vista: doing good things with good people – building a global software company from new zealand
TRANSCRIPT
NZ Software Association February 2015
BUILDING A MULTINATIONAL SOFTWARE COMPANY FROM NEW ZEALAND
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> What we do > Some stories about how we got to
where we are > IPO & Where we are going
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Vista Cinema – the software > Vista Cinema is the leading cinema
software in the world, with software installed in over 3,500 sites in more than 65 countries
> Vista Cinema provides a suite of modules that operate across the cinema and cinema circuit head office, and are also used by the movie-goer
> Vista Cinema software is targeted at operators who have 20 or more screens
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Vista Cinema site growth
> Strong historic growth in contracted sites
> 100% growth 2009 - 2013
> 2014 saw completion of Regal Entertainment – largest cinema circuit in world.
> About 1100 sites installed in 2014
> Provides the foundation for the rest of the group
0
50
100
150
200
250
300
350
-
500
1,000
1,500
2,000
2,500
3,000
3,500
2000 2002 2004 2006 2008 2010 2012
Cus
tom
ers
Num
ber o
f site
s
Sites New sites Customers (RHS)
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Vista Group Revenue and EBITDA from Prospectus Vista Group revenue FY11 – FY15 Vista Group EBITDA FY11 – FY15
25.0
33.7
38.7
49.9
61.5
-
$10
$20
$30
$40
$50
$60
$70
FY11 FY12 FY13 FY14 FY15
Rev
enue
($m
)
4.5
8.8 9.0 9.3
13.2
-
$2
$4
$6
$8
$10
$12
$14
FY11 FY12 FY13 FY14 FY15
EB
ITD
A ($
m)
FY11 – FY15 CAGR:31%
Vista Group FTEs FY11 – FY15
FY11 – FY15 CAGR:25%
138
174
219
311
358
-
50
100
150
200
250
300
350
400
FY11 FY12 FY13 FY14 FY15
FTE
s
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Vista Cinema - global market share Customers with 20+ screens
Source: Dodona 2013
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Vista Group - the history
2012 Veezi created to support smaller independent cinema operators
1996 JV Village Force Cinemas and Madison Systems established to produce point of sale software for Village Force Cinemas in New Zealand
1997 First offshore sales to Argentina and Fiji
2003 Infinity sells 50% shareholding to Vista management
2006 Vista software granted certification by Chinese Government and Vista UK subsidiary established
2008 >90% of box Office in Canada goes through Vista
2009 Vista opens Los Angeles office
2010 Vista management acquire remaining 50%
Vista acquired 40% of Movio
2013 Vista reaches agreement to buy remaining stake in Movio
2011 First Movio International customer
2003 2005 2013 2011 2009 2007 1996
2001 First customer in India
First South American business partner (Senda in Mexico)
2014 Acquisition of stake and option in MACCS Over 250 Regal sites installed Numero launches in Australia and New Zealand
2002 First customer in USA
2004 First major circuit in UK – VUE cinemas First major North American circuit – Cineplex, Canada
2000 Madison
acquired by Infinity
SOME STORIES FROM A FEW COUNTRIES
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INDIA
> Worlds largest Cinema market – as measured by admissions. > Huge producer of Software > Vista has >50% of modern multiplex market > Great Coals to Newcastle story
> What we learned > Trust people > Do Good Things with Good People
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CHINA > First customer in 2006 – via a Hong Kong customer > Opened our own office with a WFOE company in 2009 > Vista is one of 6 products certified for use in Chinese cinemas
– and only non-Chinese product > Lost money every year until 2014 > Late 2013 we hired a dedicated sales guy > In 2014 China opened 1,015 cinemas @ 5.5 screen average
(cf USA 5400 cinemas @7.2 screens total market) > In 2014 we won the Dadi cinema circuit - 230 sites
> What we learned > Sales is more important than software > UI is more important than function
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USA > Got our first USA customer in 2002 > Appointed a reseller about that time > By 2009, we had less than 1% of the market > In 2009 we opened our own office in LA > We now have over 40% of the large cinema circuit market
> What we learned > Americans like dealing with the principals – not agents > And they want suppliers to be in the USA
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UK > In 2002, received a response from our web site from a 1 site
operator in Scotland > That company subsequently raised capital and bought the
largest cinema circuit in the UK > Subsequently have made acquisitions in Germany, Poland and
Italy and now operate over 100 cinemas across Europe
> What we learned > Have a great web site > Get on a plane – go meet the customer > Provide extreme service > Look at the long term value of a customer
OVERVIEW OF VISTA GROUP
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The Vista Group
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Veezi
VEEZI (Vista Easy) > Cloud based - Download, install and set up from the website in 60 minutes > SaaS model > Handcrafted for the Independent Cinema > Market - Cinemas < 20 screens
> Rationale > Significant market opportunity > Recognises customer trend towards cloud based software solutions > Defensive tactic to suppress a challenger growing from this space
> Success since full launch in March ‘14 – 150+ cinemas using Veezi software across New Zealand, Australia, UK and US
> Potential significant efficiency for industry aggregators and film studios/distributors
> Future synergies with Numero
3,000 independent cinemas in the US alone
and 20,000+ world wide
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Movio
> Vista Group invested in Movio early in its development and will be 100% owned at IPO
> High growth big data analytics - SaaS model
> The only 100% film focused Customer Intelligence and Campaign Management solution on the market
> Seek to fundamentally change the way cinema exhibitors and distributors analyse and promote films
> Fully integrated campaign creation, management and reporting which measures Return on Investment
> Studio Analytics & Marketing platform – market research and analytics for film studios, distributors and media
> Direct marketing solution in multi billion dollar industry
> Uniquely positioned with significant barriers to entry
> Revenue growth of 175% from 2012 to 2013
> Over 30 million loyalty customers on the Movio database
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Numero
> New start up – first customer launch 2014
> Box office market analytics for studios (then media)
> Faster, easier and greater functionality than major competitor
> Leveraging off Movio Big Data technology platform and Vista Cinema customer base
> Vista Group has secured key talent to promote, position and grow Numero Numero
distributes box office data
Distributors
Cinema operators
Media (research companies,
advertisers)
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MACCS
> MACCS software manages core financial, logistic, administrative and decision making processes for distributors within the film industry
> MACCS is the largest provider, outside the US of film distribution software
> Rationale
> Business growth and synergy benefits
> Strong European presence
> The Vista Group currently holds a 50.1% shareholding
> MACCS can leverage the Vista Cinema world wide channel to gain exposure to new geographical markets
NT Non Theatrical
RR Rights & Royalty
Management
iMACCS Web Portal
HE Home
Entertainment
PA Prints &
Advertising
TD Theatrical
Distribution System
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The Vista Group
END