Videndum Plc · LSE:VID
Videndum — Investor Day (June 2022)
85 slides from Videndum's investor day presentation, Jun 7, 2022
Slide 1: Reframing the future.
Capital Markets Day 2022 Reframing the future. 7 June 2022 Stephen Bird, Group Chief Executive
Slide 2: Agenda
Agenda 1. Introduction – Stephen Bird, Group Chief Executive 2. Media Solutions – Marco Pezzana, Divisional CEO & Chris Carr, Divisional CMO 3. Production Solutions – Nicola dal Toso, Divisional CEO & Richard Satchell, VP Products 4. Creative Solutions – Marco Vidali, Divisional CEO & Greg Smokler,
Slide 3: Highlights
Highlights ▪ Videndum growing in three different ways 1. Core businesses growing 2. Growth in new areas of content creation 3. Growth in new verticals enabled by video transmission and live streaming ▪ 2025 strategic ambition ▪ £600m revenue ▪ >£100m operating profit ▪ 16%-18% operating profit margi
Slide 4: Who we are and what we do
Who we are and what we do At the heart of the content creation market 1. Professional photography/videography, including hobbyist/prosumer and audio 2. Influencer/vlogger, including gamer, and audio 3. Broadcast TV, live news and sport 4. Cine/scripted TV, including independent filmmakers 5. Live st
Slide 5: Leading positions with premium brands and innovative technology
Who we are and what we do Leading positions with premium brands and innovative technology in defensible niches ▪ Hardware and software to “enable the capture and sharing of exceptional content” ▪ 90% of products bought by professional content creators ▪ Mission-critical, high quality, technically-ad
Slide 6: Leading positions in defensible market niches
Who we are and what we do Leading positions in defensible market niches Manual cine/broadcast Supports On Set Wireless Prompters Protective Solutions 6x 13x 4x 5x 55% 37% 27% 85% Photographic Tripods Batteries LED Lights Key 5x 1.4x 4.4x Videndum market share 36% Competition market share 21% 9% 6 |
Slide 7: A sizeable and growing market
A sizeable and growing market ▪ Pre-pandemic our TAM was c.£2bn and growing at low single digit CAGR ▪ Our TAM has now expanded to c.£3bn primarily because: 1. The pandemic triggered an explosion in live streaming 2. Our acquisition activity has taken us into new markets ▪ Our TAM is now growing fas
Slide 8: Group strategic priorities
Group strategic priorities 1 2 3 Organic growth Margin improvement Growth through M&A Well placed to deliver sustainable growth and value for all our stakeholders 8 | Videndum plc
Slide 9: Organic growth: democratisation and digitalisation of media
1. Organic growth Democratisation and digitalisation of media Today Millions of customers, as anyone can shoot Past Hundreds of thousands of high-end video and take customers, as shooting and sharing video and stills was the preserve of the photographs and professionals, e.g. BBC, Hollywood share th
Slide 10: Four key structural market growth drivers
1. Organic growth Driven by four key structural market growth drivers c.75% of Videndum’s business is being driven by double digit growth in content creation* The internet TikTok, YouTube Subscription TV Live streaming Growth in retail e-commerce Growth in vloggers and influencers Increasing spend o
Slide 11: Structural growth drivers powered by technology change
1. Organic growth Structural market growth drivers powered by technology change driving shorter product replacement cycles Technology changes in the market allowing us to accelerate refresh cycles, e.g. HD to 4K, new camera form factors, new smartphones, automation in TV studios, live streaming 11 |
Slide 12: Technology innovations driving shorter replacement cycles
1. Organic growth Structural market growth drivers powered by technology change driving shorter product replacement cycles Our technology innovations with breakthrough new products, features and functionality e.g. A.R.T., flowtech carbon fibre tripod, LED lighting, audio technology, mechatronics and
Slide 13: Our business is growing in three different ways
1. Organic growth Our business is growing in three different ways 1. 2. 3. Growth in our core Growth in new Growth in new businesses areas of content verticals enabled by e.g. professional photography, creation video transmission Broadcast TV and on-set e.g. influencers, vloggers and live streaming
Slide 14: Margin improvement
2. Margin improvement ▪ Operating leverage ▪ Improved mix ▪ Pricing opportunity and capability to more than offset inflation ▪ Operational excellence We are seeing margin improvement as volumes grow 14 | Videndum plc
Slide 15: Pricing reflects product quality and brand strength
2. Margin improvement Pricing reflects product quality and brand strength 1. Market leading premium positions 2. Mission critical products with little price elasticity – our customers trust us 3. Product cost low proportion of customer budget 4. Product availability vs competitors 5. In-house pricin
Slide 16: Videndum plc
16 | Videndum plc
Slide 17: Growth through M&A
3. Growth through M&A Excellent track-record of executing and delivering value from M&A ▪ 20 acquisitions in 13 years ▪ Expected return including 2021 and 2022 acquisitions to be >20% by 2025 17 | Videndum plc
Slide 18: 2025 organic strategic ambition
2025 organic strategic ambition Revenue £600m >£100m operating profit Mid to high teen margin Net debt:EBITDA <1.5x 18 | Videndum plc
Slide 19: Media Solutions
Capital Markets Day 2022 Reframing the future. Marco Pezzana, Divisional CEO Chris Carr, Divisional CMO
Slide 20: Videndum plc
20 | Videndum plc
Slide 21: We have changed!
