Evs Broadcast Equipment Sa · EURONEXT:EVS
Evs Broadcast Equipment Sa — Q2 2014 Earnings Presentation
25 slides from Evs Broadcast Equipment Sa's earnings presentation, Aug 28, 2014
Slide 1: EVS Broadcast Equipment 2Q14 results
EVS Broadcast Equipment 2Q14 results August 28, 2014 Joop JANSSEN, 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: Highlights 2Q14
HIGHLIGHTS 2Q14 Solid performance » 2Q14 results: In line with Q1 guidance and analysts’ expectations ~ EUR 35.6m revenue: +19.4% vs. 2013 (+9.0% excl. event rentals and at constant currency] — Sports: +20.8%, ENM : -17.8% — Performance in Americas remains strong (vs. weaker 2Q13], weaker in APAC —
Slide 4: Agenda
AGENDA [> Financial update >» Business update » 2014 outlook » General meetings » Annexes
Slide 5: Quarterly revenue evolution 2009-2014
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2009 2010 2011 2012 2013 2014
Slide 6: Quarterly revenue by segment 2010-2014
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 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
Slide 7: Revenue by region: Americas, EMEA, APAC
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 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014 Americas EMEA APAC
Slide 8: 2014: Revenue up by 19.4%
2014: REVENUE UP BY 19.4% Reported In millions of EUR Q1 3 > G — REVENUE 35.6 29.8 ig pero . Cost of sales (8.9) 7.1) — Reclassifications from R&D Gross margin 26.7 22.7 — Product mix Gross margin % 75.0% 76.3% nen i ea > Opex: +6.8% in 2014 + reclass. to COGS EBIT 12.9 9.7 — Dyvi Live / SVS negativ
Slide 9: 1H14: Revenue up by 3.7%
1H14: REVENUE UP BY 3.7% Reported In millions of EUR 1H14 1 H13 REVENUE 64.9 62.6 Cost of sales (16.3) (13.9) Gross margin 48.6 48.7 Gross margin % 74.9% 77.9% S&A (12.2) (12.1) R&D (12.5) (11.4) EBIT 22.9 24.1 EBIT MARGIN 35.3% 38.5% Financial result (0.0) 0.2 dcinex & mecalec at equity 0.2 0.1 Tax
Slide 10: 2Q14 EBIT margin at 36.2%, or EUR 12.9 million
2Q14 EBIT margin at 36.2%, or EUR 12.9 million ® EBIT margin increase is mainly due to higher sales 36.234 » Gross margin impact mainly from as _. _ “¢8 . & [| 06 sales leverage and reclassification »D Opex impacted by oe) — Dyvi Live / SVS (fully consolidated minority stake) — Investment in future
Slide 11: Staff growth: +26 people in 12 months
STAFF GROWTH: +26 people in 12 months 49% in innovation (R&D) Headcount evolution at June 30, 2014 550 In FTEs 485 excl. Dyvi Live / SVS 11 +5.4% in last 12 months Net +6 FTEs in 2Q14 Functional split: — Innovation: 49% R&D — Expansion: 37% sales & ops More than 25 nationalities Average age: 36 year
Slide 12: Strong balance sheet
12 STRONG BALANCE SHEET EUR 34.8 million cash In millions of EUR June 2014 _ Dec. 2013 D Investments in the new HQ ASSETS. — reflected in: Goodwill and intangibles 1.7 2.1 Lands, buildings and other tangibles 42.6 33.7 ~ EUR 34.2 million in Lands and dcinex and Mecalec at equity 10.0 98 Buildings In
Slide 13: 1H14 vs 1H13 revenue, EBITDA and net result
In thousands of EUR 1H14 1H13 REVENUE EBITDA EBITDA margin Net result EVS share Dcinex result, EVS share
Slide 14: Agenda
AGENDA >) Financial update [> Business update >» 2014 outlook » General meetings > Annexes 14
Slide 15: Business update: Ease up production
BUSINESS UPDATE Ease up production EVS’ Live production Asset Management Platform i) Streamlined for live and fast turnaround production » Offers a wealth of new capabilities and modules including: ~ web-based remote browsing and content exchange = ~ automated clip management ~ archive import/export
Slide 16: Business update: Video File Mastering
BUSINESS UPDATE: Video File Mastering Video file mastering 16 Mastering file-based media workflow and making the most of media assets XEConverter XPReader “_ MEDIARCHIVE MANAGEMENT —ipoiRectoR a0 MASTERING" MXF AS-02/11 - IMF - DCP Master - Closed Captions Evs Storage | MAD| MediArchive Director a _
Slide 17: Business update: Multimedia distribution
BUSINESS UPDATE Multimedia distribution Extend the content experience beyond the television screen, enabling broadcasters, content owners and content distributors to reach {and engage with) more diverse audiences with high-quality and targeted content — EVS has a unique position in distribution — (C
Slide 18: Agenda
18 AGENDA >) Financial update >» Business update [> 2014 outlook ] » General meetings > Annexes
Slide 19: Order book for event rentals
48.0 6.5 40.9 37.8 38.9 36.5 4.1 35.4 7.7 6.9 23.6 Order book for - event rentals 41.5 - 34.8 36.1 35.4 30.9 33.2 Orderbook 23.6 27/8, excl. events rentals 2008 2009 2010 2011 2012 2013 2014
Slide 20: Outlook
OUTLOOK No improvement expected in the short term 20 Order book of EUR 40.9 million for 2014 ~ Includes EUR 7.7 million for big sporting events live production server market conditions showing signs of moderate slowdown 2014 revenues expected to grow at low single digit vs. 2013 Continued investment
Slide 21: Agenda
21 AGENDA >) Financial update >» Business update » 2014 outlook [» General meetings ] » Annexes
Slide 22: General meeting
22 GENERAL MEETING » Special general meeting — Change of control clauses in relation with credit lines [financing of new headquarters) > Extraordinary general meeting — Renewal of authorized capital ~ Renewal of share buyback (stricter conditions than in the past) - used primarily to satisfy exercis
Slide 23: Agenda
23 AGENDA >) Financial update >» Business update » 2014 outlook » General meetings [> Annexes }
Slide 24: Corporate calendar
CORPORATE CALENDAR » September 12-16, 2014: > October 3, 2014: >» November 5, 2014: >» November 18, 2014: IBC tradeshow [Amsterdam] Combined General Meeting 24 Postponed Extraordinary General Meeting 3Q14 earnings
Slide 25: EVS stock market data
EVS STOCK MARKET DATA » Stock data (June 30, 2014): ~ Basis: 13,625,000 ordinary shares ~ Qutstanding warrants : 344,550 @ 41.04 — Treasury shares : 115,498 shares (no share buyback in 2014) » Market cap (August 26, 2014): ~ EUR 510 million (@ EUR 37.50) » Liquidity (last 12 months): ~ Standard velo
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