- VI STA GROUP Vista Group FY 2014 Results February 2015 Important notice This presentation has been prepared by Vista Group International Limited (“Vista Group”). Information in this presentation: > > is provided for general information purposes only, does not purport to be complete or comprehensive and is not an offer or invitation for subscription, purchase or recommendation of securities in Vista Group. This presentation does not constitute investment advice; should be read in conjunction with, and is subject to, Vista Group’s financial statements, market releases and information published on Vista Group’s website (www.vistagroup.co); > may include projections or forward looking statements about Vista Group and the environment in which Vista Group operations. Such forward-looking statements are based upon current expectations and involve risks, uncertainties and contingencies outside of Vista Group’s control. Vista Group’s actual results or performance may differ materially from these statements. Although management may indicate and believe the assumptions underlying the forward looking statements are reasonable, any assumptions could prove inaccurate or incorrect and, therefore, there can be no assurance that the results contemplated in the forward looking statements will be realised; > may include statements relating to past performance, which should not be regarded as a reliable indicator of future performance. While all reasonable care has been taken in compiling this presentation, Vista Group accepts no responsibility for any errors or omissions. All information in this presentation is current at the date of this presentation, unless otherwise stated. All currency amounts are in NZ dollars, unless stated otherwise. PAGE 2 > Introduction > Results highlights > Operating performance > Financial performance > Key Points > Questions PAGE 3 I VISTA GROUP - INTRODUCTION Business snapshot > New Zealand headquartered company that is a global leader in film industry software > Vista Group founded 1996 and listed on the NZX and ASX in August 2014 with a market capitalisation of $187.5m, raising $40.0m in new capital > Global footprint of sales and support with 300+ staff across 6 offices in Auckland, Sydney, London, Los Angeles, Groningen (Holland) and Shanghai > Core of business is Vista Entertainment Solutions (VES), a cinema software provider with 4,000+ installed sites in over 60 countries. 330% growth in installed sites since 2009 > Provides software to the film distribution industry through MACCS > High growth data analytics through Movio and Numero – cloud based SaaS solutions > SaaS cinema software solution with VEEZI > PFI forecasts run through to December 2015 Vista Entertainment Solutions 100% MACCS International B.V. 50.1% Virtual Concepts 100% Numero 50% PAGE 5 Result Highlights 1. PFI Exceeded > Revenue up $2.0M or 4% - $47.2M actual vs $45.2M PFI > EBITDA up $0.5m or 6% - $9.4m vs $8.9m PFI > Profit attributable to shareholders up $0.6M or 17% - $4.0M vs $3.4M PFI 2. Operating Metrics > VES revenue up 30% on prior year. Strong cinema performance through VES with total of 1,103 new sites installed during 2014 which is above PFI (890) and almost twice previous highest number achieved (567 in 2013). VEEZI sites installed met PFI target 3. Investment and Strategy > Conditional agreement to acquire US based Ticketsoft > Successful integration of Movio and MACCS operations into the Group complete PAGE 6 ol GROUP OPERATING PERFORMANCE Vista Entertainment Solutions - Vista Cinema > Strong performance > Sites installed in 2014 was 1,103. Almost 2 times our previous record > Revenue up on PFI expectation and 30% higher than 2013 actual > Significant Customer Installations > Regal Cinemas rollout to 583 sites completed ahead of original schedule > DADI cinemas. 230 sites in total completed with 210 implemented in 6 weeks > Global market share increased to 38% Continuing investment to drive future growth > Development and customer support resources > Opportunities in China > Ticketsoft acquisition > Will be funded from existing cash resources > Dodona PAGE 8 Vista Entertainment Solutions - VEEZI > Reached 150 total installed sites by 31 December 2014 > Revenue building to PFI expected levels > Sales and marketing model refinements resulting in more opportunities in the target markets > Delivered product enhancements to address more market requirements – e.g.USA > Working on expansion to additional markets beyond USA, Australasia and UK, e.g. China, France 3,000 independent cinemas in the US alone 20,000+ and world wide 1 1. Management estimate PAGE 9 Movio > Performance on target > Movio Media (studio analytics and marketing product) in BETA test with studios > Continuing to expand through the Vista Cinema client base in additional territories. > Movio functionality acting as a draw card for Vista cinema to potential