Vista Group Investor Day Presentation — 14 September, 2023

good good morning everyone hey um thank you very much for for uh braving LA traffic certainly new experience for me fortunately at qu to 6 this morning there wasn't so much uh but um please uh grab some food and some drinks and we'll we'll get started we'll get started as soon as I can there we go okay so um everyone Welcome to our uh La investor update my name's Matthew Court I'm a CFO uh for V group really excited to be in La uh it's the first time we've talked to investors for a while uh certainly was a while ago that we held it in vest roacho in the US um but really great to be in LA and so close to Hollywood and what a difference it makes to be be able to talk and have some of the other industry participants um here today as well so the run sheet for today uh two sections we're going to talk a little bit about the industry we're going to hear from Shelley Taylor Who's the Alamo uh chair uh she retired as chief executive last month I believe so probably still feels it in the veins and we've got George Al from Delux uh to talk about the industry so we'll give them a little bit of time talk about their views on their uh where they play in the industry uh and then we'll do a little bit of Q&A sort of panel session I think um Stu will join them for that as well we'll have a little break and and thank them and then we'll just jump into the Vista group section um uh if you want to drink at any time we want some extra food please just uh write it down on the um on the paper in front of you and and press the buzzer and someone will come and sort you out so uh one of the things that I'm super excited about and hopefully you got a little bit of a Vibe strange to be in a movie center at 8:00 in the morning but uh you kind of feel it when you walk into Alamo right and I I don't want to do any spoilers for um for Shelly and I probably can't but I was really excited to be able to book it here because they live and breathe film food and fun it's their um it's their motto and uh I think you will feel the passion in the building and as it would fill up if you stayed to lunch you'd see their enthusiasm for the guest experience as well I just want to play you a little short video that sums them up har and I started the Alamo in 1997 when we set out to build and design our first theater we had certain things we wanted to do what are the things we hate about going to the movie theater let's avoid those and what do we love and let's celebrate [Music] those [Music] [Applause] [Music] [Applause] [Music] oh [Music] [Applause] [Music] let me introduce you to Shelly Taylor the chair of Elo Draft House um Shelley joined uh Alamo in 2020 as chief executive and uh steered them through the pandemic and actually into New Heights which we'll talk about in a second um and is remains chair today so influential across the business um she comes to it from outside Cinema B um having worked with Planet Fitness and spend a a reasonable amount of time with Starbucks including expanding into China so really a total focus on business and I think you'll feel uh from her presentation what guests mean to her so Shelly think you have to do what I just didn't do there we go a lesson for the presenters I think it's on cool if not I project pretty pretty well so I'm not going to um um take you through the pandemic I think we all have PTSD at this point what I will say is that if you had spoken to me on May 1st of 2020 my first day at Alamo if you had asked was I bullish in the industry I would have said I doubt it you know like still it was in a bit of shock of how I got there um uh you know when I decided to join things were looking pretty good 2018 2019 had been some of the best years ever uh for Alamo even though it had been some of our best years 2019 wasn't necessarily a profitable year we had spent 3 years investing opening a ton of theaters and um had projected that we'd come into our lowest cash flow point in the spring of 2020 we had a bunch of new babies new theaters trying to get their legs under them you know but and I will tell you even in 2021 and parts of 2022 I never thought I'd say the words bullish again for this industry but I'm bullish and before I get into showing you and I'm not going to show you a bunch of numbers I know you love that I'm going to share some because I know that's important but I'm going to tell you why I'm bullish and it's about the experience and if anything that the pandemic proved it's that people are not people are social creatures the couch is overrated being out with others is not overrated and that we've now have content again and a reason to come back and we've just had our best summer ever so what makes us special and I think what will change the industry so it doesn't mean that we can sit on our Laurels um you know and I won't name names but the the theaters who are not reinvesting um who are not thinking about the guest experience and now I'm a little bit embarrassed because I see some of the seats in here need some love and I was making notes and and texting people um but who are not making sure that their their auditoriums are clean that your feet don't stick to the floor and that you treat the guests with the AL you know utmost respect you know they they're h the industry and hopefully they're starting to figure it out but those of us that have figured out that the guest is number one we're going to make a difference and we are going to carry the industry and I say that boldly because we are leading the industry we have 20 consecutive months now where Alamo has outpaced the industry and we're outpacing um the recovery of TW against 2019 by about 20% so there's no one on our Tails right now um and so in 20 May of 20 again um and I'm not going to talk to these slides they're beautiful and you can look at them and get a sense of what we do um but what was happening in the industry other than layoffs and all those other things is that people forgot what they were about they forgot the heart and soul of movies create a communal experience for people it's super fun you come in it's democratized you're sitting next to someone you've never met before I had a woman in Barbie like just literally start talking to me and my friend's daughter is like do you know her and I'm like no she's just talking to me um you know so it's this opportunity I I think my shirt must be hitting sorry I'll do this so it's not um irritating but it is an experience for people that they've been missing um and so let's see sorry this distracted me now I forgot where I was going with that statement but at either rate in 2020 when people were like thinking movie theaters were going to die they started scrambling and they started like innovating in what seemed like smart ways so like let's go into Esports let's go into gambling let's figure out how to do all these things and I'm not saying that might be the wrong you know create an arcade or whatever that might not be the wrong channel for some theaters and we did a little bit of that we put up our PID on demand um you know video or website for a while I can tell you we uh we didn't lose money but we didn't make a dollar um so it's literally break even and we we kind of fumbled for that for about three months trying to do things we did Uber Eats all those things that people were panicking rightfully so panicking figuring out how to survive and somewhere around that summer we all sat down and said we are not going to survive and we're definitely not going to thrive if we try to change our business model people are coming to us for a reason and an experience um and as long as we stick to that we're going to get business and so so we did some unimaginable things we came out of bankruptcy and we said okay we're going to reinvest and back in our people we had asked people to take massive pay cuts um the few the handful of people that got to stay on board right we laid off a majority of the 4,000 people who worked for us so those that stayed on board we repay them all of the money that we back owed them and then we turned around we said with the limited cash we have we're going to invest in our in our theaters and so we took our worst looking theaters there was a number of them and we completely renovated them and we now have a schedule and all of our theaters will be renovated over the next couple of years so we're reinvesting back into that experience and making sure that there's recliners and all the good things that people want and all of that's been a message it's been a message to our people it's been a message to our guests that they matter and that the experience is at the heart of it so some of the other things that we did that were important um and again I'm just flipping through some of these fun these fun photos because they are beautiful is we said we do cool things but we've got to get better at it because we have to be more profitable that's the other that's the other kind of problem in this industry is a lot of theaters the margins are low I come from high margin businesses this was a new experience for me and so we said how can we use technology to strip out everything we can from the p&l that won't touch a guest and it won't touch the experience our people have you know so some of the things that we've been working on is like how do you do digital ordering how do you improve like bringing in Revenue um you know through T online ticketing and and things like that and then more importantly looking at like how do you use technology to start to personalize even deeper than we already are because unlike most theaters we do talk to our guests in a way that matter um and I think this might actually show it um our ability to hone in on what people like and provide them messaging around films that they might already know about and want to see and remind them but more importantly our ability to say hey we know you like these movies you're going to want to come see that and that's been important to us because then we can take these movies and we can over index on them so small movies I don't know how many people saw parasite or remember parasite okay at least a handful of you you all need to go look at parasite because if you're in this industry you should know that movie that's a small well was a small Korean film unknown director unknown everything Alamo worked with them and some others did too but particularly us and we got behind that film and we advented it we had special media we had special menus we decorated theaters we did all sorts of things and we turned it into a movie party and people came out to see it and more people came out to see it than was ever expected and we set a tone and we set the the the guest responses that turn that into all of a sudden the mass the mass majority of people wanted to see it and then this the rest of um history becoming the first uh foreign film to win best movie um that's the power right like we we figured out how to do it it's not just us alone though that's the power of understanding your guests and serving them in a way that makes sense um and that's where te uh technology makes a huge difference because you can strip out the non-guest facing uh not you know activities so that you can do more of the things that you're guests want I put this up because I think this is fantastic not just because it's called fantastic Fest but we're the largest genre film festival in the United States were still privately uh owned which is actually a pretty big deal in this industry it's in a couple of weeks in in Austin if you like horror um and all those kinds of genres this is a film festival to come to uh so come on out and see us it's a lot of fun so you know Almo right now is the seven largest circuit um at a mere 39 locations we've got two more coming um in the next couple of months we have a whole about I think we have about seven signed locations are coming over the next couple of years but I say that because we're nothing you know we're a small percent but at 7th we can act like a top three theater um when we get behind film uh this is season pass uh you know our guest said we want to have a pass so we can see a movie every day for one small price it it ranges it's about probably $22 on average depending on your Market but a lot of people come out and people are like how do you make that work economically well you serve great food you know so yeah maybe on the tickets we've worked with Studios of course to work on that margin but we don't make a ton of money but we do make money on frequency and we make it on food and it's really important because we need butts and seats the more people that are sitting in this room the more exciting a movie is so again it's the total experience um you know it's the food it's the fact that we have relationships with um Indies that we have uh you know Indie Distributors Indie filmmakers that that talent and artists love us because we respect their film unlike any other theater our sound our our projection is always topnotch we don't show a movie unless it's perfect um you know so we've built these relationships we think about a movie holistically it's just not a ticket it's not a commodity we do care if your feet stick on the ground uh we do care about when you walk in the door we care about the messaging we're sending to you we care about that experience we love our parties I'll speak to Barbie you've all heard of Barbie so I didn't put slides up here because that felt like cheating um you know when I say we've had 20 consecutive months of leading we're doing that because all the other things that we've we do are great it just let us beat the industry and have the best summer we've ever had because of the things that we've done but even before the last 2 months again we're hitting 85 to 90% of 2019 we're leading the industry in that um and that total experience um I'll pause here for a second because this is Jaws on the water one of the things we love to do is do a Rolling Road Show so where would you like to see jaws but maybe sitting in a you know a floaty tube on the water and oh by the way what you don't know is that we've hired scuba divers who are going to swim under and pull on your feet it might have been a liability issue