Presentación de PowerPoint

MBA José Ignacio Irigoyen Palacios
CFO
November 16th, 2011
 Value Proposition
Cinemagic brings high-quality movie theater experience to
unserved smaller communities offering release-date premieres
at accessible prices
 Statistics
Revenue:
Employees:
Location:
Founded:
$5.51 Million USD in 2011
224 year end
8 complexes with a total of 46 screens
2000
 Company
C-Corp (CINEMAGIC S.A.P.I. de C.V.) constituted in Mexico.
• Cinemagic targets the 226
cities in Mexico that have a
population between 50-150K
• These communities have the
disposable income but lack
access to movie theaters
8 complexes with a total of 46
screens growing to 10
complexes and 56 screens
in November 2011
CEO - MBA Roberto Quintero
 20 years of experience outfitting
and operating movie theaters.
 Ample knowledge of the theater
industry.
 Extensive training in humanities
and social sciences.
CFO - MBA Pepe Irigoyen
 Solid experience and education
with more than 10 years in
finance.
 Ample knowledge of the finance
industry.
 Extensive training in financial and
strategic planning.
Recognized by CNN’s Expansion magazine among Mexico’s top ten entrepreneurs of the year (2010)
•70% owned by Founders
•30% owned by 2008 Investors
•Cinemagic has a well established board of directors
•Board composed of 7 members including 2 independents
Addressable Market.
•226 cities
•$221 million Dollars per year
•38 million attendance per year
Historical Footnote:
The smaller communities were
served
by
the
Mexican
government directly in the past.
The elimination of these movie
theater complexes left a large
unserved market that could be
addressed.
Average attendance per year
1 Million attend Cinemagic
theaters in 2011!
Competitor
(Type)
Description
Cinemex
(Indirect)
MMC
(Indirect)
Cinemagic
Revenue


Not a social activity
Illegal
US$483
million
The leading movie

theater chain in with 191 
complexes nationally

Brand recognition
First-class facilities
Average of 10 screens
per complex

US$320
million
(2010)
One of the leading
movie theater chains in
with 43 complexes
nationally



Brand recognition
First-class facilities
Average of 11 screens
per complex

One of the leading
movie theater chains in
with 104 complexes
nationally



Brand recognition
First-class facilities
Average of 9 screens
per complex

Average ticket price
of US$4.00
Current model
would not work for
smaller cities
Average ticket price
of US$4.00
Current model
would not work for
smaller cities
Average ticket price
of US$4.00
Current model
would not work for
smaller cities


Low initial Investment.
Average of 6 screens
per complex.

Reduced working
capital.
US$5.5
Million
(2011)
High-quality movie
theaters.
Smaller communities.
accessible prices.
Release-date premieres.


Weaknesses
Low price
New releases
The pirate market in is
Pirated DVDs
the largest in the world
(Direct)
Cinepolis
(Indirect)
Strengths



US$80
million
(2010)
US$80
million
(2010)
Founders:
US$3.6M
Capital to be raised:
$ 5M
2008 Investors:
US$2.2M
Pre-Money:
$10M
Total Current Investment:
US$5.8M
Future funding rounds:
$ 5M
Mexico Movie Theaters Chain
Xtreme Cinemas:
2007 sold to Cinepolis
Multimax:
2007 sold to Southern Cross and Morgan Stanley
MM Cinemas:
2007 sold to Southern Cross and Morgan Stanley
2008 sold to “Entretenimiento GM de Mexico”
Cinemex:
2002 sold to the Canadian company Onex for $ 295 million
2004 sold to Bain Capital, Spectrum Equity and Carlyle Group
2008 sold to “Entretenimiento GM de Mexico” for about $ 315 million
Why invest in Cinemagic?
1. Solid management team
2. Large under served addressable market with
strong barriers to entry
3. Strong financial results
4. Exit with potential multiples