One Media Ip Group Plc · LSE:OMIP
One Media Ip — FY2020 Earnings Presentation
22 slides from One Media Ip's earnings presentation, April 2021
Slide 1: FY20 Results Presentation: Hitting the Right Notes
a digital music rights acquirer, publisher and distributor FY20 Results Presentation LON:OMIP HITTING THE RIGHT NOTES EBITDA +38%, Dividend Declaration, Strong Cash Position
Slide 2: Industry Experts
Industry Experts Founder & Chief Executive Officer: Michael Infante • +30 years’ music industry experience Chairman: Claire Blunt • Exec Producer for Royal Philharmonic Orchestra’s largest recording project for over 140 classical albums • CEO International at Guardian Media Group • Co-founder of Air
Slide 3: Company Overview
Company Overview • Dividend paying stock of 0.055p (subject to approval at AGM) and cash in bank of £6.8m • AIM-listed digital music rights acquirer, publisher and distributor, specialising in purchasing and monetising intellectual property rights with proven, recurring income streams • Profitable b
Slide 4: 2020 Financial Highlights
2020 Financial Highlights REVENUE OPERATING PROFIT EBITDA +14% Revenue increased 14% to £4.0 million +16% Operating profit increased 16% to £1.02 million +38% EBITDA increased 38% to £1.49 million (2019: £3.5 million) (2019: £0.88 million) (2019: £1.07 million) Revenue Operating profit £m EBITDA £m
Slide 5: CEO and Goldman Sachs quotes
“I am pleased to report another successful year of growth for the Company. The year under review could have been a most unpredictable and turbulent time for any small business operating under COVID-19 but, even in the midst of challenges, our music business model saw its EBITDA grow by 38%.” Michael
Slide 6: 2020 & Post-Period Operational Highlights
2020 & Post-Period Operational Highlights • Formation of TCAT Limited subsidiary and recruitment of the team; part of TCAT’s next phase of development to become a leading anti-piracy service • Acquisition of Take That producer royalties including 'A Million Love Songs', 'Could It Be Magic' and 'I Fo
Slide 7: The Market
The Market • Global recorded music revenues totalled US$21.6 billion in 2020, a 7.4% increase on 2019 and the sixth consecutive year of growth • Growth was predominantly driven by a 18.5% rise in paid streaming • Global music revenue forecast from Goldman Sachs more than doubling by 2030 – Going fro
Slide 8: Music Monetisation
Music Monetisation RIGHTS HOLDERS THE WRITER THE PERFORMER THE RECORD LABEL • The creator of the composition, writing the • Entitled to a royalty paid subject to the • A collective of music recordings performed lyrics and/or composing the tune to form a contract with their record label and, by vario
Slide 9: OMiP Core Business
OMiP Core Business • Acquisition and full monetisation of music intellectual property (IP) rights • Acquisition of the master rights, publishing rights and the writer’s share of income of evergreen content with recurring income streams and strong growth potential • Optimisation of content (addition
Slide 10: Competitive Landscape
Competitive Landscape Small Record Labels • Approx. 50-60k small record labels • Own single tracks and/or a small collection of tracks - smaller scale than One Media • Reliance on One Media to compile their tracks within playlists and get them discovered • One Media acts as a sub aggregator for c.20
Slide 11: TCAT: tackling music piracy
TCAT: tackling music piracy • Piracy costs the UK economy c.£9bn per year • The Technical Copyright Analysis Tool (“TCAT”) polices the Company’s own music catalogue of tracks • 38% of global music listeners acquire music through illegal means1 • Detects copyright infringement within legitimate store
Slide 12: Harmony IP: unlocking future earnings today
Harmony IP: unlocking future earnings today • IP equity release programme • Harmony IP would acquire 10-30% of the equity on agreed multiples, leaving the rights owner with a majority ownership whilst sharing in any future uplift • Targeting composer’s rights which typically extend to 70 years after
Slide 13: Key News
Key News • March 2021: EBITDA +38% and dividend declaration (subject to shareholder approval) • February 2021: acquisition of 21 Vision catalogue royalties of over 2,000 recordings from some of the all-time greats of the last 7 decades including: Glenn Millar, Vera Lyn and Cole Porter • January 2021
Slide 14: Financial Performance
Financial Performance FY 2020 % change FY 2019 £ £ Revenue 4,005,385 +14% 3,508,891 Gross profit 1,936,182 +10% 1,752,427 Gross margin 48% - 2% 50% Administration costs (916,298) +5% (873,513) Operating profit 1,019,884 +16% 878,914 EBITDA 1,485,645 +38% 1,076,724 Finance costs 223,384 +18% 189,322
Slide 15: Balance Sheet
Balance Sheet FY 2020 % change FY 2019 £ £ Intangible assets 8,884,158 -0.18% 8,900,408 Fixed assets 91,260 +1,093% 7,648 Trade and other receivables 1,141,555 +16% 987,054 Cash and cash equivalents 6,766,424 686% 860,611 Total assets 16,883,397 +57% 10,755,721 Trade and other payables 823,151 -19%
Slide 16: Cashflow Statement
Cashflow Statement Year ended Year ended Year ended Year ended 31 October 2020 31 October 2019 31 October 2020 31 October 2019 Group Group Company Company £ £ £ £ Cash flows from operating activities Operating profit before tax 734,043 547,222 (57,627) (70,475) Amortisation 523,170 332,423 - - Depre
Slide 17: Cashflow Statement Ctd.
Cashflow Statement Ctd. Year ended Year ended Year ended Year ended 31 October 2020 31 October 2019 31 October 2020 31 October 2019 Group Group Company Company £ £ £ £ Cash flows from financing activities Net proceeds from the issue of new shares 5,590,820 - £5,590,820 - Finance cost paid (109,136)
Slide 18: Robust Strategy
Robust Strategy Identifying and capitalising on opportunities to grow shareholder value Grow Leverage Capitalise on Consolidate and catalogue existing content global growth strengthen Targeted acquisitions of Maximise the value of OMiP’s Capitalise on the predicted Consolidate OMiP’s position in a i
Slide 19: Chairman quote on sector investment
“We remain encouraged to observe that the sector continues to attract significant investment from outside of the industry, which we believe will help to build further interest in our business and strategy.” Claire Blunt – Chairman 17
Slide 20: Encouraging Outlook
Encouraging Outlook • Industry yielding $20.5bn with forecasted growth to 2023 of c$40bn (IFPI source) • Consumer appetite for streaming robust • Strong market fundamentals • Entered H1 with a strong cash balance positioned to capitalise • Expanded catalogue following recent acquisitions expected to
Slide 21: Disclaimer
Disclaimer This presentation is incomplete without reference to, and should be viewed solely in conjunction with the oral briefing which accompanies it. The information in this presentation is subject to updating, revision and amendment. The information in this presentation, which includes certain i
Slide 22: www.omip.co.uk
ONE MEDIA’? www.omip.co.uk