Vista Group International Ltd · NZX:VGL
Vista Group International — H1 2019 Earnings Presentation
35 slides from Vista Group International's earnings presentation, Aug 29, 2019
Slide 1: Vista Group 2019 Half Year Results
VISTA GROUP 2019 HALF YEAR RESULTS 29 August 2019 1
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 or pu
Slide 3: Agenda
AGENDA VISTA GROUP SUMMARY FINANCIAL RESULTS KIMBAL RILEY OPERATIONAL HIGHLIGHTS GROUP CHIEF EXECUTIVE OUTLOOK VISTA CINEMA TRANSFORMATION WILL PALMER Q+A CEO MOVIO 3
Slide 4: Vista Group Operating Segments
VISTA GROUP OPERATING SEGMENTS CINEMA CORE BUSINESSES MOVIO ADDITIONAL GROUP COMPANIES (AGC) EARLY STAGE INVESTMENTS (ESI) ASSOCIATES / JOINT VENTURES 4
Slide 5: Vista Group 1st Half 2019 Summary - Financial Highlights
VISTA GROUP 1ST HALF 2019 SUMMARY FINANCIAL HIGHLIGHTS Continued excellent performance from Vista Group’s core businesses (Vista Cinema and Movio) over pcp • 19% increase in revenue for the core businesses • 16% increase in like for like1 EBITDA2 for the core businesses, as operating performance is
Slide 6: Vista Group 1st Half 2019 Summary - Operational Highlights
VISTA GROUP 1ST HALF 2019 SUMMARY OPERATIONAL HIGHLIGHTS • Strong balance sheet maintained - low debt and a solid cash position • Vista Cinema global market share of Enterprise (20+ screens) excluding China reaches 49.9% (39.4% including China) • Vista Cinema global market share of TOTAL screens inc
Slide 7: Financial Results
FINANCIAL RESULTS 7
Slide 8: Core Financial Metrics
CORE FINANCIAL METRICS TOTAL REVENUE RECURRING REVENUE OPERATING PROFIT $67.5m $41.1m $8.0m (up 12% over pcp) (up 14% over pcp) (down 29% over pcp)2 EBITDA1 OPERATING CASHFLOW INTERIM DIVIDEND $11.8m $7.5m 1.20 (down 19% over pcp)2 (down 40% over pcp) Cents per share 1 EBITDA is a non-GAAP measure a
Slide 9: Revenue Growth
REVENUE GROWTH REVENUE GROWTH BY SOURCE OVER PCP REVENUE GROWTH BY SEGMENT OVER PCP Hardware / Other Corporate Development ESI Services AGC Maintenance Movio Product Cinema NZ$m $- $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 NZ$m $- $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 Jun-19 Jun-18 Jun-19 Jun-18 9
Slide 10: Trading Performance
TRADING PERFORMANCE For six months ended Strong revenue growth from core NZ$m 30 Jun 2019 30 Jun 20182 % Change businesses. Revenue 67.5 60.1 12% Expenses up 20% chiefly comprising a Expenses 59.5 49.6 20% continued investment in staffing, Foreign exchange gains - (0.8) additional cost of sales (Cin
Slide 11: Operating Segments – H1 2019
OPERATING SEGMENTS – H1 2019 Additional Group Early Stage 2019 (NZ$m) Cinema Movio Corporate Total Companies Investments Revenue 45.8 11.6 7.8 1.3 1.0 67.5 EBITDA1 15.7 2.3 0.6 (1.0) (5.8) 11.8 EBITDA margin 34% 20% 7% (79%) 18% Additional Group Early Stage 2018 (NZ$m) 2 Cinema Movio Corporate Total
Slide 12: Financial Position
FINANCIAL POSITION NZ$m 30 Jun 2019 31 Dec 2018 CURRENT ASSETS 84.7 96.6 Strong balance sheet maintained, giving Cash 24.8 34.4 capacity to take advantage of new Trade & other receivables 59.9 62.2 opportunities and development, as well as support the dividend program. NON CURRENT ASSETS 134.4 124.5
Slide 13: Cash Flow
CASH FLOW NZ$m 30 Jun 2019 30 Jun 2018 CASHFLOWS FROM OPERATING ACTIVITIES 7.5 12.5 22% increase in receipts from customers Receipts from customers 74.4 61.2 driven by increased revenues and the one-off Payments to suppliers and staff (60.5) (42.8) receipt of the Vista China receivable. Tax & intere
Slide 14: Interim Dividend
INTERIM DIVIDEND • The company will pay an interim dividend of 1.2 cents per share, carrying full New Zealand imputation credits, representing a total payment of $2.0m • The dividend is at the top of Vista Group’s dividend policy range (50% of NPAT) • The record date for the dividend will be 5pm on
Slide 15: Operational Highlights
OPERATIONAL HIGHLIGHTS 15
Slide 16: Cinema Segment
CINEMA SEGMENT $45.8M GROWTH +15% REVENUE $15.7M GROWTH +13% EBITDA 1 Vista Cinema provides cinema management software to the world’s largest cinema exhibitors • 481 new sites in H1 2019 (including 89 sites in China), total now 7,683 sites • Enterprise (+20 screens) market share 39.4% – excluding Ch
Slide 17: Vista Cinema World Share
VISTA CINEMA WORLD SHARE Vista Cinema percentage of the worldwide Enterprise segment (cinema exhibition companies with 20+ screens) 86% CANADA 2,082/2,436 screens 34% EUROPE 7,016/20,401 screens 49% USA 16% CHINA 16,897/34,512 screens 6,728/41,476 screens 60% MIDDLE EAST 36% ASIA (excl. CHINA) 1,775
Slide 18: Cinema Segment - Continued
CINEMA SEGMENT - CONTINUED Provides cinema management software to the world’s independent cinema exhibitors • 83 new sites bring total site numbers to 984 – including China • Revenue/site slightly lower at $581 per month – sensitive to Box Office variation • USA growth driven by wins against generic
Slide 19: Movio Segment
$11.6 M REVENUE GROWTH +35% $2.3 M EBITDA GROWTH 4 +42% Global leader in data-driven marketing, providing products and services to exhibitors, studios and film advertising specialists H1 highlights Movio Cinema • Successful implementation of Aeon, Movio’s first Japanese cinema exhibitor • Regional g
