Vista Group International Ltd · NZX:VGL
Vista Group International — FY2015 Earnings Presentation
37 slides from Vista Group International's earnings presentation, Mar 7, 2016
Slide 1: Vista Group Update March 2016
Vista Group Update March 2016
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, purch
Slide 3: Introduction Operating performance Financial performance
> Introduction > Operating performance > Financial performance > Growth strategies PAGE 3
Slide 4: Vista Group – Introduction
VISTA GROUP – INTRODUCTION
Slide 5: About us
About us Group Chief Executive Officer Director - Commercial & Legal Murray Holdaway Brian Cadzow 19 years with Vista 19 years with Vista Founder Founder PAGE 5
Slide 6: Businesses within the Vista Group
BUSINESSES WITHIN THE VISTA GROUP The Vista Group PAGE 6
Slide 7: Vista Group - the history
Vista Group - the history 2008 >90% of box Office in Canada goes through Vista 1996 JV Village Force Cinemas 2003 Infinity sells 50% shareholding 2013 Vista reaches agreement and Madison Systems to Vista management to buy remaining stake in Movio established to produce point of 2010 Vista management
Slide 8: Timeline post the IPO
Timeline post the IPO November 2014 Vista March 2015 Ticketsoft July 2015 MACCS December 2015 Cinema completes acquisition in the USA signs Warner Bros in Share Dimension rollout to Regal completed USA acquisition Entertainment’s 582 announced sites in the USA August 2014 Vista May 2015 CCG August 2
Slide 9: Vista Group update
Vista Group update > Vista Group founded 1996 and listed on the NZX and ASX in Vista Entertainment August 2014 with a market capitalisation of $187.5m at listing and Solutions now at ~$400.0m Ticketsoft acquisition 100% > Global footprint of sales and support with 350+ staff across 7 offices in Auck
Slide 10: Recent highlights
Recent highlights > Strong year on year performance with revenue up 39% and EBITDA up 60% on FY14 > Performance compared to PFI NZ$m 2015 Actual 2015 PFI 2014 Actual Revenue 65.4 61.5 6% 47.2 39% EBITDA 15.1 13.2 14% 9.4 61% Adjusted Net Profit1 9.0 8.1 4.0 125% Highlights > Strong performance again
Slide 11: Chinese transaction - rationale
Chinese transaction - rationale > Vista Group is bringing WePiao, a scale local Chinese operator, into Vista China as a partner to secure Vista China’s position in the China film market > WePiao and the wider Wechat/Tencent Group will support Vista China’s growth in the world’s fastest growing cinem
Slide 12: Chinese transaction – key terms
Chinese transaction – key terms > WePiao investment: > WePiao to acquire existing shares in Vista China for cash > WePiao to subscribe for new shares in Vista China, providing growth capital to the business > WePiao acquiring 2.0% of new shares in Vista Group issued at a one month VWAP share price >
Slide 13: China box office
China box office > The China box office has grown strongly over the past five years and is forecast to overtake the US in box office revenue by 2017 Number of screens per million people (2014) > China box office grew at 40% per annum from 2009 to 2014 160 149 > In contrast the global box office grew
Slide 14: Vista Group – Operating Performance
VISTA GROUP – OPERATING PERFORMANCE
Slide 15: Vista Entertainment Solutions
Vista Entertainment Solutions > Another very strong performance > 461 sites installed in 2015 (excluding ~400 Ticketsoft and CCG sites Vista Entertainment Solutions installed sites which are in the process of being converted to Vista software) 5,000 > Regal’s commitment to Vista strengthened further
Slide 16: Vista Entertainment Solutions
Vista Entertainment Solutions Large and/or high growth markets Country Market size1 Market update China 31,627 Good base but low penetration in large market USA/Canada 43,265 Strong market share (40%+) but still significant upside Japan 3,318 Distributor appointed Korea 2,077 No presence currently F
Slide 17: Veezi
Veezi > 350 total installed sites by 31 December 2015 – more than 100 over PFI forecast > Revenue building with additional revenue from on-line fees, and additional chargeable modules, has increased average revenue per site > Certification for Veezi granted by Chinese authorities in 2015 > Opportuni
Slide 18: Movio
Movio > Movio Cinema > 37 Circuits using Movio Cinema – up from 20 at start of 2015 Member data held in Movio database > 81 million members in the Movio database – the largest database of cinema 90 going individuals in the world 81 80 > 745 million emails sent in 2015 – up 53% 70 > SMS integration i
Slide 19: MACCS
MACCS > Core business performed well in 2015, with 10 new customer installations of The World’s Leading MACCS Film Distributor Software > Now installed in 45 territories > Signed Warner Bros. in USA > Significant product development being undertaken and full implementation expected in second half of
Slide 20: Numero
