Vista Group International Ltd · NZX:VGL
Vista Group International — Investor Day (November 2019)
83 slides from Vista Group International's investor day presentation, Nov 18, 2019
Slide 1: Investor Day
Investor Day 18 November 2019 1
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 or purc
Slide 3: Agenda
AGENDA 10:00 WELCOME & INTRO Matt Cawte 10:10 VISTA GROUP Kimbal Riley 10:30 THE FILM INDUSTRY Murray Holdaway KIMBAL RILEY MURRAY HOLDAWAY MATT CAWTE 11:00 VISTA CINEMA – SaaS ACCELERATED GROUP CHIEF EXECUTIVE GROUP EXECUTIVE DIRECTOR GROUP CFO Mark Pattie, Grant Smith, Matt Cawte 11:45 BREAK 12:00
Slide 4: Vista Group
VISTA GROUP • Fundamentals • Innovation • Themes KIMBAL RILEY GROUP CHIEF EXECUTIVE
Slide 5: Vista Group
VISTA GROUP THE LEADING PROVIDER OF SOFTWARE AND DATA SOLUTIONS TO THE ENHANCING GLOBAL FILM THE INDUSTRY MOVIEGOING EXPERIENCE
Slide 6: Strong Fundamentals
STRONG FUNDAMENTALS As a Group we have very strong fundamentals • We have a global market position – customers in 100+ countries – we are resilient against events in one country or region • We are the dominant partner for enterprise cinema globally – with a market share of 50% excluding China • Homo
Slide 7: Innovation
INNOVATION We’ll talk to SaaS for Vista Cinema shortly, but it’s simply a continuation of our heritage…. We were first to market with reserved seating on the web & combined F&B and ticket transactions at POS – and we continue…. RECENTLY RELEASED COMING IN 2020-2021 Horizon – Full fidelity data wareh
Slide 8: Themes for 2020 and Beyond
THEMES FOR 2020 AND BEYOND Simplify our operations • Reseller relationships now limited to India and Pakistan • Options to merge smaller businesses into larger (announcements coming) Create greater scale in the businesses we have Increase our Target Addressable Market in multiple ways • Adjacent opp
Slide 9: Themes for 2020 and Beyond
THEMES FOR 2020 AND BEYOND Specific cross-Group teams focused on the top 10 global cinema circuits • Global leadership for management of top 10 circuits supported by cross-business teams • Integrated partnership agreements Recurring Revenue – constant drive to increase recurring revenue % • New Vist
Slide 10: Vista Group Operating Segments
VISTA GROUP OPERATING SEGMENTS NOVEMBER 2019 CINEMA BUSINESSES CORE MOVIO ADDITIONAL GROUP COMPANIES (AGC) EARLY STAGE INVESTMENTS (ESI) ASSOCIATES / JOINT VENTURES
Slide 11: The Film Industry
THE FILM INDUSTRY The state of Cinema and Film around the world MURRAY HOLDAWAY GROUP EXECUTIVE DIRECTOR
Slide 12: Box Office Is Increasing
BOX OFFICE IS INCREASING Global Box Office – All Films (US$ Billions) $45 $40 $35 $30 $25 $27.4 $29.4 $29.2 $26.0 $27.3 $20 $15 $10 $5 $10.4 $11.1 $11.4 $11.1 $11.9 $- 2014 2015 2016 2017 2018 U.S./Canada International % change % Change 2014 2015 2016 2017 2018 18 vs. 17 18 vs. 14 U.S./Canada $10.4
Slide 13: Overall YTD Box Office Revenue
Overall YTD Box Office Reverwe ($bn) Reports of the Death of Movie-Going are Greatly Exaggerated @soLOmoNn = 2018 was a record year for the industry domestically, outpacing the previous record year (2016) by 4.5% = Despite early weakness in first half of 2019 (compared to all-time highs in 2018), ex
Slide 14: It's Not Just Price
IT'S NOT JUST PRICE Global box office revenue will exceed US$50bn during the forecast period (2019-2023), due to both rising admissions in all major regions and renewed interest and investment in cinema outside the major regions. - PWC Global Entertainment and Media Outlook 2019 AND YOUNG PEOPLE STI
