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Enter the cinema of the future…

Enter the cinema of the future…. digital technologies for the cinema industry. Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014. YMAGIS, the specialist in digital technologies for the cinema industry. Activity: increase of 9% as at September 30, 2013.

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Enter the cinema of the future…

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  1. Enter the cinema of the future… digital technologies for the cinema industry Oddo Midcap Forum 2014 – Lyon – January 9 and 10, 2014

  2. YMAGIS, the specialist in digital technologies for the cinema industry Activity: increase of 9% as at September 30, 2013 Financial results: a 27% improvement in the current result before taxes as at June 30, 2013 Important progress in strategy implementation since the IPO • Strengthening of positions internationally • Creation of a JV with SmartJog/TDF

  3. Our expertise Technological solutions Financing solutions Production Distribution Exhibition Management of “fees” financing digital equipment Post Production Storage & archiving Localization Delivery Installation & maintenance Technical services and marketing Production Operating at every step of the value chain

  4. Our profile Evolution of consolidated revenue • Two buzz words: growth and profitability • Prizes: Deloitte In Extenso Fast 50 France 2013 and Deloitte Fast 500 EMEA 2013 for the strongest growth over 5 years • An innovative company • Half the staff made up of engineers and technicians • Proprietary software solutions • An international company • N°1 in France, in Germany and in Spain (1) • Commercial development in 11 countries • The confidence of more than 190 American distributors and more than 180 European exhibitors • More than 2700 VPF screens deployed to date in Europe • A company listed on NYSE Euronext compartment C since May 2013 • 11.6 M€ raised • 21.9% floating capital • Isin code: FR0011471291, mnemonic code: MAGIS +53% Evolution of current operational result +50% in M€, audited figures (1) Estimate by the company, Spain on the basis of signed VPF screens only.

  5. Our ambition To become n°1 in Europe in digital services and technologies for the cinema industry

  6. Our strategy • Extending geographical coverage in Europe • Pursuing screen migration • Opening new sites • Acquiring specialized players • Enhancing the offer of new products and services • Producers and distributor: development of new services • Exhibitors: extension of the digital services on offer • Preparing the first cycle of equipment renewal • A potential market estimated at between 3 500 and 5 000 digital installations to be renewed per year in Europe (1), with the first renewals expected in 2015 (1) Estimate by the company, on the basis of 36.000 screens in Europe, to be renewed every 7 years on average Important progress achieved since the IPO

  7. YMAGIS, the specialist in digital technologies for the cinema industry Activity: an increase of 9% as at September 30, 2013 Financial results: a 27% improvement in the current result before taxes as at June 30, 2013 • Important progress in strategy implementation since the IPO • Strengthening of positions internationally • Creation of a JV with SmartJog/TDF

  8. Analysis of activityas at September 30 Evolution of revenue 9 months consolidatedin M€ Share of consolidated revenue as at September 30, 2013, per geographical area +9% Non-audited figures

  9. Analysis of activityas at September 30 Evolution of consolidated revenue in France in M€ Evolution of consolidated revenue at international levelin M€ +10% +7% Non-audited figures

  10. Analysis of activityas at September 30 Analysis of consolidated revenue at international level (in M€) Share of consolidated revenue as at September, 2013, per geographical area +35% -46% +96% Non-audited figures

  11. Analysis of activityas at September 30 Evolution of consolidated revenue per segment (in M€) Analysis of consolidated revenue of Services segment (in M€) -41% +29% -17% +27% +40% 09/30/2012 09/30/2013 Non-audited figures

  12. A growing customer base i.e. 390 signed screens remaining to be deployed • As at September 30, 2013 : • 2 751 signed screens with 180 exhibitors • 2 361 screens deployed on behalf of 173 exhibitors Benelux Spain Germany France Evolution of the number of deployed VPF screens

  13. YMAGIS, the specialist in digital technologies for the cinema industry Activity: an increase of 9% as at September 30, 2013 Financial results: a 27% improvement in the current result before taxes as at June 30, 2013 Important progress in strategy implementation since the IPO • Strengthening of positions internationally • Creation of a JV with SmartJog/TDF

