Vista Group International Ltd · NZX:VGL
Vista Group International — FY2018 Earnings Presentation
47 slides from Vista Group International's earnings presentation, Mar 4, 2019
Slide 1: Vista Group 2018 Full Year Results Investor Roadshow Update
For personal use only VISTA GROUP 2018 FULL YEAR RESULTS INVESTOR ROADSHOW UPDATE 4 March 2019
Slide 2: Agenda
AGENDA For personal use only VISTA GROUP SUMMARY KIMBAL RILEY GROUP CHIEF EXECUTIVE FINANCIAL RESULTS RODNEY HYDE CHIEF FINANCIAL OFFICER OPERATIONAL HIGHLIGHTS KIMBAL RILEY GROUP CHIEF EXECUTIVE WILL PALMER CEO MOVIO OUTLOOK Q+A
Slide 3: Vista Group Summary
VISTA GROUP SUMMARY For personal use only A bumper year as Vista Group continues to deliver consistently strong growth and profit. • 23% increase in Revenue – the 5th consecutive year of 20%+ growth • Increase in operating leverage (EBITDA % of revenue) in both Cinema (+6%) and Movio (+18%) • 21% in
Slide 4: Vista Group 2018 Highlights
VISTA GROUP 2018 HIGHLIGHTS For personal use only • Balance sheet remains very strong with low debt and a strong cash position • Vista Cinema global market share of 20+ screens segment increased to 40% • Signed integrated Group agreements with leading global Cinema Circuits – Cineworld and Odeon • C
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS For personal use only TOTAL REVENUE RECURRING REVENUE OPERATING PROFIT $130.7m $79.9m $24.7m (up 23%) (up 24%) (up 21%) EBITDA1 OPERATING CASHFLOW FINAL DIVIDEND $29.2m $27.6m 2.10 (up 17%) (up 150%) CENTS P/SHARE (Total FY18 dividend up 27%) 1EBITDA is a Non-GAAP measure and is
Slide 6: Vista Group - Year Revenue
VISTA GROUP - 5 YEAR REVENUE 140. For personal use only +$24.1M 105. +$18.0M +$23.2M $ MILLIONS 70. +$18.2M 29% CAGR 2014-2018 35. 0. 2014 2015 2016 2017 2018 6
Slide 7: Vista World Share
Vista World Share Vista Cinema percentage of the world market – for cinema exhibition companies with 20+ screens For personal use only 85% CANADA 2,082/2,446 screens 29% EUROPE 6,014/20,497 screens 22% ASIA 48% USA 10,358/46,339 screens 16,505/34,230 screens 58% MIDDLE EAST 1,661/2,886 screens 98% C
Slide 8: Financial Results
For personal use only FINANCIAL RESULTS 8
Slide 9: Trading Performance
TRADING PERFORMANCE For twelve months ended For personal use only NZ$m 31 Dec 2018 31 Dec 2017 % CHANGE Revenue 130.7 106.6 23% Expenses 106.9 87.0 23% Foreign exchange losses / (gains) (0.9) (0.8) Operating Profit 24.7 20.4 21% Net finance revenue / (costs) (0.7) (0.3) Share of loss from associates
Slide 10: Operating Segments
OPERATING SEGMENTS For personal use only CINEMA MOVIO ADDITIONAL GROUP COMPANIES EARLY STAGE INVESTMENTS ASSOCIATES 10
Slide 11: Operating Segments
OPERATING SEGMENTS For personal use only 2018 Additional Group Early Stage NZ$M Cinema Movio Corporate Total Companies Investments Revenue 82.4 22.8 15.0 4.5 5.9 130.7 EBITDA1 25.6 6.2 1.4 0.4 (4.5) 29.2 EBITDA % of revenue 31% 27% 9% 10% (76%) 22% 2017 Additional Group Early Stage NZ$M Cinema Movio
Slide 12: Financial Position
FINANCIAL POSITION For personal use only NZ$M • Strong balance sheet maintained, giving 31 Dec 2018 31 Dec 2017 CURRENT ASSETS capacity to take advantage of new Cash & short term deposits 34.4 21.0 opportunities and development as well as Trade & other receivables 62.3 71.3 support dividend program.
