Vista Group International Ltd · NZX:VGL
Vista Group International — Investor Day (October 2022)
72 slides from Vista Group International's investor day presentation, Oct 26, 2022
Slide 1: Investor Day 26 October 2022
Investor 26 October 2022 Vista Group C i Nn e mM a of International t h e fu t U re Limited
Slide 2: Important notice
Important notice This presentation has been prepared by Vista Group International Limited ("Vista Group”). Information in this presentat + is provided for general information purposes only, does not purport to be complete or comprehensive, and is not an offer or invitation or subscription or purchas
Slide 3: Agenda
Agenda 01 Strategy Overview Kimbal Riley, Group Chief Executive 02 Industry Update Matthew Liebmann, Chief Data and Innovation Officer 03 Platform » Moviegoers » Clients * Technology Sarah Lewthwaite, CEO Movio Leon Newnham, CEO Vista Cinema Grant Smith, COO Vista Cinema 04 People Anna Ferguson, Chi
Slide 4: Strategy Overview
Strategy Overview
Slide 5: The cinema of the future
The cinema of the future Our message today is clear... * Cinema continues to show great strength - with upside to come Our platform delivers the best experience in the industry * Client interest is strong, and our value proposition is clear Our platform enables us to significantly increase our total
Slide 6: Vista Group's purpose
Vista Group’s purpose is to bring more oeople together to experience the magic of movies and cinema by creating the platform that connects the industry and powers the moviegoer experience
Slide 7: Vista Group Strategy
Vista Group Strategy O' QZ Support our clients to Expand our core platform rebuild their business that delivers value to our clients and connects moviegoers OS Create and invest in new opportunities
Slide 8: Strategy priorities
Strategy 1 and 3 OT Support our clients to rebuild their business BAU Re-opening kit Operational Services Scaled support organisation cNPS tracking upwards O38 Create and invest in new opportunities Platform first strategy Focus on platform contribution/scale Our primary focus today is on Strategy 2
Slide 9: What is the platform?
What is the platform? Movio EQ * Connecting every moviegoer to their ideal movie Vista Digital * Delivering the best digital experience for moviegoers Vista Cloud * The future of cinema management
Slide 10: Expand our core platform
| Strategy 2 Good for our Clients Good for Vista Group Focus on our clients’ biggest * Much greater share of wallet (TAM) problems Reduced working capital Innovation into user's hands Drives operating leverage Expand our core platform that Operational workload significantly reduced + Aligns revenue
Slide 11: Aspiration
Aspiration Where we believe we can go.... Aspiration - with 100% platform * Group ARR $NZD300m+ + Group EBITDA 25-30% * 60%+ market share * 6,000+ sites on platform Key Point We can execute on our strategy with current funding 1
Slide 12: Inflection Point
Inflection Point Late 2024 and 2025 will be significant inflection points Investing through to mid 2024 Inflection Point - late 2024 + Investing in R&D bump + R&D bump plateaus * Transitioning existing clients * Group ARR $NZD175m - $NZD205m in 2025 . . * 1,600 - 2,400 sites on platform in 2025 +» W
Slide 13: To get there we start with fast improving industry fundamentals
To get there we start with some fast improving industry fundamentals
Slide 14: Industry Update
Industry Update
Slide 15: The field of play: Substitutes & complements
The field of play: Substitutes & complements
Slide 16: Cinema straddles two worlds
Cinema straddles two worlds Out of Home Leisure & Entertainment quawuleyayug pawy!4 16
Slide 17: People love the cinema for more reasons than the movie
/ People love the cinema and for more reasons than just the movie Top live events people are most excited to attend post-COVID-19 The most important reasons people go to the movies Sporting events 79 The immersive big screen and Sound pees ;:, experience ~ Concerts i 75°, Getting out of the house I
Slide 18: Streamers are the most avid moviegoers
