Videndum PLC · LSE:VID
Videndum — The Vitec Group — Shareholder Meeting (May 2014)
16 slides from Videndum's shareholder meeting presentation, May 8, 2014
Slide 1: The Vitec Group plc Annual General Meeting
The Vitec Group plc Annual General Meeting 8 May 2014
Slide 2: Agenda
The Vitec Group plc Page 2 Agenda • 2013 Performance highlights • Strategy and 2014 progress • Market developments • Restructuring • New product development • Acquisitions • Shareholder return • The future
Slide 3: 2013 Performance highlights
The Vitec Group plc Page 3 2013 Performance highlights > Good performance in challenging markets > Operating margin* increased to 12.5% (2012: 11.4%) > Good profit performance by all 3 Divisions > Strengthened business through restructuring > Strong free cash flow > Broadcast and Video markets – fla
Slide 4: Challenging markets in 2013
The Vitec Group plc Page 4 Challenging markets in 2013 Broadcast > HD transition continuing but slowing > No major sporting events in 2013 > Proliferation of video capture accelerating Imaging > Sales of ILCs declined by 15% > Installed base of ILCs continuing to grow globally MAG > US Government sp
Slide 5: Strategy
The Vitec Group plc Page 5 Strategy > Well understood by employees, investors and analysts • Invest in fast growing areas: B&I & LED lighting Broadcast & Video • Maintain product development • Teradek acquired • Continue to invest in Pro-market and grow Manfrotto Photographic through product extensi
Slide 6: 2014 progress
The Vitec Group plc Page 6 2014 progress Key points from IMS released this morning: > Solid progress in first 4 months of 2014, including benefits from 2013 restructuring and good contribution from Teradek > Underlying markets remain challenging > Board’s expectations for the full year remain unchan
Slide 7: Developments in the Imaging market
The Vitec Group plc Page 7 Developments in the Imaging market Shipments of interchangeable lens cameras (moving 12 month totals) and growth in installed base * (millions of units) * Management estimate, assuming 5 year replacement cycle Source: CIPA
Slide 8: Developments in the Imaging market - Japan
The Vitec Group plc Page 8 Developments in the Imaging market - Japan Shipments of interchangeable lens cameras (moving 12 month totals) (millions of units) Source: CIPA
Slide 9: Further improvements in margin including benefits from restructuring
The Vitec Group plc Page 9 Further improvements in margin including benefits from restructuring Operating Profit* (£m) Operating Margin* (%) > Complex restructuring projects 45 14% delivered on schedule and are 40 12% substantially completed: 10% 35 > Transferring manufacturing from the 8% UK to Cos
Slide 10: New product development 2013 – 2014
The Vitec Group plc Page 10 New product development 2013 – 2014 2013 > 14 awards including Academy Award for Scientific Achievement and EISA award for “European Photo-Video Accessory” > 8 awards won at NAB > 32 new products launched at NAB > 3 Red Dot awards 2014 > 11 awards > 4 awards won at NAB >
Slide 11: NAB 2014 Highlights
The Vitec Group plc Page 11 NAB 2014 Highlights > 28 new products launched in 2014 > 4 Awards won > Vinten Radamec APS Broadcast Beat Award > Teradek booth ACE Award for Best Large Island Booth > Autoscript iPad Broadcast Beat Award > Videomaker NAB 2014 Best Accessories Award for Sachtler Accessori
Slide 12: Acquisitions have delivered a 14% return after funding costs
The Vitec Group plc Page 12 Acquisitions have delivered a 14% return after funding costs Acquisition March 2011 December 2011 April 2012 August 2013 Disposal Lastolite Haigh-Farr Camera Corps Teradek 2010 2011 2012 2013 April 2010 August 2012 Clear-Com Staging > Over the last four years Vitec has in
Slide 13: Teradek acquisition performing well
The Vitec Group plc Page 13 Teradek acquisition performing well > World leading provider of wireless video devices used by broadcasters, businesses and web channels to wirelessly transmit images > Strengthens Vitec’s product offering, particularly Bond Cube to the growing number of independent video
Slide 14: Total shareholder return – 2009 to 2013
The Vitec Group plc Page 14 Total shareholder return – 2009 to 2013 450 £ 400 350 300 250 200 150 100 50 0 31 Dec 2008 31 Dec 2009 31 Dec 2010 31 Dec 2011 31 Dec 2012 31 Dec 2013 Vitec Group FTSE 250
Slide 15: The Future
The Vitec Group plc Page 15 The Future • Focused on 3 markets that have underlying growth drivers • Taking share in all markets • Strong geographical reach • Streamlined business is strongly positioned to benefit from any market upturn • End markets remain challenging but well- positioned for growth
Slide 16: The Vitec Group plc Annual General Meeting
The Vitec Group plc Annual General Meeting 8 May 2014