ALMIGHTY ONE SLIDE SHOW

A L M I G H T Y ONE, LLC.

M ENTERTAINMENT, LLC.One Market Street

Spear Tower, 36th FloorSan Francisco, California 94105


2014 - 2017 PortfolioInvestment Thesis & Production Company

September 5, 2013Confidential

2013. Confidential. All Rights Reserved. 2


Foreword:

On a stand alone basis, the expected returns of independent films and television series are generally difficult to predict.

The performance of a diversified portfolio, however, can be calculated within a relatively narrow range based on the historical performance of thousands of films and series released over the past decades.

Over the last 20 years, production studios have consistently generated ROIs in excess of 8% per year over the prevailing risk free rate.

M ENTERTAINMENT believes that a slate of movies and television series produced in Mexico for the Hispanic market (both, within the U.S. and throughout Latin America), can produce returns higher than those of the industry as a whole given the significantly lower production costs and the favorable market demographics, as further described herein.



M ENTERTAINMENT is bringing together Mexico’s top producers, directors and post-production houses to create original content for the underserved Hispanic film & television markets…



Investment Thesis




-

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

Historic & Projected Population in The Americas

Non-Hispanic Hispanic Origin

Source: The U.S. Census Bureau, Wikipedia, BlatantWorld.com

As of 2010, there were 50 million Hispanics living in the U.S. and over 530 million more throughout the Americas.

Over the next 35 years, nearly all of the population growth in the continent is expected to be Hispanic.

Hispanics represent nearly all the growth in our continent...



Hispanics have reached critical mass in most U.S. metropolitan areas...

San Francisco

25%

LA

48%

Phoenix

32%Dallas

30%

Chicago

23%

Miami

50%

New York

24%Denver

22%

Houston

37%

Hispanics are now either the majority, or a critical mass in most major metropolitan areas of the U.S.

Source: The Nielsen Company, 2011 TV Universe Estimates. HA18-49


U.S. Hispanics report the highest annual movie attendance per capita...

Caucasian African American Hispanic Other0

1

2

3

4

5

6

7

8

3.5 3.7

5.35

Per Capita Annual Attendance by Ethnicity

200920102011

Source: Motion Picture Association of America.

Over the past few years, Hispanics lead the pack attending movie theaters on average once every 2 months.



Hispanics represent 22% of all domestic tickets sold, figure growing every year...

2011 Domestic Ticket Sales

CaucasianHispanicAfrican Amer-icanOther

2011 Total Box Office: $10.2 billion2011 Total Moviegoers: 221.2 million2011 Total Admissions 1.3 billion


In 2011, Hispanics spent $2.8 billion at the domestic box office.




Mexico also represents a large & exciting market...

• 115 million people & growing strong• Ranks 6th in the world in film spectators• Ranks 11th in world’s box office revenue• 5,100 movie screens

0 2 4 6 8 10 12 14 16Japan China France U.K. India Germany Russia Australia South Korea Italy Mexico

Top International Markets(2012 Box Office in US$ Billion)

Source: Motion Picture Association of America & M ENTERTAINMENT estimates.



Film screens in Mexico have more than doubled in 10 years...

Source: Instituto Mexicano de Cinematografía.

2000

2001

2005

2006

2007

2008

2009

2010

2011

2012

0 1000 2000 3000 4000 5000 6000

Number of Screens in Mexico



Today, 2 companies control over 80% of the screens in Mexico…

Source: Instituto Mexicano de Cinematografía - Av. Insurgentes Sur No. 674, Colonia del Valle. Delegación Benito Juárez. México D.F. 03100. Teléfono 5448 5300

Box Office Attendance Screens Theaters0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

OtherCinemarkCinemexCinepolis

Mexican Exhibitors2012 Market Share


2007

2008

2009

2010

2011

2012

0 50 100 150 200 250 300 350

Mexican films U.S. films Other country films


The number of films exhibited in Mexico in recent years has remained stable…

Source: Instituto Mexicano de Cinematografía - Av. Insurgentes Sur No. 674, Colonia del Valle. Delegación Benito Juárez. México D.F. 03100. Teléfono 5448 5300

Films by Origin



The Mexican box office is growing at an attractive rate…

2007

2008

2009

2010

2011

2012

0 100 200 300 400 500 600 700 800 900 1000

Mexico’s Gross Box OfficeMillion US$

Source: © Instituto Mexicano de Cinematografía - Av. Insurgentes Sur No. 674, Colonia del Valle. Delegación Benito Juárez. México D.F. 03100. Teléfono 5448 5300



Film distribution is fragmented...

Source: M ENTERTAINMENT, LLC.

214

131

121

111105

100

75

73

42

3831

232220

2007-2012 Titles Released by Distrib-utor

Gussi

Videocine

Fox

Sony

WB

UPI

Disney

PPI

Zima

Quality

Alphaville

Corazon

Cinemas

Azteca

Tier 1



With many foreign and domestic players...

