The Financial Year 2000
Transcription
The Financial Year 2000
DEAG Deutsche Entertainment AG Company Profile Berlin, April 2001 Financial Year 2000 0 Agenda ! Financial Year 2000- an overview ! Insight the segments ! Financial Status ! Outlook Financial Year 2000 1 The Financial Year 2000 an overview Financial Year 2000 2 Overview DEAG reinforces its leading position by 6.9 mil. visitors in 2000. ≈ 5,100 Events ≈ 1,900 ≈ 1,000 1.1 mil. 1997 6.9 mil. visitors ≈ 1,500 2.2 mil. 199 8 3.8 mil. 1999 2000 Financial Year 2000 3 Overview DEAG‘s fast growth in 2000 is reflected in all financial key figures. Employees Sales EBITDA EPS in DM FTE 1) in DM mil. in DM mil. (diluted) 1,879 50 6 0.7 3 38.8 + 103% 0.36 + 535% + 198% 17 0 29 6 1999 +190% 2000 1) FTE = Full time employees 1999 13.4 2000 1999 2000 1999 2000 Financial Year 2000 4 Overview DEAG‘s growth is based on a clear financing strategy. Acquisition Financing ! Stella Assets ! 24% of the shares to be sold, DEAG will keep mind. 51% to realise further synergies ! 90% of Good News AG ! DEAG-capital increase of about 1.1 mil. individual shares ! Marcel Avram and the associated touring business ! Financed mainly through own Cash Flow Additional Refinancing of DM 13 mil. growth expenses Financial Year 2000 5 Overview The financial year 2000 was marked by a „Content for Equity“ strategy. Synergy-Spin-offs Live-Products ! Varieté Realisation of Spin-offs after the credo „Content for Equity“ by granting access to … Musicals • Gastronomy in 17 venues !LSG Joint Venture (50% LSG) Concerts, Festivals • Being close to the artists for news, stories, streamings !ShowNet (50% MME Entertainment) Sport • Ticket volume of DEAG !Qivive (33% Lufthansa and 33% AxelSpringer) Financial Year 2000 6 Overview DEAG looks back to the most eventful financial year in its history. Acquisition Loreley Freilichtbühne Acquisition STELLA-Assets Premiere Dance of the Vampires Distribution of Tabaluga and Lilli Exclusive contract with EuroSpeedway Lausitz Tour start Tina Turner Foundation ticketing JV (Start, ASV) Stake in Good News Productions Stake in ChampCar Race Tour start Bon Jovi Foundation Internet JV ShowNet (with MME) Foundation R.O.M. Foundation Catering JV with LSG Foundation Global Entertainment with Marcel Avram Derniere Beauty 1st quarter 2nd quarter 3rd quarter 4th quarter Financial Year 2000 7 Overview The Theatres segment contributes the largest part to sales due to the acquisition of STELLA-Assets. Artists & Tours Theatres ! ! ! ! ! Varietés Musicals Artists Tours Festivals Urban Entertainment ! Concerts & Events ! Venues ! Catering ! Security Media & Commerce ! ! ! ! ! Sponsoring Event Marketing Merchandising Ticketing eCommerce 0.2% Sales Employees 54.9% 91.2% (incl. artists) 1) FTE = full time employees plus 39 staffers in the Holding 32.3% 12.6% 0.4 % 2%6.4% Financial Year 2000 8 Insight the Segments Financial Year 2000 9 Theatres The Theatres segment acted as the outstanding value driver in 2000. ! Sales EBITDA in DM mil. Enormous growth due to acquisition of STELLA-Assets • • • 274.4 ! 250 Mio. DM sales growth 25 Mio. DM EBITDA-Contribution 80% of DEAG visitor increase only through STELLA-Musicals Sales and result increase once more in the variety theatres, a.o. due to the expansion of the Gala business (60 events in 2000 opposite 43 in 1999) 26.6 19.4 2.0 1999 2000 Financial Year 2000 10 After only nine month the turnaround of STELLA is nearly completed. ! Cost Savings in 2000: DM 22 mil. • • ! • • „Cats“ since March 2001 in Stuttgart, „Beauty ... “ discharged in Dec. 2000 Closing of „Phantom of the Opera“ in June 2001 Fosse in June 2001, Mozart! In Sep. 2001 in Hamburg Purchase refinancing due to IPO • • • ! Payment reduction in rents, licences and leasing Only 65% economic utilization needed to reach break-even (instead of 75% in 1999); status 2000/01: 72% Pull-Effects through time-coupled program change • ! Theatres Capital increase by means of cash and non-cash capital contributions Going Public at Geregelter Markt in financial year 2001 24% to institutional Investors, DEAG keeps at least 51% of these shares Own productions respectively additional use of theatres • Development of „Emil and the Detectives“ Financial Year 2000 11 Artists & Tours The completed consolidation in the touring business determines also any further margin pressure. 