Evs Broadcast Equipment Sa · EURONEXT:EVS
Evs Broadcast Equipment Sa — Q3 2018 Earnings Presentation
29 slides from Evs Broadcast Equipment Sa's earnings presentation, Nov 15, 2018
Slide 1: EVS Broadcast Equipment Results 3Q 2018
EVS BROADCAST EQUIPMENT RESULTS 3Q 2018 November 15, 2018 Dr. Pierre DE MUELENAERE, Chairman of the Board & Interim CEO Yvan ABSIL, CFO Geoffroy d’‘OULTREMONT, VP Investor Relations & Corporate Communication =VSE
Slide 2: Agenda
AGENDA Business update >» Dr. Pierre De Muelenaere, Chairman of the Board and Interim CEO =V5& Financial update D Yvan Absil, CFO Outlook » Yvan Absil, CFO Conclusions » Dr. Pierre De Muelenaere Questions & Answers
Slide 3: Business Update - Topics
BUSINESS UPDATE - TOPICS CEO ad Interim EVS - Facts & Figures Special situation in H1-2018 Action plan for H2-2018 Q3 Results and outlook =V5
Slide 4: Dr. Pierre De Muelenaere
DR. PIERRE DE MUELENAERE » 60 years, married with Jocelyne, 3 children (Julie, Guillaume, Olivier) D Engineer in microelectronics, PhD in Artificial Intelligence and OCR D> Founder of IRIS Group and CEO for 33 years DEVS Chairman of the Board, since January 15, 2018 DEVS Interim CEO, since July 15,
Slide 5: EVS Facts & Figures
EVS FACTS & FIGURES Founded in 1994 (Pierre Lhoest, Laurent Minguet, Michel Counson) Profitable since more than 20 years Listed since 1998 A World-wide Leader in Live Slow Motion A Growth and Maintain Strategy A Big Events (e.g. Olympic games) impact every 2 years A highly profitable company (EBIT M
Slide 6: EVS Live Focus
EVS LIVE FOCUS MISSION We design cutting edge video production technologies and solutions to create unique stories out of every live events =V5
Slide 7: 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 — |IP-smtp2110 - 4K — Remote production — Etc Maintain presence in OB Vans (outside B
Slide 8: Boosted Density
BOOSTED DENSITY 1M / 6CH UHD-4K (2160p) / +12 CHANNELS OF / +12 CHANNELS OF HD (720p/1 / HDR SUPPORT / NEW PROXY H.264 HDR [¥.264| UHD_M& 1080p =V5
Slide 9: Growth: EVS is developing a range of new solutions for new applications
GROWTH: EVS IS DEVELOPING A RANGE OF NEW SOLUTIONS FOR NEW APPLICATIONS DYVI > » Find new growth opportunities by Live Video Production leveraging the IP technologies Switcher : . » Extend the product portfolio leading to a larger customer reach 5 - E- t Fi ~ IT corporates Live Video Assistance - Re
Slide 10: Innovation: Pioneering work on artificial intelligence to boost EVS products
10 INNOVATION: PIONEERING WORK ON ARTIFICIAL INTELLIGENCE TO BOOST EVS PRODUCTS Use cases | @ AL. DRIVEN PRODUCT Player and Pitch detection - off-side detection Al DRIVEN CONCEPT 2 Automatic framing
Slide 11: EVS was facing a special situation in H1-2018
EVS WAS FACING A SPECIAL SITUATION IN H1-2018 11 D The EVS board has been reshuffled with two leavers and two newcomers (Dr. Pierre De Muelenaere and Vincent Werbrouck] > Pierre mission was to improve stability and efficiency => Good progress so far >» The H1-2018 is the worst of last 5 years (reven
Slide 12: The Board decides that a special action plan is needed
12 THE BOARDS DECIDES THAT A SPECIAL ACTION PLAN IS NEEDED D With the help of EVS Management, a Fight-Back Plan has been designed for 2H2018: D Improve OPEX D Maximize the impact of commercial actions D Maximize EBIT > With Strong support of the Board and the management, the Fight-Back plan is being
Slide 13: Thanks to strong actions, EVS improves the OPEX guidance
13 THANKS TO STRONG ACTIONS, EVS IMPROVES THE OPEX GUIDANCE Original OPEX Guidance: moderate growth on top of the structural salary increase (42%) in Belgium New OPEX Guidance: less than 2% =V5
Slide 14: New key products released and significant deals won
14 THANKS TO THE COMMITMENT OF ALL EVS TEAMS, NEW KEY PRODUCTS HAVE BEEN RELEASED AND SIGNIFICANT DEALS HAVE BEEN WON! Products D Shipping of XT-Via (August 2018) d > Launch of Xeebra 2.0, including the Al- enabled off-side indicator (August 2018} > d D> Launch of X-One 1.1, all-in-one simple live p
Slide 15: Outlook of EVS in H2-2018 is improved
