Midwich Group Plc · LSE:MIDW
Midwich — Investor Day (October 2022)
38 slides from Midwich's investor day presentation, Oct 5, 2022
Slide 1: Capital Markets Event – Delivering Growth
HEADING CAPITAL MARKETS EVENT Sub-Heading Date Delivering Growth Delivering experiences Beyond expectations 5th October 2022 DELIVERING EXPERIENCES BEYOND EXPECTATIONS Technology on display inside our UK Experience Centre at Innovation House. 1 1
Slide 2: Agenda
HEADING AGENDA • INTRODUCTION Oct 2022 • TEAM PRESENTATIONS Sub-Heading Date • Q&A • TOURS Delivering experiences Beyond expectations Presenters Stephen Fenby Tom Sumner Bobby Swartz Alex Kemanes Mark Lowe Managing Director Managing Director – CEO Managing Director Managing Director – Midwich EMEA S
Slide 3: Agenda – EMEA
MIDWICH GROUP Oct 2022 AGENDA • GROWING OUR ADDRESSABLE MARKET Tom Sumner Managing Director • ADDING VALUE TO GROUP COMPANIES – EMEA 3 3
Slide 4: Growing Our Addressable Market
GROWING OUR ADDRESSABLE MARKET Territories represent around 55% of the global market* * Management view based on Avixa market data. Note this does not denote market share, but the strength of our product offering. 4 4
Slide 5: Increasing Our Market Access
INCREASING OUR MARKET ACCESS Group Revenue by Product Type – H1 2022 H1 Revenue by Region – H1 2022 5% 4% 10% 3.8% Summary of Technology 4.3% Displays 1.7% Projection 7.7% North America 32.2% Broadcast Technical Video UK & Ireland Professional Audio 44% Accessories EMEA Lighting Asia Pacific 28.4% 9
Slide 6: Potential Created
EES, a Midwich Group Company, POTENTIAL CREATED proud to be part of Luz Madrid, illuminating landmarks throughout the city. Providing a new perspective to visitors during the “Festival of Light”. Global AV market size due to grow by 6.7% CAGR through to 2027 according to industry body AVIXA £m 2021
Slide 7: Adding Value to Group Companies
ADDING VALUE TO GROUP COMPANIES Enabling local companies to grow Central Local Expertise / A Vendor Digital Support Peer Group Approach Access Infrastructure • Specialist departmental/ • Departmental • Significant vendor • Focus area for functional knowledge knowledge transfer access for new and enh
Slide 8: Adding Value to Group Companies: Central Support
ADDING VALUE TO GROUP COMPANIES Central Support Facilitating international business • Support for international customers / projects led by our Head of Global Accounts Kevin O’Dowd • Works to build relationships at head office level with our global integrators • Facilitates multi-territory project o
Slide 9: Starin – North America
STARIN – North America Oct 2022 AGENDA Bobby Swartz • STARIN OVERVIEW CEO - Starin • US MARKET FOCUS • INTEGRATION TO THE GROUP 9 9
Slide 10: Key Milestones
KEY MILESTONES 85+ STAFF MEMBERS People Focused 1988 2000 2016 2020 2021 2022 Starin Starin becomes Starin Acquisition Refocus on Realising founded distribution employees buy by the strongest fastest focussed the company Midwich verticals organic Group growth rates in company history 10 10
Slide 11: What Do We Do?