Slide 15: China Alone Adds Million Admissions a Year
CHINA ALONE ADDS 100 MILLION ADMISSIONS A YEAR Total Cinema Attendance – 2009 to 2016 1.8 1.6 1.4 Attendance, billions 1.2 1.0 1.7 0.8 1.6 1.4 0.6 1.3 0.4 0.8 0.6 0.2 0.5 0.3 0.2 0.2 - 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Oxford Economics, National Bureau of Statistics of China
Slide 16: And It's Great Value
AND IT'S GREAT VALUE And before the pundits start attributing that strong box-office haul to rising ticket prices, it needs to be pointed out that the average cost of going to the movies actually fell in Q3 2019. Jim AMOS for Forbes Magazine – source NATO and Deadline.com – October 2019 2019 Average
Slide 17: Screens Are Increasing
SCREENS ARE INCREASING Global Digital Screens 200,000 180,000 160,000 140,000 120,000 138,560 125,982 100,000 112,661 99,807 85,947 80,000 60,000 40,000 20,000 41,518 42,552 42,659 43,216 43,459 - 2014 2015 2016 2017 2018 U.S./Canada International Source: IHS Markit 2018 total screen figures are est
Slide 18: And There Is Plenty of Headroom
AND THERE IS PLENTY OF HEADROOM Number of cinema screens per million population in selected countries worldwide in 2015 140 Number of screens per million population 120 100 80 60 126 40 87 86 61 20 45 39 27 23 17 12 - e ) es a lia a om ) ia nd an ge nc si re d ra at ila us In d Ko ra rb a st St ng a
Slide 19: More Movies
MORE MOVIES Films Released Source: Comscore – Box Office Essentials (Total), MPAA (Subtotals) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 18 vs. 17 18 vs. 09 Films released17 557 563 609 678 658 706 707 732 785 758 -3% 36%
Slide 20: Reign of the House of Mouse
Reign of the House of Mouse SOLOMON Disney maintains a commanding ~41% share of 2019 YTD box office * Disney has steadily increased its share of the box office over the last decade, culminating in massive outperformance of competitors in 2018 and 2019 YTD, with a box office share more than double it
Slide 21: Moviegoers Stream Content
MOVIEGOERS STREAM CONTENT (AND STREAMERS GO TO THE MOVIES) “Our takeaway is that Netflix and the expansion of [streaming video on demand] platforms will have minimal impact on box office given the vast supply of content, plenty of which is ideal for theatrical release (and most talent fiercely and c
Slide 22: Effect of Streaming on Movie Lifetime Revenues
EFFECT OF STREAMING ON MOVIE LIFETIME REVENUES Gross film revenues – All platforms 2008-2017 4,000 3,500 3,000 Growth in Digital Video (Streaming Services) are "eating" DVD rentals and 2,500 sales while Theatrical continues to grow £ million 2,000 1,500 1,000 500 - 2010 2011 2012 2013 2014 2015 2016
Slide 23: Where Studios Make Their Money
WHERE STUDIOS MAKE THEIR MONEY American studio revenue breakdown PPV/Other 2.0% Licensing 6.6% Pay TV 8.4% Free TV Home Video 12.9% 48.7% Theatrical 21.4% Source: Seekingalpha.com
Slide 24: Theatrical Windows – Where To?
THEATRICAL WINDOWS – WHERE TO? Week of Play 1 year of data from 70 site Vista circuit
Slide 25: Vista's Place in the Cinema World
Vista’s Place In The Cinema World • The Vista Ecosystem • Latest from Vista Cinema MURRAY HOLDAWAY GROUP EXECUTIVE DIRECTOR
Slide 26: Market Share
34% EUROPE 7,016/20,401 screens 86% CANADA 2,082/2,436 screens 16% CHINA 49% USA 6,728/41,476 screens 16,897/34,512 screens 60% MIDDLE EAST 1,775/2,957 screens 36% ASIA (excl. CHINA) 98% CENTRAL AMERICA 5,120/14,131 screens 7,386/7,556 screens 96% AFRICA 821/854 screens 97% AUSTRALASIA 39% SOUTH AME
Slide 27: Where To From Here?
