EVS Broadcast Equipment SA · EURONEXT:EVS
EVS Broadcast Equipment SA — FY2012 Earnings Presentation
40 slides from EVS Broadcast Equipment SA's earnings presentation, Feb 21, 2013
Slide 1: EVS 2012 Results
EVS 2012 RESULTS e - . \' K February 21, 2013 . . = \ > Joop JANSSEN, Managing Director & CEO > Jacques GALLOY, Director & CFO, EVP Corporate Services > Geoffroy d OULTREMONT, VP Investor Relations & Corporate Communication www.evs.com
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”, “dcinex” or the “Company”} expecta
Slide 3: Executive Summary
EXECUTIVE SUMMARY 2012 financial results: record sales > > Sales +18.0% excl. Rentals and at constant currency All key metrics in line with guidance New strategy with > > > > A focus on 4 key markets A strengthened Executive Committee Anew brand A strong ambition with accelerated growth D = Maintain
Slide 4: Agenda
AGENDA » Financials 2012 >» New strategy » Outlook 2013 » Corporate
Slide 5: Agenda: Financials 2012
AGENDA D Financials 2012 >» New strategy » Outlook 2013 » Corporate
Slide 6: 2012: Record Sales Year
2012: RECORD SALES YEAR dD FY12 results: > > > > EUR 137.9 m revenue :+29.0% vs. FY11 DOB: +27.4%, Studio : +30.9%, D Growth in all regions particularly in NALA +43% > Non-sports revenues up 18% EUR 1.4m one-time costs relating to repositioning of the company EBIT margin of 44.4% (45.4% before one-t
Slide 7: Record Year
RECORD YEAR ’ +18% AT IDENTICAL RATES AND EXCL. BIG EVENTS 160 > 140 - 188 120 | 110 111. 110 100 | Studio 20 +29% 60 = 40 OB 20 | +30% 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 avs
Slide 8: Quarterly big events rentals, Studio and OB revenue
Quarter big events rentals Studio revenue (excl. rentals) OB revenue (excl. rentals)
Slide 9: 2004-2012 Big Events Direct Rentals
2004-2012 BIG EVENTS DIRECT RENTALS SUMMER GAMES & EURO EVERY 4 YEARS Rental & Services Revenues 10.0 in EUR million Innovation Service Remote Time zones mgt ~ - - a =avs
Slide 10: Quarterly revenue 2009-2012
23.5 19.5 17.4 17.6 17.6 17.6 16.4 16.8 14.6 14.0 13.9 12.8 13.1 11.4 10.7 9.7 9.5 9.5 8.6 9.0 9.2 7.3 7.9 6.9 6.7 6.2 6.8 6.6 6.3 6.0 6.7 6.9 5.8 6.0 5.6 4.6 4.9 4.7 4.6 3.5 4.1 3.5 4.1 3.3 3.1 2.8 3.1 2.1 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Slide 11: FY12 Record Sales, High Profitability
FY12 RECORD SALES, HIGH PROFITABILITY 11 SALES AND EBIT (BEFORE ONE-OFFS) GROWTH IN LINE WITH GUIDANCE In millions of EUR FY11 FY12 REVENUE 106.9 137.9 Cost of sales (23.1) (31.3) Gross margin 83.8 106.6 Gross margin % 78.4% 77.3% 77.3% Stable underlying gross margin % eee
Slide 12: FY12 Gross Margin at 77.3%
FY12 GROSS MARGIN AT 77.3% STRONG LEVERAGE EFFECT THANKS TO HIGHER SALES Vs 78.4% or EUR +22.8m gross margin variance FY12 vs FY11 78.1% : : » Positive sales leverage = >» Higher fixed costs due to more service and support: +12 people - to 117 >» EUR 1.0 million warranty provision oe & * < - & e » x
Slide 13: FY12 Record Sales, High Profitability
FY12 RECORD SALES, HIGH PROFITABILITY 13 SALES AND EBIT (BEFORE ONE-OFFS) GROWTH IN LINE WITH GUIDANCE In millions of EUR FY11 FY12 REVENUE 106.9 137.9 Cost of sales (23.1) (31.3) Gross margin 83.8 106.6 Gross margin % 78.4% 77.3% S&A (19.6) (20.2) R&D - gross (20.5) (23.6) R&D - tax credit 2.1 1.3
Slide 14: FY12 EBIT Margin at 44.4%
FY12 EBIT MARGIN AT 44.4% VS 41.3% OR EUR +24.9M IN FY11 .o ———_ —_ 3.9 i | - ws ss & © eo & & é & 2 © Ss s s eS ¢ Se & ° Gross margin impact from sales leverage Movements in provisions: positive in SG&A, negative in COGS Opex growth at 11.6% (14.3% excl. one-offs), better than expected Repositionin
Slide 15: FY12 Record Sales, High Profitability
FY12 RECORD SALES, HIGH PROFITABILITY 15 SALES AND EBIT (BEFORE ONE-OFFS) GROWTH IN LINE WITH GUIDANCE In millions of EUR FY11 FY12 REVENUE 106.9 137.9 Cost of sales (23.1) (31.3) Gross margin 83.8 106.6 Gross margin % 78.4% 77.3% S&A (19.6) (20.2) R&D - gross (20.5) (23.6) R&D - tax credit 2.1 1.3
Slide 16: Softer 4Q12 Sales as Expected
SOFTER 4Q12 SALES AS EXPECTED REPORTED In millions of EUR 4Q11 4Q12 REVENUE 30.9 25.6 Cost of sales (6.8) (8.4) Gross margin 24.1 17.2 Gross margin % 78.0% 67.3% S&A (5.5) (3.9) R&D - gross (5.6) (6.8) R&D - tax credit 0.3 0.4 EBIT before one-time costs 13.0 6.6 EBIT margin before one-time costs 41.