because I I think we may have caused a few uh near heart attacks um but it's the reason people come to us because they know that we're going to surprise and delight and we're going to do something that's always unexpected um so again you know we've had an incredible uh incredible year these numbers are actually super old at this point I think they're 8 months old um and are are growing um but what's important is that as we look ahead we'll go back to that one most interesting as we look ahead you know we projected it would be a $9 billion year it is we've over indexed we've taken the Lion Share of um of the year we acted more like you know num instead of number seven our year looks like we're number probably five or four which is pretty phenomenal and we expect that to continue um and then as we look at this coming year we think it's a about you know and we're no analysts we have no crystal ball um but our guts like we think it's somewhere around the 9 billion again so we're really excited and even though it's not back to 11 there's plenty of opportunity for the theaters who are really honing in on that guest experience and figuring out how to deliver so I could talk forever but I I promised I would be fast and short um you know and uh share what I could that hope gets you excited because we are um and you know if you haven't been to an Alamo I hope you'll come join us at some point and and see what it's all about thank [Applause] you fantastic sh thank you we might get you back for some questions so you might need that but I'll put it down okay put it down here momentarily uh wonderful thank you um thank you for that that's great uh surprise and Delight um uh anyone not want to go to Jaws on the water okay okay our next presenter is um is George Al uh George works for deluxe Deluxe is a uh like Vista is a supplier to the industry they're in quite a different space uh they're very important in terms of the digital film distribution um George is uh this EVP uh and GM for Cinema worldwide for the group he spent a couple of stints with Deluxe uh interspersed with a short stint with Vista uh involved in in the Max and numero business um which some of you will obviously we have talked to you about um and before that he worked with AKA uh and yeah welcome George floor's yours thank you Matt um you'll have to forgive my nerves a little I'm terrified not of the public speaking but of Jaws despite it being one of my uh favorite alltime movies I still struggle in the shower uh perhaps I watched it too early in life so disappointed to see how many people didn't know what parasite was or a parasite or watch the movie um how many of you have heard of deluxe or know anything about what we do okay well done St you get no points for it nor Matt or or Murray or or or Shelly interesting cuz uh you know we've been around for more than a hundred years now and we're kind of in the middle of everything Cinema if you like so if you think about where Vista group starts through its booking systems and what it does with the studios and then what it does with exhibitors like Alamo we're kind of in the middle of all of that so um if you look at what we really do and maybe we're a a very well-kept secret given our age and nobody knows what we do we've been in the middle of every kind of major technological advancement in film over the past 100 years we've had 10 Academy Awards um you know recognizing what we've done in our scientific achievements uh I I must stress they are Technical and scientific achievements we don't do anything creative and I'll talk a little bit more about what we actually do in a moment but through our history what we've done is we've migrated our entire business from film labs and kind of analog processing to now an entirely digital environment so if you think about Cinema what we did is we moved from projection of film analog to digital projection but the film theaters remain very very similar in terms of look and feel and how they operate we as a business made that transition from everything being scientists film lab you know chemists through to full digital compression artists and and people looking after huge amounts of data and that looks pretty simple on a timeline on a PowerPoint chart but the reality real ity is is switching 100% of our analog do dollars to digital was actually a massive achievement and it speaks for the trust of our our customers the the tenacity of our teams and you know we we're there're now 100% digital so analog to digital um we've been through that path and then in the ma in the past sort of couple of years it's been more about shifting our platforms and services into the cloud versus that on Prem infrastructure but we can talk about that in a in a moment so from a what do we do and what have we touched right from the very first digital movie through to the most recent movies in theaters Blue Beetle through to the most complex and challenging projects like Avatar way of water we have touched them in in some way and continue to support every major studio and independent distributor we also were very involved in the uh Digital Cinema initiative which was the group that came together to set the standards for Digital Cinema we did a lot of the interoperable testing that made sure that content can play flawlessly in any Cinema anywhere in the world so what do we do um we start where post- production finishes so that's where all the creative things happen with color and look of film and mixing and audio we don't do any of that so we're post post production if you like and the first piece is is localization of that content so kind of AO subject but it encompasses things like translations subtitling dubbing graphical localization often overlooked so title work in each language will look very different because of course it has to be the right character set for that local language and we also do a lot of censorship work too so um a lot of press recently about the little black dress from Oppenheimer um Google it if you don't know what I'm talking about but we put that dress on Florence pew so it could release in other markets so these are the things that don't get included by the the filmmaker if you like from its original Inception because they're largely focused at the original version of the movie and so we get involved in the localization of that for every Market globally so the next stage in the process is mastering so we typically create the original version so that's where the filmmaker will come and sign off that what we've created for the uh version that's going to cinemar represents exactly their intent cuz they work in a um uh a file type that's way too big for it ever to be uh possible to distribute to every theater so we use a compression technology uh agreed by the DCI standard that allows us to make those uh packages uh more friendly for distribution around the world so once we have that OV we then take in all of these incremental assets that include the subtitles the dubbed version different picture for Max so maybe 2D 3D we all kind of they're the obvious ones but aspect ratios light levels we then pull in all the censorship versions we pull in all the graphical localization some of the auxiliary things such as you know shaky chairs um some of the the content that is projected on the side of the walls all of those things go into the mix to create the the many versions of uh of that movie that gets released in theaters and to give you a scale to that we typically create for a large Blockbuster Movie 3 to 400 different versions for for Cinema so this is something that really shifted um since we got rid of film you know there were some Financial constraints in you know how many different types of film print you could create and in digital what we've really seen is an explosion of those versions because you know the possibilities are are largely Limitless um time is one of our biggest challenges because um you know we sit between the release date and that movie getting finished and that window is uh consistently compressed because nobody in the film making world is ever quite done they can always be continue polishing and so that window combined with the version explosion does create some challenges but I'll come on to that in a moment once we've mastered the content we then have to get that to all of the movie theaters around the world or in whichever markets the the movie is releasing so we call that imaginatively distribution and it kind of is what it says on the tin now with that um we use a combination of both hard drive delivery and also um electronic delivery now more so over Broadband networks and it may seem a little strange that you know we've gone through this digital Revolution with projection and we're still shipping boxes to to Cinemas but the reality is is a movie is around 200 250 gig but when you look at the total payload of a movie to a theater with all the different versions it can be at times upwards of a terabyte so in a lot of cases the infrastructure to elegantly deliver that faster than a hard drive is a bit of a challenge but we have 7,000 plus theaters connected to our Broadband Network that is growing I'm very pleased to say Alamo Draft House work with us on that and in most of the major markets we've probably got something like 80% of the is connected uh and the rest are backed up by a hard drive then the last piece of our chain if you like is the the decryption of that content so what the DCI standard allows is for an individual screen at an individual theater to be decrypted to show a specific version at a specific time so the controls over that content playback are uh pretty significant so we have to keep the database of all 230,000 playback devices of exactly where they are and what they are to enable us to decrypt that content in line with the specific booking instructions from the studio so if it's a screener and we were showing it this morning we may have a few hours that literally that key will work for and then when we get to release thankfully the controls are a little less granular and we'll open them for say two weeks but again that depends on exactly what the content owner wants to do with that specific exhibitor circuit orders of magnitude we send about 70 million Keys a year to theaters worldwide so the uh the effort and process around that is quite significant thankfully it isn't all manual and it's systems such as um vista's max booking system where the distributor puts in those booking instructions actually we have apis to it that connect to our keyen platform and allow us to be a little bit more elegant than then we would be trying to manage it over spreadsheet and email so in essence that's what we do it's a technical services kind of process um for me it's super exciting but it isn't the film making finishing kind of creative world so how do we make this this happen what does the magic look like um honestly it's significant size and scale so the reality is the digital world changed everything when we were a film lab um there was a huge amount of uh knowledge and respect for time Windows film was seen as a manufacturing process so if you were late finishing a movie you knew that that would impact your schedule of prints for for different markets so you combine day and dat releasing which is pretty common for everything now plus the version explosion from maybe tens of versions in a print Roy to multiple hundreds time is yeah a big challenge for us so we have shifted a lot of our systems to the cloud so similar to the strategy that that vist is on with his clients and really what we had before that is we went from film labs and analog processes to digital process with a lot of on-prem systems but our capacity at that point was really a function of how many boxes and people we had in a in a facility to create the the different DCPS and outputs so we've shifted a lot of those operations into the cloud which give us a lot more scale I say Limitless that's not strictly true we did break an Amazon data center at one point so but we do have a lot of scale in what we can now create but of course you get bottlenecks one of them being QC so what we call Quality check each one of those versions that we create with the last eyes and ears on it before they go to theaters which means for every one of those versions We have to watch it runtime in one of our theaters which is an exact replica of a movie theater because the point of testing is it has to be on the same infrastructure that audiences enjoy it so it's a combination of really clever technology Cloud scaling and you know horsepower we have a lot of facilities around the world that allow us to replicate the drives in country we have 25 or 26 of our own theaters now so we can do those quality checks and during a a big title you know we're running 24 s to get that uh that those versions created and into the field so on sort of scale mentioning no names the slide might be a little bit of a giveaway but this past Christmas um we actually had to create an entirely new workflow and process to support the significant number of incremental versions that were being created for this movie um the filmmaker is known for really delivering change and innovation in our Market through the the visual presentation of the content and uh he didn't disappoint with Avatar way of water but for us the scale difference was we were looking at around four times the amount of data five times the amount of QC hours and about three times the number of versions that we were created so almost touching a thousand these are huge projects and the only way we get through those is having as I said that great technology but also the the physical horsepower enable and being able to deliver them so where are we going um despite the recent challenges I don't drop the SE bomb anymore um and the current industry challenge is there is no existential risk to cinema like if there were it would be dead we wouldn't be sat here this would be an empty building so we still maintain that the future is very positive for the recovery or ongoing recovery of our industry but the reality is we transitioned to digital projection over a decade ago and stopped so the projection booth is digital but most of the processes from