MxMedia investor pitch deck

Your Digital Media Library, Anytime, Anywhere

MxMedia Sp. z o.o. © 2012 • www.mxmedia.eu • @MxMediaEu


Today’s Media Environment needs a Change

• As technology evolves content security has been decreasing

• DVD sales down

• Illegal downloads up

• Limited Legal Recourse – ACTA collapse in Europe

• Digital sales still in infancy stage

• No clear, high revenue alternative to DVD model present – Still

searching…

• Mobility of content

• Compatibility across platforms

• No user playback restrictions

• Wide availability of High Quality digital content

• Premium Home Entertainment and On-the-Go experience in one

• Want to pay for only what they want

Content Owners

End Users’ Expectations


Proposition Real-time

transactional

and

consumer

info

Content

Owners

Internet

connection not

needed

Play content on

over a Billion

devices

currently in the

market

No restrictions

on the amount of

allowable

display devices

High quality

content on any

platform

Share and Play

media anytime

anywhere

off-line

No late fees on

rentals

End Users

Complete

Content

Security and

Protection

New EST

(sale) and

TVOD

(rental)

distribution

channel

Solving industry’s biggest challenge:

Meeting Content Owner

Requirements with End User

Expectations

Sustainable

monetization

of digital

content


Michal Furmaniak

CEO

• Manager

• Marketer

• Entrepreneur

• Community Leader

• Inspirer

Blazej Kowalski

COO

•Academic

• Designer

• Implementer

• Researcher

Meet The Team

Michal Kowalski

CTO

• Designer

• Entrepreneur

• Innovator

• Inspirer

• Developer

Igor Hansen

Chief Engineer

• Designer

• Developer

• Inventor

• Author

Marta Lazar

CFO

• Financier

• Chief

Accountant

• Financial

Controller

Who is MxMedia, the innovator ?

• Technology specialists of digital content distribution

• Experienced, entrepreneurial, passion driven, outside-the-box thinkers

• Providers of a unique mass media digital distribution system

• Patent holders

Advisors

• Jim Taglierini – Founder and President of Accessible Software

• Joseph Horacek III – Manatt, Phelps & Phillips, founding partner and

chairman of the motion picture and television department

Legal Counsel - McDermott Will & Emery LLP and MSDS Legal


Users can rent and purchase films

from the online platform or self-

service digital Kiosks in Standard and

High Definition formats, in less than 60

seconds, directly onto a patented

micro Player device.

With the touch of a button the unique

Player plays back the downloaded

digital content off-line directly onto

any contemporary television,

computer, tablet or other mobile

device via its HDMI or WiFi output.

The secure playback can occur

anytime anywhere, independently of

the operating system available on the

display device.

Titles will never be out of stock and

there will be no rental late fees. With

multiple revenue sources and flexible

client payment options the system can

be adapted in any region. Download,

store, share and play what you want,

when you want it.

Solution Delivery

mumeGo™ = Multi Media to Go


Market

$101 Million

$12.4 Billion

Value of retail and rental home entertainment market (DVD, BD, Digital, TV VOD)

Poland © International

Video Federation

2012*

Europe © International Video

Federation 2012*

$18 Billion

$80 Billion

World © 2011 IHS Inc.

US ©2012 Bloomberg L.P.

*EUR/USD 1.30


MxMedia’s 1st Market Share Goal

Year

2014

2016

2018

Market Share Goal

.9%

4.7%

6%

Value of Market Share

$104 million

$578 million

$737 million

*Netflix – 2011 US Market Share 17.7% - $3.2 Billion © DEG 2012 and © Netflix 2012

Redbox – 2011 US Market Share 9% - $1.6 Billion (and rising YOY) © DEG 2012 and © Coinstar 2012

Europe


2013 2014 2015 2016 2017 2018

Profit & Loss (in '000 EUR)

Revenues 199 78 236 242 116 388 922 403 727 486 101

Operating Income (OpInc) -2 728 11 349 57 235 105 833 112 063 138 955

OpInc pessimistic (Sensitivity Analysis)* -2 713 4 153 39 925 80 580 87 364 109 864

Financial Model and Projections

* 30% lower market share

-100,000

0

100,000

200,000

300,000

400,000

500,000

600,000

2013 2014 2015 2016 2017 2018

Profit & Loss Statement (in '000 EUR)

Revenues Operating Income (OpInc) OpInc pesymistic (Sensitivity Analyzis)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2014 2015 2016 2017 2018

No. of users per market (in '000)

PL

FR

ES

DE

GB

IR


Financial Model and Projections

2014 2015 2016 2017 2018

Profitability Ratios

Gross Profit Margin 26,5% 29,1% 30,0% 30,8% 31,4%

Return on Sales (ROS) net 11,7% 18,9% 21,9% 22,4% 23,1%

Return on Assets (ROA) 23,8% 40,4% 53,9% 59,9% 64,3%

Exit Opportunity

Sale or IPO at

2.5 x 2015 Revenue

• MxMedia will make for a lucrative investment even with conservative projections

-10,000

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2013 2014 2015 2016 2017 2018

Discounted OpInc & Cash Flow (in '000 EUR)

Discounted Operating Income

Discounted Net Income (subject to dividend)

Discounted Equity Cash Flow (DECF)


Competition Comparison:

Value benefit to

consumer

Operational costs

Mobility of

content

Compatibility

with devices

Recurring cost

regardless of usage;

limited premium

content selection

Works on any operating system;

can play on over a billion

televisions, computers, tablets,

and mobile phones

DVD or Blu-ray player is

required; cannot play on

tablets or mobile phones;

Streaming only

works with internet

connected devices

High upfront costs; high

logistics, restocking and

invetory costs

High upfront content

costs because of

SVOD model; high

streaming costs

Limited upfront costs, rev share

per transaction; content and

infrastructure management fully

automated and remotely managed

No recurring fees; no out of stock

titles; buy or rent what you want;

no late fees; premium content

Limited content selection;

frequent out of stock titles;

late fees

Can be securely stored,

transferred and copied anywhere;

plays off-line

Content must be stored

on disc; portability is

limited

Must be online to

view digital content


These guys CONFIRMED they like it:

These guys will LOVE it:


• Patented Technology (P.399271, EP 12179755.9)

• Accepted by Major Movie Studios as a new type of distribution channel

• In advanced business talks with Major, mini Major and independent Movie Studios

• Letters of intent from major retail chain partners for the deployment of digital content delivery Kiosks

• $1.4 million EU technology grant Finalist

• Member of the Power Matters Alliance

MxMedia’s current Milestones:

Current Partners for startup in Poland:

• We are partnering with international retail chains for the placement of digital Kiosks

Outlets: 750 ( + another 300 to be added)

1100

(includes partner salons)

450+


NOW WE NEED YOU!!!

$1.5 million Goal

Funds will be used for:

• Prototype completion and,

Toward initiating service deployment in Europe with a:

• Premium content library of at least 1000 titles,

• Minimum of 200,000 Player devices,

• Guaranteed 750 self-service digital content delivery Kiosks,

• Internet content delivery platform,

• Marketing, operational and capital expenses


JOIN US SO WE CAN CHANGE

THE ENTERTAINMENT

WORLD TOGETHER

Michal Furmaniak

[email protected]

www.mxmedia.eu • @MxMediaEu • angel.co/mxmedia

Czerniakowska St. 71, 00-715, Warsaw, Poland

Tel: +48 602111698

New Bond House, 124 New Bond Street, W1S 1DX, London , UK

Tel: +44(0)2033 551 759