OASIS FILM FUND www.oasisfilmsfund.com FOR INFORMATION ONLY This memorandum is a business plan. It is not an offering for sale of any securities of the company. It is for your confidential use only and may not be reproduced, sold or redistributed without the prior approval of Oasis Films Fund or Forecast Pictures. www.oasisfilmsfund.com Forecast Pictures © 2009 Why a Film Fund ? Oasis Films Fund: A sustainable and profitable investment fund in international movie production ; a high IRR A chance to develop the Middle East film industry by bringing international productions to the region A tool for promoting Arab cinema and Arab culture throughout the World www.oasisfilmsfund.com Forecast Pictures © 2009 PROMOTING ARAB CINEMA AND LOCAL INDUSTRY Oasis Films Fund goal is to develop a profitable, sustainable slate of Films which will contribute shaping the Arab movie industry of tomorrow. By focusing on two types of films, Oasis Films Fund is a highly profitable investment: Highly commercial films (in the like of Indiana Jones, Tomb Raider, Fast & Furious, Ocean’s Eleven, …) to be shot in Arab countries, respecting the Arab culture and to be exploited across the world. These will be staring highly recognizable international talent and directors: international comedies, heist and action-movies, love-stories, … exemples of proposed films for the Fund : Friends & Money, Lost Gospel, Hard Drive, … English speaking commercial films inspired by the Pan-arabic culture in the like of The Message, Lawrence of Arabia, The Kite Runner, … exemples of proposed films for the Fund : Ibn Battuta, Ali Baba, … www.oasisfilmsfund.com Forecast Pictures © 2009 Hollywood’s productions have helped convey a positive image of America across the world for the last 50 years. In a similar way, Oasis Films Fund will participate in forging a more positive image of the Arab World and culture, like recent movies did for others, such as : Australia, Mamma Mia!, Amelie Poulain, Da Vinci Code, Sex In the City, … This will counterpart the caricatural image conveyed too often by Hollywood movies today (Iron man, Body of lies, Vantage point, …). By bringing international productions helmed by experienced directors / producers to the region, Oasis Films Fund will help develop the skills of local technicians & professionals, who will in turn be able to teach their pairs. The films produced by Oasis Films Fund: . will have no strong political, religious or controversial content: they will be mainstream commercial movies; . will not denigrate Arab identity and will highlight its many cultural assets; . will involve, when possible, Middle-Eastern directors / writers with international track-record. www.oasisfilmsfund.com Forecast Pictures © 2009 1. Benefit of foreign crew training 1. Superb exposure for Middle- local crews and upgrading the Eastern countries, increasing their quality of the local service, appeal for the international bolstering the film industry in the audience: this « advertising » will Middle East. generate millions of qualified contacts through moviegoers, DVD 2. Establish a long-term relationship buyers and TV audiences through with foreign producers and the world. attract them to shoot international movies in the region. 2. Putting the Middle East amidst the hottest film places in the world, with a flourishing media industry and an international appeal to filmmakers and producers. www.oasisfilmsfund.com Forecast Pictures © 2009 . International Heads of Departments . Over time the Fund will set a proper brought to the region will be dubbed local office and production facility: with local crews in order to train them: local crews and employees will be trained on the movies by the worlds’ - director of photography, finest professionals. - set designer, set designer & construction manager, - sound & lighting departments, - make-up, hairdresser, costume-designer, . Oasis Films Fund will ensure talent stunts, SFX, … scouting through the Middle East in - editor, order to find and train the high - line producer, production coordinators, accountants, … potential individuals. In the long term, increasing use of local heads of departments and diminushing of foreign ones brought on locations. www.oasisfilmsfund.com Forecast Pictures © 2009 1. Over the course of the films shot in the region, Oasis Films Fund will invest and buy equipments instead of renting them. 2. Through these investments Oasis Films Fund will make available to the local movie industry an up to date and competitive equipment of international standards. 