Evs Broadcast Equipment Sa · EURONEXT:EVS
Evs Broadcast Equipment Sa — H1 2019 Earnings Presentation
26 slides from Evs Broadcast Equipment Sa's earnings presentation, Aug 29, 2019
Slide 1: EVS Broadcast Equipment Results 1H 2019
EVS BROADCAST EQUIPMENT RESULTS 1H 2019 Dr. Pierre DE MUELENAERE, Chairman of the Board & Interim CEO Yvan ABSIL, CFO Pierre Soleil, Corporate Communication & Investor Relations Manager =VSE
Slide 2: Agenda
AGENDA Business update >» Dr. Pierre De Muelenaere, Chairman of the Board and Interim CEO =V5& Financial update >» Yvan Absil, CFO Guidance D Dr. Pierre De Muelenaere D Yvan Absil Conclusions D Dr. Pierre De Muelenaere Questions & Answers
Slide 3: EVS Business: A Grow and Maintain Strategy
EVS Business BUSINESS | A Grow and Maintain Strategy XT ecosystem for OB vans and broadcast centers New products and solutions New markets
Slide 4: Maintain: EVS is a strong leader in live video production
MAINTAIN: EVS IS A STRONG LEADER IN LIVE VIDEO PRODUCTION AND WORKS HARD TO MAINTAIN ITS MARKET SHARE AND REVENUE =V5 Maintain a strong ecosystem around the XT platform Adapt to support latest technology evolutions — |P-smtp2110 - 4K — Remote production — Etc Maintain presence in OB Vans (outside Br
Slide 5: Grow: EVS is developing a range of new products and solutions
GROW: EVS IS DEVELOPING A RANGE OF NEW PRODUCTS AND SOLUTIONS FOR NEW APPLICATIONS >» New products functionalities continues to be released regularly and other functional upgrades planned for the next 2 years Live Video Production Switcher Live Video Assistance for Referees All-in-one Simplified Pro
Slide 6: 2H18 was record compared to the last years
2H18 WAS RECORD COMPARED TO THE LAST 10 YEARS D) H2 2018 is record compared to previous years * DEVS team worked hard to make a strong H2 2018 both in terms of revenues and profit D Original OPEX Guidance: moderate growth on top of the structural salary increase (+ 2%) in Belgium (analyst consensus
Slide 7: Guidance given at the start of the year 2019
GUIDANCE GIVEN AT THE START OF THE YEAR 2019 D 2019 financial outlook D Change: guidance given earlier, in February (instead of May) D Revenue: EUR 100-120 million D Opex: less than +2% Final dividend (May) Interim Dividend [November] [ica » Dividend 217 noi D Change of dividend policy: stable divid
Slide 8: Challenges for 2019
CHALLENGES FOR 2019 D> Grow 1H 2019 revenues [excl big events] vs 2018 > Generate better order intake in 1H 2019 >» Secured 2020 big events contracts > Continue leveraging 2H 2018 fight back plan actions [strict cost management) » Consolidate team spirit and alignment at the top of the company > Ens
Slide 9: At the end of June 2019, we are on track!
AT THE END OF JUNE 2019, WE ARE ON TRACK ! > Order intake better than last year : +19% as of June 30st (excl big events} while market conditions remain difficult D H1 Revenues: +12% YoY (excluding big events] D» OPEX decline by 7,1% YoY thanks to fight back plan actions and HC management (see change
Slide 10: Significant orders received in July and August
10 ON TOP, SIGNIFICANT ORDERS HAVE BEEN RECEIVED IN JULY AND AUGUST DEVS has been selected by leading Sports Federation for upcoming Europe-wide tournament in 2020 DEVS live solutions will enable the host broadcaster to produce, manage and distribute video content between the different production te
Slide 11: New key products released and significant deals won in H1 2019
11 NEW KEY PRODUCTS HAVE BEEN RELEASED AND SIGNIFICANT DEALS HAVE BEEN WON IN H1 2019 Products D Launch of the new IP-based live media- sharing network (XNet-VIA) for high- bandwidth live production control (Full HD and UHD) D latest evolution of X-One unified live production system offering new rep
Slide 12: Agenda
AGENDA 12 Business update >» Dr. Pierre De Muelenaere, Chairman of the Board and Interim CEO Financial update >» Yvan Absil, CFO =V5 Guidance D Dr. Pierre De Muelenaere D Yvan Absil Conclusions D Dr. Pierre De Muelenaere Questions & Answers
Slide 13: 1H19 Highlights
13 1H19 HIGHLIGHTS BETTER MOMENTUM IN 1H19 COMPARED TO WEAK 1H18 D» Revenues +12% YoY (excluding big events) Strong OB business (+40,5% YoY) supported by strong US orders Continued challenging market conditions D 1H Profitability D FY19 outlook Steady gross margin at 69,7% Opex control (-7.1% yoy],
