Videndum PLC · LSE:VID
Videndum — The Vitec Group — Investor Day (October 2011)
58 slides from Videndum's investor day presentation, Oct 4, 2011
Slide 1: Images Matter – Strategy Day
Images Matter Strategy Day 4 October 2011 Cautionary statement – Statements made in the this presentation may contain forward looking statements that are subject to risk factors associated with, amongst other things, the economic and business circumstances occurring from time to time in the countrie
Slide 2: Agenda
Page 2 Agenda Introduction Stephen Bird Three Market growth strategy Stephen Bird Corporate development Stephen Bird Financial review Paul Hayes Broadcast & Video update Joop Janssen Coffee break Photographic update Marco Pezzana MAG update Steve Shpock Closing remarks Stephen Bird
Slide 3: Three Market growth strategy
Three Market growth strategy Stephen Bird CEO
Slide 4: Two years ago we laid out our three market strategy
Page 4 Two years ago we laid out our three market strategy Broadcast - Invest in fast growing areas: B&I & LED lighting & Video - Expected growth rate: 5% - Invest in Pro-market and grow Manfrotto through Photographic product extension & appealing to wider audience - Expected growth rate: 2-4% MAG -
Slide 5: Three market strategy update 2011
Page 5 Three market strategy update 2011 Broadcast - Continue to invest in LED lighting & Video - Expected growth rate: 7% £750m - Executing on Manfrotto Powerbrand strategy to Photographic expand product range and appeal to wider audience £830m - Expected growth rate: 5% MAG - Grow IMT organically
Slide 6: Corporate Development
Corporate Development Stephen Bird CEO
Slide 7: Corporate Development
Page 7 Corporate Development Exit from non-core businesses (e.g.) Clear-Com Acquisitions into adjacent markets & technologies ⁻ Lastolite going well ⁻ Acquisition announcement of Haigh-Farr 2010 2011 2011 Clear-Com disposal Lastolite acquisition Haigh-Farr acquisition
Slide 8: Haigh-Farr: a leader in antennae technology
Page 8 Haigh-Farr: a leader in antennae technology Based in Bedford, NH 21 employees led by David Farr (CEO) Products: High–end antennae ⁻ Wrap-around ⁻ Conformal ⁻ Blade and button Wraparound™ Antenna Blade Antennas Market position: leading position in conformal / wrap-around antennae Cus
Slide 9: Haigh-Farr
Page 9 Haigh-Farr High quality business ⁻ Well recognised brand ⁻ Leading technology and IP ⁻ Good breadth of programmes on which it is specified ⁻ Strong management Growth potential ⁻ Trend for more sophisticated antennae ⁻ Faster growth from Vitec investment and internationally Synergies ⁻ E
Slide 10: Financial Review
Financial Review Paul Hayes Group FD
Slide 11: Vitec at a glance
Page 11 Vitec at a glance Videocom 2010 Premium Broadcast Equipment Supports, LED Lighting, Mobile power, Revenue £121.6m Bags, Prompters Operating Profit* £8.4m Integrated Microwave Solutions (MAG) Video Transmission Devices Operating Margin* % 6.9% ** Imaging & Staging 2010 Premium Photographic eq
Slide 12: Geographic reach
Page 12 Geographic reach Wide geographic spread: sites in 14 countries; sell into 100+ countries Strong H1 2011 sales into Asia and Middle East including China, Turkmenistan and Kazakhstan % of revenue Destination 2010 2009 N America 47 50 Europe 31 31 Asia-Pacific 16 13 RoW 6 6 Group office Vid
Slide 13: There is potential to improve Group margins
Page 13 There is potential to improve Group margins Targeting the medium term improvement in Group margins through: ⁻ The benefit of maturing sales initiatives delivering longer-term margin growth ⁻ Addressing the performance of lower margin businesses ⁻ Control over operating expenditure ⁻ Benefi
Slide 14: There is a clear focus on cash management
Page 14 There is a clear focus on cash management Cash generation is a priority Weekly reporting of cash performance and rolling cash forecasts Established metrics to manage cash performance including: Inventory Days; Receivables Days; Payables Days; and Working Capital to Sales ratios Managem
Slide 15: Vitec performed well in the first half
Page 15 Vitec performed well in the first half Revenue up 18.4% up in organic constant currency Improvement in gross and operating margins* in first half Adjusted Basic EPS up 21.0% to 23.6p Interim dividend increased by 5.3% to 8.0p and covered 3.0x by earnings per share* * Before amortisat
Slide 16: Broadcast & Video
Three market strategy Broadcast & Video Joop Janssen Divisional CEO
Slide 17: Agenda
Page 17 Agenda Market Growth Drivers - Camera and technology trends Differentiation of our Brands and Products - Sachtler Ace Success in Overseas Markets Anton/Bauer – Mobile Power Solutions for Medical Carts Litepanels – LED Lighting Adoption Summary
Slide 18: Market Growth Drivers
Page 18 Market Growth Drivers Professional video camera sales drives Videocom revenues Growing number of new camera users - More video content being shot than ever before - Enabled by digital technologies and deregulation Sources: comScore, NetFlix, YouTube, eMarketer Camera replacement cycles a
Slide 19: Market Growth Drivers
Page 19 Market Growth Drivers Better quality images equals higher performance and value of products around the camera Videocom sales less dependant on ‘traditional’ Broadcasters or Advertising revenues 1% 6% 5% Broadcast 9% Revenue Split Traditional advertising % 49% 42% Subscription & PPV % 200
Slide 20: Missing an image is not an option in broadcasting
Page 20 “Missing an image is not an option in broadcasting”
Slide 21: Videocom - Differentiation of our Brands and Products
Page 21 Videocom - Differentiation of our Brands and Products Industry Leader In Prompting Leading Robotics Videocom Industry Leader Technology Division Compelling ROI Industry Leader Broadcast Range of industry awards:
Slide 22: Sachtler Ace – You only get one shot so make it count!
