Videndum PLC · LSE:VID
Videndum — The Vitec Group — Investor Day (October 2009)
68 slides from Videndum's investor day presentation, Oct 22, 2009
Slide 1: The Vitec Group plc Strategy Day
The Vitec Group plc Strategy Day 22nd October 2009
Slide 2: Agenda
Page 2 Agenda Financial profile Richard Cotton Interview with the CEO Stephen Bird Market opportunities (Videocom & Services) Joop Janssen, Jerry Gepner, Martin Green & Steve Shpock Product demonstration (in the studio) Market opportunities (Imaging & Staging) Francesco Bernardi, Marco Pezzana The V
Slide 3: Financial profile
Page 3 Financial profile Cautionary statement – Statements made in the this presentation may contain forward looking statements that are subject to risk factors associated with, amongst other things, the economic and business circumstances occurring from time to time in the countries and sectors in
Slide 4: Financial Profile: Background
FINANCIAL PROFILE Page 4 Financial Profile: Background Sustained revenue and earnings growth through to 2008
Slide 5: Financial Profile: Segmentation
FINANCIAL PROFILE Page 5 Financial Profile: Segmentation US is the largest market
Slide 6: Financial Profile: Operations
FINANCIAL PROFILE Page 6 Financial Profile: Operations 2002 2008 Factories 19 16 ongoing / 8 acquired Group Revenue per Employee £123k £153k Low cost country Direct Employees* 15 119 % of Cost of Sales Outsourced* 5% 18% *based on unaudited management estimates Flexibility to further develop low cos
Slide 7: Financial Profile: 2009 – H1
FINANCIAL PROFILE Page 7 Financial Profile: 2009 – H1 H1 2009 H1 2008 CER £m £m % Revenue 160.8 159.1 1.1% (19.2%) Operating profit* 11.0 18.8 (41.5%) (61.9%) PBT* 10.2 17.3 (41.0%) (62.9%) Adjusted basic earnings per share* 16.3p 27.5p (40.7%) (62.5%) Cash generated from operations 13.5 7.1 £6.4m N
Slide 8: Brand Presentation
BRAND PRESENTATION Page 8 VITEC GROUP Capture the moment” “<= y ~~ jy ~~ y ~~ VITEC VITEC VITEC GROUP Videocom Division GROUP Services Division GROUP Imaging & Staging Division
Slide 9: Strategy: Videocom Division
Page 9 Strategy Videocom Division Joop Janssen (Divisional CEO)
Slide 10: Overview
VIDEOCOM DIVISION Page 10 Overview Markets Broadcast & Film Business & Industry Military, Aerospace (B&I) and Government (MAG) Market size £300m £195m £640m Vitec £139m* £35m* £7m *Includes revenue from Litepanels on a full year basis The Videocom division operates principally in 3 markets
Slide 11: Overview
VIDEOCOM DIVISION Page 11 Overview Markets Broadcast & Film Business & Industry Military, Aerospace (B&I) and Government (MAG) Market size £300m £195m £640m Vitec £139m £35m £7m
Slide 12: Broadcast and Film equipment
VIDEOCOM DIVISION Page 12 PRODUCT BRANDS Broadcast and Film equipment Supports Sachtler Vinten Vinten Radamec Supports Mobile Power Microwave Lighting Comms OConnor Systems Bags Petrol Bags Lighting Litepanels Sachtler Anton / Bauer Mobile Power Anton / Bauer Prompters Autoscript Communications Clea
Slide 13: Broadcast and Film equipment
VIDEOCOM DIVISION Page 13 PRODUCT BRANDS Broadcast and Film equipment Supports Sachtler Vinten Vinten Radamec Supports OConnor Bags Petrol Bags Lighting Litepanels Sachtler Anton / Bauer Mobile Power Anton / Bauer Prompters Autoscript Communications Clear-Com Microwave Systems Nucomm RF Central Micr
Slide 14: Broadcast and Film equipment
VIDEOCOM DIVISION Page 14 PRODUCT BRANDS Broadcast and Film equipment Supports Sachtler Vinten Vinten Radamec Bags OConnor Bags Petrol Bags Lighting Litepanels Sachtler Anton / Bauer Mobile Power Anton / Bauer Prompters Autoscript Communications Clear-Com Microwave Systems Nucomm RF Central Microwav
Slide 15: Broadcast and Film equipment
