Pinewood Shepperton plc A leading provider of services to the global film and television industry

Pinewood StudiosThe Need to Grow

Consultation with Buckinghamshire Business First Members and Board

1September 20121. IntroductionBBF is an important part of Buckinghamshires economic infrastructure and provides a strong business voice for Buckinghamshire and the Buckinghamshire Thames Valley LEPPinewood Studios is a jewel in Buckinghamshires economic crown but its expansion faces some challenges because of greenbelt policyPinewood needs to understand whether BBF supports its growth plans but first some background..........

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1. Introduction (contd) Pinewood: Past, Present & FutureEstablished in 1936Organic growth achieved since thenHas an unique place in world film historyOver 100,000 sq. metres of accommodationOver 300 independent media and production support companies are based across the three studio lots, in a thriving studio village environmentAn iconic global brandA need to grow to accommodate growing world demand3

1. Introduction (contd) Film Industry EndorsementThe great thing about Pinewood is that its a one stop shop and thats very comforting for producers. You can come into a studio environment where everythings in one place; water, filming specialists, SFX companies, computer graphics companies, lighting and camera companies. Its fantastic.Callum McDougall Exec. Producer, Casino Royale; Quantum of Solace.When you have all the filmmaking facilities under one roof the convenience and the control you have is invaluable. Beyond that, to work with the best craftsmen, best sculptors, painters and model makers in the world amazingly thats all under one roof too.Lloyd Levin Producer, United 93; Lara Croft Tomb Raider; Cradle of Life There really arent any stages in Hollywood that can accommodate a movie the size of a Bond picture.Barbara Broccoli Film Producer, James Bond Films41. Introduction (contd) Pinewood a British film and TV asset5Britain has a worldwide reputation as a fiscally attractive environment for filmmaking and with the government consulting on extending tax incentives for the creative industries, the demand for world-class studio facilities in the UK is set to increase significantly.

1. Introduction (contd)Illustrative recent productions6Recent film and TV productions that have used the Studios facilities include the 23rd James Bond film Skyfall(Eon Productions/MGM/Sony Pictures); Snow White and the Huntsman (Universal); Anna Karenina (Working Title Films/Universal); Prometheus (Fox); Dark Shadows (Warner Bros); The Magicians, Got To Dance and Sing If You Can.

1. Introduction (contd)Illustrative recent productions7

Home to some of the most successful features films and TV shows ever made...

1. Introduction (contd)Pinewoods facilities8The best quality sound stages and TV studios

1. Introduction (contd)Pinewoods facilities9A globally unique underwater filming stage

1. Introduction (contd)Pinewoods facilities10Catering for all types of shoots and all budgets, its UK Studios accommodate major national and international film production, filmed television, studio television recording, commercials, video games, pop promos and band rehearsals on its 34 stages, 10 TV studios and over 100 acres of backlot.

1. Introduction (contd) The Need to GrowThe significant economic contribution of Pinewood is acknowledged....but:There is increasing global competition so....Government supports the Film Industry with tax credits. Oxford Economics reports that every 1 of tax credits invested generates 12 of GDP. Therefore, the sector is highly valued as an economic contributor 11

1. Introduction (contd) The Need to Grow the site today12

1. Introduction (contd) How we Need to GrowPinewood has developed a 15-20 Year Growth StrategyIndustry experts, local businesses (including BBF) and the community are being consultedConsultations will inform future property requirements Options are being considered No housing to be included all growth to be targeted at production capacity13

Pinewood is determined to build on its rich heritage and invest in its exciting future to ensure that it remains at the heart of the global creative industries.2. Developing the case for expansion and the application current position 14The scheme in summary:Broadly doubling in production floorspaceExpansion offers the ability to handle four major productions at one time Additional media park and HQ accommodation for the sector

2. Developing the case for expansion and the application current position 15

The Pinewood landholding2. Developing the case for expansion and the application illustrative expansion plan16

2. Developing the case for expansion and the application current position The Planning case central proposition is that: There is a compelling case to demonstrate that very special circumstances exist for the much-needed growth and investment in Pinewood Studios to secure the future of the UK film and screen industry, which cannot be successfully achieved by any other alternative, and which are sufficient to clearly outweigh the harm caused to the green belt by reason of inappropriateness and all other harm. A number of substantial economic, cultural and other benefits will result from the development and material harm will arise from not facilitating its delivery. 172. Developing the case for expansion and the application current position (contd)Critical to the very special circumstances are:the economic case including the market need and expected impacts; andthe business case including what would happen without expansion. 18

2. Developing the case for expansion and the application current position (contd)The economic case is being informed by:surveys of Media Park tenants; production companies and employee/on-site workers;consultations - including with industry associations (19 including BAFTA; British Film Commission and British Film Institute and PACT);consultations with Heads of Physical Production in USA these are critical in that they represent the film core customers they decide where and how a film should be produced;

192. Developing the case for expansion and the application current position (contd)The economic case is being informed by:an opinion from PWC on current trends in the film and TV industry including what the critical factors are for locating production and Pinewoods position and potential; andopinions on and sign off of overviews of the UK film and TV sectors by key national industry leaders: TV - Tony Cohen CX of Freemantle TV;Film - Lord David Puttnam and Eric Fellner two leading producers.

202. Developing the case for expansion and the application current position (contd)Tax incentives and exchange rates are crucial; but the UK and Pinewood have other special advantages particularly:availability and depth of skills;established facilities and technologies;reputation and know how;industry collaboration; and proximity to London

21The economic case very special circumstances already identified from research and surveys:

2. Developing the case for expansion and the application current position (contd)UK capacity is already limited emerging demand for ever larger sound stages and ancillary facilities and is already exceeding supply;the emerging incentive for high end TV will boost demand to a level that will challenge UK capacity and Pinewood as to which customers to turn away;22The economic case very special circumstances already identified from research and surveys:

2. Developing the case for expansion and the application current position (contd) in the film sector, for example, inward investment in the UK has increased very significantly to c. 1.1bn in 2011 and employment risen to over 60,000 in recessionary conditions!!

23The economic case very special circumstances already identified from research and surveys:

2. Developing the case for expansion and the application current position (contd)The economic case current UK estimates of employment impacts:*

24Direct (on-site)Indirect, induced and widerTOTALExisting operations1,7003,0004,700Total after expansion3,7005,7009,400In addition to the above,:Pinewood contributes significantly to gross value added, exchequer contributions, exports and training opportunities. It purchases from local suppliers e.g. Buckinghamshire-based LIFE Build Solutions constructed The Richard Attenborough Sound Stage - one of the largest stages ever built. * Subject to revision as scheme plans are refined 2. Developing the case for expansion and the application current position (contd)Detailed financial modelling for a 20 year period is nearing completion and shows that Pinewood can increase its turnover and profitability from a sensitive expansion on adjacent greenbelt land. 25The business plan and case is in progress

3. BBF consultation questionTo meet the demands of growing film and TV markets, and in the face of global competition, Pinewood has to expand its operation. It faces significant planning policy challenges in achieving this because the only adjacent land available is in the Green Belt. While located in Buckinghamshire, Pinewood is a national facility of major significance to the UK economy. Securing its long term future through expansion in the Green Belt has to prove very special circumstances which outweigh the potential harm to Green Belt through inappropriate development. Assuming that Pinewood can provide compelling evidence for these very special circumstances, do you support the planned expansion of Pinewood?26