cinegv presentation sept 24092014 english.pdf
TRANSCRIPT
Le cinéma à emporter
24/09/2014 Confidential- CineGV property 1
September 2014
Montparnasse
24/09/2014 Confidential- CineGV property 2
A UNIQUE SERVICE IN EUROPE
A CLEAR AND INNOVATIVE OFFER
Download a film or a TV serie in 30 to 90 seconds
� from a kiosk located in a train station, an airport or a shopping center
� on a USB/micro USB flash drive supplied by the customer or the kiosk.
� among hundreds of films and episodes of TV series, for rent for 30 days (48 hours
once started) at VOD price: € 3.99 to € 4.99 for a film.
24/09/2014 Confidential- CineGV property 3
SECURED STRATEGIC LOCATIONS FROM PRESTIGIOUS
BUSINESS PARTNERS
Centre commercial Créteil Soleil
Gare de MarseilleLyon Gare de la
Part Dieu
Aéroport de
MarignaneAéroport de Toulouse
Paris -Gare de
LyonGare de Lille
� 11 kiosks deployed in 7 major train stations (Paris (2), Marseille, Lyon,
Lille, Montpellier, Rennes) with SNCF and Relay stores, two airports
(Toulouse and Marseille) and 2 malls
� Active support of the SNCF, Relay, Klépierre, Immochan ... and ongoing
negotiations for a sustained deployment in other Cat A locations (more
than 50 planned for the short term)
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A CATALOGUE OF ATTRACTIVE CONTENT (FILMS, SERIES,
ENTERTAINMENT) WITH RAPID DEVELOPMENT
� Contracts signed with Gaumont, Pathé, TF1, France Television,
Wildside and Mediatoon and agreements finalized (subject to
funding) with Warner, Paramount and Universal.
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TECHNICAL INFRASTRUCTURE THAT IS UNIQUE IN EUROPE AND SIZED
FOR A SIGNIFICANT RAMP-UP
� Download of a protected content on a USB stick without the need for a PC or a tablet
on line. This is a world first for Android devices.
� Entirely remotely managed kiosks: films, customer interface, statistics, alarms.
� Innovative carrousel for USB stick distribution.
� An exclusive USB stick with micro USB adapter that download a film in 30 seconds.
AN EXPERIENCED AND HIGH QUALITY TEAM, RECOGNIZED FOR HIS
TEHNICAL AND MARKETING SKILLS, AND ITS EXPERTISE IN TRADE
NEGOTIATIONS WITH STUDIOS AND LEASERS
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� Associated founders: Rémy Jacquelin: Ex Content Acquisition Director for Groupe TF1 and
Christophe Chéreau: Group manager, consumer electronics HTM group (Boulanger) bring many
key contacts.
� A strategic committee with representatives of two BA networks: Investessor and BADGE
Founder, CEO and controlling shareholder : Benoît Chéreau
� Polytechnique, MBA Harvard
� Initiator and ex Deputy CEO of Bouygues Telecom ; ex Deputy CEO of Groupe Canal+
� Content Manager: 3 years experience in content
acquisition (Tribeka ltd)
� Technical Manager: 15 years of experience in Internet
and VOD projects (Glowria, Allo Cine)
� Expansion Manager: 15 years experience in commercial
real estate (MMA, Carrefour, Grosvenor)
� Marketing and customer support: young graduate with
experience in digital marketing
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A SUCCESSFUL LAUNCH (august /september2014) SUPPORTED
BY A MarCom / MULTIMEDIA EFFECTIVE STRATEGY
� A recognized consumer communication agency : Aston Wood.
� Press release from SNCF, with many web, print and radio
repeat: le Parisien, la Provence, le Point.fr, Ouest France.fr,
Télé matin, FR3 régional Toulouse et Rennes, RTL, Fun radio
Toulouse , Direct matin Montpellier, 20 minutes Rennes as well
as many websites.
� Promotion in progress: 78 days hostess and distribution of
flyers (70,000). 160,000 geo located banners on smartphones.
