Digital technologies for the motion picture industry 2015 FULL YEAR RESULTS

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1 Digital technologies for the motion picture industry 2015 FULL YEAR RESULTS Paris 29/03/2016

2 Presentation of the speakers Jean Mizrahi CEO co-founder Christophe Lacroix VP Content Services co-founder Georges Garic Deputy CEO Pierre Flamant CFO 2

3 Highlights 2015 FY 2015 results analysis Convergence towards Operational Excellence Outlook Stock performance 3

Exhibitor Services : two strategic acquisitions to boost services across Europe Expert in the installation and maintenance of digital cinema equipment in France, Switzerland and Africa Sales 2014 : 2.

4 Exhibitor Services : two strategic acquisitions to boost services across Europe Expert in the installation and maintenance of digital cinema equipment in France, Switzerland and Africa Sales 2014 : 2.4m Acquisition of 90% of R2D1 s share capital after the contribution in kind of some activities from Ymagis Engineering Services The remaining 10% are controlled by Maxime Rigaud, cofounder of R2D1 who is appointed Head of Exhibitor Services for France, Switzerland and French-speaking Africa First achievements are positive and confirm the deal rationale Consolidation starts from July 1 st, 2015 Proyecson is specialized in cinema installation/ maintenance of digital equipment and manufacturing of special products in Spain Sales 2014 : 8.3m Acquisition of 51% stake in Proyecson. The remaining 49% is controlled by Proyecson s Managing Director, Francisco Lafuenta Serra who becomes Country Manager for Exhibitor Services This new partnership offers cinema owners an extended range of services based on the experience of both companies Consolidation starts from Oct 1 st,

Exhibitor Services : new builds and new technology equipment are strong supports to revenues Some key projects delivered in 2015 in our core markets UK 2 new builds Danemark 1 new build with laser

5 Exhibitor Services : new builds and new technology equipment are strong supports to revenues Some key projects delivered in 2015 in our core markets UK 2 new builds Danemark 1 new build with laser projection system and Dolby Atmos systems Russia 1 4K projection system 2 new builds Ireland 1 new build France 2 laser projection systems 5 new builds Spain 2 Dolby Atmos systems Netherlands 1 4K projection system 4 new builds Austria 12 Dolby Atmos systems 1 new build Germany 7 4K projection systems sold 4 new builds Italy 1 new build Greece 3 Dolby Atmos systems Poland 2 new builds Hungaria 1 new build Slovakia 2 new builds Belarus 2 new builds Turkey 2 new builds 2 Dolby Atmos systems New generation equipment (Dolby Atmos, 4K, laser) New builds 5

6 Content Services: full ownership of Smartjog Ymagis Logistics (SYL) Acquisition from Smartjog, a subsidiary of TDF Group, of their shares (40%) in the joint venture This operation will allow YMAGIS to: Integrate similar existing activities in two other Group subsidiaries (dcinex SA and Eclair Media SAS) in a more efficient manner Achieve additional synergies and lead joint business initiatives expected in 2016 with DSAT Cinema ( DSAT ), in which the Group indirectly has a 49.8% stake Benefit fully from the rationalization plan Full consolidation starts from January 1 st,

7 Content Services: acquisition of CINE-LOGISTICS GmbH in Germany CINE-LOGISTICS GmbH is one of Germany s leading distribution services for movie distribution companies and German-speaking cinema exhibitors Sales 2015 : 3.15m (+30% over the prior year) Acquisition of 100% through its wholly-owned subsidiary Ymagis Deutschland GmbH Michael Krauth has been appointed co-ceo of CINE-LOGISTICS and will manage the company alongside Knut Güntzel. Based in Berlin, the company also operates a distribution center near Berlin-Tempelhof airport. 20 full-time employees Full consolidation starts from January 1 st,

8 Content Services : business unit redefinition driven by Eclair Group acquisition 8

9 Highlights 2015 FY 2015 results analysis Convergence towards Operational Excellence Outlook Stock performance 9

Revenue as of December 31 st : +5% thanks to a strong Q4 and external growth Change in consolidated revenue In m Breakdown of consolidated revenue as of December 31 2015, by activity 150,4 +5% 157,7

10 Revenue as of December 31 st : +5% thanks to a strong Q4 and external growth Change in consolidated revenue In m Breakdown of consolidated revenue as of December , by activity 150,4 +5% 157,7 Content Services : 15% (2014 : 8%) VPF : 47% (2014 : 48%) Exhibitor Services : 38% (2014: 44%) 2014 pro forma (1) 2015 (1) 2014 figures are pro-forma, i.e. as if dcinex acquisition was carried out as of January 1,

Revenue as of December 31 st : Content Services boost group sales with Eclair Group takeover 71,5 +3% 73,8 Analysis of consolidated revenue In m -10% 66,3 One off (12,2) 59,4 +93% VPF: +3% growth

