Commerzbank Media Forum London, 31 May 2006

Transcription

1 Commerzbank Media Forum London, 31 May

2 This presentation may contain forward-looking statements with respect to MME MOVIEMENT AG s financial condition, results of operations, business, strategy and plans. In particular, statements using the words expects, anticipates, and similar expressions, and statements with regard to management goals and objectives, expected or targeted revenue and expense data, or trends in results of operations or margins are forward-looking in nature. Such statements are based on a number of assumptions that could ultimately prove inaccurate, and are subject to a number of risk factors, including changes in our customers' industries, slower growth in significant markets, changes in our relationships with our principal shareholders, the ability to realize cost reductions and operating efficiencies without unduly disrupting business operations, currency fluctuations, unforeseen environmental obligations, and general economic and business conditions. MME MOVIEMENT AG does not assume any obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise. Further information on factors which could affect the Company's financial results is provided in documents filed with the Bundesamt für Finanzdienstleistungsaufsicht. 2

3 Content Page 1. MME MOVIEMENT at a glance Strategy Financial year Outlook Appendix 30 3

4 1.MME MOVIEMENT at a glance 4

5 Germany s specialist for entertainment MME MOVIEMENT... is the largest TV-production company unaffiliated with a broadcaster or media group in Germany focusses on the programming section entertainment supplies all major TV-channels in Germany focusses on serial formats strengthens its market appearance with multi label strategy: AllMedia, filmpool, Lunet, MME Entertainment and white balance achieves approx. 88 million Euro in revenues and sustainable profits 5

6 Significant increase of revenues and earnings in Comparison 2005/2004 (pro forma) Revenues [million euros] EBITDA [million euros] % % 8.8 EBIT [million euros] Earnings per share [euros] % %

7 despite nearly stagnating broadcasters net income from advertising +9.1 Year on year change in net advertising spendings in per cent Source: ZAW

8 MME MOVIEMENT - largest independent TV production company in Germany Ufa-Gruppe, Potsdam 1) Studio Hamburg, Hamburg Bavaria Film, Munich 1) MME MOVIEMENT, Berlin 1) Endemol Holding, Cologne Constantin Entertainment, Munich 1) ndf, Munich 1) Brainpool, Cologne 1) Odeon Film, Munich 1) Revenues 2005 [million euros] Subsidaries: Subsidaries: Ufa-Gruppe Ufa-Gruppe Bertelsmann Bertelsmann Endemol Endemol Telefonica Telefonica Brainpool Brainpool Viacom Viacom 1) Estimate MME MOVIEMENT Puplic Pupliclaw: law: Studio Studio Hamburg Hamburg ARD ARD Bavaria Bavaria Film Film ARD ARD 8

9 Longstanding experience in TV production Me, Myself & Eye GmbH founded IPO MME AG AG moviement GmbH acquired white balance GmbH acquired filmpool founded moviement GmbH founded AllMedia Pictures GmbH acquired Martin Hoffmann new CEO Lunet GmbH acquired (51%) 9

10 Five producer brands will an overall annual production volume of more than 1,000 hours 100% 100% 100% 100% 51% 51% 100% 100% 100% 100% Polizeiruf Polizeiruf (aus (aus Schwerin) Schwerin) Typisch Typisch Sophie Sophie Der Der Zweite Zweite Blick Blick Der Der Liebeswunsch Liebeswunsch Richterin Richterin Barbara Barbara Salesch Salesch Zwei Zwei bei bei Kallwass Kallwass Niedrig Niedrig & Kuhnt Kuhnt Das Das Familiengericht Familiengericht Das Das Jugendgericht Jugendgericht Die Die Sitte Sitte Alles Alles ausser aussersex Sex Schmeckt Schmeckt nicht, nicht, gibt s gibt s nicht nicht Einsatz Einsatz in in 4 Wänden Wänden Einsatz Einsatz in in 4 Wänden Wänden --Spezial Spezial Sarah Sarah & Marc Marc in in Love Love Bauer Bauer sucht sucht Frau Frau BRAVO BRAVO TV TV Das Das Quiz Quiz mit mit Jörg Jörg Pilawa Pilawa Star-Quiz Star-Quiz Der Der große große Erziehungstest Erziehungstest Der Der große große Partnerschaftstesschaftstest Partner hours hours per per annum annum hours hours per per annum annum hours hours per per annum annum hours hours per per annum annum hours hours per per annum annum 10

11 2. Strategy 11

12 Market consolidation and digitalisation of media will drive core business Consolidation Limited market growth Balance of of powers: Alignment of of supplier and purchaser structure Price- /Performance ratio becomes more and more important Industrial production of moving image content Digitalisation New products New distribution channels New suppliers New customer behaviour New business models 12