Slide 13: Cash Flow
CASH FLOW For personal use only NZ$M 31 Dec 2018 31 Dec 2017 • Increase in receipts from customers driven by YOY revenue increase combined with improved Receipts from customers 132.4 105.1 debtor recovery. Cash was applied to: • Investment in internally generated software Payments to suppliers & sta
Slide 14: Dividend Proposal
DIVIDEND PROPOSAL For personal use only • 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 final dividend will be 2.10 cents per share representing a total payment of $3.5m • The recor
Slide 15: Vista Group Operational Highlights
VISTA GROUP OPERATIONAL HIGHLIGHTS For personal use only 15
Slide 16: Cinema Segment
REVENUE EBITDA CINEMA SEGMENT $82.4M GROWTH +22% $25.6M GROWTH +29% Vista Cinema provides cinema management software to the world’s largest For personal use only cinema exhibitors • 1013 new sites in 2018 (including 199 sites in China). • Total now 7,202 (161 sites removed from count at half year in
Slide 17: Cinema Segment - Continued (Veezi)
CINEMA SEGMENT - CONTINUED Provides cinema management software to the world’s independent cinema For personal use only exhibitors • 258 new sites bring total site numbers to 901 – including China. • China now with 93 sites, an increase of 72 over 2017. • 14% increase in revenue per site compared to
Slide 18: Cinema Segment - Continued: Drivers for growth
CINEMA SEGMENT - CONTINUED Drivers for growth For personal use only • Strong focus on trans-national ‘super-circuits’ validated by recent wins • Significant interest in cloud version of Vista and increasing opportunities for managed service arrangements • Continued product innovation into new areas
Slide 19: Movio Segment
REVENUE EBITDA MOVIO SEGMENT $22.8M GROWTH +47% $6.2M GROWTH +74% Global leader in data-driven marketing to provide products and services to cinema For personal use only exhibitors, film studios and their media agencies and other specialists in film advertising. Purpose: to connect moviegoers with t
Slide 20: Movio Segment
MOVIO SEGMENT Active Moviegoers Revenue / Active Moviegoer For personal use only (Millions) (NZ cents) Region 2017 2018 2017 2018 USA 24 20 45 86 Rest of World 21 25 23 22 Global 45 45 35 51 Growth Strategy Increase Volume - Active Moviegoers: • Movio brand refresh focused on demonstrable uplift exh
Slide 21: Financial Performance
Financial Performance For personal use only Movio Media 2017 2018 Percent Total Revenue (NZ$) $4.37 m $9.67 m + 121% Research $2.7 m $4.7 m + 74% Direct Campaigns $892 k $2.3 m + 156% Digital Campaigns $766 k $2.7 m + 249% Movio Cinema 2017 2018 Growth Total Revenue (NZ$) $10.6 m $12.4 m +17%
Slide 22: Active Moviegoers
Active Moviegoers For personal use only Increase Volume Active Moviegoers Active Moviegoers (millions) • Movio brand refresh focused on demonstrable uplift Closing Closing exhibitors experience using Movio, with Growth 2017 2018 a view to engaging with the C-level of the remaining top 15 global exhi
Slide 23: Connected Moviegoers US Only
Connected Moviegoers US Only For personal use only 4.7m 2017 vs 8.3m 2018 = Annual growth of 75% Drivers for growth: • Signing of Data Sharing Agreements with existing clients • New sales – remaining top 10 exhibitors • Deployment of the Movio Cinema Non-Member Solution
Slide 24: Movio Cinema Global Coverage
Movio Cinema Global Coverage For personal use only Movio Market Share (20+ Screens) 26% Movio Market Footprint
Slide 25: Direct Campaign Highlights
Direct Campaign Highlights For personal use only
Slide 26: Digital Campaign Highlights
Digital Campaign Highlights For personal use only
Slide 27: Serviceable Obtainable Market (SOM) for Movio Media Digital
Serviceable Obtainable Market (SOM) for Movio For personal use only Media Digital 2019 2021 2023 Average marketing spend per release in North America ¹ $28.5m $29.7m $30.8m Wide release films estimate – 12 per month 144 144 144 Portion of film marketing budgets spent on digital marketing, increasing
Slide 28: Movio Media Research
Movio Media Research For personal use only New Customers Existing Customers
Slide 29: Additional Group Companies Segment
