Vista Group International Ltd · NZX:VGL
Vista Group International — Macquarie Conference 2016
33 slides from Vista Group International's conference presentation, May 2016
Slide 1: Macquarie Conference Presentation May 2016
Macquarie Conference Presentation May 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: Agenda
> Group Update > Financial performance > Operating performance > China JV Transaction > Growth strategies PAGE 3
Slide 4: Vista Group – Update
VISTA GROUP — , UPDATE
Slide 5: VGL Update
VGL UPDATE • Founded1996 and listed on NZX/ASX in August 2014 with market cap of 187M & now at ~470M VISTA ENTERTAINMENT SOLUTIONS • 400+ staff & 8 offices - Auckland, Sydney, London, LA, Dallas, Holland, Shanghai, Romania • Completed the acquisition of Ticketsoft in 2015, a competing solution to Vi
Slide 6: Vista Group companies within the film industry value chain
VISTA GROUP COMPANIES WITHIN THE FILM INDUSTRY VALUE CHAIN PRODUCTION DISTRIBUTION CINEMA EXHIBITION MOVIEGOER
Slide 7: 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 8: Vista Group – Financial Performance
VISTA GROUP – FINANCIAL PERFORMANCE
Slide 9: 2015 Financials and PFI comparison
2015 Financials and PFI comparison > 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
Slide 10: Pro Forma financial overview
Pro Forma financial overview NZ$000 (Year ended 31 FY11 FY12 FY13 FY14 FY14 FY15 December) Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma Actual Total Revenue 25.0 33.7 38.7 50.7 47.2 65.4 EBITDA 4.5 8.8 9.0 9.62 9.4 15.1 Adjusted Net Profit3 4.0 9.0 Note: EBITDA is a non-GAAP profit measure defi
Slide 11: Financial Position
Financial Position NZ$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 12: 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 13: 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 been reviewed and set for the future > Dividend policy for FY16 and beyond is to distribute 30% to 50% of Net Pr
Slide 14: 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 15: Vista Group – Operating Performance
VISTA GROUP – OPERATING PERFORMANCE
Slide 16: 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 17: 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 18: Veezi
Veezi > 350 total installed sites by 31 December 2015 – more than 100 over PFI forecast – now over 400 > 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 2
Slide 19: 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 20: 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 21: 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 22: Share Dimension
SHARE DIMENSION • Key product is Cinema Intelligence • Business Intelligence for Exhibitors – Big Data analysis • Optimise film performance in a cinema environment • Extract historical information from BO systems (Vista Cinema and others) • Build forecasting models for film performance at a site lev
Slide 23: Powster
POWSTER • Provides world-leading film marketing products including interactive content to promote films • POWSTER Movie Platform: • Marketing platform for movie studios, powering the world’s biggest blockbusters • One destination per film with all cinemas and show-times listed • Official platform fo
Slide 24: Flicks
FLICKS • Authoritative Australasia movie & cinema guide • Moviegoer access nationally for every movie playing; + cinemas, session times, booking links, videos & trailers, reviews (user & critical) + editorial from Australasia’s best industry contributors • NZ’s no. #1 film buff port-of-call – film w
Slide 25: China JV Transaction
CHINA JV TRANSACTION
Slide 26: 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 (2015) > China box office grew 48.7% from 2014 to 2015 160 149 > In contrast the global box office grew at 5% per
Slide 27: 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 (the owners/developers of QQ and WeChat) will support Vista China’s gr
Slide 28: 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 29: Growth and Outlook
GROWTH AND , OUTLOOK
Slide 30: Growth strategies – since IPO
Growth strategies – since IPO 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
Slide 31: Growth strategies – Acquisitions
Growth strategies – Acquisitions Cinema Intelligence/ Share Dimension Sell into Vista Customer Base > Build market share across the Vista customer base. Integrate to Veezi to create scheduling service for smaller cinemas Build out new products > Create enhanced offerings around the forecasting engin
Slide 32: 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 33: Questions
QUESTIONS
Vista Group International — Macquarie Conference 2016 on 6ix