Videndum PLC · LSE:VID
Videndum — The Vitec Group — Investor Day (April 2015)
123 slides from Videndum's investor day presentation, Apr 22, 2015
Slide 1: Investing for Growth
The Vitec Group plc Investing for Growth > 22 April 2015
Slide 2: Disclaimer
The Vitec Group plc Disclaimer This presentation may contain “forward-looking statements” about The Vitec Group plc’s (the “Group” or the “Company”) plans and targets. By their nature, forward-looking statements involve risks and uncertainties because they relate to future events and depend upon cir
Slide 3: Stephen Bird, Group Chief Executive
Stephen Bird Group Chief Executive Investing for Growth
Slide 4: Agenda
The Vitec Group plc Agenda 1. Strategic Update – Stephen Bird 2. Financial Performance – Paul Hayes 3. Broadcast Division – Matt Danilowicz and Martin Vann 4. Q&A - Break - 5. Photographic Division – Marco Pezzana and Adam Mirabella 6. Acquisition Strategy – Martin Green 7. Summary – Stephen Bird 8.
Slide 5: What we do
The Vitec Group plc What we do Broadcast Division Photographic Division > Equipment and Services > Equipment [] Our ultimate customer is primarily a camera operator Page 5
Slide 6: What we do: Broadcast Division
The Vitec Group plc What we do Broadcast Division Pedestals Lighting Monitors Wireless Tripods Prompters Specialty Cameras Transmitters Mobile Power Robotics Evolving product mix – from capturing to sharing Page 6
Slide 7: What we do: Photographic Division
The Vitec Group plc What we do Photographic Division Bags Tripods Digital Editing LED Lighting Tripod Heads Software Lighting Accessories Evolving product mix – from capturing to sharing Page 7
Slide 8: Our key brand portfolio
The Vitec Group plc Our key brand portfolio Broadcast Division Photographic Division * * National Geographic bags are manufactured and distributed under licence Vitec has a portfolio of market leading world class brands Page 8
Slide 9: Competitive landscape
The Vitec Group plc Competitive landscape Broadcast Camera Supports Cine Camera Supports On Set Wireless Prompters Photographic Tripods 3x 2x 13x 7x 5x 55% 60% 90% 55% 31% Batteries LED Lights Photographic Bags 25% 7% 5% Vitec holds strong positions in its niche product categories Page 9 Vitec manag
Slide 10: NAB Video
The Vitec Group plc NAB Video Page 10
Slide 11: Where we operate
The Vitec Group plc Where we operate > Sites in 11 countries; sell into 100+ countries 2014 Revenue > Sales: UK accounts for only 9% of revenue 6% 17% 31% Europe North America APAC Rest of the World 46% US Japan China Costa Rica UK Netherlands Germany Singapore France Italy Brazil Vitec manufacturin
Slide 12: Strategy and objectives – 2011
The Vitec Group plc Strategy and objectives – 2011 > In 2011 we laid out four key milestones to drive shareholder value: 1. Deliver a growth strategy 2. Improve margins 3. Pursue a disciplined acquisition strategy 4. Strong cash generation Page 12
Slide 13: How we have performed
The Vitec Group plc How we have performed Target Progress Result Deliver growth strategy > Expanded addressable markets > Increased market share > Successfully launched new products Improve operating margins > From 8.9% (2010) to 12.5% (2014) Successful acquisition and integration of new busine
Slide 14: Strategy 2015
The Vitec Group plc Strategy 2015 1. Improve the core by focusing on broadcast and photographic markets > Allocate resources to fast growing independent content creator segment > Increase focus on content-sharing opportunities 2. Increase resources, brand presence and sales in APAC 3. Continue to ma
Slide 15: Strategy 2015 – how Vitec is changing
The Vitec Group plc Strategy 2015 – how Vitec is changing Enablers New Product > Significantly more effective NPD process Development > Increased share of total revenue from electronic and software Technology focused products > Evolving from engineering-led to marketing-led business Organisation > M