Streamers are the most avid moviegoers Respondents were asked how often they saw a movie in theatres over the past month AUUS adults 10 17% 20 54% Uses PVOD 27% 22 22% Doesn't use PVOD 15% 19 59% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 5+ video streaming subscriptions 3-4 video streaming subscri
Slide 19: Studios believe cinema drives downstream revenue
i The studios believe that cinema drives downstream revenue “Theatrical still has the greatest impact. That sort of theatrical release, 45 days later to streaming, that’s working beautifully. The bigger the hit in theatres, the greater the impact in streaming. The path to monetization now is greater
Slide 20: Two $200m movies
Two $200m movies: the major difference is MIR IVERGE IF MANIESS MAY 6 Budget Streaming Release Streaming Minutes Worldwide Box Office Budget Streaming Release Streaming Minutes Worldwide Box Office
Slide 21: Streamers sending movies to cinemas for exclusive windows
Streamers are sending movies to the cinemas for exclusive windows ‘Magic Mike's Last Dance’ Marvel’s Don Cheadle Netflix reaches historic Skipping HBO Max, Series ‘Armor Wars’ To Be agreement with global Going Theatrical Turned Into Feature Film exhibitors for ‘Knives Out 2’
Slide 22: A 45-day window has marginal impact on box office
A 45-day window has marginal impact on box office 96% in 45 days 96% in 45 days 91% in 45 days OHO FHOEN JTKER 98% in 45 days 96% in 45 days 89% in 45 days 95% in 45 days 99% in 45 days
Slide 23: Cinema remains affordable and resistant to downturns
Cinema remains affordable and resistant to downturns 70 On average, a person must work 26 minutes to buy a movie ticket AT at the average price in their home country. 5 Cinema has traditionally 47 nth NRO 18 ven Oe fared well during ° tougher times: Q.3 US box office grew during three of the last fo
Slide 24: The score: Structure & performance
The score: Structure & performance
Slide 25: Cinema is back and audiences are returning fast
Cinema is back and audiences are returning fast
Slide 26: Recent domestic box office records
Recent domestic box office records 2 of the Top 5 highest grossing movies of all time released post-Omicron + Spider-Man: No Way Home - US$814m (No. 3) * Top Gun: Maverick - US$714m+ (No. 5) Since Omicron, the domestic industry broke 4 additional calendar-based records . July 4th weekend Minions: Th
Slide 27: Food & Beverage average spend is up
Food & Beverage average spend is up, boosting exhibition profitability amc $7.52 QI ‘22 (+35%) vs $5.58 Q1’19 in US +21.5% vs Q1 ‘19 internationally $5.80 '21 vs $4.27 ‘20 LEMAR All-time high US result of $6.90 in Q2 ‘22 CINEPLEX $8.82 QI ‘22 vs $7.93 in Q1 ‘21 hi MARCUS. +3.7% H1 ‘22 vs H1’21 HE +2
Slide 28: When movies abound, box office rebounds
When movies abound, box office rebounds... a a PP & @& D> fh fh & gh b PP HPP PPM PD HM GD DP MD WD YM DM es — 2 & Ros cs we oe Ss Ss we we SSS SF oe sw $1,400,000,000 % change on same month in 2019 40 20 | 0° er! > er Sara ; & oy iy vo Monthly Domestic Box Office: 2019-22 wy se Source: Box Office M
Slide 29: As Spidey and Maverick demonstrate
..as Spidey and Maverick demonstrate 5/5/21 6/5/21 7/5/21 8/5/21 9/5/21 10/5/21 11/5/21 12/5/21 1/5/22 2/5/22 3/5/22 4/5/22 5/5, ——lInfrequents s==Occasional s==—=Frequent s=—=Very Frequent Percentage of returned moviegoers by frequency 29
Slide 30: Overall movie shortage
But right now, there is an overall movie shortage 200 160 120 80 40 0 tc-des tc-des tz-any cc-8ny @z-1ne te-ne zz-une zz-une tz-Aew cz-Aew w-ady acid 77-eW 7z-JeN 2-494 77-494 ze-uee zwo-uec bz-98q 1z-980 LZ-AON LE-AON 1e-PO 1T-390 1e-das bo-des be-sny 2 be-8ny ke-ne IR be-1nc ie-une < be-une Lz-Aew
Slide 31: Gran Turismo
Gran Turismo
Slide 32: Projected Global Box Office CAGR of 2.4% (2019-2025)
Projected Global Box Office CAGR of 2.4% (2019-2025) 50,000 45,000 40,000 35,000 2015 Source: Omdia 2016 2017 mAmericas - LATAM BAPAC - India 30,000 U LU 25,000 20,000 Hi 15,000 10,000 |_| 5,000 ms 0 2018 2019 Americas - North America MEMEA - Eastern Europe 2020 2021 2022(f) 2023(f) 2024(f) MAPAC -
Slide 33: Projected Direct Box Office CAGR (ex India and China)
