Evs Broadcast Equipment Sa · EURONEXT:EVS
Evs Broadcast Equipment Sa — Q3 2013 Earnings Presentation
28 slides from Evs Broadcast Equipment Sa's earnings presentation, Nov 14, 2013
Slide 1: EVS Broadcast Equipment 3Q13 results
EVS Broadcast Equipment 3Q13 results November 14, 2013 Joop JANSSEN, Managing Director & CEO Jacques GALLOY, Director & CFO Geoffroy d’OULTREMONT, VP Investor Relations and Corporate Communication www.evs.com
Slide 2: Forward Looking Information
2 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”) expe
Slide 3: Highlights
3 HIGHLIGHTS 3Q13 fully in line with management expectations APAC remains strong; Americas continues to recover Repositioning plan on track Lower revenues and higher costs leads to 30.0% EBIT margin Global Order book : record EUR 61.0 million (EUR 29.1 million for 2013) Guidance: - 2013: stable reve
Slide 4: Agenda
4 AGENDA Financial update Business update 2013 outlook Corporate update
Slide 5: Quarterly revenue split by segments
5 QUARTERLY REVENUE SPLIT BY SEGMENTS Quarter big events rentals ENM (excl. rentals) 42.8 Sport (excl. rentals) 39.5 33.2 32.8 30.2 29.8 31.0 29.8 30.1 28.0 26.9 25.6 22.7 23.4 19.6 20.5 20.9 18.1 18.4 XT3 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2009 2010 2011 2012 2013
Slide 6: Geographical split
GEOGRAPHICAL SPLIT 6 Good 3Q13 performance in all regions while Americas is recovering %: 9M13 vs 9M12 variation, at constant exchange rate, excluding big events rentals Americas (excl. events) EMEA (excl. events) 9M13 9M13 -36% 20.1 -11% 17.7 17.6 17.4 15.5 15.8 16.7 12.7 14.3 14.8 15.0 11.0 13.4 1
Slide 7: Geographical split
GEOGRAPHICAL SPLIT 7 Very strong APAC and Big event rentals APAC (excl. Events) 9M13 Big event rentals +20% 10.2 8.6 7.7 6.2 7.2 6.8 6.5 6.4 7.0 6.0 6.2 6.5 4.4 4.5 4.6 3.5 4.1 3.5 3.5 2.0 2.4 2.2 2.0 0.3 0.5 0.4 0.5 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
Slide 8: 3Q13: Revenue down by 29.2%
8 3Q13: REVENUE DOWN BY 29.2% Reported In millions of EUR 3Q12 2Q13 3Q13 3Q13 REVENUE 39.5 29.8 28.0 Gross margin impacted by lower Cost of sales (8.1) (7.1) (7.4) sales, reclassifications from R&D Gross margin 31.4 22.7 20.5 Gross margin % 79.4% 76.3% 73.4% and some hires S&A (6.2) (6.6) (6.5) Opex
Slide 9: 9M13: Revenue down by 19.4%
9 9M13: REVENUE DOWN BY 19.4% Reported In millions of EUR 9M12 9M13 Actual 9M REVENUE 112.3 90.6 Cost of sales (22.9) (21.3) Gross margin impacted by lower Gross margin 89.4 69.3 Gross margin % 79.6% 76.5% sales, reclassifications from R&D and S&A (16.3) (18.6) some hires R&D - gross (16.7) (17.6) R
Slide 10: 3Q13 EBIT margin at 30.0%, or EUR 8.4 million
3Q13 EBIT margin at 30.0%, or EUR 8.4 million 10 EBIT margin decrease is mainly due to deleveraging on lower sales 48.8% 3Q12 incl. London2012 rental contract for EUR 6.5m 10.8 Gross margin impact mainly 19.3 30.0% from sales deleverage 0.4 0.3 0.1 Stable SG&A and R&D opex 8.4
Slide 11: Staff growth: +19 people in 9M13
STAFF GROWTH: +19 PEOPLE IN 9M13 (incl. 14 people in start-up) 49% in innovation (R&D) Headcount evolution at September 30, 2013 500 In FTEs 482 Net +44 FTEs in 12 months (+10.0%), 450 incl. 14 people in start-up 400 350 More new staff to join in 4Q13 300 - Headcount is likely to reach 500 FTEs by 2
Slide 12: Strong balance sheet
12 STRONG BALANCE SHEET EUR 17.4 million cash EUR 2.5 million In millions of EUR Dec 2012 Sept. 2013 Intangibles and Goodwill ASSETS Goodwill and intangibles 1.6 2.5 Lands, buildings and other tangibles 21.1 32.3 EUR 32.3 million dcinex and Mecalec at equity 8.5 9.9 Inventories 15.9 16.6 Lands and b
Slide 13: dcinex contribution to EVS Group
13 DCINEX CONTRIBUTION TO EVS GROUP Slightly lower sales due to seasonal effect, high EBITDA margin 9M13 key financials In thousands of EUR 9M12 9M13 Top player in Europe REVENUE 62,035 63,997 +3.2% sales in 9M13 EBITDA 15,896 22,114 EBITDA margin 25.6% 34.6% +32.6% higher EBITDA margin Net result 1
Slide 14: New EVS headquarter and innovation center in Liège