Slide 16: Paul Hayes, Group Finance Director
Paul Hayes Group Finance Director Investing for Growth
Slide 17: Financial Overview
The Vitec Group plc Financial Overview > Vitec has been strengthened through Operating Profit* (£m) Operating Margin* (%) a number of self-help initiatives 45 14% 12% > Exited from non-core businesses 40 10% > Streamlined & restructured 35 8% > Integrated some great acquisitions 6% 30 4% > Significa
Slide 18: Vitec has streamlined and strengthened its operations
The Vitec Group plc Vitec has streamlined and strengthened its operations > Complex restructuring has been delivered to plan: > Transferring certain manufacturing from UK to Costa UK Rica Italy US > Streamlining activities in UK, APAC Israel & US Costa Rica > One-off restructuring costs of £14.1m >
Slide 19: Costa Rica
The Vitec Group plc Costa Rica > Operations commenced in 1985 and significantly expanded in 2013 > World class facility based in Cartago, close to San José > 5,500 square metres plant > 190 employees > Manufactures Sachtler, Vinten, OConnor, and more recently some Manfrotto products Page 19
Slide 20: Costa Rica video
The Vitec Group plc Costa Rica video Page 20
Slide 21: Performance has benefited from self-help & acquisitions
The Vitec Group plc Performance has benefited from self-help & acquisitions 45 Acquisitions > Profits have grown since & Disposals FX 2010 despite market and 40 currency headwinds £8.7m Self-Help > Self-help initiatives have 35 (£1.3m) delivered £17.1m of profit 30 Volume & Mix £10.2m Restructuring
Slide 22: Cash Utilisation
The Vitec Group plc Cash Utilisation > Net debt at 31 December 2010 of £28.1m; net debt to EBITDA 1.0x Acquisitions & Free Cash Flow* Dividends Restructuring Disposals £78.8m £37.4m £11.1m £64.5m • Strong free cash flow, after investing • Dividend increased • Delivered £10.2m • Acquisitions are in a
Slide 23: Clear Capital Allocation Policy
The Vitec Group plc Clear Capital Allocation Policy > Maintain strong cash generation 1. Reinvest to drive organic growth > Continue to invest in capital and new product development 2. Progressive dividend policy > Supported by 2.3x dividend cover 3. Disciplined approach to > Clear strategic and fin
Slide 24: Financial Review: Summary
The Vitec Group plc Financial Review: Summary > Margins improved with the benefit from self-help initiatives > Significant investment in new product development > Successful acquisition strategy is being delivered > Strong balance sheet and clear capital allocation policy > Vitec is streamlined and
Slide 25: Matt Danilowicz, Divisional CEO Broadcast Division
Matt Danilowicz Divisional CEO Broadcast Division Investing for Growth
Slide 26: Enhancing the science and quality of the media production experience
The Vitec Group plc Enhancing the science and quality of the media production experience Page 26
Slide 27: Broadcast: Division Structure
The Vitec Group plc Broadcast: Division Structure Broadcast Division Production Creative Production Equipment Solutions Services Page 27
Slide 28: Production Equipment
The Vitec Group plc Production Equipment Page 28
Slide 29: Production Equipment
The Vitec Group plc Production Equipment > Anton/Bauer > Litepanels > Artemis > OConnor > Autocue > Sachtler > Autoscript > Vinten Page 29
Slide 30: Creative Solutions
The Vitec Group plc Creative Solutions Page 30
Slide 31: Creative Solutions
The Vitec Group plc Creative Solutions > Teradek > Paralinx > SmallHD Page 31
Slide 32: Production Services
The Vitec Group plc Production Services Page 32
Slide 33: Production Services
The Vitec Group plc Production Services > US Services > Bexel Global Broadcast Solutions > Project rentals for major sports events > Engineered systems & solutions > European Services > Camera Corps > Teleprompter hire Page 33
Slide 34: Television: Disruption = Change = Opportunity
