Videndum PLC · LSE:VID
Videndum — The Vitec Group — FY2008 Earnings Presentation
29 slides from Videndum's earnings presentation, Mar 2, 2009
Slide 1: 1
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Slide 2: 2008 Full Year Results
2008 Full Year Results Alastair Hewgill, Interim Chief Executive Richard Cotton, Finance Director 2 March 2009
Slide 3: Agenda
Agenda Highlights – Alastair Hewgill Financial Review – Richard Cotton Divisional Review & Outlook – Alastair Hewgill 3
Slide 4: 2008 highlights
2008 highlights A year of good progress Reported revenue growth of 23% Constant currency organic revenue up by 5% Broadcast Systems revenue up 33% Constant currency organic revenue up by 7% Reported operating profit up by 18% 3 acquisitions, including Litepanels, performing well Cash g
Slide 5: Financial review
vitecgroup Financial review
Slide 6: Income statement
Income statement Another year of profit growth 2008 2007 Δ £m £m % Revenue 337.7 273.8 23.3% Gross margin % 40.6% 40.7% -0.1 pts Operating expenses* (98.7) (78.7) 25.4% Operating profit* 38.4 32.6 17.8% Operating margin % 11.4% 11.9% -0.5 pts PBT* 35.4 30.3 16.8% Headline tax charge %
Slide 7: Divisional revenue trend
Divisional revenue trend* Continued organic & acquisition-led growth 180 160 140 120 Revenue* (£m) 100 80 60 40 20 2002 2003 2004 2005 2006 2007 2008 Broadcast Systems Imaging & Staging Broadcast Services * Reported sterling, continuing operations 7
Slide 8: Revenue growth of 12% (constant currency)
Revenue growth of 12% (constant currency) Constant currency organic growth of 5% Actual Restated Actual Δ 2007 FX 2007* 2008 Organic Acquisition £m £m £m £m % £m % £m % Divisional revenue Broadcast Systems 129.8 12.4 142.2 172.6 21.4% 9.2 6.5% 21.2 14.9% Imaging & Staging 117.3 14.1 131.4 135.8
Slide 9: Operating profit up 18%
Operating profit up 18% Increase of 10% in constant currency 45 Price/Cost Op. Exps Vol/Mix FX Transl FX Transact 40 FY08 Profit* Acquisitions (£m) 35 Restr FY07 Profit* 30 25 £32.6m £7.6m £0.9m (£6.6m) (£1.6m) £3.4m £3.8m (£1.7m) £38.4m * Operating profit before significant items Variances are base
Slide 10: Operating cash flow
Operating cash flow Continued strong performance 2008 2007 Δ £m £m £m Operating profit* 38.4 32.6 5.8 Depreciation** 12.8 10.6 2.2 Working capital (8.5) (9.5) 1.0 Provisions made / (utilised) 0.8 (0.2) 1.0 Other 0.8 0.3 0.5 Cash generated from operations 44.3 33.8 10.5 *Pre-goodwill char
Slide 11: Free cash flow
Free cash flow Operating cash flow drops through 2008 2007 Δ £m £m £m Cash generated from operations 44.3 33.8 10.5 Capital expenditure (17.6) (18.4) 0.8 Proceeds of asset sales 2.6 1.8 0.8 Net interest paid (3.6) (3.0) (0.6) Tax paid (6.7) (9.5) 2.8 Free cash flow 19.0 4.7 14.3 Net de
Slide 12: Renewed loan facility and net debt
Renewed loan facility and net debt Loan facility increased by 25% to £125m Committed until 2013 5 banks Current interest at 0.95% over LIBOR* Utilisation as at 31 December 2008 £64.9m Year end net debt of £53.0m after – net cash in the businesses of £14.9m – Anton/Bauer property mortgage
Slide 13: Net Debt
Net Debt £0.7m higher before £13.9m adverse exchange Sign convention: positive indicates increase in net debt Continued strong free cash flow funds dividends and acquisitions Due to continued sterling weakness, in 2009 the sterling denominated loans have been increased to c.50% of the total 13
Slide 14: Sundry financial points
Sundry financial points Foreign exchange effects on profit FY 2008 £2.1m better than FY 2007 – H2 08 £3.5m favourable vs. H2 07 2009 estimate > £10m favourable impact (at current rates)* Tax 34% headline charge (2007: 37%) 2009 guidance: 34% – c.5% less for cash taxes UK pensions IAS