booking a movie to Distributing it and a lot of the Nuance that sits between actually mirror that of the the kind of analog workflow we had with with film and in some cases those limitations only existed because of physical film but we still work to those limitations in a digital world so certainly for me and I know I can speak on behalf of deluxe and also our our friends at Vista the really exciting opportunity is how do we take Cinema from digital projection to actually operating a truly digital world and I think that's the the journey we have a ahead of ourselves and uh I'm sure that you'll hear from Vista what they're doing for their part in it but as the industry comes together I really do think that we can continue to innovate and evolve you know this format of watching movies and shared experience will enjoy time we know that it's a social experience that that everybody enjoys and we will drive forward with technology so hopefully that's uh an interesting glimpse into what we do in the middle of this uh wonderful creative process thank you I will uh thank you very much um yeah uh two very different uh views of the industry uh obviously one which we're very familiar with because we sit in these seats every now and then and and look at the look at the screen but how it gets there is equally uh important um and kind of a a fantastic Challenge and from a scale perspective Deluxe is actually a pretty sizable business too so if I'm if I can get you both to to to join me up here uh briefly um we'll take some questions so um if any of and Stu if Stu wants to join us too we might get it in case there's any controversial uh you know Vista points of view which need to be protected we'll get St to to join us but we'll save the Vista questions towards the end if that's right so yeah so um fire away Phil uh wait a sec actually sorry don't fire away let me bring up a mic for you thank thanks Matt um yeah just driving on the way here this morning we did go past a pickup line which was the wrer strike so i' just be interested in kind of your kind of local perspective on you know what we think the resolution what be it's obviously been going on for quite a while now so and also potential impact on on your business businesses yeah I'm I'm happy to uh to take that one to to start I I don't think I'm going to comment on the wrongs or rights of the the strike on on either side of it what I would say is it's the interest of the industry and everybody and all the associated businesses that we get to a resolution uh quickly um and fingers crossed that that happens in terms of the impact on theatrical it at this point has been significantly less than it has been in TV so um in addition to doing all the wonderful things we do in in in cinema we also do similar for like the high-end episodic and uh you know other short form content and of course the impact of the the strike starting with writers uh was you pretty much immediate in terms of what what happened to the the workflow there or or the pipeline if you like so that was definitely a pause with theatrical we have seen a few title moves out of 2024 into sorry out of 23 into 24 um the probably the biggest most well publicized one of those was um what I would say is June but apparently it's Dune that's my englishness um but we still have a pretty healthy slate for the rest of this year um and I know that the studios are wrestling with that um you know can we release a movie without the support of the actors to get involved in the marketing and I think in the majority of cases they're saying yeah it may not be ideal but you know people are coming to the theaters um Barbie and Oppenheimer combined showed that there's huge audience demand for movies and unlike Co we're not seeing a you know there's going to be no content available there's plenty of content already captured that we'll play in our Cinemas even if the strike carries on for the next period and thankfully also for film because the the film making process is a little longer than it is for the episodic content we can catch back up and I'm I'm confident that the um and like you I'm On Studio lots a lot or going past the picket lines they're ghost towns at the moment from a production perspective because nothing's happening I'm uh I'm very confident they will be extremely busy catching up so that pipeline of content gives us a healthy 202 for and into 2025 so I think theatrically it is far from ideal but it's certainly not uh an existential threat to to any of the instances and of course you know thanks to Taylor right Taylor Swift who um is releasing uh a little concert that apparently was quite popular I mean the greatest pre-sales of all time people want to go to the cinema not just for theatrical typical movies but these other events so we will continue to evolve and and find ways to to plug those gaps uh just a quick follow on I suppose if we get if the strike goes into the fourth quarter you know is there a point in time where you know like Disney or or Warners you know do you get to a point where it's too late to kind of push any movies back into next year or yeah look I'm I you know I don't do slating of of movies but there's going to be a a juggling act right and I think if you look at a uh a movie um I know what's opening in November say take Aquaman right that's in that slot for a very specific reason and time there was that wasn't an accident right the the studio planning teams and and distribution groups put a lot of thought into when to release a movie so it isn't as simple as oh we don't have talent available to Market it let's just move it to next year because they're all planning more than 12 months out anyway so I suspect what we'll see is a continuation of releases because they're on a good date they're on that date that that movie is is meant meant to be on so I you know um Wonka might be another example that's a Christmas movie it's is unlikely to move so I don't think we see a wholesale shifting into 2024 and then we have this bumper huge you know slate although what I would say is you know since uh since we're reemerging you know the total number of releases is slightly surpressed uh from what it was back in 2019 so there is a little bit more flexibility in some of the the slates for for incremental content but I think we'll also see new and different content filling those gaps do you think you also potentially get a benefit if there's you know not so much on Netflix or you know neon or Hulu or anything that people go to the movies or no I I don't think so I've always said that platforms not the enemy of theatrical they're hugely complimentary and you know we see it with all of the the platforms and Netflix doesn't necessarily have a a wide distribution strategy for its its movie content um but they still do releasing and screeners because they know it builds demand so I actually see that the two things work in a a compliment way you know potentially there's some marginal increase well there's nothing at home to watch tonight let's go out to movie theater but I don't think that's a significant impact there we go um I don't know I think there's one thing that people forget is that sometimes the Slate can be really crowded um and so having a few movies drop and especially after a summer where people's appetite like all those eyeballs they didn't just go to Barbie and Oppenheimer they also turned around and were looking on the web of like what's next and then they saw the trailer so I actually think that there's just a little bit more room and then there's like some really great Indie Distributors like a24 that have some fabulous movies coming out this this fall and winter that people are going to be out for so I think we've got a good slate and I just think it looks a little different and movie theaters have learned how to deal um you know we've gotten out of the 90day windows that was a blessing um I may be the only one in the industry saying that um getting a movie out of your theater is actually the hardest thing to do getting a movie in your theater is easy so if it's not selling the theat you know the studios don't care they want you to keep the movie um you know so now that we're in a more reasonable window period which is about 35 to 45 days and we have slates it gives us the theaters who are creating experience an opportunity to really bring those movies out and let them shine yeah and I think that's a a great point on congestion of the Slate I would argue that mission impossible would have benefited from a couple more weeks in theater from a box office sense you know that's an example of where things did get a little a little crowded so I think with some uh continuation of intelligent planning from a box office perspective you know we should be good thanks for the um discussion morning it's been really interesting um I just want for Shelly um so can you just tell us what version of vist what kind of version of Vista you're on and then when you look at sort of the V Cloud offering you from your perspective as an operator you know what kind of benefit I'm sure Matt and St have been talking to about this what kind of benefits you could see uh from that kind of product and then when you think about transformation or when when you might move move to their kind of products you know what what would be the Catalyst if you like actually I'm going to have Danny come up because she may be better so you're talking to a non technology person I love it for what it can do um but I'm not always the best but from a technology and Vista perspective right um there's a number of different ways I'll let Danny come up she's our CTO uh yeah the the brains of the company I'm just the face oh so excuse me excuse me I was back there enjoying some breakfast tacos could you repeat the question you said what version of Vista we're on yeah you've have you got the on premise Vision yes we have the on- premise version but we also leverage other tools like movio and some of the other interconnected pieces I could give you a sort of hint of the future right without any promises necessarily um but we're looking at um it like stepping away from Vista and alamoo in our relationship for a moment but we're looking at the future of this industry exhibition specifically speically I've only been here one year and it's kind of surprising in that how forward this industry is in technology but also how far behind it is from Silicon Valley and so Partners like Vista and Alamo and others are trying to push that envelope and so with Vista and all the API development that do that they're doing we're strongly looking at ways that we can leverage things like that and into loyalty did that answer your question well um in terms of like when let's say that you did decide to move to full Cloud at one what just what would be the barrier at the moment what would cause you to not want to move to us to Cloud at the moment would it be you know um speed of 42 venues 42 V yeah that's the only that's the only barrier right now um I'm I'm very I'm a huge um proponent of cloud my background is pure Cloud architecture so I think it is enormously beneficial for every everyone to move to the cloud for varying reasons but for us it's it's pretty much just time and that's part of our plan would you mind elaborating a little bit on the reasons like what would well the the one of the things so reason that like I showed up and other people showed up to Alamo is that we built 42 snowflakes so you know every like the technology everything in every single theater is different so we're struggling internally with how do we just get all our theaters to a certain base to be able to move forward um because we can't even get internet into some of our buildings in an effective way I mean truthfully and please you know people at home probably be embarrassed but you know that is that is the struggle of the smaller theaters who have built grown from a mom and pop perspective okay thanks and then just I guess during the pandemic and you we didn't want to go back there know to that dark place too much but how you know when you think about the operation side of Elmo you you we did hear a lot about you know teams being compressed quite quite meaningfully during that period have you kind of ramped back up the on the on the tech side have you rent back up the Staffing levels to sort of where it was or you a bit leaner now than you used to be yeah actually we were leaner for a while but bringing in Danny we' started to invest heavily again one of the things that we've changed from is it was it had to be built in house um otherwise we didn't do it and that's a mind shift that we've made of we'd rather go out and get Best in Class um and work with Best in Class and you know we might do a little of the lipstick and and the outer wrappings but we're not going to be Building Technology but we are we are investing in the right infrastructure that we can go do that so we have to solve our in-house problems um and then have the right team that can work with people like Vista and in in you know interface in an effective way because we've been ineffective in that um in in all regards even as simple as like the tools that we use for recruiting um was a difficult technology application and that shouldn't have been so that's been the journey we've been on the past few years of getting all of that right size so that we can then go forward and and act like most companies which is we want to be great at giving great experiences and and have a technology team that's smart and forward thinking and knows what we want to do from a strategy perspective but go out and find those Partners like Vista that help us grow where we don't have to invest in that type of thinking and Danny is good at all that but just thank you yes just not need we don't want it to be our yeah gotta um I'm sorry just with with L in the room here um when you look at some of the your bigger competitors who kind of do it themselves versus say a provid like Vista um you know I'm just interested in how how you think about technology and and whether you you know we have seen some Cinemas chains do that in the past whether they would that would ever be on the cards or you think hey look a spe a specialist it provider