Numero > Numero provides fast and accurate box office numbers for film studios, distributors and cinema exhibitors > Now collecting box office results for over 99% of the Australasian market > Launched LIVE box office reporting service delivering up to the minute results from major multiplexes > 7 y
Slide 21: Vista Group – Financial Performance
VISTA GROUP – FINANCIAL PERFORMANCE
Slide 22: Pro Forma financial overview
Pro Forma financial overview NZ$000 (Year ended 31 FY11 FY12 FY13 FY14 FY14 FY15 December) Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma Actual Total Revenue 25.0 33.7 38.7 50.7 47.2 65.4 EBITDA 4.5 8.8 9.0 9.62 9.4 15.1 Adjusted Net Profit3 4.0 9.0 Note: EBITDA is a non-GAAP profit measure defi
Slide 23: Trading Performance
Trading Performance NZ$m 2015 Actual 2015 PFI 2014 Actual Revenue 65.4 61.5 6.3% 47.2 38.6% Operating Expenses 55.3 49.7 11.3% 41.6 32.9% Operating Profit 10.2 11.8 (13.6%) 5.6 82.1% During the year the 2014 actual was restated - - from $4.0m to $8.2m due to an audit review Net Profit attributable t
Slide 24: Financial Position
Financial Position NZ$m 2015 Actual 2015 PFI 2014 Actual Current assets Cash and short term deposits 27.3 43.5 30.7 > Higher receivables at year end due to higher billing in last Other receivables 30.5 19.6 22.1 quarter and larger December quarter maintenance invoicing 57.8 63.1 52.8 > Cash balance
Slide 25: Cash Flow
Cash Flow NZ$m 2015 Actual 2015 PFI 2014 Actual Cash received from trading 62.8 60.5 48.2 Cash applied from trading Operating expenses 53.0 44.0 39.3 > The high sales in the last quarter and larger Tax and interest 3.5 3.1 2.2 December maintenance renewals resulted in Listing costs 1.8 higher sales
Slide 26: Long Term Incentive Plan
Long Term Incentive Plan > Vista Group introduced a Long Term Incentive Plan (LTI) during 2015 > Recognises the value of the Vista Group employees and the contribution they make to the ongoing growth of the business > Provided to the broader senior management team (excl. founders) and other identifi
Slide 27: Dividend Policy
Dividend Policy > Dividend policy for FY15 to remain as per Prospectus guidance > That is there is no intention to pay a dividend on the FY15 results > Dividend policy for Vista Group has be reviewed and set for the future > Dividend policy for FY16 and beyond is to distribute 30% to 50% of Net Prof
Slide 28: Key Points
KEY POINTS
Slide 29: Growth strategies
Growth strategies Vista Entertainment Solutions Expansion of market share Growth market share in key markets; US now over 40%, UK and Europe, China market > shares have also grown Expansion into new markets > New countries include France, Belgium, Switzerland, Indonesia, Scandinavia > Distributo
Slide 30: Outlook
Outlook > Historic annual growth for the Group has been in the 20% - 30% range – we would expect this to continue > Strong start to 2016 year for Vista Cinema, many good prospects > Veezi expected to grow at an exponential rate with addition of France, China and Indian markets > Movio to continue sa
Slide 31: Appendix
APPENDIX
Slide 32: Wepiao
Wepiao > Founded and headquartered in Beijing > WePiao is backed by Tencent Holdings Limited (Market capitalisation of ~US$180 billion), along with the China Cultural Investment Fund and other investors, including some leading Chinese cinema chains. > WePiao brings scale in the form of its smart pho
Slide 33: Vista Cinema
Vista Cinema > Vista Cinema is the leading cinema software in the world, with software installed in over 3,000 sites in more than 60 countries > Vista Cinema provides a suite of modules that operate across the cinema > Vista Cinema software is targeted at operators who have 20 or more screens PAGE 3
Slide 34: Veezi
Veezi VEEZI (Vista Easy) Cloud based - Download, install and set up from the website in 60 minutes 3,000 independent > > SaaS model Handcrafted for the Independent Cinema > cinemas in the US alone Market - Cinemas < 20 screens 20,000+ > > Rationale and 1 > Significant market opportunity estimates in
Slide 35: Movio
Movio > High growth big data analytics - SaaS model > The only 100% film focused Customer Intelligence and Campaign Management solution on the market > Seek to fundamentally change the way cinema exhibitors and distributors analyse and promote films > Fully integrated campaign creation, management a
Slide 36: MACCS
MACCS > MACCS software manages core financial, logistic, administrative and decision making processes for distributors within the film industry > MACCS is the largest provider, outside the US of film distribution software > Growth expected to come from > Expansion into the USA with the establishment
Slide 37: Numero
Numero Distributors > New start up – first customer launch 2015 > Numero now collects box office results for over 99% of the Australasian market > Box office market analytics for studios (then media) > Faster, easier and greater functionality than major competitor > Leveraging off Movio Big Data tec
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