Slide 1: EVS Broadcast Equipment FY14 results
EVS Broadcast Equipment FY14 results February 19, 2015 Muriel DE LATHOUWER, Managing Director & CEO Magdalena BARON, CFO Geoffroy d’‘OULTREMONT, VP Investor Relations and 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”) expect
Slide 3: Agenda
AGENDA [» Executive summary ] » 2014 and 4Q14 financials » Business and corporate update » Outlook » Annexes
Slide 4: Executive Summary
EXECUTIVE SUMMARY » Corporate — Appointment of Muriel De Lathouwer as Managing Director & CEO — Acquisition of 74.1% of SVS and 5% of DYVI - now fully owned by EVS — Closing of dcinex disposal - EUR 2.0 million capital gain ~ Change in segment reporting (OB, Studio & others) D 2014 & 4Q14 financials
Slide 5: Agenda
AGENDA » Executive summary [> 2014 and 4Q14 financials ] » Business and corporate update » Outlook » Annexes
Slide 6: Key figures: 2014 revenue in line with expectations
KEY FIGURES: 2014 REVENUE IN LINE WITH EXPECTATIONS +1.8% vs 2013, -8.9% EXCL. BIG EVENT RENTALS 160 140 - =—®EBIT margin 138 109 131 Sales: 120 + @ Big event rentals 100 4 Mm ENM [excl. big event rentals] ™ Sports (excl. big event rentals) 80 5 36% 39% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2
Slide 7: Quarterly revenue evolution
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2009 2010 2011 2012 2013 2014
Slide 8: Revenue by segment and region
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 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
Slide 9: Revenue breakdown over time
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 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2010 2011 2012 2013 2014
Slide 10: dcinex and SVS/DYVI financial impact
10 DCINEX AND SVS/DYVI FINANCIAL IMPACT » dcinex disposal on October 20: — P&L: Capital gain of EUR 2 million ~— Balance sheet: EUR 6.4 million Ymagis bonds and EUR 151,000 dcinex bonds still to be repaid to EVS — Cash flow statement: EUR 1.6 million cash, EUR 1.1 million dcinex bond repaid by dcine
Slide 11: 4Q14: revenue down by 20.8%
4014: REVENUE DOWN BY 20.8% (-22.4% excl. big events, at cst currency). Reported In millions of EUR 4Q14 _4Q13 REVENUE 30.5 38.5 Cost of sales (8.2) (10.3) Gross margin 22.3 28.2 Gross margin % 73.0% 73.3% S&A (6.6) (5.8) R&D (6.6) (6.0) EBIT 8.9 15.9 EBIT MARGIN 29.1% 41.3% Financial result 0.3 (0.
Slide 12: FY14: revenue up by 1.8%
12 FY14: REVENUE UP BY 1.8% [(-8.9% excl. big events, at cst currency) Reported In millions of EUR FY14 FY13 REVENUE 131.4 129.1 Cost of sales (33.6) (31.6) Gross margin 97.8 97.5 Gross margin % 74.5% 75.5% S&A (25.1) (24.4) R&D (25.2) (22.8) EBIT 46.1 48.4 EBIT MARGIN 35.1% 37.5% EBIT before SVS-DY
Slide 13: Strong balance sheet
13 STRONG BALANCE SHEET EUR 25.6 million cash In millions of EUR Dec. 2014 Dec. 2013 ‘ASSETS » Investments in the new HQ Goodwill and intangibles 1.5 2.1 reflected in: Lands, buildings and other tangibles 47.9 33.7 ~ EUR 47.9 million in Lands and Buildings Investments at equity 0.8 8.5 ~ LT liabilit
Slide 14: Agenda
14 AGENDA » Executive summary » 2014 and 4Q14 financials [> Business and corporate update ] » Outlook » Annexes
Slide 15: New internal organization
