releases by local distributors A unique offer in Europe, making it possible to optimize technical means ● Economic vector for limited releases ● Makes it possible to offer an immediate solution in countries not well-equipped with satellite / ADSL receivers ● Ensures the movie release on every site, even in case of receiver breakdown PHYSICAL DEVICES WIRE LINKS ● Ensures the distribution of limited releases ● The “dropped packets” of a satellite diffusion may go through ADSL or fiber ● Answers an emerging demand for content download on demand by theaters YMAGIS, the only European player capable of offering an integrated solution Creation of a joint venture with SMARTJOG

28 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 28 - Number of connected sites Geographical coverage + + - Europe, 1 800 4 countries, 700 Europe, 1 000 France, 600 France, 0ADSL/Fiber project UK, 250 Scandinavia, 600 Creation of a joint venture with SMARTJOG Competitive environment No known project Netherlands, 100 28

29 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 29 Q4 2013 / early 2014 : Effective capital contribution on 11/30/2013 Start of the new entity, Smartjog Ymagis Logistics Implementation of a unified business policy Evolution of the business model for terminal availability Implementation of the necessary financing for the business extension Continuation of the deployment of receiver terminals 2014 : Negotiation of local or pan-European agreements with distributors Acceleration of the deployment in France and in the rest of Europe The roadmap Creation of a joint venture with SMARTJOG

30 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 Creation of a joint venture with SMARTJOG 30 11/30/2013: EGM of SmartJog-Ymagis Logistics (SYL) validating the contributions of SMARTJOG and YMAGIS Pro-forma 2013 SYL income of around 7 M€ increasing by 14% vs 2012 Accounting integration from December 1 st, 2013 in the YMAGIS accounts A team of 25 people, including 12 from YMAGIS, who will operate from YMAGIS offices 1 800 theaters connected in Europe of which 1 600 equipped with a transmission receiver Business deployment has already started, with the first contracts expected early 2014 in Western Europe then Eastern Europe Update early December 2013

31 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 Our priorities 31 Making a success of the business deployment of SYL and of its installed base Deploying the signed contracts in Spain Developing the customer base in Germany in order to strengthen our penetration in this region Widening the technological gap by enriching our innovative software offer Extending our geographical reach to new areas Finding new acquisition opportunities making it possible to extend our offer of products and/or services to distributors and exhibitors

32 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 32 FoundersOTC AMOdyssée VenturePublic Capital distribution Voting rights distribution Share characteristics ISIN code: FR0011471291 Reuters code: MAGIS.PA Bloomberg code: MAGIS:FP Market compartment: NYSE Euronext C Number of shares: 6 495 531 Average number of shares/day: 3 266 over three rolling month on 01/06/2014 Stock price on 01/06/2014: 7.30 € Capitalization on 01/06/2014:47.4 M€ Highest 12 months: 7.60 € (10/18/2013) Lowest 12 months: 6.52 € (09/03/2013) Stock price evolution since the IPO

33 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 Financial communication Agenda 2013/2014 33 February 11, 2014: turnover for 2013 March 25, 2014: results for 2013 May 13, 2014: turnover for 1 st quarter 2014

34 Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014 Website www.ymagis.fr Investors’ contacts: Jean-Marie DURA Managing Director 01 79 97 78 67 investisseurs@ymagis.com ACTIFIN (financial communication) Alexandre COMMEROT 01 56 88 11 11 ymagis@actifin.fr 34


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