Vitaminic - The Music (R)evolution Roadshow per l'IPO sul Nuovo Mercato di Borsa Italiana, 30 Novembre 2000

1. ¯
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The Music (R)evolution
NUOVO MERCATO – RoadShow
Milano, November 30th 2000

2. Business and Strategy
Our Mission
Music is going Digital
We are a leading Promotion and
Distribution Platform of Digital Music over the
Internet and other Digital Networks
Our Mission is to capture value from every
Digital Music transaction
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3. Business and Strategy
A huge market opportunity
• Music is a 40 bln $ market quickly going on-line
Worldwide on-line music sales Worldwide digital download sales
(US$ mln) (US$ mln)
6,635
1,100
70% CAGR
70% CAGR 378% CAGR
378% CAGR
(2000-2003)
(2000-2003) (2000-2003)
(2000-2003)
1999 2000E 2001E 2002E 2003E 1999 2000E 2001E 2002E 2003E
Source: Forrester Research Source: Forrester Research
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4. Business and Strategy
A sound Business Model
Music Consumers
Multiple Delivery Channels
B2B /partners B2C
Enabling Platform for Leading a Pan European
Portals and Major Sites Music Community
Enabling Technology for Digital Music
/partners
Content Aggregation from Multiple Sources
Music Industry
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5. Business and Strategy
A Leading Position
8 sites for 8 390,000 around 10 mn
registered monthly 2.5 million
countries
users page-views songs
delivered
over 18,000 75,000 digital over 500 monthly
artists tracks labels
• Content provision and Infrastructure delivery to more than 30 portals in
Europe
• Agreements with major European mobile telecom operators (OMNITEL 2000,
Samsung/KPN)
• Technology innovation and content provision over IP, GSM, Wap, SMS,
Gprs, UMTS
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6. Business and Strategy
Vitaminic:The Music (R)evolution
Ÿ Cooperative approach with the record industry
Ÿ Largest music library in Europe
Ÿ Enabling major portal & telcos to deliver music
Ÿ First mover advantage
Ÿ International presence
Ÿ Experienced management team
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7. Business Model & Operations
Our website features
More than 250
8 national websites
music genres
classified
Fully
Weekly e-mail
personalized
newsletters
homepage for
artists
10 channels for
News and
each website
information on
the music world
Support of hardware and
software applications for
Streaming &
digital music
downloading
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8. Business Model & Operations
Powering over 30 Leading
Websites
Agreements with more than 30
of the most visited Websites
in Europe, with a combined monthly reach
of over 10 million European customers*
*Source: Mediametrix, Onetone
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9. Revenue Model
Building Multiple Revenue Streams
Advertising &
Advertising & – Premium CPM, High Sellthrough
Sponsorship
Sponsorship
– Direct: Digital Delivery, Burned CDs,
E-Commerce
E-Commerce Traditional CDs
– Indirect: Auctions, MP3 Players
– Revenue sharing
Syndication
Syndication – Fixed Fee “White Label”
M-Commerce – Voice Services
M-Commerce
(upside) – WAP music channel
(upside)
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10. Revenue Model
Advertising & Sponsorship
Highly attractive audience and a key target for consumer
goods’ advertisers
Levi’s
TELECOM
ITALIA
Schweppes
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11. Revenue model
Content Syndication …
Ÿ Exploiting multiple revenue streams through multiple channels
Ÿ Revenue models:
– Co-branded Revenue Sharing
– White Label Content Syndication
Channel
Channel Example
Example
Portal-Digital music search
Portal-Digital music search Excite Europe
Excite Europe
Portal-Digital music channel
Portal-Digital music channel Lycos Europe
Lycos Europe
Vertical portal
Vertical portal Ministry of Sound
Ministry of Sound
Internet service provider
Internet service provider BT
BT
Mobile operator
Mobile operator Omnitel
Omnitel
Broadband operator
Broadband operator Chello
Chello
Consumer hardware manufacturer
Consumer hardware manufacturer Samsung
Samsung
Media player software
Media player software Microsoft Windows Media
Microsoft Windows Media
ADSL
ADSL In negotiation with multiple operators
In negotiation with multiple operators
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12. Revenue model
Content syndication: an example
Ÿ powered by Vitaminic
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13. Revenue model
M-commerce - Upside
M-commerce revenues worldwide expected to reach $23
billion by 2004
• Examples of revenue streams:
– Network revenue share on voice services (Now)
– Pay per use revenue share on SMS content (Soon)
– Subscription to a music digital delivery (Future)
• M-commerce is delivered to multiple devices, e.g. PDAs, in-car
entertainment systems, as well as by mobile phones, PC and TV
Source: Durlacher Research
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14. Revenue model
Ready to exploit the Mobile
Channel
An extremely effective
agreement: more than 100,000
calls in the first four days after
the launch
• Digital Music Delivery through mobile phones is a huge
opportunity:
– high penetration of handsets in Europe
– Broadband technologies (UMTS) development
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15. Financial Results
Before the IPO
3Q 1H
Sept. 30, 2000 June 30, 2000
Revenues Euros 399.000 Euros 807.738
Gross Operating Euros –4.3 mn Euros –14.1 mn
Margin
Net Cash Euros 3.4 mn Euros 3.7 mn
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16. Initial Public Offering
The IPO – October 12, 2000
Shares offered
Shares offered Global Offering: 1.2 million primary shares
Global Offering: 1.2 million primary shares
Up to 180,000 primary and secondary shares
Up to 180,000 primary and secondary shares
Green shoe
Green shoe G.S. has not been exercised
G.S. has not been exercised
5,113,850 post Global Offering and Stock Options
5,113,850 post Global Offering and Stock Options
Total shares
Total shares exercise
exercise
Free float
Free float 24,8%
24,8%
Listing Market
Listing Market Nuovo Mercato – October 12th, 2000
Nuovo Mercato – October 12th, 2000
Offer Price
Offer Price Euros 26
Euros 26
Market Cap.
Market Cap. Euros 102,3 mn (recent P= Euros 20)
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17. Final Remarks
Key Investment Highlights
Ÿ Leading Pan-European player in the fast growing
Digital Music Market
Ÿ Diversified Revenue Streams on Multiple Delivery
Channels
Ÿ Highly scalable and profitable Business Model
Ÿ Largest music library in Europe
Ÿ Cooperative approach with music industry
Ÿ Significant growth opportunities from Mobile and
Broadband
Vitaminic will exploit the booming digital music market
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18. WWW.VITAMINIC.COM
WWW.VITAMINIC.IT
WWW.VITAMINIC.CO.UK
WWW.VITAMINIC.DE
WWW.VITAMINIC.FR
WWW.VITAMINIC.ES
WWW.VITAMINIC.NL
WWW.VITAMINIC.SE