VIDEOCOM DIVISION Page 15 PRODUCT BRANDS Broadcast and Film equipment Supports Sachtler Vinten Vinten Radamec Lighting OConnor Bags Petrol Bags Lighting Litepanels Sachtler Anton / Bauer Mobile Power Anton / Bauer Prompters Autoscript Communications Clear-Com Microwave Systems Nucomm RF Central Micr
Slide 16: Broadcast and Film equipment
VIDEOCOM DIVISION Page 16 PRODUCT BRANDS Broadcast and Film equipment Supports Sachtler Vinten Vinten Radamec Mobile Power OConnor Bags Petrol Bags Lighting Litepanels Sachtler Anton / Bauer Mobile Power Anton / Bauer Prompters Autoscript Communications Clear-Com Microwave Systems Nucomm RF Central
Slide 17: Broadcast and Film equipment
VIDEOCOM DIVISION Page 17 PRODUCT BRANDS Broadcast and Film equipment Supports Sachtler Vinten Vinten Radamec Prompters OConnor Bags Petrol Bags Lighting Litepanels Sachtler Anton / Bauer Mobile Power Anton / Bauer Prompters Autoscript Communications Clear-Com Microwave Systems Nucomm RF Central Mic
Slide 18: Broadcast and Film equipment
VIDEOCOM DIVISION Page 18 PRODUCT BRANDS Broadcast and Film equipment Supports Sachtler Vinten Vinten Radamec Communications OConnor Bags Petrol Bags Lighting Litepanels Sachtler Anton / Bauer Mobile Power Anton / Bauer Prompters Autoscript Communications Clear-Com Microwave Systems Nucomm RF Centra
Slide 19: Broadcast and Film equipment
VIDEOCOM DIVISION Page 19 PRODUCT BRANDS Broadcast and Film equipment Supports Sachtler Vinten Vinten Radamec Microwave Systems OConnor Bags Petrol Bags Lighting Litepanels Sachtler Anton / Bauer Mobile Power Anton / Bauer Prompters Autoscript Communications Clear-Com Microwave Systems Nucomm RF Cen
Slide 20: Broadcast and Film market categories
VIDEOCOM DIVISION Page 20 Broadcast and Film market categories Broadcast Market Market Vitec Vitec competitive size (£m)* CAGR (%)* position* advantages Supports** 120 2 1 Installed base, highest quality products, brand name, global distribution Mobile Power 20 2 1 Highest quality products, brand na
Slide 21: Broadcast and Film market drivers
VIDEOCOM DIVISION Page 21 Broadcast and Film market drivers * Advertising expenditure Main business model for broadcasters TV remains #1 advertising medium: 35% of total ad spend TV ad revenues:* Fall of 11% (09 vs 08) CAGR 3% (09-13) HD transition (only 30% complete) and potentially 3D Significant
Slide 22: Broadcast and Film key strategies
VIDEOCOM DIVISION Page 22 Broadcast and Film key strategies Supports Maintain premium market position and share in mainstream product lines Expand automated/robotic camera support Continue to grow market share in bags, prompters Grow spares / support business Mobile Power Maintain premium market pos
Slide 23: Litepanels
Page 23 Litepanels i Emmy Award for proprietary lighting systems
Slide 24: Overview
VIDEOCOM DIVISION Page 24 Overview Markets Broadcast & Film Business & Industry Military, Aerospace (B&I) and Government (MAG) Market size £300m £195m £640m Vitec £139m £35m £7m
Slide 25: B&I market categories
VIDEOCOM DIVISION Page 25 B&I market categories Broadcast Market Market Vitec Vitec competitive size (£m)* CAGR (%)* position* advantages Supports 60 6 1 Highest quality products, brand name Mobile Power 30 3 3 Highest quality products, brand name Microwave Systems 10 6 1 Highest quality products Br
Slide 26: B&I market drivers
VIDEOCOM DIVISION Page 26 B&I market drivers Proliferation of content consumption and creation Digital and cost effective production technologies Increase in video-enabled broadband and mobile devices Growth in independent content producers and owners Increase in sports, concerts and other live ente
Slide 27: B&I key strategies
VIDEOCOM DIVISION Page 27 B&I key strategies Expanding distribution into new vertical markets, eg education and corporate Specific new product introductions addressing needs of independent cameraman Extensive ‘show and tell’ of the unique technologies such as microwave systems, LED lighting and VoIP