Page 22 Sachtler Ace – You only get one shot so make it count! Smooth pan and tilt (patented) Lightweight Price range £400-450
Slide 23: Success in Overseas Markets
Page 23 Success in Overseas Markets Strongest global distribution network Central Asia and BRIC growing fast: - Brazil – New Office – on track to deliver $5 million in 2011 - Major Turkmenistan and Kazakhstan projects - Key success in Oman - Central China TV (CCTV) new CCTV TV TOWER building in
Slide 24: Anton/Bauer – Mobile Power Solutions for Medical Carts
Page 24 Anton/Bauer – Mobile Power Solutions for Medical Carts 2.5x video battery market (£85m) We are focused on: - Hospitals - Medical cart OEMs 135% growth in 2011 USA Electronic Medical Record mandate (EMR) by 2014-2015 We are different: - Hot swappable batteries Recruited industry p
Slide 25: Litepanels - LED Lighting Adoption
Page 25 Litepanels - LED Lighting Adoption The world leader in Broadcast LED lighting Compelling value proposition Innovative roadmap Manfrotto photo line growing China factory ramped-up Croma Hilio LEDs replacing traditional lighting in studios Recent wins: - CNBC (London) - Sky 24 Sp
Slide 26: Summary
Page 26 Summary Healthy growth drivers for the coming years over the economic cycle - Growth in new cameras with shortening replacement cycles - Premium quality camera support required for premium quality pictures Less dependency on advertising Videocom’s market leading brands ideally position
Slide 27: Photographic
Page 27 Three market strategy Photographic Marco Pezzana Divisional CEO
Slide 28: Photographic – market drivers
Page 28 Photographic – market drivers DSLR growth: continuing at 10% + pa ⁻ V-DSRL hybrid photo-video ⁻ Bridge cameras ⁻ Female consumers New population of photographers (social recorders): ⁻ High Definition smart phones: 47% of social recorders use a smart phone to take photos ⁻ Social Media ph
Slide 29: Our strategy
Page 29 Our strategy Maintain leadership in pro-ams through continuous innovation Grow Manfrotto brand by leveraging its strength - Into adjacent products - Into premium consumer segments - Into new distribution channels (consumer electronics and web) Increase penetration of accessories - By e
Slide 30: Photographic – our achievements
Page 30 Photographic – our achievements On target to achieve strategic objectives: - Sales of new Manfrotto consumer portfolio on target - Professional market position maintained - Strong growth in both photo and video accessories Powerbrand rolled out to all target strategic accounts successful
Slide 31: MPB performance by key strategic account
Page 31 MPB performance by key strategic account AMERICA EMEA APAC Exceeding target to achieve £10-15m annualised revenue
Slide 32: Global retail initiative: Manfrotto Power Dealers
Page 32 Global retail initiative: Manfrotto Power Dealers 30 brand destination stores world wide
Slide 33: Manfrotto wins prestigious awards across categories and segments
Page 33 Manfrotto wins prestigious awards across categories and segments 70% OF REVENUE LeadingCOVERED innovation BY withTOP pros12and ACCOUNTS consumers alike
Slide 34: Most popular with social recorders so far
Page 34 Most popular with social recorders so far LED launch to consumers scheduled for gifting season
Slide 35: The LED revolution
Page 35 The LED revolution Natural light Flash light LED light A user friendly 70% OF REVENUE photo light COVERED BYwith TOPmotion picture capabilities 12 ACCOUNTS
Slide 36: Social media video
Page 36 SOCIAL MEDIA video (2 MINS)
Slide 37: Manfrotto communication plan
Page 37 Manfrotto communication plan
Slide 38: Manfrotto communication plan
Page 38 Manfrotto communication plan SPECIALISED MAGAZINES PROS – AMATEURS EDUCATIONAL SOCIAL MEDIA SRS – HOBBYIST INTERACTIVE EVENTS PR – LIFESTYLE MAGAZINES
Slide 39: Building a Manfrotto community online
Page 39 Building 70% OF REVENUE a Manfrotto COVERED BY global TOP 12community ACCOUNTSon line
Slide 40: Manfrotto meets the community: 2011 – 2012 global tour
Page 40 Manfrotto meets the community: 2011 – 2012 global tour COVENT GARDEN 12 -13 NOVEMBER 2011
Slide 41: MAG
Page 41 Three market strategy MAG Steve Shpock Divisional CEO
