Vista Group International Ltd · NZX:VGL
Vista Group International — FY2016 Earnings Presentation
33 slides from Vista Group International's earnings presentation, Feb 24, 2017
Slide 1: Vista Group – FY 2016 Full Year Results
Vista Group – FY 2016 Full Year Results 24 February 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: Group update Results highlights Operating performance and trading metrics
• Group update • Results highlights • Operating performance and trading metrics • Financial performance • China transaction • Outlook • Questions PAGE 3
Slide 4: Vista Group – Results Highlights & Group Update
VISTA GROUP – RESULTS HIGHLIGHTS & GROUP UPDATE
Slide 5: The Strength of Vista Group
THE STRENGTH OF VISTA GROUP • Consistent strong revenue growth • Strong annuity revenue • Sustained profitability • Positive operating cash generation • Leading global position in an expanding film industry • Dividend payer
Slide 6: Vista Group Update
VISTA GROUP UPDATE • Founded 1996 & listed on NZX/ASX in Aug 2014 with market cap of $187M; now $460M. CGR of 45% p.a VISTA ENTERTAINMENT SOLUTIONS • 530+ staff & offices in 10 offices: • Auckland, Sydney, London, LA, Dallas, Holland, Shanghai, Romania, Cape Town, Beijing • Completed the acquisition
Slide 7: Film industry value chain
PRODUCTION MANUFACTURING DISTRIBUTION WHOLESALE CINEMA EXHIBITION RETAIL MOVIEGOER CONSUMER THE BIG SIX Sony Disney Paramount YOU Warner Bros Hoyts Universal Event Legendary Entertainment Fox Reading Amblin Entertainment Lido Scott Free Productions Madman Wingnut Films Transmission Rialto FILMS $$$$
Slide 8: Result Highlights
Result Highlights • Strong 35% revenue growth for the consolidated Vista Group to $88.6m over FY2015 • Performance compared to FY2015 31 December 31 December NZ$m 2016 2015 Revenue 88.6 65.4 35.5% EBITDA1 17.6 15.1 16.6% Trading Net Profit 2 12.0 10.1 18.8% Net Profit Before Tax 53.0 10.1 724.1% • I
Slide 9: Vista Group – Trading Metrics
VISTA GROUP – TRADING METRICS TOTAL REVENUE ANALYSIS 30% AVERAGE REVENUE GROWTH PER YEAR FOR LAST 3 YEARS REVENUE ANALYSIS 100000 35% 90000 80000 70000 REVENUE GROWTH OVER FY2015 $000's 60000 *28% EXCL. ACQUISITIONS 50000 40000 Other 30000 32% Maintenance 20000 10000 License Fees INCREASE IN VALUE O
Slide 10: Operating Performance & Trading Metrics
OPERATING PERFORMANCE & TRADING METRICS
Slide 11: Vista Entertainment Solutions (VES)
VISTA ENTERTAINMENT SOLUTIONS (VES) • Largest Group subsidiary outperformed growth forecasts for third year in a row. Revenue growth 20%+ in FY2016 • 847 new cinema sites added (includes 161 from CCG) to bring global total to 5,557. In addition 285 installations at customer owned small retail outlet
Slide 12: Vista Cinema – Metrics
VISTA CINEMA – METRICS AVERAGE LICENSE AVERAGE LICENSE AVERAGE MAINTENANCE AVERAGE MAINTENANCE REVENUE PER SITE REVENUE PER SITE REVENUE PER SITE REVENUE PER SITE ↑ 7% $27K ↑ 20% $6K FROM 2014 OVER 3 YEARS FROM 2014 OVER 3 YEARS NEW SITES ADDED TOTAL SITE COUNT Total Sites at Dec 2016 1200 6,000 100
Slide 13: Vista share of world cinema market
87% CANADA 2,052/2,347 screens 26% EUROPE 4,845/18,953 screens 42% USA 13,413/31,913 screens 57% MIDDLE EAST 1,307/2,311 screens 23% ASIA 7,017/30,415 screens 97% CENTRAL AMERICA 6,543/6,750 screens 93% AFRICA 761/819 screens 22% SOUTH AMERICA 1,260/5,812 screens 95% AUSTRALASIA 1,698/1,788 screens
Slide 14: Veezi
VEEZI ENGINEERED BY VISTA • Site number growth of 52% to 532 at year end across 20 countries • Addressable market size approx. 25,000 Cinemas • ARR strong at $5,750 per annum per site ($480 per month) • New agreement with Film Industry Organisation in Sweden with significant opportunity in 2017 • Fr
Slide 15: Veezi – Metrics
VEEZI – METRICS 532 $3.06M $480 GLOBAL TOTAL OF ANNUALISED RECURRING AVERAGE REVENUE CONTRACTED SITES REVENUE PER SITE EACH MONTH TOTAL SITE COUNT AVERAGE REVENUE PER 600 $600 $500 SITE 400 $400 $300 200 $200 $100 0 $- Dec-13 Dec-14 Dec-15 Dec-16 Dec-13 Dec-14 Dec-15 Dec-16
Slide 16: Investments
Investments • Vista Cloud Commenced platform change for the core Vista Cinema product to provide customers the choice of an on premise or hosted deployment. First parts release in 2017. • MovieTeam Released new SaaS Cinema focused staff management and scheduling product. 6 customer signups by end 20
Slide 17: Movio
