The macro potential of the Photographic market

Vitec currently supplies this market with a variety of accessories for the photographic camera. This currently consists of tripods, bags and lighting supports manufactured by Vitec and third party products (flashes and lighting controls such as umbrellas and reflectors) distributed by Vitec. In future the range of accessories made by Vitec is likely to expand to include other items such as lights under the Manfrotto brand name.

The market

The photographic market consists of products sold into two main sectors:

• Professional – where imaging accessories are sold to a photographer whose business is taking photographs for a living. We estimate that the professional sector for the imaging accessories supplied by Vitec was worth some £375 million in 2008 and a similar size in 2009. We expect the professional market to grow at 2% per annum for 2010-12.

• Non-professional – where imaging accessories are sold to photographers who have a keen interest in photography or simply want to record images. We estimate that the non-professional sector for the imaging accessories supplied by Vitec was worth some £455 million in 2008 and a similar size in 2009. We expect the non-professional market to grow at 4% per annum for 2010-12.

The market drivers

Digital SLR unit sales

In recent years, digital SLR unit sales have been driven by the professional sector as photographers have moved from analogue to digital cameras. For the next few years this market will continue to enjoy moderate growth driven by innovation such as the ability to shoot high definition video. The non-professional sector is growing more quickly driven by a new generation of consumers upgrading to digital SLR cameras which are becoming simpler and cheaper.

Technology and social trends

Digital technology is facilitating the growth of photography as a hobby. Image sharing is becoming more accessible and popular and social networking internet sites have enabled images to be easily transferred among users. In addition, there is an increasing take up of photography as a record of images especially by women.

Vitec market postition

Supports

With our Manfrotto and Gitzo brands, Vitec has the premier brands in photographic camera supports in both the professional and non-professional sectors. With its high quality and innovative products, it also holds clear leadership in terms of market share (by value).

Bags

Currently sold under the Kata name and, under licence, under the National Geographic name, Vitec’s brands are gaining share in this large product category in both the photographic and non-photographic sectors. Further growth in market share is expected as a result of utilising the Manfrotto brand in this product category as part of our strategy for the photographic market.

Lighting

This comprises lighting supports and LED lighting. In lighting supports, which are predominantly used in the professional sector, the Manfrotto brand is the market leader. Sales of LED lighting into the photographic market are in their infancy as the industry continues to rely on traditional lighting technologies. Vitec currently distributes third party flashes and lighting controls.

Key Strategies

In the professional sector, our strategies are to:

• maintain our market position with professionals; and

• expand geographically our own distribution (under Manfrotto Distribution).

In the non-professional sector, our strategies are to:

• grow the Manfrotto brand into adjacent products to the existing camera supports by producing an integrated range of photographic accessories (camera supports, bags and LED lighting) under its name; and

• increase the penetration of photographic accessories among this sector by expanding sales in newer channels (such as consumer electronics chains and online retailers) and developing products relevant to their needs

Progress since October 2009

Since our Strategy Day in October 2009, we have:

• conducted further research with focus groups to refine the product and brand positioning needed to broaden our customer reach, which has confirmed our view of the market potential; and

• started the development of an integrated range of tripods, bags and lighting products under the Manfrotto brand

Our world class

Supports

Avenger

Gitzo

Manfrotto

Bags

Kata

Manfrotto

National Geographic*

Distribution

Manfrotto Distribution

*Manufactured and distributed under licence

“Manfrotto has been my trusted partner over thirty years of pro activity, delivering the best accessories in the market. Now I am collaborating with Manfrotto to develop new exciting products to bring the Manfrotto experience to a wider range of enthusiastic photographers.”

Bill Frakes

Professional photographer

Manfrotto powerbrand

The Manfrotto brand capitalises on 40 years of experience in the professional photo and video accessory markets. It is now launching new consumer-friendly products across multiple categories to help people express their creativity by making qualitative digital image capturing easier and more fun, whatever their level of technical expertise.

The Vitec Group plc, Bridge House, Heron Square, Richmond, TW9 1EN

T +44 (0)20 8332 4600 F: +44 (0)20 8948 8277

E info@vitecgroup.com www.vitecgroup.com

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