Press release relating to registration document filing

10 April 2013

YMAGIS HAS ANNOUNCED THAT IT HAS FILED ITS REGISTRATION DOCUMENT AS PART OF ITS PLAN FOR A FLOTATION ON THE NYSE EURONEXT PARIS STOCK EXCHANGE

YMAGIS announced that it has filed its registration document, under the number I. 13-012, dated 9 April 2013, with the French Financial Markets Authority (AMF), with a view to its flotation on the regulated market NYSE Euronext Paris Compartment C (1).

This flotation should take place soon depending on the market situation and subject to an authorisation to deal being issued by the AMF on a prospectus that complies with the provisions of the Directive 2003/71/CE (as amended) and the appendix XXV of the delegated regulation (EU) No. 486/2012 of 30 March 2012 (as amended).

YMAGIS is working with the European film industry as it switches to digital

Since its foundation in 2007 by Jean Mizrahi and Christophe Lacroix, two experiences specialists of the film industry in Europe, YMAGIS has played a key part in financing the digital switchover that this industry is experiencing, and is working with the entire filmmaking sector, from the producers to the exhibitors, in order help digitize the industry.

In this process, YMAGIS has become a key partner of European exhibitors, both independents and circuits such as UGC, Cap Cinéma, Cinéville or mk2 in France, CINEPLEX and Yorck in Germany, Utopolis or UGC in the Benelux, Ocine, Abaco, Neocine or Alta in Spain.

In order to bear the cost of the transition from 35mm to digital projection, YMAGIS has been assisting, since 2008, the cinema exhibitors in Europe in financing their new projection equipment and integrating new digital technologies.

In particular, YMAGIS has relied on its agreements concluded with over 100 distributors and advertising agencies throughout Europe, including many European independent distributors as well as the US Majors, namely Walt Disney, Paramount Pictures, Sony Pictures, Warner Brothers, Universal Pictures and 20th Century Fox

By the end of March 2013, over 170 European exhibitors have already contracted with the group that has helped them manage the digital transition of almost 2,600 screens (of which over 2,200 installed at the same date) in France, Spain, Germany and Benelux.

The specialist in digital services and technologies

YMAGIS provides assistance to producers, distributors and exhibitors way beyond the provision of financing solutions. Services to assist in the postproduction of feature films and other digital contents, their distribution (encryption, duplication, transport, evaluation), the development of software tools and services towards the exhibition industry: the group's technological expertise has strongly contributed to its success in France as well as abroad. This success is primarily the result of the high level of motivation of the hundred or so employees of the group in Europe, almost half of which are experienced engineers and technicians.

Following the success of its integrated digital laboratory located in the center of Paris providing postproduction services and the duplication / shipping of digital copies, similar production units are in the process of being set up in Barcelona and Berlin, making YMAGIS a Europe-wide provider to the content industries. With its proprietary software solutions and its integration expertise, YMAGIS has more broadly established itself as a leading provider of technical solutions in the digital era for the cinema industry.

Thanks to its broad scope of operations, YMAGIS has become a leading player in the digital switchover in France and in several European countries in a little over five years after its inception.

Growth and profitability: 2012 turnover +53%, operating margin of 15%

In 2012, YMAGIS generated a consolidated turnover of €39.7m that show a 52.7% increase compared with 2011, and show an operating profit of 14.9%. In France, consolidated turnover grew by +38% to €24.5m, while growing international business by +83% to reach €15.2m, that is, already 38% of the group's entire business.

Ambition: to become the leading European provider of digital services and technologies for the cinema industry

On the back of this first successfully-negotiated step in its business development, YMAGIS intends to continue assisting its exhibitor for the next replacement cycle of their equipment. Market size is estimated between 3,500 to 5,000 installations (2), with first replacement to be expected from 2015.

Furthermore, the company is intending to consolidate its international presence by pursuing the digital transition in Europe, and with the opening of two new laboratories in Berlin and Barcelona and the acquisition of specialised players.

YMAGIS also intends to broaden its product and service offering to the exhibition industry (ticketing software, digital displays in entrance halls, marketing services...), building on its key position in digital projection technologies and services.

YMAGIS's flotation plans form part of the business development strategy and its objective to become the leading European provider of digital technologies and services for the film industry. The filing of the registration document ahead of a listing on the regulated market NYSE Euronext Paris stock exchange is the first stage of this plan.

(1) Subject to approval from the regulatory authorities
(2) Company estimate

Check out all the financial information regarding the YMAGIS company at www.ymagis-bourse.com

Registration Document availability

Copies of the registration document listed with the financial markets authorities on 9 April 2013 under the number I. 13-012, are available at no cost from YMAGIS (106-108 rue La Boétie, 75008 Paris), as well as the websites of YMAGIS (www.ymagis.com) and the financial markets authorities (www.amf-france.org).

Risk factors

YMAGIS would like to draw the public's attention to chapter 4 "Risk factors” in the registration document listed by the financial markets authority and in particular the following risk factors:

  • New financing solution could be offered following the scheduled stopping of the VPF system, especially to finance the replacement of digital equipments; and
  • Risks relating to off balance sheet commitment generated to third-party collector activity