Evs Broadcast Equipment Sa · EURONEXT:EVS
Evs Broadcast Equipment Sa — FY2019 Earnings Presentation
35 slides from Evs Broadcast Equipment Sa's earnings presentation, Feb 20, 2020
Slide 1: EVS Broadcast Equipment – Results of 2019
EVS BROADCAST EQUIPMENT – RESULTS OF 2019 February 20th 2020 / The content of this presentation is proprietary, confidential and solely for the use of the intended recipients. It may not be reproduced or distributed, in whole or in part, to any third party without the consent of EVS.
Slide 2: Disclaimer
DISCLAIMER Forward Looking Statements This presentation contains forward-looking statements with respect to the business, financial condition, and results of operations of EVS and its affiliates. These statements are based on the current expectations or beliefs of EVS's management and are subject to
Slide 3: Agenda
/// AGENDA /// Agenda ⁄ Business Update ⁄ Financial Update ⁄ Guidance ⁄ Conclusions ⁄ Questions & Answers
Slide 4: 2019 Highlights
4 2019 HIGHLIGHTS ⁄ 2019 Revenue: EUR 103.4 million within the range of the guidance (-2.3% YoY excluding big events rentals and at constant cy) ⁄ Strong NALA revenues offset weak APAC revenues ⁄ Strong Profitability despite lower revenues thanks to strong gross margin and lower operating expenses (
Slide 5: EVS Business Update
EVS BUSINESS UPDATE ⁄ BROADCAST & MEDIA MARKET IN TRANSFORMATION ⁄ EVS SIMPLIFIED BLUEPRINT ⁄ MARKET RECOGNITION FOR EVS PRODUCTS & SOLUTIONS ⁄ CHANGE IN PILLARS OF REVENUE DESTINATIONS ⁄ KEY CONTRIBUTION FOR DIFFERENT PILLARS IN 2019 ⁄ 25 YEARS ANNIVERSARY OF EVS IMPACT ON THE INDUSTRY
Slide 6: Broadcast & Media Market Conditions
6 BROADCAST & MEDIA MARKET CONDITIONS CHAIN REACTION WITHIN BROADCAST & MEDIA INDUSTRY IN TRANSFORMATION • New behaviors of audiences • New entrants (FAANG-TA) capturing audiences MARKET EVOLVES • New sources for capture of high quality videos • New “broadcast ready” techno (IP, SW, Telecom, Cloud,
Slide 7: EVS Simplified Blueprint: Standard Solutions – Custom Workflows
7 EVS SIMPLIFIED BLUEPRINT: STANDARD SOLUTIONS – CUSTOM WORKFLOWS 3RD PARTY APP REPLAY & HIGHLIGHTS LIVE PRODUCTION SYSTEMS ASSET MANAGEMENT PRODUCTION PLATFORM a micro-service SW platform deployed as containers MODULAR INFRASTRUCTURE WORKFLOW DESIGN TROUBLESHOOTING Customization Contract services I
Slide 8: EVS Simplified Blueprint: Standard Solutions – Custom Workflows
8 EVS SIMPLIFIED BLUEPRINT: STANDARD SOLUTIONS – CUSTOM WORKFLOWS 3RD PARTY APP REPLAY & HIGHLIGHTS LIVE PRODUCTION SYSTEMS ASSET MANAGEMENT PRODUCTION 3RD PARTY PLATFORM INTEGRATIONS Resource Asset & Workflow Support & AI & Open Management Management Communication Data API Video Encode Transform Mi
Slide 9: Official Market Recognition for EVS Products & Solutions
9 OFFICIAL MARKET RECOGNITION FOR EVS PRODUCTS & SOLUTIONS AWARDS & CERTIFICATIONS EVS and ESL win best esports production award EVS' Overcam wins IABM’s Peter Wayne Golden BaM award at the Broadcast Tech Innovation Awards 2019 at IBC2019 EVS successfully participates in latest JT-NM testing FIFA aw
Slide 10: Change in Information Given by Revenue Destinations: New Market Pillars
