Videndum PLC · LSE:VID
Videndum — The Vitec Group — FY2007 Earnings Presentation
28 slides from Videndum's earnings presentation, Mar 3, 2008
Slide 1: 2007 Full Year Results
2007 Full Year Results Gareth Rhys Williams, Chief Executive Alastair Hewgill, Finance Director 3 March 2008
Slide 2: Agenda
Agenda Highlights – Gareth Rhys Williams Financial Review – Alastair Hewgill Divisional Review & Outlook – Gareth Rhys Williams 2
Slide 3: 2007 highlights
2007 highlights Another year of strong growth Reported revenue growth of 23% Constant currency organic revenue up by 12% Imaging and Staging revenue up 24% Forecasts for D-SLR growth remain positive Broadcast Systems full year margin back above 10% RF Systems performing to plan: BAS bene
Slide 4: Financial review
vitecgroup Financial review
Slide 5: Income statement
Income statement Another excellent year 2007 2006 Δ £m £m % Revenue 273.8 222.3 23.2% Gross margin % 40.7% 41.9% -1.2 pts Operating expenses* (78.7) (68.0) 15.7% Operating profit* 32.6 25.2 29.4% Operating margin % 11.9% 11.3% +0.6 pts PBT* 30.3 24.1 25.7% Headline tax charge % 37.0% 4
Slide 6: Divisional revenue trend
Divisional revenue trend* Continued organic & acquisition-led growth 140 120 100 Revenue* (£m) 80 60 40 20 2002 2003 2004 2005 2006 2007 Broadcast Systems Broadcast Services Imaging & Staging * Reported sterling, continuing operations 6
Slide 7: Sterling reporting understates underlying growth of 30%
Sterling reporting understates underlying growth of 30% Constant currency organic growth of 12% Δ 2006 FX 2006* 2007 Organic Acquisition £m £m £m £m % £m % £m % Divisional revenue Imaging & Staging 94.6 (4.3) 90.3 117.3 29.9% 16.7 18.5% 10.3 11.4% Broadcast Systems 100.5 (4.8) 95.7 129.8 35.6% 6
Slide 8: Operating profit bridge: up 29%
Operating profit bridge: up 29% Operating profit up 46% in constant currency 40 Price/Cost Op. Exps Vol/Mix Acquisitions FX Transl FX Transact 35 30 (£m) 25 20 FY07 Profit* FY06 Profit* 15 £25.2m £10.7m £1.3m (£4.7m) £3.8m (£1.3m) (£2.4m) £32.6m * Operating profit before significant items Addition
Slide 9: Operating cash flow
Operating cash flow Continued strong performance 2007 2006 Δ £m £m £m Operating profit* 32.6 25.2 7.4 Significant items (4.9) (1.7) (3.2) Depreciation / amortisation 15.6 10.6 5.0 Working capital (9.5) (6.9) (2.6) Provisions made / (utilised) (0.2) 2.1 (2.3) Other 0.2 (0.6) 0.8 Cash ge
Slide 10: Free cash flow
Free cash flow Continued strong operating cash flow; higher debt due to RF Systems acquisition 2007 2006 Δ £m £m £m Cash generated from operations 33.8 28.7 5.1 Capital expenditure (18.4) (13.2) (5.2) Proceeds of asset sales 1.8 2.0 (0.2) Net interest paid (3.0) (1.5) (1.5) Tax paid (9.5)
Slide 11: Sundry financial points
Sundry financial points Foreign exchange effects H2 07 £1.7m adverse vs H2 06 – FY 2007 £3.7m worse than FY 2006 2008 estimate c.£1.9m adverse impact (at current rates) Tax 37% headline charge (2006: 40%) c.5% less for cash taxes – UK b/fwd tax losses now being accessed 2008 guidance:
Slide 12: Divisional review
vitecgroup Divisional review
Slide 13: A platform for further growth
“A platform for further growth” The Vitec Group plc CEO: Gareth Rhys Williams FD: Alastair Hewgill Imaging and Staging Broadcast Systems Broadcast Services CEO: Francesco Bernardi CEO: Joop Janssen CEO: Andy Crist 2007 2007 2007 Sales £117.3m Sales £129.8m Sales £26.7m Profit £17.7m Profit £13.3m Pr
Slide 14: Imaging & Staging
