Evs Broadcast Equipment Sa · EURONEXT:EVS
Evs Broadcast Equipment Sa — H1 2020 Earnings Presentation
37 slides from Evs Broadcast Equipment Sa's earnings presentation, Aug 27, 2020
Slide 1: EVS Broadcast Equipment – Results of 2020 H1
EVS BROADCAST EQUIPMENT – RESULTS OF 2020 H1 August 27th 2020 / The content of this presentation is proprietary, confidential and solely for the use of the intended recipients. It may not be reproduced or distributed, in whole or in part, to any third party without the consent of EVS.
Slide 2: Disclaimer
2 DISCLAIMER Forward Looking Statements This presentation contains forward-looking statements with respect to the business, financial condition, and results of operations of EVS and its affiliates. These statements are based on the current expectations or beliefs of EVS's management and are subject
Slide 3: Agenda
3 /// AGENDA /// Agenda ⁄ Business Update ⁄ Financial Update ⁄ Guidance ⁄ Conclusions ⁄ Questions & Answers
Slide 4: 2020/H1 Highlights
4 2020/H1 HIGHLIGHTS ⁄ 2020/H1 Revenue: EUR 39.6 million – Axon revenues included from May 1st (-3.5% YoY and -4.8% YoY excluding big events rentals) − Without Axon perimeter EUR 37.8 million (-9.3% YoY excluding big events rentals) ⁄ COVID impacts: − Impact on revenues but key wins to feed a good o
Slide 5: EVS Business Update
5 EVS BUSINESS UPDATE ⁄ EVS STRATEGY HIGHLIGHTS ⁄ COVID IMPACT ON EVS BUSINESS & OPERATIONS ⁄ AXON INTEGRATION STATUS ⁄ FIRST PRODUCTIONS WITH LSM-VIA ⁄ KEY CONTRIBUTION FOR DIFFERENT PILLARS IN 2020/H1
Slide 6: EVS Strategy Highlights
6 EVS STRATEGY HIGHLIGHTS ⁄ Standard “Live” solutions – Custom workflows • EVS focuses on “live”. • EVS focuses on delivering standard “live solutions” with custom workflows based on modernized solutions leveraging latest technologies (IP, AI, Virtualization, Micro-services, Open APIs, Cloud) ⁄ Addr
Slide 7: COVID Impact on EVS Business & Operations
7 COVID IMPACT ON EVS BUSINESS & OPERATIONS ⁄ Impacts on revenues, order intake and order book: • Following a strong start of the year, revenues & order intake slow down due to Covid • Most revenues from Big Events Rental – major sports summer events - are postponed to 2021 • Order intake EVS only o
Slide 8: Remote Production – Many Different Operating Models
8 REMOTE PRODUCTION – MANY DIFFERENT OPERATING MODELS Covid impact Covid-19 has accelerated this case
Slide 9: NAB & IBC Cancelled … But Many Rich Remote Interactions Ongoing
9 NAB & IBC CANCELLED … BUT MANY RICH REMOTE INTERACTIONS ONGOING NAB & IBC have been cancelled but currently replaced by hundreds of private interactions and virtual IBC @EVS with customers all over the world being calls, video conference sessions, remote demonstrations and 1000+ interactive & pers
Slide 10: Who Is Axon
10 WHO IS AXON Axon presence in large OBVans Multiviewer OR Stream Processing (12+ cams) A few percents 30% behind main competitors, mainly due to limited geographical coverage. NB OBVans with Axon NB OBVans without Axon According to our internal data (consolidating internal & external sources – Mar
Slide 11: EVS Simplified Blueprint Defined During PLAYForward
11 EVS SIMPLIFIED BLUEPRINT DEFINED DURING PLAYFORWARD: STANDARD SOLUTIONS – CUSTOM WORKFLOWS 3RD PARTY APP REPLAY & LIVE PRODUCTION ASSET MEDIA HIGHLIGHTS SYSTEMS MANAGEMENT INFRASTRUCTURE PRODUCTION 3RD PARTY PLATFORM INTEGRATIONS Resource Asset & Workflow Support & AI & Open Management Management
Slide 12: Axon Integration Calendar
