Introduction to Entertainment One. Investor overview

Transcription

1 Introduction to Entertainment One Investor overview

2 eone is a leading global entertainment company Group overview Entertainment One Ltd. is listed in London, a constituent of the FTSE 250 Index capitalised at around 850m Produces and acquires entertainment content rights for exploitation across all consumer media globally Owns a substantial content library: 35,000+ film and TV titles, 2,800+ hours of TV programming and 45,000+ music tracks, valued at $650m+ Film Acquire TV 20% Film 80% TV 25% Film 75% Television Produce Produce Acquire Market Distribute Distribute FY2014 pro forma revenue FY2014 pro forma underlying EBITDA License Underlying EBITDA is profit before tax, before one-off items, share-based payment charges, net finance charges, depreciation and amortisation of acquired intangible assets For the purposes of this analysis, pro forma includes the results of Alliance, which was acquired on 8 January 2013, as if this business had been acquired on 1 April

3 Our strategy Grow content portfolio Extend global content reach Enhance investment returns Create future value by growing a diversified film and TV rights portfolio Expand reach of content by both geography and content platform Use size and scale to drive improved financial returns Long-term financial goals EPS growth Return on capital employed Cash conversion 2

4 Substantial content library, low-risk portfolio approach Investment in content portfolio mitigates individual title risk FILM 270+ theatrical releases per year FILM 35,000+ film and TV titles TELEVISION 300+ half-hours of production per year TELEVISION 2,800+ hours of TV programming Portfolio approach Not reliant on hits Large proportion of revenues derived from prior year investments (i.e. library titles) Delivering consistent portfolio return on investment 3

5 Financial snapshot Revenue 1 m Investment in content and productions m R 2010R 2011R 2012R 2013R 2013P 2014R 2009R 2010R 2011R 2012R 2013R 2013P 2014R Underlying EBITDA 2 m 92.3 Library value 3 $USm R 2010R 2011R 2012R 2013R 2013P 2014R Pro forma/constant currency financials adjusted for the results of Alliance Films Holdings Inc. ( Alliance ), which was acquired on 8 January 2013, as if that business had been acquired on the first day of the comparative period. Constant currencies have been calculated by retranslating the comparative figures using monthly average exchange rates for the year to 31 March Underlying EBITDA is profit before tax, before operating one-off items, share-based payment charges, net finance charges, depreciation and amortisation of acquired intangible assets independent library valuation is currently being finalised. 4

6 Film 5

7 Independents US Majors eone s is the world s largest indie movie distributor Film production Film distribution 6

8 Key Film industry trends Key trend Opportunity for eone Indie content in demand Hollywood major studios focusing more on blockbusters, avoiding smaller releases Indie producers stepping into the gap, with eone distributing high quality titles for them International markets Indie producers are seeking overseas markets for growth, but lack distribution infrastructure eone provides the route into international markets for indie producers Size and scale Scale drives improved content purchasing power and incremental margin eone s EBITDA margins will continue to expand as economies of scale achieved 7

9 eone Film outlook and growth opportunities Grow content portfolio Investment in Film content set to grow to over 200m in FY2015 Over 275 movies planned for release during FY2015 Continued expansion of movies from eone Film Production Extend global content reach Grow presence in digital markets Expand geographic activities through growth in International Film and Film Production activities Enhance investment returns eone s leading position in its core markets underpins scale Drive economies of scale and increase EBITDA margins further 8

10 Television 9

11 Key Television industry trends Key trend Opportunity for eone Changing viewing habits More content, consumed by more viewers on more platforms than ever before Strong demand for content to satisfy this consumption Digital explosion Growth in digital content being powered by online content platforms As these platforms expand globally, eone is well-placed to provide the content for their services Cord cutting Incumbent pay-tv networks fearful of cord cutting subscribers migrating to digital eone can develop high quality content for these platforms too 10

12 eone s TV model: driving return on investment Production and acquisition Distribution Investment return Develop and produce content Original development Co-production Co-development First-look Beneficial funding Ultimate revenues Primary broadcast licence International TV sales Content access Content monetisation globally Global ancillary revenues DVD/VOD Pay-TV/SVOD Free to air TV Library deals Output deals with cable networks Syndication 11

13 eone Television outlook and growth opportunities Grow content portfolio Increase investment in content Current year re-commissions underpin revenues New eone Family programming in production Extend global content reach New output, co-production and co-development deals Peppa Pig launching into new markets Syndication opportunities Enhance investment returns Drive operational efficiencies Higher margin L&M activities continue to build Syndication deals improve margins further 12

14 Summary

15 Investment summary Huge global demand for content from existing and new platforms eone is at the centre of multiple, long-term growth trends driven by digital Compelling, low risk growth strategy Significant scale advantage, few competitive peers Confident trading outlook, progressive dividend declared 14

16 Important Information This confidential presentation (including any accompanying oral presentation, question and answer session and any other document or materials distributed at or in connection with this presentation) (the Presentation ) has been prepared by Entertainment One Ltd. (the "Company"), and contains confidential information regarding the Company. It is provided for the exclusive use of the persons attending the Presentation. This Presentation does not contain or constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire or dispose of any securities in the Company or otherwise and should not be relied upon for such purposes. The distribution of the Presentation in certain jurisdictions may be restricted by law and therefore persons into whose possession this document comes should inform themselves about and observe such restrictions. Any person who receives this Presentation in violation of such restrictions should not act upon it and should return it to the Company immediately. The Presentation is not directed to, or intended for distribution or use by any persons or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. In particular, this Presentation (and the information contained in it) is not for release, publication or distribution, directly or indirectly, in the United States (or for the account of any "U.S. Person" as defined in Regulation S under the US Securities Act 1933), Australia, New Zealand, Canada, Japan or South Africa. No representation, warranty or undertaking, express or implied, or liability or duty of care is or will be given by the Company or its representatives as to the fairness, reliability, omission of, or reasonableness, accuracy or completeness of the information or opinions in the Presentation or any other written or oral information made available to any interested party or its advisers, without prejudice to any liability for, or remedy in respect of, fraudulent misrepresentation. In particular, but without prejudice to the generality of the foregoing, no representation or warranty is given as to the achievement or reasonableness of any future projections, management estimates, prospects or returns contained in the Presentation or in such other written or oral information. To the fullest extent possible, by attending this Presentation each Recipient releases the Company and each of its representatives in all circumstances (other than fraud) from any liability. Accordingly, the Company or its representatives shall not be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any statement in or omission from this Presentation or in any other information or communications in connection with the Presentation. This Presentation includes forward-looking statements. All statements other than statements of historical facts in this Presentation, including, without limitation, those regarding the future financial position, objectives, development and strategies of management for future operations of the Company are forward-looking statements. The Company uses the words anticipates, estimates, expects, believes, intends, plans, may, will, should and any similar expressions to identify forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the Company's control, which may cause the Company's actual results, performances or achievements of its results, or industry results, to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. The information contained in this Presentation speak only as at the date of this Presentation. The Company is not obliged, and does not intend, to update or correct any inaccuracies in this Presentation or realise any forward-looking statements, whether as a result of new information, future events or otherwise except to the extent required by any applicable law or regulation. 15