The Vitec Group plc Television: Disruption = Change = Opportunity New Screens Broadcasters outsourcing to stay competitive Broadcast must focus on News & Democratization Live Sports Shorter of Media Events equipment life-cycles Explosion in demand for content Independent content creators a.k.a. “sho
Slide 35: Explosion in content creation driving demand for camera peripherals
The Vitec Group plc Explosion in content creation driving demand for camera peripherals Broadcast Division is perfectly poised to exploit the new opportunity > 300 hours of content uploaded to Google each minute (self-reported, 2015) > Content creators more popular than TV celebrities among teenager
Slide 36: Independent Content Creators are increasing across all markets
The Vitec Group plc Independent Content Creators are increasing across all markets Broadcast Division has the affordable, professional tools they require > Global Box Office growing 5.4% annually, with big growth in developing markets (PwC, 2014) > Netflix, Amazon commissioning independent productio
Slide 37: New technologies driving demand for new products
The Vitec Group plc New technologies driving demand for new products > Low-cost camera unit sales have expanded dramatically over the last five years, leading to increased demand for peripherals > Ultra High Definition TV, H.265 encoding, new camera sensors are driving competition among content crea
Slide 38: Growing demand for live sports coverage is driving outsourcing
The Vitec Group plc Growing demand for live sports coverage is driving outsourcing Broadcast’s Bexel Global team is the top provider of project rentals > 97% of sports is watched live, versus 75% for all other programming (Nielsen, 2012) > Growing demand for remote production equipment (Devoncroft,
Slide 39: Broadcast Division is defining a new content creation ecosystem
The Vitec Group plc Broadcast Division is defining a new content creation ecosystem Routing Playout Acquisition Post Master Monitor Viewing Infra- Audio Storage & & Production Production Control & Test devices structure Delivery The new workflow for independent content creators eliminates many tradi
Slide 40: Broadcast now has the strategy, structure and talent to win
The Vitec Group plc Broadcast now has the strategy, structure and talent to win > The senior leadership team now comprises industry veterans drawn from the top businesses in our industry (Avid, Vizrt, Grass Valley - Belden, Autodesk, 20th Century Fox) Martin Vann Kara Vega Graham Sharp Halid Hatic N
Slide 41: Broadcast Growth Plan
The Vitec Group plc Broadcast Growth Plan Three strategies will deliver significant growth 1. Enhance our core products > We have launched product expansions in all our major categories that will exploit the trend towards lower cost, “consumer-like” simplicity, optimized fit-for-function, and sharin
Slide 42: Strategy #1: Enhance our core products
The Vitec Group plc Strategy #1: Enhance our core products Production Prompters Supports Lighting Mobile Wireless & Automation Power Monitors Through the Autocue New Tripod and Astra 4x Digital Batteries New iterations lens acquired Head concepts shipping, 1x and Chargers of Vidiu bonded processing,
Slide 43: Broadcast Strategy #2: Geographic Expansion
The Vitec Group plc Broadcast Strategy #2: Geographic Expansion Division sales & Total market sales percentages vs. Gross Domestic Opportunities & Actions Product, by region > Asian expenditures lag GDP: a clear opportunity for growth! > Our international footprint is well- established in emerging m
Slide 44: Broadcast Strategy #3: Channel Expansion
The Vitec Group plc Broadcast Strategy #3: Channel Expansion Value Strategic Relationship selling Broadcast Independent Content Creators Reseller & Distribution Channels Prosumer Web & e-Commerce Volume Capabilities > World class CRM systems, online web content, social media marketing, and digital r
Slide 45: Martin Vann, Global Sales & Marketing