12 AXON INTEGRATION CALENDAR DIFFERENT WAVES OF CO-DESIGNED INTEGRATION May 1st June 30th Sept 15th EOY20 Mid 21 IMO Closing We are here Lean operation Year end preparation Wave-4 Virtual IBC Stabilization & preparation macro-plan Wave-3 Integration development Wave-2 Management Team setup Wave-1 IM
Slide 13: Axon Integration Status
13 AXON INTEGRATION STATUS ⁄ Excellent team spirit between team members from both sides with strong desire to win ⁄ Tasks assigned for Wave-1 successfully achieved – on time and better than budget! • Key deal facilitated thanks to customer trust in EVS • First consolidated RFI answer provided a few
Slide 14: 2020/H1 – Live Audience Business Key Deals & Deployments
14 2020/H1 – « LIVE AUDIENCE BUSINESS » KEY DEALS & DEPLOYMENTS Cerebrum control system to & Neuron stream processing at Important renewal project of a large the core of US league sports center based CanalPlus on XT-VIA for 1080p & 4K. Large multi-million modernization France media contracts based o
Slide 15: 2020/H1 – Live Service Providers Key Facts & Deals
15 2020/H1 – « LIVE SERVICE PROVIDERS » KEY FACTS & DEALS Support of LIV SuperBowl Continuous flow LSM-VIA launch operated by Fox Sports of upgrades to XT-VIA Many LSPs continue to upgrade Launch of new LSM remote, the their installed base with latest XT- new de-facto standard for replay 1080p HDR
Slide 16: LSM-VIA – The New EVS Remote for Replay & Slow Motion
16 LSM-VIA – THE NEW EVS REMOTE FOR REPLAY & SLOW MOTION … From the legendary EVS remote … … to EVS LSM-VIA 1 Adoption/Adaptation is a matter of minutes 5 2 7 6 3 4 Keeping the best of the legend: And further enhance it with: Same feeling with job & lever IP & scalability Same functions Touc
Slide 17: Co-Designed with EVS Operators and Launched on May 26th
17 … CO-DESIGNED WITH EVS OPERATORS AND LAUNCHED ON MAY 26TH AFTER 25 YEARS 3 rounds of engagement in different regions of the world since 2017 to: Identify practices & collect the requirements based on pain points & frustrations Present a first prototype and discuss use cases and priorities P
Slide 18: EVS Reschedules 2021 Summer Events with Host Broadcasters
18 2020 – EVS RESCHEDULES 2021 SUMMER EVENTS WITH HOST BROADCASTERS MAJOR 2021 MULTI-SPORTS EVENT EUROPE WIDE TOURNAMENT IN 2021 IN ASIA FOR LEADING SPORT FEDERATION
Slide 19: EVS Financial Update
19 EVS FINANCIAL UPDATE ⁄ 2020/H1 FINANCIAL HIGHLIGHTS ⁄ 2020/H1 REVENUES ⁄ GEOGRAPHICAL SPLIT ⁄ REVENUE DESTINATION SPLIT ⁄ CONSOLIDATED INCOME STATEMENT ⁄ TEAM MEMBERS ⁄ STRONG BALANCE SHEET
Slide 20: 2020/H1 Financial Highlights
20 2020/H1 FINANCIAL HIGHLIGHTS ⁄ 2020/H1 Revenue: EUR 39.6 million (-5.7% YoY excluding big events rentals and at constant cy) • Strong first quarter • Covid-19 impacting all regions in second part of the semester • Strong order intake in NALA ⁄ Maintaining Profitability • Gross margin 68.2% • Oper
Slide 21: 2020/H1 Revenues by Market Pillars (Including Axon)
2020/H1 REVENUES BY MARKET PILLARS (INCLUDING AXON): THE DECREASE YOY OF THE REVENUE IS MAINLY DUE TO LSP MARKET PILLAR (-21%) ⁄ LAB turnover increasing ⁄ LSP revenues were strongly impacted by the COVID crisis in 1H2020 (fewer investment by the Rental Companies) 21
Slide 22: 2020/H1 Revenues Geographical Split incl. Axon
22 2020/H1 REVENUES GEOGRAPHICAL SPLIT INCL. AXON NALA EMEA REVENUES 2020/H1: REVENUES 2020/H1: - 3.4 YOY -0.8% YOY
Slide 23: 2019 Revenues Geographical Split
23 2019 REVENUES GEOGRAPHICAL SPLIT ASIA-PACIFIC BIG EVENT RENTALS REVENUES 2020/H1: REVENUES 2020/H1: -16.1% YOY YOUTH OLYMPIC GAMES IN Q1 OTHER MAJOR EVENTS POSTPONED TILL 2021
Slide 24: Consolidated Income Statement