  14. Preamble / reminder: the VPF model (Virtual Print Fee) 1/2 • Financing model initiated in the United States and adapted to Europe, facilitating the digital conversion of theaters 35 mm movie Digital movie • Principle: the management of a fee on the contents • Financial contribution paid by the distributor to cover a part of the investment • For every new content shown, payment of a “VPF” by the distributor to Ymagis • These VPF cover between 75% and 85% of the equipment’s cost • More than 1 000 movie releases every year in Europe(1) significance of the flows generated Cost of a 35mm copy delivered to the exhibitor savings Contribution to financing ("VPF") savings Cost of a digital copy delivered to the exhibitor Cost of a digital copy delivered to the exhibitor from year 1 to year 10 starting from year 10 The payment of VPF extends over 7 to 10 years (1) Source : European Audiovisual Observatory

  15. Preamble / reminder: the VPF model (Virtual Print Fee) 2/2 IFRS accounting standards • The Third-Party Investors model: • YMAGIS finances the digital equipment, mainly through leasing • YMAGIS makes lease payments to the financial institutions in order to reimburse the leasing • The exhibitor pays Ymagis a contribution towards financing the equipment • A breakdown based on 2 methods • Restatement of the leases: • In the Income Statement, as financial expenses for the portion relating to financial charges • In the Balance Sheet, as debt reduction for the portion representing the asset • Posted in the assets of the Balance Sheet and depreciation of the financed equipment over 8 years • Accounting of the exhibitor’s contribution in the revenue • The Third-Party Collector model: • The exhibitor finances its equipment itself • The exhibitor invoices YMAGIS for a contribution • Accounting of the contribution in external charges

  16. Consolidated summarized Statement of Income IFRS, M€, as at 06/30 (1) Variation (%) 2013 2012 • The statements on June 30, 2012& 2013 underwent a limited review by auditors • Restated for the element attributable to minority shareholders, the Group’s net income amounts to 955K€ versus 883K€ in first half-year 2012 (+8,1%)

  17. Analysis of expenses structure IFRS, M€, as at 06/30 (1) 2013 2012 Variation (%) • The statements on June 30, 2012& 2013 underwent a limited review by auditors

  18. Summarized Balance sheet IFRS, M€ 06/30/2013 (1) 12/31/2012 (1) • The accounts underwent a limited review by auditors on June 30 and certification on December 31

  19. Analysis of Group’s consolidated indebtedness in M€ 06/30/2013 (1) 12/31/2012 (1) • The accounts underwent a limited review by auditors on June 30 and certification on December 31

  20. Cash flow Statement 06/30/2013 (1) 06/30/2012 (1) IFRS, M€ • The statements on June 30 underwent a limited review by auditors • Excluding investments financed by financial lease contracts

  21. YMAGIS, the specialist in digital technologies for the cinema industry Activity: an increase of 9% as at September 30, 2013 Financial results: a 27% improvement in the current result before taxes as at June 30, 2013 • Important progress in strategy implementation since the IPO • Strengthening of positions internationally • Creation of a JV with SmartJog/TDF

  22. Strengthening of positions internationally • Spain • July 2013: opening of the laboratory in Barcelona • July 2013: 39 additional screens contracted with Balañanetwork in Spain • September 2013: contract in Spain for 28 screens with Artesieteand 93 screens with Unión Cine Ciudad • Germany • April 2013: opening of the sales office in Düsseldorf • On September 30, 2013: signature of 34 new agreements with independent distributors • October 2013: opening of the laboratory in Berlin

  23. Creation of a joint venture with SMARTJOG SMARTJOG’s presentation • Business line of TDF specialized in satellite and ADSL delivery of cinema and commercial contents to cinema theaters • Servers and receiving antennae deployed in 9 countries: France, Spain, Portugal, Germany, Austria, Switzerland, Benelux • Network of 1 600 theaters representing 6 000 connected screens • In 2012 delivery of 26 000 movie copies and 140 000 trailer and commercial copies in Europe • Rental of two transponders with a total capacity of 140 Mb/s to Intelsat, the leading satellite services supplier in the world • Original software solution, brought to the JV

  24. Creation of a joint venture with SMARTJOG Satellite coverage making high-scale European deployment possible

  25. Creation of a joint venture with SMARTJOG Activities brought by YMAGIS and SMARTJOG Birth of the first European player in integrated logistics of digital contents for the cinema industry DCP transport by satellite and terrestrial line Software solution allowing the management of cinema file transfers On-line archiving platform Other advanced information tools DCP duplication and transport on physical devices Ymaginet: private network of dematerialized transmission to 450 cinema theaters Ymaship: integrated logistics solution for cinema DCP storage and archiving > >