We have changed! Tripods Lighting Motion control Audio capture Vlogging Protective solutions Windjammer Dynamic microphone Seamless paper background On camera microphone From still photography to a full range of media solutions brands 21 | Videndum plc
Slide 22: Our market-leading brands have gone digital
Our market-leading brands have gone digital ▪ Restructured to focus on the digital channels providing strong margins and customer proximity ▪ Specialist knowledge across CRM, UX, SEO and software development brought in house to complement the strong Digital Marketing Team ▪ Content creation hubs now
Slide 23: We serve two main growing markets
We serve two main growing markets Audio offers an additional growth opportunity across both markets 23 | Videndum plc
Slide 24: 75% of the Division driven by four structural growth drivers
75% of the Division is driven by the four key structural market growth drivers ▪ Expanded customer base monetises visual and audio content across multiple digital touchpoints ▪ The Division is exposed to all four structural market drivers with the two largest driving growth in our core business and
Slide 25: The Internet
1. The Internet ▪ Growth in retail e-commerce is driving demand for high quality still photography and video to be published online at an unprecedented pace ▪ Manfrotto, as the market leader, will continue to add mechatronic products to support fast creation of creative content ▪ We will use the hig
Slide 26: The Internet
1. The Internet ▪ This content growth can be seen across, but not limited to fashion, food, real estate and hospitality ▪ We develop intuitive products to allow for a simple and creative workflow both in studio and on a growing number of enterprise facilities ▪ We were already the market leader with
Slide 27: TikTok / YouTube
2. TikTok / YouTube JOBY – designed for Influencers and Vloggers ▪ 40m+ creators are monetising their content in front of the camera/smartphone – this will grow to 50m+ by 2025 ▪ Having built our e-commerce channel to half of our business, we will interact with this creator digitally using our 80m+
Slide 28: Audio Market Opportunity
AUDIO Market Opportunity ▪ Most content creation streams need great AUDIO. The quality of the audio workflow starts with impeccable sound capture ▪ With a TAM of £800m, the microphone market is larger than the imaging market ▪ The market is highly fragmented with the three leading brands owning unde
Slide 29: Audio Strategy
Audio Strategy ▪ Our No. 1 priority is on camera microphones ▪ This is the perfect adjacency: we already serve the customers and share the same channels, which we know well ▪ We have successfully launched JOBY on camera microphones by leveraging our digital marketing machine ▪ The Audix acquisition
Slide 30: The Audio Market is thriving!