Build up of a community on social networks: Facebook, Twitter
Two partnerships with tablet manufacturers for Q4: Takara to
integrate the CinéGV application and a free movie in 15,000
tablets; Polaroid to integrate the CinéGV app into 20,000 3G
tablets.
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PROMISING PROSPECTS WITH NO DIRECT COMPETITION
� CineGV market studies: 2,300 adults on internet plus 300
interviews in train stations: 64 % interested, 14% very interested
By extrapolation(43 million adults in France): 27 million interested.
6 million very interested
� Declared use: train (61% of interested), plane (49%), at home
(72%).
Intends 10 rents and 3 purchases per year.
� Benchmark Digiboo in USA since 2012: 115 kiosks in 2 years.
� Indirect competition via public networks (at home the day before, 4G, public Wi-
Fi): unreachable while travelling, too slow and unpredictable in train stations &
airports.
� Barriers to entry: - Preemption of locations in train stations and airports
- 3 years exclusivity agreement with the two key suppliers.
VISION
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Physical proximity downloading ( USB or dedicated Wi Fi ) will remain 5-10 times faster than
public networks:
� USB: today € 10 = 180 Mb / s; € 100 = 1200 Mb / sec --- much lower cost tomorrow
� WiFi : up to 50 Mb / sec today; ---- devices will improve towards standard at 1300 Mb / s
� ADSL: 2 to 15 Mb/sec
� Fibre : 30 to 100 Mb/s in practice in very large cities only
� 4G : 10 to 20 Mb/s in practice
The demand for quality and thus file size will continue to grow:
HD: twice 4k : 8 times 8k (natural 3D) : 32 times
CineGV will give priority to the speed of choice in an attractive catalog
To be the reference brand for VOD on the move
in France and in Europe
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PROSPECTS FOR A RAPID AND PROFITABLE DEVELOPMENT : positive
KPIs, break even in 2016 and Turnover in 3 years estimated at € 18 M
� The business model is distinguished by a structurally negative working capital. Recurring fixed costs are low.
Key Figures
(€ ooo or units) 2013-2014 2015 2016 2017 2018
Nber of customers end of year (k) 13 137 220 360 602
Number of rents (k) 18 554 1 328 2 246 3 824
Number of sales (k) 75 401 741 1 232
Number of keys sold (k) 5 67 66 84 101
Nber of kiosks end of year 12 55 127 186 288
TURNOVER 114 3 503 10 400 18 056 29 907
GROSS MARGIN 46 834 2 445 4 251 7 005
(%) CA 24% 24% 24% 23%
Number of employees 5 8 13 15 18
EBITDA (773) (375) 557 1 562 3 251
Capex 825 1 083 1 142 1 244 1 987
Change in working capital 84 697 836 901 1 258
Free cash flow (1 517) (785) 221 1 194 1 929
-
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
estimated
cumulative
visitors on
kiosk(page/5)
Cumulative
unique
visitors
cinegv.com
Pregistered &
registered
accounts
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€ 1,137 K raised since April 2013:
� € 248 k - 3 Founders: 195 k€ at creation in April 2013 plus 53 k€ in 2014
� € 481 k - Love Money in May 2013, March & June 2014
� € 240 k - BPI Innovation financing (9/2013) & priming loan (6/2014)
� € 175 k - Two Business Angel networks (Investessor & BADGE) in June 2014
Search for € 400,000 financing in october/november 2014 to finance operations.
� Marketing and operating costs: 160 000 € (40 à 50 k€ par mois)
� Developpment of sale functionality : 40,000 €
� Guaranteed minimum for content from american majors: 60,000 €
� Technical supplier credit: 140 000 €
In 2015 , financing search for growth (1 M€ +) :
� 45 additionnal kiosks, WiFi downloading and iOS functionality
CinéGV is controlled at 54% par Benoît Chéreau.
A complete shareholder agreement has been signed with the BA networks in June 2014.
FINANCING STEPS
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Thank you!
Contact: [email protected]
Mobile: (33) 6 24 51 92 02