Videndum Plc · LSE:VID
Videndum — The Vitec Group — H1 2011 Earnings Presentation
32 slides from Videndum's earnings presentation, Aug 16, 2011
Slide 1: 2011 Interim Results
Page 1 2011 Interim Results Stephen Bird Group Chief Executive Paul Hayes Group Finance Director 16 August 2011
Slide 2: Important notice
Page 2 Important notice This presentation is being made only to, and is only directed at, persons to whom such presentations may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. Information in t
Slide 3: Agenda
Page 3 Agenda Highlights Financial Review Operational Review & Outlook Stephen Bird, Paul Hayes, Stephen Bird, Group Chief Executive Group Finance Director Group Chief Executive
Slide 4: Highlights
Page 4 Highlights Stephen Bird Group Chief Executive
Slide 5: Highlights
Page 5 Highlights Revenue up 12.7%; Operating profit* up 18.2% Broadcast sales continue to grow − Strong performance from the supports business − Good sales growth in Litepanels Photographic market expansion − Manfrotto Powerbrand range well received in consumer channels − Lastolite acquisition trad
Slide 6: Financial Review
Page 6 Financial Review Paul Hayes Group Finance Director
Slide 7: Income statement
Page 7 Income statement ∆ H1 H1 Organic 2011 2010 ∆ CER ** £m £m % % Revenue 171.8 152.5 12.7% 18.4% Gross margin % 41.9% 41.2% +0.7 pts Operating profit * 15.6 13.2 18.2% 19.5% Operating margin % * 9.1% 8.7% +0.4 pts PBT * 15.2 12.6 20.6% 22.0% Basic EPS * 23.6 19.5 21.0% 22.3% Dividend per share 8
Slide 8: Organic revenue up 18.4% in constant currency terms
Page 8 Organic revenue up 18.4% in constant currency terms Adjusted ∆ ∆ H1 2010 FX H1 2010* H1 2011 Organic Acqns/Disps Division £m £m £m £m % ** £m % ** £m % Videocom 60.6 (1.7) 58.9 65.9 11.8% 12.3 22.8% (5.3) (11.0%) Imaging & Staging 73.5 (1.7) 71.8 91.7 27.6% 17.6 24.4% 2.3 3.2% Services 18.4 (
Slide 9: Revenue bridge
Page 9 Revenue bridge 180 Disps 2010 / NPD/NBD* Acqns 2011 FX 175 Transaction Price 170 Volume 165 (£m) 160 155 FX Translation 150 HY 10 HY 11 Revenue Revenue 145 £152.5m (£3.5m) £17.9m £1.7m £6.9m (£3.0m) (£0.7m) £171.8m . *NPD/NBD: new product development and new business development Variances are
Slide 10: Operating profit bridge
Page 10 Operating profit bridge * .Operating profit before significant items ** NPD/NBD: new product development and new business development Variances are based on management’s best estimates and are not a statutory presentation Volume/mix contributes £10.1m of margin Cost price net impact in H1 of
Slide 11: Cash generated from operations
Page 11 Cash generated from operations H1 2011 H1 2010 ∆ £m £m £m Operating profit * 15.6 13.2 2.4 Depreciation ** 7.5 7.5 0.0 Working Capital *** (13.0) (4.9) (8.1) Restructuring costs (0.4) (2.3) 1.9 UK pension funding (0.6) - (0.6) Provisions *** / Other (1.2) 0.2 (1.4) Cash generated from operat
Slide 12: Free cash flow
Page 12 Free cash flow H1 2011 H1 2010 ∆ £m £m £m Cash generated from operations 7.9 13.7 (5.8) Capital expenditure (6.7) (5.5) (1.2) Proceeds from asset sales 1.4 1.0 0.4 Net interest paid (0.6) (0.6) 0.0 Tax paid (2.3) 1.1 (3.4) Free cash flow (0.3) 9.7 (10.0) Capital expenditure higher mainly as
Slide 13: Net debt bridge
Page 13 Net debt bridge 45 Acquisition 40 Exchange movements 35 Dividends (£m) Free 30 Cash Flow 25 Dec 10 Jun 11 Net Debt Net Debt 20 £28.1m £0.3m £4.8m £8.4m (£1.1m) £40.5m Net debt increased to £40.5m from £28.1m at end of 2010 Net debt to EBITDA of 0.9x (December 2010: 0.7x) New $75m Private pla
Slide 14: Other financial points
Page 14 Other financial points Tax – Effective tax rate − 33% headline charge (FY 10: 33%) − FY 11 guidance: 33% Foreign exchange effects on operating profit: − H1 11 £1.0m adverse impact from translation and transaction losses − H1 11 average rates: £1=$1.61 and €1=$1.40 (H1 2010:£1=$1.53 and €1=$1
Slide 15: Operational Review
Page 15 Operational Review Stephen Bird Group Chief Executive
Slide 16: Market conditions and update
Page 16 Market conditions and update Broadcast and Video market recovery − Continued growth in global TV advertising markets − Buoyant NAB in April 2011 − Business and Industry market robust − Transition to HD TV products continues to boost investment Photographic showed good signs of growth − Core
Slide 17: Videocom