customers > Technology platform used for Numero PAGE 10 MACCS > Core business performed well in 2014 with new customers in new markets > Expected growth from US market expansion delayed until 2015 > Preparation of the product and business in readiness for the USA market undertaken > Shortfall in 2014 performance vs PFI due to US market entry delay. Expectation is that 2015 performance will improve to PFI levels TD Theatrical Distribution System NT iMACCS Non Theatrical Web Portal RR Rights & Royalty Management HE PA Home Entertainment Prints & Advertising PAGE 11 Numero Distributors > Now collecting box office results for over 90% of the Australasian market > First phase of product development completed and in trials with major studios > Revenue delayed until 2015 > As a result, share of loss from associate higher than forecast Numero distributes box office data Media (research companies, advertisers) Cinema operators PAGE 12 56; 930% - m_z>zo_>r Trading Performance All figures in NZ$m's Trading 2014 Actual $ 2014 PFI Statutory $ % 2013 Actual $ % Revenue 47.2 45.2 4.4% 30.5 54.8% Operating Expenses 40.6 39.0 4.1% 22.4 81.3% Operating Profit 6.6 6.3 4.8% 8.1 -18.5% Net Profit attributable to Shareholders 4.0 3.4 17.6% 5.7 -29.8% Note : percentages are 2014 actual increase/decrease to the PFI number and the 2013 actual number Trading EBITDA vs PFI All figures in NZ$m's Trading EBITDA 2014 Actual $ 2014 PFI Statutory $ 9.4 • • • % 8.9 5.9% • Notes This is using the non-GAAP profit measure defined in the Prosectus dated 3 July 2014. EBITDA is - earnings before net finance expense, income tax, depreciation, amortisation and offer costs The share based payment expense of $1.0m is expensed within the 2014 actual EBITDA reported above. • Revenue supported by strong performance from VES cinema, with DADI rollout and Regal implementation completion in Q4 2014 IPO offer costs controlled ($1.8m vs PFI $1.7m) Costs of share based payments ($1.0m) expensed in the result Positive impact of lower NZ dollar in the last quarter – small FX gain at year end Slightly higher tax expense due to level of non-deductible expenses through IPO process and beyond PAGE 14 Financial Position All figures in NZ$m's Financial Position Current assets Cash Other receivables Non Current Assets Plant & equipment Intangibles Total assets Current liabilities Non current liabilities Loans Deferred tax and consideration Total liabilities Net assets Share Capital Retained earnings Reserves Non controlling interests Total Equity 2014 Actual $ 2014 PFI Statutory $ 2013 Actual $ 30.7 22.2 52.9 32.1 16.6 48.7 3.4 11.2 14.6 2.0 40.0 42.0 94.9 2.7 40.8 43.5 92.2 1.1 8.2 9.3 23.9 17.6 15.6 11.1 4.7 6.7 11.4 29.0 65.9 4.8 7.1 11.9 27.5 64.7 0.5 0.5 11.6 12.3 46.0 11.6 0.6 58.2 7.7 65.9 46.0 10.4 56.4 8.3 64.7 1.1 11.2 12.3 12.3 • • • • • • • Higher receivables at year end due to higher billing in last quarter Lower investment in assets as building fitout works move to 2015 No impairment of Intangibles Current liabilities up as pre-billing and maintenance in advance higher at 31 December No material change to Virtual Concepts deferred consideration estimate Contingent liability note removed as dispute resolved and accounted for in result Reserves as a result of • Share based payments $1.0m • FX revaluations ($0.4m) PAGE 15 Cash Flow All figures in NZ$m's Cash Flow Cash received form trading Cash applied from trading Operating expenese Tax & interest Listing costs 2014 Actual $ 2014 PFI Statutory $ 2013 Actual $ 48.2 44.8 27.1 39.3 2.2 1.8 43.3 4.9 34.9 2.0 1.7 38.6 6.2 21.4 2.9 24.3 2.8 • (13.9) (1.1) (15.0) (13.7) (1.8) (15.5) (2.4) (0.8) (3.2) • 38.0 4.8 (1.9) (3.5) 37.4 38.0 4.8 (1.1) (3.7) 38.0 (0.1) (4.4) (4.5) Net movement in cash held 27.3 28.7 (4.9) Cash balance at 31 December 30.7 32.1 3.4 Net cash flow from operating Cash applied to investing activities Investments Other assets Cash from financing activities Proceeds from share issue Proceeds from borrowings Borrowings repaid Dividends paid • Cash flow strong due to higher trading in last quarter Cash outflows on operating expenses higher due to timing of payments Overall cash position still strong to support future investment activity PAGE 16 I SUMMARY Key points > 2014 financial performance exceeded PFI > Key customer implementations of the largest cinema exhibitors in the USA and China > Over 1,100 new cinema sites installed, bringing total installed sites to over 4,000. Strong support for recurring revenue base > Our other business units in strategically strong positions to deliver the growth expected in 2015 > Expected growth in 2015 to be funded from existing cash resources > No change to PFI dividend policy, that is there is no current intention to pay a dividend through the PFI period. > 2015 PFI maintained at this stage. An update will be provided should expectations change PAGE 18 I QUESTIONS