15 WITH STRONG ACTIONS THE OUTLOOK OF EVS IN H2-2018 IS IMPROVED Q3 is a strong quarter compared to previous years 3Q revenue The Order Book is higher than previous years! a 36.0 . . 28.2 230 OS EVS team is working hard to make a strong H2 The XT-Via platform is ready for 4K, IP, 1080p and future pr
Slide 16: Agenda
AGENDA 16 » Business update >» Dr. Pierre De Muelenaere, Chairman of the Board and Interim CEO D Financial update D Yvan Absil, CFO =V5 » Outlook » Yvan Absil, CFO » Conclusions » Dr. Pierre De Muelenaere >» Questions & Answers
Slide 17: 9M18 Highlights
17 9M18 HIGHLIGHTS ACCELERATION AFTER WEAK 1H18 » 9M Revenue D Still 6.7% behind 9M17, but acceleration in 3Q18 with +12.9% yoy » Traction from XT-Via platform and maximization of the impact of commercial actions » Continued challenging market conditions D 9M Profitability » Gross margin impacted by
Slide 18: 0.6 3.9 21.8 8.2 13.6 18.6 0.2 1.0 4.0 0.0 0.7 1.7 12.4 10.7
0.6 3.9 21.8 8.2 13.6 18.6 0.2 1.0 4.0 0.0 0.7 1.7 12.4 10.7 7.2 14.9 11.8 13.5 7.1 4.2 11.6 3.8 11.4 8.9 8.9 22.2 11.0 21.0 20.6 17.0 16.5 17.4 16.6 13.1 15.1 13.5 14.0 14.2 12.7 9.7 6.4 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2015 2016 2017 2018
Slide 19: 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 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2015 2016 2017 2018 2015 2016 2017 2018
Slide 20: 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 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2015 2016 2017 2018 2015 2016 2017 2018
Slide 21: Consolidated Income Statement 3Q 2018
21 CONSOLIDATED INCOME STATEMENT 3Q 2018 In millions of EUR 3018 3Q17 D Revenue: +12.9% yoy REVENUE 29.6 26.3 . > Gross margin: -1.7ppt yoy Cost of sales -9.2 “1.7 + Product mix Gross profit 20.4 18.5 © Write-offs j 0/ 0, Gross margin 68.8% 70.5% > OPEX: -1.9% yoy S&A -6.5 -6.6 * Successful cost red
Slide 22: Consolidated Income Statement 9M 2018
22 CONSOLIDATED INCOME STATEMENT 9M 2018 D> Revenue: -6.5% yoy In millions of EUR 9M18 9M17 > Gross margin: -4.2ppt yoy REVENUE 73.7 79.0 + Lower revenue » Higher write-offs Cost of sales -23.8 -22.2 * Product mix Gross profit 49.9 56.8 Gross margin % 67.7% 71.9% > OPEX: +1.1% yoy . 0: jon int S&A -
Slide 23: Strong Balance Sheet
23 STRONG BALANCE SHEET D EUR 12.9 million net cash from operating activities YTD » Total equity of EUR 117.2 million [+EUR 11.9 million since the end of 2017) ») EUR 27.8 million net cash position at the end of September Share buyback program announced on October 24 Interim gross dividend of EUR 0.
Slide 24: Agenda
AGENDA 24 » Business update >» Dr. Pierre De Muelenaere, Chairman of the Board and Interim CEO D Financial update D Yvan Absil, CFO » Outlook » Yvan Absil, CFO =V5 » Conclusions » Dr. Pierre De Muelenaere >» Questions & Answers
Slide 25: Record order book @ October 31: EUR 34.7 million
25 RECORD ORDER BOOK @ OCTOBER 31: EUR 34.7 MILLION » 2018 order book is +37.7% compared to last year 34.7 >» 60% of order book is OB 29.1 D 2018 still includes EUR 1.2 million of big event 224 rentals in 4Q18 18.9 D EUR 10.7 million for 2018 and beyond il 2012 2013 2014 2015 2017 =V5&
Slide 26: 2018 Guidance
26 2018 GUIDANCE CONFIRMATION OF REVENUE GUIDANCE - IMPROVEMENT OF OPEX GUIDANCE » Given the expected acceleration of the business in 2H, we confirm the revenue guidance of EUR 115 million to EUR 130 million > XT-VIA supporting sales in 2H >» Good momentum on the new products D We expect opex to gro
Slide 27: Agenda
AGENDA 27 » Business update >» Dr. Pierre De Muelenaere, Chairman of the Board and Interim CEO D Financial update D Yvan Absil, CFO » Outlook » Yvan Absil, CFO » Conclusions » Dr. Pierre De Muelenaere =V5 >» Questions & Answers
Slide 28: Conclusions
28 CONCLUSIONS A special year for EVS A strong action plan with special commitment from all EVS Teams in H2 Great products released by the R&D! Important wins by the sales team! Opex guidance is improved [less than 2%] Revenue guidance is confirmed (EUR 115-130 million) Interim dividend is maintaine
Slide 29: Geoffroy d'Oultremont
Geoffroy d’Oultremont VP Investor Relations & Corporate Communications Corpcom@evs.com Tel: +32 4 361 70 13
EVS Broadcast Equipment — Q3 2018 Earnings Presentation on 6ix