Videndum Plc (VID.L) Earnings Call Transcript & Summary

Well, good afternoon, everyone. I'm delighted to invite you to Videndum's first ever Capital Markets Day. So very exciting moment for us all. It's actually 4 years since we did -- since Vitec did the last Capital Markets Day. So I thought the timing is great. It's fantastic to have so many people here. We've got a really great turnout, a large number of shareholders, analysts and advisers. So thank you very much for making the time. It's just great to see everybody after the crazy days of the pandemic. So thank you so much for making the time. We will take about an 1.5 hours of your time. So hopefully, it will be exciting. As you know -- as hopefully, all you know, Videndum in Latin means something that must be seen and so I hope after this 1.5 hours, you feel exactly that. From the Videndum side, I'm very pleased so we've got a very good turnout as well. We have the Board here. So we have my excellent Chairman, Ian, who is here. We also have Caroline Thomson; Chris Humphrey; and Erika Schraner, who's just recently joined. So I'm delighted to have the members of the Board here. From my team, we have the Media Solutions team, which is headed up by Marco, who is there; Chris Carr, and also -- Chris looks after marketing; and also, we have Sarah Radisson, who -- where's Sarah? There you are, so -- who looks after all of sales for Media Solutions, so she looks after sales for the half of the whole group. So you should definitely get to meet her. From the Production Solutions team, we have Nicola, and we have Richard presenting. We also have Dave. Where is Dave? Where is he? Dave looks after sales for Production Solutions, also make sure you talk to him. And then for Creative Solutions, we have Marco, who's the CEO; and Greg, who have flown here from California, and will be talking about Creative Solutions. In terms of the -- so that's a pretty good turnout. In terms of the sort of head office turnout, it's not quite so good, I'm afraid. So a couple of the team have not made it to the start line unfortunately. Unfortunately, Martin is not well. So we wish him well, and hopefully, he will be well soon. Also -- so he's my right-hand man, as you know. And then my right-hand lady is Jennifer, who unfortunately, about 4 days ago, got COVID. So she's not been very well but she's masterminded all this from her bed. And -- if you're watching Jennifer, I wish -- I really wish you were here, I can tell you. And thank you for getting us to this point. Hopefully, you'll bear with us if one or things -- two things don't go absolutely perfectly. So that is the head office team. Also if you see a chap running around -- actually a French chap called Felix, taking photos, he's one of us, don't worry. If you don't want him to take a photo of you or it's not your right side and not flattering, just let him know and he will not take photos of you. But he's a very, very talented photographer and he's also just got married. So congratulations, Felix. Now the only other thing to say is please don't ask any of the team about current trading because there's a great danger that they will actually tell you something that you shouldn't know. So if you could not ask, that would be great. So let's get on with it. So I think we're going to move on to the agenda. So you can all read this. I'm going to start. We're going to go through the divisions, and then I'm going to talk a bit about capital allocation, and then we'll have some -- we will have time for Q&A. And clearly, there's a lot of time to look at the demonstrations outside. There's loads to look at. There is a challenge to all to see who can make the voice activated prompting break. A few people have tried already. I know Antonio tried with his quite strong accent and it still worked. And, Erica, actually, you tried and it didn't break, so how we go with that. We've got a lot of stuff out there, and we've got a lot of people, got a lot of the redundant team here who can talk to you about what we're doing. The things that we're not going to talk about, we're not going to talk about ESG in detail. We are enormously focused on ESG. We're making great strides. We're just not going to spend time today. That merits another meeting. But we have got [indiscernible] from Inspired ESG outside. And also, Jon Bolton, our company secretary, who is helping with Jennifer drive our progress in ESG. We're enormously proud of what we're doing. You should have a pack in your bag. And also, there's some quite cool videos out there, which I'm pleased to look at because we're very proud of that. We're also not going to talk a great deal about Europeans Services, but Phil Beckett is here. Phil, if you want to wave. Phil is a representative of European Services, which is our business, putting cameras into unusual places at the Olympics and other major sporting events. It's going extremely well. Please do catch up with Phil, if you can. So let's just talk about what the highlights are that we're going to be covering. Very simply, we're going to be talking about Videndum growing in 3 key ways. Our core markets are growing. We've got growth coming from new content creation. We've got growth coming from live streaming with our Amimon technology. So the growth opportunity is something I've never been able to stand up and say we've got before. It's hugely exciting. And as a result, we are very confident in setting out our strategic ambition which is, if you like, the big news that we are going to achieve GBP 600 million revenue from less than GBP 400 million last year in 2025, more than GBP 100 million of operating profit. And we're going to achieve high- to mid-teen margins in the zone of 16% to 18% by 2025. We've built a platform to significantly grow the business, and we're hugely excited about that. So now let's talk a little bit about who we are. So at the heart of what we do is that we are at the heart of the content creation market. I'm just going to -- sorry, just take a quick sip -- we look after 5 key market segments. We look after professional photography and videography, including hobbyists. We look after influencers and vloggers. And both of those 2 customer groups are part of Media Solutions, and Marco will talk more about that. And obviously, the influencer/vlogger piece is very new to us. We've got our traditional broadcast market, which is primarily served by our Production Solutions, that includes live news and sports, includes Phil's business, European Services. We've got the cine/scripted TV market, including independent filmmakers, which is clearly growing significantly, which is driving primarily Creative Solutions, but is also driving the other businesses. And then we have this new opportunity of live streaming, in verticals outside of our core markets, such as enterprises, including medical, gaming, housed worship and so on. So those are the 5 key segments that we're going to be talking about. Let's talk a little bit about our brand positioning. This is really what makes us unique. We have leading positions with premium brands and innovative technology in defensible niches. So when I joined the company 13 years ago, we set out our purpose, which is basically the DNA of what Vitec did, which is that we help our customers capture and share exceptional images. That's what we do. And that's served us very well. It served us in helping us to allocate our resources, but it will also serve us in making sure we divested of noncore areas. 90% of the products that are bought by our customers are used by them to make their living. So they use them to basically support their business. And so 90% of our customers are professional content creators. And our products are mission critical, they're very high quality, they're technically advanced. And as a result, our customers trust us to support them. It's an extremely strong, I think, the strongest ever brand position that I've ever seen in any company certainly that I've worked for. And as a result, if we look at the market shares, a lot of you will have seen this. This is not new. We've got some of the product groups here. In almost every sector we operate, we are a very strong #1. And usually the #2 to us is quite weak. One -- the only exception to that is LED lights, where we have a big chance that you'll see -- outside a big chance to take share. But that is a very strong position for us, and we'll talk a bit more about what that means for us in the future. Now let's look at the total addressable market. So our total addressable market that we articulated pre-pandemic was GBP 2 billion, and it was growing, but it was growing quite slowly at low single digit. Post-pandemic, the total addressable market we are now going after is GBP 3 billion, and it's grown because particularly of the explosion in live streaming, but also because of our exposure into new markets such as audio. We now believe that our TAM, our total addressable market is growing faster. We believe it's growing high single-digit CAGR, about 8%, driven by the increasing demand for our products, and we'll talk a bit more about that in a second. And therefore, as a result, just through organic growth, coming 2025, our TAM will be GBP 4 billion. So that is a huge driver for change in our business. So now let's just talk a bit about our strategy. Our strategy hasn't changed. Our strategy is really simple. I know this looks very simple, but this is what we do. We drive organic growth, we improve our margins and then we grow through M&A. And we're very well placed to deliver sustainable growth for all our stakeholders. So let's get into that strategy and let's start looking at organic growth. So I know a lot of this is going to be very obvious to you, but 10 years ago or 12 years ago when I joined this company, the company was very, very different and the market was very, very different. We have seen a seismic shift in the democratization and digitalization of media. So when I joined this company, video content capture, video sharing, professional photography and so on was really the preserve of Hollywood, of broadcasters and professional photographers and maybe a few amateurs. So typically, that was the only way the video and content was being shot and we were all watching content back in those days on traditional terrestrial TV. Clearly, there has been a seismic revolution in the ability of people to shoot content, shoot video and share it with one another other. So we all know that. It's an absolutely seismic change. So now billions of people can shoot video and share it with people and get other people to watch here. So it's no longer the preserve of the broadcasters and so on. Now we don't focus on the billions of people. We focus on the millions of people who are now supporting this industry. So we're now consuming something like twice as much content each day that we did 10 years ago. And we're now seeing our existing markets of broadcasters and professional photographers are still there, but we're now seeing independent content creators, vloggers, YouTubers, filmmakers, gamers and, of course, production companies supporting people like Netflix, Disney, Amazon and so on. All these people -- Apple, are all getting into creating original content. And we believe that compared with about 10 years ago, roughly 10x as much original content, original film content and scripted TV content is being created versus 10 years ago. It's a massive change. And for us, this means that 10 years ago, we had hundreds of thousands of customers, professionals who really cared about shooting great high-quality content. We now have millions of customers. So it's a massive opportunity for us. So now let's talk quickly about the growth drivers. So specifically, what is driving our growth? So roughly 3/4 of all our markets are being driven by 4 key drivers. And we'll talk a bit more about this in detail in each of the presentations. But #1 is the Internet. So just the demand -- if anyone has ever set up their own website, the amount of photography or videography you do to get up and running is massive. And then if you've got something like fashion, it needs to be continually refreshed. So the Internet is driving our business, particularly driving studio photography. You'll see we've got a studio out here. You can talk a bit more about that. That accounts for 30% of our business. That's growing at more than 10%. That's been our core business in the future. It's fantastic to see it growing. The other area -- the next area is influencers, driven by TikTok and YouTube. Most of us hadn't heard of TikTok 4 years ago, 5 years ago. Some of us probably heard of it a couple of years ago. But TikTok is driving an absolute revolution in obviously in the creation of content and the sharing of content and accounts for about 10% of our group sales and is completely new for us. And that's where we have our JOBY product, which Marco will talk about. And subscription TV accounts for another 30%, and this is feature films, but more increasingly, the volume of scripted TV shows that have been shot, which are growing massively. So there are massive investment. Netflix may be losing a bit of share, we don't really mind. In fact, you've got Apple, Amazon and Disney investing in this area is a fantastic place to be. And then finally, live streaming. Live streaming didn't really exist as a big market 4 or 5 years ago. Live streaming is growing significantly, and it's a very big opportunity for us. So those are the areas that are driving growth. The ones that aren't on there, particularly -- or we're particularly affected by travel recently. So travel has been subdued. So this is where we sell compact dry broods, protective carrying cases and so on. That's coming back. So hopefully, we'll start to see travel come back at some stage. All this is being powered by technology change. So this is -- I know this is terribly obvious, but this really, really helps us. The changes in technology in the market around 4K, so the change of cameras from HD to 4K cameras is a massive help for us, and I'll talk about that in a second. The new form factors of digital cameras are compact system cameras, huge help for us. Every time a smartphone changes, it's great news for us. Things like LED lighting being driven by environmental concerns, is enormously helpful. So technology is driving shorter replacement cycles and we see this happening. And what we're doing is we are driving that harder. So we go to the next slide. We are investing in -- we bought Amimon, which is the world's leading 0-delay video transmission technology, which is absolutely a game changer. And we own the 4K piece of that. But we're not just doing things like that. We're growing in LED lighting. We've invested in manual tripods, in flow tech, which Richard will talk about, where we've taken a traditional market where probably the replacement cycle was horrible because the products are very well made, don't really fall apart, and probably the replacement cycle was sort of 10, 15 years. We've introduced a new product with new carbon fiber, fantastically easy to assemble. You must have a look at it outside, revolutionize the market, and we are running 24/7 to keep up demand because everybody wants one. So flowtech is a great example. We've got other things like small HD monitors. So outside, you're going to see our more HD monitors, which are wiping the floor with the competition because of the technology they've got behind them. We've got voice-activated prompting, which is completely new. And we've got robotics and studios. So all these things are driving shorter replacement cycles, which is enormously attractive. What this means is that of all the products that we sell, 50% of what we currently sell was introduced in the last 3 years. Now that is an extraordinary number. When I joined the company, that number was not 50%. It was 10%. So we're really, really driving growth through technology, and this is enormously exciting. So what does all that mean for growth? It means we're growing in 3 different areas. And I've never been able to say this before. We've had a lot of bumps in the road, particularly the photographic retail market falling apart in 2012, 2013, when the phone came out as a camera and half of our retail customers went bust. As you know, we had a fire in small HD. And also, obviously, we suffered with COVID like anyone has. We've come out of this in a very strong place. So we're growing in our core businesses, so things like professional photography, onset monitoring, broadcasting and so on. We're then growing from the new areas of content creation, where we can penetrate and take share in completely new markets, so particularly with influencers and vloggers with JOBY and with audio with our recent acquisition, which Marco will talk more about. And then almost as excitingly, we've got growth in new verticals enabled by video transmission, live streaming. So our ability to go outside of our core businesses take this technology, which you're going to see today and take it into other verticals like medical and industrial is a game changer, hugely exciting. So growth is enormously exciting. Let's move on to margins. So our margin opportunity is also very, very important. I'm going to talk a bit more about how all this builds up in a moment. But the things that are driving margin improvement, our operating leverage, improved mix, pricing and operational excellence. And we are seeing margin improvement across the business and expect to see margins develop to mid- to high teens by 2025. And where this business should be? Is this business should be a high-teen margin business? I'm going to briefly talk about pricing and operational excellence now. So in terms of pricing, I'm going to labor this because this is so important. So our pricing position is enormously strong. And what we are going to do over the next year or so is we're going to be able to get our margins up through pricing to fairly reflect the significant investment we're making in R&D and new product development. So as a result of the actions we're taking on pricing, over the next year or so, we will improve our margins by 2 percentage points, even if there is no volume improvement. And we're able to do this because there is very little price elasticity of demand, i.e., if we put our prices up, we don't see our volumes drop significantly unless we're in a very competitive area, which we tend not to be in very competitive areas. We've got a stronger competitive position than we did 10 years ago. And the reason that this is so powerful is that for our customers, our products are typically mission-critical to them. And there are also quite a small part a fraction of the cost of the shoot that they're making. So for example, if you are shooting Top Gun and you've got a action scene with planes flying around and you blow up a plane. If you then say to Mr. Cruise, I'm really sorry, can we just do that again because my tripod fell over, I'm out of focus. He's not going to be happy. He's not going to think that's a great thing to happen. And it is inconsiderable, and Greg will talk a bit more about the way our customers feel about this, which is that they have to trust us to make sure that their shoot works. Here's an example here. For some reason, this photograph has been put in my office. I'm not sure what it means, but here's a picture of a bison. Imagine you're that guy, who's been standing on a snowy field somewhere waiting for that bison to get close enough to be able to make a noise. And after 6 hours, you find you've got massive wind noise across your audio, and it actually sounds awful because you didn't have a right coat and wind jammer. You just will not compromise on that sort of situation. So our products are mission-critical. This allows us to put our prices up and we have a unique opportunity in the current inflationary situation to not just recover inflation, but also get our prices up and get our margins up to a level that I feel fairly reflects the investment we've made in our businesses. We also have a team who are very focused on managing prices correctly. I have driven this hard. We are all very passionate about this. And as an example, Media Solutions are putting their prices up, which is half of our business. They're putting our prices up about 8% this month. We also put our prices up 4% in January, and we put our prices up 4% at the end of last year. So you can see that pricing is really going to drive a significant improvement in margins. The second thing I want to talk about is operational excellence. So we can't take you around all the facilities, but we can bring the facilities to you, and we are a video company. So we decided to make a video of our facilities. So we're going to bring the facilities to you and you're going to see, hopefully, why operational excellence will also underscore margin improvement. So let's show the video. [Presentation]

