Zoo Digital Group Plc · LSE:ZOO
Zoo Digital — H1 FY2021 Earnings Presentation
30 slides from Zoo Digital's earnings presentation, Nov 10, 2020
Slide 1: Interim Results FY21
ZOO Digital Group plc Interim Results FY21 Interim Results FY21 10th November 2020
Slide 2: Disclaimer
ZOO Digital Group plc Disclaimer Interim Results FY21 This document has been prepared by ZOO Digital Group plc (the “Company”) solely for presentation purposes. It should not be reproduced, redistributed or passed to any other person. This document, the talks given by the presenters, the information
Slide 3: ZOO is trusted by the biggest names in global media and entertainment
ZOO Digital Group plc ZOO is trusted by the biggest names Interim Results FY21 in global media and entertainment 3
Slide 4: Fulfilment of content for streaming VOD
Fulfilment of content for ZOO Digital Group plc Interim Results FY21 streaming VOD End-to-End Vendor Subtitling New productions Dubbing Conforming Delivery to platform Media processing Catalogue titles Metadata Artwork 4
Slide 5: ZOO's USP: Cloud-based media localisation technology
ZOO Digital Group plc ZOO’s USP: Interim Results FY21 Cloud-based media localisation technology Subtitling production and management Dubbing production and management Original language script production and management Workflow management Localisation operations management 5
Slide 6: Financial Highlights
ZOO Digital Group plc Financial Highlights Interim Results FY21 • Revenues increased by 15% to $16.4 million (H1 FY20: $14.2 million) driven by strong growth in the period for dubbing and digital packaging • Gross profit reduced to $5.1 million (H1 FY20: $5.8 million) explained by an increase in dir
Slide 7: Operational Highlights
ZOO Digital Group plc Operational Highlights Interim Results FY21 • Subtitling services delivered to all major Hollywood studios • Significant new client accounts added with total number invoiced in H1 increasing 30% to 122 (H1 FY20: 94) • Cloud dubbing revenue grew by 480% year-on-year • Scope of Z
Slide 8: Opportunities for ZOO Created by COVID-19
ZOO Digital Group plc Opportunities for ZOO Created by COVID-19 Interim Results FY21 • Provided an opportunity to showcase our solutions and dubbing capability more widely • The industry’s temporary refocus on back-catalogue plays to the strengths of ZOO’s end-to-end proposition • Recent promotion o
Slide 9: Market Update
ZOO Digital Group plc Market Update Interim Results FY21 • Media localization is a US$2.4bn market • Sixth largest segment in the language industry • Split approx. 70% dubbing, 30% subtitling • Second fastest growing vertical by value (up Media US$177m in 2019) (2.4bn) • Second fastest growing verti
Slide 10: Growth – Five Strategic Pillars
ZOO Digital Group plc Growth – Five Strategic Pillars Interim Results FY21 INNOVATION Create value-adding software technology SCALABILITY Operate a freelance network COLLABORATION Work with like-minded, world-class experts in media localisation, education and research CUSTOMER Secure preferred partn
Slide 11: INNOVATION Create value-adding software technology
ZOO Digital Group plc INNOVATION Interim Results FY21 Create value-adding software technology • Extended functionality of ZOOstudio leading to broader and deeper adoption by a key customer • Enhanced capabilities of ZOOdubs to support multi-voice recording sessions and videogame dubbing • Secured fu
Slide 12: SCALABILITY Operate a freelance network
ZOO Digital Group plc SCALABILITY Interim Results FY21 Operate a freelance network • Continued expansion of freelance network • Active pool increased to 8,272 across 80 languages Strategy: For creative and skilled roles, identify, recruit, train and retain freelancers for a cost-efficient scalable r
Slide 13: COLLABORATION Work with like-minded, world-class experts
COLLABORATION ZOO Digital Group plc Work with like-minded, world-class experts in Interim Results FY21 localisation, education and research • Continued to develop ZOO-Enabled Dubbing Studios programme, resulting in relationships with highly reputable independent studios across all key languages • St
Slide 14: CUSTOMER Secure preferred partner status with leading buyers
CUSTOMER ZOO Digital Group plc Interim Results FY21 Secure preferred partner status with leading buyers • Operating as preferred vendor with a major OTT platform, leading to significant increase in projects across all service lines • Netflix Prefer Fulfilment Partner status has allowed us to secure
Slide 15: TALENT Engage with experienced and effective professionals
