Zinc Media Group Plc · LSE:ZIN
Zinc Media — Investor Presentation (April 2021)
27 slides from Zinc Media's investor presentation, April 2021
Slide 1: Zinc Media Group plc
ZINC media group plc
Slide 2: Highlights since the last market update
Highlights since the last market update • Pre-booked revenues for 2021 increased to £12.2m (up from £9.3m reported in January) Revenue • H2 2020 revenues increased by 33% to £9.7m, and adjusted losses reduced by 40% to £0.5m booked compared to H1 2020 Revenue • Revenue diversification continuing wel
Slide 3: Results for 18 months to December 2020
Results for 18 months to December 2020
Slide 4: Market: Covid negatively impacted whole TV production sector in 2020
Market: Covid negatively impacted whole TV production sector in 2020 Rescue deal for TV Freemantle profits slide 40% group Tinopolis Broadcast: 12th March 2021 The Times 13th April 2021 Sky profits tumble by £850m, EDITDA STV profits dropped 80% in final three months of 2020, but retained subscriber
Slide 5: Summary of results ending December 2020
Summary of results ending December 2020 £m 18 months to 12 months to • H2 2020 revenues increased by December 2020 June 2019 33% to £9.7m Income Statement Continuing operations • Gross margins up 4.6% to 30.1% Revenue 30.6 23.2 • £0.8m adjusted EBITDA loss driven Gross profit 9.2 5.9 by Covid Gross
Slide 6: We have done what we said we would
We have done what we said we would 1. Margin Improvement o TV gross margins increased by almost 5% to 29.6% in the period o Closure / restructure of two loss-making divisions, accounting for £0.5m of losses in period 2. Revenue Growth and Diversification o 3 new TV clients UKTV, Smithsonian, A&E and
Slide 7: Awards and customers
Awards and customers Awards: Scottish BAFTA’s, Royal Television Society, Venice TV Award and Bafta nomination
Slide 8: 152 hours of original production in 2020
152 hours of original production in 2020 8
Slide 9: Recent and forthcoming TV programmes
Recent and forthcoming TV programmes
Slide 10: Recent and forthcoming programmes
Recent and forthcoming programmes SACRED with Ben Fogle ISLANDS Matt Lucas: Fifty Years of The Mr Men
Slide 11: Sacred Islands
SACRED with Ben Fogle ISLANDS 1
Slide 12: 2021 Strategy
y Ad 4 2021 Strategy
Slide 13: The strategic priorities for 2021
The strategic priorities for 2021 Revenue TV gross Cash Performance Shareholder growth & margins management culture comms diversification growth & generation £12.2m revenue booked TV gross margins are £6.6m gross cash as at New Zinc Communicate Increasing dialogue with £2.9m since last update curren
Slide 14: Revenue diversification ahead
Revenue diversification ahead UKTV Viacom Subscription VoD Brands & Partners Sky Discovery
Slide 15: New 'genre-blending' label
New ‘genre-blending’ label ‒ Mike Christie: Creative Director ‒ Live event producer, multi- camera director ‒ Live action, event, sports, music and arts production ‒ Previous clients: Red Bull, Apple, Pepsi, London 2012 15
Slide 16: Supercollider
quad ~ SK supercollider.
Slide 17: Other new hires in 2021
Other new hires in 2021 Damon Westbury Managing Director, Zinc Communicate ‒ MSN, Fox Kids, Carlton, Clear Channel Olly Strous Group CTO ‒ ITN ‒ Dancing on Ice, I’m a Celebrity David Marshall Head of Entertainment, Tern TV ‒ STV, IWC, BBC ‒ X-Factor, Britain’s Got Talent, Big Brother
Slide 18: A clearer TV proposition in the market
A clearer TV proposition in the market Popular and Specialist Nations Factual Factual Popular Factual & Current Popular Factual Affairs Specialist Factual, Current Affairs, Current Affairs & Investigations, Access Investigations docs Specialist Factual Specialist Factual & Access docs Dormant (but w
Slide 19: Market and Outlook
y Ad 4 Market and Outlook
Slide 20: TV market: Recovery is coming
TV market: Recovery is coming Steadier ground up ahead, says ITV Broadcast, March 2021 Netflix net subscribers Freemantle bounce back up 14% in Q1 predicted for 2021 FT 21st April 2021 Broadcast: 12th March 2021 BBC iPlayer had its best quarter on Ad-funded record in the first three months of 2021 p
Slide 21: Healthy pipeline £39m for 2021, £21m for 2022
Healthy pipeline £39m for 2021, £21m for 2022 13th April 14th January 19 November Booked for 2021 £12.2m £9.3m £4.1m Advanced / highly likely £6m £5m £11m Engaged discussion £17m £15m £12m Early discussion £16m £23m £21m
Slide 22: Shareholders and investment case
Shareholders and investment case
Slide 23: Strong shareholder base
Strong shareholder base Retail / smaller investors; 14% Other institutions with over 1% each; 3% John Booth and The John Booth Herald Investment Trust plc; Charitable Foundation; 4% 40% Ruffer Investment Management; 5% Zinc employees; 7% Edale Europe Absolute Master Fund; 7% Premier Miton; 9% Canacc
Slide 24: Zinc's valuation compared to the market
Zinc’s valuation compared to the market Revenue multiple 5.0 Zinc current valuation of £9m 4.3 is 0.5x revenue 3.4 Comparator average 1.8x 1.8 Zinc valuation at 1.8x on: 0.9 0.7 ‒ Current revenue = £31m 0.6 0.5 0.3 ‒ Pre-Covid revenue = Audioboom One Media Digitalbox Bonhill Brave Bison Jaywing DCD
Slide 25: Reasons to invest
Reasons to invest 1. Zinc will be profitable and cash generative when revenues recover to pre-Covid levels ‒ Gross margins 6% up ‒ Loss making businesses closed ‒ New hires 2. Market recovery expected post Covid ‒ No production restrictions and increased commissioning budgets 3. Management team with
Slide 26: Q&A
y Ad 4 Q&A
Slide 27: Disclaimer
Disclaimer This document has been prepared by and is the sole responsibility of Zinc Media Group plc (the “Company”), comprises these presentation slides (the “Slides”) for the sole use at a presentation concerning the Company. The information in these Slides does not comprise an admission document,
Zinc Media Group — Investor Presentation (April 2021) on 6ix