Well, I hope you found that helpful. I'm incredibly proud of our facilities. Most of those facilities are either new or have been invested in significantly in the last 3 years. So we're a very well-invested business, very high technology, 75% of what we sell is manufactured in those facilities. So we're vertically integrated. So the result of all that is that the current supply chain issues and component shortages and inflationary pressures are affecting us less than a lot of other businesses. And the divisional guys will talk a bit more about that and how we're managing that. Also being able to say, for example, that we design and manufacture Manfrotto tripods in Italy, the made in Italy piece of the product is enormously powerful where most of our competition is Chinese. We're also able to drive 3% productivity through most of these businesses. It's challenging at the moment, but productivity has been driven relentlessly through these businesses, and you can see how we've invested in technology to do that. Now let's just talk about -- so we talked about margins, let's briefly talk about M&A. I'm going to talk about this a little bit more in the future. The bottom line is, we're good at M&A. Martin and I have got a good track record of buying businesses. We bought about 20 businesses since I joined 13 years ago. The return on those businesses is about 20%. We know what we're doing. We're getting better at it. And this is also an exciting driver of growth, although at the moment in that strategic ambition that we talked about, we are assuming no new M&A. We've just made a couple of major acquisitions, which will benefit us, but we're not assuming any new M&A in those numbers, although potentially we might be able to. So what does all that mean in terms of strategic ambition? I think I've been through this a couple of times. We're going to get to a revenue of GBP 600 million. We're going to achieve more than GBP 100 million of operating profit. Our margins are going to get mid- to high-teens, and we will get our net debt-to-EBITDA down below 1.5x. In fact, hopefully well below that. So that is, I think, an exciting ambition. Actually, you've got to find out from the guys that we're actually trying to do more than that. And obviously, our internal ambition is to do more. But I think we have a very, very exciting future. I'd now like to hand over to the teams to just show you why we're so confident about the future. So Marco, over to you.