Martin Vann Senior Vice President, Global Sales & Marketing Investing for Growth
Slide 46: Focused on Today's and Tomorrow's Users
The Vitec Group plc Focused on Today’s and Tomorrow’s Users Utilize Technology to Upskill the User by Empower New Automating Simple Workflows and Task Powering Functionality The Next Generation Deliver Innovative, Move To More Stylish, Ergonomic Software and and Affordable Integrated Solutions Solut
Slide 47: Today's Production Studio
The Vitec Group plc Today’s Production Studio Lighting manually configured Multi-person operation No integrated control Multiple monitors and information devices Basic Robotics Cables and Manual everywhere camera Prompting only operation displays script Page 47
Slide 48: Tomorrow's Production Studio
The Vitec Group plc Tomorrow’s Production Studio Wirelessly Wireless video Head up display prompter controlled LED transmission with information widgets lighting reduces installs Single, intuitive interface Automated shot tracking & focus High power batteries Complete, Inductive One man charging ope
Slide 49: Mobile Power
Mobile Power
Slide 50: Anton/Bauer video
The Vitec Group plc Anton/Bauer video Page 50
Slide 51: New Product Initiative: Mobile Power
The Vitec Group plc New Product Initiative: Mobile Power Affordable, technically superior batteries for all applications: > The safest batteries available #1 > The best and most accurate LCD 25% Market Share > Deliver long life and superior performance $80m > The most efficient chargers available Co
Slide 52: Lighting
Lighting eS
Slide 53: New Product Initiative: Lighting
The Vitec Group plc New Product Initiative: Lighting Continuing to lead the LED revolution in form and function: > Visually accurate Daylight, Tungsten and Variable Colour Balanced Fixtures 7% > Select bin, high performance LEDs, superior colour reproduction > High colour rendition (CRI) and TLCI ra
Slide 54: Camera Supports and Robotics
Camera Supports and Robotics
Slide 55: New Product Initiatives: Camera Supports
The Vitec Group plc New Product Initiatives: Camera Supports Three brands providing best in class equipment for all applications News > OConnor – supports 90% of top films > Vinten – the most trusted in Sports and Studios > Sachtler – the most used news Broadcast tripod Shared Values Largest install
Slide 56: Robotics and Production Automation
The Vitec Group plc Robotics and Production Automation Every major Broadcaster relies on Vinten Robotics for remote studio operation New, smaller studios being built – the studios of the future: > Single operator > Automate simple camera tasks > Auto Shot composition > Tracking > Auto focus > Lens c
Slide 57: Prompting
Prompting > autoscript a clearer picture /‘Nutocue
Slide 58: Prompting
The Vitec Group plc Prompting The most complete range on the market: Starter Series – everything you need in a box > iPad, 10” and 17” small solutions Professional Series – professional studio environments on a tighter budget > 12” and 17” solutions E.P.I.C. – the biggest, brightest and best > 21” s
Slide 59: Driving Sales & Customer Satisfaction
The Vitec Group plc Go To Market Strategy Direct, Partner and e-Commerce Sales Channels Provide Variety of Align Product Service SLA’s and Design, Margin and Programs Sales Driving Sales & Methodologies Customer Key Sales and Marketing Satisfaction Utilize Targeted Events and Online Relationships wi
Slide 60: Joint Initiatives
The Vitec Group plc Proof Point: National Association of Broadcast (NAB) Show Joint Initiatives Joint initiatives launched with Manfrotto, OEM’s Sales New Channel Program for Multi-Tier Distribution Product New Lighting, Mobile Power and Monitors Page 60
Slide 61: Creative Solutions
Creative Solutions 7 O) © , TERADEK , @PARALINX SMAIIHD
Slide 62: Nicol Verheem video
The Vitec Group plc Nicol Verheem video Page 62
Slide 63: A new horizon for Vitec Broadcast…
