1 / 20

IM Internationalmedia AG Press Conference, 18 November 2002

IM Internationalmedia AG Press Conference, 18 November 2002. > Agenda.

holleb
Télécharger la présentation

IM Internationalmedia AG Press Conference, 18 November 2002

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. IM Internationalmedia AG Press Conference, 18 November 2002

  2. > Agenda This presentation is intended as a guidance for the conference call. It focuses on the company’s efforts to adapt its cost structure to the current filmed entertainment’s market conditions. Therefore it omits a detailed description about the company’s history. An initial forecast for 2003 will also be provided. The presentation should only be interpreted with the help of oral comments from the management board. The presentation addresses the following topics: Introducing Comments Future Strategy Business Outlook 2003 • Film slate • Revenues/Costs • Cash Projection • Market Acceptance • Overhead Requisites • Development Costs

  3. Internationalmedia Strategy

  4. > Internationalmedia Strategy IM is in the fortunate position to be able to cut back on film development as it already has several promising projects ready for greenlighting over the next two years Development IM IM will adapt its overhead cost structure as development and distribution face strategic operative changes, e.g. one or several domestic / foreign distribution deals Enhancing market acceptance through one or several domestic / foreign distribution deals Market Acceptance Overhead Demand Supply IM will find a balanced market position

  5. Internationalmedia Strategy Market Acceptance

  6. > Market Acceptance Competitive Advantage: Intermedia differentiates itself through soft money (e.g. tax funds in Germany and Netherlands, Sale-and-Leasebacks and Government Subsidies in multiple foreign jurisdictions) and its foreign sales/servicing and has produced studio level films without the benefit of a studio deal Distribution Company Production Financing Domestic Foreign Foreign Soft Foreign Sales Features Studio Bank Studio Deal Output Money Sales Servicing Deals Intermedia Spyglass New Regency Mandalay Beacon Revolution Competitive Disadvantage: White spots are competitive disadvantages, especially under difficult market conditions, as it is hard to push film projects into the market. A domestic/foreign distribution deals would significantly increase its competitive position in the market Strategic opportunity if closing a distribution deal

  7. > Market Acceptance Internationalmedia will provide its distribution partners with two targeted slates of films Rationale: Films with budgets over 75 million US$ and under 25 million US$ prove to have higher profit potential than films with budgets in between • Event/Tentpole Slate: Intermedia will produce two to four high concept, star driven films annually with budgets greater than 75 million US$ • Genre/Concept Slate: Intermedia will produce or acquire two to four films annually with budgets less than 25 million US$, targeted by genre (Scream) or concept/demographic (American Pie) IM focuses on the profitable low and high budget films

  8. Internationalmedia’s distribution strategy has three primary elements: Domestic: Secure a multi-picture distribution deal for four to five films per year. The balance will be distributed on a case by case basis. Foreign: Negotiate selective distribution deals in two key territories with guaranteed TV revenues Foreign: Continue to pre-sell films in other territories on an individual or small package basis; alternatively, sell all foreign rights to a single studio Other elements include: IEG will produce and distribute one to two films each year Intermedia will be opportunistic in acquiring and distributing third party produced films The distribution group will service 3-5 non-Intermedia films annually > Market Acceptance Distribution strategy secures constant output

  9. Internationalmedia Strategy Development Cost Reduction

  10. > Development Cost Reduction In million US$ 30 Development Projects Development spending can be reduced as a large number (over 50) of projects are already in the pipeline at an advanced stage. 25 20 15 Overhead Deals Overhead producer deals will be reduced significantly. 10 5 2001 2002 2003 2004 2005 Cost cutting results in 17 million US$ in yearly savings

  11. Internationalmedia Strategy Overhead Cost Reduction

  12. > Overhead Cost Reduction Overheads by Quarter 12.000 10.000 Q4 Q1 8.000 Q2 ´000 US$ 6.000 Q3 Q4 Q1 Q2 4.000 Q3 Q4 2.000 0 2001 2002 2003 Overhead will decrease significantly

  13. Internationalmedia Outlook 2003

  14. > Film Outlook 2003 Financial Planning 2003 Revenue and Assumptions US Releases 2003 Quarter 1National Security(Martin Lawrence, Steve Zahn) 01/17/2003 Life of David Gale (Kevin Spacey, Kate Winslet) 02/21/2003 Dark Blue (Kurt Russell, Ving Rhames) 02/21/2003 Quarter 2 Basic (John Travolta) 04/18/2003 Quarter 3 Terminator 3 (Arnold Schwarzenegger) 07/02/2003 Mindhunters (Val Kilmer, Christian Slater) Summer 2003 Quarter 4 Suspect Zero (Ben Kingsley) Fall 2003 Major US-releases in each of the four quarters

  15. > Film Outlook 2003 Terminator 2 snap shot • 205 m $ US B.O. + 312 m $ B.O. rev. = 517 m $ tot. B.O. *) • #1 film in 1991 US Box office • Film release date: 4 July 1991 Current market characteristics • Sequels are latest winners in US Box office • No sales fading at sequels with • special effects • strong marketing campaign • Old 2/3 rule of thumb not valid anymore • Rush Hour II (+21%) • Mission Impossible II (+46%) Terminator 3 potential • Terminator still one of the top franchise names • Ancillary rights such as video games through Infogrames, theme parks, etc. • IM participates 50% in worldwide theatrical and video gross revenues *) in 1991-dollar-value Terminator 3 with outstanding potential

  16. > Revenue Outlook 2003 Financial Planning 2003 Revenue and Assumptions Production Volume Overages and Library • Production Start for 5 – 7 films • Total Production Volume of approx. US$ 400m – 450m • Traffic • Iris • The Wedding Planner • Sliding Doors • Largo and MEI library (T3 overages expected but not included) IM continues to drive up revenues in 2003

  17. > Revenue Outlook 2003 Revenue Outlook 2003 Terminator 3 Potential International B.O. Box Office in million € Revenues In million € Domestic B.O. 700 400 375 600 350 300 500 300 250 400 225 200 300 250 150 200 200 150 100 100 50 0 0 1997 1998 1999 2000 2001 2002e 2003e Low Medium High Source: IM Internationalmedia AG Revenue CAGR bigger than 35%

  18. > Cash Outlook 2003 UPSIDE: Financing Fees Cash position controlled in 2003 Cash January 1, 2003 Library, Servicing Fees Overages, Ancillary Rights 55.4 55.4 18.1 46.0 3.5 14.0 12.8 Overhead 4.0 Development Spent Development Recoupment Source: IM Internationalmedia AG Cash position stabilizes due to cost cutting efforts

  19. > Summary Outlook 2003 Profit and Loss Outlook 2003 Revenues 330.0 – 350.0 million US$ Company Overhead 18.1 million US$ Development Costs 11.0 – 13.0 million US$ Internationalmedia will return to profitability in 2003

More Related