Projected Direct (exci india and chinay Box Office CAGR of 1.8% (2019-2025) 50,000 45,000 40,000 35,000 30,000 25,000 Source: Omdia 2015 2016 2017 2018 Americas - LATAM ™MEMEA - Eastern Europe 20,000 15,000 10,000 |_| || 5,000 = 0 2019 2020 2021 2022(/f) Americas - North America @™APAC - ex China &
Slide 34: Financial performance drives site and screen growth
i Strong financial performance drives site and screen growth 27,000 26,500 26,000 25,500 25,000 24,500 24,000 23,500 23,000 22,500 Source: Omdia ie wl ———— 2016 2017 2018 2019 2020 2021 2022 2023 2024 ME Sites Screens 130,000 125,000 120,000 110,000 105,000 34
Slide 35: The Cinema of the Future
The Cinema of the Future
Slide 36: Cinema Experience = Premises + Content + Service
Cinema Experience = Premises + Content + Service
Slide 37: Slide 37
Slide 38: The moviegoer journey
The moviegoer journey 38
Slide 39: The moviegoer journey
The moviegoer journey
Slide 40: Slide 40
Slide 41: Platform - Moviegoers
Platform - Moviegoers
Slide 42: Moviegoers have changed
Moviegoers have changed... Moviegoer purchasing habits have changed * Pre-pandemic digital = 30% * Post-pandemic digital = 60% and rising A diverse slate improves industry performance * 35% of audiences in 3Q22 returned to see non- blockbuster movies * Connecting moviegoers to their ideal movie has
Slide 43: The needs of cinemas have changed
.. and so have the needs of How do they take the guesswork out of targeting? ci nemas How do they drive attendance and spend? Mrs. Harris . ‘ - G x00, to om y —~ 4 Pynis NS |
Slide 44: We're ready
We're ready Vista Digital MOVIO CINEMA a) =O. = FASTER. SIMPLER. SMARTER. cD CURZON CURZON xionmn sora RAINDANCE FILM FESTIVAL 100) THE FRENCH okie Fe! 190,200 121,493 90,487 s221m
Slide 45: The platform powers a better moviegoer experience
The platform powers a better moviegoer experience Digital channels disrupted by high volumes Fragmented digital experience across multiple channels Static moviegoer journeys Over-reliance on email Limited personalisation Improved & highly reliable cinema-branded digital channels Expanded amenities d
Slide 46: Better experience driving more attendance
Better Driving more Moviegoers are at attendance oxperience the centre of the strategy More Increased transactional digital data transactions Greater variable revenue * As we improve the moviegoer experience, we increase both our relevance and value to our clients * Amplifying the opportunity for Vi
Slide 47: Platform - Clients
Platform - Clients
Slide 48: Who are our clients, where we operate, market share
a. Who are our clients b. Where we operate a. 110 countries c. Market share
Slide 49: Our clients
Our clients ODEON REGAL EVENT clu em AS = Cinemex cineworld Ww VILLAGE CINEMAS CINEPLEX
Slide 50: Platform Value
Platform Value Drivers Constrained labour Greater stability of digital channels Addressing demand for digital self-service Developing a deeper understanding of moviegoers Cybersecurity concerns Removal of costs and distraction
Slide 51: Transfer of Responsibility
Transfer of Responsibility On premises S 5 MOVIO wista Platform Vista Cloud =O >, = aw Vista maintenance fees Movio fees Server Hardware Server Maintenance Cybersecurity and compliance Implementing Vista Upgrades Performance and reliability Network maintenance Database licensing fees Database mainte
Slide 52: Share of Wallet, Unlocking Value
Share of Wallet, Unlocking Value On premises S 5 MOVIO wista Platform Vista Cloud =O > , = WW Perpetual License Fixed annual maintenance POS base, Movio and other additional modules a la carte ry SaaS Fee 3-5+ times maintenance Fees vary by up to 80% based on performance Expansive core offered in tw
Slide 53: Transition to adoption of Cloud platform
Tra nsition to Adoption of our stable, extensible Cloud platform, in two flavours i. Cloud Digital & Movio EQ - fast track to unlock moviegoer value, platform, when, e.g. modernising Digital channels ii. Cloud Cinema (aka Full Suite) - ‘Cloudifies’ entire estate, e.g. removes need for cinema server
Slide 54: Platform - Technology