Page 17 Videocom Broadcast customers continue to invest Improved broadcast market ∆ H1 H1 Organic especially in Asia and Middle East 2011 2010 ∆ CER ** Litepanels revenue growth up 34% £m £m % % in CER Revenue 65.9 60.6 8.7% 22.8% − Eco benefits of LED lighting Operating profit * 6.0 3.7 62.2% 42.5%
Slide 18: Imaging & Staging
Page 18 Imaging & Staging Good growth in camera accessories ∆ Photographic markets H1 H1 Organic continue to be strong with 2011 2010 ∆ CER ** good growth in Supports for £m £m % % cameras and lighting Revenue 91.7 73.5 24.8% 24.4% Significant investment in Operating profit * 9.6 9.3 3.2% 12.1% laun
Slide 19: Lastolite – Acquired 4th March 2011
Page 19 Lastolite – Acquired 4th March 2011 Located in: Coalville, near Leicester Products include: − Lighting controls (umbrellas, reflectors) − Kits comprising studio lights, lighting supports and lighting controls Soft boxes Reflectors/ Diffusors Background Paper − Branded background paper Produc
Slide 20: Powerband Global retail launch
Page 20 Powerband Global retail launch Sell in ahead of expectations: Best Buy (US) Fnac (France) Amazon Darty (France) MediaMarkt (Germany, Italy) Yodobashi (Japan) Sam’s Club (US) Awareness building ahead of expectations 2.2 million visits to Manfrotto web-site (June YTD) Over 700 articles (June Y
Slide 21: Services
Page 21 Services Benefits from new focus on large jobs H1 H1 Important new contracts with 2011 2010 ∆ ∆ CER* ESPN in US £m £m % % Continue to rationalise Revenue 14.2 18.4 (22.8%) (19.3%) number of distribution hubs Operating profit - 0.2 n/m n/m with closure of Seattle Operating margin % -% 1.1% (1
Slide 22: Summary and outlook
Page 22 Summary and outlook The strategy and its execution in 2011 are on track Strengthening of business in Photographic and Broadcast and Video markets Encouraging sales performance in Russia, Middle East and Asia Good initial response from customers to our new range of Manfrotto Powerbrand suppor
Slide 23: Questions
Questions Capture the moment”
Slide 24: Reporting segments
Page 24 Reporting segments The TheVitec VitecGroup Groupplc plc Videocom Videocom Videocom Videocom Imaging Imaging&&Staging Staging Services Services 2010 2010 2010 2010 2010 2010 Sales Sales £121.6m £121.6m Sales Sales £153.7m £153.7m Sales Sales £34.3m £34.3m Profit Profit £8.4m £8.4m Profit Prof
Slide 25: Foreign exchange update
Page 25 Foreign exchange update Year on year effect Translation Transaction Total on profit £/$ €/$ £/€ £m £m £m Average FY03 1.63 1.13 1.45 1.2 (2.3) (1.1) Average FY04 1.82 1.24 1.47 (0.9) (3.9) (4.8) Average FY05 1.82 1.24 1.46 0.1 (1.0) (0.9) Average FY06 1.84 1.25 1.47 (0.2) (0.5) (0.7) Average
Slide 26: Banking
Page 26 Banking Loan facility of £100m (reduced from £125m following Private Placement) − Committed until August 2013 − 5 banks − Current interest at 0.95% over LIBOR − Utilisation as at 30 June 11 £37.6m (Dec 10: £34.8 m) − Significant covenant headroom New $75 million Private Placement facility es
Slide 27: Imaging & Staging awards in 2011
Page 27 Imaging & Staging awards in 2011 Manfrotto Magnesium Manfrotto Pocket DSLR KATA TLB KATA Source-261 PL Video Centre Ball Head Series Support 600PL DSLR backpack Backpack KATA Ultra- Light Manfrotto Magnesium Bug- 255-UL Photo-Movie head Backpack Manfrotto Pocket-12LED Light Manfrotto Manfrot
Slide 28: Imaging & Staging awards in 2011
Page 28 Imaging & Staging awards in 2011 Brilliant Stages: TPI Award: Favourite Set Construction Company Lastolite: The Queen’s Awards for Enterprise: International Trade 2011 Take That Set design Es Devlin Litec Truss RL105, Truss RL106, Sleeve block 105 and Rotation Platform Kata: Finalist in Inno
Slide 29: Videocom new products and awards in 2011
Page 29 Videocom new products and awards in 2011 Vinten Vision Blue IMT RF Central IMT Nucomm MicroLite HD Elite Newscoder 4 System Vinten Vector 75 Vinten 3D Wedge Adaptor
Slide 30: Videocom new products and awards in 2011
Page 30 Videocom new products and awards in 2011 OConnor O-Box Mattebox System Litepanels H2 Litepanels Sola4 Litepanels Hilio Sachtler Cine DSLR Sachtler Ace Litepanels Croma
Slide 31: Vitec Services awards in 2011
Page 31 Vitec Services awards in 2011 Bexel’s Hercules System at NAB
Slide 32: Page 32
y ~~ VITEC GROUP Capture the moment” “=