Vista Group International Ltd · NZX:VGL
Vista Group International — H1 2020 Earnings Presentation
27 slides from Vista Group International's earnings presentation, Aug 27, 2020
Slide 1: 2020 Half Year Results
2020 HALF YEAR RESULTS 27 August 2020
Slide 2: Important Notice
IMPORTANT NOTICE This presentation has been prepared by Vista Group International Limited (“Vista Group”). Information in this presentation: • is provided for general information purposes only, does not purport to be complete or comprehensive, and is not an offer or invitation for subscription or pu
Slide 3: Agenda
AGENDA VISTA GROUP SUMMARY KIMBAL RILEY GROUP CHIEF EXECUTIVE FINANCIAL RESULTS MATT CAWTE CHIEF FINANCIAL OFFICER OPERATIONAL HIGHLIGHTS KIMBAL RILEY GROUP CHIEF EXECUTIVE WILL PALMER CHIEF EXECUTIVE, MOVIO OUTLOOK Q+A 3
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Slide 5: Vista Group 1st Half Summary
VISTA GROUP 1ST HALF SUMMARY Resilient Vista Navigates Pandemic in Strong Position • Group balance sheet in good shape, with $96m of cash at June 30 • Q1 in-line with our guidance on growth (13-18%) • Q2 cash collections exceeded expectations despite almost all cinemas being closed • Operating cash
Slide 6: Pandemic - Acted Early, Acted Decisively
PANDEMIC - ACTED EARLY, ACTED DECISIVELY • Successfully completed a NZD$62.4 million capital raise, with excellent support from existing institutional and retail shareholders • Directors, CEO and Senior Leadership team voluntarily reduced their remuneration, plus over 80% of Vista Group’s employees
Slide 7: Financial Results
FINANCIAL RESULTS 7
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS TOTAL REVENUE RECURRING REVENUE EBITDA1 $45m $33m -$7m -34% -21% n/a OPERATING PROFIT OPERATING CASHFLOW -$15m $17m n/a +123% 1 EBITDA is a non-GAAP measure and is defined as earnings before net finance costs, income tax, depreciation and amortisation, acquisition expenses, capi
Slide 9: Trading Performance
TRADING PERFORMANCE • EBITDA1 includes $7.6m non- cash provision for revenue credit risk NZ$M (Six Months Ended – Unaudited) 30 Jun 2020 30 Jun 2019 % Change and expected credit loss • Recurring revenue down 21% Revenue 44.8 67.5 -34% • Non-recurring revenue down 54% Expenses (52.7) (55.7) -5% • $28
Slide 10: COVID-19 and Revenue
COVID-19 AND REVENUE Revenue • Recurring revenue down 21% • Product revenue down $2.1m • Maintenance revenue down $5.0m • Non-recurring revenue down 54% • Product revenue down $11.9m (Cinema $10.4m) • Services and Development revenue down $1.8m • Revenue provision for credit risk of $1.8m (in additi
Slide 11: COVID-19 and Costs
COVID-19 AND COSTS Costs • Salary sacrifice by Board, executives, and staff 20-30% through Q2 • Wage subsidies in H1 $6m within costs (NZ, Australia, USA, UK and Netherlands) • Non-salary costs down $3m (primarily marketing and travel) • Re-organisation savings in salaries annualised $15m (top end o
Slide 12: Operating Segments
OPERATING SEGMENTS • Core revenue (Cinema and Movio) 30 June 2020 significantly impacted by COVID-19 Additional • Cinema non-recurring revenue NZ$M Cinema Movio Group Corporate Total (primarily license sales) down 57% Companies • Movio recurring revenue holds up well Revenue 28.6 8.0 7.1 1.1 44.8 •
Slide 13: Financial Position
FINANCIAL POSITION • Strong balance sheet maintained • Good cash position $96m • Raised $62.4m in placement and rights issue NZ$M (For the Period Ended - Unaudited) 30 Jun 2020 31 Dec 2019 % Change • Reduced receivables due to lower billing in Q2 better than expected Cash 96.0 19.5 392% collections
Slide 14: COVID-19 and Balance Sheet