1998/1999/2000 from 2001 Coco Tours Mama Concerts & Rau DEAG Good News 1) Balou Entertainment Blue Star Entertainment CTS Marek Lieberberg Concert Agency Peter Rieger Concert Agency SFX Semmel Concerts 1) headhunting „Ossy“ Hoppe epm Entertainment Financial Year 2000 12 Artists & Tours The Artists & Tours segment heads further towards Internationalisation. Sales EBITDA in DM mil. ! Iterated rise of events at about 70%, among others with Tina Turner, Bon Jovi, André Rieu, Britney Spears etc. ! Result is still debited from price and extrusion competition in 1999 90%-participation in Good News1) (Swiss market leader) ! • 161.8 113.3 • ! Foundation of Global Entertainment • 6.4 • -5.1 ! 1999 2000 70%-participation in Entertainment One Marcel Avram as a key figure in the international tour business Richard Ogden Management (R.O.M.), London/Berlin • 1) consolidated since 07/01/00 Exclusive contract with the Zurich Hallenstadion, the largest Swiss Indoor-hall (Capacity 12,000 visitors) Access cover of the entire value added chain After only 6 month already contracts with wellYear 2000 known artists (Vanessa Mae,Financial Bomfunk MC`s, 13 N i P ll t) Urban Entertainment In the Urban Entertainment Segment important synergy potentials were identified and implemented. ! Sales EBITDA in DM mil. Foundation of Catering Joint Venture LSG Event • • • 63.0 48.2 ! Further purchase potentials will be negotiated (energy, insurances) ! EuroSpeedway Lausitz • 7.5 • 5.5 ! 1999 2000 Synergy effects possible through critical size LSG disposes of know-how and purchase power DEAG participates from WKZ (promotion cost allowances) on a million level due to this JV Through participation of 25,1 % in ChampCar race thrust to sport entertainment Establishment of a first festivals in June First season in the Jahrhunderthalle • • Successful classical season based on a cooperation with IMG Artists Strong accession in theFinancial congress business Year 2000 14 Media & Commerce Once reaching the critical mass, spin-offs in the Media & Commerce segment were realised. Sales EBITDA in DM mil. ! Qivive-IPO planned in the second halfyear of 2001 • • 1.3 • 0.9 ! 0.3 -0.6 1999 2000 Designated book-runner is expecting a high three-digit mil. Euro amount for market capitalisation Factoring of Qivive´s brand and software-/ website-development through the share issue amount Replacement of shares to strengthen the financial power of DEAG and for a re-investment in the live business Internet portal ShowNet as an OnlineMarketing-Tool for DEAG • • • 1) Sales decrease due to method of consolidation (at equity) Opening of new business models (MicrosoftMadonna-Web cast: 300 visitors in venue, 9 mil. visitors in the internet) Development of direct costumer contacts Reduction of marketing costs (e.g. sale of 10% of U2-tickets via internet) Financial Year 2000 15 Media & Commerce Through the Joint Venture Qivive, DEAG lengthens its value chain by ticketing and tourism. System Market for leisure time START Amadeus ! Lufthansa-IT-subsidiary with reservation systems for tickets and hotels ! 5.700 travel agencies and box offices ! 21 mil. tickets 2000 ! 8.000 events to book daily ! Existing business with 75 employees will be brought in Media Axel-SpringerVerlag (ASV) ! Content DEAG Entertainment 51% of the German population within reach ! Linking Qivive and ASV objects incl. media performance in a high two-digit mil. DM amount Live Entertainment market leader and most important trigger for event-oriented short trips ! Exclusive distribution of tickets through Qivive systems, e.g. 70.000 U2-tickets in 2 hours ! Financial Year 2000 16 Financial Status Financial Year 2000 17 Financial Status All Profit & Loss positions show the strong growth of DEAG. P ’n L in DM mil. Sales 2000 Change towards 1999 506.0 Cost of materials 244.3 +198% +71% +518% Personnel expenses 127.2 +66% +650% Oth. oper. earnings 43.2 +190% Oth. oper. expenses 138.8 EBITDA • Spread of business volume -especially through STELLA - lead to high personnel expenses (above all for artists) 38.8 • Aggressive Depreciation-Policy because of shorter musical running time +703% +15% +206% Depreciations 27.3 Financial Year 2000 EBIT 11 5 18 Financial Status The acquisitions in 2000 let to a complete changed picture in the assets situation. Assets 370.2 in