Viaplay Group Ab Class A · OMXSTO:VPLAY_A
Viaplay Group Ab Class A — NENT Group — Investor Day (2019)
20 slides from Viaplay Group Ab Class A's investor day presentation, 2019
Slide 1: value creation the NENT way
value creation the NENT way Gabriel Catrina CFO & head of strategy and M&A #bethebeat #nentgroup
Slide 2: key points to take with you today
key points to take with you today growth business with big market opportunity clear and proven value creation model discipline in capital allocation strong track record with increased predictability focused on delivering shareholder value
Slide 3: we have established our model over a long time
we have established our model over a long time entered cross-platform transformation original SVOD player streaming model programming at scale proactively transformed cost first viaplay viaplay at scale launch of launch of viaplay structure & skill-set original launched with 20 original viasat incre
Slide 4: a strong track-record
a strong track-record net sales segmental EBIT (SEKm) (SEKm, operating income bef. central & IAC) 6% +9% CAGR CAGR CAGR 14,568 (reported ’16-’18) 1,706 13,688 1,617 12,897 +5.4% 1,427 +8.1% +0.4% 2016 2017 2018 2016 2017 2018 advertising subscription & other studios broadcasting & streaming studios
Slide 5: 2018 was no exception
2018 was no exception net sales (SEKm) +6.5% net sales growth (’18 vs. ’17) SEKm % 13,688 14,568 broadcasting & streaming 839 7.0% studios -75 -3.8% 2017 2018 total group reported 880 6.5% EBIT (SEKm, operating income bef. IAC) o/w organic 518 3.8% +3.3% o/w FX 359 2.7% 1,495 1,544 o/w M&A 3 0.0% 20
Slide 6: key drivers that made it possible
key drivers that made it possible performance in broadcasting and TV platforms scale in our streaming business unique and diversified business model disciplined approach to capital allocation
Slide 7: proven capital allocation model to drive value
proven capital allocation model to drive value strategically prioritised disciplined driven capital investment investment budgeting selections governance
Slide 8: streaming: a clear value creation opportunity
streaming: a clear value creation opportunity significant volume opportunity 4x 10x recurring cash-flows with greater earnings visibility less macro-sensitive high operating leverage all success factors in place viaplay SVOD total subscribers households households
Slide 9: steady volume growth and increasing stability
steady volume growth and increasing stability subscriber growth monthly churn (paying subscribers, year end balance) (average 12-months) +34% -20% -8% 2016 2018 movies and series package sports package (TM) (TMS) 2016 2018
Slide 10: increasing returns over time
increasing returns over time average customer lifetime lifetime contribution profit +45% +9% +25% +77% movies & series package sports packages movies & series package sports packages (TM) (TMS) (TM) (TMS) 2016 2018 2016 2018
Slide 11: positive effect by great volume growth
positive effect by great volume growth streaming subs growth outperforming decline in DTH +7% CAGR year-end subscribers, 000s 2016 2017 2018 ’16-’18 2,218 2,046 1,937 21% viaplay 937 1,108 1,258 321 21% 24% 22% viasat direct-to-consumer 534 510 493 -41 25% 28% o/w satellite 456 409 374 -82 54% 57% v
Slide 12: priority investments to drive streaming growth
priority investments to drive streaming growth product, content tech & distribution data
Slide 13: content to drive streaming, with originals in focus
content to drive streaming, with originals in focus viaplay original premieres 20+ 10 8 3 2016 2017 2018 2019+
Slide 14: continuous investments in product and tech
continuous investments in product and tech +300 +23% 13,000 3 SEKbn inhouse product, cumulative tech tech employees live events & 50,000 data and investments 2016-2018 live hours technology team 2015-2018
Slide 15: investments in user acquisition & distribution
investments in user acquisition & distribution customer acquisition branding, marketing & cross-promotion distribution partnerships
Slide 16: P&L outlook, 2019+
P&L outlook, 2019+ we are set up for continued profitable growth outlook organic growth positive segmental EBIT positive central operations approx. -250 SEKm EBIT incl. central operations positive beyond 2019 FX impact negative effective tax rate approx. 20%
Slide 17: business outlook, 2019+
business outlook, 2019+ streaming products as main growth drivers volume price outlook advertising negative positive neutral/positive subscription & other positive positive positive studios positive neutral positive
Slide 18: key metrics, balance sheet & cash flows, 2019+
key metrics, balance sheet & cash flows, 2019+ near-term outlook operational leases (IFRS 16) effect on balance sheet approx. 600 SEKm net effect (850 gross)* net debt at listing (excl. leases) approx. 3.9 SEKbn leverage policy <2.5x net debt / EBITDA (incl. leases) dividend policy 30–50% of adj. ne
Slide 19: to summarise
to summarise to drive and provide backed up by a clear value sustainable attractive solid capital creation strategy profitable dividends to allocation growth shareholders
Slide 20: Q&A
ft nordic ‘entertainment gfoue Q&A Follow us t £ Yo in} @nentgroup iv) @nent_group _nentgroup.com