Slide 20: Critical KPIs & Growth Drivers
Critical kpi’s & growth drivers Increase volume – Active Moviegoers 2 • Research confirmed cinema exhibitors using Movio Cinema saw global box office uplift of USD227M in 20181 • Implementation of the recently deployed non-member solution allowing exhibitors to build moviegoer profiles based on onli
Slide 21: Additional Group Companies (AGC) Segment
ADDITIONAL GROUP COMPANIES (AGC) SEGMENT $7.8M GROWTH +16% $0.6M DOWN 29% REVENUE EBITDA 1 World leading film marketing products World leading theatrical distribution software Movie and cinema review and showtime guide • Slow start – 8% revenue growth over pcp • 30% revenue growth over pcp – close t
Slide 22: Early Stage Investments (ESI) Segment
EARLY STAGE INVESTMENTS (ESI) SEGMENT $1.3M DOWN 44% ($1.0M) LOSS REVENUE EBITDA Software to optimise film forecasting and A platform to share film digital assets & enable scheduling new cinema ticketing sales channels • Slow start to 2019 with key projects slipping • MX Film good progress – servici
Slide 23: Associate and Joint Venture Companies
ASSOCIATE AND JOINT VENTURE COMPANIES Box office tracking and reporting product • Overall business approaching break-even • International dashboards now live in 21 countries • USA coverage significantly increased • Revenue growth 44% over pcp • Numero requires ongoing support from Vista Group – prov
Slide 24: Associate and Joint Venture Companies - Vista China
ASSOCIATE AND JOINT VENTURE COMPANIES Performance • Revenue of NZD9.1m, 4% up on the pcp, profitable at EBITDA level (operating loss after prior period tax VISTA CHINA adjustment) • 89 new sites added – 41% from existing customers. Total sites now 1,047 • Vista China market share of Enterprise segme
Slide 25: Outlook
OUTLOOK • We are targeting revenue growth for the core businesses – Vista Cinema and Movio combined – to be in the region of 14-18% for 2019 with a continuation of the strong H1 EBITDA performance • We are targeting overall Vista Group revenue growth for 2019 to be in the region of 10-12% chiefly in
Slide 26: Transformation of Vista Cinema to SaaS
TRANSFORMATION OF VISTA CINEMA TO SAAS We are very pleased to have the unanimous support of the Executive Team and Board in accelerating the transformation of Vista Cinema to a pure SaaS future • Vista Cinema is committed to investing to significantly accelerate the transformation to SaaS • The acce
Slide 27: Definitions
DEFINITIONS Who manages the Concept License Type Where is the software Copies of the software Incremental Revenue for Vista software On Premises Perpetual Customer premises Customer One per customer No Subscription Right to use Varies Customer One per customer Yes – over time Hosted Varies Public or
Slide 28: Background – Progress to Date
BACKGROUND – PROGRESS TO DATE • Our initial objective was to offer customers choice • The project was initiated on Year 2017 2018 2019 a BAU basis – i.e. in parallel with ‘normal’ business. This has still been the case in H1 2019 Offer customers Application choice – on Application is What we said Ho
Slide 29: Benefits of Moving to Cloud/SaaS - Innovation
BENEFITS OF MOVING TO CLOUD/SAAS ON PREMISES Implementing INNOVATION innovation requires upgrade BENEFIT TO BENEFIT TO BENEFIT TO CLOUD / SAAS CLIENTS VISTA CINEMA VISTA CINEMA Increased Speed of Investment in Much easier to velocity of updating delivers innovation upgrade and product changes innova
Slide 30: Benefits of Moving to Cloud/SaaS - Accessibility
BENEFITS OF MOVING TO CLOUD/SAAS ON PREMISES Implementation requires new ACCESSIBILITY equipment and software downloads CLOUD / SAAS BENEFIT TO BENEFIT TO Access for new BENEFIT TO CLIENTS VISTA CINEMA VISTA CINEMA cinemas and users can be as Customers able New customers Able to expand simple as a t
Slide 31: Our Timetable
OUR TIMETABLE 2019 2020 2021 • Resource additional project teams • Continue Engineering – including • Multi-tenant SaaS in market during • Resource management teams some outsourced 2021 • Build pipeline of managed service • Complete browser / app • Encourage SaaS as first choice with prospects – bot
Slide 32: Transformation of Vista Cinema
TRANSFORMATION OF VISTA CINEMA The benefits of a multi-tenant SaaS product offering are well understood, they include: • It creates the platform for operating leverage for Vista Cinema. We expect ongoing improvement in EBITDA quality • It will enable customers to benefit much more quickly from Vista
Slide 33: Summary
SUMMARY • Our core businesses (Vista Cinema and Movio) are in excellent shape, and the outlook for them is strong • We are setting a timetable and commitment to transform Vista Cinema to a pure SaaS future as quickly as we can • We are very pleased at the prospect of Vista China ‘re-joining the fami
Slide 34: Questions
QUESTIONS 34
Slide 35: Thank You
THANK YOU 35
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