10 CHANGE IN INFORMATION GIVEN BY REVENUE DESTINATIONS NEW MARKET PILLARS ⁄ LIVE AUDIENCE BUSINESS (LAB) Revenues from customers leveraging Broadcasters, Stadium, House of Worship, Corporate Media EVS products and solutions to create Centers, Sports organizations, Government & institutions, content
Slide 11: Live Audience Business/Live Service Providers/Big Events Rental 3 Years Evolution
11 LIVE AUDIENCE BUSINESS/LIVE SERVICE PROVIDERS/BIG EVENTS RENTAL 3 YEARS EVOLUTION VS OB/STUDIO & OTHERS/BIG EVENTS RENTAL Revenues LAB/LSP/BER* - per customer type Revenues Studio/OB/BER – per order 80,000 80,000 70,000 70,000 60,000 60,000 50,000 50,000 40,000 40,000 30,000 30,000 20,000 20,000
Slide 12: 2019 – EVS Contributes to Live Audience Business Market Pillar
12 2019 – EVS CONTRIBUTES TO « LIVE AUDIENCE BUSINESS » MARKET PILLAR KANAL2 ESTONIA GLOBO RPC NEWSROOM UNIVERSITY OF MIAMI MORE NEW GENERATION ELEMENTS OF SOLUTIONS TO COME TO RE-INVENT LIVE PRODUCTION EVS ENGAGED IN SEVERAL PROJECTS OF BROADCAST CENTER MODERNIZATION – LEVERAGING BENEFITS OF VIA PL
Slide 13: 2019 – EVS Contributes to Live Service Providers Market Pillar
13 2019 – EVS CONTRIBUTES TO « LIVE SERVICE PROVIDERS » MARKET PILLAR GRAVITY MEDIA GROUP MOBILE TV IP TRUCK F&F UDH 4K HDR NEP Finland selected DYVI GAME CREEK VIDEO NEP US TVN for MTV Finland “Love Island” NEP Australia Sidney & Melbourne hubs Remote production of 30 venues across Australia X-ONE
Slide 14: 2019 – EVS Prepares 2020 Summer Events with Host Broadcasters
14 2019 – EVS PREPARES 2020 SUMMER EVENTS WITH HOST BROADCASTERS MAJOR 2020 MULTI-SPORTS EVENT EUROPE WIDE TOURNAMENT IN 2020 IN ASIA FOR LEADING SPORT FEDERATION
Slide 15: 2019 – 25 Years of Emotions and Impact on Whole Industry
15 2019 – 25 YEARS OF EMOTIONS … AND IMPACT ON WHOLE INDUSTRY ⁄ Broadcast Academy activities with HBS Many training sessions with different EVS products First women “football director” graduated at ORF
Slide 16: EVS Financial Update
EVS FINANCIAL UPDATE ⁄ 2019 FINANCIAL HIGHLIGHTS ⁄ 2019 REVENUES ⁄ GEOGRAPHICAL SPLIT ⁄ REVENUE DESTINATION SPLIT ⁄ CONSOLIDATED INCOME STATEMENT ⁄ TEAM MEMBERS ⁄ STRONG BALANCE SHEET
Slide 17: 2019 Financial Highlights
17 2019 FINANCIAL HIGHLIGHTS ⁄ 2019 Revenue: EUR 103.4 million within the range of the guidance (-2.3% YoY excluding big events rentals and at constant cy) • Weak APAC region due to political and trade relations issues in the region • Strong NALA after low 2018 sales as major facility companies star
Slide 18: 2019 Revenues
2019 REVENUES 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 1H 2H 2015 2016 2017 2018 2019 MOB [excl.Rentals] ™ Studio (excl. Rentals) ™ Big events rentals
Slide 19: 2019 Revenues Geographical Split: NALA, EMEA
19 2019 REVENUES GEOGRAPHICAL SPLIT NALA EMEA REVENUES 2019: REVENUES 2019: +44% YOY +2.7% YOY
Slide 20: 2019 Revenues Geographical Split: Asia-Pacific, Big Event Rentals
20 2019 REVENUES GEOGRAPHICAL SPLIT ASIA-PACIFIC BIG EVENT RENTALS REVENUES 2019: REVENUES 2019: -40.3% YOY WOMEN WOLD CUP; RUGBY WORLD CUP
Slide 21: Consolidated Income Statement
21 CONSOLIDATED INCOME STATEMENT ⁄ Revenues: -11% YoY (-0,6% excl. Big Events) In millions of EUR 2019 2018 REVENUE 103.4 116.1 ⁄ Gross margin: 71.6% thanks to better product Cost of sales -29.3 -33.5 mix and lower inventory write offs. Gross profit 74.1 82.5 Gross margin 71.6% 71.1% ⁄ OPEX: -5,3% Y