Where To From Here? Vista Digital Experience design - build - manage XM (Customer Experience Manager) Web Loyalty Vise Mobile Vouchers & Gift Cards Kiosk Call Centre Digital Signage Enterprise Head Office Vista Horizon Film Manager Group Sales
Slide 28: Configuration, Functionality, Experience
Configuration, Functionality, Experience WEB Providing the exhibitor with an unrivalled operating platform to continually MOBILE develop their business and deliver better and better customer experiences. CONFIGURATION FUNCTIONALITY EXPERIENCE KIOSK
Slide 29: Accelerating SaaS
Accelerating SaaS Our goal is to deliver a multi-tenant SaaS product for cinema circuits of all sizes in 2021
Slide 30: By Accelerating SaaS, our customers will…
By Accelerating SaaS, our customers will… • Be running the latest software • Be able to access to the new functionality more easily • Be able to reduce hardware investment by smoothing out peak hardware requirements • Increase their physical and data security capabilities and reduce their compliance
Slide 31: By Accelerating SaaS, Vista will be able to…
By Accelerating SaaS, Vista will be able to… • Reduce lead-times to customers • Increasing access to existing and new modules • Deliver error corrections more quickly • Expand our services offering • Replace customer hardware and network spend with software and service • Increase our share of custom
Slide 32: Cloud - Is What We Do
Cloud - Is What We Do Vista Cinema * = Work In Progress Already in the Cloud and/or SaaS Cinema Manager POS Cash Desk Serve Browser & Cloud * Cloud Ready * Browser & Cloud * Cloud & SaaS Film Manager Horizon Group Sales Vista Web Browser & Cloud Browser & Cloud & SaaS* Browser & Cloud Browser & Clou
Slide 33: Accelerating SaaS
Accelerating Saas Why our customers will benefit MARK PATTIE VP OF PRODUCT VISTA CINEMA
Slide 34: Vista Cinema Product Set
Vista Cinema Product Set rl Vista Digital design - build - manage Web Vista Mobile Kiosk Digital Signage Experience CXM (Customer Experience Manager) Loyalty Vouchers & Gift Cards Call Centre Enterprise Head Office Vista Horizon Film Manager Group Sales
Slide 35: Vista Release Cycle
Vista Release Cycle r Jan u mbe D ece ary 6 0. 5. r Fe be br em ua ov ry N er Marc 5.0.4 b Octo h 2019 er emb Apri 3 MAJOR VISTA RELEASES PER YEAR S ep t l TWO BROWN OUT PERIODS t us UPGRADE WINDOWS TO DEPLOY NEW SOFTWARE M ug ay A REDUCED FLEXIBILITY TO RESPOND TO CUSTOMER REQUESTS July Ju n e 5 5.
Slide 36: New Vista module for in theatre dining
New Vista module for in theatre dining Subscription license per device per month Integrated with Vista F&B Improves the guest service Increases the Cinemas SPP (Spend per Patron)
Slide 37: Managing Demand
eta . NEW THIS MORNING i. 2 J
Slide 38: Software Evolution
Software Evolution • 94 customers have been with Vista for 10+ years • Data is accumulating • Vista is storing more granular data points with every release • Storage and computing requirements for new versions of Vista are constantly increasing
Slide 39: Full-service SaaS data warehouse solution
• Full-service SaaS data warehouse solution, with a real-time data feed • All transactional cinema and loyalty data from across the cinema circuit • Data available for reporting within seconds of a transaction • Vista manages the timeliness, accuracy and performance of the warehouse
Slide 40: Our Journey to SaaS
Our Journey to SaaS 2014 2016 2017 2019 SaaS MovieTeam movieXchange Horizon 44 customers 58,000 shifts Over 5 million 8TB of data, per week and counting… tickets sold Veezi 1030 customers Customer Cinema Manager Film Manager Experience 45 countries 33.6 Mil tickets YTD) Desktop to browser Desktop to
Slide 41: Back Office 1996 – 2016 Cinema Manager 2016 -
Back Office 1996 – 2016 Cinema Manager 2016 -
Slide 42: Film Programming to Film Manager
Film Programming to Film Manager
Slide 43: Project Thunderbird
Project Thunderbird GRANT SMITH COO VISTA CINEMA
Slide 44: Thunderbird Goals
Accelerate the transition to a best-in-class SaaS offering for Cinema • Adopt a full SaaS platform architecture • Maximise cost-efficiency and manageability • Minimise operational overheads Thunderbird • Remaining client-server software to the browser Goals • Rationalise development spend across tec
Slide 45: A Cost-Efficient Platform
A Cost-Efficient Platform Infrastructure Costs • Docker images reduce overhead per instance High-density, multi-tenancy • Multi-tenancy yields ‘sharing‘ across tenants and unlocks ‘small circuit’ market • Rapid image deployment yields scale-out capability • Scale-out enables scale-in, reducing High
Slide 46: Initial Phases – Now > 2020
