Zoo Digital Group Plc · LSE:ZOO
Zoo Digital — FY2020 Earnings Presentation
28 slides from Zoo Digital's earnings presentation, Jul 14, 2020
Slide 1: ZOO Digital Group plc Final Results FY20
ZOO Digital Group plc Final Results FY20
Slide 2: Disclaimer
ZOO Digital Group plc Disclaimer Final Results FY20 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 is being solely issued to and directed at (i) persons
Slide 3: Contents
ZOO Digital Group plc Contents Final Results FY20 5. ZOO at a glance 7. Highlights 8. COVID-19 9. Strategic review 14. Financial review 18. Investment summary 19. Outlook 21. Appendices 3
Slide 4: ZOO is trusted by the biggest names in global media and entertainment
ZOO Digital Group plc ZOO is trusted by the biggest names Final Results FY20 in global media and entertainment 4
Slide 5: ZOO at a Glance
ZOO Digital Group plc ZOO at a Glance Final Results FY20 5
Slide 6: ZOO's USP: Cloud-based media localisation technology
ZOO Digital Group plc ZOO’s USP: Final Results FY20 Cloud-based media localisation technology Subtitling production and management Dubbing production and management Original language script production and management Workflow management Localisation operations management 6
Slide 7: FY20 Highlights
ZOO Digital Group plc FY20 Highlights Final Results FY20 • Won competitive selection process and operating as a primary vendor of localisation and digital packaging services for a major OTT platform • ZOOstudio adopted by a major media company to manage its localisation operations for OTT production
Slide 8: COVID-19
ZOO Digital Group plc COVID-19 Final Results FY20 • Seamless transition to working from home; recruited 13 people since February • Temporary softening of sales in February/March as customers moved to WFH • New feature and TV productions halted and resuming slowly • Curtailed orders for originals • C
Slide 9: Growth – Four Strategic Pillars
ZOO Digital Group plc Growth – Four Strategic Pillars Final Results FY20 INNOVATE Create value-adding software technology SCALE Operate a freelance network COLLABORATE Work with like-minded, world-class experts in media localisation, education and research PARTNER Secure preferred partner status wit
Slide 10: Growth Strategy and Progress: INNOVATE
ZOO Digital Group plc Growth Strategy and Progress 1 Final Results FY20 INNOVATE – Create value-adding software technology Deliver a significant competitive advantage by making localisation and digital distribution services more efficient, scalable and collaborative while ensuring consistently high
Slide 11: Growth Strategy and Progress: SCALE
ZOO Digital Group plc Growth Strategy and Progress 2 Final Results FY20 SCALE – Operate a freelance network For creative and skilled roles, identify, recruit, train and retain freelance workers for a cost-efficient scalable resource across all languages Progress • Cleared pool of those with insuffic
Slide 12: Growth Strategy and Progress: COLLABORATE
ZOO Digital Group plc Growth Strategy and Progress 3 Final Results FY20 COLLABORATE – Work with like-minded, world-class experts in media localisation, education and research Appoint qualified partners and provide access to ZOO software to establish a presence for ZOO in key countries, particularly
Slide 13: Growth Strategy and Progress: PARTNER
ZOO Digital Group plc Growth Strategy and Progress 4 Final Results FY20 PARTNER – secure preferred partner status with leading buyers Work with the leading global buyers of subtitling, dubbing and distribution services in order to secure ZOO as a preferred partner Progress • Selected as primary End-
Slide 14: Consolidated Statement of Comprehensive Income
ZOO Digital Group plc Consolidated Statement of Final Results FY20 Comprehensive Income Revenues $000’s 2020 2019 % change • Excluding DVD digital packaging and Revenue 29,793 28,818 3.4% software services, grew 12% Cost of sales (19,705) (19,624) (0.4%) • Revenue in Europe and Asia grew 30% Gross p
Slide 15: Consolidated Statement of Financial Position
ZOO Digital Group plc Consolidated Statement of Final Results FY20 Financial Position • Non-current assets increased by $2.8 million as a result of IFRS 16 reclassification $000’s 2020 2019 • Trade receivables up 15% compared to FY19 due Assets 10,811 8,054 to late payments on new contract with exis
Slide 16: Segmental Analysis
ZOO Digital Group plc Segmental Analysis Final Results FY20 $000’s 2020 2019 % change Revenues • Localisation held back by Revenues contract slippage Localisation 20,751 22,323 (7.0%) • Digital packaging benefiting from Digital packaging 7,411 4,620 60.4% new contract 1.631 1,875 (12.9%) Software so
Slide 17: Key Performance Indicators
ZOO Digital Group plc Key Performance Indicators Final Results FY20 Financial KPIs • Revenue up 3% to $29.8 million (FY19: $28.8 million) • EBITDA margin* improved by 5.8 points to 7.2% (FY19: 1.4%) • Opex as a % of revenue improved by 1 point to 36% (FY19: 37%) Operational KPIs • Number of freelanc
Slide 18: Investment Summary
ZOO Digital Group plc Investment Summary Final Results FY20 Strategy Technology-first approach to media localisation Scalability Cloud-based, agile, scales through partners and freelancers Growth Large expanding international market still in its infancy Culture Steeped in the industry with long trac
Slide 19: Outlook
ZOO Digital Group plc Outlook Final Results FY20 • Recent industry announcements confirm strong growth tailwinds in the global home entertainment market, requiring an acceleration in content creation and localisation • The impact of COVID-19 on the media localisation business has seen a structural s
Slide 20: Q&A
ZOO Digital Group plc Final Results FY20 Q&A
Slide 21: ZOO Digital Group plc Final Results FY20
ZOO Digital Group plc Final Results FY20
Slide 22: Appendix
ZOO Digital Group plc Final Results FY20 Appendix 22
Slide 23: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income ZOO Digital Group plc Final Results FY20 2020 2019 $000 $000 Revenue 29,793 28,818 Cost of sales (19,705) (19,624) Gross Profit 10,088 9,194 Other operating income 252 157 Other operating expenses (10,896) (10,671) Operating (loss)/profit (556) (1,320)
Slide 24: Consolidated Statement of Financial Position as at 31 March
Consolidated Statement of Financial Position as at 31 March ZOO Digital Group plc Final Results FY20 2020 2019 $000 $000 ASSETS Non-current assets Property, plant and equipment 3,633 944 Intangible assets 6,692 6,624 Deferred income tax assets 486 486 10,811 8,054 Current assets Trade and other rece
Slide 25: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows ZOO Digital Group plc Final Results FY20 2020 2019 $000 $000 Cash flows from operating activities Operating (loss)/profit for the year (556) (1,320) Depreciation 532 553 Amortisation and impairment 1,068 904 Share based payments 290 397 Changes in working capital
Slide 26: OTT Video Market
ZOO Digital Group plc OTT Video Market Final Results FY20 Platform-first services Direct-to-Consumer services 26
Slide 27: Management Team
Management Team ZOO Digital Group plc Final Results FY20 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 and c
Slide 28: Major Shareholders
ZOO Digital Group plc Major Shareholders Final Results FY20 Shareholder* % of capital Stuart Green (CEO) 15.47 Herald Investment Management 11.33 Invesco Ltd 9.39 Canaccord Genuity Group Inc. 8.89 Kabouter Management LLC 4.27 Janus Henderson Investors 3.46 Sarasin & Partners 3.19 Cavendish Asset Man