ZOO Digital Group plc TALENT Interim Results FY21 Engage with experienced and effective professionals • Appointed Emmy® Award-winning re-recording mixer Dave Concors as Head of Sound • Established new talent management function with remit to identify key advocates in each territory Strategy: Attract
Slide 16: Key Performance Indicators
ZOO Digital Group plc Key Performance Indicators Interim Results FY21 Financial KPIs • Revenue up 15% to $16.3 million (H1 FY20: $14.2 million) • EBITDA margin* decreased by 4.8 points to 7.9% (H1 FY20: 12.7%) • Opex as a % of revenue improved by 5.9 points to 32.4% (H1 FY20: 38.3%) Operational KPIs
Slide 17: Consolidated Statement of Comprehensive Income (unaudited)
ZOO Digital Group plc Consolidated Statement of Interim Results FY21 Comprehensive Income (unaudited) Revenues $000’s H1 FY21 H1 FY20 % change • Digital packaging revenue up 33% Revenue 16,393 14,242 15.1% • Localisation sales 10% Cost of sales (11,277) (8,452) (33.4)% • Software licencing down 9% G
Slide 18: Consolidated Statement of Financial Position (unaudited)
ZOO Digital Group plc Consolidated Statement of Interim Results FY21 Financial Position (unaudited) • Purchase of computer hardware in period totalled $1.6 million $000’s H1 H1 FY21 FY20 • Trade receivables up 12% compared to FY20 due the sales increase Assets 11,829 11,534 • Cash improvement due to
Slide 19: Segmental Analysis (unaudited)
ZOO Digital Group plc Segmental Analysis (unaudited) Interim Results FY21 $000’s H1 FY21 H1 FY20 % change Revenues • Strong contribution from Dubbing Revenues Localisation 9,940 9,057 9.7% • Digital packaging benefiting from back catalogue acceleration Digital packaging 5,522 4,166 32.5% Software so
Slide 20: Investment Thesis
ZOO Digital Group plc Investment Thesis Interim Results FY21 • Streaming video on demand is the future of home entertainment • A growing number of international services are driving demand for media localisation and digital packaging • Traditional bricks-and-mortar vendors have been shown in lockdow
Slide 21: Outlook
ZOO Digital Group plc Outlook Interim Results FY21 • ZOO’s technology is becoming increasingly embedded into the operations of major studios and streaming services • Our market-leading end-to-end solution continues to be a major beneficiary of the shift in industry prioritisation • Scope of services
Slide 22: Q&A
ZOO Digital Group plc Interim Results FY21 Q&A
Slide 23: ZOO Digital Group plc Interim Results FY21
ZOO Digital Group plc Interim Results FY21
Slide 24: Appendix
ZOO Digital Group plc Interim Results FY21 Appendix 24
Slide 25: Sales Bridge to $100m
ZOO Digital Group plc Sales Bridge to $100m Interim Results FY21 120 $100 million breakdown: 25 100 100 • Digital packaging $15 million 80 10 • Subtitling $30 million 29 • Dubbing $55 million 60 Market share of addressable 40 6.2 market: 29.8 20 • Current share in 2020, 4% • 10% of $1 billion of 0 H
Slide 26: Consolidated Statement of Comprehensive Income (unaudited)
Consolidated Statement of Comprehensive Income (unaudited) ZOO Digital Group plc Interim Results FY21 6 months to 6 months to Year ended 30 Sep 2020 30 Sep 2019 31 Mar 2020 $000 $000 $000 Revenue 16,393 14,242 29,793 Cost of sales (11,277) (8,452) (19,705) Gross Profit 5,116 5,790 10,088 Other opera
Slide 27: Consolidated Statement of Financial Position (unaudited)
Consolidated Statement of Financial Position as at 31 March (unaudited) ZOO Digital Group plc Interim Results FY21 As at As at As at 30 Sep 2020 30 Sep 2019 31 Mar 2020 $000 $000 $000 ASSETS Non-current assets Property, plant and equipment 4,650 4,463 3,633 Intangible assets 6,693 6,585 6,692 Deferr
Slide 28: Consolidated Statement of Cash Flows (unaudited)
Consolidated Statement of Cash Flows (unaudited) ZOO Digital Group plc Interim Results FY21 6 months to 6 months to Year ended 30 Sep 2020 30 Sep 2019 31 Mar 2020 $000 $000 $000 Cash flows from operating activities Operating (loss)/profit for the period (80) 444 (556) Depreciation 705 755 532 Amorti
Slide 29: Board of Directors
Board of Directors ZOO Digital Group plc Interim Results FY21 Gillian Wilmot Since July 2019 Extensive board level leadership in private and public Chairman environments with industry experience across B2B, technology, advertising and communications. Strengths in value creation, operational insight
Slide 30: Major Shareholders
ZOO Digital Group plc Major Shareholders Interim Results FY21 Shareholder* % of capital Stuart Green (CEO) 15.46 Herald Investment Trust 11.33 Invesco Oppenheimer Global Opportunities Fund 9.39 Canaccord Genuity Group Inc. 9.15 Hargreaves Lansdown 6.65 Kabouter Management LLC 4.26 Henderson Opportun