13 Success in core business is based on clear competencies Sense for trends: MME MOVIEMENT is closely monitoring programming trends in Germany and all major international TV markets, MME MOVIEMENT is constantly in touch with international licensing partners Programme maintenance: MME MOVIEMENT is constantly adapting its formats to the audience s taste Clear label profiles: Each producer label of MME MOVIEMENT stands for well defined content compentencies Production know how: MME MOVIEMENT is able to reliably manage large and long running productions. MME MOVIEMENT delivers high quality at attractive price levels. 13

14 MME MOVIEMENT is well set for growth Independence: MME MOVIEMENT is not affiliated with any media group or broadcaster-hence high level of flexibility and highly attractive for creative talent Track Record: Since 1999 one new daily format on air per annum Multi award-winning programmes with strong viewer ratings Deal compentencies demonstrated by acquisition and integration of filmpool and AllMedia (throught moviement) and moviement trough MME as well as white balance and Lunet through MME MOVIEMENT Management: Both supervisory board and management board stand for media, finance and transaction know how Access to capital: Stock market quote allows access to equity, free cashflow and solid balance sheet allow acces to debt 14

15 MME MOVIEMENT s strategy: focus on the core business, observation of new markets Growth in core business: Keeping current programme slots by maintenance of formats Introduction of innovative formats in new programme slots and with new clients Securing ancillary rights or back end participations from new formats Enlargement of programme and client portfolio through strategic acquisitions: faces, formats, companies Careful usage of opportunities in new markets: Increasing international business from licensing in and out of format right Production of content for digital distribution channels (TV, mobile, internet) and cooperation with partners 15

16 3. Financial year

17 Objectives for 2005 completely fulfilled 1 Growth through acquisition of white balance GmbH 2 Client and product portfolio enlarged with inhouse developments 3 Maintenance of existing programmes 4 Internationalisation and digitalisation progressed 17

18 Revenues 87.7 million euros; EBITDA margin 10% Consolidated income statement Significant items [Mio. Euro] Revenues % % Cost of material % % Personnel expenses % % Other operating expenses % % EBITDA % % Depriciation % % EBIT % 5.1 6% Net earnings 4.1 5% 3.2 4% Earnings per share 2 [euros] Shares outstanding 2 [million] ) pro forma 2) basic 18

19 Growth of revenues and earnings largely organically Revenues [million euros] EBT [million euros] % 1.0 white balance +18.7% 0.3 white balance +7.3% +13.2% 86.7 MME MOVIEMENT 5.8 MME MOVIEMENT 2004 (pro forma) (pro forma) 19

20 Equity ratio increased to 46 percent; total assets increased by 12 percent - Significant items of the consolideted balance sheet (IFRS) - Assets Liabilities [million euros] [million euros] Non-current assets Equity thereof goodwill Long-term liabilities Current assets thereof liabilities to banks thereof cash and cash equivalents Short-term liabilities Balance sheet total thereof liabilities to banks Balance sheet total

21 Cash flow 1 January - 31 December 2005 [million euros] Cash and cash equivalents 1/1/2005 operations investment activities Cash flow from financing activities Cash acquired with white balance Cash and cash equivalents 31/12/

22 The MME MOVIEMENT share Xetra XetraClosing Prices 1/1/ /5/2006 Key Key data dataof of the theshare ISIN: DE % WKN: % 6.50 Symbol: MME 150.0% 6.00 Reuters: MMEG 137.5% 5.50 Bloomberg: MME GY 125.0% 5.00 Sharetype: No-par shares 112.5% % Issued capital: Market capitalisation: 11,180,909 shares approx. 60 million euros MME MOVIEMENT (200 days moving average) Averege XETRAtrading volume: approx shares per day PRIME MEDIA PERFORMANCE INDEX Designated Sponsor: Close Brothers Seydler AG 22

23 Shareholder structure: 57 per cent free float Guehring Automation GmbH 21.19% Linus GmbH 7.36% Free Float 56.92% Frontera GmbH 5.76% C. Post VV GmbH 5.55% S. Eishold VV GmbH 1.06% MME MOVIEMENT AG 0.02% M. Hoffmann 0.45% G. Marx 0.89% J. Pilawa 0.81% 23

24 4. Outlook

25 Increase in broadcasters net income from advertising expected for Year on year change in net advertising spendings in per cent * Source: ZAW. Estinate ProSiebenSat.1 Media AG

26 First prerequisites for achievement of objectives 2006 fulfilled Q1 and Q2 Keeping current programme slots Channel supply for all daily formats fully commissioned for 2006 Introduction of innovative formats Wie Wie alt alt bist bist du du wirklich? The Theultimative test test with withjörg Pilawa Tim s Tim steam Restaurant docu docusoap soapwith withtim Mälzer Unser neues neues Leben Relocation docu docusoap Enlargement of programme portfolio Dieter Wedel and producer Jürgen Kriwitz are producing fictional formats under the umbrella of AllMedia Pictures from 2006 onwards MME MOVIEMENT takes 51 per cent stake in Lunet Entertaiment in April 2005 Seizing opportunities in new markets Pilot of Germany s first mobile whodunnit with Niedrig & Kuhnt Prolongation commissioned 26