11 Revenue as of December 31 st : Content Services boost group sales with Eclair Group takeover 71,5 +3% 73,8 Analysis of consolidated revenue In m -10% 66,3 One off (12,2) 59,4 +93% VPF: +3% growth thanks to VPF last agreements signed late 2014 (Greece, Balkans) and mid 2015 (Turkey) despite 1 st recoupment occurred (Austria screens) ES: +10% excl. one off VPF equipment sales thanks to new builds, investment in new technologies (immersive sound, laser,..) and R2D1 + Proyecson acquisitions 12,6 24,5 CS: sales almost doubled with takeover of Eclair businesses which enrich the group s service offer to content owner/distributor VPF Exhibitor Services Content Services 2014 pro forma (1) 2015 (1) 2014 figures are pro-forma, i.e. as if dcinex acquisition was carried out as of January 1,

12 Income Statement: EBITDA stable with mix of sales change IFRS, in m (1) 31/12/15 31/12/14 Var Revenue % EBITDA % EBITDA margin 33.7% 35.6% Depreciation & amortization % Interest charges, net % Profit before tax (PBT) n/a Income tax % Share in the result of JV s n/a Net income % Net income attributable to non-controlling interest % Net income group share n/a 3.0m net income (group share) excl. goodwill depreciation on dcinex (1) 2014 figures are pro-forma, i.e. as if dcinex acquisition was carried out as of January 1,

13 EBT Bridge: High impact from D&A and financial results In k EBT 2014 EBITDA D&A - VPF D&A - Content Delivery D&A - Goodwill dcinex Financial charges Euro PP interest EBT

14 Results by activity IFRS, in m (1) (2) VPF Content Services Exhibitor Services Revenue EBITDA % % % % % % % EBIT PBT % % % % % % % VPF: Excl. goodwill depreciation ( 3.2m), PBT is 12.4m (+11%) or 17% of sales in line with last year CS: Delay with theatrical content delivery rationalisation limits cost savings impact. Negative contribution from 1 st year new businesses (Eclair: - 0.7m / DCNA: - 0.4m) ES: EBITDA impacted by lower sales (but at lower margin rate). R&D cost expensed for 0.5m. Excl. goodwill depreciation ( 0.4m), EBIT is break-even (1) 2014 figures are pro-forma, i.e. as if dcinex acquisition was carried out as of January 1, 2014 (2) Including indirect and central costs allocated to each business unit 14

15 Balance Sheet: Stable total BS with external growth IFRS, in m (1) 31/12/15 31/12/14 ASSETS Goodwill and intangible assets Tangible assets Deferred tax assets Other non-current assets Current assets TOTAL ASSETS EQUITY & LIABILITIES Shareholder s equity Non-current financial debt Other non-current liabilities Current financial debt Other current liabilities TOTAL LIABILITIES (1) 2014 figures are pro-forma, i.e. as if dcinex acquisition was carried out as of January 1,

16 Cash flow statement: Operating CF of 40m IFRS, in m (1) 31/12/15 31/12/14 Net Cash Flow from Operations Net Cash Flow used in Investment Net Cash Flow used in Financing Cash at the opening of the period Change in Cash Cash at the end of the period (1) 2014 figures are pro-forma, i.e. as if dcinex acquisition was carried out as of January 1,

17 Debt structure: continous deleveraging In m 31/12/ /12/2014 Debt related to VPF business Leases Financial liabilities 23.3 (1) 50.1 Factoring of receivables Total VPF debt Debt related to content services Leases - delivery business Leases - others Financial liabilities Factoring of receivables Total content services debt Other debt OBSA Euro PP Other financial liabilities Shareholders loan (ex-dcinex) Total other debt Total gross debt Cash & cash equivalent (23.2) (18.1) Total net debt Net financial debt/ EBITDA = 1.9x (vs. 2.3x end of 2014) (1) Excl. dcinex s subordinated debt financed by YMAGIS for 10.2m 17

18 Highlights 2015 FY 2015 results analysis Convergence towards Operational Excellence Outlook Stock performance 18

19 Convergence towards Operational Excellence One Culture Unified brands for one Group Company Vision Company Mission Company Values One Organization BU/Division Each Division has a GM with a P&L responsibilities Development of performance culture Have in place Repeatable and Scalable Processes 19

20 Convergence towards Operational Excellence Cost Saving Plan Rationalization Plan Implantations : NOC, localization, Theatrical delivery turnaround Procurement Strategy Deployment HR Polyvalence and Poly-competence plan Opex Cost Down Contracts» Network redeployment» Insurance Global Bid» Subcontractors renegotiations Office leases General Expenses Goal is to save 2% of our 2016 costs 20

21 Convergence towards Operational Excellence Content Services Re-organization with 6 Divisions by the end of Q2 New Theatrical Delivery Organization in place for the end of this year Global EMEA Localization Strategy Capitalization on the Cine-Logistics acquisition Exhibitor Services New Organization in place end of Q2 Strategy for the Phase of Equipment renewal Sales Strategy per Country Services and Software 21