Slide 28: Overview
VIDEOCOM DIVISION Page 28 Overview Markets Broadcast & Film Business & Industry Military, Aerospace (B&I) and Government (MAG) Market size £300m £195m £640m* Vitec £139m £35m £7m* *Market size is addressable market for Microwave systems. Vitec are 2008 sales by all Videocom businesses in the MAG mar
Slide 29: MAG equipment - law enforcement
VIDEOCOM DIVISION Page 29 MAG equipment - law enforcement Airborne Transmitter Rugged Portable Transmitter RECEIVER TYPES Hand-held Mobile Command Center Portable
Slide 30: MAG - relevant market categories
VIDEOCOM DIVISION Page 30 MAG - relevant market categories Market Market Key size (£m)* CAGR (%)* drivers Law enforcement 280 10 Improving situational awareness of police eg during disasters Military vehicles Minimising loss of life by recognising threats (manned and 200 10 and deploying troops more
Slide 31: RF Extreme (RFX) capabilities in the MAG market
VIDEOCOM DIVISION Page 31 RF Extreme (RFX) capabilities in the MAG market Market requirements RF Extreme’s competence Highest video quality with robust reception Technology superiority Compact design solution Gaining significant traction with $10m+ orders Corporate track record in first year 150+ ma
Slide 32: MAG key strategies
VIDEOCOM DIVISION Page 32 MAG key strategies Law enforcement Success to date Expand initial wins to other police departments Police forces in Houston, Jefferson Texas, around the US and win a portion of Auction 66 tender Broward Florida & G20 Summit (Pittsburgh, multiple police helicopters) Military
Slide 33: Videocom summary
VIDEOCOM DIVISION Page 33 Videocom summary Market size Market Strategy £m* CAGR (%)* Maintain premium market position and share Broadcast and Film 300 2-3 Grow microwave systems (non US), lighting and robotics Develop specific products focussed on needs Business and Industry 195 11 of the independen
Slide 34: Videocom summary
VIDEOCOM DIVISION Page 34 Videocom summary Market size Market Strategy £m* CAGR (%)* Maintain premium market position and share Broadcast and Film 300 2-3 Grow microwave systems (non US), lighting and robotics Develop specific products focussed on needs Business and Industry 195 11 of the independen
Slide 35: Videocom summary
VIDEOCOM DIVISION Page 35 Videocom summary Market size Market Strategy £m* CAGR (%)* Maintain premium market position and share Broadcast and Film 300 2-3 Grow microwave systems (non US), lighting and robotics Develop specific products focussed on needs Business and Industry 195 11 of the independen
Slide 36: Strategy: Services Division
Page 36 Strategy Services Division Jerry Gepner (Divisional CEO)
Slide 37: Overview
SERVICES DIVISION Page 37 Overview Markets Broadcast Market size £255m Vitec £29m The Services division currently focuses on the Broadcast market
Slide 38: Services
SERVICES DIVISION Page 38 Services Equipment Rentals Bexel Broadcast Equipment Rentals Used Equipment Sales Bexel Broadcast Video Gear Major Event Systems Bexel Broadcast Services Professional Audio Services & Sales Audio Specialties Group Fiber Optic Solutions Bexel Fiber Services
Slide 39: Services market categories
SERVICES DIVISION Page 39 Services market categories Market Market Vitec Vitec competitive size (£m)* CAGR (%)* Position* advantages Reputation for handling large events flawlessly. Large Events and 45 2 1 (US) Close relationships with major networks. Strong System Rentals relationships with major t
Slide 40: Services strategy
SERVICES DIVISION Page 40 Services strategy Continue to focus on major events Olympics 2010 and 2012 PGA Golf Olympic Broadcast Services Grand Slam Tennis AMPAS / Academy Awards Reality Television Bring core capabilities to new type of client Sony Calrec NFL Act as ambassador for Group products Lite
Slide 41: Strategy: Imaging & Staging Division