The Audio Market is thriving! ▪ NAMM is the global audio trade event in LA attended by over 100,000 people from the global audio industry ▪ We have launched our three brands strategy: amazing response from the trade and press, including finalisation of major listings across all of our target retaile
Slide 31: Technology changes powering replacement cycles
Technology changes powering replacement cycles Increasing The Metaverse will Reducing form factor Convergence smartphone accelerate content of Photo & Video capabilities production 31 | Videndum plc
Slide 32: Our technology is accelerating product replacement cycles
Our technology is accelerating product replacement cycles Apps Modular Capsule Gimbal Technology Active Noise Reduction Technology Protected Leg Leg Design X-Lock Design X Lock System Low-level System Loading System Motion Control Motion and Control Products Software and Software 32 | Videndum plc
Slide 33: Market and technology driving growth
Market and technology driving growth Trends Market Technology Growth in our core professional businesses Benefit Growth in new areas of Content Creation 33 | Videndum plc
Slide 34: Operational Excellence
Operational Excellence ▪ Manufacture 70% of total goods sold USA China ▪ Re-shored the JOBY GorillaPod ▪ Highly automated and lean: cost competitive to China ▪ Design and engineer all products in-house ▪ New competencies through acquisitions: mechatronic, PCB printing and plastic injection molding N
Slide 35: Our business in 2025
Our Our BUSINESS business in in 2025 2025 1. Core business growing, driven by the internet 2. New growth areas in content creation, social and audio primarily 3. TAM growing to c.£1.7bn with audio 4. 2021-25: c.10% revenue CAGR with c.20% OP in 2025 35 | Videndum plc
Slide 36: Videndum plc
36 | Videndum plc
Slide 37: Driving Growth and Innovation in our Core Business
Capital Markets Day 2022 Driving Growth and Innovation in our Core Business Nicola Dal Toso, Divisional CEO Richard Satchell, VP Products 37 | Videndum plc
Slide 38: Market leading brands for Broadcasting and Cine / Scripted TV
Market leading brands for Broadcasting and Cine / Scripted TV Robotic Manual Heads, Mobile Prompting Lighting New Heads and Tripods, Power Solutions Solutions Brands Pedestals Pedestals Solutions 38 | Videndum plc
Slide 39: Our products are used on film sets all around the world
Our products are used on film sets all around the world 39 | Videndum plc
Slide 40: Our products are used in studios and live coverage
Our products are used in studios and live coverage all around the world 40 | Videndum plc
Slide 41: Videndum plc
41 | Videndum plc
Slide 42: Market Growth Drivers
Market Growth Drivers Subscription TV is the key growth driver for our Record investment in … Accelerating the need for high-quality content … Broadcasters to automate core business • Record levels of spend on • Subscription TV is competing for original and high-quality content audience and advertis
Slide 43: Technology Innovation
Technology Innovation Product innovation will allow us to achieve accelerated Record investment in … Accelerating the need for high-quality content … Broadcasters to automate growth Breakthrough new products, New and innovative workflows and technologies technologies set to expand our • Accelerating
Slide 44: Driving accelerated product refresh through flowtech + aktiv
Driving accelerated product refresh through flowtech + aktiv 44 | Videndum plc
Slide 45: Well positioned to capitalise on the shift to Virtual Production
Well positioned to capitalise on the shift to Virtual Production Breakthrough lighting technology to grow market share 45 | Videndum plc
Slide 46: Growing demand for automation within Robotics
Growing demand for the same level of automation within Robotics Expanding our addressable market through unique new technology and features 46 | Videndum plc
Slide 47: Videndum plc
47 | Videndum plc
Slide 48: Ongoing Best-in-Class Operational Excellence
Ongoing Best-in-Class Operational Excellence Sales/service/engineering Manufacturing site Manufacturing 75% of High-tech All products Advanced Lean and flexible what sold – low competencies – designed in house automation – low organisation – dependency on suppliers ready for present – protected cost
Slide 49: Our business in 2025
Our business in 2025 1. Core business growing well 2. Continuously evolving with advanced technologies and software, amplifying opportunities in core business 3. TAM of £0.4bn grows c.4% CAGR 2021-25 4. 2021-25: c.5% revenue CAGR with c.20% OP in 2025 49 | Videndum plc
Slide 50: Creative Solutions
Capital Markets Day 2022 Reframing the future. Marco Vidali, Divisional Chief Executive Greg Smokler, GM Cine
Slide 51: Videndum plc Page 51
CREATIVE | SILUTIO 51 | Videndum pie a Keel
Slide 52: Who are we?