Thank you, Stephen. Good evening. And for those of you who have not met previously, my name is Marco Pezzana, I am the divisional CEO of Videndum Media Solutions. I joined the company pretty much at the same time as Stephen in 2009, and have since grown the division to GBP 200 million in revenue by embracing a journey of digital and operational transformation. And this was whilst acquiring 5 exciting new brands that operate in the emerging areas of the content creation market, namely JOBY, Lowepro, [ SERP ], Savage and Audix. Our division used to serve the traditional photographic customer and has now transformed to become a provider of hardware and software solutions to the fast-growing contemporary creative community where they're living by monetizing content. The division today houses 10 market-leading brands. And today, I will take you through how we have transformed the business and the exciting growth drivers for the future. But first, let's see our powerful brands in action. [Presentation]

While 10 years ago, we were known for traditional imaging accessories primarily tripods and lighting supports for professional photo and video equipment. Over the last few years, we have evolved our business to consolidate our core skill set whilst expanding into new product categories targeted at a growing segment of contemporary content creation. We have recently added seamless paper backgrounds to our lighting portfolio under the leading Savage brand, launched innovative gimbals and stabilizers, engineered in New Zealand and commercialized under the Manfrotto brand. We're expanding into microphones and noise cancellation devices under the premium Rycote, Audix and JOBY brands. We have also developed the largest assortment of specialized accessories for professional vloggers and influencers. And lastly, we have complemented the Manfrotto range of professional carrying solution with hi-tech protective bags for outdoor content production under the world-leading Lowepro brand. As a result, our total addressable market has doubled. And the key enabler of this transformation has been digitalization of our brands that enabled us to get closer to our customer and improve our margins. In 2019, we have restructured the division to bring in-house digital specialist knowledge to work alongside our established team of market peers. We've built a market-leading seamless experience across our own sites, apps and key marketplace partners like Amazon and Wix. Today, e-commerce represents 50% of divisional revenue, and it is growing. Our digital capabilities are best in industry and provide a long-term scalable competitive advantage, both in terms of consumer ownership via CRM and across brands and because our Forrester competitors are unable to match our content production and customer service capacity across the world and across multiple product categories. Now let's look at our markets. Our brands primarily serve 2 growing markets. First, the professional content creators who capture still and dynamic content from behind the cameras. Secondly, influencer and vloggers, who always operate in front of the corner or the phone as they are the talent of their own creation. Today, both professional content creators and vloggers produce an increasing amount of dynamic visual content. And this must be supported by a quality audio so that they stand. Audio capture indeed, represents a significant incremental opportunity for our Media Solutions division. Now let's look at what's driving growth in our division. Stephen took you through the 4 structural market drivers. 75% of my revenue is exposed to these 4 drivers with the most too significant for the division being the Internet and social media channels. The Internet is driving unprecedented demand for visual and audio content to support the fast-growing adoption of e-commerce. As an example, the photographic industry alone has grown to an unprecedented GBP 70 billion in revenue. In addition, with 60% of media investment moving to the Internet, video production for web advertising is also thriving and driving a precedented demand for creative commercial content. Social channels like TikTok and YouTube are also driving explosive growth for high-quality digital content with over 40 million vloggers and influencers monetizing their content through a variety of affiliation and sponsorship platforms. Now I would like to introduce you to Chris Carr, who is responsible for marketing at Media Solutions. Chris will take a deeper dive into the 2 largest growth drivers for the division and the technologies that are empowering these positive trends. Thank you. Over to you, Chris.

Thank you, Marco. Great to meet you all. I joined the group about 11 years ago. I had to start in my career as a commercial photographer, nearly 30 years ago now. As Marco said, I'll give you a deeper dive on 2 of the 4 structural growth drivers. First, the Internet. This is the most significant growth driver for the division. Growth in e-commerce is not new, of course, but the segments now accelerating e-commerce grow further; fashion, food and hospitality, to name just a few, are driving unprecedented demand for high-quality visual and audio content. It is proven that higher-quality content drives superior conversion rates and revenue growth. Manfrotto is the market leader. We'll, of course, continue to serve this market in the existing manner. But it's also adding mechatronic technology to make the content creation process faster, more intuitive and easily repeatable to match the speed of demand. In addition, Savage, the leading backgrounds company we acquired last year, gets us even closer to this professional customer, which will enable us to build further share in this segment. So why is the type of e-commerce important to content creation? Let's take a look at fashion as an example. Obviously, this segment has a vast and frequently changing range of products, but also has the need to replicate the physical retail experience. It not only needs multiple high-quality images, but it also requires video and additional techniques like 360-degree content. In turn, the quantity, variety and speed required has meant more and more companies are creating their own in-house content production hubs, utilizing our brands. Our core lighting category is the most exposed area to the Internet and has recorded growth of 28% versus 2019. Now let's look at the second one, the social media channels. It will come as no surprise to you that 3/4 of the global population over the age of 13 use social media. We spent about 2.5 hours daily using social media. TikTok and YouTube are 2 of the most used platforms within these social media users. 40 million, though have grown a large enough following to enable third-party companies to market to their followers through various forms of collaboration, thus monetizing their following. JOBY has not only been designed for that part of the market, but it is at the heart of the community that we expect to grow further to over 50 million by 2025. We are using our digital platforms, significant reach into the community and installed user base of JOBY, to grow the brand significantly by 2025. We are adding motion control, software, workflow management apps and most significantly on-camera or on-phone microphones. This audio segment representing the biggest growth opportunity. As Marco stated, most content creation streams need great audio. And most importantly, the quality of the audio workflow starts with impeccable sound capture. The microphone market is larger than imaging with a total TAM of GBP 800 million. Audio clearly represents the biggest growth opportunity for Videndum Media Solutions going forward. The microphone market is also highly fragmented with the 3 leading brands only owning about 50% share. The on-camera segment is the largest and growing fast, driven primarily by independent content creators that we've just been talking about. Following the recent acquisitions of much-loved audio brands in Audix and Rycote, we can now drive market consolidation and take share by addressing each market segment with a dedicated brand proposition. JOBY will address independent content creators with on-camera and on-phone microphones. Rycote will focus on broadcast, and Audix will continue to serve Pro audio. The 3 brands we will use to take this opportunity are already embedded into their markets. But our first priority is to take a leading position in on-camera microphones by leveraging the popularity of the JOBY brand. Audio capture is the perfect adjacency for JOBY. We already serve the customers and share the same channels that we know very well. We already sell 1.5 million JOBY units a year into this very customer through e-commerce and consumer electronics channels. The brand is trusted by influencers and vloggers worldwide, who are looking to stand out from the crowd with higher-quality visual content supported by great audio. We recently launched a full range of on camera and podcast microphones, targeting the latest price points in the market, GBP 50 to GBP 300, and instantly took share. The Audix acquisition now powers up this strategy even further, allowing us to accelerate the development and production of innovative microphone platforms faster to be leveraged across our 3 audio brands. As we speak, we are in the process of scaling up sales of JOBY on-camera mics for our digital marketing machine, and this will accelerate further as new products are engineered and made in the U.S. when they become available. Meanwhile, our professional sales network, which has been serving broadcast and professional studios across the world for decades will also support Rycote and Audix growth, primarily through geographic expansion. Audio is the perfect adjacency for Videndum. We now have the in-house competencies to make market-leading microphones. Our aim is to become an emerging leader in the microphone market and drive at least GBP 75 million worth of revenue in audio by 2025. I and Sarah, who Stephen introduced to earlier, who leads our global sales organization and is with us today. Have just landed back from L.A., where we've been attending the largest audio industry trade show, known as NAMM. And we can say with absolute confidence that this industry is thriving and boosted by the same structural growth drivers that we are. So not only were our new products well received, including 1 Audix microphone getting to the final of the tech awards, but we also finalized major listings for JOBY on-camera microphones across all of our key retail partners, including key major retail consumer electronics. So audio is our biggest incremental opportunity with a TAM of GBP 800 million. Our brands are at the heart of this customer. We recently added excellence in innovation and manufacturing and we have now successfully started the exciting by 2025. In addition to this, across the board, we're seeing technology changes in our market, which are powering the product replacement cycle in audio as well as across most of the major product categories we serve. If I pick out a few now, capture devices are getting smaller, and users are looking for smaller and lighter accessories. Photo and video is converging to 1 device, meaning more creative mechatronic accessories are required for our customers' hybrid needs. All smartphones are improving their content creation capabilities and more and more people are looking for more advanced accessories to match this evolution. The Internet will evolve to the Metaverse, [indiscernible] to the digital and increasingly virtual world. Technology trends in the market are powering product replacement cycles and our own technology innovation is accelerating this. With active noise reduction in microphones, motion control and apps to pull all the workflow together, JOBY now provides [Audio Gap] on TikTok and YouTube. Our other brands will continue to bring new audio, mechatronic and patented mechanical products to the professional content creator to speed up the workflow and support that growing demand for content creation. So that's all from me.

