Slide 1: EVS Broadcast Equipment 2015 results
EVS Broadcast Equipment 2015 results February 18, 2016 Muriel DE LATHOUWER, Managing Director, CEO Yvan ABSIL, SVP, CFO — Geoffroy d’‘OULTREMONT, VP Investor Relations and 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 [> 2015 review ] » Thoughts on 2016 & Outlook > Annexes =V&S
Slide 4: EVS: A Strong Leader in an Industry in Transition
EVS: A STRONG LEADER IN AN INDUSTRY IN TRANSITION Dd FY15: ~ FY15 revenue of EUR 118.5 million, above EUR 110-115 million guidance — Strong 4Q15 revenue driven by releases of budgets around year-end after months of high cautiousness ~ Announcement of XT2 end of life at the end of 2015 generated incr
Slide 5: Stable Revenue in 2015, excl. Big Events
STABLE REVENUE IN 2015, EXCL. BIG EVENTS Evolution of revenue excl. big events Ie 140 ™ Studio 127.9 128.6 117.1 116.6 120 @ Mobile 106.1 cn! 100.8 100 80 79.4 60 51.6 45.3 : 40 32.3 i 27.0 27.0 25.9 : t uf ' : | 2.0 5.0 2 oe 1998 1995 1996 1997 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2007
Slide 6: 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2013 2014 2015
Slide 7: 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 2013 2014 2015 2013 2014 2015 • •
Slide 8: 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 2013 2014 2015 2013 2014 2015 •
Slide 9: FY15 Reported Results
FY15 - New building {depreciation and move} Opex: +1.6% in 2015 [-1.6% at cst currency) + Reversal provision accounts receivable - New building (depreciation and move] Reported In millions of EUR FY15 mas D Revenue: REVENUE 118.5 131.4 + Positive effect from currency Cost of sales -34.3 -33.6 Gross
Slide 10: 4Q15 Reported Results
10 4Q15 Reported In millions of EUR 4Q15 _4Q14 >» Gross margin: REVENUE 42.9 30.5 + Higher sales — ; — Write-offs on inventories Cost of sales -11.1 -8.3 = New building Gross margin 31,7 22.3 - Negative effect from currency Gross margin % 74.0% 73.0% S&A “71 -6.6 >» Opex: +3.7% in 4Q15 R&D -6.6 -6.6
Slide 11: At Constant Currency 2015
"1 2015 At constant currency 15 2015 In millions of EUR Cst currenc reported REVENUE 111.6 118.5 i314 >» Currency effect: Cost of sales -33.5 -34.3 -33.6 + EUR 6.9 million on revenue Gross margin 78.1 a2 718 ~ EUR 0.8 million on gross margin Gross margin % 70.0% NAG 74.5% SaA 25.2 26.6 251 — EUR 1.5
Slide 12: 512
512 486 485 463 415 366 276 233 167 188
Slide 13: Strong Balance Sheet
13 STRONG BALANCE SHEET EUR 22.6 million cash In millions of EUR Dec. 2015 Dec. 2014 ASSETS Goodwill and intangibles 1.5 1.5 . Lands and buildings 48.1 46.1 > Investments in the new HQ Investments at equity 0.9 0.8 reflected in: Bonds & loans - 6.5 — EUR 48.1 million in Lands and Buildings Inventori
Slide 14: Agenda
14 AGENDA Dd 2015 review [» Thoughts on 2016 & Outlook ] > Annexes =V&S
Slide 15: Outlook - Order Book at February 15, 2016: EUR 50.4 Million
15 OUTLOOK - ORDER BOOK AT FEBRUARY 15, 21016: EUR 50.4 MILLION +4.6% compared to last even year Supported by upgrades from XT2 to XT3 50.4 46.1 48.2 Around 2/3 of EUR 41.6 million order book to be invoiced on 1Q16 37.4 ™ Order book for event rentals Includes EUR 8.8 million rentals for big events,
Slide 16: NEP: Record Contract for EVS
16 NEP: RECORD CONTRACT FOR EVS Securing the business with key customer for the coming years Multi-year contract (2016/2018) Upgrades of EVS servers Confirms trust of #1 player in live video production in EVS continuous leadership Contract valued slightly above USD 15 million Delivered over the 2016
Slide 17: Case Study: Super Bowl
CASE STUDY Super Bowl 50 Bigger and bigger Record breaking audience 112 million viewers Record TV production 50+ cameras on the field Record EVS contribution 56 XT3 servers - 235 terrabites of content controlled with IPDirector 4K replay and zooming 30+ EVS operators
Slide 18: Case Study: Super Bowl on Facebook
‘Super Bow! 50 on Facebook CASE STUDY Super Bowl » Social Bowl — |In-stadium — 13,000 wifi routers - 35,000 connected devices during the game — Off-stadium: ~ Most important event on social media: — 60 million users on Facebook — 27 million tweets — Record streaming on all platforms
Slide 19: Big Sporting Events
BIG SPORTING EVENTS How important they are for EVS » Source of innovation » Very important showcase for EVS technologies, with sophisticated workflows » Evidence of the leadership of EVS vous » Around EUR 10 million additional revenue in 2016
Slide 20: Big Events in 2016
20 BIG EVENTS in 2016 >» EURO in France: ~ 24 teams (16 in 2012), playing 51 games (31 in 2012) in 10 stadiums [8 in 2012) — Live broadcasts of the games in 230 countries around the globe — EVS equipment rented in venues and IBC » Olympics in Rio: — Most important sport event of the year — 3.6 billi
Slide 21: Content Consumption
CONTENT CONSUMPTION | : NEW VIEWERS CONSUMPTION BEHAVIOURS (NEXT GENERATION) MORE CONTENT PRODUCED AND DISTRIBUTED MORE LIVE VIDEO CLIPS WATCHED MORE FAN ENGAGEMENT AND PERSONALIZATION HIGHER QUALITY OF IMAGE (UHD, HDR] =.
Slide 22: Live Sports Opens New Opportunities
Slide 23: Evolution
:VOLUTION EN | L MANAGE ADD MORE TO THE LIVE <i User generated content = MANAGE LIVE CONTENT cf DIS REACH BROADER AUDIENCES
Slide 24: Conclusion
CONCLUSION 2015 higher than expected thanks to strong year-end EVS confirms his leadership in live video production Industry still in mutation 2016: — Order book of EUR 50.4 million for 2016 at February 15 — Big event year (around EUR 10 million rentals for big events) — Controlled opex growth, also
Slide 25: Agenda
25 AGENDA Dd 2015 review » Thoughts on 2016 & Outlook [> Annexes ] =V&S
Slide 26: Corporate Calendar
26 CORPORATE CALENDAR >) Thursday May 12, 2016: 1Q16 results ») Tuesday May 17, 2016: Ordinary General Meeting >» Thursday August 25, 2016: 2Q16 results >» Thursday November 10, 2016: 3Q16 results =V&S
Slide 27: Geoffroy d'Oultremont
Geoffroy d’Oultremont VP Investor Relations & Corporate Communications Corpcom [a] evs.com Tel: +32 4 361 70 14