that's the way way to go that makes a lot more sense to you yeah I think that depends on the theater right I'm a I am a deep technologist not to make the conversation all about me um but I I come from um a very firm software engineering background I am not scared of just hiring a sea of developers and building all this stuff myself that said it's not right for Alamo right I think I think it makes more sense for us to find partners that we don't have to you know ramp up our um FTE count just to deliver on great software we want to move quickly and move with the industry but also like retain some in-house knowledge that sort of answer your question without answering it than okay hi couple question questions um are you able to work out whether you know the let's say the bounce back in the industry reflects pent up demand or or the underlying demand in the industry just any observations there and then secondly um you I was interested in your comments around you needing to change the model to be profitable you things like food for those who can't evolve you know does the profitability industry still remain a challenge and if that sees you people exit the industry what does what does that mean um you know in terms of you people going to the movies yeah I I can't remember your first question so I'll start with the second um you know I think from a profitable profitability perspective um you know demand you can't save your way to success I mean that's always the first and foremost so you've got to get people you've got to create a compelling reason to bring people in the door that's why we've really looked at like you know we we were already amazing at adventising and creating those movie parties and experiences for people we just got smart how to do that at scale so one of the most beautiful things is when I took the job I literally had a friend say to me why the hell would you be the CEO of a single movie theater and I was like what are you talking about Alamo at the time we had 42 locations we closed a couple and there they only knew their location in San Francisco um and didn't realize we're a chain you know so the ability to build a business that is has that platform and underlying um ability to be at scale but show up and feel independent and like it's just your community theater there's a balance there I think all theaters have to find that I think that's where the big ones struggle they they have a programming point of view period like they're going to build 20 auditoriums and they're going to show every movie well we don't we build fewer auditoriums on average we have about eight um that's what makes it difficult because we can't show every film so if we get 20 good films in a in a month that's really tough um but at the same point we focused on having a point of view showing great film and filling the seats and then in the inside of the p&l we've looked at things like Labor uh We've looked at um you know our accounting like all the different things that that can impact our contracts um so I think that's been important and I I suspect the industry's been doing that I'd also say at times the industry was a bit bullish on real estate and I mean the prices that they pay um you know I again I from different Industries but I was a little flabbergasted by our leases and Co was a great opportunity to clean those up and so I think people that are going to continue to grow and build are looking differently at those hard costs very smartly of what size theater should you build um first and foremost um and then secondly getting the right leases uh so you know it's all those types of things and I hate to be sort of all over the board there is no Silver Bullet but there is I think opportunity and we're going to see it and you know take the the main three and you you hear in the news I don't want to start pointing them out but they're they're clearly doing some of those activities and and didn't go far enough and are going to do more of them um they've got to so I do think that there's a a way to be extremely profitable we made more money this year you know bottom line than we've made in any year and yet we're still you know 15ish per behind 2019 um so I'm confident that there's ways to to make money um and not dute you know dilute the the guest experience and I apologize whatever your other question was I've forgotten the first question was just about pent up demand you whether success this year is just the fact that we haven't been able to go to the movies and you whether there's any way of measuring you know the underlying Demand versus what you think you the pinup could have been yeah that that is such an incredibly hard question um we've got all sorts of data and you know how you still that to get to an answer but what I will speak to in the way that we think about it at Alamo is there were a couple of movies that came out this year called one called past lives so small independent film um and we over indexed by over 400% on that movie so basically we were able to sell out every single seat you know in the in the theaters that we're actually able to sell it um so what we see is that when there's good content and we see a slate that's fabulous right now we're excited we don't look at it with a with Dread in our hearts um we did in 20 and 21 um and there were some good films but they just weren't coming you know we weren't getting anything uh we see a fabulous slate and we know that when there's good movies and you're a good theater focused on your guest that there's plenty of demand um and then again I'll cheat but Barbie and opener wasn't a like it's not a fluke and I think people are thinking like it was a cold cultural shift people are still talking about both movies but particularly Barbie right and they're talking about it in the theater once it hits the home people won't be talking about a movie like that and that has shifted how people experience movie theaters and it brought out young audiences you know and I like again I'm not married I have a partner he has two children that are in high school and they're talking about movies in a way that I've never heard and they don't want to stay at home they're not saying well let's sit home tonight they're saying hey can you take us to the movie theater and I'm like yeah yeah actually I can and you know their friends are asking to go too so I think there's been a cultural shift um you know and it was good content it helped but people are fed up and they're ready for something different so again we've got lots of data you can look different ways but our gut says and the data that we see in our sales are saying you know there's there's no end to this if we do it right um you know because the vehicles don't matter like people are going to do all the cont you know there's going to be a ton of ways to absorb content and and consume it it's just how you honor that that vehicle and I think we're back I think people have started to figure out how to operate theaters again that sounded arrogant I'm sorry did not did not mean to be hey look guys s sorry we're going to have to call close to questions now we could go on for quite some time uh and you guys aren't the main show yeah you're the you're the show you're the pre-show the but we really appreciate um you're up today and uh giving a message about the industry so um thank you very much for your time uh we got a little special gift for you thank you very much but um like uh please um show your thanks for sh and George I we just take a two- minute two- minute break uh just for a sec while we um our guests leave uh and we'll get in on with the main show good morning uh we're going to get we're going to get going with the next part of the story um as I start I'd just like to introduce Mari holdway he's one of our uh board members and was one of the Vista group Founders so we'll give him a clap he's uh been an integral part of the team right from the start and um certainly was involved and continues to be involved D um in a very big way with Vista group and and shaping some of our thinking as a board members so really appreciate you being here and thank you for your support um I'll go through the uh the starting uh important notice just to make sure that we've got we've got that in the Stream as well uh I am going to talk a lot about uh our business and hopefully uh provide an opportunity to answer any questions um you've got as well so as I get going um we're here today because really I want to commun communicate and convince you that we are more than just a software business more than just a software business selling maintenance to the cinema industry I want to convince you that we are truly valuable to our clients when we connect the industry and power the movie go experience through this presentation I'm going to show you how we do that but our approach is based around a really simple formula we believe in Three core things the first is that the film industry is vibrant and I think we've heard a lot about that this morning from shy and George as they talked about based on their industry experience and what they see going how vibrant it really is we also believe that an AI enabled Cloud technology will power stronger margins and performance both for our clients and also for Vista group and that we believe also finally believe that an ecosystem approach enables client inspired Innovation and speed to Market we get to the end outcome significantly faster we believe that these three things are unique and add value to our clients and also create value for us as Vista group if I start with the industry and talking about the box office so at 119% of 2022 our view is that clients are making good money and in good health it looks to set to continue with production and our our belief is that the industry is really working together to create a vibrant future who would have expected the bonheim phenomenon when I looked back at our November 22 investor presentation and we had the Slate sitting up on the screen uh Barbie was not actually one of the movies uh that we put there um so uh really uh really phenomenal outcome the admissions from National Cinema day that's recently happened have proved also that the industry is continuing to learn and grow from last year's initial success and then with Taylor Swift uh and the era movie coming out something that we haven't heard a lot about yet in New Zealand but it's certainly a phenomenal in the US uh we believe that we're seeing how the industry is really performing in a dynamic and responsive way we've also really now started to understand the impact of theatrical release and why it's the only way to monetize content and it creates hype and significant and helps the overall film return streamers are now also getting into the Act and the opportunity to see um their returns grow and create hype for their subscribers they also Drive award par participation with releases like um sound of freedom from Angel Studio we're also seeing brand new distribution models into the industry with different ways that Distributors and ultimately exhibitors are seeking to monetize content and make money through the value chain this is all exciting and for us it creates a really powerful um convincing uh view uh around the future of the industry but what about those strikes and we talked about this brief briefly and as I pre previously said I I think in umbrella and sunscreen is always important um like both George and Shelly said collectively we've got to look forward to getting through this as quickly as possible but we're starting to see now the power of more independent deals get done and and Distributors like a24 continue to uh work continue to make deals to enable them to keep producing and putting content into the market one thing we do know though is that the industry is we serve as highly resilient its ability to weather storms such as the shutdown through Co and its responsiveness to Opportunities such as Taylor Swift fills me with great confidence that the industry will continue to rebound and adapt into the future I think we're in good shape with adaption and change in mind our clients are continuing to innovate whether or not it is in distribution with what we did with Angel Studios or or for our exhibition clients for the exhibitors the evidence is clear that consumers and guests are looking for an out of home experience differentiated from being at home something different they want the screen and the sounds plus seats plus the value ads like we have experienced this morning at Alamo they want the complete package from what we call from the movie to the movie and more a great examp example is also Oppenheimer which was filmed in IMAX seeing this film in cinema is the only way to really experience this movie in a large immersive format a totally great experience and I would really recommend it if you haven't had the opportunity to see it throughout this presentation we'll talk more about how Vista group Solutions enable exhibitors and take advantage of these Trends and monetization opportunities in addition to pre premiumization exhibitors are also creating momentum and investment across other key trends loyalty and engagement the movie and more and then finally towards operating efficiency um and really driving across optimization and costs we believe that these five core Trends are real drivers across the entire industry and across the investment that's going into the industry across all of them also technology is a key enabler Vista group connected technology is designed to seamlessly integrate and support exhibitors to benefit from these areas to take advantage of these Trends so the combination of content market trends and and the overall excitement about coming out is creating significant momentum across the our exhibition clients we're EXC excited to support our clients and set them up to benefit in the future so a key part of how we do that is in the solutions that we make how we build and really support the industry to take advantage of these Trends I want to talk through that now how the Vista group technology and solutions are coming together to enable the exhibitors to capture these our connected ecosystem supports the entire industry value chain from Studio to