Well, we've just briefly seen on the screen some of our exciting new products. I'm delighted to say that our marketing team will be available later this afternoon to demonstrate in the real life the functionality and the benefit of some of these new products that you have just seen illustrated on the slide. Now to summarize today, we're taking it widely for our division. In particular, we've seen how our market-leading Manfrotto and Savage brands are a crucial component to support professionals in delivering the increasing high-quality content requirement for the Internet. Mechatronic applications, in particular, enable more creative opportunities and faster execution. We've also seen how JOBY is being designed with a full range of exciting new products, including fast-growing on-camera mics. We've also taken you through the technology trends in the market and our own product innovation that is powering faster replacement cycles. So how do we benefit from this? First, through growth in our core professional business, where we are the leading, most innovative brands, and proximity to our customers. Second, through growth in the new areas of content creation, like social and audio that offers the perfect adjacency to our established business. Before closing, I wish to highlight how these new technologies and digitalization also underpin further operational excellence. Today, we manufacture 70% of our products, and this is including the restoring to Italy of the top-selling JOBY lines, where we've beaten pricing from China by 10%, i.e., automated and lean, we are cost competitive to the [ Far East ]. In addition, we design, engineer and tool all of our products in-house, thus making of our manufacturing capabilities, a solid competitive advantage and a powerful entry barrier. The made-in-Italy, made-in-the-U.S. strategy is a core contributor to the premium brand position enables us to offset inflation with a net price benefit. Through acquisition, we have expanded our engineering and manufacturing capabilities further to include mechatronic, PCB printing and plastic double injection molding. Highly efficient plants further benefit from the synergy of an integrated global supply chain system with fewer shortages and better service. This is very important because it interfaces with our manufacturing through artificial intelligence, also known as Industry 4.0, to enable best-in-class service with optimal working capital ratios. This is a critical success factor to enabling the deployment of our high-margin digital e-commerce strategy. And also, our proximity to the largest end markets coupled with vertical integration of key operational processes have allowed the division to be less dependent on suppliers more resilient to the current macroeconomic [Audio Gap]. So we are serving our customers better than competition, and we are taking share. Lastly, our plants are ISO 1401 certified and plan of CO2 reduction, thus contributing to the achievement of the group's ESG objectives. So in summary, our core business is growing, driven by the Internet. The division has transformed into a digital influencers and vloggers and it is perfectly positioned to access a really exciting opportunity in audio with primary focus on on-camera microphones. 75% of the division is exposed to the 4 structural market drivers. Technology changes and strong NPD are accelerating replacement cycles. And this is underpinned by a strong global operational footprint. We are now working with an increased TAM of GBP 1.7 billion, including audio. Our 2021 to 2025 revenue CAGR is estimated at 10%, and we expect to exceed operating profit of 20% by 2025. Well, today, we have spoken a lot about our customers. So it is only right, we finish with the video prepared by a number of our ambassadors and the loyal customers of our brands. [Presentation]

Thank you very much for listening. I would like to hand over to Nicola now. Thank you.

To [indiscernible], which is the basketball team. Okay, good. So ready to go. Fine. So thank you, Marco, first of all, and good afternoon, everybody. I'm Nicola Dal Toso and I've been CEO of Videndum Production Solutions for 2 years now and with the group for 8 years. Having spent my first 6 in Media Solutions with Marco as a CEO, and then working closely with Stephen to develop into this role. Today, I'm going to tell you how much Videndum Production Solutions has changed since many of you visited our very center moons facility in 2018 at a faster pace than the market, whilst we seek to maintain a 20% operating profit over the next 4 years. First, I'll describe our VPS designs, manufactures and distributes, technically advanced products and solutions. We have 9 best-in-class leading brands, which are extremely well known by our customers. These can be categorized in 2 range from robotic heads and pedal cells, to manual supports, from mobile power to prompting solutions, and lighting. In contrast to the other 2 divisions, as we only needed to complement our already strong set of innovative and technologically advanced brands. Each of our brands leads the way in its own market area. Every single one of the shortlisted Oscar nominees for Best Cinematography over the last 2 years was seen used in OConnor support in it. In these pictures, you can see some of the best directors in the world using our products, along with scenes from the sets of Nomad Land. On the right, best movie in 2021, and go down the left, best movie 2022, both shot with OConnor. But our products are not just on film sets, they're used in TV studios and live coverage all around the world. And at FIFA World Cup Qatar 2022, the majority of the field cameras will be controlled from the Internet. And in 2021, our Litepanels brand won its third technology and engineering award for its pioneering development [Audio Gap]. Here is a short video with some of these products in action. [Presentation]

Okay. Sorry -- previous one. Our markets have never been as dynamic and exciting as they are today. We confidently see 2 key areas of growth in our core business, which are directly or indirectly driven from subscription TV. Firstly, within the ever increasingly competitive world of subscription TV, content is king. Viewing figures are constantly driven by new, original and high-quality content across all the areas covered by these streaming services, going from films, to series, from documentaries to drama and reality TV. This clearly translates into an excellent growth opportunity for us across all our customer segments, from production companies to rental companies, from channel partners to freelancers. Secondly, and very much related to this shift from traditional TV to streaming services, our broadcast customers are faced with dramatically shifting business model. This requires them to adapt, invest wisely and do more for less. To this end, we have a significant opportunity to help them automate their workflows and deliver efficiencies wherever possible. Our innovative technologies developed in alignment with these growth drivers are amplifying how we can leverage these opportunities. As such, we are forecasting to outgrow the market. thanks to groundbreaking innovation that it's going through: First, accelerate product refresh cycles through highly desirable features and functionalities in segments where we already have a large installed base. Second, allow us to accelerate product refreshes, displace competitors and gain market share in the few areas where we aren't currently #1, and finally expand the size of our addressable market and broadcast through the delivery of new automation features in robotics and prompting. I'd now like to introduce you to Richard who will give you some examples of how we are capitalizing on these opportunities.

Thank you, and good afternoon. I'm Richard Satchell. I'm the Divisional VP, Vice President for Products and for Production Solutions. I've been with the group approaching 10 years. I originally joined through the acquisition of Autocue, where I was the CEO. Today, I want to give you just 3 examples that showcase how we're now innovating at pace, delivering breakthrough products that are perfectly aligned the market opportunity presented by subscription TV, and as Nicola said, that will enable our accelerated growth over the next 3 years. Firstly, I want to talk about one of the most critical tools for any content creation, the tripod. Here our patented and award-winning Flowtech tripod is already driving an accelerated refresh cycle throughout the market. We took the traditional industry standard tripod and completely revolutionized its design and features,; using Formula One and carbon fiber technology Flowtech is already an incredible success, in incredibly high demand and our factory is running at 24 x 7 just to keep up. This year, we're very proud to be celebrating the milestone of 50,000 units sold, and we're investing further to increase production capacity to 15,000 units a year and remove the current supply constraints. To complement Flowtech, we've developed an equally innovative new fluid head called Aktiv. This proprietary system combined with flowtech is making life unimaginably fast and simple for content creators and it provides the flexibility to capture shots that no other system can. I'd like to now turn to the world of lighting. And in lighting, we're striving to gain share through breakthrough technologies as well as position ourselves for the growth in the exciting new world of virtual production. Within light panels, we're continuing to break new ground in our levels of light output. This will allow us to gain share within the scripted TV and cine segment. Last year, we launched the brightest one-by-one panel in the market. And last month, we achieved the same feet with a brand-new [indiscernible] fixture, which you can see here on the screen. It's nearly double the brightness of our closest competitor. And prior to launch, we received an order worth over GBP 1 million from one of the world's leading production companies who have never bought our lights before. And that's incredibly exciting because it gives us great confidence that we can deliver on this strategy to take share. Also giving us great confidence is the acquisition and integration of Quasar Science last year. Quasar was formed by a team of Hollywood lighting [indiscernible] and their presence and relationships within that cine industry is already bearing fruit in our targeted expansion of light panels. Quasar itself is also extremely well poised to capitalize on the growth in virtual production technology. Here, there's a need for our lights to accurately and dynamically reflect what's happening in the image or the scene displayed behind the actors such as a burning building. And this is called image-based lighting. With the most color-accurate and controllable LED tubes on the market, we're better placed than anyone to offer this functionality. Lastly, let me turn to the broadcast studio market. Here, our customers, as Nicola said, are striving for greater efficiencies in order to fund more content creation and compete with the streaming platforms. Our strategy here is to innovate, providing new technologies that will fully automate our products. And in doing so, we can expand our addressable market and create new and recurring revenue streams. With prompting, we are already delivering on this strategy with Autoscript voice. This is a completely unique and patent pending technology that uses voice recognition and advanced algorithms to allow the presenter like me to simply talk, and we all believe we are not using the system right now, and you're very welcome to do a demo afterwards in the studio. For me, I absolutely love this technology because it's so innovative and groundbreaking but also because of the opportunity it presents to us commercially. So far, we've sold to less than 10% of our target market, but it's already driving an uplift of close to 20% across our entire Autoscript business. The product itself also enables the ability for us to generate recurring revenue for the first time with an ambition that this will represent well over 10% of our total prompting revenue by 2025. Looking ahead, we can see the exact same demand on our Vinten Robotics products. And our strategy here is exactly the same. It's to replicate the same level of automation and commercial success within this product line. So if I can bring all this together, our product strategies are delivering truly groundbreaking innovations. They're focused on the most exciting and dynamic areas of our markets. And in those markets, we are extremely well placed with our products and brands to drive growth. So now I'd like to finish by showing you another quick video featuring some of these amazing new products, and then I'll hand you back to Nicola. [Presentation]