Page 41 Strategy Imaging & Staging Division Francesco Bernardi (Divisional CEO)
Slide 42: Imaging & Staging Division - overview
IMAGING & STAGING DIVISION Page 42 Imaging & Staging Division - overview Markets Imaging: Staging: Photographic Trusses & & Video Stage Systems Accessories Market size £830m £140m Vitec £79m* £21m* *Vitec sales excluding intercompany sales, (imaging Distribution) and IFF Our primary focus is on Imag
Slide 43: Imaging Division equipment
IMAGING & STAGING DIVISION Page 43 PRODUCT BRANDS Imaging Division equipment Supports Gitzo Manfrotto Avenger IMAGING STAGING Bags Kata National Geographic Manfrotto Distribution Manfrotto Distribution Staging Brilliant Stages Tomcat Litec
Slide 44: Imaging & Staging Division - overview
IMAGING & STAGING DIVISION Page 44 Imaging & Staging Division - overview Markets Imaging: Staging: Photographic Trusses & & Video Stage Systems Accessories Market size £830m £140m Vitec £79m* £21m* *Vitec sales excluding intercompany sales, (imaging Distribution) and IFF The division currently focus
Slide 45: Imaging equipment
IMAGING & STAGING DIVISION Page 45 Imaging equipment SUPPORTS BAGS LIGHTING
Slide 46: Imaging market categories
IMAGING & STAGING DIVISION Page 46 Imaging market categories Market Market Vitec Vitec competitive size (£m)* CAGR (%)* position* advantages Installed base, highest quality and innovative Supports 270 5 1 products, brand name, global distribution Bags 345 2 6 Highest quality and innovative products,
Slide 47: Imaging market drivers
IMAGING & STAGING DIVISION Page 47 Imaging market drivers Sources: 2004-8: CIPA; Digital SLR unit sales 2009-12: GfK SLR volumes: 10m units pa Digital SLR volume (000s of units) Continuing to grow: 6% CAGR 09-12 (units) 14000 12000 Fastest growing segment: < 500 price point. 16% 10000 CAGR 09-12 (un
Slide 48: Existing strategy
IMAGING & STAGING DIVISION Page 48 Existing strategy Maintain existing No. 1 Professional market position and margins Maintain market position with professionals Geographical expansion of own distribution The non-professional market is larger and growing faster We want to capitalize on the non-pro m
Slide 49: Opportunities: Manfrotto Powerbrand
IMAGING & STAGING DIVISION Page 49 Opportunities Manfrotto Powerbrand
Slide 50: Non-pro market
IMAGING & STAGING DIVISION Page 50 Digital SLR volume (000s of units) Non-pro market Non-pro consumer upgrading to SLR is fastest DSLR sales to non-pro consumer is the fastest growing segment (source GFK) Need for and benefit of accessories not yet fully understood Tripod penetration among SLR owner
Slide 51: Consumer research
IMAGING & STAGING DIVISION Page 51 Consumer research Self categorised interest in taking photographs 65% of the UK population are interested in taking photographs fairly frequently, but not at the serious Hobbyist or professional level It’s a bit of a hobby for me Hobbyist 14 Like to get 19 Improvin
Slide 52: Consumer research
IMAGING & STAGING DIVISION Page 52 Consumer research Self categorised interest in taking photographs Interest in getting any accessories Omnibus survey: Screening process for main survey: 65% of the UK population are keen or 80% of respondents who generally qualified had interested in taking photogr
Slide 53: Non-pro accessories market attractiveness
IMAGING & STAGING DIVISION Page 53 Non-pro accessories market attractiveness Market requirements Manfrotto’s competence Existing market Manfrotto brand authority as market leader in Strong brand pro photo/video accessories Explain benefit. Management experience in consumer market Muted market Adapt
Slide 54: Non-pro accessory strategy
IMAGING & STAGING DIVISION Page 54 Non-pro accessory strategy Grow Manfrotto brand by leveraging its strength Into adjacent products Into non-pro segments/channels Increase penetration of accessories By explaining better the product benefits Products: Channels: Benefits: - Non pro tripods - Mass / C
