Vista Group International Ltd · NZX:VGL
Vista Group International — FY2017 Earnings Presentation
27 slides from Vista Group International's earnings presentation, Feb 28, 2018
Slide 1: Vista Group 2017 Full Year Results
VISTA GROUP 2017 FULL YEAR RESULTS 28 February 2018
Slide 2: Vista China – Opportunities and increase in equity
• Introduction and 2017 Highlights • Financial Results • Operational update • Vista China – Opportunities and increase in equity • Outlook • Questions 2 2
Slide 3: Vista Group FY17 Summary
VISTA GROUP FY17 SUMMARY • Another great year of growth advancing global leadership for Vista Group o 20% increase in Revenue – the 4th consecutive year of 20+% growth o 57% increase in Operating Profit o 104% increase in Operating Cash Flow o 20% increase in recurring revenue to $64m – 60% of total
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS TOTAL REVENUE RECURRING REVENUE OPERATING PROFIT $106.6m $64.3m $20.4m (up 20%) (up 20%) (up 57%) EBITDA1 OPERATING CASHFLOW FINAL DIVIDEND $25.0m $11.0m 1.74 (up 42%) (up 104%) CENTS P/SHARE (Total FY17 dividend up 28%) EBITDA is a Non-GAAP measure and is defined as earnings be
Slide 5: Introducing Kimbal Riley
INTRODUCING – KIMBAL RILEY • As announced on 24 January Kimbal will take over the role of VGL Chief Executive from 3 April 2018 • Kimbal will take part in the investor call and roadshow to meet major stakeholders • Kimbal has lead Vista Entertainment for the last 4 years, a period of significant gro
Slide 6: Murray Holdaway, Chief Product Officer
MURRAY HOLDAWAY CHIEF PRODUCT OFFICER • Focusing on Group Wide product strategy to improve synergies across Vista Group • Working directly with product managers to assist in product directions • Ensuring we maximise the commercial value of our products • Meeting more with customers and industry to b
Slide 7: Operating Segments
OPERATING SEGMENTS CINEMA MOVIO ADDITIONAL GROUP COMPANIES EARLY STAGE INVESTMENTS ASSOCIATES
Slide 8: Trading Performance
TRADING PERFORMANCE For twelve months ended NZ$m 31 Dec 2017 31 Dec 2016 % Revenue 106.6 88.6 20.3% Expenses 87.0 74.2 17.3% Foreign exchange losses / (gains) (0.8) 1.4 Operating Profit 20.4 13.0 56.9% Other Revenue / (costs) (3.6) (1.1) excluding capital gain on 2016 China transaction Profit Before
Slide 9: Vista Group – Revenue Analysis
VISTA GROUP – Revenue Analysis REVENUE ANALYSIS 20% REVENUE GROWTH 120 100 OVER 2016 80 $m's 21% 60 Other 40 Maintenance INCREASE IN VALUE OF 20 RECURRING REVENUE OVER 2016 TO $64M License Fees 0 2013 2014 2015 2016 2017 9
Slide 10: Operating Segments
OPERATING SEGMENTS 2017 Additional Group Early Stage NZ$M Cinema Movio Companies Investments Corporate Total Revenue 67.6 15.5 12.3 1.2 10.0 106.6 EBITDA 19.8 3.6 0.6 (1.7) 2.7 25.0 2016 Additional Group Early Stage NZ$M Cinema Movio Companies Investments Corporate Total Revenue 62.1 11.3 12.1 0.6 2
Slide 11: Financial Position
FINANCIAL POSITION NZ$m 31 Dec 2017 31 Dec 2016 Current Assets • Strong balance sheet maintained giving capacity to Cash & short term deposits 21.0 21.3 take advantage of new opportunities and development Other receivables 71.3 73.9 as well as support dividend program 92.3 95.2 Non Current Assets •
Slide 12: Cash Flow
CASH FLOW For twelve months ended NZ$m 31 Dec 2017 31 Dec 2016 Receipts from customers 105.1 69.7 • Strong cash receipts from trading drives increase in operating cash flow Cash was applied to: Payments to suppliers (87.1) (58.5) • Investment activity includes investment in Senda, Tax & interest (7.
