Zoo Digital Group Plc · LSE:ZOO
Zoo Digital — Shareholder Meeting (September 2012)
20 slides from Zoo Digital's shareholder meeting presentation, Sep 25, 2012
Slide 1: AGM Presentation
ZOO Digital Group AGM Presentation Stuart Green, CEO 25 September 2012 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by ZOO Digital Group plc (the “Company”) solely for presentation purposes. It should not be reproduced, redistributed or passed to any other person. This document is being solely issued to and directed at (i) persons having professional experience in matter
Slide 3: About ZOO
About ZOO ZOO is one of the leading providers of workflow solutions for the creative media industries 25 September 2012 3
Slide 4: Strategy
Strategy • Identify workflow inefficiencies in the creative media industries • Design workflow management solutions based on automation and centralization without compromise to quality • License Cloud-based Software-as-a-Service directly to brand owners, supplemented with production services where a
Slide 5: The Market and Growth
The Market and Growth • Focused on the creative media industries • Working with partners to expand business, currently: – Multi Packaging Solutions – Apple Computer • Growing business by: – Licensing workflow management solutions to wider customer base – Working with multiple groups within each majo
Slide 6: Filmed Entertainment
Filmed Entertainment • DVD market had turbulent 2011 – Fewer new DVD titles introduced, particularly episodic TV – ZOO’s associated revenue streams were impacted • Digital delivery of products is growing – ZOO’s solutions are used to prepare Video on Demand and Electronic Sell Through versions • Blu
Slide 7: ZOO's eBook Proposition
ZOO’s eBook Proposition 1. Automation software for repurposing content for eBook publishing 2. Value-added services for enhanced eBook production Cookery Instruction Manuals Children’s Education Marketing Illustrated books 25 September 2012 7
Slide 8: ZOOsubs subtitling platform
• The European market for subtitling/dubbing is estimated to be around EUR 0.5B annually† • ZOO previously outsourced subtitling-related services • Created ZOOsubs: a new Cloud-based subtitle collaboration platform licensed as Software-as-a-Service • Generates files for all popular formats including
Slide 9: Workflow Management
Workflow Management • Our Cloud-based collaboration tools are being used increasingly by creative media organisations • Provides support for complex workflows involving preparation of creative media • We can tailor the system to address the unique requirements of each licensee • We are beginning to
Slide 10: Competitive Landscape
Competitive Landscape • We compete with many established providers of media production services • For video-related services, primarily Technicolor Creative Services and Deluxe Digital; for print- related services, primarily AGI Media and Schawk; for eBooks Trailer Park and offshore companies; for s
Slide 11: Financial Results
Financial Results Results to March 2012 • Reduction in total revenue to 16,000 14,000 Revenue $11.2m (2011: $13.8m), once the 12,000 outsourced subtitling revenue is 10,000 $'000 8,000 removed the core business shows 6,000 4,000 revenues of $10.4m (2011: $11.8m) 2,000 • Adjusted operating loss for t
Slide 12: Outlook
Outlook • New Cloud-based product introductions provide good opportunities for growth of recurring revenues • Continuing to license multiple systems to existing customers • Taking workflow management toolset to wider audience directly and via partnerships • Diversifying revenue streams and broadenin
Slide 13: Investment Summary
Investment Summary • Excellent customer relationships – significant growth potential • Clearly differentiated proposition – based on innovative software • Addressing customer needs in the current economic climate – improve efficiencies • High barriers to entry – sophisticated patent-protected softwa
Slide 14: Appendix
APPENDIX 25 September 2012 14
Slide 15: The Board
The Board Roger Jeynes, Chairman – Roger has over 20 years experience in the technology sector, encompassing senior sales, marketing and general management roles in the UK, Italy and the USA with IBM, Pyramid Technology Inc., and EMC Corporation. His most recent executive position was Chief Operatin
Slide 16: Major Shareholders
Major Shareholders Shareholder % of capital Herald Investment Trust 20.1% Foresight Group 20.1% Stuart Green (CEO) 14.9% JM Finn & Co 9.5% Multi Packaging Solutions 6.6% South Yorkshire Investment Fund 6.0% Williams de Broe 5.4% Others 17.4% 25 September 2012 16
Slide 17: Loan Note Holders
Loan Note Holders Loan Note Holder % of loan note Herald Investment Trust 31.9% Foresight 26.3% JM Finn & Co 15.7% South Yorkshire Investment Fund 12.7% Stuart Green (CEO) 9.7% Others 3.7% 25 September 2012 17
Slide 18: Consolidated Statement of Comprehensive Income
Consolidated Statement of Comprehensive Income 2012 2011 $000 $000 Revenue 11,186 13,757 Cost of sales (1,907) (2,388) Gross Profit 9,279 11,369 Other operating income 168 135 Operating expenses (10,471) (10,158) Operating (loss)/profit (1,024) 1,346 Exchange gain/ (loss) on borrowings 14 (300) Rene
Slide 19: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position $’000 2012 2011 ASSETS Non-Current Assets Property, plant and equipment 430 549 Intangible assets 9,487 8,480 Deferred income tax assets 486 486 10,403 9,515 Current Assets Inventories - 80 Trade and other receivables 2,365 3,016 Cash and cash equivalents
Slide 20: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows $’000 2012 2011 Cash flows from operating activities Operating (loss)/profit for the year (1,024) 1,346 Depreciation 393 424 Amortisation & Impairment 867 497 Share based payments 278 196 Purchase of own shares (68) (124) Disposal of own shares 115 - Disposal and
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