The Vitec Group plc A new horizon for Vitec Broadcast… > We are completely innovating our core product families > Our newly acquired technologies are massively expanding our appeal in content creation and sharing > Our leadership comprises the most experienced senior insiders in the broadcast indust
Slide 64: Marco Pezzana, Divisional CEO Photographic Division
Marco Pezzana Divisional CEO Photographic Division Adam Mirabella Senior VP Americas Investing for Growth
Slide 65: Digital System Cameras (DSCs)
The Vitec Group plc What we do: the cameras that we accessorize Digital System Cameras (DSCs) Page 65
Slide 66: What we do: premium camera accessories
The Vitec Group plc What we do: premium camera accessories Page 66
Slide 67: Accessories Market – channel evolution
The Vitec Group plc Accessories Market – channel evolution 2010 10% 2014 8% Total Imaging Specialty 25% Dealer 15% 38% Accessories Consumer Market 37% Electronics Internet 37% 30% Other Internet wins vs both CE and Retail Specialists Source: Total Accessories Market (management estimate on GFK data)
Slide 68: ILC volume sales: major changes in retail stocking
The Vitec Group plc ILC volume sales: major changes in retail stocking 25 21.8 19.9 20 18.9 18.5 17.7 16.6 16.2 15.2 15 13.7 13.6 Pieces (millions) 10.4 10.3 10 05 00 2009 2010 2011 2012 2013 2014 SELL-IN Adjusted * SELL-OUT Source: CIPA, GfK Boutique, Internal estimate (inventories indicated as at
Slide 69: ILC Shipments are stabilizing
The Vitec Group plc ILC Shipments are stabilizing – MAT Trend (Value vs Volume) Source: CIPA Value using exchange rate of Yen160 to £1. Page 69
Slide 70: Tripods and Bags market and Manfrotto performance
The Vitec Group plc 2014 - 2015: impact of camera sales trends on our markets and Manfrotto performance (EU+US) (MAT sales value – Mio £) 150.0 40.0 101.8 101.0 100.0 Tripods 30.0 50.0 31.7 31.0 0.0 20.0 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Tripo
Slide 71: We have built a strong platform for growth
The Vitec Group plc We have built a strong platform for growth VERTICAL INTEGRATION LEAN AND ROBOTIC DIVERSITY GEOGRAPHIC FOOTPRINT Page 71
Slide 72: Manfrotto Facilities video
The Vitec Group plc Manfrotto Facilities video Page 72
Slide 73: Favourable market drivers
The Vitec Group plc Favourable market drivers Market showing signs of stabilization 2014 vs. 2013 DSLRs 71m Tripods +1% installed Value Growth New format Cameras CSCs +5% SZoom +1% Action +42% Smart +22% OUTLOOK 2015 Unit Growth Unit growth Unit Growth Unit growth Consumer Dynamics Women Demand up M
Slide 74: Growth Pillars
The Vitec Group plc Growth Pillars IMPROVE THE CORE 1 REPEAT PURCHASE APAC 5 ASIA EXPANSION 2 MULTIPLE PURCHASE 4 E-COMMERCE 3 NEW ENTRANTS Page 74
Slide 75: Growth Pillar #1: Drive Repeat Purchase
The Vitec Group plc Growth Pillar #1: Drive Repeat Purchase Page 75
Slide 76: Growth Pillar #1: Product highlights 2014
The Vitec Group plc Growth Pillar #1: Product highlights 2014 Xpro Geared Head Xpro Fluid Head Xpro Ball Head Page 76
Slide 77: Manfrotto video
The Vitec Group plc Manfrotto 055 video Page 77
Slide 78: Growth Pillar #1: Early wins
The Vitec Group plc Growth Pillar #1: Early wins ✓ Page 78
Slide 79: Growth Pillar #2: Drive Multiple Purchases
The Vitec Group plc Growth Pillar #2: Drive Multiple Purchases Page 79
Slide 80: Growth Pillar #2: Product highlights 2014
The Vitec Group plc Growth Pillar #2: Product highlights 2014 Travel Filters LEDs Backpacks Page 80
Slide 81: Growth Pillar #2: Early wins
The Vitec Group plc Growth Pillar #2: Early wins ✓ Share% 6.5% +1 pts EU 2.6% -0.5 pts USA 10.8% na CH 4.1% +0.4 pts JP Page 81 Sources: GfK (EU4+CH); NPD (US); BCN (JP); Management estimate based on GfK/NPD/BCN data
Slide 82: Growth Pillar #3: Engage New Entrants
The Vitec Group plc Growth Pillar #3: Engage New Entrants Page 82
Slide 83: Manfrotto Compact video
The Vitec Group plc Manfrotto Compact video Page 83