Imaging & Staging 24% sales growth 2007 2006 Δ £m £m % Revenue 117.3 94.6 24.0% Operating profit* 17.7 16.6 6.6% Operating margin %* 15.1% 17.5% -2.4 pts * Pre-goodwill charges In constant currency, revenue up 30%, profit up 20% Imaging – continued growth Pro sales remain strong Encour
Slide 15: Broadcast Systems
Broadcast Systems Continued sales and profit growth 2007 2006 Δ £m £m % Revenue 129.8 100.5 29.2% Operating profit* 13.3 6.9 92.8% Operating margin %* 10.2% 6.9% 3.3 pts * Pre goodwill charges, restructuring costs and profit on sale of property Excellent year at Camera Dynamics Autoscript
Slide 16: Broadcast Services
Broadcast Services Progress despite lack of major events 2007 2006 Δ £m £m % Revenue 26.7 27.2 -1.8% Operating profit 1.6 1.7 -5.9% Operating margin % 6.0% 6.3% -0.3 pts In US$, sales were up 7%, with profit improving slightly Total upgrade of NFL fibre system Agreements with Sony, Panas
Slide 17: Outlook
vitecgroup
Slide 18: Leveraging growth
Leveraging growth “Products and services for the broadcast, entertainment & photographic industries” Underlying markets capable of sustained growth Leading player in multiple niche markets Well known brands with worldwide distribution Experienced management team Good track record on acquis
Slide 19: Product awards won in 2007
Product awards won in 2007 • Manfrotto’s 190XPROB • Gitzo’s GT2530 Mountaineer • Gitzo’s Traveller GT1550T • Gitzo’s G1258 Carbon 6X tripod tripod tripod Mountaineer Reporter tripod • Kata’s GDC Rucksack R101 • Kata’s GDC Organiser Case • Kata’s Nat Geo Earth Explorer backpack OC 97 • Kata Ergo-Tech
Slide 20: Product awards won in 2007
Product awards won in 2007 • Clear-Com’s Tempest digital wireless intercom system • Nucomm’s NewsHub • Vinten’s Vector 950 Active Pan/ Tilt Head Imaging stabilisation system • Autoscript’s ELP-8DV • Autoscript’s Voice- field-portable Plus voice-activated prompting teleprompting system solution • Aut
Slide 21: Outlook
Outlook Group well positioned with exciting product pipeline Strong opening order book Adverse c.£1.9m FX impact for 2008 at today’s rates RF Systems will contribute for full year Bogen Imaging UK opened in February Continuing to look for acquisitions that complement our premium brands “
Slide 22: Appendices
vitecgroup Appendices
Slide 23: Key financial measures: 5-year trend
Key financial measures: 5-year trend 150 Revenue Operating profit* 19 140 17 130 15 120 13 £m £m 110 11 100 9 90 7 80 5 70 H102 H202 H103 H203 H104 H204 H105 H205 H106 H206 H107 H207 H102 H202 H103 H203 H104 H204 H105 H205 H106 H206 H107 H207 Basic EPS* Closing net debt 25 45 23 40 21 35 19 30 17 Pe
Slide 24: FX update
FX update Year on year effect Translation Transaction Total on profit £/$ €/$ £/€ £m £m £m Actuals Average spot FY03 1.63 1.13 1.45 1.2 (2.3) (1.1) Average spot FY04 1.82 1.24 1.47 (0.9) (3.9) (4.8) Average spot FY05 1.82 1.24 1.46 0.1 (1.0) (0.9) Average spot FY06 1.84 1.25 1.47 (0.2) (0.5) (0.7) G
Slide 25: Digital SLR forecasts keep improving
Digital SLR forecasts keep improving 12,000 12,000 11,212 10,000 10,301 10,000 9,132 8,500 7,900 8,000 7,200 8,000 6,600 6,000 Units '000 Units '000 6,888 6,528 6,000 5,994 6,000 5,624 5,255 4,677 4,000 4,000 7,468 5,264 4,100 2,000 2,000 2,760 0 0 2008 2011 2009 2010 2007 2006 2004 2005 Actual CIPA
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Slide 27: Important Notice
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 the foll
Slide 28: 2007 Full Year Results
2007 Full Year Results Gareth Rhys Williams, Chief Executive Alastair Hewgill, Finance Director 3 March 2008