Zoo Digital Group Plc · LSE:ZOO
Zoo Digital — Shareholder Meeting (September 2023)
24 slides from Zoo Digital's shareholder meeting presentation, Sep 28, 2023
Slide 1: ZOO Digital Group AGM 2023
ZOO DIGITAL GROUP AGM 2023 28 September 2023 Page 1
Slide 2: Board and management present
Gillian Wilmot Nathalie Schwarz Mickey Kalifa Chairman Non-Executive Non-Executive Stuart Green Phill Blundell Gordon Doran CEO CFO CCO Page 2
Slide 3: Ordinary Resolution 1
AGM 2023 To receive the annual accounts and strategic, directors' and auditors’ ORDINARY reports for the year ended 31 March 2023 RESOLUTION 1 For: 51,781,097 Against: 93 Withheld: 206,505 Total: 51,987,695 Page 3
Slide 4: Ordinary Resolution 2
AGM 2023 To approve the directors’ remuneration report for the year ORDINARY ended 31 March 2023. RESOLUTION 2 For: 49,752,144 Against: 2,018,254 Withheld: 217,297 Total: 51,987,695 Page 4
Slide 5: Ordinary Resolution 3
AGM 2023 To reappoint Mickey Kalifa as a director of the Company, having ORDINARY retired by rotation in accordance with the articles of association of the RESOLUTION 3 Company. For: 51,241,001 Against: 506,384 Withheld: 240,310 Total: 51,987,695 Page 5
Slide 6: Ordinary Resolution 4
AGM 2023 To reappoint Gordon Doran as a director of the Company, having ORDINARY retired by rotation in accordance with the articles of association of the RESOLUTION 4 Company. For: 43,189,881 Against: 8,579,984 Withheld: 217,830 Total: 51,987,695 Page 6
Slide 7: Ordinary Resolution 5
AGM 2023 To reappoint Grant Thornton UK LLP as auditors of the Company. ORDINARY RESOLUTION 5 For: 46,964,979 Against: 4,810,699 Withheld: 212,017 Total: 51,987,695 Page 7
Slide 8: Ordinary Resolution 6
AGM 2023 To authorise the directors to fix the remuneration of the auditors. ORDINARY RESOLUTION 6 For: 51,772,344 Against: 8,645 Withheld: 206,706 Total: 51,987,695 Page 8
Slide 9: Ordinary Resolution 7
AGM 2023 To authorise the directors to allot shares up to an aggregate nominal ORDINARY amount of £325,879.78. RESOLUTION 7 For: 51,727,540 Against: 47,837 Withheld: 212,318 Total: 51,987,695 Page 9
Slide 10: Ordinary Resolution 8
AGM 2023 To empower the directors to allot shares for cash without first offering ORDINARY them to existing shareholders on a pro rata basis. RESOLUTION 8 For: 46,909,007 Against: 4,866,370 Withheld: 212,318 Total: 51,987,695 Page 10
Slide 11: Management Presentation
AGM 2023 MANAGEMENT PRESENTATION Page 11
Slide 12: To Global Entertainment
AGM 2023 TO GLOBAL ENTERTAINMENT • Fourth successive year of strong revenue growth with improved margins and profitability • Increased share of a growing market; remain strategically positioned to meet customer demand • Strengthened international presence in strategically important regions • Content
Slide 13: Streaming strategic reviews and US strikes
AGM 2023 Major streaming companies have been undergoing strategic reviews • Refocus on profitability over subscriber growth • Process commenced by Disney in early 2023, others have followed (Paramount, WBD, NBCUniversal, Amazon, Netflix) • Restructuring, headcount reductions, trimming new content bu
Slide 14: Media companies under pressure; end markets remain strong
AGM 2023 • Large media companies under pressure to evolve streaming services to become profitable • All media localisation providers are affected by the hiatus and smaller players more marginalised However, • The end markets for media & entertainment are as large and strong as ever • Streaming servi
Slide 15: Disruption is temporary; ZOO well positioned
AGM 2023 • The disruption is temporary, return to production likely within a few months • Large buyers now favour E2E vendors – rationalisation of suppliers benefits ZOO • ZOO is confirmed as a key supplier to major buyers with ZOOstudio embedded • ZOO’s flexible cost base is an advantage in the cur
Slide 16: Content spend growing as consumers transition to streaming
AGM 2023 CONTENT SPEND GROWING AS CONSUMERS TRANSITION TO STREAMING US Hours Spent per day with Premium SVOD Quarterly Subscription Global content spend ($B)3 TV vs. Digital Video Among Adults 1 Growth 2 260 03:33 16 50 240 220 14 03:18 03:16 40 03:11 200 12 03:07 30 Global content spend ($B) 180 10
Slide 17: Heightened competition leading to new monetisation models
AGM 2023 HEIGHTENED COMPETITION IS LEADING TO NEW MONETISATION MODELS Global SVOD Market Shares December US AVOD Viewers2 FAST Channel Revenue by Region 2022 1 165.4 $B 3 158.5 150.6 14 140.1 Netflix 129.0 12 Other 10 8 61.2% 59.5% 57.4% 6 54.3% 4 50.9% Apple TV+ Prime Video 2 0 Max 2021 2022 2023 2
Slide 18: Streamers increasingly focused on profitability
AGM 2023 STREAMERS ARE INCREASINGLY FOCUSED ON PROFITABILITY Demand for Foreign Language Netflix Originals Iger Predicts Disney Will by Country of Origin ‘Meet or Exceed’ $5.5 Billion Cost-Cutting Goal Other 24% Japan 29% France Warner Bros. Discovery 3% Increases Cost-Cutting China Synergies Target
Slide 19: Growing media localisation market serviced by fewer global vendors
AGM 2023 GROWING MEDIA LOCALISATION MARKET SERVICED BY FEWER GLOBAL VENDORS Media Localisation Market Size (Slator) Media Localization Vendors in the Nimdzi 100 3.5 1,400 14 3 1,200 12 Number of companies 1,000 10 2.5 Market Size ($ Billion) Revenue (USD) 800 8 2 600 6 1.5 400 4 1 200 2 0.5 - 0 2018
Slide 20: Impact on ZOO
AGM 2023 Impact on ZOO • Resilient content spend – all market forecasts point to continuing growth • Increasing reliance on trusted vendors – growing YoY market share of large/E2E vendors • Demand from new streaming models – AVOD and FAST provide new opportunities • Localisation unlocks ROI and prof
Slide 21: Temporary hiatus and outlook
AGM 2023 • Customer cost-saving programmes and industrial action have created a temporary hiatus • This has resulted in softening of FY24 revenues • Large customers are now rationalising their supplier bases – ZOO is strategically positioned to benefit as one of the few E2E vendors • The cost base i
Slide 22: Thank you
Services overview 2021 Final Results FY21 THANK YOU Page 22
Slide 23: AGM 2023 Q & A
= ZOO AGM 2023 Page 23
Slide 24: The Board
THE BOARD AGM 2023 Gillian Wilmot, CBE Since 2019 Extensive board level leadership in private and public environments with industry experience Chairman across B2B, technology, advertising and communications. Strengths in value creation, operational insight and corporate governance. Mickey Kalifa Sin
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