Slide 1: EVS Broadcast Equipment 2Q 2017 results
EVS Broadcast Equipment 2Q 2017 results August 31, 2017 Muriel DE LATHOUWER, Managing Director, CEO \ Yvan ABSIL, SVP, CFO = Geoffroy d’Oultremont, VP Investor Relations & Corporate Communication — www.evs.com EVE
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”, “the Group” or the “Company”) expe
Slide 3: Agenda
AGENDA [> Financial and business review ] >» Outlook =V&
Slide 4: Quarterly evolution 2013-2017
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2013 2014 2015 2016 2017
Slide 5: Quarterly evolution 2013-2017
1Q 2Q 3Q 4Q 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 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Slide 6: Quarterly evolution 2013-2017
1Q 2Q 3Q 4Q 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 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
Slide 7: Good gross margin thanks to product mix (2Q17)
2017 Good gross margin thanks to product mix In millions of EUR 2Q17 _2Q16 REVENUE 28.3 39.8 Cost of sales (7.2) (9.0) Gross margin 21.1 30.7 Gross margin % 74.5% 77.3% S&A (7.6) (7.4) R&D (6.0) (5.4) Other revenues 1.2 0.0 EBIT 7.9 17.4 EBIT MARGIN 28.0% 43.7% Financial result (0.5) 0.0 Taxes (1.9)
Slide 8: Good gross margin thanks to product mix (1H17)
1H17 Good gross margin thanks to product mix In millions of EUR 1H17 _1H16 REVENUE 52.8 66.6 Cost of sales (14.5) (17.0) Gross margin 38.3 49.7 Gross margin % 72.5% 74.6% S&A (13.7) (13.9) R&D (12.2) (11.3) Other revenues 1.3 1.1 EBIT 12.8 24.9 EBIT MARGIN 24.3% 37.4% Financial result (0.6) (0.7) Ta
Slide 9: FTE Evolution
FTE EVOLUTION 479 FTE at the end of June 2017 I... D -2 FTE vs 31/12/2016 D Average 479 FTE in 1H17 Headcount evolution (FTE) Headcount 06/2017 (FTE) 550 512 500 R&D 450 400 350
Slide 10: Strong Balance Sheet
10 STRONG BALANCE SHEET EUR 41.7 million cash In millions of EUR June 2017 Dec. 2016 ASSETS owen vena: a as > Healthy balance sheet, with a net ands an julldings . . Investments at equity 10 10 cash position of EUR 23.2 million: Inventories 14.9 13.5 EUR 41.7 million in cash & cash equivalents Recei
Slide 11: Cash Flow Statement
CASH FLOW STATEMENT In millions of EUR 1H17__1H16 > Healthy cash generation Net profit, groupe share 9.4 17.5 — Timing of income taxes payments Cash generated from operations 13.7 26.7 Income taxes paid (12.0) (5.4) Net cash from operating activities V7 21.1 >» Limited capex in 1H17 Net cash used in
Slide 12: Business Highlights
12 BUSINESS HIGHLIGHTS » First half market trends ~ 4K upgrades, as part of replacement cycle — Adoption of IP continues — Customers cautious with investments as their revenues are under pressure » Preparing for IBC tradeshow — Innovation highlighted in an industry in mutation =V&S
Slide 13: IBC Tradeshow ETI Masters
13 IBC TRADESHOW ETI MASTERS S.CORE Master - IP routing and orchestration Central orchestrator [management of live IP video flows) within an IP-connected network Guarantee the delivery of bandwidth-demanding live media throughout the infrastructure, creating a more efficient overall workflow Hr tt Q
Slide 14: IBC Tradeshow
IBC TRADESHOW X.ONE - all-in-one tool for small live production Unique tool allowing a single operator to manage small live productions Support of 6 cameras Replays and highlights Graphics Mixing Full IP - GPU-based technology Reduces production costs 14
Slide 15: Agenda
15 AGENDA >) Financial and business review [> Outlook ] =V&
Slide 16: Outlook - Order book at August 25, 2017: EUR 37.4 million
OUTLOOK - ORDER BOOK AT AUGUST 25, 2017: EUR 37.4 MILLION -9.6% compared to last year -9.6% vs last year [+10.9% excl. big event rentals) Order book is 50-50% OB / studio 80-85% of EUR 37.4 million order book to be invoiced on 3Q17 Includes EUR 0.7 million rentals for big events, and the 2017 portio
Slide 17: Outlook
7 OUTLOOK 2017 guidance > For 2017, there are no major big event planned >» We expect revenues to be in the EUR 115 million - EUR 125 million range >» We forecast a moderate increase of our operating expenses to sustain our efforts in innovation and new product developments =V&S
Slide 18: Geoffroy d'Oultremont
Geoffroy d’Oultremont VP Investor Relations & Corporate Communications Corpcom@evs.com Tel: +32 4 361 70 14