Slide 15: Divisional review
vitecgroup Divisional review
Slide 16: A platform for further growth
“A platform for further growth” The Vitec Group plc Interim CEO: Alastair Hewgill FD: Richard Cotton Broadcast Systems Imaging and Staging Broadcast Services CEO: Joop Janssen CEO: Francesco Bernardi CEO: Andy Crist 2008 2008 2008 Sales £172.6m Sales £135.8m Sales £29.3m Profit £21.7m Profit £15.6m
Slide 17: Broadcast Systems
Broadcast Systems Continued sales and profit growth 2008 2007 Δ £m £m % Revenue 172.6 129.8 33.0% Operating profit* 21.7 13.3 63.2% Operating margin %* 12.6% 10.2% 2.4 pts * Pre-goodwill charges Excellent year at Camera Dynamics Partly boosted by Beijing Olympics RF Systems (2008 sales £
Slide 18: Imaging & Staging
Imaging & Staging 16% sales growth 2008 2007 Δ £m £m % Revenue 135.8 117.3 15.8% Operating profit* 15.6 17.7 (11.9%) Operating margin %* 11.5% 15.1% (3.6 pts) * Pre-goodwill charges and property profits Imaging – continued growth Keen amateur sales remain robust Professional sales weaker
Slide 19: Broadcast Services
Broadcast Services Olympics benefit offset by weaker US market 2008 2007 Δ £m £m % Revenue 29.3 26.7 9.7% Operating profit 1.1 1.6 (31.3%) Operating margin % 3.8% 6.0% (2.2 pts) In US$, revenue was up 1% Successful Beijing Olympics ‘Hercules’ fly pack used for NBC’s ‘Water Cube’ coverage
Slide 20: Outlook
vitecgroup
Slide 21: Leveraging growth
Leveraging growth “Products and services for the broadcast, entertainment & photographic industries” Leading player in multiple niche markets Well known brands with worldwide distribution Good track record on acquisitions Strong balance sheet, cash-generative Reputation for constant innova
Slide 22: Product awards won in 2008
Product awards won in 2008 • Sachtler’s SOOM tripod • Autoscript’s LED • Manfrotto’s 585 backlighting in MODOSTEADY prompters camcorder stabilisation system • Vinten’s Vector 750 pan & tilt head • Kata’s 3N1-20 • Litepanels’ Micro Portable Sling Bag LED camera light • Anton/Bauer’s Stasis FLEX • Sac
Slide 23: Outlook
Outlook “In 2009, orders and revenues have been in line with our expectations. However we have seen weakness in some of our Broadcast Systems businesses and experienced lower sales volumes, which have impacted our profitability. As a result we have taken further actions to reduce our cost base, the
Slide 24: Appendices
vitecgroup Appendices
Slide 25: Key financial measures: 5-year trend
Key financial measures: 5-year trend Revenue Operating profit* 190 21 19 170 17 150 15 £m £m 130 13 11 110 9 90 7 70 5 H104 H204 H105 H205 H106 H206 H107 H207 H108 H208 H104 H204 H105 H205 H106 H206 H107 H207 H108 H208 31 Basic EPS* 60 Closing net debt 28 50 25 40 22 Pence 19 £m 30 16 20 13 10 10 7
Slide 26: FX update
FX update Year on year effect Translation Transaction Total on profit £/$ €/$ £/€ £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) A
Slide 27: Forecast growth in digital SLR shipments
Forecast growth in digital SLR shipments 14,000 14,000 12,000 12,000 10,000 10,000 Units '000 (lines) Units '000 (bars) 8,000 6,888 8,000 6,528 5,994 12,029 11,242 6,000 6,000 10,349 5,624 9,687 5,255 4,677 7,468 4,000 4,000 5,264 3,791 2,000 2,000 2,476 0 0 2004 2005 2006 2007 2008 2009 2010 2011 A
Slide 28: 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 29: 2008 Full Year Results
2008 Full Year Results Alastair Hewgill, Interim Chief Executive Richard Cotton, Finance Director 2 March 2009