Globally Leading Portfolio WHAT DO WE DO? HIGH SPECIALISED AV DISTRIBUTOR UC EDU SERVICES 11 11
Slide 12: US Market and Opportunity
US MARKET AND OPPORTUNITY US AV market Organic growth Realised H1 2022 Global market share Fastest growing sub $69.6 billion USD potential growth 82% via specialisation markets 36% (UC) and partnership (Zoom/Microsoft) 12 12
Slide 13: Since Joining the Group
SINCE JOINING THE GROUP Intelligent Support 2020 2021 2022 • Covid and Refocus of • Growth and scale adaptation • Employee priorities • Building for scale • Vendors • Market perception • “Care more. Be • Resilience better.” • Starin has received the Commercial Integrator readers award for Best shipp
Slide 14: Investment in People and Scale
HEADING INVESTMENT IN PEOPLE AND SCALE Starin's fresh, vibrant perspectives have begun to shake out the cobwebs of HEADING our industry. And, in so doing, they’ve paved the way for an exciting, profitable future. – Dan Ferrisi, Commercial An agile company structure Integrator • Business model now bu
Slide 15: NMK – Middle East
NMK – Middle East {{{ Oct 2022 AGENDA Alex Kemanes • WHO WE ARE Managing Director • KEY MILESTONES • INTEGRATION TO THE GROUP 15 15
Slide 16: Who We Are
WHO WE ARE 5 Locations 70 STAFF MEMBERS Systems Pro Retail SR I • System Integrators • Broadcast • Listening • Fixed Install • Rental | Event • Portable Systems • Music Production 34 VENDORS The most trusted and customer centric AV distributor in the MEA region. 6 Geographic Reach Dino Drimakis Alex
Slide 17: Value Add Distribution
VALUE ADD DISTRIBUTION END USER AV CONSULTANT SYSTEM INTEGRATOR 17 17
Slide 18: Key Milestones
KEY MILESTONES 1987 2013 2015 2017 2018 2019 2020 Incorporation Dino joins Solution selling Alex joins Qatar office Video Covid Sharjah Neutrik, Shure 2021 Midwich acquisition 18 18
Slide 19: Since Acquisition: Vendor Portfolio Expansion
SINCE ACQUISITION VENDOR PORTFOLIO EXPANSION 19 19
Slide 20: Experience Centre
Experience Centre 21,500 sq ft multi-purpose experience centre with live demonstrations throughout the facility. 950+ visits to date. 20 20
Slide 21: Immersive room in collaboration with Igloo & Epson
Immersive room in collaboration with Igloo & Epson. 21 21
Slide 22: 1300 AV professionals trained throughout 2022
1300 AV professionals trained throughout 2022. Education 22 22
Slide 23: Customer testimonial on NMK training
The best place for people who share a passion for audio and visual equipment. Many of my fellow AV professionals attend regular trainings hosted by NMK across GCC due to the variety of topics covered & impressive profile of trainers. I personally had the privilege of receiving several trainings and
Slide 24: What's Next
24 WHAT’S NEXT Regional Development • Greater regional focus within GCC post covid Greater regional focus within GCC post covid • Countries looking to shift away from oil Countries looking to shift away dependency from oil dependency • Large investments KUWAIT Large investments into into entertainme
Slide 25: UK & Ireland Update
UK & IRELAND UPDATE Oct 2022 AGENDA {{[ Mark Lowe • THE JOURNEY Managing Director, • OUR PERFORMANCE UK & Ireland • ADDING VALUE • THE FUTURE Technology on display inside our UK Experience Centre at Innovation House. 25
Slide 26: UK & Ireland
UK & IRELAND 9 UK 1 3 5 6 1 3 3 Offices in UK & Ireland 2 3 3 4 3 7 8 8 Ireland 9 9 5 2 1 4 7 3 6 £239m 750 UK Experience Centre H1 22 INNOVATION HOUSE STAFF MEMBERS 26
Slide 27: Market Recovery – Long-Term CAGR
MARKET RECOVERY LONG-TERM 6.68% CAGR 31
Slide 28: Rapid Recovery
RAPID RECOVERY VS H1 19: YOY: Revenue +53% Revenue +86% Organic +8% Organic +30.6% Operating profit +119% UK Experience Centre INNATION HOUSE
Slide 29: Passion, Expertise, Integrity
PASSION EXPERTISE INTEGRITY I have been in distribution myself for 27 years almost and I have to say I wish I had had the people Midwich have today. - Wayne Mason, Neat 33
Slide 30: WFH
WFH PASSION, EXPERTISE, INTEGRITY 2000+ Customer meetings 59% of H1 Meetings via video Interactions Up 30% 34
Slide 31: £24M from New Vendors
Globally Leading UC Portfolio 14% £24M FROM NEW VENDORS 35
Slide 32: Innovation House H1 2022
Innovation House H1 2022 • 47,500 sq ft • 1,598 visitors • 214 people trained • 15 events • +£500k, AV equipment 36
Slide 33: Unified Comms and Security & CCTV
Unified 218 £51m Security £20m Comms People H1 22 & CCTV 95 People H1 22 37
Slide 34: Giving Back
THANK YOU fervor, Joutney, mde Norfolk and Waveney
Slide 35: Midwich Group Plc
Midwich Group Plc
Slide 36: Summary
SUMMARY • Proactive & adaptable • Adding value • Enabling growth • Ahead of the market 40
Slide 37: Outlook
OUTLOOK Honest, open, reflective, determined.... extremely customer focused with a passion to • Margin recovery deliver the best for their customers. I’m not sure there is a better partner in the UK. • New vendors – Stephen Patterson, Biamp • Government & education • Unified communications • Consume
Slide 38: Thank You
UK Experience Centre, Innovation House, Bracknell. HEADING Sub-Heading Date Delivering experiences Beyond expectations THANK YOU 42 42