14 NEW EVS HEADQUARTER AND INNOVATION CENTER IN LIÈGE Securing EUR 24 million debt financing over 7 years Gross investment EUR 50 million - 50% financed on own cash-flow - 50% (EUR 24 million) by senior debt - Opening: late 2014 EUR 24m Senior debt partners: - EIB (50%): EUR 12 million - ING Belgium
Slide 15: New EVS headquarter: net investment of EUR 45 million
NEW EVS HEADQUARTER AND INNOVATION CENTER IN LIÈGE Net investment of EUR 45 million over 2011-2014 EUR 50 million investment, gross (cash-out 2012-2014) EUR 5 million subsidies = investment net of subsidies = EUR 45 million and max EUR 9.0 million resale value of existing buildings (cash-in 2015), I
Slide 16: Agenda
16 AGENDA Financial update Business update 2013 outlook Corporate update
Slide 17: IBC (International trade-show in September 2013)
17 IBC (International trade-show in September 2013) Feedback General - Attendance slightly up - Mixed views on short-term market conditions - Confirmation of market long-term growth drivers indicated by growth in Sports Rights, entrance of new IT and Cloud-based and Ultra-HD technologies, more live
Slide 18: New technologies entering broadcast industry
18 NEW TECHNOLOGIES ENTERING BROADCAST INDUSTRY IT- IT-based network technologies - Faster and more flexible workflows with increased efficiency - 3 to 7 years horizon - EVS investment in start-up and internal R&D resources Cloud - Private cloud more than anything else - Both for B2B and B2C content
Slide 19: Important record entertainment customer win in APAC
19 IMPORTANT RECORD ENTERTAINMENT CUSTOMER WIN IN APAC EUR 10 million+ over three years Deal has been announced October 28, 2013 Unique state-of-the-art production and distribution solution comprised of most aspects of modern broadcasters workflows One of the leading and growing international media
Slide 20: Agenda
20 AGENDA Financial update Business update 2013 outlook Corporate update
Slide 21: Global autumn order book at October 31
21 GLOBAL AUTUMN ORDER BOOK AT OCTOBER 31 EUR 61.0 million, including EUR 29.1million to be invoiced in 2013 EUR 29.1 million at Oct 31 to be Big events rentals Y+1 61.0 Order book Y+1 invoiced in 2013 7.6 Big events rentals Y +56.5% - Good order diversity Order book Y 31.4 34.5 34.1 24.3 28.0 29.8
Slide 22: Outlook
22 OUTLOOK 2013 in line with earlier guidance – Sporting 2014 in weaker markets while investing in R&D 2013 - Order book of EUR 29.1 million -> 4Q13 shall be seasonally high (> EUR 34m) - No big events rentals in 2013 (verus EUR 10m in 2012) Sports - Strong APAC, rebound in Americas Leadership - FY1
Slide 23: Agenda
23 AGENDA Financial update Business update 2013 outlook Corporate update
Slide 24: 2013 interim dividend of EUR 1.16 – ex-date Nov 25
2013 interim dividend of EUR 1.16 – ex-date Nov 25 Dividend yield 5.4% on average 2013 for last 12 months 1.48+1.16 dividends Historical average pay out ratio of 85% since 2004 Evolution of dividend, share buyback and capital reimbursement, 3.00 2.91 in EUR per share 2.64 2.44 2.53 0.27 2.53 0.52 2.
Slide 25: Corporate calendar
25 CORPORATE CALENDAR Monday November 25, 2013: interim dividend: ex-date Wednesday November 27, 2013: interim dividend: record date Thursday November 28, 2013: interim dividend: payment date Thursday February 20, 2014: 4Q13 earnings Thursday May 15, 2014: 1Q14 earnings Tuesday May 20, 2014: Ordinar
Slide 26: EVS stock market data
EVS STOCK MARKET DATA Stock data (September 30, 2013): Shareholders (September 30, 2013) - Basis: 13,625,000 ordinary shares * M. Counson; 6.5% - Outstanding warrants : 410,900 @ 38.58 ** BNP Paribas; 4.2% - Treasury shares : 133,364 shares Ameriprise; 4.0%** (no share buyback in 9M13) ** Schroders;
Slide 27: Conclusions: Transformation year
27 CONCLUSIONS Transformation year 3Q13 in line with EVS expectations - FY13 revenue slightly below EUR 130 million and low double digit opex growth Global record order book of EUR 61.0 million - Strong seasonal 4Q13 (> EUR 34 million) - incl EUR 7.6m for 2014 big events rentals - incl major APAC en
Slide 28: Our journey to Rio2016
28 OUR JOURNEY TO RIO2016
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