DM mil. 80.3 • Increase of Goodwill because of acquisitions 62.4 • Musical productions activated for the first time in 2000 15.4 Intangible assets Property, plant, equipment & Financial assets/ Musical productions Inventories Total accounts receivables/ Liquid assets Deferred charges and prepaid expenses 159.6 26.8 16.6 208.0 106.2 1999 • Significant rise of liquid assets from high advance sale as a result of business expansion 2000 Financial Year 2000 19 The increased liabilities are based on a changed consolidation basis and the STELLA-acquisition. Equity & Liabilities Financial Status 370.2 in DM mil. 96.1 52.6 159.6 Equity 35.6 Reserves and accrued liabilities 45.0 Liabilities 177.2 • Increase of Shareholders equity through first-time consolidation of Good News • Rise of Liabilities because of business expansion and acquisition financing 72.0 41.2 Deferred items 1999 2000 Financial Year 2000 20 Financial Status Despite the aggressive growth the earnings per share could be doubled. Key Figures Cash Flow Equity ratio CFPS EBITDA-Margin EPS (diluted) 2000 Changes toward 1999 DM 7.3 mil. 26% DM 1.03 7,6% -2% DM 0.73 +70% +16% +13.2% • Cash Flow increase: therefore higher interior financing • Equity ratio increased through Good Newsacquisition using own shares as an acquisition currency • EPS improved through +102% profitable acquisitions Financial Year 2000 21 Outlook Financial Year 2000 22 Outlook The strategic course set in 2000 ensures the growth in 2001. Sales EBITDA Media & Commerce Urban 2% Entertainment 12% 680 in DM mil. 506.0 45 38.8 141.0 13.4 61.7 1997 Artists & Tours 29% 170.0 7.1 2. 2 (1) 1998 (1) Theatres 57% 1999 (1) 1997 and 1998 Pro forma group 2000 2001e Financial Year 2000 23 Outlook The motto for 2001: increase in growth and efficiency. ! The sales forecast of 680 mil. DM can be achieved just due to complete consolidation of the 2000 acquisitions ! Further external growth if attractive opportunities are given, but the focus is on organic growth ! PIP: Profitability-Increasing-Program ! Inter-company proposal system for decreasing costs and increasing profitability ! Completing of integration in the first half-year to handle the growth done so far • • • • Successful reorganisation of the board of management Restructuring of internal processes (finance and accounting, IT etc.) Establishment of risk management Development of a competent 2nd management level Financial Year 2000 24 3. 1. 20 00 17 .1 .2 00 0 31 .1 .2 00 0 14 .0 2. 00 28 .0 2. 00 13 .3 .2 00 0 27 .3 .2 00 0 10 .4 .2 00 0 26 .4 .2 00 0 11 .5 .2 00 0 25 .5 .2 00 0 08 .6 .2 00 0 22 .6 .2 00 0 06 .7 .2 00 0 20 .7 .2 00 0 03 .8 .2 00 0 17 .8 .2 00 0 31 .8 .2 00 0 14 .9 .2 00 0 28 .9 .2 00 0 13 .1 0. 20 00 27 .1 0. 20 00 10 .1 1. 20 00 24 .1 1. 20 00 08 .1 2. 20 00 22 .1 2. 20 00 Outlook DEAG could distinguish itself with relative strength in a tough stock market surrounding in 2000. 200 DEAG vs. Neuer Markt since the beginning of 2000 175 DEAG 150 NEMAX ALL 125 100 75 50 Financial Year 2000 25 Outlook In 2001 numerous successful projects have been already realised or are planned. ! STELLA-Refinancing through IPO • Production of own musicals • Family entertainment ! Qivive with own market cap after IPO ! Creation of further contents through R.O.M. ! Adagio-licences Germany wide • Thrust in event gastronomy and night entertainment • Placing further licences in Germany after successful establishment in Berlin ! Sensational concerts with André Rieu, Eric Clapton and Udo Jürgens already took place in the first quarter of 2001; tours with Lionel Richie, Bon Jovi, AC/DC, U2, Peter Maffay, Eros Ramazzotti and André Rieu are in line. Financial Year 2000 26 Outlook Calendar Outlook 2001 May 22, 2001 July 5, 2001 Aug. 23, 2001 Nov. 22, 2001 Interim report 1st quarter 2001 Annual general meeting Interim report 2nd quarter 2001 Publication 3rd quarter 2001 May 2001 June 2001 Hamburg June 2001 AC/DC July 2001 Aug./Sept. 2001 7 concerts with Lionel Richie Premiere of Fosse in the Operettenhaus Sept. 2001 Hamburg 4 concerts with Bon Jovi, 4 concerts with 3 concerts with U2 11 concerts with André Rieu Premiere of Mozart! in the Neue Flora DEAG - Investor Relations, Christiane Kallabis-Schuster Kurfürstendamm 63, 10707 Berlin, Tel. (030) 81075 - 0, Fax -319 [email protected], www.deag.de Financial Year 2000 27