movie guy our role is to support the dynamic industry we participate in and enable it our Solutions serve to meet that need for example where traditionally an invoice might be sent between a distributor and an exhibitor from one Vista group product to another we have been asked to connect these process together to support overall industry efficiency our exhibition Focus Solutions are becoming more connected also to ensure that our clients benefit from the ongoing digitization of the industry and improve efficiency a great example of this is our one view digital assistant which will be commercially available later this month it utilizes Cinema management loyalty box office reporting and performance data all in one place to the benefit of senior exhibition leaders a key plank in our strategy is Vista Cloud platform and it's support for our exhibition clients I want to talk now in more detail around how we are doing this and bringing this platform to life Vista Cloud platform is our next generation of movie go and Enterprise cinema management software it's reassuringly familiar yet radically Superior V Cloud platform propels exhibitors into the future Vis Cloud platform is designed around a number of components that address the key business drivers within our industry it empowers exhibitors to deliver Great Value and create operational efficiency by combining Decades of our on premise software capability with the our power and the experience of of an AI enable SAS platform we know that each exhibitor is at a different point in their journey across both their business recovery the market dynamics that they operate in and their current technology landscape exhibitors are making different Journey entry points based on a huge number of drivers all of them are immediate benefits as they make the transition initially it may not make sense for Vis for a exhibit a running Vista to adopt Vista digital they may be happy with their current website and app however the countdown has already started to a time when they decide to invest in new digital channels or perhaps An Occurrence of their infrastructure not finding a great outcome as well every Cinema's journey to digital will be different but the time ticks on what we know as a impending wave We Believe that whatever the exhibit's path to the Future V Cloud platform is essential how they enter it we're less concerned about the journey that they're on once they get there and the value that we can add is the important part of the process we've designed the platform and the journey with these thoughts in mind whatever the situation the core is foundational it creates the stepping stone and enables Legacy endpoints and continued C Cinema operations exhibitors then choose the capabilities that they need knowing that overall the journey to the platform is underway and future proofed as I said earlier how they enter the process and the solution doesn't matter enabled through the core it's all about creating value for the individual exhibitor uh and their business as we go through that process so now now let me start and focus on the core the core underpins all aspects of Vista Cloud platform allowing exhibitors to move faster with SH footing at every step of the way it's got exceptional reliability and performance Enterprise grade security and compliance rapid extensibility continuous innovation and best in Cloud support Best in Class support Vista Cloud platform begins the process of transferring workload and responsibility from the exhibitor to Vista group enabling them to free up time to focus on improving business operations and guest experiences rather than it support and maintenance a key challenge in the industry today is the proliferation of endpoints aging infrastructure and the ability for all but the largest exhibitors to invest in the level of cyber security and resilience required fist Cloud platform is designed with security in mind with a cyber first approach we are enabling clients to take the benefits across both operations and platform scap scalability data and our investment in security and compliance whether or not it is sock to compliance overall cyber posture or aligning to ESG based Frameworks Vista group is working to safeguard and future proof our exhibitor business operations Beyond The Core enabling realtime decision making across geographically dispersed operations is a key challenge for the industry in addition to the ability to surface information the right time has also in many cases remained elusive Vista Cloud platform solves these challenges for operations and Reporting planning teams with our Horizon and one view Solutions Horizon is our circuit wide full Cloud full fully scalable data warehouse with quality data data made available and seconds across both Vista group and also third party products and one view with data from across our platform is our in one mobile digital system that provides exhibition Leaders with realtime movie movie goer theater and marketer insights it really is for an exhibition sea Lev member a cinema in their pocket knowledge of show let me start that again knowledge of soldout houses and shows is known at Cinema level but not always at head office yet the film team responsible for for show scheduling is invariably head office based over the opening weekend of bararan himer a cinema exhibition client with approximately 500 screens had more than 720 future sessions with at least 75 perits already sold out Horizon and one view can Surface and alert sold out or zero ticket data to head off a staff this allows significant Revenue up uplift opportunities not all of the show times are watched as closely as Taylor Swifts were but a soldout show can happen anytime across a circuit Cinemas using one View and seeing the information across their circuit will sell more tickets our digital connectivity and API capabilities enable digital ticketing and movy go experiences they scale for Blockbuster moments without requiring exhibitors to design for these burst and oneoff events the digital connectivity provides modern apis proactive scaling and a personalization engine and is the underpinnings to Vista loyalty in addition our MX film solution solution provides Studio approved media and a Content delivery Network also hosting capable of hosting a client's own content as you heard from George this morning with the explosion of versions and content options this is a key challenge for clients to manage most digital technology does not scale horizontal horizontally Vista digital does traditional exhibitors have had to provision for Peak capacity and at considerable expense and ongoing maintenance our team and solution actively plans horizontal scaling for Peak ticketing and visted digital Auto scales with new nodes if larger volume is received this improves performance during Peak load and removes or reduces the need for ongoing digital queuing systems that many organizations operate today movie gos visiting powered by digital Vista digital sites aren't tempted to visit competition to to snatch up fast moving tickets again we know Cinemas powered by Vista digital sell more tickets Beyond enabling scalable and digital Tech transactions movieo engagement is a key pursuit of all exhibitors as we heard from Shelly this morning it's what really makes Alamo Draft House different the ambition is to drive incremental returns and boo boost movie go retention with tailored interfaces Communications and offers this is all at the heart of the solutions we provide movq enables digital data analytics and campaign management and our lumos CH channels enable seamless and integrated web app kiosk and order from front of house experience and finally as many of you experienced with your invites yesterday a living ticket solution is designed to create the experience and then continue to update that that experience as you actually attend the cinema creating value is important and as part of a recent study with a uk-based client a test group of loyalty members was sent consistent T cons consistent targeted email campaigns using moio's campaign management solution the findings were then measured against a control group of loyalty members who did not receive those Communications among the test group the frequency of visits to the ex to this exhibit Rose by 5.4% and there was a 6.9% uplift in conversion rate of movie goers these results produced an uplift of point of 69 C or p actually in this case per movie goer which was a total revenue of £ 690,000 per million movie goers contracted so we know that when you work with a loyalty solution like movio you get the right results as Kristoff the managing director from clex says the process to achieve a premium movie goar experience has been significantly streamlined as has our ability to understand who is visiting us and and why with cinemar EQ our clients get machine learning Dynamic content and customizable Omni channel to enable them to get to their movie goers faster in addition to Great experiences the Quest for operational and cost efficiency is integral into everything our exhibitors do the operational capabilities in Vista Cloud platform are designed to support guest service across the cinema and operations across across the circuit head office by simplifying our user experience and enabling self-service we provide tools both in cinema and in the shopping mall to support and upskill a relatively transient Workforce getting them to the moment of truth with the movie goer faster with the desire to reduce labor costs and the pivot towards experiential Service delivery models clients like path in France use Vista technology at self at Connected self-service gates to improve movie go flow at peak times reduce staff assignments and and supervision and enable the staff to concentrate on really driving guest experiences rather than the administration of checking tickets and selling candy this is just one example of how clients can leverage our connected platform form to innovate and deliver unique and operational guest experiences we are embedding AI across all of our Solutions but for this conversation I'll just focus on a couple of areas where we see lots of opportunities for movie goer engagement our propensity algorithm calculates the likelihood of people waiting to see a movie based on their calculated individual tastes similar similarly the algorithm Al calculates how similar two movies are based on their respective audiences and their overlap by combining these two things together we can predict what campaigns and create campaigns that deliver targeted results but this is not all using AI we can actually go a step further and automate email and message copy creation and the exhibitor's brand tone and at an individual message level enabling hyper targeting a cross operational excellence our smart scheduling uh algorithms optimized in schedule show times enabling exhibitors to maximize Revenue in addition our heuristic matching capability allows us to match film and Cinema to actual location based on audience and um likely audience uh attendance trends finding the needle and the proverbial data Hast is a benefit of a connected cloud-based solution zonal seating which enables different pricing for the same seating type based on the popularity of the location and premium seating which is a search age applied for targeted seats like a recliner are not new to Vista software but by combining Ai and big data we are prototyping the ability for an exhibitor to based on the box office offer the potential of movie and seating utilization optimized in real time and the ability to swell or Shrink those zones on an ongoing basis this is a really exciting opportunity to maximize Revenue as pre-sales start to roll in for a movie the ability to actually drive yield as the show is starting to be booked as I said earlier the adoption of V cloud platform by exhibitors will vary in terms of how they actually enter the process by designing the journey in a progressive way and enabling our clients to move at their own pace we can continue to create value for them at each step regardless of where they start we know that the end point and the value is clear earlier I called out that technology was a key driver in enabling the industry trends each component of Vista Cloud platform supports key industry Trends and enables and is designed to propel our clients into the future Beyond this and across the solutions where they where we serve studio and distribution or exhibition clients every decision we make around our road map and solutions is designed to leverage our core beliefs that an AI enabled Cloud drives stronger margin for our clients and ultimately for Vista group and that through an ecosystem approach and connected Solutions we deliver these benefits across our entire industry value chain we understand the market and the challenges and opportunities with within it but it is not enough for us just to build great Solutions if we do not have a mechanism for Vista group to get in front of our clients to facilitate adoption and run with them efficiently at scale we won't be successful we need a clear strategy business model and Relentless execution to enable it the Vista group formula comes alive with our people and our organization in early Jo July we commenced a process to unify and globalize our business reorganizing the the nature of our client requirement sorry recognizing our client requirements and how the industry value chain is digitizing we are converging our organization from a seven company approach to a much more focused business by moving from this company and brand direct to a single company offering we will be better equipped to serve our clients around the world rather than having a remote and head office function we will also be significantly more responsive to their needs additionally we'll enable better product and roadmap decisions and ultimately we will be more efficient and effective as an organization our people are a key component of the success regularly recognized as an employer of choice and graduate recruitment standing the Vista group team and culture is unique and special as I've been welcomed into Vista group I've really been overcome by the passion experience and dedic of