Videndum PLC · LSE:VID
Videndum — The Vitec Group — FY2009 Earnings Presentation
33 slides from Videndum's earnings presentation, Mar 2, 2010
Slide 1: 2009 Preliminary Results Analyst's presentation
Page 1 2009 Preliminary Results Analyst’s presentation Stephen Bird Group Chief Executive Richard Cotton Group Finance Director 2 March 2010
Slide 2: Agenda
Page 2 Agenda Highlights Financial Review Operational Review & Outlook Stephen Bird, Richard Cotton, Stephen Bird, Group Chief Executive Group Finance Director Group Chief Executive
Slide 3: Highlights
Page 3 Highlights Stephen Bird Group Chief Executive
Slide 4: Highlights
Page 4 Highlights Challenging 2009 – well positioned for future growth Resilient performance in Imaging business, helped by growth in camera bags and the premium Gitzo brand Videocom division severely affected by economic downturn, although Litepanels LED business continued growth trend £21.9 millio
Slide 5: Financial Review
Page 5 Financial Review Richard Cotton Group Finance Director
Slide 6: Income statement
Page 6 Income statement 2009 2008 ∆ ∆ CER** £m £m % % Revenue 315.1 337.7 (6.7%) (19.1%) Gross margin % 39.3% 40.6% -1.3 pts Operating profit* 24.5 38.4 (36.2%) (54.2%) Operating margin % 7.8% 11.4% -3.6 pts PBT* 22.7 35.4 (35.9%) (55.2%) Adjusted basic earnings per share* 36.5p 55.9p (34.7%) (54.7%
Slide 7: Revenue decline of 19% (constant currency)
Page 7 Revenue decline of 19% (constant currency) Restated ∆ Acquisition/ 2008 FX 2008* 2009 Organic Disposal £m £m £m £m % £m % £m % Divisional revenue Imaging & Staging 135.8 20.7 156.5 141.8 (9.4%) (13.0) (8.3%) (1.7) (1.1%) Videocom 172.6 25.6 198.2 147.0 (25.8%) (54.5) (27.5%) 3.3 1.7% Services
Slide 8: Operating profit bridge - indicative
Page 8 Operating profit bridge - indicative 50 Vol/Mix/ 40 Efficiency 30 FX Transact FX Transl (£m) 20 Acquisitions/ Op. Exps Disposal 10 08 Profit* Price/Cost 09 Profit* 0 (10) £38.4m . (£40.4m) £2.7m £13.0m £0.3m £6.6m £3.9m £24.5m * Operating profit before significant items Variances are based on
Slide 9: Cash generated from operations
Page 9 Cash generated from operations Focussed working capital management 2009 2008 ∆ £m £m £m Operating profit* 24.5 38.4 (13.9) Depreciation** 15.6 12.8 2.8 Working capital 7.4 (7.7) 15.1 Restructuring costs (5.5) - (5.5) Other 0.8 0.8 - Cash generated from operations 42.8 44.3 (1.5) * Pre amortis
Slide 10: Free cash flow
Page 10 Free cash flow Cash control and generation 2009 2008 ∆ £m £m £m Cash generated from operations 42.8 44.3 (1.5) Capital expenditure (15.3) (17.6) 2.3 Proceeds of asset sales 1.6 2.6 (1.0) Net interest paid (2.1) (3.6) 1.5 Tax paid (4.3) (6.7) 2.4 Free cash flow 22.7 19.0 3.7 Capital expenditu
Slide 11: Net debt bridge
Page 11 Net debt bridge £12.4m lower than at December 2008 70 60 Free Cash Flow 50 Net Own (£m) Exchange Acquisitions/ Shares movements Disposal Purchased Dividends 40 30 Dec 08 Dec 09 Net Debt Net Debt 20 £53.0m (£22.7m) £7.8m £2.3m £0.1m £0.1m £40.6m Continued strong free cash flow of £22.7m Divid
Slide 12: Banking and cash management
Page 12 Banking and cash management Loan facility of £125m − Committed until 2013 − 5 banks − Current interest at 0.95% over LIBOR* Utilisation as at 31 Dec 2009 £52.7m (Dec 2008 £64.9m) − Dec 2009 net debt of £40.6m after − net cash in the businesses of £12.1m Net Debt to EBITDA ratio of 1.0x – con
Slide 13: Other financial points
Page 13 Other financial points Foreign exchange effects on profit − FY 2009 £10.5m better than FY 2008 Tax − 32% headline charge (2008: 34%) − FY 2010 guidance: 30% − c.5% less for cash taxes UK pensions − IAS 19 deficit £6.1m (Dec 2008, deficit £0.4m) − bond yields decline
Slide 14: Operational Review
Page 14 Operational Review Stephen Bird Group Chief Executive
Slide 15: Cost reduction actions
Page 15 Cost reduction actions Adapting business to weaker market conditions 3 areas of savings: − Capacity reduction − Deferral of discretionary expenditure − Review of cost structure Restructuring charges completed − Total actions taken cost £10.9m, saving £21.9m pa − Approx £17.0m of benefits in
Slide 16: Imaging & Staging
Page 16 Imaging & Staging Resilience in camera accessories 2009 2008 ∆ ∆ CER Camera Supports resilient £m £m % % – Launched 22 new Revenue 141.8 135.8 4.4% (9.4%) products Operating profit* 17.7 15.6 13.5% (10.8%) – Growth in premium Gitzo Bags business grew > 20% Operating margin %* 12.5% 11.5% 1.0
Slide 17: Videocom
Page 17 Videocom Broadcast markets particularly weak Challenging market 2009 2008 ∆ ∆ CER conditions, particularly in H1 £m £m % % Litepanels full-year pro-forma Revenue 147.0 172.6 (14.8%) (25.8%) 2009 sales up over 30% Operating profit* 8.5 21.7 (60.8%) (77.3%) − Awarded prestigious Emmy − Success