Initial Phases – Now > 2020 NOW Early-Mid 2020 Late 2020 • Design, • New Platform • 3+ Early Validate Architecture Adopters • Define FAST • Next Gen Cloud FAST • China PREPARE Transitions START Cinema LIVE Customers • Plan • ‘Connect’ as a • Existing Cloud • Recruit Service Customers
Slide 47: Project Risks
• Resourcing • Leveraging development partners in NZ and offshore • Phasing projects to distribute load on Vista Product Experts Project Risks • ‘Keeping the lights on’ • Business as usual for our existing loyal customers • Product Experts act in advisory roles to ensure continued focus on BAU
Slide 48: Commercial outcomes for Vista Cinema
Commercial outcomes for Vista Cinema MATT CAWTE GROUP CFO
Slide 49: SaaS Model
SaaS Model Commercial outcomes for Vista Cinema • Revenue • Access to larger addressable market from 2021, 1.5-2.5 X today by increasing share of IT spend, over time • Targeting recurring revenue of 80%+ in 2025 • Slower revenue growth in 2021-2022 before higher growth in future years • EBITDA • EBI
Slide 50: SaaS Model – Share of Wallet
SaaS Model – Share of Wallet Other Spend Other Spend Base E.g. Cloud Infrastructure, + Managed Services Enhanced = E.g. Security and Monitoring, Backup and failsafe services, Data compliance Vista Addressable Vista Addressable On Premise New Services Cloud
Slide 51: SaaS Model – Recurring Revenue
Saas Model – Recurring Revenue Other, 15% Other, 25% License - Existing Customer, 5% 1. Recurring Revenue will grow from 51% in 2019 License - New to 80% by 2025 Customer, 12% License - Existing 2. Perpetual Licenses represent about a quarter of Customer, 12% total revenue today, roughly equally spl
Slide 52: SaaS Model – Perpetual Licenses
Saas Model – Perpetual Licenses New Customer On Premise v SaaS Cross over at 3-4 years On Premise SaaS Other, 25% Accumulated On Premise Accumulated Saas License - New Customer, 12% Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 License - Existing Customer, 12% Existing Customer Adopting SaaS On Premise
Slide 53: SaaS Model Summary
• Increased Share of Wallet SaaS Model • Higher Quality of Revenue Summary • Lower Revenue Growth 2021-2022 then higher in future years • The high existing recurring revenue smooths the transition to SaaS revenue • Strong earnings Platform
Slide 54: Accelerating SaaS
Evolution for Customers • Latest software with access to the latest functionality • Be able to eliminate major hardware capex cycles and point-of- failure risks • Increase their physical and data security capabilities Accelerating • Reduce their compliance burdens Saas • Increasingly use data at the
Slide 55: Movio
MOVIO
Slide 56: Our Purpose
Our Purpose Connect all moviegoers to their ideal movie so everyone can experience the magic of cinema
Slide 57: Movio Market Footprint
Movio Market Footprint
Slide 58: Key KPIs
K e y K P I’s 2019 2018 Active Moviegoers Global 51 – 53 M 43.2 M Connected Moviegoers US 8.5 – 8.7 M 8.3 M Connected Moviegoers UK 0.8 – 1.0 M — Revenue per Connected Moviegoer US (NZD) $2.00 – $2.10 $2.08 Revenue per Connected Moviegoer UK (NZD) $2.05 – $2.15 —
Slide 59: 2019 Highlights
2019 Highlights THE GLOBAL GOAL 100 M $1 B Moviegoers Extra Box Office PROVE IT BRAND REFRESH DIVERSITY WHITE PAPER
Slide 60: Movio Cinema platform
An elegantly simpler, yet powerfully intelligent platform that automates and optimizes the connection of moviegoers to their ideal movie
Slide 61: Movio Cinema Overview
Movio Cinema Highlights Key Objectives Strategic Focus Overview • EMEA growth: • Retention Super Movies 36% growth in Cannibalize Movio Cinema • Increased revenue this year by thinking like a start-up moviegoer data and looking to win our • Odeon • Measurable ROI biggest client • Vue • C-Level Engag
Slide 62: Movio Cinema Performance
Movio Cinema $14.4 – $14.6 M $25 – $30 M Performance Revenue Range 2019 (NZD) SOM (NZD) 10 – 12% 3 Billion Expected Growth Rate Range Connections (2020 vs 2019) (30% growth in 2019)
Slide 63: Prove It
Prove It 0.89 1.96 $16.61 Extra Visits Extra Admissions Extra Box Office Per Moviegoer Per Moviegoer Per Moviegoer (USD) $12.1 M $227 M $97 M Extra Box Office Extra Box Office Extra Concessions Per Exhibitor* (USD) Globally (USD) Revenue Globally (USD)
Slide 64: Movio Research
Movio Research Decipher audience behaviour and forecast the future of film with data-driven insights
Slide 65: Movio Research Overview
Movio Research Highlights Key Objectives Strategic Focus Overview • Disney • Build a self-serve R+D channel to BI tool validate new areas • UK launch with of business which can Warner Bros • Expand into NZ, be later productised AU and UK
Slide 66: Movio Research Performance
Movio Research $5.2 – $5.7 M $20 – $25 M Performance Revenue Range 2019 (NZD) SOM (NZD) 45 – 65% Expected Growth Rate Range (2020 vs 2019) SOM based on management estimate.
