Evs Broadcast Equipment Sa · EURONEXT:EVS
Evs Broadcast Equipment Sa — Q3 2014 Earnings Presentation
23 slides from Evs Broadcast Equipment Sa's earnings presentation, Nov 18, 2014
Slide 1: EVS Broadcast Equipment 3Q14 results
EVS Broadcast Equipment November 18, 2014 3Q14 results s | Muriel DE LATHOUWER, President of the Executive Committee Magdalena BARON, CFO Geoffroy d'‘OULTREMONT, VP Investor Relations and Corporate Communication Www.evs.com
Slide 2: Forward Looking Information
FORWARD LOOKING INFORMATION The statements made in this presentation that are not historical facts contain forward- looking information that involves risks and uncertainties. All statements, other than statements of historical fact, which address EVS Group’s [“EVS”, “dcinex” or the “Company”) expect
Slide 3: Agenda
AGENDA [> Corporate update | > Financial update >» Annexes
Slide 4: What happened in the last few weeks
CORPORATE UPDATE What happened in the last few weeks »D Executive committe working full speed under the leadership of Muriel De Lathouwer >» Recruitment of new CEO in progress » Confirmation of the focus on four target markets >» Evaluation and redesign of the internal organization » Active programs
Slide 5: Corporate update - new internal organization
CORPORATE UDPATE - new internal organization Designed to make decision-making process more efficient CEO i] i T T T 1 Customers Milani Engineering CFO ALETMELL products Resources 5 i
Slide 6: Agenda
AGENDA » Corporate update [> Financial update ] >» Annexes
Slide 7: Key Highlights
KEY HIGHLIGHTS » Solid 3Q14 results — Inline with management expectations — Difficult market » 2014 outlook — Lowsingle digit sales growth (confirmed) ~ Opex growth around 10% [improved compared to previous 10-13% range] D 2015: — Little visibility on top line ~ Opex growth expected to be around 10%
Slide 8: 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2009 2010 2011 2012 2013 2014
Slide 9: 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
Slide 10: Americas EMEA APAC
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014 Americas EMEA APAC
Slide 11: 3Q14: Revenue up by 28.6%
11 3014: REVENUE UP BY 28.6% (+1.3% excl. big events, at cst currency) Reported In millions of EUR 3Q14 3Q13 REVENUE 36.0 28.0 Cost of sales (9.0) (7.4) Gross margin 26.9 20.5 Gross margin % 74.9% 73.4% S&A (6.3) (6.5) R&D (6.1) (5.3) EBIT 14.3 8.4 EBIT MARGIN 39.8% 30.0% Financial result 0.7 0.1 dc
Slide 12: 3Q14 EBIT margin at 39.8%, or EUR 14.3 million
3Q14 EBIT margin at 39.8%, or EUR 14.3 million ae EBIT margin increase is mainly due to higher sales » Gross margin impact mainly from 04 yl sales leverage and reclassification ~ »D Opex impacted by _ ~ Dyvi Live / SVS (fully consolidated > minority stake] — Investment in future growth 3013 GrMgin O
Slide 13: 9M14: Revenue up by 11.4%
13 9M14: REVENUE UP BY 11.4% [(-3.0% excl. big events, at cst currency) Reported In millions of EUR 9M14__9M13 REVENUE 100.9 90.6 " Gross margin: Cost of sales (25.3) (21.3) + Higher sales Gross margin 75.6 $9.3 — Write-offs Gross margin % 74.9% 76.5% ~ Additional costs on big events S&A (18.5) (18.
Slide 14: Strong Balance Sheet
14 STRONG BALANCE SHEET EUR 43.0 million cash In millions of EUR Sept 2014 Dec. 2013 ASSETS » Investments in the new HQ Goodwill and intangibles 1.6 2.1 reflected in: Lands, buildings and other tangibles 48.2 33.7 — EUR 48.2 million in Lands and Investments at equity 2.1 98 Buildings Inventories 17.
Slide 15: Dividends per share
Final dividend (June) Interim Dividend (November) Payout 2.64 2.64 2.48 2.48 2.36 2.28 2.16 1.68 1.20 1.00
Slide 16: Results 9M14 vs 9M13 (thousands of EUR)
In thousands of EUR 9M14 9M13 REVENUE - - EBITDA - EBITDA margin Net result EVS share Dcinex result, EVS share -
Slide 17: Order book for event rentals
29.1 21.5 22.4 21.4 1.9 18.9 16.2 Order book for event 29.1 rentals - 8.7 21.1 22.4 - 19.5 18.9 Orderbook 0.0 16.2 31/10, excl. events - 8.7 rentals 2008 2009 2010 2011 2012 2013 2014
Slide 18: Outlook
18 OUTLOOK Confirmation of 2014 guidance Order book of EUR 18.9 million for 2014 at October 31 Continued prudence regarding market conditions, with live production server market still challenging 2014: ~ Revenues expected to grow at low single digit ~ Continued investments in innovation (IP, Cloud)
Slide 19: Conclusion
CONCLUSION " » Corporate — Working “Full speed” — CEO search in progress » Actuals: — Solid 3014 — Protection of market share in key markets — Continued difficult macro-environment ~ Interim dividend of EUR 1.00 D 2014: — Live production server market still showing signs of moderate slowdown — Lowsi
Slide 20: Agenda
20 AGENDA » Corporate update > Financial update [> Annexes
Slide 21: Staff growth: +32 people in months
STAFF GROWTH: +32 people in 12 months 49% in innovation (R&D) Headcount evolution at September 30, 2014 In FTEs 514 497 503 495 excl. Dyvi Live / SVS cS in FTEs and % > > > > va ye ve SP gh gg 21 +6.6% in last 12 months Net +11 FTEs in 3Q14 Functional split: — Innovation: 49% R&D — Expansion: 37% sa
Slide 22: Corporate Calendar
22 CORPORATE CALENDAR » November 24, 2014: interim dividend: ex-date >» November 25, 2014: interim dividend: record date >» November 26, 2014: interim dividend: payment date >» February 19, 2015: 4Q14 earnings Db May 12, 2015: 1Q15 earnings D May 19, 2015: Ordinary General Meeting >» August 27, 2015
Slide 23: EVS Stock Market Data
EVS STOCK MARKET DATA * » Stock data (Sept. 30, 2014): Shareholders (October 31, 2014) ~ Basis: 13,625,000 ordinary shares ~ Qutstanding warrants : 409,050 @ 40.38 — Treasury shares : 140,498 shares (125,000 shares bought back in 2014) M. Counson; 6.5%. Allianz Global Investor Europe GmbH; 6.5% ~~ A
EVS Broadcast Equipment — Q3 2014 Earnings Presentation on 6ix