Who are we? Experts in ultra-low The standard latency, video in wireless transmission monitoring 52 | Videndum Videndumplc plc
Slide 53: What we do in the Cine / Scripted TV market
What we do in the Cine / Scripted TV market Monitors Wireless Accessories 53 | Videndum Videndumplc plc
Slide 54: What we do in the Live streaming market
What we do in the Live streaming market Live streaming Broadcast IP Video 54 | Videndum Videndumplc plc
Slide 55: What we do in the medical market
What we do in the medical market Monitors Wireless Live streaming 55 | Videndum Videndumplc plc
Slide 56: Innovation Drives Growth
Our markets evolve as overall technology advances in the world Innovation Our technology Drives Growth shortens replacement cycles 56 | Videndum Videndumplc plc
Slide 57: Market drivers: Cine / Scripted TV market
Market drivers: Cine / Scripted TV market Streaming wars accelerating product refresh cycle ▪ Scripted Television continues to drive growth: production spend growing in 2021-25 at 25-30% CAGR* ▪ 4K HDR upgrade cycle driven by streaming providers requiring productions to deploy 4K technology ▪ Remote
Slide 58: Market drivers: Live streaming market
Market drivers: Live streaming market Live video is everywhere ▪ Remote work, collaboration and technology driving video streaming ▪ Medical markets adopting wireless monitoring in operating rooms (“OR”) ▪ Video streaming growing 2021-25 at a 15% CAGR* 58 | Videndum Videndumplc plc * Source: Researc
Slide 59: Cine / Scripted TV – 4K Technology
Cine / Scripted TV – 4K Technology Teradek Bolt – Unique and necessary ▪ 4K, zero-delay, uncompressed wireless video transmission ▪ Proprietary and exclusive to Videndum ▪ Our market share and brand reputation makes us the industry standard SmallHD 4K large-format monitors ▪ Already market leader in
Slide 60: Leveraging Amimon Technology
Our markets evolve as overall technology advances in the world Leveraging Point-to-Point evolves Amimon to the network Technology 60 | Videndum Videndumplc plc
Slide 61: Amimon wireless point-to-point technology
Amimon wireless point-to-point technology (“P2P”) Existing P2P technology leads the Cine / Scripted TV Market ▪ We turned the production set wireless We have analysed new opportunities for P2P ▪ Medical ▪ Industrial ▪ Enterprise We are already successful in some of the verticals, in particular, medi
Slide 62: New Markets, Cine Playbook
6 2 New Markets, Cine Playbook IMAGE | Videndum plc
Slide 63: Amimon technology – extended to the public internet
Amimon technology – extended to the public internet A.R.T. Adaptive Reliable Transport ▪ Quality, reliability and speed, for mission-critical applications ▪ Better video quality, more reliable and faster than competing protocols ▪ Cloud-capable for remote workflows \and global distribution The best
Slide 64: A.R.T. Demonstration
A.R.T. Demonstration 64 | Videndum Videndumplc plc
Slide 65: A.R.T. opportunities
A.R.T. opportunities We have identified a potential incremental TAM of c. £0.4bn in the markets we are operating already + c. £0.6bn in other adjacent markets 1. Cine / Scripted: Ultra low delay video transport over the internet for remote production and collaboration ▪ Teradek TV – cloud monitoring
Slide 66: Cine – Video Collaboration in the Cloud
Cine – Video Collaboration in the Cloud Teradek TV – built with Lightstream ▪ “Video Village Anywhere” ▪ Live feeds for review ▪ Lightstream tools integrated ▪ Our devices powers all cloud collaboration in Cine 66 | Videndum plc
Slide 67: Teradek TV DEMO
Teradek TV DEMO 67 | Videndum Videndumplc plc
Slide 68: Our business in 2025
Our business in 2025 1. Core business growing strongly 2. Added new vertical markets thanks to innovation 3. TAM grown from c.£1bn (2021) to c.£1.8bn (2025) ▪ Does not include A.R.T. opportunity 4. SaaS revenue increasing from £3m to c.£16m 5. 2021-2025: c.20% revenue CAGR with c.20% OP in 2025 68 |
Slide 69: Capital allocation and financial goals
Capital Markets Day 2022 Capital allocation and financial goals Stephen Bird, Group Chief Executive
Slide 70: Organic growth – Group revenue ambition (£m)
Organic growth – Group revenue ambition (£m) 600 ▪ Market growth ▪ Cine ▪ Automation ▪ Market growth ▪ Leveraging R&D investment and unique technology 394 ▪ Market growth Reported ▪ Digital strategy ▪ Audio ▪ Leveraging existing M&A 2021 VMS VCS VPS 2025 £600m in 2025 70 | Videndum plc Subject to no