  26. Creation of a joint venture with SMARTJOG for the DISTRIBUTOR for the EXHIBITOR for YMAGIS An offer to answer the sector’s needs • A fully integrated service regardless of the delivery model • Limitation or suppression of logistics / handling of hard disks • A vector of business acceleration • Delivery of movies across Europe • A business point of entry to sell additional services • Reduction of costs related to physical devices • Continuation of cabin automation • Ultimately, a decrease in delivery costs • Wider access to the contents

  27. Creation of a joint venture with SMARTJOG WIRE LINKS SATELLITE A unique offer in Europe, making it possible to optimize technical means • Allows coverage of a wide area to distribute pan-European movies (studios) • Ensures the distribution of limited releases • Economic vector for limited releases PHYSICAL DEVICES • Option valid for “large” national releases by local distributors • Makes it possible to offer an immediate solution in countries not well-equipped with satellite / ADSL receivers • The “dropped packets” of a satellite diffusion may go through ADSL or fiber • Allows the management of copies’ “circulation” thanks to pre-loading • Ensures the movie release on every site, even in case of receiver breakdown • Premium to the widest network • Answers an emerging demand for content download on demand by theaters YMAGIS, the only European player capable of offering an integrated solution

  28. Creation of a joint venture with SMARTJOG Competitive environment + + Number of connected sites Europe, 1 800 Europe, 1 000 France, 600 4 countries, 700 Scandinavia, 600 UK, 250 Geographical coverage - - Netherlands, 100 France, 0 ADSL/Fiber project 28 No known project

  29. Creation of a joint venture with SMARTJOG The roadmap • Q4 2013 / early 2014 : • Effective capital contribution on 11/30/2013 • Start of the new entity, SmartjogYmagis Logistics • Implementation of a unified business policy • Evolution of the business model for terminal availability • Implementation of the necessary financing for the business extension • Continuation of the deployment of receiver terminals • 2014 : • Negotiation of local or pan-European agreements with distributors • Acceleration of the deployment in France and in the rest of Europe

  30. Creation of a joint venture with SMARTJOG • 11/30/2013: EGM of SmartJog-Ymagis Logistics (SYL) validating the contributions of SMARTJOG and YMAGIS • Pro-forma 2013 SYL income of around 7 M€ increasing by 14% vs 2012 • Accounting integration from December 1st , 2013 in the YMAGIS accounts • A team of 25 people, including 12 from YMAGIS, who will operate from YMAGIS offices • 1 800 theaters connected in Europe of which 1 600 equipped with a transmission receiver • Business deployment has already started, with the first contracts expected early 2014 in Western Europe then Eastern Europe • Update early December 2013

  31. Our priorities • Making a success of the business deployment of SYL and of its installed base • Deploying the signed contracts in Spain • Developing the customer base in Germany in order to strengthen our penetration in this region • Widening the technological gap by enriching our innovative software offer • Extending our geographical reach to new areas • Finding new acquisition opportunities making it possible to extend our offer of products and/or services to distributors and exhibitors

  32. Share characteristics Capital distribution Voting rights distribution ISIN code: FR0011471291 Reuters code: MAGIS.PA Bloomberg code: MAGIS:FP Market compartment: NYSE Euronext C Number of shares: 6 495 531 Average number of shares/day: 3 266 over three rolling month on 01/06/2014 Stock price on 01/06/2014: 7.30 € Capitalization on 01/06/2014:47.4 M€ Highest 12 months: 7.60 € (10/18/2013) Lowest 12 months: 6.52 € (09/03/2013) Founders OTC AM Odyssée Venture Public Stock price evolution since the IPO

  33. Financial communication Agenda 2013/2014 • February 11, 2014: turnover for 2013 • March 25, 2014: results for 2013 • May 13, 2014: turnover for 1st quarter 2014

  34. Websitewww.ymagis.fr Investors’ contacts: Jean-Marie DURA Managing Director 01 79 97 78 67 investisseurs@ymagis.com ACTIFIN (financial communication) Alexandre COMMEROT 01 56 88 11 11 ymagis@actifin.fr

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