27 Guidance 2006: Growth in revenues up to 100 million euros possible Guidance 2005 Growth in revenues up to 100 million euros possible EBIT margin should increase over proportionally since certain depreciations seize to apply Prerequisites for growth in revenues and EBITDA all serial formats (except Top of the Pops) are being continued on a largely unchanged basis in 2006 new formats will be placed with broadcasters expected increase in broadcasters income from net advertising comes into effect 27

28 Financial Calendar March 2006: Annual Report 2005 and guidance May 2006: Annual General Meeeting, Universal Hall, Berlin 28 August 2006: Interim Report

29 5. Appendix 29

30 Group structure 31 December 2005 MME MOVIEMENT AG, Berlin 100% 100% 100% 100% 100% 2% MME Me, Myself & Eye Entertainment GmbH, Berlin filmpool Film- und Fernsehproduktion GmbH, Köln AllMedia Pictures GmbH, München white balance GmbH, Hamburg ShowNet GmbH, Hamburg Star! Entertainment Factory GmbH, Berlin 100% Eye Love You TV-Produktions GmbH, Hamburg 100% DIE ANDERE Filmproduktion GmbH, München 100% AllMedia Kinoproduktion GmbH, München 49% GLE wb GbR*, Hürth 51% Me, Myself & Somebody Else GmbH, Hamburg 60% Park fernsehen GmbH, Köln *) Grundy Light Entertainment GmbH & WB GmbH GbR important operation companies 30

31 Investment Case MME MOVIEMENT Strategic position: MME MOVIEMENT is a leading provider of moving image content in the world s second largest TV market Technological change: Digitalisation is real and drives new distribution channels and business models Deregulation: Independence of MME MOVIEMENT strengthens market position in case of future divestiture of public broadcast structures Management: Experienced team with comprehensive knowledge in the fields of strategy, programming, corporate development and corporate finance Balance sheet: Solid structure with 46% equity ratio and net debt/ebitda < 1.5 (31/12/2005) Earnings: EBITDA margin 9-10%, from 2006 onwards EBIT and profits will be free of extraordinary charges Share: 57% free float, liquid share, high awareness among institutional investors due to coverage by DZ-Bank, Berenberg, M. M. Warburg and First Berlin and active IR 31

32 Your contacts: Martin Hoffmann, CEO Dr. Christian Franckenstein, CFO Dr. Markus Schäfer, COO Gotzkowskystraße straße Berlin Berlin Tel.: Tel.: Fax: Fax: Residenzstraße18 18 straße München Tel.: Tel.: Fax: Fax: Residenzstraße18 18 straße München Tel.: Tel.: Fax: Fax:

33 CVs of board members (1) Martin Hoffmann, CEO Dr. Christian Franckenstein, CFO Born Born Studied law lawat at universities of of Saarbrücken, Lausanne and and Hamburg : research associate with withthe themax- Planck-Institut for forforeign and and international civil civil law law Beginning end end Sat.1, Sat.1, head headof of programming End End end end Sat.1, Sat.1, managing director Published a number of of white whitepapers in in media media law law Since Sinceacquistion of of moviement GmbH GmbH (08/2004) CEO CEO of of MME MME MOVIEMENT AG AG Born Born Studied business administration at at the the European Business School (including PhD) PhD) senior senior manager with withimm Office Office Systems Holding GmbH, Munich Since Since1997 managing director and and co-initiator of of the thenovamedia group group (innovative media media fonds fonds which whichproduce and and finance tv tvmovies and and series) Since Since1999 co-founder and and managing director moviement GmbH GmbH Since Sinceacquistion of of moviement GmbH GmbH (08/2004) CFO CFO of of MME MME MOVIEMENT AG AG 33

34 CVs of board members (2) Gisela Marx Christoph Post Born Born Studied history, philosophy and and romance language and and literature Since Since1967 author, director and and presenter for for radio radioand and TV TV Until Until1999 presentation of of political and and economical formats in in particular with withwdr founder and and managing director filmpool Various awards for forjournalistic achievements, including Wilhelmine Lübke Lübke Preis Preis and and Medal Medalof of Merit Meritof of the thestate stateof of Northrhine-Westfalia deputy chairwoman of of the the German TV TV award awardjury Since Sinceacquistion of of moviement GmbH GmbH (08/2004) member of of the theboard boardof of MME MME MOVIEMENT AG AG Born Born Studied musicology and and journalism at at university of of Münster Freelancer for forvarious music musicmagazines and and newspapers editorial head headof of various music music shows showson on Tele Tele co-founder of of MME, MME, producer of of various music musicshows, music musicevents, quiz quizshows showsand documentaries director of of programming VIVA VIVA Television director of of programming VH-1 VH-1 Germany Member of of the theboard boardsince since11/