Slide 71: Organic growth – Group revenue ambition (£m)
Organic growth – Group revenue ambition (£m) 600 394 Reported 2021 Core - organic Core - market New content New content Savage New live Declining 2025 growth and share growth - JOBY - Audio streaming products pricing verticals £600m, CAGR 10%+, with no new M&A 71 | Videndum plc Subject to no signifi
Slide 72: Organic growth – Group profit ambition
Organic growth – Group profit ambition 30% drop through Operating profit margin 16%-18% in 2025 +£200m + Operating leverage + Operational efficiencies + Control of variable costs ROCE + Pricing in excess of inflation >25% in 2025 +£60m + Improved mix / growing e-commerce - Higher R&D amortisation Ne
Slide 73: M&A adding shareholder value
M&A 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 VMS VPS VCS Disposals Above excludes distribution companies in Australia, China, Germany, Netherlands. Acquisitions (made 2012 to 2020) ▪ Acquired niche leaders in growth segments £140m invested ▪ Divested non-core c.20% return in 2022 (post
Slide 74: Capital allocation and priorities
Capital allocation and priorities ▪ Focus on higher growth, higher return markets Organic growth ▪ Gross R&D to remain 5-7% of revenue ▪ Working capital investment reflective of growth rates ▪ Sustainable and progressive dividend policy Progressive dividend ▪ Target dividend cover: 2.0-2.5x underlyi
Slide 75: Creative Solutions
Creative Solutions ▪ The Board believes that Creative Solutions has significant potential, in terms of market opportunity, rate of future growth and margins under Videndum ownership ▪ Continuing to explore options to unlock more shareholder value ▪ Licensing ▪ Selling the technology ▪ A joint ventur
Slide 76: Summary
Summary ▪ Videndum growing in three different ways 1. Core businesses growing 2. Growth in new areas of content creation 3. Growth in new verticals enabled by video transmission and live streaming ▪ 2025 strategic ambition ▪ £600m revenue ▪ >£100m operating profit ▪ 16%-18% operating profit margin W
Slide 77: Summary
Summary ▪ Leading, premium brands with strengthened competitive position ▪ Uniquely placed at the heart of the content creation market ▪ Technology change driving shorter replacement cycles ▪ World class people, operational excellence and ESG credentials ▪ Strong M&A track record We have built a pla
Slide 78: Questions
Capital Markets Day 2022 Questions
Slide 79: Appendices
Capital Markets Day 2022 Appendices
Slide 80: Product portfolio
Product portfolio Audio capture IP Video Monitors Robotic camera systems Audix Teradek SmallHD Camera Corps JOBY Vinten Rycote Lens control systems Motion control Teradek & stabilisers Smartphonography Backgrounds JOBY JOBY Colorama Lighting & lighting controls Manfrotto Savage JOBY Supports Superio
Slide 81: Presenter Biographies
Presenter Biographies Stephen Bird Martin Green Marco Pezzana Chris Carr Group Chief Executive Group Finance Director Divisional CEO Divisional CMO Videndum Media Solutions Videndum Media Solutions Stephen joined Videndum in 2009 from Weir Martin was appointed to the Board on 4 Group plc, where he w
Slide 82: Presenter Biographies
Presenter Biographies Nicola Dal Toso Richard Satchell Marco Vidali Greg Smokler Divisional CEO Vice President, Products Divisional CEO General Manager, Cine Market Videndum Production Solutions Videndum Production Solutions Videndum Creative Solutions Videndum Creative Solutions Nicola has been wit
Slide 83: Event Site Map & Product Demonstrations
Capital Markets Day Tuesday 7th June 2022 Event Site Map & Product Demonstrations | — Videndum Production Solutions Lae —_ 1. Autoscript Voice Fully automate your prompting operations 2. Sachtler flowtech® and aktiv™ The world's fastest tripod system rm ion | Videndum Media Solutions _ —_! 5. Manfro
Slide 84: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements with respect to the financial condition, performance, position, strategy, results and plans of Videndum plc (the “Group”, or the “Company”) based on Management’s current expectations or beliefs as well as assumptions ab
Slide 85: Thank you
Capital Markets Day 2022 Thank you