Platform - Technology
Slide 55: Maturing our technology stack
Maturing our technology stack will generate operating leverage, drive demand, unlock new opportunities 55
Slide 56: Years of breadth and depth in our products
25 years of breadth and depth in our products Estimated 1B tickets are handled every year 3.2B connections, and 40M active moviegoers We have homologation in 35 countries
Slide 57: From trusted products to trusted platform
From trusted products, to trusted platform Today vs. last week ne Boxomee $225,266.37 Concestons atte Average ticket price Spend per admit $115,391.31 25,782 $8.74 $6.03 - We've approached the Cloud technology journey progressively * We still maintain a single code-base across on-prem and Cloud « Vi
Slide 58: Technology roadmap
Technology roadmap Iteration 1- Today Single-tenant products Multi-tenant infrastructure * Outcome parity across Cloud suite + Observability stack ensures reliability and recovery + Dependence on operational person-power 58 Iteration 2 - 2023 Iteration 3 - 2024 Iteration 4 - 2025+ Multi-tenant Digit
Slide 59: People
People
Slide 60: People are at the heart of our success
People are at the heart of our success Passionate about our industry and the role we play Our team spans 12 countries; enables us to be close to our clients Clear and deliberate strategy for growth Multi-pronged approach to recruitment Continual focus on engagement and retention Tight labour market
Slide 61: Financials
Financials
Slide 62: We're in great shape
We’re in great shape Macro factors Micro factors Cinema market Market size/share Inflation/costs, recession Price/costs Talent Taking price progressively Technology cyber security Short term wage headwinds Cash
Slide 63: The business model
The business model Transition will drive... > > Revenue Growth Operating leverage Liquidity and balance sheet + Adoption curve x price per * Scale delivered No funding needed to site + growth opportunities sequentially, drives EBITDA achieve the market (market size, share, and FCF transition expansi
Slide 64: Revenue growth
Revenue growth Adoption 1,600-2,400 sites by 2025 Variable based on market demand, delivery capacity Price 3-5+ x Maintenance Circuit size Product Mix Market Conditions, ATP Greater exposure to Box Office Performance ‘Fast and Furious’ aspirations Group ARR 2025 $175-205m ARR Growth 2022-2025 15-20%
Slide 65: Operating leverage
Operating leverage Sales and Marketing, and General and Administration organisation in place at end 2022 for the full transition Capitalised Development ‘bump’ $25m-$30m over 2023/24/25 Extra spend over two-three years Then tracks back to ‘new’ normal of $15m/yr Cost to Serve run rate higher in 2023
Slide 66: Today to 100% Platform
‘Fast and Furious’ aspiration l= Non-recurring mi Base Recurring ml Recurring - Platform NS Today 2025 100% Platform Revenue model Today —R&D —CTS —CAC+G&A —Adoption —EBITDA > 100% Platform Margin model 100% 80% 60% 40% 20% 0% 66
Slide 67: Strong balance sheet/liquidity
Strong balance sheet/liquidity Cash Capital Allocation Expected Cash Burn 2023/2024 We do not require any cash Short term capex, rolls off from $25 m to execute on our strategic early 2025 th pl grownn plans FCF for growth or dividends Improved receivables from 2025 management
Slide 68: Aspiration summary
Aspiration summary ... to inflection point and beyond. Sites Market share Platform multiple of maintenance Group ARR Group EBITDA margin Previously a December 100% indicated/ 2025 Platform reported 5,100 1,600-2,400 6,000+ (on premises) (platform, rest (platform) on premises) 51% - 60%+ 1.5-2.5 - 3-
Slide 69: Summary
Summary
Slide 70: I believe we have shown you today that...
| believe we have shown you today that... Cinema of the future * Cinema continues to show great strength - with upside to come * Our platform delivers the best experience in the industry * Client interest is strong, and our value proposition is clear * Our platform enables us to significantly increa
Slide 71: Questions
Questions
Slide 72: Slide 72
Vista Group International — Investor Day (October 2022) on 6ix