Slide 67: Movio Media
MOVIO MEDIA
Slide 68: Challenges
Challenges Cinemas Studios Channels • Want to maintain • Lack of sophistication • Current workflows to full control of the around using activate are difficult exchange of data behavioural data to drive campaigns • Want to know who’s making profit • Believe they can do it themselves
Slide 69: Direct Performance
Direct $2.1 – $2.3 M Performance Revenue Range 2019 (NZD) 15 – 25% Expected Growth Rate Range (2020 vs 2019)
Slide 70: Direct Campaign Highlights
1 JAN • Escape Room A Dog’s Way Home • • Perfect Strangers The Upside • • Miss Bala Cold Pursuit • • Tyler Perry’s A Madea Family Funeral No Manches Frida 2 • • Five Feet Apart The Best of Enemies • Direct The Intruder • • Hellboy • Long Shot Campaign UglyDolls • • Poms John Wick: Chapter 3 • Highli
Slide 71: Digital Performance
Digital $2.7 – $2.9 M 55 – 60% Performance Revenue Range 2019 (NZD) Non-Epsilon Revenue Growth (2019 vs 2018) $110 M 30 – 80% SOM (NZD) Expected Growth Rate Range (2020 vs 2019) SOM based on management estimate: Movio Media’s current SOM is 12% of North American TAM
Slide 72: Digital Campaign Highlights
1 JAN • The Kid Who Would Be King The Upside • • Hotel Mumbai Alita: Battle Angel • • Gloria Bell Wonder Park • • Pet Sematary Us • • The Best of Enemies Breakthrough • • Little Digital The Public Campaign • • UglyDolls Brightburn • Campaign Tolkien • • Poms • The Last Black Man in San Francisco A D
Slide 73: Introducing the moviegoer data platform
Introducing the moviegoer data platform
Slide 74: Strategic Objective
Strategic Objective The MDP is the film industry moviegoing audience exchange, connecting film studios and cinema exhibitors with the ideal moviegoers, everywhere.
Slide 75: Movio Media Moviegoer Data Platform (MDP)
Email C h a n n e l s Movio Media Moviegoer Data Platform (MDP) • Incorporate channel Facebook into the studios media planning S e l l e r s YouTube and application Leading Exhibitors • Seamless integration • Studio advertising DV360 with moviegoer spent on targeting MDP Application data segments ac
Slide 76: App demo
App demo
Slide 77: Launch Approach
Launch Approach • Provide limited free access to all buyers • Direct integration into vital channels • Attract new sellers • License platform to buyers and clip the ticket on media • AU pilot: February • US soft launch: April
Slide 78: Movio
MOVIO
Slide 79: Vista Group
VISTA GROUP • Guidance update • Themes for 2020 KIMBAL RILEY GROUP CHIEF EXECUTIVE
Slide 80: FY19 Guidance Update
FY19 GUIDANCE UPDATE Vista Group is tracking in the range of the revenue guidance provided at the half year announcement
Slide 81: Themes for 2020 and Beyond
THEMES FOR 2020 AND BEYOND • Simplify our operations • Create greater scale in the businesses we have • Increase our Target Addressable Market in multiple ways • Specific cross-Group teams focused on the top 10 global cinema circuits • Recurring Revenue – constant drive to increase recurring revenue
Slide 82: Questions
ENHANCING THE MOVIEGOING QUESTIONS EXPERIENCE
Slide 83: Thank You
THANK YOU
Vista Group International — Investor Day (November 2019) on 6ix