ADDITIONAL GROUP COMPANIES SEGMENT For personal use only REVENUE EBITDA $15M GROWTH +22% $1.4M GROWTH +123% World leading film marketing products Provides world leading theatrical distribution Movie and cinema review and showtime guide • Excellent revenue growth (52%) delivered software • Unique vis
Slide 30: Early Stage Investments Segment
EARLY STAGE INVESTMENTS SEGMENT For personal use only REVENUE EBITDA $4.5M GROWTH +285% $0.4M +$2.2M Software to optimise film forecasting and A platform to share film digital assets & enable Social app to share video reaction to movies scheduling new cinema ticketing sales channels to access and TV
Slide 31: Associate Companies
ASSOCIATE COMPANIES Box office tracking and reporting product For personal use only • International business (outside USA) progressing well with increased coverage and positive EBITDA • New country dashboards live in: Argentina, Bolivia, Indonesia, Malaysia, Mexico, Netherlands, Nigeria, Paraguay, S
Slide 32: Associate Companies
ASSOCIATE COMPANIES Performance For personal use only • Revenue of $NZD20.6m, 19% increase over 2017. • 199 new sites added – 41% from existing customers. Total now 958 sites. • Vista China market share of 20+ screens segment estimated as 17%. • Top 5 circuit Stellar now rolling out – Vista China wi
Slide 33: Outlook
OUTLOOK For personal use only • Recurring revenue base coupled with strong pipeline across Vista Group is expected to support a 6th consecutive year of revenue growth in the region of 20% (excluding consolidation of Vista China) • Very exciting outlook for Movio – in particular Movio Media, with str
Slide 34: Questions
For personal use only QUESTIONS 34
Slide 35: Important Notice
IMPORTANT NOTICE For personal use only This presentation has been prepared by Vista Group International Limited (“Vista Group”). Information in this presentation: • is provided for general information purposes only, does not purport to be complete or comprehensive, and is not an offer or invitation
Slide 36: Thank You
For personal use only THANK YOU 36
Slide 37: Vista Group Investor Roadshow Movio Data Addendum
For personal use only VISTA GROUP – INVESTOR ROADSHOW MOVIO DATA ADDENDUM 4 March 2019
Slide 38: Performance
Performance For personal use only 2018 v 2017 Total Revenue Growth 47% Growth in Connections 22% Growth in Active moviegoers 0% Growth in Revenue per Active Moviegoer 46% Growth in Movio Media revenue 122% Growth in Connected Moviegoers 75% EBITDA Margin 27% Growth in EBITDA 74%
Slide 39: Financial Performance
Financial Performance For personal use only Movio Media 2017 2018 Percent Total Revenue (NZ$) $4.37 m $9.67 m + 121% Research $2.7 m $4.7 m + 74% Direct Campaigns $892 k $2.3 m + 156% Digital Campaigns $766 k $2.7 m + 249% Movio Cinema 2017 2018 Growth Total Revenue (NZ$) $10.6 m $12.4 m +17%
Slide 40: Active Moviegoers
Active Moviegoers For personal use only Increase Volume Active Moviegoers Active Moviegoers (millions) • Movio brand refresh focused on demonstrable uplift Closing Closing exhibitors experience using Movio, with Growth 2017 2018 a view to engaging with the C-level of the remaining top 15 global exhi
Slide 41: Connected Moviegoers US Only
Connected Moviegoers US Only For personal use only 4.7m 2017 vs 8.3m 2018 = Annual growth of 75% Drivers for growth: • Signing of Data Sharing Agreements with existing clients • New sales – remaining top 10 exhibitors • Deployment of the Movio Cinema Non-Member Solution
Slide 42: Movio Cinema Global Coverage
Movio Cinema Global Coverage For personal use only Movio Market Share (20+ Screens) 26% Movio Market Footprint
Slide 43: Direct Campaign Customers
Direct Campaign Customers For personal use only
Slide 44: Digital Campaign Customers
Digital Campaign Customers For personal use only
Slide 45: Serviceable Obtainable Market (SOM) for Movio Media Digital
Serviceable Obtainable Market (SOM) for Movio For personal use only Media Digital 2019 2021 2023 Average marketing spend per release in North America ¹ $28.5m $29.7m $30.8m Wide release films estimate – 12 per month 144 144 144 Portion of film marketing budgets spent on digital marketing, increasing
Slide 46: Movio Media Research Customers
Movio Media Research Customers For personal use only New Customers Existing Customers
Slide 47: Movio
MOVIO Ajuo esn feuosied 105
Vista Group International — FY2018 Earnings Presentation on 6ix