our team as we realign our business to this new structure it is designed to amplify this across the globe rather than having it locked into an individual location or region additionally it creates an opportunity for growth in our people across our solution areas who who are no longer bounded into um particular companies we create Global roles um and as many of you all have seen our recent announcements for the New Vista group global senior leadership team process truly globally focused organization like the process we're going through with our Solutions a connected and aligned organization with sets the business up for success and into an exciting future many of you have made it clear to me that better understanding Vista group progress is important an a SAS model on- premise license sales and site count metrics become less relevant client adoption metrics enable us to better understand where we're at on the journey by understanding our client Journey on we are focusing on Vista digital adoption we understand where clients are at and how they're moving through the process against our 2025 aspirations approximately 40% of our B alive committed or in the Contracting stage for Vista digital with a further 30% that are in active pipeline conversations we are well on track for our aspirations if we then turn this into ARR we get an even clearer view of the momentum we have adjusting for CPI and plan Studio growth we have approximately 36 million of AR to create from our June 23 result through to the 175s minimum aspirations in addition there is another 12 million that is already contracted within this 36 it and it's either committed or embedded in the existing renewals our sales pipeline for the remaining is well understood and with key areas of prioritization our track record based on our ability achieve models puts this well within reach over the coming reporting periods we will continue to up the market on these metrics and progress towards our 2025 aspirations as I said we are well on track Beyond Revenue how we manage and control our costs remains critical to Our Success with our client adoption journey and our engineering deliverables now fully understood we have been able to rephase our capex profile the smoothing of capex spend enables us to use less cash over the Next Period with a slight increase in the outer years the total cap spend remains unchanged in addition to these improvements in the medium term across our product support engineering and support teams we are investigating and piloting ways to further leverage AI technology with the appropriate corporate controls and policies we're experimenting with things like Microsoft's GitHub co-pilot across our engineering team teams to improve the creation of our software and by leveraging IP referenced models we are also investigating how we could use large language models and generative AI to create candidate uh responses to customer support incidents we are early in this journey and focused around responsible Ai and how we use that within the organization but the opportunities for us are significant and for our both for our organization and our clients as we previously communicated we are expecting through transformation to reduce our resource cost base by 6 to 8% or about $10 million annually we believe this cost base will then be right sized for our growth Ambitions and business plan the work we're doing both across our operating costs and CAPIC Bas has enabled us to bring forward our previously communicated free cash flow Target by one year to fourth quarter 2024 in November 2022 we set out clear aspirations around Vista group go growth the key metrics here around AR ebit Dar margin and free cash flow sites and box office influence are important but they are drivers to the key metrics we're excited about the progress we're making with the and with a Relentless focus on execution uh where we have a very clear path forward alongside our transitional aspirations another way of thinking about our business performance is by looking at the level of retail spin that goes through Vista software a box office and Retail aggregate of approximately $50 billion today and growing into the future if we look at Global benchmarked enterprise software companies they typically take a deliver a take rate of between 7 and 3% of this Revenue these provide useful guides as we think about communicating vist group performance into the future we believe that as we work with our clients for each client it will be different around the metrics based on their size and complexity but again our experience tells us there is significant opportunity here we also believe that a fible and responsive pricing approach is the best way to enable this at the core and as we accelerate Vista Cloud platform adoption our ability to Aline with our clients for shared success becomes even more important we want to ensure that we were building for and enabling them to take advantage of the market trends and expansion opportunities a key component of this is how we think about our solution pricing approach with variable Cloud infrastructure and consumption we take on more responsibility across their technology landscape it becomes important too that we are orientated towards a more variable pricing model our clients benefit from this is they pay less through any box office or transaction troughs they also no longer require Blockbuster sized infrastructure at all times Vista group is also aligned and this will create a shared success into the future with a long run view of box office admits and transaction data we believe a transaction or this type of Revenue metric aligns us very well for the future as a world leader in cinema technology if this was our only window into how we were looking at Vista group and how the business case are investing we believe it is strong an epic Mar market share fantastic IC people and knowledge creates a strong competitive Advantage for us our strong and existing annualized recurring revenue and increasingly addressable Market provide powered by a growing industry demand for digital and Technology Solutions is all set us up well in addition Relentless and focused execution will deliver the free cash flow earlier than we had originally anticipated this focus is emboldened in our two core strategies supporting our clients to thrive and expanding and our platform and delivering value but as we we are but also we're not blind to the opportunities that exist Beyond strategy 1 and two today we are allaying the groundwork for how we will successfully deliver strategy 3 which opens up additional opportunities and growth for us at our core we are a technology ology company we've built solutions that are capable of transacting at extraordinary high value high volume at a moment's notice they're available and homologated with payment connectors and tax compliance into over a 100 countries around the world we believe we're the only integrated solution that scales to cover both ticketing concessions and advanced FMB in both point of sale and digital with an integrated customer man management platform we've already followed our customers into advanced into advanced FMB with digital self-service non- Cinema ticketing for out of home entertainment and or and things such as ax throwing bowling and game card integration and general retail including gift and bookstores as many of our clients transform into true family entertainment centers this creates an exciting opportunity for Vista group The the combination of our formula brings exciting Market opportunities for us by following our existing clients further as they grow and expand we create significant opportunities many of our exhibition clients operate today in film and and non-film and Cinema areas and by leveraging our core competencies we can create and and enable compelling workflows today most of these are covered by non Vista group technology these represent significant potential growth in total addressable market for Vista Group by selecting Vista solutions for a broader range of requirements data complexity and Technical overhead is reduced for our clients additionally within our studio and film business we can cover areas beyond our existing solution sets by leveraging experiences our experience in cinema and exhibition the opportunity to create a connected digital ecos ecosystem system with Partners like deluxe is both compelling and create significant value for our clients and the industry these expansion opportunities create the final piece of the Vista group investment business case building on our past our heritage our people and solutions and set us up for an exciting future the industry our Solutions serve is dynamic and con stantly evolving throughout history it has changed endured and adapted and it relies on a simple premise people love to come together for a great story well told and a great location the power of film in cinema is unique technology has an opportunity to help transform and digitize our industry Vista group Solutions are a key part of this process for our exhibition clients in particular more often than not we are their core as we have experienced today with the team from Alamo their service offering and Innovation is everywhere our responsibility is to nurture this to grow our relationships and support and enable our clients Success Through This Focus we will grow alongside our clients and connect the industry and power the movie go experience thank you you to all right all right we're happy to take some questions now if you're youve got any wo hi hang on we'll just get a mic and I've lost one microphone oh you've I think it's control pretty bad yeah project my voice uh I'm just curious about your long-term targets you put out a number there which says 300 million plus you know you talk about a take rate of 7 to 3% average for SAS platforms if I understood it right so that feels a little bit unambitious if you got 50 billion you know midpoint takes you to closer to a billion and you said 100% adoption 25 plus I'm just you know what's the end game here you know 300 plus admittedly it covers quite a wide range but um it just seems a little bit low looking at those numbers which you specifically said we should think about in the context of Vista thank you yeah look um excellent point the 50 billion is the total market so if you take the the global box office plus uh a 50% uplift for food and beverage so it's not not just fist's Market although we serve a a really significant portion of that probably up to a third um and uh what the take rate uh we we give such a large range because it depends on the size of the customer largely but I think um we're pretty comfortable with the with the 300 million Target it's a good it's a good Target for now if we can bust through it uh we certainly would be we'll be doing that our key focus at the moment as as you've seen in terms of the momentum we've got is um as we came out into into the market we set those targets we're now starting to prove that with value and actually drive client conversion um as Danny and Shelley said every client is different in terms of their Journey their Readiness um to adopt and so uh what we want to do over the next period is make sure that we deliver the 2025 targets and aspirations that we've set create the momentum we really believe that the platform is the right answer and um it's been up to us to take advantage of that opportunity and so um we're really comfortable with what's out there at the moment and the focus is on making sure that we just continue to build momentum and demonstrate that um both for our clients and and the trust that they have in us for their Solutions and then also for our investors thank you just one quick uh followup and apologies if this is well known but um you know what do you see as your long-term Target of split between Enterprise cinema and the rest if I put it that way so say 5 years down the line what or 10 years down the line what do you see the opportunity outside of Cinema basically um well I think though the only think we've put out into the market in the 300 million the probably I don't I don't think it'll be far wrong if I said 3/4 of that is in the ciner exhibition space so there's only a little bit too uh there's only a modest contribution in the studio space um we haven't moved to that kind of reporting framework yet but we're going to do that more and more going forward as well I I think what I'm excited about is if you look at our track record and and what I talked about before um Vista group has a history of as our clients move we've moved with them and we've built great solutions for them so we've got a really good understanding of some of these other areas as well and certainly um a number of our clients uh are already exporting those and So within exhibition there's obviously the opportunity to follow them and expand with them within film and Studio we talked about well how could we help connect that and I think there's some really OPP interesting opportunities there as well and then you can take take the thought a step further and think about okay and I talked about at our core what we are as an organization and what we provide and and you can become very excited at that stage but for us at the moment it's all about how do we make sure that we take our existing clients we deliver value to them we convert them to the cloud and we then help them build value build market and build from there can I just expand on Steven's question earlier around uh sort of what the biggest hurdles is to signing new customers yeah onto the new platform yeah I I think um so Denny's answer is is a is a and and Shell's answer is a great is a great one I think for every client it's different and it depends a little bit on um on platform and their situation um if you take for example Vista digital and and particularly our apis our ability to do hor horizontal scaling for Blockbusters Etc um what we're seeing is clients when they have um an inability to sell tickets they can't scale or their sites go down that that drives a real entry point and so suddenly that's a uh that's a good way and for many clients that platform um from a digital perspective I is a much simpler starting point than