Nigerian Film Fund

1. Nigerian Film Fund The Nigerian Film Fund (NiFiFu) will tap into a developing billion pound market Partnership with BEN TV will create mutual benefits Ben TV will take a share in the company No cash investment required by Ben TV Investors will fund company A presentation by Berend Rah Financial and Technical director of NiFiFu Disclaimer: The recipient accepts that all information contained in this presentation is confidential and IP of Berend Rah and cannot be distributed or enacted into a business plan without prior permission by Berend Rah.

2. Top reasons to invest in Nigerian film industry: • Most film funds are closed to retail investors or depend on single production • Nigerian market is growing fast • Size at least £ ¼ Billion (2002) or more • Immature market (little improvements in production quality will make a huge difference in ROI) • Low production costs • Growing international interest • Big players only slow to corner market • Africa and Nigeria have their own stories to tell; Hollywood and Bollywood cannot satisfy this specific demand

3. Partnership with Ben TV • Ben TV will provide advertising in return for share in NiFiFu • Ben TV Advertising will reach • Investors (to invest in NiFiFu) • Video consumers • Enable brand recognition • Can be platform for further activities (casting actors, talent searches, contacts & co-operations etc) • No cash payments required • Ben TV benefits through profit share and cross advertising on video/film platform

4. Making an impact • Better quality productions • Low budget productions • Portfolio approach of at least 10 productions a year • Tap into International Market • Marketing/ advertising • Develop more efficient distribution systems

5. Quality productions • Use of professional HD equipment • Professional sound and lighting • Careful script selection and realisation • Exiting plot and characters • Defined within a genre • Opening shot and trailer are vital • Low location costs • Locations in UK and Nigeria • Audience can relate to story • Authenticity • Characters/ acting must convince • Production company, director and lead actors are all brands

6. The power of HD • Can be converted to any medium; VCD, DVD, Blu-ray or upconverted to 35 mm • Now the industrial standard • High quality matched by affordable price • Actual costs vary from £ 5000 (entry level equipment) to £ 100,000 (high end cinematic productions) also latter can be achieved for much less. • Cost is a one off and equipment counts technically as asset • Decent digital HD production suite should cost no more than £25,000 • Requires small insurance cost

7. Low budget productions • Is already Nigerian model BUT • Should not not equal low quality !!! • Quality can be substantially improved at little extra cost • Spreading enterprise risk by having many small productions • Positive return even on small scale distribution • Dictates disciplined approach

8. Portfolio approach • Winners cancel out the losers/ production risk is spread and not depending on single production • A single successful production could achieve very high return • Trying different approaches • Covering different genres • Creating brand value through production portfolio and steady production flow

9. International Market • Provides high returns • Efficient distribution channels • Covers a different and large audience • Higher product value • Can lead to 35 mm blow up • Requires high production standards • Is highly competitive but craves new ideas and different cultural perspectives • Nigerian are also consumers in this market

10. Marketing & Advertsing • People only watch films they have heard about • People only watch the whole film if first 5-10 min catch their attention • Films must stand out • Word of mouth is still important • Use of different media: TV, radio, print media, Internet • Different media reach different people • Viral marketing

11. Distribution • Inefficient distribution in Nigeria • Pirates skim off most proceeds • Efficiency can be improved • Adjustable flexible unit prices and fast distribution times • Key distribution partnerships • Direct distribution • Internet Distribution/ pay on demand services • Create direct relationship with customer through DVD/ CD adverts • Follow-on sales

12. Return on investment • Production costs from £ 10K to 50K • Marketing/ distribution costs £ 10K –50K • Sales of 100,000 VCDs in Nigeria = £ 50K (conservative estimate) • Sales of 10,000 DVDs internationally = £ 50K (conservative estimate) • ROI up to 500% (based on conservative estimates alone and lowest cost) • Figures can easily be pushed up higher • On tight budget yearly profit can be £ 800K (conservative estimate) • Fund size should ideally exceed £1 Mio to facilitate cash flow

13. Other income sources • Sale of adverts on DVD/CD • Consulting services to other film/ production companies • Partnerships • Temporary lending of HD equipment (if not in use) • Unused capital invested in high-interest paying deposit account

14. Directors expertise • Ken Otokoya, age 43 • Psychiatrist-turned actor • Successful acting career • Good at spotting talent and nurturing it • Good people skills • Understands what it takes to be a good actor and can mentor others • Good team player

15. Directors Expertise • Berend Rah, age 41 • Doctor-turned director • Financial acumen • Very business-minded • Understands technical and artistic process of film making • Keen supporter of HD • Good people skills • Innovative thinker

16. Company structure • Limited company on shares • Directors and Ben TV each hold • 20 % of share capital • Most profits are either re-invested into productions or partnerships or distributed back to shareholders if no otherwise required. • UK based • UK tax breaks • 10% of profits to Nigerian charity

17. Conclusions • NiFiFu offers unique chance for investors to participate in film industry and be within the most exciting film market • Nollywood 3rd biggest market • Ben TV creates leverage • Unique business model • High returns possible at a minimum of risk Disclaimer: The recipient accepts that all information contained in this presentation is confidential and IP of Berend Rah and cannot be distributed or enacted into a business plan without prior permission by Berend Rah.