3. The availability of these equipments will help train local talents, when not used by international productions. These equipments, available locally, will stimulate the local productions and make them more cost-effective in the future, ... www.oasisfilmsfund.com Forecast Pictures © 2009 STRUCTURE OF OASIS FILMS FUND Oasis Films Fund will participate in the financing of a slate of 10 to 15 internationally commercial movies suitable for theatrical release worldwide. Oasis Films Fund’s rationalized investment model and decision making process will guarantee minimum risks for maximum profitability. Oasis Films Fund is raising $80 millions, to be able to finance more than $ 400 million worth of international movie production (over 2 cycles and within 7 years). www.oasisfilmsfund.com Forecast Pictures © 2009 Average 60% of Remaining of the financing provided by a combination of: the financing of each Film is Bank facility (up to 20% of the budget of each film); guaranteed by Presales, including pre-negotiated deals in key Oasis Films Fund, acting as a territories; combination of: Soft moneys (combination of : tax breaks, local and - super-gap regional incentives, coproductions, …). - equity -- discount of soft- moneys and presales $80 M $160 M Investment will $80 M Production Bank Gap, range from 30% Oasis Films slate per Presales and to maximum 70% Fund investment of the budget of Soft Monies cycle each Film. Business model provides over 2 investment cycles over a total period of 7 years www.oasisfilmsfund.com $80 M equity to finance over $400 M worth of International Movie Productions over 7 years : Secured Spread Risk Short Lifecycle Driven by professionals • Oasis Films Fund recoups • Risk spread over slates of • Potential distribution of • Creative control and input by right after the bank (when movies with various profiles overages to investors as soon internationally recognized applicable) and before any • Already developed and as year three (after first management team. other participant from all secured, ready to go in cycle). • The investment policy is revenues from the world, production, all with A-class • Revolving fund with a supported by an excluding the few territories talent. preapproved liquidation economically rational pre-sales necessary to the procedure at end of a investment model and each financing of each film. maximum of 7 years. investment can only be made • Secured through the within predefined criteria. ownership of the physical • 100% of the fund invested property of each Picture. directly in the Productions • Enhanced value of Pan-Arab and 0% in companies exploitation of the movies overheads. produced, compared to other international movies www.oasisfilmsfund.com Forecast Pictures © 2009 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Overages from films from 1st slate Recoupment of Target Initial films from 1st scenario Investment slate Second Round Recoupment of films Overages from films from 2nd slate of investment from 2nd slate Overages from films from 1st slate Medium Initial Recoupment of films from 1st slate Scenario Investment Second Round Recoupment of films from 2nd slate of investment Low Initial Recoupment of films from 1st slate Scenario Investment www.oasisfilmsfund.com Forecast Pictures © 2009 Network of • A network of companies collecting the investors’ funds from various collecting companies set in investment North America, Europe and Middle East, … tailor-made upon the investors’ needs companies Collecting • After the initial investment in the movies, all revenues collected are going through a third party reliable collection account company • Major collection company of the fund for the investors set in Barhein for tax-efficiency • S et in Europe and USA, where most of the films’ commitments will take place Management • 2,5% management fee of the fund • 1% towards securing material and development of properties for the Fund’s production slate (recouped with a Premium inside the budget of the movies , when produced) • First, in absolute first position, 100% of revenues go towards recoupment of 110% of the investment Split of made by the investors • Then, the net profits are shared: revenues • 80% to the investors, as upside • 20% to the funds’ management, as its success-bonus www.oasisfilmsfund.com Forecast Pictures © 2009 Being a steady source of financing for the international movie-industry, OASIS Films Fund will quickly become a brand. Thus attracting more commercial projects and giving more leverage to reach higher level of talents. This will also be an opportunity for investors to communicate around the film industry. Thus investors are given special possibilities to use the Films coproduced by the fund for their own benefit: Ability to use visual Possibility of organizing First-look on all projects One Company Credit environment of the private specific from Forecast Pictures for the fund for each movies for Investor’s premiere screenings of and other major movie. Company