when you get to full um uh to full cloud and you're starting to remove technology from actually in the cinemas as well at that stage you become much more aligned to what are the CICS um or what are the actual infrastructure uh Investments that are in the cinema where's the depreciation at for that um where's licensing at Etc in terms of Microsoft and other licenses as well so um for every client we sit down with them and we're setting down with them to say okay um what are your business drivers today what is what is where are you growing into the future and then how can we best tailor the platform to support that so it's not a one- siiz fits all um approach some are going very quickly through the process every man is a really good example that we've talked publicly about um and others are going in a more considered way so clex and Canada um is an example as well digital first and then they'll do um core cloud um a bit later on in the process and so uh I think every client will be different the value for every client will be different and is different as well um what we've tried to do with the platform is make sure that clients can enter the platform at any stage they start with core either take digital Cloud movie go engagement Etc um and build from there and by ensuring that we are Engineering in a considered way on an ongoing basis um I think we actually create a really powerful road map for them but for each it's going to be different and how does it compare between new customers and so existing customers so a new customer um will take the whole solution pretty much um immed so sorry let me just answer that slightly different if it is a new client building new Cinemas um I.E they're opening brand new Cinemas with no technology infrastructure they would go full Cloud um immediately because why would you put Legacy technology um into those sites if it is a new client to Vista group um we again with the platform would start with the core and then it's really around what is the key um drivers for them is it a digital um transaction is it CL is it full Cloud Etc so we we would um tailor it to to um to meet that across our technology landscape today one of Vista group strengths has just been the absolute number of connectivity um uh combinations we have and so our apis uh and our ability to interface with other technology is is is um is is a key reason for them to to to come um thanks um maybe just um excuse me um just going back to the 175 million AR Target um in 175 205 aspiration yes yes um so just just to recap there so you're you're thinking um you know 40% of your customers You're Expecting 40% of your custom customers to be on visted digital by the end of 2025 is that is that right uh no I think the the chart says that 40% of what we need to get to by 2025 are already signed up 40% of what you need and implemented y y or and then we also gave the number that's contracted sorry that we're talking to as well and so yeah so what so the message we're trying to and a lot of the conversations I've had is around okay as an on- premise software business Vista group we can really understand you when you sell a license we understand how that monetizes we understand how to click maintenance the reality with cloud is that once you sign a cloud contract then there's then a process you go through to actually take that client mobilize them and move them to live before you can actually recognize the AR and so um this is our first go at demonstrating to the market where we're seeing momentum in the pipeline um I think over time and as we get um more experience and data around this um and as we're as we're more comfortable with the metrics then we'll talk more about it but what we wanted to do today was demonstrate that across our 2025 Ambitions we have a clear pathway to those we understand our client base that's already contracted uh or is already live and is moving through that and then really it's up to us to continue to execute on that okay and then you know what proportion of your customer base would you expect to have moved to full V Cloud by the end of 2025 uh we we haven't put anything out on that specific one but probably um we we have about 15 to 20% as Target of the total 15% okay um we'd be pretty happy with that I think part of the message today is that we're seeing the digital lead digital first strategy playing out really well Y and then maybe Stuart back back to you for strategy three you had a whole bunch of yeah additional um industri you could go into I mean which one would you call out as being the most adjacent I saw restaurants and food and beverage could up there you obviously so the the most adjacent for us is where our clients already exist um and following them though the them into those areas and so if you take clex and and Canada again as an example um they operate um family entertainment centers they operate environments which have no Cinema screens um on them already um we're providing the um ticketing platform and capability for those um uh for those areas and so we that's where I see our most natural starting point um and then we sort of go from go from there but you can you can kind of hop into further further adjacencies the core the key for us has been really clear around where our capability sits which is in high volume transactional systems doing that at scale burst enabled with time slots around the world that's hard that is hard business technology we are great at that and so I think there's significant opportunities for us to really exploit that in the future but again focus at the moment 2025 aspirations getting clients on the cloud proving the platform proving the journey we've got a great Studio business we've got really great exhibition um uh transition that we're working through so yeah that's where that's where the core is y great and and maybe just thinking about the medium to longer term targets you know from what you're saying from you know from what customers are saying to you in the last 12 12 months or so um is this a decade long transition is it a 15E transition just a high level you know we've obviously the some of these on pred Cloud transitions usually seem to take a decade yeah you know is that is that is that roughly what we we should be thinking I think that for some clients um and some markets it it's going to take a long time um for for sure and so um I'm I'm not going to come out with a number um I I think you you've talked about a number it's it's it's well referenced in the industry that that's what these these sort of things take so um this is a long-term program it's about delivering the journey over time um and actually delivering those steps I think if I could add though yeah there's no shortage of interest in where the value creation is uh and particularly around the Eng engagement with the guest experience as Shelly described it and so I'd be very surprised if people are going to hold back for too long on that if they take a little bit while to change their underlying infrastructure from a point of sale perspective yeah I agree with that we kind of a little bit agnostic about that we're not really agnostic we'll be able to there there should be enough incentives from a value proposition to be able to drive adoption through different stages but we certainly are seeing fantastic value creation from what's happened just in terms of digital ticketing trans digital transactions pre and postco and you see the acceleration I we're all consumers right we want to we want to buy a mobile ticket we want to like that's what our clients want to deliver and that that experience is important and so if you take things like living ticket um and you take that to the next to the next step um you come into a cinema you actually use your living ticket to order your food and beverage it's it knows where you're sitting it goes connected directly through the process so at that stage we start to really Drive value in the platform because we're connecting the actual um engagement moment for the for the movie goer with the operational system and and then um delivering that value back and so that's that's the type of experience we're delivering for our clients um and I think that's where the value is and I think that's ultimately also what pulls the the full Cloud trans I piece forward Because by the time you start to want to do that you have to you know rethink you're actually in CineMate Tech as well um than thanks for and my understanding in terms of the AR uplift and I think you've been pretty clear about this some of that a good good chunk of that uplift is coming from fees for cyber security you touched on that in the presentation when you talk to the cinema chains you know um I think you yourselves have made it pretty clear some of them see more value than that than others yeah um you know how longes how long is that sales cycle to convince them that cyber secur is worth paying for if you like I I think um I I suspect that the each Cinema um CEO is probably better to answer that than than I am but uh you know if certainly if you're a publicly traded stock um cyber security is at the Forefront of every um conversation and um we know that a number of well for a number of our clients it's a it's a massive deal and so um I think I think the interesting thing as well is that if you think about the technology and a number of our clients um they've had our Solutions in their Cinemas now for quite a long time um they are going into life in terms of um some of the end points some of the infrastructure and also some of the licensing in them um that all drives um the cyber security and the infrastructure conversation so I see those two things really well coupled um together and so uh again it's it's just about making sure that we're having the right conversation with the client maybe one last one for me I've got the mic um you talked quite a bit about generative AI Stuart um I guess conceptually if you're a cinema and you're seeing shows sell out should you know from my perspective shouldn't be that complicated to add additional shows but maybe maybe maybe that's too much of an assumption like how much you do you see how much upside do you see from this kind of Technology well I think I think that particular example if you think about a Cinema um circuit and you think about an actual Cinema itself and um as I as I said before um when the show is selling out it's not immediately off obvious to the people that are actually selling a scheduling the show and so what happens today is that the film Bookers literally get on the phone the film schedulers literally get on the phone with C with the cinema managers um and say hey you're selling out like you know it's so so I think the opportunity is twofold one is to improve the operational efficiency and actually start to surface those insights back to the Circuit head office the other thing that's important then is and to to George's Point um whether or not they can put on another show also depends on what their agreement is with the distributor and Studio about the rights that are associated with that film as well it's not as simple as you you and I might take it across the room and Chuck the hard disk in in another solution it's because this is all digitally um encoded and locked um it's got to be it's got to go all the way through that process with the right digital Keys Etc they only work on the piece of Hardware that's sitting in that booth just as you sort of try and drive these Cinema customers up your sort of value added stack and like the solution is more kind of your confidence around the successful like yield management or stuff like that how do you kind of price that with them to kind of accelerate that path like is this kind of like a rebate type structure as they see success or can you just describe how you thinking about that part um so at the moment we the way we think about it is is is relatively simple to be honest we have um base fees across the core um across the core solution and then some sort of variable transaction fee and depending on the components of the solution will depend on the amount of that transaction fee whether or not it's a revenue share model or some other metric as well um I think over time we'll get more sophisticated um in that uh but certainly it's working the conversations that we're having um today the conversions we're doing today as we've said we're really comfortable that they're in the models that we've um we've set up for the business and so it's about how do we then once we've got got them there it's what's the next layer of value that we can create um as well and that's where some of the solutions um That We're Dreaming about in the future will come and and they may not be part of the subscription they may be something that the client adds on in terms of another module or area as well so um I think there's a lot of opportunity but we've got to again we've got to get the base there and start from there um uh we haven't Lo fact actually um we haven't lost any customers um we talked briefly in the half year result about one of our existing on Prem clients that was talking with that was um tring another um point of sale solution um that's that's still going on um but I I guess my expectation is that if you think about our market share so 50% of the Enterprise priz Cinema circuit market share globally and then you think about our organization and what our beliefs are in terms of a AI enabled cloud and around a connected Suite um for some clients um they will choose to use Point Solutions so they might you know uh they might not choose to use our movie or Cinema part of the platform they might use something else from a from a CRM perspective but Al in some markets um the Market's ability to want to have that um fall into to end solution um to be able to value that and to drive um their revenue through that might not be the same as in other markets as well and so um I don't necessarily think and expect that we transition all 50% of that market share there'll be new clients that come in to our process and during the during um uh during the transition there'll be the odd client that gets um that makes other decisions um we're absolutely pragmatic enough to know that when you