MOVIO • On track with their Mission: To revolutionize the way film distributors & cinema exhibitors interact with moviegoers. Movio Cinema • Increased customers from 37 to 50 of the world’s largest cinema circuits including AMC (USA), Ster Kinekor(SA) and Vue(UK). Movio Media • Introduced ethnicity
Slide 18: Movio – Metrics
MOVIO – METRICS EMAIL GROWTH 46% 450 400 350 300 Millions REVENUE GROWTH 250 OVER FY2015 200 150 100 50 162% 0 2013 2014 2015 2016 Email/SMS sent MEMBER DATABASE MOVIO MEDIA GROWTH OVER FY2015 140 120 TOTAL REVENUE PER 1,000 100 Millions ACTIVE MEMBERS 80 $305 60 40 20 0 2013 2014 2015 2016 Non acti
Slide 19: MACCS
MACCS • MACCS – Movie ACCounting System • Theatrical distribution software • Financial & logistics solution • MaccsBox – Theatrical Value Chain • Collects audited box office results (eBor) centrally & provides them to distributors • 2016 • Completed the Warner Bros. domestic enhancements and the rel
Slide 20: Numero
NUMERO • Tracks daily results at cinema level & reports to Film Studios, Distributors & Exhibitors • SaaS product for film distributors and exhibitors • 2016 • Achieved nearly 100% collection in Australia and New Zealand markets • Commenced moving major studios from trial licenses to full licenses •
Slide 21: Powster
POWSTER Provides world-leading film marketing products including interactive content to promote films • Marketing platform for movie studios, powering the world’s biggest films. One destination per film with all cinemas & show-times listed 2016 • All 6 Major studios using Powster platforms in the US
Slide 22: Flicks
FLICKS Authoritative Australasian movie & cinema guide • Moviegoer access nationally for every movie playing; cinemas, session times, booking links, videos & trailers, reviews (user & critical) + editorial from Australasia’s best industry contributors 2016 • Best year for advertising revenues and be
Slide 23: Cinema Intelligence
CINEMA INTELLIGENCE Cinema intelligence is a business intelligence solution for cinema exhibitors, designed to optimize forecasting, booking and scheduling of movies and events proven to increase profitability and revenues. • 2016 • Opened LA office • Global expansion - running implementations on 3
Slide 24: Vista Group – Financial Performance
VISTA GROUP - FINANCIAL PERFORMANCE
Slide 25: Trading Performance
Trading Performance For twelve months ended NZ$m 31 December 31 December 2016 2015 % Revenue 88.6 65.4 35.5% Operating Expenses 74.2 57.0 30.2% Foreign exchange losses / (gains) 1.4 (1.7) Operating Profit 13.0 10.1 28.7% Other Revenue/Costs 40.0 0.0 Profit Before Tax 53.0 10.1 424.8% Net Profit attr
Slide 26: Financial Position
Financial Position Current assets Cash & short term deposits 21.3 27.3 • Effect of China transaction receivables $35.5m at Other receivables 73.9 30.6 year end 95.2 57.9 • Trading receivables in line with trading levels Non Current Assets Plant & equipment 4.1 2.4 • Cash balance reduced due to acqui
Slide 27: Cash Flow
Cash Flow For twelve months ended NZ$m 31 December 31 December 2016 2015 Cash received from trading 69.7 60.6 • Cash receipts from trading supressed by delay in receiving pre new venture Cash applied from trading receivables being settled with China Operating expenese 58.5 50.5 transaction payments.
Slide 28: Dividend Proposal
Dividend Proposal The dividend policy established by the Vista Group Board in 2016 was: To distribute 30% to 50% of net profit after tax subject to immediate and future growth opportunities and identified capital expenditure requirements. The dividends will be provided with the maximum value of impu
Slide 29: China Transaction
CHINA | TRANSACTION
Slide 30: China Transaction
China Transaction • Successful completion of one of the largest tech industry transactions in China by a New Zealand company • Full explanation of the treatment and values associated with the recognition of the transaction in our market release of 21 February 2017 • One-off capital gain on sale of s
Slide 31: Outlook
OUTLOOK
Slide 32: Outlook
Outlook • Strong outlook for Global Film Industry • Revenue growth of the existing businesses is expected to be in the range of 20% to 25% • Strong pipeline supporting future revenue growth • Vista Cinema to continue strong growth of revenue and earnings • Strong cash position as the China transacti
Slide 33: Questions
QUESTIONS
Vista Group International — FY2016 Earnings Presentation on 6ix