Slide 17: Strong Balance Sheet
STRONG BALANCE SHEET 79% RETURN ON EQUITY In millions of EUR Dec 2011 Dec 2012 ASSETS Goodwill and intangibles 2.0 1.6 Lands, buildings and other tangibles 14.0 21.1 dcinex and Mecalec at equity 8.6 8.5 Inventories 14.7 15.9 Receivables 24.0 21.1 Cash 19.9 21.4 Other assets 3.3 5.3 Total assets 86.5
Slide 18: Team Growth, +12% Over Year
TEAM GROWTH, +12% OVER 1 YEAR ° 49% IN INNOVATION (R&D) Headcount evolution at December 31, 2012 D» Net +48 FTEs in 12 months (+11.6%] 500 463 ao | In FTEs 7 3D > Still 10+ open positions 250 4 H 200 H 10 ' » Investment in o a 4 > Innovation: 50% R&D eeeeed a v xs ; SPSS SS Ss xs SAM LAS we & > Expa
Slide 19: dcinex FY11 FY12 results
In millions of EUR FY11 FY12 REVENUE 84.3 88.8 EBITDA 17.8 23.8 EBITDA margin 21.1% 26.8% Gain on Cinestore deal, gross 4.4 - Net result 5.6 1.0 EVS share 41.3% 41.3% dcinex contribution, net IFRS 2.3 0.4
Slide 20: Agenda: New Strategy
20 AGENDA » Financials 2012 Dd New strategy » Outlook 2013 » Corporate
Slide 21: New Strategy
NEW STRATEGY NEW STRATEGY 7! WITH AN EYE ON R102016 D Focus on four markets that are most attractive to EVS 463 Dd Realigned organization structure to optimally address the growing demand in non-sports markets 111 110 Studio Db Reinforced leadership team OB Dd New branding to reflect our new am biti
Slide 22: Focus on Attractive Markets
FOCUS NEW STRATEGY 22 ON 4 ATTRACTIVE MARKETS Dd Sports > Maintain our leadership position and grow with the market > Seize opportunities in emerging countries D Entertainment, News and Media > Very attractive markets with increasing demand for EVS quality products > Less seasonal than Sports > Succ
Slide 23: ENM, Big Events, Sports
ENM Big Events Sports 2004 2008 2012
Slide 24: Strong LT Growth Drivers
STRONG LT GROWTH DRIVERS NEW STRATEGY % MACRO TRENDS » Continuous growth in demand for live high quality video content » Ongoing transition to tapeless infrastructure (60-80%) >» Emerging markets >» Desire for more engaging coverage (eg. more cameras] >» Continued picture quality improvements (eg. H
Slide 25: Sports
SPORTS NEW STRATEGY 2 PREMIUM BRAND Dd = The market: > EVS addressable market: EUR 350 million - CAGR 2012-16: 4-5% Sport rights in USD billions 43 DEVS position > Combines previous “OB” + 50% of “Studio” > EVS market share: 33% with premium positioning > EVS remains its strong position in Sports OB
Slide 26: Entertainment, News and Media
ENM NEW STRATEGY % ENTERTAINMENT, NEWS AND MEDIA Dd = The market: > EVS addressable market: EUR 1.3 billion - CAGR 2012-2016: 0-5% > More and more demand for speed-to-air and more cameras DEVS position > EVScurrent market share: 2%, room for top and bottom-line growth > Growing demand for EVS live a
Slide 27: Potential in Emerging Countries
27 POTENTIAL IN EMERGING COUNTRIES NEW STRATEGY +33% CAGR 04-12 AND 29% OF FY12 SALES EUR millions 40 Driven by future big sporting events in emergings 23 ' i 2004 2008 2012 % of EVS sales: 9% 20% 29%
Slide 28: Services: Growing Demand