Slide 14: 1H19 total revenues at 41.0 M€ (+12% vs 1H18 excl. big events)
14 1H19 TOTAL REVENUES AT 41,0 M€ (+12% VS 1H18 EXCL. BIG EVENTS) THANKS TO STRONG OB REVENUES OB [excl. rentals) ™Studio (excl. rentals) _ MBig events rentals NA 460 72.0 666} [64.2 52.8 474 , 44.1 41.0 34.1 37.3 30.1 34.5 38.5 16.1 1H | 2H 1H | 2H 1H | 2H 1H | 2H 1H 2015 2016 2017 2018 2019 =V5
Slide 15: 1H19 Revenue: Geographical split
1H19 REVENUE: GEOGRAPHICAL SPLIT 15 THE AMERICAS (excl. events] NALA 20.2 20.9 2? | | lil; 15.4 13.4 IH 2H 1H 2H 1H 2H 1H 2H 2015 2016 = 2017-2018 2019 REVENUES: +46% YoY =V5& EMEA (excl. events} EMEA 36.2 30.8 33.8 30.2 22.1 22.3 F 6 it li li 18.3 1H 2H 1H 2H 1H 2H 2015 2016 2017 2018 2019 REVENUES
Slide 16: Revenue: Geographical split (APAC, big event rentals)
16 Q4 REVENUE: GEOGRAPHICAL SPLIT APAC BIG EVENT RENTALS (excl. Events] Big Events APAC 8,2 8,1 184 1, 153 3.7 0.6 12.3 106 21.0 5,3 1.9 1 3,9 | 1 I I | I | V7 | 10 (13 0,6 0,2 , 1H 2H 1H 2H 1H 2H. 1H | i - 1H 2H 1H 2H 1H 2H 1H 2H 1H 2015 2016 2017 2018 2015 2016 2017 2018 2019 REVENUES: -18% YoY RE
Slide 17: Consolidated income statement 1H 2019
17 CONSOLIDATED INCOME STATEMENT 1H 2019 In millions of EUR 1H19 1H18 > Revenue: -6.9% yoy ([+12% excl big events) REVENUE 41.0 44.1 > Gross margin: +2.8ppt yoy Cost of sales -12.4 -14.6 » Better product mix Gross profit 28.6 29.5 Gross margin 69.7% 56.9% > OPEX: -7.1% yoy + Strict cost management a
Slide 18: People - number of FTE continues to decline
18 PEOPLE - NUMBER OF FTE CONTINUES TO DECLINE THANKS TO BETTER RESOURCE MANAGEMENT MAINLY IN R&D FTE Count evolution [end of semester] Actuals » End of semester HC snapshot reporting impacted by hiring timing (Not an average value] » Expected level of HC at the end of 2019 similar to end of 2018 =V
Slide 19: Strong balance sheet: cash available EUR 58.9 million
19 STRONG BALANCE SHEET CASH AVAILABLE : EUR 58.9 MILLION ASSETS 6/2019 12/2018 6/2019 vs. (EUR thousands) 12/2018 D Major lines impacted by IFRS16 D Lands and buildings: including +7,7 MEUR for IFRS 16 Non-current assets : Gooaw il 1.125 1.128 0 D Other tangible asset: +2,3 MEUR for IFRS16 Other in
Slide 20: Strong balance sheet: low debt level and strong net cash
STRONG BALANCE SHEET LOW DEBT LEVEL AND STRONG NET CASH POSITION 20 EQUITY AND LIABILITIES e/2019, 12/2018 62079 vs. (EUR thousands) 12/2018 Equity : Capital 8.772 8.772 0 Reserves 433654 136.601 “2.947 Interim dividends ty) 0 0 Final dividend 0 o o Treasury shares 8.184 -4.750 “3.434 Total consolid
Slide 21: Agenda
AGENDA 21 Business update >» Dr. Pierre De Muelenaere, Chairman of the Board and Interim CEO Financial update >» Yvan Absil, CFO Guidance D Dr. Pierre De Muelenaere D Yvan Absil =V5 Conclusions D Dr. Pierre De Muelenaere Questions & Answers
Slide 22: Order book @ June 30: EUR 22.5 million
22 ORDER BOOK @ JUNE 30: EUR 22.5 MILLION D = 2019 order book is -4.5% compared to last year, but +10.4% excl. Big events rentals 23,5 22,5 > Current 2019 order book include EUR 0.7 million for big 22,2 event rentals DP In addition, EUR 6.8 million for 2020 and beyond ™ Order book for event rentals
Slide 23: Outlook and guidance
23 OUTLOOK AND GUIDANCE D Market conditions remain challenging with different dynamics across geographies > Confirmation of the revenue guidance: D Revenue: EUR 100-120 million » Improvement of the Opex guidance D From less than +2% to stable OPEX YoY =V5
Slide 24: Agenda
AGENDA 24 Business update >» Dr. Pierre De Muelenaere, Chairman of the Board and Interim CEO Financial update >» Yvan Absil, CFO Guidance D Dr. Pierre De Muelenaere D Yvan Absil Conclusions D Dr. Pierre De Muelenaere =V5 Questions & Answers
Slide 25: Conclusions
25 CONCLUSIONS » Positive H1 in terms of order intake, revenues as well as in terms of operating expenses management » New major functional products released by the R&D ! > Important wins by the sales team ! Including 2020 big events contracts » Guidance confirmed on revenues » Guidance improved on
Slide 26: Pierre Soleil, Corporate Communication & Investor Relations Manager
Pierre Soleil Corporate Communication & Investor Relations Manager Corpcom@evs.com Tel: +32 4 361 70 13
EVS Broadcast Equipment — H1 2019 Earnings Presentation on 6ix