Slide 13: Dividend Proposal
DIVIDEND PROPOSAL • The directors have resolved to pay a final dividend at the top of the policy range (50%) and that the dividend will carry full imputation credits • The value of the dividend will be 1.74 cents per share representing a total payment of $2.9m • The record date for the dividend is 5
Slide 14: Vista Group Operational Highlights
VISTA GROUP OPERATIONAL HIGHLIGHTS 14
Slide 15: Cinema Segment
CINEMA SEGMENT Vista Cinema provides cinema management software to the world’s largest cinema exhibitors • 793 new sites in 2017 bringing total to 6350 • New markets — Brazil and Italy • 93 installed countries - increase of 11 • 8 out of the 10 largest cinema exhibitors use Vista Cinema within their
Slide 16: Cinema Segment - continued
CINEMA SEGMENT - continued Provides cinema management software to the world’s independent cinema exhibitors • 112 sites bring site numbers to 643. 8% increase in revenue per site. • Release of new chargeable additional modules, including Kiosk and Veezi Voucher & Gift Card Manager • New business par
Slide 17: Cinema Segment - Drivers for Growth
CINEMA SEGMENT - continued DRIVERS FOR GROWTH • Cloud version for Vista Cinema on track with first modules • Strong expectation of growth in China delivered Q1 2018. Expectation of new demand for this product • Legislative changes driving demand in France • Continued product innovation meeting new m
Slide 18: Movio Segment 2017 Performance Metrics
MOVIO SEGMENT Global leader in data driven marketing to provide products and services to cinema exhibitors, film studios and their media agencies and other specialists in film advertising Purpose – to connect moviegoers with their ideal movie • Major customer growth in Latin America and Europe for M
Slide 19: Movio Segment Growth Strategy
MOVIO SEGMENT GROWTH STRATEGY • Increase active moviegoers held by Movio Active Moviegoers Revenue/Active o Increase Movio Cinema users including non Vista Cinema (millions) Moviegoer (NZD cents) users o Increase access to online moviegoers outside direct loyalty 2016 2017 2016 2017 membership USA 2
Slide 20: Additional Group Companies Segment
ADDITIONAL GROUP COMPANIES SEGMENT World leading film marketing products • Strong growth in revenue and EBITDA • Created 46% more movie destination sites (1,300) in 2017 • 87 of the top 100 grossing movies used the Powster Movie platform with total site visits up 290% to 422m • Opened LA studio and
Slide 21: Early Stage Investments Segment
EARLY STAGE INVESTMENTS SEGMENT Software to optimise film forecasting and scheduling • Strong 2nd half performance with high percentage of recurring revenue • Increased pipeline and closure of 2 significant contracts for 2018 implementation • Market opportunity large as penetration of Vista Cinema c
Slide 22: Associate Companies
ASSOCIATE COMPANIES Box office tracking and reporting product • Reached $1M NZD ARR by Q4 2017 • Targeting positive EBITDA by end of 2018 • Transitioning Australasian trial users to full commercial terms through 2018 • Customer feedback on product is very positive • China cinema data being reported
Slide 23: China – A Potential Growth Engine
CHINA – A POTENTIAL GROWTH ENGINE • Revenue of NZ$17m, an increase of 71% over FY16 • Vista Cinema 12% of large competitive market • Veezi gained first sites in China in 2017 • $21m NZD cash repatriated to New Zealand to date. GROWTH • Third Party revenue (Vista share of online ticket sales) – alrea
Slide 24: Vista China Transaction Details
VISTA CHINA TRANSACTION DETAILS • Execution of strategy to consolidate or achieve control of our investments. • Vista Group to acquire 7.9% of the equity in Vista China which was held by WePiao – Vista Group and WePiao will each own 47.5% of Vista China. • Vista China will become a controlled entity
Slide 25: Outlook
OUTLOOK • Strong pipeline across the Group supports a 5th consecutive year of 20+% revenue growth • New CEO and Chief Product Officer brings new focus to each role to benefit the Group overall • Penetration of new markets and emerging large markets provides significant growth opportunities across al
Slide 26: Questions?
QUESTIONS?
Slide 27: 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, purch
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