14

11

10

9

665

4

4

3

3

3

3

22

22

2 11111111

2007-2012 Titles Released by DistributorFilm HouseDavidMACBVICananaImcineMercamediaCielMV FilmsArthouseCosmoFantasticTarantulaCannaDCNDecineNat'l GeoStarCinetecaCoronaDistribucineDistributionGabrielLatinaMediaquestUrban Fest

Tier 2

Source: M ENTERTAINMENT, LLC.



Home grown content in Mexico has lots of room to grow...

• Despite having very strong cultural traits, the Mexican market mostly watches foreign productions subtitled or dubbed into Spanish.

• Only a handful of domestic films can compete with U.S. and foreign productions. The principal limiting factors have been lack of capital and international appeal.

• Prime time television is dominated by low quality soaps produced by the market’s duopoly. Recently however, the market is increasingly looking for alternatives.

• Domestic and international sports make up most of the weekend programming.

• Telmex could disrupt the status quo with a VOD alternative. It is however lacking original content (with similar situations developing for Netflix, YouTube and other VOD players).


Latin America is poised for continued growth...

Latin America represents the fastest growing market in the world.

Latin America, excluding Mexico, adds roughly another 5,000 screens and nearly $2 billion in annual Box office sales.


% Change

11 vs. 10

% Change 11 vs.

07

U.S. & Canada -4% 6%Europe, M. East &

Africa 4% 24%

Asia Pacific 6% 38%

Latin America 24% 86%

Total 7% 35%


2007 2008 2009 2010 2011$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

Latin America Box OfficeBillion of US$


In 2011, all Hispanic markets combined reached nearly $5 billion in box office sales...

2011 Hispanic Box Office(US $4.85 billion)

U.S. Hispanic Market

Mexican Market

Rest of Latin America

Source: Motion Picture Association of America.2013. Confidential. All Rights Reserved. 19


Hollywood blockbusters are well received by Hispanics...

Top 10 Movies by gross box office in Mexico:

Movie Title Distributor Gross Mexico Release Date Release Year

The Avengers (2012) Disney $61,748,523 27-Apr 2012

Toy Story 3 Disney $59,382,044 18-Jun 2010

Ice Age: Continental Drift Fox $46,845,581 28-Jun 2012

Avatar Fox $44,229,043 17-Dec 2009

Ice Age: Dawn of the Dinosaurs Fox $39,389,248 3-Jul 2009

Spider-Man 3 Sony $36,846,766 4-May 2007

Harry Potter and the Deathly Hallows (Part Two) WB $34,163,720 15-Jul 2011

The Dark Knight Rises WB $31,845,456 27-Jul 2012

Alice in Wonderland (2010) Disney $31,347,734 5-Mar 2010

Transformers 3 PPI $30,502,854 1-Jul 2011


(2007 to 2012)


Mexican productions can do well too, but they are few and often lack funding & international distribution...

Top 10 “Mexican” Movies by gross box office:

Movie Title Distributor Box Office (US$) Release Date Release Year

Y tu Mama También Warner Sogefilms $33,616,692 8-Jun 2001

El Crimen del Padre Amaro CP $26,996,738 16-Aug 2002

La Misma Luna Fox $23,311,391 20-Mar 2008

Amores Perros Nu Vision $20,908,467 16-Jun 2000

Don Gato y su Pandilla Sherlock Films $15,066,652 22-Jun 2011

Una Película de Huevos Videocine $12,597,788 21-Apr 2006

Rudo y Cursi UPI $11,091,868 19-Dec 2008

Kilómetro 31 Videocine $10,963,219 2-Feb 2007

No eres Tú Soy Yo WB $9,918,017 27-Aug 2010

Otra Película de Huevos y Un Pollo Videocine $8,583,678 20-Mar 2009

TOTAL $173,054,510


(2000 to 2012)


Many of Mexico’s most successful films have been produced with budgets of less than $5 million


Movie TitleProduction Budget

(US$)Y tu Mama También $5,000,000 El Crimen del Padre Amaro $1,800,000 La Misma Luna (est.) $5,000,000 Amores Perros $2,400,000 Una Película de Huevos $1,420,000 Kilómetro 31 $5,000,000

For example...

Note: Production costs of remaining Top 10 were not published. M ENTERTAINMENT believes none exceeded $5 million.


Production Company



ALMIGHTY ONE, LLC. (the “Company”)

The Company will produce a multi-genre portfolio of feature films and television series capable of engaging and inspiring Hispanic audiences in the U.S. and throughout Latin America.

The Company will also be responsible for all activities related to the commercialization of its portfolio, including the negotiation of upfront minimum guarantee contracts and the execution of licensing and distribution agreements throughout the portfolio’s useful life.

The manager of the Company is M ENTERTAINMENT, LLC.


Mission:To convey engaging stories that uplift the human spirit.

Vision:To spearhead a renaissance of independent film and television making in Latin America.