So -- our strategy in Production Solutions is built upon a very solid foundation of operational excellence. 75% of what we sell is produced in our factories in the U.K. and Costa Rica, which means less dependencies on suppliers and fewer shortages. Our continuous improvement culture is driving effective solutions for those few shortages, while at the same time, delivering constantly more productivity. The strength and breadth of our technological competencies range from mechanical engineering to advanced electronics and robotics, pioneering software and artificial intelligence. All of our products are designed inhouse, and we protect our know-how by patenting our IP, which is often unique. Our processes use advanced and complex machinery, driving low cost and creating strong entrance barriers for other players trying to imitate us. The all production solutions organization is lean and flexible, able to adapt quickly to changes and capture efficiently all the exciting new opportunities offered by the market. Thanks to all of this, we are already operating at a level of profitability, which exceeds 20%. To sum up on Production Solutions. Our market is vibrant and offering great opportunities in our core business. We are continuously evolving with advanced technologies and software, which are amplifying the growth opportunities offered from the market. We expect our total addressable market to grow at 4% CAGR over the next 4 years. Thanks to our strategy and our operational excellence, our performance is already best-in-class with profitability at over 20%. Our ambition is to now grow faster than the market with that same profitability. Thank you for your time, and I'll now hand over to Marco.

So hello, everyone. My name is Marco Vidali. I'm the new CEO of Creative Solutions. I've been actually with Videndum and Marco and Stephen for almost 10 years. I spent 7 years working with Marco in different roles, in Asia Pacific first and then in the U.S. So before joining Videndum, I had various management roles with consumer companies like L'Oreal [indiscernible]. But I have to say, leading Creative Solutions is by far the most exciting job I ever had. I just started -- we just started actually to apply our unique patented technologies in this new vertical end markets. And today, actually, we are here to tell you how we will unlock their full potential. But first, let me share a short video we put together with some of the recent highlights. [Presentation]

So that video gave you, I hope, a bit of an idea on what and where our products are used, in which context and which scenarios and so on. So -- but let me tell you a little bit about who we are. It's not that simple, actually. But what we are mostly is the expert in ultra-low latency video transmission. No one else can actually be as fast as good as we are in sending video from point to point. We are also the standard wireless monitoring solution used basically in every Hollywood you ever watch for sure. Then on top of that, Creative Solutions, core product and brands, SmallHD, Teradek and within camera have all been in business for over a decade. And actually, we grown the company from a garage-top culture into a fully integrated cutting-edge global business. So our customers, which is actually the bit that makes me most excited are names like SpaceX, Stryker, NASA and every Hollywood film production worth mentioning. So just if you had a chance to look at the making of the behind the scene on Top Gun Maverick, you will see that our products are basically all over the set. We just received actually, Greg just received, during this meeting, a picture from one of his friends actually was shooting Top Gun where you can see Tom Cruise actually with our monitor in hand, right? So I believe it -- so just in the last 12 months alone, our contribution to the industry has been recognized with the technical Oscar from the Motion Picture Academy and Emmy. So we can saw we are Oscar winner. In 2021, our business grew to around GBP 75 million, which is basically around 20% growth -- 25% growth, I'm sorry, versus 2018. And we expect to keep growing at CAGR of 20% approximately in 2025. So up next, we will talk about our products. And to do that, I'm going to pass to our GM of cine business, Greg Smokler. Welcome, Greg.

Thanks, Marco. I'm Greg Smokler. I've been working at Videndum for over 7 years. Since 2015 when Stephen and Martin bought my start-up of Paralinx. So thank you again, Stephen, for that. Before that, I basically spent my entire life on film sets. I grew up on film sets as a kid. I'm working for my father who is well, crawling around from sets for my father, who is a cinematographer who is actually still shooting television shows. But now I look after the cine segment of Creative Solutions, which serves the market for scripted content production and comprises a really large amount of the products coming from Teradek and all of the products that we make at SmallHD and Wooden Camera. And so Creative Solutions' core business really revolves around these products for the cine market, which is, of course, the production of scripted content for television and streaming and theatrical and streaming feature films and documentaries. And with our 3 main product brands, SmallHD, Teradek, Wooden Camera, we surround the wide variety of digital cameras with intuitive and seamless products that allow the technology to disappear so that the artists and creative teams can focus on what they do best, which is getting the shots that they need to tell their story. Filmmaking is a highly collaborative industry and each specialized creative team needs to have constant access to the camera feed in realtime to execute the vision for their content. And Teradek is the wireless workhorse that sends pristine wireless feeds of video around the set to SmallHD monitors, which are either on a camera or off. And just like the massive industry for smartphone accessories, Wooden Camera is the connective tissue that allows creators to seamlessly outfit the camera with our equipment. Now I'll talk a little bit about the other 2 main market segments. First, live streaming, the live streaming market. We build network video encoders for broadcast market, houses of worship as well as the massive live streaming content creator industry that Stephen and Marco have talked about earlier. -- serving these customers is an essential component to our strategy, and we have a lot of technical expertise in IP network video contribution devices as well as a rapidly expanding portfolio of cloud technologies, thanks to our recent acquisition of Lightstream. And medical, the medical field, which is integrating high resolution cameras and video into more workflows. It's a big opportunity for us. And our expertise is allowing us to replace camera cables the way we did on film sets as well as extend the camera beyond the operating room into the cloud and augment telehealth with incredibly robust and low latency network video. We've actually been in medical for a while now with this exclusive partnership that we had with Stryker endoscopes. But now we're opening our technologies to the whole medical market, and we've got a lot of firm commitments from a lot of the top players in the industry. So Marco is going to tell you a little bit about how we're going to drive growth for the division.

So Creative Solutions is a technology, technical company, right? I mean most of our actually team members are engineers, R&D and -- and so thanks to that, we are able to capitalize because we have placed that in the center of an industry that is in the middle of a technology refresh, right? So now our industry, our biggest industry, which is the cine scripted TV is moving from shooting in HD to 4K and HDR. So these overall trends 4K is also driven by actually our own proprietary 4K HDR wireless video products because very simply, no one else can do it. So there's a whole series of market disrupting also monitors that we are working on, Greg will tell you a little bit later. So we will complete our wireless offer with also 4K monitors, bigger motors, also called [ reference ] monitors. The monitors alone will add actually GBP 80 million to our cine total addressable market. The Sony is the incumbent at the moment, and we are coming for the share. We have compelling products that are actually better priced and with better features. So we said that Creative Solutions core business is the scripted content market, what we can cine internally. The streaming wars continues, like Stephen mentioned before, yes, Netflix lost value in the share, but that does absolutely means that Apple TV or Amazon or all the other players, Paramount and so on, they are not investing in original content. Actually, they increased their investment. So we estimate that to be around probably a 25% to 30% CAG over the next few years. And the very good news is that the streaming studio mandated that production shoot their content in 4K. And we are the only one with the 4K wireless. And as I said before, we are gaining market share, and we are certainly a leading brand in the 4K production monitors. So these requirements are continuing to accelerate the [indiscernible]cycle of legacy equipment from HD to 4K. But with just the beginning actually of the replacement cycle and the opportunity continues to grow on top of this 4K revolution because the world got used to the convenience of remote to work and the total seamless connectivity. So what we are doing is that we are adding a cloud collaboration platform to our product portfolio in order to increase the stickiness of our customer to our brand and to our products. So imagine, we have the hardware. And now in the same hardware will have also a software component for cloud experience. So Greg will shortly actually show you and give you a demonstration about the product. But basically, the product will allow to do instant line monitoring from different camera feeds, in 4K, and it will also allow you to upload the video file to a variety of platforms like I'm sure a few of you have heard about it, like the Adobe [indiscernible]. So now let's talk about live streaming for just for a minute. So COVID changed the way we work and communicate. So hybrid working is not going away. And with our all the video devices and cloud streaming platform, we are in the position to capitalize better than anybody else. So like I mentioned before, what we're doing for cine, now we are developing also collaboration tool dedicated to our core markets, markets where we operate. So try to imagine a Zoom on steroids, hyperspecialized, that actually runs on our hardware that, by the way, is already being used like we've shown you so far, by a lot of customers around.

