CONTINUED GROWTH The global box-office grew to $35.9 billion in 2013, with the US/ Canada market growing to an all-time high of $10.9 billion and the remaining international box-office reaching $25.0 billion, a 33% increase since 2008.

ECONOMIC RESILIENCE The global filmed entertainment sector performed strongly during recent recession, growing 3.5% to £52.9 billion 2008-2010. The FTSE 100 fell by 8.6% during the same period, whilst UK box-office receipts grew 11.1% in 2008-2009.

INTERNATIONAL EXPANSION Chinese box office grew by 27% in 2013 to $3.6 billion, while India’s $18.3 billion entertainment market is projected to double by 2018.

NEW REVENUE STREAMS Over-the-top (OTT) services deliver content via the internet to a multitude of devices including TV, computer, tablet and games consoles. Viewers now watch film and TV content in new ways and on new technologies, giving filmed entertainment companies more opportunities to access their audience and generate revenues. NEW PLATFORMS Services such as Video-on-Demand (VoD) are increasingly popular and these new markets are experiencing dramatic growth. Global electronic home video revenues are forecast to rise from $13.2 billion in 2013 to $32.7 billion by 2018.

INCREASED DEMAND Streaming platforms such as Netflix and Amazon now commission their own original content, meaning increased demand for high quality productions, benefitting producers and financiers.

INDUSTRY PERFORMANCE THE GLOBAL FILMED ENTERTAINMENT MARKET

GLOBAL ELECTRONIC HOME VIDEO MARKETMARKET OPPORTUNITY

MOTION PICTURE CAPITAL PRODUCTION FUND

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WHY INVEST IN FILM & TV?HMRC Approved EIS Fund

Source: PricewaterhouseCoopers

Source: PricewaterhouseCoopers

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CUMULATIVE GROWTH IN THE UK INDUSTRY THE UK FILM & TV INDUSTRIES CONTINUE TO THRIVE UK box office revenues exceeded £1 billion for the third successive year in 2013, whilst domestic and international investment in UK film production rose by 14% to reach £1.08 billion.

FILM & TV TAX CREDITS Governments around the world support the film and TV industry, with tax reliefs of up to 40% available in some territories. HMRC invested £206m in the UK Film Tax Credit in 2012/13.

CONTINUED UK STATE SUPPORT The 2014 Budget confirmed changes to the UK Film Tax Credit, raising relief rates from 20-25% on the first £20m of UK qualifying expenditure, and reducing the level of minimum spend required to benefit from the Tax Credit. The High-end TV Tax Credit was introduced in 2013.

ECONOMIC CONTRIBUTION The UK government sees significant benefit from the sector. The UK film industry had a turnover of £7.3 billion in 2012, whilst in 2011, every £1 invested in the Treasury by the film tax relief returned £12 GDP.

RISK MITIGATION Pre-sales (the practice of selling a film to distributors before it has been made) and government tax credits can play an important part in funding a film or TV show. These are received on delivery of a production, and as such provide an opportunity for investors to provide cash against them. Investors can benefit from sound structuring against these more predictable future revenue streams, significantly mitigating risk.

SIGNIFICANT POTENTIAL GAINS The film & TV industry provides opportunity for a blended investment strategy. By financing Pre-sales and Tax Credits it is possible for investors to manage their risk and still be able to make performance related investments into productions. This provides opportunity for significant upside if a production performs well commercially.

GOVERNMENT SUPPORT STRUCTURED INVESTMENT

WHAT DOES IT MEAN FOR AN INVESTOR?

• A strong performing investment sector with high demand for product and significant growth potential.

• An investment that is uncorrelated to many economic fluctuations affecting other investment classes.

• A non-cyclical market with proven resilience in periods of recession.

• New revenue streams for film & TV as a result of new commercial channels and high-demand for content benefitting investors.

• Consistent support from the UK government given the contribution of the industry to the wider economy.

• Opportunities for lower-risk

financing of productions as a result of international state tax credit schemes.

• Risk can be mitigated as the financing structure of film and TV productions provides opportunity for investments to be made against more predictable revenue streams.

• Steps taken to mitigate risk without compromising the potential upside.

WHY INVEST IN FILM & TV?

Total Turnover of UK industry Estimated UK VoD Market (inc. TV + Online) UK box office gross receipts

Sources: BFI Statistical Yearbook 2014

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September 2008 - Financial crisis(UK Box Office Gross grows 11.1% 2008 - 2009)

January 2012 - Netflix Launches UK service