Objectives:(i) To produce a commercially successful portfolio that showcases Hispanic history, culture and folklore, and (ii) to maximize the returns generated by such portfolio by licensing its commercial rights.

ALMIGHTY ONE, LLC.



Our team understands the Hispanic market and looks forward to utilizing its talent and resources to produce a commercially successful portfolio with a pan-regional appeal.


The 2014 – 2017 Portfolio:

Over the next 4 years, the Company seeks to produce:

At a combined cost of $78 million U.S. dollars, budget that takes into consideration the substantially lower production costs and the pulling of post-production resources.


12 Feature

Films

Multiple genresMedian. cost of $5

Mil.

3TV

Series

@ 13 episodesMultiple genresAvg. cost of $2

Million


Portfolio content guidelines:


We welcome films with universal themes adapted into storylines that Hispanic audiences identify with.

Stories that evoke fundamental human virtues, such as family, friendship, honor, spirituality, life wisdom.

From emerging Latin American writers covering current affairs to proven classics adapted into screenplays.

Emphasizing depth of characters over action scenes and visual effects.

Averaging production costs that mimic the top grossing Hispanic films, at around $5 million dollars.

Diversifying portfolio through multiple genre selection.Selection process: Combined oversight of portfolio selection process.

Candidates identified by the Manager and presented to the Advisory Board.

Anticipated script development of up to 12 months based on advisory input.

Co-producers must contribute a minimum of 20% of total production budget.

Minimum production of 7 films and 1 television series based on minimum closing amount (see Term Sheet).


Portfolio assets:

A short list of films and television series have passed our initial criteria, ranging from $2 to $9 million.

Actual budgets, production timelines and expected release are subject to our initial closing.

Many other films and series are currently being screened, with an ample pool of candidates across multiple genres and budgets.



Expected Box Office performance:


$450 million

Worldwide gross Box Office:

Expected total portfolio performance, including other film-revenue and television series projections, available on a separate Excel spreadsheet.


The Company will offer qualified investors an opportunity to purchase Class A and Class B Membership Interests in the minimum aggregate amount of forty five million U.S. dollars ($45,000,000) and up to the maximum aggregate amount of seventy seven million five hundred thousand U.S. dollars ($77,500,000) in Units of $500,000 each with a minimum investment of one Unit.

A Term Sheet further describing the offering is available upon request. For further information please contact: [email protected]

Investment opportunity:


Appendix A

Luis MandokiLuis is an acclaimed Mexican director with a prolific career that spans four decades. His films have earned Oscar nominations and several international awards.

Alexander Kitman Ho Alex is an experienced filmmaker, known for blockbusters features produced in association with Oliver Stone.

Manuel Monroy PetersenManuel is a former partner and managing director at McKinsey & Co.

Manuel Monroy NoriegaManuel is the founder of M ENTERTAINMENT and has 20 years of experience in corporate finance and strategic planning.

Alejandro Ramirez MagañaAlejandro is the President and CEO of Cinépolis, Mexico’s largest exhibitor, with over 205 multiplexes (approx. 3,000 screens) covering most of the country.

Roberto SneiderRoberto is the Founder and President of La Banda Films, a production company based in Beverly Hills, CA., serving the U.S. Hispanic market. He is also an acclaimed Director and Oscar nominated producer.

Alfonso Cuarón Alfonso is an acclaimed Mexican film director, screenwriter, producer and editor, best known for his films Harry Potter and the Prisoner of Azkaban (2004) and Pan’s Labyrinth (2006).

Anna RothAnna is an experienced production manager. She has worked in several capacities over a period of 25 years. She is well known for her work as second unit director in Titanic (1997).

Ivar Axel GundersenA graduate of the London International Film School, Ivar has provided advisory and consultancy services in motion picture finance, production and distribution for Investment Banks and private investors.

Javier de la Calle PardoFrom 2007 to 2012 Javier served as CEO of IXE Banco, a retail bank designed to serve Mexico’s affluent class.

Jorge Rangel de AlbaJorge is the President of CI Banco Institucion de Banca Multiple, a regional retail bank established in 1984 with 137 branches across Mexico’s most important cities.

Mónica Lozano SerranoMónica is a Mexican executive producer with over 17 years of experience in the industry. Since 2002, she has produced or co-produced 27 feature films, including some of Mexico’s top grossing films.

Lisa Frodsham SpallaLisa is an Emmy-nominated producer and TV executive with over 20 years of experience working in Hollywood.

Pedro Langre RosadoPedro is the appointed CEO in Mexico of Oxford Leadership Academy, an international organization that provides leadership and executive development programs.

Rodrigo GarciaRodrigo is an accomplished film and television director. He is also the son of Colombian writer Gabriel García Márquez (1982 Nobel Prize in Literature) and of Mercedes Barcha Pardo.

Jose Luis Garza AlvarezJose Luis is the CEO of Interjet, Mexico’s largest low-cost airline.

Manager & Advisor Bios:

Date post:	12-Nov-2014
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