In the cine scripted TV markets, the margin for error is nonexistent and the egos are massive. I've experienced this a few times in my life. So -- therefore, there is zero tolerance for any video delay or any compromise in the quality of the image, which is why we're the only solution truly for this industry. Our Amimon technology is a zero-delay wireless technology. It's unique and patented and it's developed solely by Amimon. And with the new 4K/HDR chipset, that we are putting and shipping in all Teradek Bolt devices, we are going to continue to see this product line drive the foundation of our revenue strongly over the next few years. It is really strong position. And alongside this position in wireless, SmallHD has actually been able to double in revenue since 2019, which is a pretty great accomplishment, I think. We did this by becoming the industry standard for ultra-bright on-camera monitors. And we're so strong there that Red Digital Cinema, which is a major cinema camera company, they've tapped us to design and manufacture every touchscreen monitor that ship with our new camera system. So everybody that's using a Red Camera touches our monitor, touches our monitor to make the camera work. And on top of that, we are tapping it to even newer market monitor market segment which is our line of 4K production monitors, which, like Marco said, we're challenging the market leader, Sony, in not only price but in the actual technology capability. And most importantly, of course, is the image quality. We've spent the last 3 years maturing this 4K large-format monitor platform and we are actually now shipping seven different models, again exposing ourselves to this new GBP 80 million TAM. Our 4K wireless refresh is in full swing. It's a huge opportunity. But what is really potentially even the biggest opportunity going forward is the work we've been doing to take this patented point-to-point Amimon technology and leverage it to go even further.

Yes. Thanks. So recently, we've been working with the strategic consultants to analyze opportunity in adjacent market. We've been very successful in cine. We saw this technology can be applied to other vertical for sure. And we look into markets like medical, and industrial and general, markets that basically use video and cameras in the work. So we are already successful in some of these, in particular, in medical, where like Greg said before, we have worked with Stryker endoscope but now we are expanding to work with many of the largest player with the new 4K point-to-point based product. So that's something that gives you very clear idea of what we are doing in medical because all the green flag that you see basically on products, that are already using our technology, or about to use our technology and by about, I mean that we have already an advanced conversation of our commitment with the player that actually makes the entire product. So these customers, potential partners of customer are brands like Stryker, GE Medical, STERIS, ARI Medical and our ambition is to soon be in every video camera in the OR. And I can keep going, actually. Our technology is great. But internally, we were debating about the also about the weakness of our technology. And one thing that actually we thought we wanted to do is eliminate the limit of range. Today, our point-to-point 4K technology has a very long range, 10,000 feet. So it's great. But we debated internally, how can we take the technology, eliminate the limit of the maximum distance, the video can be streamed and just go all over the world. So at Creative Solutions, we like challenges. So we work very hard on that. And we found -- we believe we found a way, actually, we're sure we find a way on how to use simulate, to emulate what we do in the point-to-point, so in this up to 10,000 feet video transmission device -- over the public Internet. And we came with the video protocol and actually another device, that is called ART, that basically does what the Amimon point-to-point technology is doing over RF up to 10,000 foot over the public Internet. Now Greg will tell you a little bit more about that, and we also show you product demonstration.

Thanks. Over the last 3 years, like I said, our engineers have been extremely busy. We took the technology that has become ubiquitous on film sets connected to every single cinema camera and we've evolved it to run over any network. The result is what we believe is the best IP video protocol ever. ART uses the same transmission scheme ingeniously deployed over IP, like Marco said, instead of radio frequencies to deliver ultra-low latency reliability and image quality that eagle-eyed filmmakers and medical professionals have come to expect and require. This capability in ART outpaces the most -- even the most well-known competitors in IP video, allows us to expand our core markets as well as opening up multiple verticals that are new for us in the mission-critical video segment outside of media and entertainment, where we're really strong now. This is the protocol for the post-COVID world. It's the best video over IP protocol. We are going to go live now. And so what is ART? Everyone has watched a news anchor on-site reporting live on the scene of a natural disaster, a major news event, maybe it's a remote interview live on news. Broadcasters in these scenarios take extreme precautions to ensure that their video feed of the remote camera is never interrupted in the middle of this broadcast. But to do this, they have to add significant buffers to their streams that have to travel over a satellite network -- cellular network across the globe through the cloud. The reason for this delay is that the remote camera is sending frames of video. If it loses a frame, it will cause the compression codec to fall over, break up or even completely disappear. The more frames of buffer that they can preload, the system can wait for that remote camera to send those missing frames again and slot them into the buffer and the viewing public never knows. But what you have is this delay. And you can imagine how confounding that would be to deal with it, especially in an interview across the globe between a U.S. President maybe and an interview where the U.S. President might get really frustrated and leave the interview because he thought that they were talking over him. So that's why we've converted this ultra-low latency ultra high-quality and ultra robust technology behind bolt and deployed it in this IP network capacity. So I'll quickly just describe this and then we have a little video to show you as well with a less horrible subject matter. Yes. So up here it is plugged directly from the camera into the system, and this is a Bolt 4K. Basically, they're identical because Bolt is sending a 0 delay, uncompressed, perfect. Down there is ART, which is actually an actual video over IP protocol. You can see that the latency is almost as low as the hard wired one. And up there is a competitor, which I won't tell you who it is, but someone else might. This is actually a perfect network condition. So we're here in the stock exchange. Of course, they have a great Internet pipe. But many of our customers, they're out in the field, shooting, they might need a cellular bonded solution. They might be going over satellite. They might just be going through across hops through the cloud across the continent. And so there's interference that builds up, there's packet loss. And even a tiny bit of packet loss, this is like 2% can cause at a low latency setting, which already is much slower than our this market leader to completely fall over and be useless. And the only solution is to just make a longer and longer buffer. -- so that every one of those missing packets can be said, "Hey, can I have that packet?" And then we'll wait for it to come. So show you a little video that we have lined up that will kind of give you a better image quality to see the degradation and how ART handles it perfectly and others might not. [Presentation]

So I'm sorry. I mean, obviously, perfect network, but again, it's lagging, right? We're starting to add a tiny bit of packet loss, tiny, completely disintegrating. And then as we get to a poor network, you'll see that ART is handling it really, really well. I mean, you might maybe see a little bit of issue with the quality, but I mean it's hard to even tell it. And really, that's -- you can go and watch this outside. We have a lot of different versions of it. We'll cut it here. And you get the idea, right? It's -- we're awesome. So -- yes, I mean, you can imagine all of the different environments, applications for this type of low -- ultra-low latency video that can go over a network. You don't need some super-powerful radio trends transmitter to send it, create some sort of custom mesh network. It goes over any network. So -- Marco will tell a little bit about the business.

Yes. So in the mission-critical video market, the one they just showed before with the demonstration of our, they are basically 2 incumbents. And these 2 companies, that is many in that. But I say the 2 biggest together, they make GBP 150 million in revenue, basically doing exactly what Greg showed you with that. Now as you just saw, ART is superior in latency video quality, but particularly in robustness. You saw the video of the competitors, maybe were still visible in and out. Maybe the delay was still as correctable, but the quality was really really poor. So we have identified several applications in the market where we already play scripts at cine medical and industrial and also obviously broadcasting. Actually, CNN is using one of our product as we speak right now, we receive feedback Greg and I in the last 2 days, they're very happy -- we're very happy with the product. So that's actually -- it's probably the first customer that is actually using it daily. They were broadcasting from London to New York. So now in order also to leverage ART and all the cloud knowledge that we have in the company, we are developing what we were discussing before, a platform called Teradek TV. And Greg will basically -- Greg will tell you about it right now. But what it is, is the Zoom on steroid that basically allow cine people, people that work in cine with little ego like Greg to collaborate and work together remotely.