Slide 55: Consumer research
IMAGING & STAGING DIVISION Page 55 Consumer research Consideration of Manfrotto % before having seen product ranges … % … after having seen product ranges % Top 2 box 22 81 6 Source: Q32: Quantitative study Knowing a bit more about the brand Manfrotto now – how do you feel about buying a Manfrotto p
Slide 56: Imaging strategy
IMAGING & STAGING DIVISION Page 56 Imaging strategy Maintain existing No. 1 Professional market position and margins Maintain market position with professionals Geographical expansion of own distribution Enter new consumer segments leveraging Manfrotto brand
Slide 57: Imaging and Staging summary
IMAGING & STAGING DIVISION Page 57 Imaging and Staging summary Market size Market Strategy £m* CAGR (%)* Professional photo and video 375 2 Maintain premium market position and share Develop Manfrotto as powerbrand with integrated Non-Professional photo 455 4 range of accessories and video Target ne
Slide 58: Imaging and Staging summary
IMAGING & STAGING DIVISION Page 58 Imaging and Staging summary Market size Market Strategy £m* CAGR (%)* Professional photo and video 375 2 Maintain premium market position and share Develop Manfrotto as powerbrand with integrated Non-Professional photo 455 4 range of accessories and video Target ne
Slide 59: Our strategic direction
Our strategic direction > here / GROUP >, |
Slide 60: Purpose
Page 60 Purpose “We provide vital products and services that support the capture of exceptional images”
Slide 61: Values – The Vitec Mindset
Page 61 Values – The Vitec Mindset Our people are the key to Vitec’s future. They make the difference not only by what they do, but by how they do it. Their attitude and abilities, talent and commitment create a Vitec culture that naturally supports product excellence, creative solutions and integri
Slide 62: Page 62
Page 62 VITEC GROUP Capture the moment” “<= y ~~ jy ~~ y ~~ VITEC VITEC VITEC GROUP Videocom Division GROUP Services Division GROUP Imaging & Staging Division
Slide 63: Videocom summary
VIDEOCOM DIVISION Page 63 Videocom summary Market size Market Strategy £m* CAGR (%)* Maintain premium market position and share Broadcast and Film 300 2-3 Grow microwave systems (non US), lighting and robotics Develop specific products focussed on needs Business and Industry 195 11 of the independen
Slide 64: Services summary
SERVICES DIVISION Page 64 Services summary Market size Market Strategy £m* CAGR (%)* Continue to focus on live events and leverage Broadcast 255 2-3 customer contacts *Management best estimates, market size as of 2008, market CAGR for 2009-11 due to impact of Olympics in 2012 Continue to focus on ma
Slide 65: Imaging & Staging summary
IMAGING & STAGING DIVISION Page 65 Imaging & Staging summary Market size Market Strategy £m* CAGR (%)* Professional photo and video 375 2 Maintain premium market position and share Develop Manfrotto as powerbrand with integrated Non-Professional photo 455 4 range of accessories and video Target new
Slide 66: Three market strategy
Page 66 Three market strategy Continue to invest Broadcast & Video Fast growth from B&I, LED lighting and robotics £750m >> Expected growth rate of market 2009 - 2012 = 5% Continue to invest in Pro-market Photographic Grow Manfrotto through product extension £830m & appealing to wider audience >> Ex
Slide 67: Page 67
j ~~ VITEC GROUP Capture the moment” >, |
Slide 68: Appendix
Page 68 Appendix Stephen Bird - Group Chief Executive The Vitec Group plc One Wheatfield Way Kingston upon Thames Richard Cotton - Group Finance Director Surrey KT1 2TU United Kingdom Joop Janssen - Chief Executive, Videocom Division Tel: +44 (0)20 8939 4650 Francesco Bernardi - Chief Executive, Ima