22 September 2016 : New 3-years strategic plan announcement

23 New brands for the group Content Services Exhibitor Services 23

24 Highlights 2015 FY 2015 results analysis Convergence towards Operational Excellence Outlook Stock performance 24

25 VPF: deleveraging at a much faster pace than the revenue decrease Evolution of no of screens based on VPF recoupment estimated date (1) Evolution of estimated cash flows (2) (in m) dcinex VPF screens Ymagis VPF screens Cummulated free cash flow Cash from revenues Free cash flow First recoupment has started with the end of the VPF model in Austria (268 screens) (1) As of end of December 2015 (2) Free cash flows means cash arising from revenues less operating and financing cash flows 25

26 Exhibitor Services: next investment cycle with replacement of 1 st generation projections systems Estimated volume of projection systems replacement market E 2017E 2018E 2019E 2020E 2021E New digital screens (net) Digital screens replaced Source: Company s estimate 26

27 Exhibitor Services: continued equipment sales growth expected supported by strong market Admissions in the European Union (in million) Evolution of number of screen in Europe (in million) Admissions (in million) Analogue screens Digtal screens CAGR : 4% Market is resilient despite unfavorable macroeconomic environnement and competition from other entertainment sources CAGR Total Screens : 7% New cinema builds across Europe illustrate the increased profitability of cinema exhibition when embracing digital technologies Source: mediasalles.it 27

Content Services: rationalization of content delivery platforms to improve traffic management and cost efficiency Expected evolution of deliveries mix per type of

satellite transfers mainly for pan- European and wide national deliveries, and live event Broadband (Electronic) 10%

cinemas 3,300* 4,500/5,000* Point to point terrestrial transfers for limited content release, trailers and advertising

28 Content Services: rationalization of content delivery platforms to improve traffic management and cost efficiency Expected evolution of deliveries mix per type of transmission TODAY 2017/2018 IDC technology rollout on each satellite receiver Satellite (Electronic) 40% 50% # of transponders to be reduced from 3 to 2 Point to multi-point satellite transfers mainly for pan- European and wide national deliveries, and live event Broadband (Electronic) 10% In house delivery protocol (RBC) rollout on each receiver Hard drives (Physical) 50% 25% 25% # cinemas 3,300* 4,500/5,000* Point to point terrestrial transfers for limited content release, trailers and advertising Hard drives for non connected cinemas with lower traffic and specific use (backup, ) Connected cinemas network to increase 30%/50% * Including DSAT 28

A network strengthened to bolster footprint in European cinema industry services Exhibitor Services 20 locations across Europe Content Services : 15 locations across Europe Minsk

29 A network strengthened to bolster footprint in European cinema industry services Exhibitor Services 20 locations across Europe Content Services : 15 locations across Europe Minsk Maastricht Berlin London Düsseldorf Łódź Liege Prague Kalsruhe Paris Strasbourg Vienna Auxerre Budapest Lausanne Zagreb Bucharest Moscow Barcelona Valencia Roma Istanbul Rabat Athens Casablanca 29

30 Highlights 2015 FY 2015 results analysis Convergence towards Operational Excellence Outlook Stock performance 30

1-year stock price evolution 10,5 10 9,5 40m private bond placement Last VPF deals in Turkey 9 8,5 1-year average stock price at 8.

31 1-year stock price evolution 10,5 10 9,5 40m private bond placement Last VPF deals in Turkey 9 8,5 1-year average stock price at ,5 7 6,5 6 janv.-15 févr.-15 mars-15 avr.-15 mai-15 juin-15 juil.-15 août-15 sept.-15 oct.-15 nov.-15 déc.-15 janv.-16 févr.-16 mars-16 Source : Yahoo Finance 31

32 Stock details Share capital breakdown As of 31/12/14 ISIN ticker Reuters ticker Bloomberg ticker FR MAGIS.PA MAGIS:FP 30,9% 26,2% Placement market Euronext C 3,3% 10,4% 13,4% 15,8% Shares outstanding 7,894,390 Average # of shares traded / day 9,154 Over the last 12 months (incl. block trade) As of 31/12/15 Share price (as of 25/03/16) 9.90 Capitalisation (as of 25/03/16) 77.7m YMAGIS Holdings 45,0% 6,1% Odyssée Venture Free float 23,3% 13,9% 10,3% 0,7% 0,7% OTC AM Amiral Gestion Sycomore AM Financière de l Echiquier Highest price (12 months) Lowest price (12 months) 7.25 Analyst coverage: Oddo, Aurel BGC, IDMidcaps Eligible PEA PME Eligible FCPI, label «Entreprise Innovante» (BPI France) Indices including YMAGIS stock: CAC Small, CAC Mid & Small, CAC All-Tradable, Enternext PEA PME

33 Stay tuned Website Investor relations Pierre FLAMANT CFO investisseurs@ymagis.com ACTIFIN Alexandre COMMEROT acommerot@actifin.fr 33

2016 Full-Year Results

2016 Full-Year Results April, 2017 www.ymagis.com Speakers Jean Mizrahi Founder & Chief Executive Officer Georges Garic Deputy Chief Executive Officer Rémi Gérard Chief Financial Officer Page 2 Table of