Slide 42: Integrated Microwave Technologies – IMT
Page 42 Integrated Microwave Technologies – IMT 20+ years experience in designing and manufacturing state-of-the- art wireless HD/SD video digital radios World leader in ultra compact COFDM wireless technology Formed by acquisition in 2007 of three Broadcast companies: ⁻ Nucomm ⁻ RF Central ⁻
Slide 43: IMT Markets
Page 43 IMT Markets Law Enforcement, • Airborne Police, Aerial Surveillance Emergency Services, • Mobile and Central Command Units Military, and • Surveillance, Monitoring and Detection Homeland Security • First Responders • On Site and Studio Newscast Broadcast, Cable, • News Helicopters, ENG Vans,
Slide 44: MAG – market drivers
Page 44 MAG – market drivers Law enforcement: improving situational awareness 3 letter agency: miniaturisation to improve surveillance capability Military: minimising loss of life and increasing use of unmanned systems Need for Intelligence, Surveillance and Reconnaissance (ISR) remains strong
Slide 45: IMT Advanced Products
Page 45 IMT Advanced Products Compact (8 cu. in.) and Ultra Compact (2 cu. in.) Transmitters Hand-held and Portable (Suitcase) diversity Receive Systems
Slide 46: IMT Military, Aerospace & Government Solutions
Page 46 IMT Military, Aerospace & Government Solutions Airborne Downlinks - Higher Power TX/RX - HD Capable Intelligence, Surveillance and Reconnaissance (ISR): - Mobile, Portable, Body Worn - Small Size, Low Latency, Extended Range First Responders, Command Centers UAV, UGV and Unmanned Sys
Slide 47: Law Enforcement Applications
Page 47 Law Enforcement Applications Airborne Video Downlinks - Helicopters and Fixed Wings - TX/RX, antennas, video transmission Ground Systems - Central receive sites - Mobile command units - Police and SWAT vehicles
Slide 48: Military Applications
Page 48 Military Applications Surveillance, Monitoring, Detection Situational Awareness - Microwave links for tracking video monitoring - Unmanned robotic systems - Optical and Stabilization systems - Command and Control centers
Slide 49: Unmanned Military Applications
Page 49 Unmanned Military Applications OEM UAV, UGV, UUV Fully Integrated Encryption and Power Efficiency Government Surveillance and Homeland Security Market Custom Designed Solutions
Slide 50: IMT's Digital Downlink Video Technology
Page 50 IMT’s Digital Downlink Video Technology High quality video using IMT technology Low quality video at G-20 Summit in Pittsburgh Broadcast quality HD video Live video transmission, up to 70 miles away Applications include: crowd control, surveillance, first responders, disaster relief
Slide 51: Sales Synergies – Haigh-Farr
Page 51 Sales Synergies – Haigh-Farr ▶ The acquisition of Haigh-Farr (HF) will open the door for Vitec to a blue-chip list of prime customers - Both in the US and increasingly in Europe - IMT will benefit from HF antennae technology in such areas as airborne video surveillance, unmanned system opera
Slide 52: Summary & Outlook
Page 52 Summary & Outlook ▶ Vitec continues to make inroads into the MAG market - Number of new customers has more than tripled over the last year - IMT has had significant success in sales of new products - There are good opportunities with large contracts (Auction 66, DHS), but this business is lu
Slide 53: Closing remarks
Closing remarks Stephen Bird CEO
Slide 54: A clear strategy to drive shareholder value
Page 54 A clear strategy to drive shareholder value Growth Strategy Leading branded products Strong customer relationships Global reach Markets with long-term growth Enhancing Margins Clearly defined sales initiatives and opportunities Potential to improve margins to reflect premium bran
Slide 55: Missing an image is not an option in broadcasting
Page 55 “Missing an image is not an option in broadcasting”
Slide 56: Taking more flattering and attractive images to share with friends online
Page 56 “Taking more flattering and attractive images to share with friends online, matters to me”
Slide 57: Transmitting a perfect image could make the difference
Page 57 “Transmitting a perfect image could make the difference between anonymous yob and arrested criminal”
Slide 58: Images Matter – Thank you
Images Matter Thank you