So -- yes, we call it Teradek TV, and it's built with our cloud platforms, and Lightstream was a big part of that. We call it Video Village Anywhere. Like on a film set, everyone's gathering around those monitors to make creative decisions, and those decisions affect the entire product and ART is... So basically, we designed it during COVID to allow stakeholders and creative teams this really high quality, but also totally encrypted, live camera feed management system. Between core cloud, which is Teradek's cloud platform and the Lightstream cloud, we have a very mature and diverse stack of technology pipelines, technology to handle multiple pipelines of IP video, like I said earlier. But what we've lacked in the past is very focused products that have been curated for specific users and markets. And the development of Teradek TV is the creation of a new user interface platform. In this case, it's for the high-end cine market. But it's important to note that the simplicity and functionality of the product will soon be able to be iterated into any of our other markets like medical, industrial, they're already working on it for medical based on this and as we continue to build up these cloud platforms of course, we're going to grow our annual recurring revenue, which is really great. But even more importantly to me is that we really pull our customers closer into our proprietary ecosystem, offering cloud connectivity and integrate it into every device that we sell, just like everyone in this room has iCloud or Google Drive account linked to their phones, so that's a really powerful connectedness to our customers. So here's a little walk-through of Teradek TV. It's an all-in-one production streaming and monitoring platform that allows any production to take a fully encrypted low-latency IP video feed from set or a postproduction facility and effortlessly share it to any creative collaborator or decision-maker anywhere in the world. It's designed for simplicity as you can see. And it puts all of the technical complexity under the hood. We want an executive producer to be able to tell; their assistant, "Hey, make sure financier gets the feed immediately, here is the email address." Boom. you punch it in there and it is sent. Productions simply need to connect a Teradek encoder device to the service. They can now manage with a very intuitive user interface, all of their users, their camera feeds -- and I'm slowing down so we can see the rest of the video. But larger productions can also oversee their projects, all of their projects that are going. So that allows them to snoop and make sure that things are running well. They can view the costs associated with sending the feeds. And they can actually monitor specifically every user who's been shared to it and at what time they've watched it, because, obviously, this is extremely sensitive and private contact. This is $100 million project, we can't let that get out. It's a multipurpose tool for viewing, monitoring, collaborating where critical team members can have their own low-latency high-quality encrypted private room where they can chat and talk over the live feed. But if you use your imagination just a little bit, you can see how this versatile interface can be tailored to be different markets like medical and industrial, right? And the best part, of course, wait for it, it's that when we integrate it with ART, it will be even better. It will be faster, more reliable, and just streamlines everything and really it also makes it just incredibly unique. So, thank you. Let's turn this off and we can show you this demo later if you're curious. We can click through it.

Yes. This is really exciting because we're going to apply in cinema, a market that we know very well and then we're going to replicate in other markets that we know but not well as cine, what we learned from the cinema. And just one comment, some of the competitors Teradek TV today, they are already using our hardware, our devices. So our big advantage is that these people are already using our hardware, so embedding the cloud in the software will be easier than for someone else. Anyway, so I shared with you a lot of exciting news today, so allow me to try to recap it in a few points. So our core business, which is the scripted TV, it's growing very well. And we're also adding to our total addressable market, the large production monitor, which we said a couple of times, are GBP 80 million. So thanks to our existing technology and innovation, we are growing outside of our core vertical market. And we see our TAM growing from GBP 1 billion to GBP 1.8 billion by the end of 2025. Leveraging our [indiscernible] installed base and our cloud platform know-how, we are launching, as we just discussed, dedicated like collaboration software for our markets, making our SaaS business at least GBP 60 million by the end of 2025. So you just saw this great technology demonstration. This is the result of the investment in the R&D that we have made in the last few years. So we've made the investment, we had the platform, and we will significantly increase our ability to grow, thanks to that. So not only in our core market, but in multiple markets as well. So by growing our TAM, our volume will increase, allowing us to continue to improve margins. So thank you, everyone. Now I'm going to hand back to Stephen. And I hope you enjoy our presentation.

Right. And so I'm now going to talk about our capital allocation and our financial goals. We've talked about our strategic ambition. And now how does that all build up? So let's look at the revenue. So we've got here a revenue bridge. This is really just to outline how the growth is -- where the growth is coming from. The blue bar is production solutions. The great thing here is that production solutions in the past has been a drag on the business. The fact we can say that it is growing now is fantastic. But obviously, the main growth is coming from our Media Solutions and Creative Solutions. I'm not going to go through all of the detail here, but clearly, Creative Solutions, the numbers here are still quite modest. We believe that potentially we can do a lot more with ART. Another way of looking at this in a more qualitative way is to look at the core business, core organic growth, core market share gain, then the new content areas of JOBY and audio which we see significant savage already, we have already made that acquisition and then we see the new Lightstream new verticals that we just talked about, all big opportunity. We do have some declining areas such as large pedestals in large studios, but we don't have many declining areas at the moment. So you can see how all of that builds up. The crucial thing here is that this assumes no new M&A and gives us a CAGR of above 10%. I am extremely confident that we will be able to drive our net debt down sufficiently to be able to make acquisitions in this period, so that gives us another driver. So now I'll just move briefly on to margins. We are going to drive a drop-through of more than 30%. How are we going to do that? We are obsessed, and I'm obsessed with driving operating leverage. So as we grow, we should be delivering operating leverage. This business should really deliver, in theory, an operating leverage of 45% or more. Now clearly things happen. You make investments and so on, but that is the target. We will drive that through -- [ oversee of the ] drop-through of the margin, but also driving operational efficiencies, trying to control our costs as much as possible, trying to make as many of our costs fixed rather than variable. I spent a lot of my career doing this, and I know that we can do it. Then on top of all of that, we've got pricing. So I've talked about the impact of pricing. Pricing on its own without any volume increase will give us an extra 2 points of margin. Then on top of all that, we have mix improvement, particularly as we sell more products into the E-commerce channel, so for example into Amazon and so on, we make better margins because although some of those customers are quite difficult to deal with, they're very efficient and our margins are higher. As a result of all this, our margins will get up towards the high teens level, which is where I think they should be. Our ROCE will be more than 25% and our net debt will certainly be low 1.5x, I'd hope it would be closer to 1x, okay? Then let's just talk briefly about M&A. Our M&A track record, as we said, is very strong. Here are all the businesses we've bought and sold. Our strategy has been to acquire niche leaders in growth markets. We've been very successful at that, and we've been very successful at divesting the businesses that didn't fit strategically that are noncore. So we believe that we can -- we have a machine that can deliver a 20% return. And when we have the capacity to start making acquisitions, again, that will also help to underpin our growth. Let's now look at capital allocation. There's a couple of things on this slide I want to focus on. One is that in terms of organic growth, we are going to continue to invest in R&D at quite a high level. All through my career at Videndum, we have never cut R&D. We've always invested in new products, and we are really starting to see the benefits of that, particularly in Creative Solutions, where our R&D investment has been very very significant. We will continue to have progressive dividend policy, and we will start to make M&A when we can afford to do. We have a disciplined approach to capital allocation. I'm now going to talk briefly about Creative Solutions. I know a lot of you are interested in what we're doing. Hopefully, you've seen today, we've been doing a huge amount of work confirming what we believe which is the market opportunity for our technology is very significant. It is very significant in our existing markets of scripted TV, cine and broadcast, but we've also done a lot of work to understand the size of the opportunity in other verticals. A lot of this we can access ourselves, so we believe that the future, as you've seen for the revenue chart, the future for Creative Solutions is very attractive and it's very attractive under Videndum. So that's great news, and we're very, very positive about that. However, we do also believe that the size of the opportunity for ART is enormous. So we are continuing to explore options to try and unlock even more value from ART, which may include licensing, which we are looking at. It could involve selling the technology. It could involve a joint venture with someone who can access some of those markets more effectively than us or at the right price, it could include selling the division. When we've got more to tell you about this, we will tell you. So in summary, Videndum is growing in 3 different ways, and it's enormously exciting to be able to stand up here and say that. I'm enormously confident that we're going to achieve this growth. And if we achieve this growth we are going to achieve our strategic ambition of GBP 600 million of revenue in 2025, GBP 100 million operation profit and mid- to high-teen margins, we've built a platform to significantly grow the group. But what is, I think, most exciting is that at the heart of Videndum, in our DNA, is that we are uniquely placed at the heart of the content creation market. We've got the brands, we've got the people, we've got the operational excellence to take advantage of changes. So for example, we've not spent a lot of time talking about the Metaverse. The Metaverse is potentially a huge opportunity for us because people are going to want to have better content, content created in a more effective way. And also, of course, when we're in the Metaverse, we're going to want instant communication. We're going to want 0 delay, 0 latency. We're going to want high-quality video, and that is where ART will come in. So we believe we're in a very strong place. We've got world-class people. We've got outstanding operations. I think our ESG credentials are excellent. We've got a strong M&A record. We know what we're doing in terms of M&A. So we think we've built a great platform for the future. And I think the future looks extremely attractive. So thank you very much for that. We're now, I think, going to take some questions.

Scott. So if you could just -- you should get a microphone. So maybe pick up Scott there. If you can just say who you are -- obviously, everyone knows you're Scott now.