24 CONSOLIDATED INCOME STATEMENT ⁄ Revenues: -3.5% YoY (-4,8% excl. Big Events) In millions of EUR 1H20 1H19 REVENUE 39.6 41.0 ⁄ Gross margin: 68.2% Cost of sales -12.6 -12.4 Gross profit 27.0 28.6 ⁄ OPEX: -5% YoY thanks to lower marketing, Gross margin 68.2% 69.7% travel and provision for reduced v
Slide 25: Team Members Evolution
TEAM MEMBERS EVOLUTION NUMBER OF FTE INCREASE IN 2020/H1: +75 FOLLOWING INTEGRATION OF AXON (79 FTE) ⁄ End of semester HC snapshot reporting impacted by hiring timing (Not an average value) 25
Slide 26: Strong Balance Sheet – Cash Available
26 STRONG BALANCE SHEET CASH AVAILABLE: EUR 54 MILLION ⁄ Additional goodwill of 2,8MEUR following Axon acquisition ⁄ Two intangibles assets recognized as a result of the purchase price allocation for Axon: ⁄ Customer related assets +5,1MEUR ⁄ Technology +2,5MEUR ⁄ Lands and buildings: +3,7MEUR of wh
Slide 27: Working Capital Impacted by COVID-19
27 WORKING CAPITAL IMPACTED BY COVID-19 ⁄ Total operating working capital : + 13 MEUR vs 6/2019 (+35%) − Inventories : + 8MEUR vs 6/2019 including Axon (+2MEUR) − Trade receivables : + 6MEUR vs 6/2019 including Axon (+ 2MEUR) − Trade payables : + 1MEUR vs 6/2019 of which Axon (+2MEUR)
Slide 28: Strong Balance Sheet – Net Cash Position and Low Debt Level
28 STRONG BALANCE SHEET NET CASH POSITION 33.5M€ AND LOW DEBT LEVEL ⁄ Deferred tax liability on the intangible assets recognized following Axon acquisition for 1,5MEUR ⁄ Financial long-term debts: +7,7MEUR of which +4,4MEUR for the LT loan from BNP and 3,3MEUR for IFRS 16 (of which 1,5MEUR for Axon)
Slide 29: Guidance
29 GUIDANCE ⁄ ORDER BOOK ⁄ OUTLOOK & GUIDANCE 2020 ⁄ DIVIDEND ⁄ GOVERNANCE
Slide 30: Order Book
30 ORDER BOOK ⁄ Order book of EUR 45.8 million on June 30, 2020 of which: Order book as of June 30, XX • EUR 19,6 million to be recognized in revenue in 2020 (-12,9 % YoY or -10,1% Excl. big event rentals) -10.1%* +95.6%* • EUR 13,5 million (excl. big events rentals) to be recognized in revenue in 2
Slide 31: Outlook & Guidance
31 OUTLOOK & GUIDANCE ⁄ Due to Covid-19 situation, EVS does not provide revenue guidance for 2020. ⁄ 2020 OPEX – excluding Axon - expected to decline YoY with mid-to-high single digit ⁄ With the integration of Axon OPEX, total 2020 OPEX will increase YoY with mid-to-high single digit
Slide 32: Governance – Board of Directors
32 GOVERNANCE – BOARD OF DIRECTORS During last General Assembly (May 19th), Johan Deschuyffeleer has become director and chairman of EVS. EVS Board of Directors comprised of (from left to right on the photo) - Patricia Langrand, - Michel Counson, - Philippe Mercelis - Anne Cambier, - Martin De Pryck
Slide 33: Conclusions
33 CONCLUSIONS ⁄ KEY ACTIVITIES FOR 2020/H2 ⁄ CONCLUSION
Slide 34: Key Activities for 2020/H2
34 KEY ACTIVITIES FOR 2020/H2 ⁄ Organize a successful Virtual IBC in September ⁄ Continue Axon integration at the same pace, with the same mindset, focusing on cross- selling and sales in the Americas ⁄ Continue to manage the specific conditions due to Covid and support our customers in their way to
Slide 35: Conclusion
35 CONCLUSION ⁄ Major COVID impacts on revenues for a few months but: • no major impact on profitability compared to last year • no major impact on cruise speed in terms of operations ⁄ Despite COVID, EVS is strengthening his position in LAB market pillar, especially in NALA ⁄ Axon integration on tr
Slide 36: Questions & Answers
QUESTIONS & ANSWERS
Slide 37: Thank You
37 THANK YOU To learn more about EVS go to www.evs.com Search for EVS Broadcast Equipment on contact – corpcom@evs.com
EVS Broadcast Equipment — H1 2020 Earnings Presentation on 6ix