Dynamic chairs for businesses and homes. Dive into sensations.

1. Profitable dynamics.
dynamics during the
crisis?
The crisis - the time for a smart
investments

2. If you decide to read this presentation, you agree that
all listed and used in its data and calculations are
private opinion, and can not be the basis for legal
disputes and prosecution

3. The global entertainment market1

4. The global turnover of the film
industry and video games is growing
even in a crisis

5. What do we produce for this market?
And most importantly - why?

6. How to increase the incomes of the
cinema?2
+ ?

7. It’s EASY!
+50%-100%

8. Dynamic seat DreamSim is created
for this

9. A little about the DreamSeat
Only for 3500 EUR*
Power
48V/220V, 300W
The slope of the
axes to 30⁰
MAX angular
velocity
100⁰/сек
Dimensions
(L*W*H)
100*80*117 sm
* Rates are for a minimum batch of 30 chairs.
Individual remote
control

10. The business model for DreamSeats
Base seats
Side angle of the tilt for the DreamSeat 5 10 5 10 5 10 18
The number of films/year for the DreamSeat 25 30 25 30 25 30 35
The base number of seats 35 52 30 45 30 40 35
The basic ticket price (EUR) 6 7 8 9 9 10 15
Basic occupancy of the cinema (%) 15 12 15 12 17 11 14
The basic quantity of spectators per year 11 498 13 666 9 855 11 826 11 169 9 636 10 731
Basic Box Office (EUR) 68 985 95 659 78 840 106 434 100 521 96 360 160 965
Cost of 1 chair DreamSeat (EUR) 3 500 3 500 3 700 3 600 4 000 3 900 3 950
Initial investment (EUR) 87 500 133 000 96 200 140 400 92 000 120 900 98 750
Number of seats DreamSeat 25 38 26 39 23 31 25
The added value of the ticket (%) 50 40 60 50 60 50 40
The added value of the ticket (EUR) 3 2,8 4,8 4,5 5,4 5 6
Occupancy of seats DreamSeat (%) 35 30 40 35 40 30 25
Spectators per year at seats DreamSeat 13 125 20 520 15 600 24 570 13 800 16 740 13 125
New Box Office (EUR) 118 125 201 096 199 680 331 695 198 720 251 100 275 625
The cost of tracks for films per year (EUR) 5 000 6 000 5 000 6 000 5 000 6 000 7 000
The costs of electricity per year (EUR) 1 243 1 598 1 362 1 793 1 276 1 417 1 243
EBITDA at first year (EUR) 42 897 97 839 114 478 217 468 91 923 147 323 106 417
Payback period (years) 2,04 1,36 0,84 0,65 1,00 0,82 0,93
Standart Medium VIP

11. What is different the DreamSeat
from the other options?
What to choose?

12. DreamSeat or fixed seat?
Alternative cinema equipment
Usual
2D
Dream
Seat
The minimum volume of the conversion - a row
Minimum number of seats for conversion 320 30
The cost of conversion (EUR) - 105 000
The basic ticket price (EUR)
3
6,0 6,0
The added value of the ticket (EUR) 0,0 2
The added value of the ticket (%) 0% 33%
New ticket price (EUR) 6 8
Occupancy of the seats (%) 15% 35%
Converted area / Full area 0% 15%
Number of spectators per year at converted area 105 120 22 995
Total number of spectators per year 105 120 112 347
Calculated Box Office (EUR) 630 720 720 072
Growth of Box-Office (EUR) 0 89 352
Possible extra costs per year (estimated, EUR) 0 10 400
Extra costs for electricity per year (EUR) 0 3 219
Extras EBITDA in the first year (EUR) 0 75 733
Payback period (years) - 1,39

13. DreamSeat or fixed seat?
In result
DreamSeat Fixed seat
Drive!
Additional
sensations No
From 4 EUR/day
Additional
revenue 0
25% - 40%
Occupancy of the
seats 10% - 17%
From 8 months Payback ∞