15 NEW INTERNAL ORGANIZATION Four key markets CEO | i T I T 1 EVP svP svP svP svP cco Market & product CTO CFO Human Resources Benefits of the streamlined structure: >» 5direct reports to the CEO > Executive management working as a team >» Structure more in line with the product portfolio architectu
Slide 16: Streamlined organization
16 STREAMLINED ORGANIZATION resulting in a better control of opex growth D +6.8% average FTE in 2014 Headcount evolution (FTE) » More controlled recruitments (net -2 FTEs in 4Q14) D Internal mobility 486 366 SVS/DYVI in FTEs and % SRN AN RN AN RD DDD Sd gd gh gh gh gh gh gh gh oh hh gg gg gh gh Fg g
Slide 17: dcinex and SVS/DYVI strategic moves
17 DCINEX AND SVS/DYVI STRATEGIC MOVES > dcinex disposal is a strategic move for both companies: eis nex — The sale of dcinex to Ymagis results in the creation of leading player in digital cinema in Europe — EVS refocus on its core business >» Acquisition of remaining shares in SVS-DYVI allows more
Slide 18: Strong position maintained in high-end OB vans
18 STRONG POSITION MAINTAINED IN HIGH-END OB VANS Clear potential for future upgrades 90+% market share confirmed Only 17% are most advanced platform 100% 75% 50% 25% 0% 2010 2014 mEVS Others EVS 4ch #EVS é6ch #EVS 8ch &® Others ... but customers have lengthened their investment cycles Source: Live-
Slide 19: Market slowdown persists
MARKET SLOWDOWN PERSISTS Disconnection between trends and investments projects 19 (Source: Devoncroft Big Broadcast Survey 2014) Multi-Platform Delivery oanon Don UW PW NTR my o IP Networking, Delivery File-Based / Tapeless 4K / UHD Cloud Services / Cloud Technology vs. Transition to HDTV operations
Slide 20: Agenda
20 AGENDA » Executive summary » 2014 and 4Q14 financials » Business and corporate update [> Outlook ] >» Annexes
Slide 21: Global order book at February
21 GLOBAL ORDER BOOK AT FEBRUARY 15 EUR 29.8 million EUR 29.8 million at Feb 15 to be invoiced in 2015 EUR 2.6 million for 2016 and beyond Compared to EUR 9.6 million last year -24.3% yoy excluding big events Continued market slowdown Limited big events rentals in 2015 Around 80% to be invoiced in 1
Slide 22: Capex and investment perspective
CAPEX AND INVESTMENT PERSPECTIVE Capex >» New building EUR 58.5 million investment, gross ({cash-out 2012-2015) — EUR 5.6 million subsidies — =investment net of subsidies = EUR 52.9 million — Remaining EUR 7.1 million capex in 2015 Depreciation » Depreciation expected to be slightly above EUR 3 mill
Slide 23: Outlook
23 OUTLOOK 2015 guidance » Order book of EUR 29.8 million for 2015 at February 15 » Very limited visibility on the top line as usual and continued slowdown in the market: —- Macro-economic headwinds ~ Longer investment cycles » Opex is expected to grow at high single digit compared to 2014: ~ Invest
Slide 24: Agenda
24 AGENDA » Executive summary » 2014 and 4Q14 financials » Business and corporate update » Outlook [> Annexes ]
Slide 25: Corporate calendar
25 CORPORATE CALENDAR » May 12, 2015: 1Q15 earnings D May 19, 2015: Ordinary General Meeting >» August 27, 2015: 2Q15 earnings >» November 13, 2015: 3Q15 earnings
Slide 26: EVS stock market data
EVS STOCK MARKET DATA 26 » Stock data (Dec. 31, 2014): ~ Basis: 13,625,000 ordinary shares ~ Qutstanding warrants : 372,050 @ 39.85 — Treasury shares : 140,498 shares (127,500 shares bought back in 2014) » Market cap (Feb. 15, 2015): ~ EUR 410 million (@ EUR 30) > Liquidity (2014): ~ Standard veloci