COVID-19 AND BALANCE SHEET Equity Raise • Raised $62.4m in placement and rights issue • Well supported by existing retail and institutional holders. Debt • Secured increased bank facility support • Drew down funds, held over at 30 June to increase cash and provide flexibility. Cash and Debtors • Cas
Slide 15: COVID-19 and Customers
COVID-19 AND CUSTOMERS Customers • Proving resilient with no material customer in liquidation or insolvency • Circa 75 marginal cinema sites closed by customers • Supported Vista with better than expected payment of invoices • Strong uptake of new COVID related innovation – social distance seating e
Slide 16: Cash Flow
CASH FLOW • Strong Q1 and better than forecast Q2 NZ$M (Six Months Ended – Unaudited) 30 Jun 2020 30 Jun 2019 % Change collections • Working capital down versus prior Receipts from customers 57.6 74.4 -23% year Payments to suppliers & staff (49.3) (60.5) 19% • COVID related cash support from local a
Slide 17: Operational Highlights
OPERATIONAL HIGHLIGHTS 17
Slide 18: Cinema Segment
CINEMA SEGMENT Vista Cinema provides cinema management software to the world’s largest cinema exhibitors • Cinema reopening kit produced – innovation continues. • Odeon UK (120 sites of a total of 350 sites in Europe) rollout proceeding $28.6M REVENUE GROWTH -39% • Most customers not open March-July
Slide 19: Update on Vista Cinema SaaS Transformation
UPDATE ON VISTA CINEMA SAAS TRANSFORMATION Consulted our Reviewed Priorities Modified Timelines customer base Digital How does the Digital H1 2021 future look? Has + On Budget it changed? Operational Operational 2022 Digital = moviegoer experience (web, mobile, kiosk) Operational = infrastructure an
Slide 20: Update on Vista Cinema SaaS Transformation
UPDATE ON VISTA CINEMA SAAS TRANSFORMATION • Project is on track and progressing well • Based on the impact of COVID-19 and research on customers priorities (spending priorities) we have brought forward some elements of the project to align to these priorities • This will provide some increased oppo
Slide 21: Movio Cinema
Global leader in data-driven marketing, providing products and services to exhibitors, studios and film advertising specialists. $8.0M -$0.2M 1.3b -14% 41% Connections sent Research revenue Growth in Connected Core Revenue EBITDA (emails, SMS, push), 2020H1 vs 2019H1 Moviegoers since 2019H1, -29% vs
Slide 22: Additional Group Companies
ADDITIONAL GROUP COMPANIES MACCS NUMERO REVENUE GROWTH -9% $7.1M Provides world leading theatrical distribution Box Office Reporting software EBITDA • Good H1 revenue -$0.1m • Cushioned impact from COVID-19 • Sony International engagement drives further • Revenue down 7% geographic expansion • Cost
Slide 23: Associate Companies
ASSOCIATE COMPANIES China film industry update Vista China Operating Performance • Cinemas closed on January 26 • 2020 first half revenue down $5.8m (64%) on 2019 • 2020 box office in China significantly • Strong cost cutting, loss $3.7m (Vista share $1.8m) impacted by COVID-19 pandemic • Expectatio
Slide 24: Industry Outlook
INDUSTRY OUTLOOK • Cinemas are re-opening around the world – estimated 70%-80% open • Research shows Moviegoers are keen to return to the theatrical experience with demand strong • Cinema continues to provide a unique experience • New content is key to bring many more people to the cinema – positive
Slide 25: Outlook – Positive
OUTLOOK – POSITIVE • Outlook is more positive than our estimates at the time of the capital raise but still too early for specific guidance for 2020 • Content for cinema is starting to be released providing much-needed impetus to the cinema industry • Cinema is still an economic entertainment destin
Slide 26: Questions
QUESTIONS 26
Slide 27: Thank You
THANK YOU 27
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