14. DreamSeat or Platform?
Alternative cinema equipment
Platform
х4
Dream
Seat
The minimum volume of the conversion a hall a row
Minimum number of seats for conversion 180 30
The cost of conversion (EUR)
4
862 069 105 000
The number of films/year (approx.)
3
31 52
The basic ticket price (EUR) 6,0 6,0
The added value of the ticket (EUR) 2,8 2,8
The added value of the ticket (%) 47% 47%
New ticket price (EUR) 8,8 8,8
Occupancy of the seats (%) 23% 35%
Converted area / Full area 100% 15%
Number of spectators per year at conv. area 90 666 22 995
Total number of spectators per year 90 666 112 347
Calculated Box Office (EUR) 797 861 738 468
Growth of Box-Office (EUR) 167 141 107 748
Possible extra costs per year (estimated, EUR) 9 300 10 400
Extra costs for electricity per year (EUR) 42 311 3 219
Extras EBITDA in the first year (EUR) 115 530 94 129
Payback period (years) 7,46 1,12

15. DreamSeat or Platform?
In result
DreamSeat Platform х4
This is my armchair.
Under my control.
Sensations of
spectator
Airport shuttle
From 1 seat
to full hall
The size of
conversion
Full hall
From 10 000 EUR
Minimal
investment From 860 000 EUR
4
From 8 months Payback From 7,5 years

16. DreamSeat or competitors?
Alternative cinema equipment
Any
Name
Dream
Seat
The minimum volume of the conversion a row a row
Minimum number of seats for conversion 30 30
The cost of conversion (EUR)
4
204 720 105 000
The number of films/year (approx.)
3
22 52
The basic ticket price (EUR) 6,0 6,0
The added value of the ticket (EUR) 4,5 4,5
The added value of the ticket (%) 75% 75%
New ticket price (EUR) 10,5 10,5
Occupancy of the seats (%) 35% 35%
Converted area / Full area 15% 15%
Number of spectators per year at conv. area 22 995 22 995
Total number of spectators per year 112 347 112 347
Calculated Box Office (EUR) 777 560 777 560
Growth of Box-Office (EUR) 146 840 146 840
Possible extra costs per year (estimated, EUR) 6 600 10 400
Extra costs for electricity per year (EUR) 3 219 3 219
Extras EBITDA in the first year (EUR) 137 020 133 220
Payback period (years) 1,49 0,79

17. DreamSeat or competitors?
In result
DreamSeat AnyName
Large amplitude and
velocity
Mobility of the
seat
Less the dynamic
potential
Economy of 50% Cost More expensive in 2 times
Economy from 40%
Cost of 1 movie
track More expensive
From 8 months Payback From 7,5 years

18. DreamSeat or IMAX?
Alternative cinema equipment IMAX
Dream
Seat
The minimum volume of the conversion зал ряд
Minimum number of seats for conversion 250 30
The cost of conversion (EUR)
5
1 300 000 105 000
The number of films/year (approx.)
6
27 52
The basic ticket price (EUR) 6,0 6,0
The added value of the ticket (EUR) 4 4
The added value of the ticket (%) 67% 67%
New ticket price (EUR) 10 10
Occupancy of the seats (%) 22% 35%
Converted area / Full area 78% 15%
Number of spectators per year at conv. area 118 260 22 995
Total number of spectators per year 118 260 112 347
Calculated Box Office (EUR) 1 182 600 766 062
Growth of Box-Office (EUR) 551 880 135 342
Possible extra costs per year (estimated, EUR)
5
152 859 10 400
Extra costs for electicity per year (EUR) 8 176 3 219
Extras EBITDA in the first year (EUR) 390 845 121 723
Payback period (years) 3,33 0,86

19. DreamSeat or IMAX?
In result
DreamSeat IMAX
From 10 000 EUR
Minimal
investment About 1 200 000 EUR
5
From 1 seat
to full hall
The size of
conversion Full hall
In order of magnitude
lower
Current additional
expenses
More in 15 times
5
From 8 months Payback From 3 years
5