SERVICES: GROWING DEMAND AND GROWING PART OF EVS SALES 6% m@ Services 3% m Systems 2004 2008 2012 NEW STRATEGY % 6% Of FY12 sales 117 Operations experts ++ Customer satisfaction aoe
Slide 29: Re-designed Organization
RE-DESIGNED ORGANIZATION NEW STRATEGY % STRENGTHENED EXECUTIVE COMMITTEE CEO 4 markets /3 divisions & Executive Committee Focused R&D Sales : America’s, EMEA, APAC New operations and ENM professional services Entertainment Media structure & News Product lines Product lines & focused & focused R&D R&
Slide 30: One Brand - Markets - Colors
NEW STRATEGY NEW STRATEGY °° ONE BRAND - 4 MARKETS - 4 COLORS =V5& =VS Trade logo Corporate logo
Slide 31: Unique URL: www.evs.com
NEW STRATEGY NEW STRATEGY *" UNIQUE URL: WWW.EVS.COM www.evs-global.com www.evs.tv www.evs.com
Slide 32: Our Ambition
OUR AMBITION NEW STRATEGY 2 OUR ROAD TO RIO2016 Db Expected market growth CAGR13-16 : 0-5%, CAGR>16: 3-10% Db EVS aims to outperform market growth by a factor of 2 to 3 times Dd Current global market size : EUR 1.6 bn > Sports: 350 m, 33% market share > ENM: 1.300m, 2% market share Db Growth at prem
Slide 33: Agenda: Outlook 2013
33 AGENDA » Financials 2012 >» New strategy dD Outlook 2013 » Corporate
Slide 34: Global Winter Order Book at February
GLOBAL WINTER ORDER BOOK AT FEBRUARY 15 VERY SOLID START FOR AN UNEVEN YEAR 32.4 29.8 16.6 F "a T T T 2008 2009 2010 46.1 37.4 | Order book 25.2 for event 0 rentals m= Order book, excl. events rentals 24.7] Total 2011 2012 2013 34 -12.4% 13 vs 12 (excl. big events) +51% Vs last uneven year 2011 +EUR
Slide 35: Outlook 2013
OUTLOOK 2013 » Order book of EUR 37.4 million > > -12.4% excl. the big event rentals Low visibility b 2013 uneven year > vvvVov No big sporting events Opex increase by low double digit growth rate New products releases H1 <H2 Transforming year 35 Sports Leadership ENM Challenger Services Development
Slide 36: Agenda: Corporate
36 AGENDA » Financials 2012 >» New strategy » Outlook 2013 » Corporate
Slide 37: EVS Shareholding as of December 31, 2012
37 EVS SHAREHOLDING AS OF DECEMBER 31, 2012 * M. Counson; 6.5% Dd December 31, 2012 stock data: > Basis: 13,625,000 ordinary shares Outstanding warrants : 440,900 @38.49 > > Treasury shares : 170,053 shares > Mkt Cap @45.00: EUR 615 million BNP Paribas; 4.1% "* Fidelity; 3.0% ** * Ameriprise; 4.0% *
Slide 38: 2013 Corporate Calendar
38 2013 CORPORATE CALENDAR Thursday August 29, 2013 2Q13 earnings » March 15, 2013 Investor day (@RTL House) DB 6-11 April 2013 NAB TradeShow Dd Thursday May 16, 2013 1Q13 earnings Dd Tuesday May 21, 2013 Ordinary General Meeting DB Tuesday May 28, 2013 Final dividend: ex-date ) ) Thursday November
Slide 39: Conclusions
39 CONCLUSIONS » Record 2012 sales » Softer 4Q12 as anticipated > One-time costs relating to set up of the new strategy: EUR 1.4 million » New strategy to unlock new growth potential » Strong global order book of EUR 37.4 million >» Current low visibility for 2013 without big sporting events ee avs
Slide 40: Our Journey to Rio2016
OUR JOURNEY TO RIO2016 40
EVS Broadcast Equipment — FY2012 Earnings Presentation on 6ix