Slide 18: Services
Page 18 Services Weak programme making in US market 2009 2008 ∆ ∆ CER In US$, revenue was £m £m % % down 24% − Non Olympic year Revenue 26.3 29.3 (10.2%) (24.2%) Operating profit (1.7) 1.1 n/m n/m US broadcasters impacted by advertising Operating margin %* (6.5%) 3.8% (10.3 pts) spend − Programme ma
Slide 19: Three market strategy
Page 19 Three market strategy Continue to invest Broadcast & Video Fast growth from B&I, LED lighting and £750m* robotics >> Expected growth rate of market 2009 - 2012 = 5% Photographic Continue to invest in Pro-market Grow Manfrotto through product extension £830m* & appealing to wider audience >>
Slide 20: Three market strategy - Update
Page 20 Three market strategy - Update Broadcast & Video − Leading brand, premium position − Estimated market growth at 5% pa 2009-12* − Share growth from: − LED lighting − Business and industry − Microwave systems − Robotics − Since October − Broaden LED range − Microwave growth outside of US − “Sm
Slide 21: Three market strategy – Update (continued)
Page 21 Three market strategy – Update (continued) Photographic − Premium position and share for professionals/serious amateurs − Estimated growth at 2-4% pa 2009-12* : − Faster growth for Manfrotto from: − Entering new segments − Appealing to a wider audience − Since October − Conducted further res
Slide 22: Three market strategy – Update (continued)
Page 22 Three market strategy –Update (continued) Military Aerospace and Government (MAG) − Microwave technology brand leader in broadcast market − Leverage this technology into MAG − Estimated growth at 9% pa 2009-12* − Focus areas − Law enforcement − Military vehicles − Since October − Further rev
Slide 23: Outlook
Page 23 Outlook 2009 was a challenging year. However, we produced a very good cash performance, implemented our cost reduction programme and launched a new focused strategy which will leverage our existing strengths and capabilities into higher growth markets. The last quarter of 2009 saw our market
Slide 24: Appendices
Page 24 Appendices ff VITEC GROUP (Capture the moment:
Slide 25: New purpose, values and brand
Page 25 New purpose, values and brand Our purpose − “We provide vital products and services which support the capture of exceptional images” – in short, we facilitate people reliably to “Capture the Moment”. Our values − Product Excellence – Everything we make and do is exceptional − Creative Soluti
Slide 26: Organisation
Page 26 Organisation The TheVitec VitecGroup Groupplc plc Imaging Videocom Imaging&&Staging Videocom Staging Videocom Videocom Services Services 2009 2009 2009 2009 2009 2009 Sales Sales £141.8m £141.8m Sales Sales £147.0m £147.0m Sales Sales £26.3m £26.3m Profit Profit £17.7m £17.7m Profit Profit £
Slide 27: Videocom Product launches in 2009
Page 27 Videocom Product launches in 2009 Vinten Radamec’s Fusion Legislative Autoscript’s LED TFT Displays and MiniScript Litepanels 1x1 Bi-Colour Control System portable on-camera TFT monitor Vision AS Range (Vision 3AS, Vision 5AS, Clear-Com’s Tempest 2400 Wireless Intercom System Sachtler’s Arte
Slide 28: Imaging & Staging Product launches in 2009
Page 28 Imaging & Staging Product launches in 2009 Manfrotto’s M-Y tripod family designed for lightweight Digital SLR cameras Gitzo’s Ocean Traveller tripod (with stainless steel components) designed to perform in extreme conditions Kata’s 3N1 versatile camera bag that allows great flexibility of us
Slide 29: Product awards won in 2009
Page 29 Product awards won in 2009 Nucomm’s ProQ Digital IFB System Litepanels’ Micro Portable Litepanels’ 1 x 1 Bi-Focus Kata’s 3N1-20 LED camera light Anton/Bauer’s Solar Charger Vinten’s Vision AS Pan and Clear-Com’s I.V. Core technology Emmy Award given to members of Tilt Head Range Bexel Broadc
Slide 30: Key financial measures: 5-year trend
Page 30 Key financial measures: 5-year trend Revenue Operating profit* 190 21 19 170 17 150 15 £m £m 130 13 11 110 9 90 7 70 5 H104 H204 H105 H205 H106 H206 H107 H207 H108 H208 H109 H209 H104 H204 H105 H205 H106 H206 H107 H207 H108 H208 H109 H209 30 Basic EPS* Closing net debt 60 25 50 40 20 Pence £
Slide 31: FX update
Page 31 FX update Year on year effect Translation Transaction Total on profit £/$ €/$ £/€ £m £m £m Actuals Average FY03 1.63 1.13 1.45 1.2 (2.3) (1.1) Average FY04 1.82 1.24 1.47 (0.9) (3.9) (4.8) Average FY05 1.82 1.24 1.46 0.1 (1.0) (0.9) Average FY06 1.84 1.25 1.47 (0.2) (0.5) (0.7) Average FY07
Slide 32: Important notice
Page 32 Important notice This presentation is being made only to, and is only directed at, persons to whom such presentations may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. Information in
Slide 33: Page 33
_. ff VITEC GROUP Capture the moment: