Videndum : Annual Report and Accounts for year ended 31 December 2022

Enabling the capture and sharing of exceptional content

Annual Report

and Accounts 2022

Capture.

Share.

Our purpose is to enable the capture and sharing of exceptional content.

Discover our Divisions:

Media	Production	Creative
Solutions	Solutions	Solutions
See page 20	See page 26	See page 30

Videndum plc  Annual Report and Accounts 2022

01

We are a leading global provider of premium branded hardware products and software solutions to the growing content creation market.

Contents

Strategic Report		Corporate Governance		Financial Statements
2022 financial highlights	02	Chairman's statement	82	Independent auditor's report	163
Our global footprint	04	A snapshot of governance	84	Introduction and table of contents	170
About us and our brands	06	Board of Directors	86	Primary statements	171
Strategic framework	08	Leadership, purpose, values and culture	88	Section 1 - Basis of Preparation	176
Business model	09	The role of the Board	90	Section 2 - Results for the Year	178
Market opportunity	10	Key Board activities in 2022	94	Section 3 - Operating Assets and Liabilities	187
Stakeholder value creation	12	Section 172 statement	96	Section 4 - Capital Structure	197
Chairman's welcome	14	The Board and our stakeholders	97	Section 5 - Other Supporting Notes	206
CEO's review	16	The Board's major decisions in 2022	100	Company Financial Statements	216
Media Solutions	20	Division of responsibilities	102	Glossary of Alternative Performance Measures	224
Production Solutions	26	Composition, succession and evaluation	105	Five Year Financial Summary	229
Creative Solutions	30	Nominations Committee report	109	Shareholder Information and Financial Calendar 230
Operational and financial review	34	Audit, risk and internal control	113
Key Performance Indicators	42	Audit Committee report	116
Principal risks and uncertainties	44	Remuneration report	122
Responsible business	50	Directors' Remuneration Policy	128
Governance framework	52	Annual Report on Remuneration	138
ESG targets	54	Directors' report	159
Videndum's roadmap to net zero	56
Task Force on Climate-related
Financial Disclosures report ("TCFD")	57
Environment	70
Our people	72
Giving back	76	Cover image: Josefin Kuschela
Responsible practices	78		videndum.com
Non-Financial Information Statement	81	Image above: Felix Belloin

02	Strategic Report

2022 financial highlights

Revenue		Net debt*		Recommended final dividend
£451.2m	£193.5m	25.0p
				per share
Up 14%				Up 4%
2022	£451.2m	2022	£193.5m
2021	£394.3m	2021	£145.2m
2020	£290.5m	2020	£90.8m
Adjusted operating profit*	Statutory operating profit	Interim dividend per share
£60.0m	£31.5m	15.0p
Up 30%		Down 6%
2022	£60.0m
2021	£46.2m
2020	£9.9m
Adjusted operating margin*	Statutory operating margin	Recommended total
13.3%	7.0%	40.0p
				dividend per share
Up 160 bps	Down 150 bps		Up 14%
Adjusted basic Earnings Per Share*	Basic Earnings Per Share
90.1p	71.4p
Up 29%		Up 27%

Read more on page 35

• In addition to statutory reporting, Videndum plc reports Alternative Performance Measures ("APMs") which are not defined or specified under the requirements of International Financial Reporting Standards ("IFRS"). The Group uses these APMs to aid the comparability of information between reporting periods and Divisions, by adjusting for certain items which impact upon IFRS measures, to aid the user in understanding the activity taking place across the Group's businesses. APMs are used by the Directors and Management for performance analysis, planning, reporting and incentive purposes. A summary of APMs used and their closest equivalent statutory measures is given in the Glossary on pages 224 to 228.

Videndum plc  Annual Report and Accounts 2022

03

Key points

2022 financial highlights

• Record revenue (+14%) and adjusted profit before tax* (+27%).
• • Organic, constant currency revenue slightly ahead of last year, despite softness in the consumer segment (c.10% of Group revenue) and some retail destocking.
  • Executing on our M&A strategy with acquisitions integrated well.
  • Adjusted operating margin* progression (+160 bps); pricing again more than offset inflation and a continued well-managed cost base.

• Delivered operating cash conversion* of 83%.
• As expected, net debt* increased due to M&A activity and exchange rates.
• • Net debt to EBITDA of 2.1x (loan covenants basis).
• Progressive total dividend of 40.0p per share (+14%).

.

Strategic positioning and outlook

• Uniquely positioned at the heart of the growing global content creation market.
• Continued adjusted operating margin* improvement.
• Additional opportunities identified for a number of self-help actions to further streamline our cost base and deliver cross-Divisional synergies.
• Expect stable FY 2023 adjusted profit before tax*, with higher operating profit offset by increased interest charges; higher than usual H2 weighting due to current macroeconomic environment.

Image: Josefin Kuschela