Slide 22: Team Members Evolution
TEAM MEMBERS EVOLUTION NUMBER OF FTE DECREASES IN 2019: -13 FTE FROM DECEMBER 2018 TO DECEMBER 2019 ⁄ End of semester HC snapshot reporting impacted by hiring timing (Not an average value) 22
Slide 23: Strong Balance Sheet: Cash Available EUR 59 Million
23 STRONG BALANCE SHEET CASH AVAILABLE: EUR 59 MILLION ASSETS 12/2019 12/2018 12/2019 vs. (EUR thousands) 12/2018 ⁄ Lands and buildings: +4,5MEUR of which +6,1MEUR for Non-current assets : IFRS 16 and -1,5MEUR common depreciation costs Goodw ill 1,125 1,125 0 Other intangible assets 173 443 -270 Lan
Slide 24: Strong Balance Sheet: Net Cash Position 46.3M€ and Low Debt Level
24 STRONG BALANCE SHEET NET CASH POSITION 46.3M€ AND LOW DEBT LEVEL EQUITY AND LIABILITIES 12/2019 12/2018 12/2019 vs. (EUR thousands) 12/2018 ⁄ Financial long-term debts : +1,6MEUR of which Equity : +5,9MEUR for IFRS 16 and -4,3MEUR due to Capital 8.772 8.772 0 reimbursement of borrowings Reserves
Slide 25: Guidance
GUIDANCE ⁄ ORDER BOOK ⁄ OUTLOOK & GUIDANCE 2020 ⁄ DIVIDEND ⁄ GOVERNANCE
Slide 26: Order Book: +18.3% YoY Excluding Big Event Rentals
26 ORDER BOOK: +18.3% YOY EXCLUDING BIG EVENT RENTALS ⁄ Order book of EUR 33.4 million on December 31, 2019 (to be recognized in revenue in 2020), • +87.3% vs last year (+18.3%, excl. big event rentals) ⁄ Additional EUR 4.4 million orders to be invoiced in 2021 and beyond Order book as of Dec 31
Slide 27: Outlook & Guidance 2020
27 OUTLOOK & GUIDANCE 2020 ⁄ Revenue is expected to be in the EUR 100 million to EUR 120 million range in 2020 taking into account a shift from a Capex model to a multi-year recurring revenue stream ⁄ Opex are expected to be stable compared to prior year
Slide 28: Dividend Policy
28 DIVIDEND POLICY MAINTAIN DIVIDEND POLICY ANNOUNCED IN 2018 ⁄ Deliver a total gross dividend of EUR 1.00 for 2019 (incl. EUR 0.50 interim dividend paid in November 2019) proposed to the Ordinary General Meeting of May 2020 ⁄ 2018 dividend policy maintained for 2020 – 2021: Deliver a total gross di
Slide 29: Governance
29 GOVERNANCE ⁄ Philippe Mercelis appointed as President of the Board of Directors ad-interim ⁄ Search of new President of the Board of Directors ongoing
Slide 30: Conclusions
CONCLUSIONS ⁄ AROUND EVS WORLD IN 80 DAYS AS CEO ⁄ KEY ACTIVITIES FOR 2020 ⁄ CONCLUSION
Slide 31: Passion, Skills, Commitment
31 PASSION SKILLS COMMITMENT
Slide 32: Key Activities for 2020
32 KEY ACTIVITIES FOR 2020 ⁄ Deliver the major summer events ⁄ Continue to expand EVS solutions offering, organically and/or through strategic partnerships ⁄ Implement PLAYForward project
Slide 33: Conclusion
33 CONCLUSION ⁄ 2019 revenues in line with the guidance albeit slightly declining versus 2018 (-2.3% YoY excluding Big Events rental) ⁄ 2020 outlook: revenues expected to be between 100-120M€ ⁄ Opex expected to be stable year over year ⁄ 2018 dividend policy maintained for 2020 – 2021 ⁄ PLAYForward
Slide 34: Questions & Answers
QUESTIONS & ANSWERS
Slide 35: Thank You
35 THANK YOU To learn more about EVS go to www.evs.com Search for EVS Broadcast Equipment on contact – corpcom@evs.com
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