Cinema exhibitors and companies in the digital media market are increasingly being confronted with the complexity of their investments assets and need of control over these assets. These challenges have prompted D2 to innovate the traditional financing solutions, resulting in the Cinema Refresh Solution (CRS). The Cinema Refresh Solution is a financing solution that has come into being in close cooperation with our customers and financial partners. Our solution offers you the best of both worlds: purchasing and financing (each with their own unique benefits) are bundled into a single solution. Because Cinema infrastructures have become increasingly complex over the years, most traditional financing methods now fall short.

The financial and operational management of the equipment is an absolute requirement. The Cinema Refresh Solution efficiently combines these two aspects with one another.

Cinema Refresh Solution is an innovative, possible off-balance-sheet form of financing that has been specially developed for organisations who want to maintain control over their investment budgets, but who also want sufficient flexibility to replace their assets according to the company needs and strategy. CRS in particular enables you to replace or expand parts of your asset portfolio at the times specified by you. The financial implications of your replacement and expansion strategy are proactively calculated with simulations. You thus gain an understanding of the costs in the short, medium and long term. As a result of this proactive financial control, operational flexibility and extensive reporting, CRS is a powerful instrument in reducing your Total Cost of Ownership and increasing the internal satisfaction of end users.

The basic principle of CRS is to develop a flexible and adjustable contract, in which all investments can be incorporated, and in which the management of the financing (financial strategy) and the management of the lifetime of the financed equipment (operational strategy) can be separated from one another.

The most important characteristics of CRS are:

• In tuning your IT investment priorities to the needs of your organisation;
• In determining the time to replace assets, without having to take account of the economic lifetime of the assets;
• In determining the end date of the lifecycle of your equipment. It is no longer dictated by the contract, but by your company requirements;
• In the regular adjustment of the rental payments, based on the financial strategy of your company.

• • Over the purchasing processes: you decide in complete freedom, when, from whom and what equipment you order;
  • Over the costs: the predictable rental payments guarantee you cost control. There is also budgetary stability. The costs remain unchanged, despite the technological evolutions of your portfolio;
  • Over the timing of investments and replacements. Technological innovations can now be attuned to the needs of your organisation.

·         As a result of the online asset reports: all assets covered by the contract are precisely mapped out, including the information relating to suppliers, purchase date, technical information, etc. All replacements and new investments are made visible;

·         As a result of the online budget reports: all invoicing data relating to the financed assets can be continually monitored. The costs attached to the financed assets can be mapped out, thereby assisting with the internal cost allocations.

The most important benefits of CRS are:

• Off-balance-sheet financing solution;
• Investment costs converted into operating costs;
• IAS/IFRS compliant financing solution (on request);
• Even spread of investment costs;
• Capital available for your core activities;
• Cash injection and mobilisation of capital in the event of Sale & Lease Back;
• Spread of VAT;
• Continual budget monitoring;
• Every half year, consultation with possibility to adjust the contract parameters;
• Possibility to make the costs visible per cost centre.

• One contract covering assets with different lifetimes;
• One invoice for the regular payment of the rents;
• A powerful tool for managing the assets, budgets and invoices;
• Asset registration to the charge of the integrator ð time saved by your employees;
• Supplier administration and supplier management to the charge of the integrator ð time saved by your employees;
• Allowed overlaps between new installations and removal of obsolete equipment, without extra costs.

• One central database for your asset management;
• Possibility to combine hardware, software and services into one contract;
• Easy monitoring of the age of the financed equipment, such that extended warranties can be avoided;
• The replacement of the assets is determined by you, and thus according to the needs and priorities of your company;
• You have the latest technology, without extra costs;

·         The economic obsolescence risk is to the charge of the integrator.