Scott Cagehin from Investec. I find it quite hard, going through the numbers, not to get to a growth number much higher than the 10% CAGR with the GBP 600 million ambition. So I assume you've baked some contingency in there. And clearly, the drop through you're talking about, there will be a contingency in profits. So could you maybe talk a little bit more about -- and then following on, that doesn't include ART, obviously. So talking about the opportunities for Creative Solutions. Would you be willing to go through those four other options in a tiny a little bit more detail possibly? Or is that too cheeky a question?

So in terms of the ambition, of course, we have got an internal ambition, which is higher than that, much higher actually. So if all the things, all those building blocks, if we get the market -- the market is growing at that level and I knew take a bit of share. We add on the acquisitions we've already made. We add on the opportunities in the new content areas, then we will grow faster than that, we will get to that position quicker. And then I think even more likely is I think we will achieve these margins more quickly. So the ability, particularly because of pricing for us quite quickly to be able to improve our margins is pretty significant. I mean, I think Marco, you run half the business. It's fair to say we've got an internal target to beat the numbers you're talking about? Would you like to comment on that briefly?

Yes, absolutely. And 2 quick examples. We talked about the power of JOBY in terms of targeting those 40 million monetizing creator. We've not even discussed the halo effect that this can have on the broader social community that those monetizing content creators have that following. So that's an example. We talked about audio market in terms of microphones and particularly on camera microphones. Well, when we think about the entire workflow of microphone, that's double the market that we've just discussed. So only that clearly says that in a way we have been cautious, realistic and pragmatic but the opportunity is significantly greater.

In terms of Creative Solutions, so what is new here? Clearly, the big new news is that we've got ART working. You've seen ART work. We showed it to customers NAB, CNN are using it. We can see a big opportunity. So there are 2 guys out there. One of them is Haivision who have a big sulk of that market. That sales were about GBP 150 million, Haivision and another company who are basically doing what ART can do, ART is better, and we will be able to pitch ART at a very competitive price and take a big share of that market. That's -- we can clearly do that. So that's big news that we can do that. So we can do that within Videndum. We have the channel. We know the customers. We will be successful with that. We will be successful with Teradek TV. We will add ART to Teradek TV, we will be successful. The question is, -- and the thing that probably keeps me awake at night is how do we take this technology into these other verticals, which we've sized, has been really quite large, as Marco said, about GBP 600 million of opportunity in medical, industrial and so on, some of which we can access, but maybe we are not able to access all of that. So do we need some help? Do we need to license? I mean, we're already -- we have been licensing in Medical, may want to do more of that. We may want to look at JV options. So all the options are available to us. I think the good news is that we don't need to rush into this. We can take our time and make sure we do the right thing and unlock value for you shareholders.

Henry Carver from Peel Hunt. Just one more generally around the pricing and the sort of shape of that to 2025. Is the main step change that you talked about happening this year or sort of [indiscernible] weighted? And also, any sort of idea of what competitors are doing. Is everyone else sort of seeing the same opportunity in this environment to make that same strategy?

Yes. So clearly, what we need to be very careful is to say we are in no way abusing our market position, and we are appropriately increasing our prices to get to margins, which we think fairly reflect the quality of our business and the R&D investment we've made. A very large part of the pricing impact is going to happen now. So it is happening now. So Marco is putting his prices up right now by 8% across the whole of its division. That's the impact. So clearly, it will have an impact this year, but we've got quite a big backlog at the moment. So the impact this year won't be huge, but it would be significant. And we are clearly offsetting inflation. But next year, that will have a really big impact. But it is a bit of a one-off because at that point, we will then probably back into a lesser -- maybe, hopefully, into a lesser inflationary market where putting our prices up like 10% is something your customers really aren't going to tolerate. So it's a bit of a one-off and it is an opportunity to do this. And if you talk to people like Chris Carr and Dave and Marco, they know that I've been banging on about this for a very long time, and we take this very, very seriously. I've forgotten what your second question was, sorry?

[indiscernible]

So competition -- well, we're a market leader in most of our markets. Clearly, there are some areas where we're not putting our prices up that much. But the overall, for example, [indiscernible]. He's putting its prices up more in some areas, less in others. Our competitors generally follow us. We're the market leader, and we get followed. So our competitive situation, I can tell you our market share and competitive situation compared with when I joined the company is so much stronger. I think we may -- well, okay, we'll take some more questions. I know we're running over, and it's, I'm finding quite hot in here. So if anybody wants to leave, you're very welcome to -- and these lights are really -- can we do anything about the lighting?

Stephen, it's Paul from Investec. Can you just talk about, I guess, R&D and innovation between -- if I'm going to get rightly very excited about the solutions business. But can you just talk about the future growth in JOBY as well, new products coming there. And you've got to say, very, very positive stories. How do they fight for capital when they come to speak to you.

So how do we...

You got 2 things that you're trying to grow very quickly. And there is limited ...

So that's a big strategic question. So yes, right now, until quite recently, we have been investing -- allocating our capital in 2 main areas. One has been in Creative Solutions, mainly through R&D but also through acquisition of Lightstream. And then the other one has been in Media Solutions, where we've gone after this content creation opportunity with Savage and Audix. Can we go on like that forever? No, I don't think we can. We've got a bit of a dual strategy. Now at the moment, it's a fantastic problem to have. We have to decide where we will allocate more of our resources. We've been investing a huge amount in created solutions. So more R&D spend in Credit Solutions and the other 2 divisions put together by a long way. Will we continue to do that forever? No, probably not. Right now, if I could make acquisitions, I would make acquisitions in the Media Solutions area. So Savage and Audix, we've just done that. We spent $100 million doing that because they are high returns. We know the market so well. We combine these businesses at, frankly, multiples are much lower than in the Creative Solutions area. So we have to make some decisions. And right now, there are no major decisions to be made, but at some point, we're going to have to decide where we focus our resources. Any more questions?

[ Tom Fraine from Shore Capital ]. Just a concern that's been raised by [ nonholders ] -- is the potential for the content creation market to actually decelerate after a period of very strong growth. How do you assess that risk given that potentially people are going back to the office, more countries coming out of lockdown, and there's potentially less scope for people to spend time watching videos?

I am hugely confident that the content creation market is not going to slow down. So if you look at -- let's remember, it's not about how many people are watching Netflix at home during the lockdown or whatever. It's about the professionals making new content. So it's about how many vloggers and influencers are there out there? How many -- how much investment is going in by the subscription channels. Clearly, Netflix have lost a bit of share, but no surprise. Look at the companies that have come into that area because they see a massive opportunity to grow their business, Disney, Apple, Amazon, it's a very, very exciting place to be. So the investment -- everybody in the business believes that investment is going to grow at 25%, something like that. So very confident about that. I don't think it's very likely that we're all going to suddenly stop watching TikTok. All the younger people are going to stop watching TikTok. So I'm hugely confident about the content creation market. The only bit of our business that I'd be worried about at the moment is the 10%, which you could call -- I mean, it's probably less than that, [indiscernible] just consumer, which might be affected by a slowdown in consumer spending. And so we will see a bit of that. So particularly around travel, we saw people not traveling so much. And so photographic bags weren't quite so good. That seems to have bottomed out. So and we're not particularly exposed to that trend.

Stephen, John Lee. Could you just give us an indication of where Videndum is in the global context? In other words, are there any other Videndums or similar companies worldwide? And linked to that, what are you doing to make global investors more aware of what is obviously a very special company.

Yes. Great question. So first of all, in terms of, are there any other Videndums out there? No, they're not. We have a -- we are very niche, but we are very global. So you saw Marco's video of the people that use our product in every country around the world. So you go to any country and -- and so I'm so proud of running this business, you go to any country, and you will see our products being used for content creation, broadcasting and so on. So there is no one else around like us. There is a company in Japan called [indiscernible]who are quite strong in Japan. -- but actually, we're stronger than them. There are some other companies. There's a company called Miller in the U.S. who are quite strongly lighting, but we're stronger than that, and we're getting stronger and stronger. So there's no one like us. And so, no we don't have a big global competitor. How do we get more global investors. That's a challenge at the moment. We are trying to -- now we feel so strong about what we're doing and this will be the first step in trying to go out and find more investors, particularly in the U.S. And so hopefully, we -- I don't know -- I'd appreciate feedback on what all this is like. I know it's gone over time, but hopefully, it's been effective. We will use this story with investors, particularly in the U.S. because I think we're -- you know what I believe, I feel we're very undervalued and not loved as much as we should be. And we want to go out and put that right. Okay. I'm going to call it a day because I think we've all said. So thank you very much. Pleased to come out. I think there may be alcohol -- that would certainly help me. And thank you very much, everybody, for coming.