20. Variants of conversion for cinema hall
Alternative cinema equipment 2D
Dream
Seat IMAX
Dream
Seat
Platf.
х4
Dream
Seat
Any
Name
Dream
Seat
The minimum volume of the conversion - a row a hall a row a hall a row a row a row
Minimum number of seats for conversion 320 30 250 30 180 30 30 30
The cost of conversion (EUR) - 105 000 1 300 000 105 000 862 069 105 000 204 720 105 000
The number of films/year (approx.) 52 52 27 52 31 52 22 52
The basic ticket price (EUR) 6,0 6,0 6,0 6,0 6,0 6,0 6,0 6,0
The added value of the ticket (EUR) 0,0 2 4 4 2,8 2,8 4,5 4,5
The added value of the ticket (%) 0% 33% 67% 67% 47% 47% 75% 75%
New ticket price (EUR) 6 8 10 10 8,8 8,8 10,5 10,5
Occupancy of the seats (%) 15% 35% 22% 35% 23% 35% 35% 35%
Converted area / Full area 0% 15% 78% 15% 100% 15% 15% 15%
Number of spectators per year at conv. area 105 120 22 995 118 260 22 995 90 666 22 995 22 995 22 995
Total number of spectators per year 105 120 112 347 118 260 112 347 90 666 112 347 112 347 112 347
Calculated Box Office (EUR) 630 720 720 072 1 182 600 766 062 797 861 738 468 777 560 777 560
Growth of Box-Office (EUR) 0 89 352 551 880 135 342 167 141 107 748 146 840 146 840
Possible extra costs per year (estimated, EUR) 0 10 400 152 859 10 400 9 300 10 400 6 600 10 400
Extra costs for electricity per year (EUR) 0 3 219 8 176 3 219 42 311 3 219 3 219 3 219
Extras EBITDA in the first year (EUR) 0 75 733 390 845 121 723 115 530 94 129 137 020 133 220
Payback period (years) - 1,39 3,33 0,86 7,46 1,12 1,49 0,79

21. DreamSeat
- The best indicators of financial risks and
return on investment.
- The minimum investment amount.
- The absence of a fundamental
restructuring of the hall and
communications.
- Minimum terms of the conversion of the
hall.
- The minimum power consumption.

22. Recommendations for installation of dynamic
seats DreamSeat
- The main target audience - with an income
above average.
- One row in each hall better than all rows
in one hall.
- Low-voltage power supply of each seat -
the key to electrical safety of spectators.

23. And, you can install the latest
attractions
+
DreamGo + 5D DreamStart

24. Connect them to the network and run
the COMPETITIONS!
DreamStart

25. Business model for the simulators DreamSim
Type of equipment (DreamStart/ DreamGo + 5D) DS DS DS DS DS DG + 5D DG + 5D
Installation (alone / network) - - LAN LAN LAN LAN -
Number of seats 1 1 1 1 1 1 2
Capsule - Yes - - Yes Yes Yes
TV 55" (instead base) - 3 - 3 1 1 1
Number of purchased simulators 1 1 2 2 2 2 1
The total cost of the set 6 420 12 668 12 840 15 978 19 940 32 920 17 960
The average cost of a session (EUR) 3,0 3,0 3,0 2,5 3,0 3,0 4,0
Workload of the simulators (%) 20% 15% 25% 25% 20% 30% 25%
Revenue per year (EUR) 19 710 14 783 49 275 41 063 39 420 59 130 49 275
Extra costs for electricity per year (EUR) 675 659 1 380 1 380 1 349 1 410 767
Rent charges (EUR) 8 400 8 400 16 800 16 800 16 800 42 000 21 000
Personnel costs (per year, EUR) 7 680 5 400 18 000 18 000 14 400 21 600 9 000
Costs for 5D-movies from the second year 0 0 0 0 0 2 000 2 000
EBITDA per year (EUR) 2 955 323 13 095 4 883 6 871 -7 880 16 509
Payback (years) 2,2 39,2 1,0 3,3 2,9 NO 1,1