Slide 84: Growth Pillar #3: Early wins
The Vitec Group plc Growth Pillar #3: Early wins ✓ Page 84
Slide 85: Manfrotto Off Road video
The Vitec Group plc Manfrotto Off Road video Page 85
Slide 86: Growth Pillar #4A: Drive e-Commerce
The Vitec Group plc Growth Pillar #4A: Drive e-Commerce ✓ Page 86
Slide 87: Growth Pillar #4B: Selective & Direct Distribution
The Vitec Group plc Growth Pillar #4B: Selective & Direct Distribution > 65% of revenue direct > Up 4% vs PY > 1,000 shops in shops > Channel management Page 87
Slide 88: Developing the retail channel: Store In Store Concept
The Vitec Group plc Developing the retail channel: Physical Retail Store In Store Concept Page 88
Slide 89: Developing the retail channel: B&H In-Store Merchandising
The Vitec Group plc Developing the retail channel: Physical Retail B&H In-Store Merchandising Page 89
Slide 90: Developing the retail channel: CE / Mass
The Vitec Group plc Developing the retail channel: CE / Mass Hub and Spoke In Line selection Expanded Online Selection Page 90
Slide 91: Developing the retail channel: Online
The Vitec Group plc Developing the retail channel: Online Amazon partnership is about content Page 91
Slide 92: Online, leveraging partner properties
The Vitec Group plc Developing the retail channel: Online, leveraging partner properties Digital Director Best Practice Online Pre-order timed with NAB Facebook – Adorama (220K) Twitter – B&H (315K) Page 92
Slide 93: Online, leveraging partner properties
The Vitec Group plc Developing the retail channel: Online, leveraging partner properties Digital Director Best Practice Page 93
Slide 94: Best Practice e-Commerce: B&H
The Vitec Group plc Best Practice e-Commerce: B&H Annual Web Marketing program contributes to: > Annual Revenue Increased 16% YOY Best Seller Top 6 Tripods Manfrotto Page 94
Slide 95: Best Practice e-Commerce: Adorama
The Vitec Group plc Best Practice e-Commerce: Adorama Annual Web Marketing program contributes to: > Annual Revenue Increased 18% YOY Web Banner Call to Action Page 95
Slide 96: We have the competencies to maximize content by channel
The Vitec Group plc We have the competencies to maximize content by channel Social Blogs Web Apps email Engagement Genuine and authentic Deep content Utility Personal 80% of content is to Can have more formality Product specs, technical Must help users do Single user must perceive generate conversat
Slide 97: Growth Pillar #4B: Selective & Direct Distribution
The Vitec Group plc Growth Pillar #4B: Selective & Direct Distribution > 65% of revenue direct > Up 4% vs PY > 1,000 shops in shops > Channel management Page 97
Slide 98: Growth Pillar #5: Expand APAC further
The Vitec Group plc Growth Pillar #5: Expand APAC further > 300K pcs shipped > £30m revenue > 25% of Div. Total > C.A.G.R. 9% Page 98
Slide 99: A diverse market requires direct presence "to belong"
The Vitec Group plc A diverse market requires direct presence “to belong” > Local organization > Supply Chain > Product & retail customization Page 99
Slide 100: Manfrotto Distribution & Liaison Offices
The Vitec Group plc Manfrotto Distribution & Liaison Offices APAC £30m 25% LO (Seoul) of total MDKK (Tokyo) MDSH (Shanghai) MDHK (Hong Kong) CN+JP revenue 15% LO (Mumbai) LO (Manila) of Div. total Page 100
Slide 101: Supply Chain Network
The Vitec Group plc Supply Chain Network Korea SPOKE Japan SPOKE China SPOKE Maihama, US HUB Huaqiao, Tokyo Upper Saddle River N.J. Shanghai FE HUB Yantian Taiwan SPOKE Singapore SPOKE UK SPOKE Ashby de la HUB sites Zouch Main Third Party Distributors APAC EU HUB SPOKE sites Rovigo Italy INBOUND imp
Slide 102: Procurement Centre
The Vitec Group plc Procurement Centre Total value finished good purchased (2014) £13m Finished good sourced: 42% of sales units Page 102
Slide 103: Product customization: small details can make a BIG difference
The Vitec Group plc Product customization: small details can make a BIG difference Before After Page 103