do enterprise software transitions from on premise to Cloud you you create a moment of opportunity for clients to actually consider what it is they're doing our job is to be really clear around the value that our platforms add and the outcomes the clients uh can expect and then aligning how we're successful together um if we can do that and we do and if we and when we do that really clearly with the client um they see the value and then we keep on on the journey thanks um when you look at that 50% market share it's a number that seems to been in my mind for quite a few years yeah um it's epic it's like how many rfps do you see for new chains what's the key conversion point you talked about capex around your own conversions to the cloud there probably been three years of underinvestment so we so we don't see um in terms of exhibition market share growth um in in our forward models we we don't have a lot of um growth in those models um we think that when you work through the market share and look at what sits on top of us there's some do it do it themselves Solutions um there's Japan as a Market South Korea which we're under represented in at the moment there's there's potentially opportunities um there but I I think um we expect that overall um box office admits Etc long run there'll be some there'll be some growth there what we are seeing and and I think is really important in the conversation and goes to what Shelley talked about is um the value ad the additional Revenue that's going through um our clients and from a platform perspective that's what we're looking to support and share and so um I I I think that the market share piece uh whilst it's been a really important metric in the past I see that as a much less important metric um in the future it's it's it's interesting um but how we actually create that value how we get to things like take rate how we get to you know oval um growth of Vista from an AR perspective um I think they're really important where I do see um market share opportunities and where we where we are actively responding to rfps is in our studio and um distribution business across our distribution and our digitization platforms there of Max and Micah um and even numero our box office reporting areas there are a lot of markets where we still have opportunities to grow there and so you saw we had really good growth grow in the first half with our results um in that part of the business um there are some really interesting rfps that we're seeing um there as well can I can I add to that one a little bit as well I think we don't just to be clear around the market share of the exhibition the business case for the cloud transition and investment doesn't require us to get more maret I think the outcome of connected industry makes Vista more compelling for everyone and I'd even go so far as to say where we weren't attractive as an on premise alternative to people doing some the big companies doing it themselves we all of a sudden become a lot more attractive as a proposition so but we haven't built that in and so I think there's still uh still a little bit of U order to go under that bridge but I I certainly think we're positioning ourselves for um should we say taking those opportunities as they arise hi there um can you provide an update on discussions with cix post result because I think in terms of timing you were going up to Mexico to I haven't gone yet no no okay yeah so no change um since since the result conversation I'm due there in about four weeks good look looking looking forward to the chat thanks for the presentation I was just wondering with regards to the core Cloud product versus the full bells and whistles could you give us some color about the benefits your business gets from clients having the core product versus the full Su and if your assumption for about 15 to 20% um to at least have have um added further features if that didn't come to fruition you know would your 40% of of signups to reach your targets would you need to drop that and you know would it close it be more like 30% or 20% uh RP versus um R versus volume I I think the the way it's the way we're trying to get to explain it now is that the digital lead transition is a value ad for us as well because we're we're underrepresented in digital tools with our with our clients um and to point earlier around how how have they invested over the last few years as you heard from Shelly and she's one of those people who's invested a lot more coming out of it I think there's a lot there's a a bit of reinvestment going and that's why we're seeing a lot of uh attention for the digital tools um and that's attract to US versus perhaps the what might be appear to be just the lift and shift of the on premise or move that into the cloud but they're both probably the same similar uplifts um in terms of all the percentages uh they do actually make sense so that that transition to digital will probably bust through the kind of required amount and then the on print this the vist full vist to Cloud sweep will will trail that um and the balance between the two will get us to our 2025 Target we time no mention of China through the presentations is it um just too hard these days um look we're we're we're still where we've been um in terms of China uh so we wrote down our our investment there um we've also as as we did it the half um walked out any remaining AR um that was related to China um as well um look we've got a number of conversations that we're working on um there it is a complicated Market um it's an even more complicated Market when you come and talk about Cloud um and what that uh could mean as well and so uh at this stage we're comfortable with our position um with with China which is that we effectively um are not are not operating there um just a quick question for Matt I suppose last year we talked about the cloud transition there was kind a lot of a talk about the cloud multiplier of Maintenance and obviously now you're articulating the story you know more and more detail and was probably looking more at Cloud pricing being or revenues being a percentage of transactions you know base fee plus percentage of transactions so when I look at that slide and it talks about the the kind of you know migration of different types of the cloud products like obviously Horizon in one view you're looking at you know like 40% of those look as though they're already live whereas you know the actual Cloud full Cloud percentage is much lower I'm assuming if we were to just for our model purposes look at it as a multiplier of Maintenance that would be lower than what it would be if you start migrating to a kind of Fuller Cloud product over time yeah that's right and um we split out the The Horizon one view part of it um mainly because that we're super excited about the uptake of that uh the that is actually a very clearly linked to the this a digital platform so it isn't really much of a separation and pricing so it's really kind of two price uh transitions one is to digital and then one is to war Cloud so obviously you know last year when we talked about these multipliers of two times or you know three times obviously that would depend on what type of customers are migrating if you've got like a you know a customer that's doing the full migration obviously though you probably three times plus whereas if you're doing something just doing it more gradually it be I don't know what the numbers are one times or one and a half times or something is it yeah well I I I think it's if you look at the industry standard for anyone who just moves from an on- premise environment to a cloud hosted environment they're expecting a two times uplift we're expecting a three because we're adding the digital Suite to it um which is a you know a step up in our total addressable market and the value we add um so you can kind of do the maths between one times uplift for the digital and then another one what I do want to do though is I think that's okay for modeling and and thinking about where we've been uh the reason we wanted to talk today about how much value goes through the the um Vista today and how many and the value of the transaction is because as we sell more digital and Cloud tools we don't we don't have a reference point for maintenance what we have is a reference point for the the value that goes through the platform and the value we deliver in that platform and hence the Baseline and variable fee and that's what we will be increible in talking about as we go through that transition over the next sort of yeah I also don't think that I think the reality is if you look at our client base and you look at the time um and when they were signed over over a peri period of time um uh maintenances uh multiples of are interesting but to be frank they're not actually that relevant to um how the value is created what the client is actually doing with the uh the solution as well there's many market and other impacts that happened in terms of the how that deal was originally done and so um we want to over time transition to a much cleaner metric that we think represents um a much better way of describing our business and also the value we're creating for our clients thank you um when you think to the 300 million Target can you provide a split on how you kind of see those base fees versus variable at that 300 mil uh I think we've said that we expect base fees to be about 25 to 30% perhaps um so 25 75 Splitters of of that uh that proportion of of the 300 remembering that in the 300 obviously there all Studio growth and VZ and all the other parts of the business as well jior just give us a bit of an update on how your new go to market strategy with the merge sales teams different touch points and you know how the customers accepting that and and also how your team Skilling up yeah so so um we are we we are definitely at early stages so we announced the transition um to the new model on July uh 6th of July um and First Step we're doing we're taking the business through a three phase well the team's going through a three-phase process first phase was to put the new Global Leadership team in place that process is now completed and and we've announced that team um I've got a I've got a couple I think I've got three of them in the room with me today so super excited about I will add Matt so four of them in the room with me today um so really excited about how that has come uh has come together at the same time we also went into phase two which was around looking at our finance ourr and um our other um sort of marketing shared services capability and what we could do to simplify there is we simplifi the organization um we're now in phase three which is really focusing on what You' the question you've just asked and so we needed to put the global leadership team in place so that they could then actually start to make um the decisions around the next phase as well and so um we're going through that in a couple of steps um we've just closed consultation um being a New Zealand UK um company we' we've got to go through all of the um the right processes there which is great with had some really good feedback on that um and so probably a little bit early what I can say is that when we started the process um went out and talked to all the clients and said hey this is the journey we're going through these are the reasons why we think this is beneficial um got some fantastic feedback it's like this is good news um really key post announcement of the GSL um went back out to the clients and said hey we've now done we've now done this here's the new team got some great feedback back saying hey great talent looking really good um I I think until we get to the really you know as a client what is what what happens with my account manager or my multiple account managers that I might have at the moment because I've got multiple products Etc we've got a little way to to go on that Journey but what we're trying to do is be as transparent as possible for our team we're trying to get through it as quickly as possible as well and so we expect that um by the end of September most Parts but certainly by mid October will be complete um in terms of that people piece and then we'll work on the working together um where the where I guess the next point for us is that in February uh February 12th we're bringing together our clients um I think it's 12th 12 14th um for our Vista group conference so that's the first time in a number of years they're they'll be coming back to Oakland and so that's something that they make the decision and journey um so we've gone out we've talked about that some great excitement about that and so um I'm really encouraged about how interested they are in our success as an organization and making sure that they stay close to what we're doing from a product perspective and also um a solution and roadmap perspective um as I said in the presentation for many of our ex exhibition clients we are at the core of their business and so um they are super invested in us uh they're super invested and and and what we're doing how we're talking to uh the market um as well so all right I'll leave you to close I'll close I'll close us up all right um well look thank you so much for your time thanks very much for coming out early this morning I know a number of you flew in from Phoenix very late overnight and so you've done you've done well to get here for um uh for an early start hopefully we've we've fed you and and nourished you and you found this useful I've I've really enjoyed the questions and the opportunity to talk to everybody um we have some space uh outside in the bar area probably a bit early for a drink but um happy to do any further Q&A that people might have out there as well um uh we're also for those of you who are interested in going behind the scenes of Alamo um the team are here and they'll they're happy to take anybody who wants to go behind the scenes uh and see how this uh how how this um Auditorium and and the cinema complex Works um they can take you through that as well but as I said thanks heaps for coming and um look forward to seeing you uh all shortly for those of you are traveling home to New Zealand um travel safe as well so thanks all