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Presentazione IPO Vitaminic


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

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Presentazione IPO Vitaminic

  1. 1. ¯ ¯¯ The Music (R)evolution NUOVO MERCATO – RoadShow Milano, November 30th 2000
  2. 2. Business and Strategy Our Mission Music is going Digital We are a leading Promotion andDistribution Platform of Digital Music over the Internet and other Digital Networks Our Mission is to capture value from every Digital Music transaction 2
  3. 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 2003ESource: Forrester Research Source: Forrester Research 3
  4. 4. Business and Strategy A sound Business Model Music Consumers Multiple Delivery Channels B2B /partners B2C Enabling Platform for Leading a Pan EuropeanPortals and Major Sites Music Community Enabling Technology for Digital Music /partners Content Aggregation from Multiple Sources Music Industry 4
  5. 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 5
  6. 6. Business and Strategy Vitaminic:The Music (R)evolutionŸ Cooperative approach with the record industryŸ Largest music library in EuropeŸ Enabling major portal & telcos to deliver musicŸ First mover advantageŸ International presenceŸ Experienced management team 6
  7. 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 worldSupport of hardware andsoftware applications for Streaming & digital music downloading 7
  8. 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 8
  9. 9. Revenue Model Building Multiple Revenue StreamsAdvertising &Advertising & – Premium CPM, High SellthroughSponsorship Sponsorship – Direct: Digital Delivery, Burned CDs,E-CommerceE-Commerce Traditional CDs – Indirect: Auctions, MP3 Players – Revenue sharing Syndication Syndication – Fixed Fee “White Label”M-Commerce – Voice ServicesM-Commerce (upside) – WAP music channel (upside) 9
  10. 10. Revenue Model Advertising & SponsorshipHighly attractive audience and a key target for consumer goods’ advertisers Levi’s TELECOM ITALIA Schweppes 10
  11. 11. Revenue model Content Syndication …Ÿ Exploiting multiple revenue streams through multiple channelsŸ 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 11
  12. 12. Revenue model Content syndication: an exampleŸ powered by Vitaminic 12
  13. 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 13
  14. 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 14
  15. 15. Financial Results Before the IPO 3Q 1H Sept. 30, 2000 June 30, 2000Revenues Euros 399.000 Euros 807.738Gross Operating Euros –4.3 mn Euros –14.1 mnMarginNet Cash Euros 3.4 mn Euros 3.7 mn 15
  16. 16. Initial Public Offering The IPO – October 12, 2000Shares offeredShares 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 MarketListing 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) 16
  17. 17. Final Remarks Key Investment HighlightsŸ Leading Pan-European player in the fast growing Digital Music MarketŸ Diversified Revenue Streams on Multiple Delivery ChannelsŸ Highly scalable and profitable Business ModelŸ Largest music library in EuropeŸ Cooperative approach with music industryŸ Significant growth opportunities from Mobile and Broadband Vitaminic will exploit the booming digital music market 17