Slide 104: Photo Malls, the most effective marketing initiative
> PHOTO MALLS, the most effective marketing initiative
Slide 105: Large CE Assortment, the most effective marketing initiative
> LARGE CE ASSORTMENT, the most effective marketing initiative
Slide 106: Luxury Malls, the most effective marketing initiative
> LUXURY MALLS, the most effective marketing initiative
Slide 107: Dealers' Events, the most effective marketing initiative
> DEALERS’ EVENTS, the most effective marketing initiative
Slide 108: Early wins – Japan
The Vitec Group plc Early wins – Japan 2014 Revenue £10m 2010-2014 Revenue increase +£4m Tripods share 16% Bags share 4% Page 108
Slide 109: Early wins – China
The Vitec Group plc Early wins – China 2014 Revenue £9m 2010-2014 Revenue increase +£4m Tripods share 18% Bags share 10% Page 109
Slide 110: Growth pillars
The Vitec Group plc Growth pillars IMPROVE THE CORE APAC 1 REPEAT PURCHASE 5 ASIA EXPANSION 2 MULTIPLE PURCHASE 4 e-COMMERCE 3 NEW ENTRANTS Page 110
Slide 111: Workflow Management Processor
The Vitec Group plc Workflow Management Processor • Set Up • Control • Shoot • Download • Post Production • Share Page 111
Slide 112: Digital Director video
The Vitec Group plc Digital Director video Page 112
Slide 113: Workflow Management Processor
The Vitec Group plc Workflow Management Processor Page 113
Slide 114: Martin Green, Group Development & HR Director
Martin Green Group Development & HR Director Investing for Growth
Slide 115: Our track record
The Vitec Group plc Our track record Acquisition March 2011 December 2011 April 2012 August 2013 March 2014 October 2014 December 2014 February 2015 Disposal Lastolite Haigh-Farr Camera Corps Teradek SIS Autocue SmallHD Paralinx 2010 2011 2012 2013 2014 2015 April 2010 August 2012 November 2014 Clea
Slide 116: Success factors
The Vitec Group plc Success factors Disciplined process People Integration strategy > Clear rationale > Retain management and > High level integration plan > Clear acquisition criteria former owners (often) > Experience of integration > Evaluate many targets; > Flexible approach leads to synergies a
Slide 117: Rationale
The Vitec Group plc Rationale > The Broadcast workflow Post Monitor & Distribution Capture Storage Playout Production Test & Sharing > The Photographic workflow Client Distribution Capture Transfer Selection Retouch Review & Sharing We will look for acquisitions primarily in Capture and Sharing Page
Slide 118: Criteria
The Vitec Group plc Criteria Criteria Assessment Markets / product categories we understand √√√ Reasonable cultural fit, especially the management team √√ Good barriers to entry – differentiated technology √√ Strong brand with #1 or #2 position (or scope to become so) √√√ Good long term growth prosp
Slide 119: Integration
The Vitec Group plc Integration New product or Existing product or service service Stand alone initially Rapid / full integration Synergy through sales Synergies through cost via our distribution reduction and sales via network our distribution network Example – Teradek Example – Autocue We leverage
Slide 120: Summary
The Vitec Group plc Summary > Successful track record of making and integrating acquisitions > Clear rationale focused on capturing and sharing images > Clear acquisition criteria > Synergies including from global distribution network Investing for Growth Page 120
Slide 121: Stephen Bird, Group Chief Executive
Stephen Bird Group Chief Executive Investing for Growth
Slide 122: Summary
The Vitec Group plc Summary > Core Broadcast and Photographic markets stabilising – we expect to grow in mid-term > Vitec is well-placed to capitalise on those markets > Strong brands and market positions > Global distribution > Clear strategy focused on > Improving the core – including focus on ind
Slide 123: Investing for Growth
The Vitec Group plc Investing for Growth > 22 April 2015