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
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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
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00
0
10
.4
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00
0
26
.4
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00
0
11
.5
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00
0
25
.5
.2
00
0
08
.6
.2
00
0
22
.6
.2
00
0
06
.7
.2
00
0
20
.7
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00
0
03
.8
.2
00
0
17
.8
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00
0
31
.8
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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
public@deag.de, www.deag.de
Financial Year 2000
27