Zoo Digital Group Plc · LSE:ZOO
Zoo Digital — Shareholder Meeting (September 2011)
27 slides from Zoo Digital's shareholder meeting presentation, Sep 22, 2011
Slide 1: AGM Presentation
ZOO Digital Group AGM Presentation Stuart Green, CEO 22 September 2011 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by ZOO Digital Group plc (the “Company”) solely for presentation purposes. It should not be reproduced, redistributed or passed to any other person. This document is being solely issued to and directed at (i) persons having professional experience in matter
Slide 3: About ZOO
About ZOO • Creating media for global distribution is labour-intensive and time-consuming • ZOO’s software enables businesses to create and deliver media to the global marketplace more rapidly and efficiently than ever before 22 September 2011 3
Slide 4: About ZOO
About ZOO • We provide software for managing collaborative workflows involving localising and authoring creative content • We work with film studios, videogame companies, music publishers, book publishers and other creators of creative media • We simplify the production of creative media • Our custo
Slide 5: Home Entertainment
Home Entertainment 22 September 2011 5
Slide 6: Music
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Slide 7: Video Games
Video Games 22 September 2011 7
Slide 8: Publishing
Publishing 22 September 2011 8
Slide 9: Strategy
Strategy • Identify labour-intensive services • Design workflow management software based on automation and centralization without compromise to quality • License systems directly to brand owners, supplemented with services where appropriate • Deliver first rate customer service • Generate recurring
Slide 10: The Market and Growth
The Market and Growth • Established in the filmed entertainment market with customers including major Hollywood studios • Working with partners to expand business: – Multi Packaging Solutions • Interactive Entertainment • Healthcare/Pharmaceuticals – Apple Computer • Music • Electronic books • Growi
Slide 11: eBook Market Growth
eBook Market Growth • Suggested forecast of almost $1 billion spent in US on eBooks in 2010 (source: Forrester Research, November 2010) • US spending on eBooks expected to reach $3 billion by 2015 (source: Forrester Research, November 2010) • Market shares for eReaders: Amazon Kindle 47%, Apple iPad
Slide 12: ZOO's eBook Proposition
ZOO’s eBook Proposition • Providing workflow and automation software and related services for eBook production • Enabling publishers to repurpose traditional books for sale online – format and language adaptation • Focusing primarily on media-rich genres, including picture books, comics, graphic nov
Slide 13: 22 September 2011
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Slide 14: 22 September 2011
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Slide 15: 22 September 2011
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Slide 16: 22 September 2011
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Slide 17: 22 September 2011
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Slide 18: 22 September 2011
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Slide 19: 22 September 2011
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Slide 20: 22 September 2011
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Slide 21: Competitive Landscape
Competitive Landscape • We compete with many established providers of media production services • For video-related services, primarily Technicolor Creative Services and Deluxe Digital; for print- related services, primarily AGI Media and Schawk; for eBooks Trailer Park • We believe our competitors
Slide 22: Financial Results
Financial Results 16,000 14,000 Revenue Results to March 2011 12,000 10,000 8,000 • Termination of outsourced low- 6,000 4,000 margin subtitling work (value: $3.6m 2,000 in 2010) resulted in total revenue - reducing to $13.8m (2010: $15.1m) 2008* 2009* 2010 2011 Core business Subtitling • Operating
Slide 23: Highlights
Highlights • First significant contract through MPS relationship with leading videogame publisher • Global Digital Media Xchange licenses automated Blu-Ray and Electronic Sell Through (“EST”) production solutions • Successfully completed a share placing of $2.8m to provide working capital to fund gr
Slide 24: Share Placing and Restructure of Loan Notes
Share Placing and Restructure of Loan Notes • Placing of £1.7m at 40p • VCT qualifying under 2005/6 rules • Pre-existing loan note of £3.541m, redeemable on 31 October 2011 at 48.75p with coupon of 6% restructured as follows: – 50% of existing loan note converted into equity at 40p – 50% of existing
Slide 25: Proposed Use of Proceeds to Fund Growth
Proposed Use of Proceeds to Fund Growth • Net proceeds of c£1.5m to be used to support acceleration of the business in new markets, particularly eBooks: – Infrastructure needed to establish ZOO as eBook aggregator – Additional R&D staff to accelerate eBook and EST software – Enlarged production team
Slide 26: Outlook
Outlook • Continuing to add innovative new products • Developing further opportunities to embed ourselves deeper within our clients’ operations • Entering new markets with existing products • Diversifying revenue streams and broadening customer base • Continuing to manage long sales cycles and time
Slide 27: Investment Summary
Investment Summary • Excellent customer relationships – significant growth potential • Clearly differentiated proposition – based on innovative software • Addressing customer needs in the current economic climate – improve efficiencies • High barriers to entry – sophisticated patent-protected softwa
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