Business transformation and Q4 2024 Free Cashflow

VISTA GROUP INTERNATIONAL LTD, SHED 12, CITY WORKS DEPOT, 90 WELLESLEY STREET WEST, AUCKLAND 1010, NZ
MARKET ANNOUNCEMENT
6 July 2023, Vista Group International Ltd, Auckland, New Zealand

Business transformation to accelerate strategy and Q4 2024 free cashflow
Vista Group International Limited (NZX & ASX:VGL) today announced that it has commenced an
organisational transformation to support its vision and strategy, drive greater client alignment, and
deliver improved financial performance. The transformation will bring together Vista Group’s business
brands under a unified business model, supported by a global senior leadership team. The reprofiling
of its capital expenditure will make Vista Group free cashflow positive during Q4 2024 – a year earlier
than previous guidance.
Stuart Dickinson, Vista Group CEO, said: “Since starting as CEO, we’ve met and talked to many of our
global clients, investors and employees to understand what makes Vista Group unique, and also the
areas where there is room for improvement. From these conversations we can see an opportunity to
build a more connected business that continues to keep the client at the centre of everything we do,
and also accelerates our growth as a global tech company. To deliver this successfully and cost
effectively for our clients, we need to better integrate our business, simplify our go-t o-market and
current product focused approach, and transform to a SaaS driven client centric business model.”
The business change will see Vista Group move from the current multiple companies approach to
operate as a single business with segment-based expertise focused on Vista Group’s studio and
cinema clients. “As our clients continue to embrace end-to-end digital transformation, it is vitally
important that we focus on enabling their operational efficiency and delivering a heightened digital
experience for their customers, moviegoers, with connected and innovative platform and product
offerings.” said Dickinson.
As part of the business transformation the streamlining of operations is expected to result in a
reduction in its global workforce of between 6-8 %. The reduction will occur through natural attrition
and a phased, top down, transformation program, expected to be completed by the end of 2023.
As highlighted in the Annual Shareholders’ Meeting in May 2023, Vista Group has also reviewed the
timing of its development capital expenditure for the medium term. Vista Group now expects the
‘capex bump’ outlined in the 2022 Investor Day to be spread over four years rather than the 24
months previously indicated. Total capital expenditure is now expected to be approximately $20m per
year ongoing. This updated, more stable, development program should result in a modest reduction in
the total spend over time and a lower cash consumption in the near term.
Through the organisational changes and the updated capital expenditure program, Vista Group now
expects to be free cashflow positive during the fourth quarter of 2024, twelve months earlier than
previous guidance. Vista Group remains on target to achieve its aspirations of ARR between $175m-
$205m and EBITDA of 15+%, in each case by the end of 2025.
In addition to delivering better client outcomes, these changes are expected to improve shareholder
returns, delivering improved operating cash flow and profitability for Vista Group. Further detail will
be provided as part of Vista Group’s release of its H1 financial results on 25 August and at its US
Investor Day on 13 September.

VISTA GROUP INTERNATIONAL LTD, SHED 12, CITY WORKS DEPOT, 90 WELLESLEY STREET WEST, AUCKLAND 1010, NZ
“These proposed changes will deliver increased role clarity and enable faster execution and decision
making that our people have asked for. We also recognise that in putting together these
organisational changes, we’ve had to make hard decisions that will impact our people. We will support
each impacted team member through the process. We believe these changes are necessary to fulfil
our purpose, secure short and long-term success, and prioritise and focus on delivering world leading
tech solutions to the global film industry.” said Dickinson.
Vista Group remains positioned to enable best in class client centricity, sales, delivery and financial
performance for film and cinema industry clients.
Authorised for release by Vista Group’s Board of Directors.

For further information please contact:

Matt Cawte
Chief Financial Officer
Vista Group International Limited
Contact: +64 9 984 4570

Kelvin Preston
Group General Counsel & Company Secretary
Vista Group International Limited
Contact: +64 9 984 4570