26. Installation recommendations for
the DreamSim
- Maximizing of the number of visitors
- Network from 2 DreamStart - the perfect
solution for entertainment, attraction and risks
- Program of group and package discounts
- Changing the routes in games is not more than
1 time per day
- Bonuses for champions

27. Stable high income brings
DreamSim 5D

28. Advantages of DreamSim 5D
- Scalability of Hall - from 1 chair and to the
limits of your imagination.
- The best video quality on the market.
- Power base configurations - from the usual
outlets in 220V.
- Low-voltage power supply of each seat -
48V.
- The most rapid seats at the market.

29. Business model for the DreamSim 5D
Number of seats 3 4 5 6 7 8 9
The total cost of the set(EUR) 31 080 47 040 54 180 61 320 68 460 75 600 82 740
The average cost of a session (EUR) 3,0 2,5 2,0 2,5 3,0 2,5 3,0
Workload of the simulators(%) 35% 30% 25% 20% 15% 25% 25%
Workload of the hall (average)(%) 90% 85% 80% 75% 70% 65% 60%
Revenue per year(EUR) 74 504 67 014 52 560 59 130 57 947 85 410 106 434
Extra costs for electricity per year (EUR) 3 577 4 088 4 599 5 110 5 621 6 132 6 643
Rent charges(EUR) 16 800 18 900 25 200 28 000 33 600 36 400 39 200
Personnel costs (per year, EUR) 12 096 12 240 12 000 10 800 8 820 15 600 16 200
Costs for 5D-movies from the second year (EUR) 2 000 2 000 2 000 2 000 2 000 2 000 2 000
Expenses from the second year (EUR) 36 473 39 228 45 799 47 910 52 041 62 132 66 043
EBITDA for 1 year(EUR) 38 031 27 786 6 761 11 220 5 906 23 278 40 391
EBITDA from 2 year(EUR) 38 031 27 786 6 761 11 220 5 906 23 278 40 391
Payback (years) 0,8 1,7 8,0 5,5 11,6 3,2 2,0

30. Installation recommendations for
the DreamSim 5D
- The optimum set - with 3-4 chairs
- Integrated ticketing (+ 5D cinema with
discount at 30%)
- Advertising of the next week 5D-movies
before a session
- Special price for 1 movie in 5D weekly
- Weekly rotation of films

31. Lots of fun at home!
The minimum area and the cost
+
Virtual RealityDreamStart

32. Are you impressed?

33. Our solutions are made for your
business and pleasure.
We are ready to help you earn and
save more. Especially in a crisis!
The decision is yours!

34. This presentation is based on information from
the following sources:
:•1
"World review of the entertainment industry and the media: the
forecast for 2012-2016“. PWC
2 http://www.nashgorod.ru/news/news42506.html
3
"Review of the Russian film market. Results of 2013 ". NEVAFILM
RECEARCH
4 http://www.thewrap.com/four-d-theaters-buck-jerk-spray-their-way-into-america/
5 http://www.secuteck.ru/newstext.php?news_id=66442&format=printer-friendly
6 https://prezi.com/dk3ljmuhs3fz/imax/
7
ANNUAL REPORT IMAX Corporation for 2013

35. We express our gratitude
NEVAFILM RESEARCH and
personally to Ksenia Leontieva and
toPricewaterhouseCoopers for the
opportunity to use the results of
their research in this presentation!

36. We'll reply for all questions FREE!!!
• by Skype: Dream Sim
• by e-mail: sales@dreamsim.net
• by phone: +(371) 2 9237495
• In office : Latvia, Riga, Maskavas iela, 322b

37. Profitable dynamics.
For income.
For home.