EVS: 3Q12 results€¦ · Highlights on Olympic 3Q12 Welcome Joop Janssen, new CEO 3Q12 results:...

EVS: 3Q12 results

November 15, 2012Joop Janssen, Managing Director & CEO

Jacques Galloy, Director & CFOG ff d’O lt t IROGeoffroy d’Oultremont, IRO

www.evs-global.com 1

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”, “XDC”

or the “Company”) expectations, should be considered as forward-looking

statements. Such statements made by EVS are based on knowledge of the

environment in which it currently operates, but because of factors beyond its

control actual results may differ materially from the expectations expressed in thecontrol, actual results may differ materially from the expectations expressed in the

forward-looking statements. Important factors that may cause actual results to

differ from anticipated results include, but are not limited to, financing risk, differ from anticipated results include, but are not limited to, financing risk,

acquisition risk, changes in technology, and other risks as outlined in the filings

with securities regulators and can also be found at www.evs-global.com

2www.evs-global.com

Agenda

FinancialsFinancialsBusiness updatepOutlookCorporate

3www.evs-global.com

Agenda


4www.evs-global.com

Highlights on Olympic 3Q12

Welcome Joop Janssen, new CEO

3Q12 results: EUR 39.5 m revenue (+32.3% vs. 3Q11, OB: +4.6%, Studio : +76.0%, growth in all regions mainly in NALA)

EUR 6 5 f t l i l f th Ol i G i L dEUR 6.5m of rentals, mainly for the Olympic Games in London

Operating margin of 48.8%, up from 46.6%

Order book: EUR 34.1 million at October 31 (+10.3% excl. big events)65.0% of order book is studio

EUR 22,4 million to be invoiced in 2012

10 months order intake: +22.7%%

Expectations for 2012EUR 134 m secured sales to be invoiced in 2012 in hands at October 31

U l k 4Q ft bi tUsual weaker 4Q after big events

Sales growth above 25%

Opex growth slightly above 13%, translating into EBIT profit growth of above 40%

Interim dividend EUR 1.16

5www.evs-global.com

3Q12 revenue reach EUR 39.5 mRevenue (EUR millions)

Quarter big events rentalsStudio revenue (excl rentals)

34 337.2

42.8

39.5

Studio revenue (excl. rentals)OB revenue (excl. rentals)

24.3

27.225.5

34.3

30.2

33.2

26.9

23 4

29.831.0 30.0

20.023.2

24.3

13 7

17.8 18.7 19.6 20.5 20.922.7 23.4

13.7

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2007 2008 2009 2010 2011 2012

XT3

2007 2008 2009 2010 2011 2012

6EUR millionswww.evs-global.com

All regions are growingStronger Studio & OB in all regions Revenue (EUR millions)g g

NALA EMEA APAC

18.920.0

23.5

19.5

10 0

12.711.4

14.4

10.79.7

13.114.6

9.5

17.617.4

16.4

13.9

9.5

16.817.717.6

6.86.9

10.0

4.24.9

5.8

3.53.1

6.7

9.1 9.1

4.1

4.7

7.9 6.8

6.1 5.65.7

4.3

8.57.2

3.8

2.1

3.33.1 2.8

4.63.5

6.7 6.3

4.1

6.06.2 7.2

6.8 6.6

8.6

1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q

2008 2009 2010 2011 2012

1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q

2008 2009 2010 2011 20121Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q

2008 2009 2010 2011 2012

3Q12 growth : +67.1%USD/EUR: +10% 9M12 vs 9M11Studio represents 46.5% of 9M12 (32.6% in 9M11)

3Q12 growth : +16.2%9M12 growth: +50.8%4.8m rentals relating to London 2012

3Q12 growth : +37.3%Japan recovery

7

(32.6% in 9M11)

www.evs-global.com

3Q12 sales up 32.3% and EBIT margin of 48.8%Reported

Actual Q3In millions of EUR 3Q11 3Q12

Sales+32.3% vs 3Q11

Revenue 29.8 39.5Cost of sales (5.7) (8.1)Gross margin 81.0% 79.4%

Opex+18.8% due to higher sales fees, employee count, new ERP and new top management

S&A (4.8) (6.2)R&D – gross (5.4) (5.9)R&D – tax credit 0.3 0.2

EBITEBIT 48.8%, up from 46.6%

EBIT 13.9 19.3

EBIT margin 46.6% 48.8%

Financial result 0.0 (0.5) , p

EPS 0.98€Net profit EUR 12 7 million

( )

Dcinex & mecalec at equity 0.5 0.0

Taxes (4.4) (6.1)

Net profit EUR 12.7 millionNet profit 10.0 12.7Net profit from Ops 9.8 13.2Basic EPS from Ops 1) 0.73 0.98

81) Basic EPS is computed on the adjusted number of shares, i.e. less own shareswww.evs-global.com

9M12 sales up 47.9% and EBIT at 49.9%Reported

Actual 9MIn millions of EUR 9M11 9M12

Record sales+47.9% vs 9M11+2.7m due to stronger USD

Revenue 75.9 112.3Cost of sales (16.3) (22.9)Gross margin 78.6% 79.6%

EBITEBIT margin of 49.9%, up from 41.0%Opex: +17.7% due to higher employee count

S&A (14.1) (16.3)R&D – gross (14.9) (16.7)R&D – tax credit 1.7 0.8

2011 includes one-off R&D tax credit of 1.1m

dcinex9M11 i l d d i fi l i

EBIT 31.1 56.0

EBIT margin 41.0% 49.9%

Financial result (0.1) (1.5)9M11 included a one-time profit relating to the sales of CineStore B.U. to Barco

( ) ( )

dcinex & mecalec at equity 3.1 0.1

Taxes (9.5) (17.2)

EPS 2.89€Net profit from ops EUR 38.8 million

Net profit 24.5 37.4Net profit from Ops 22.9 38.8Basic EPS from Ops 1) 1.70 2.89

91) Basic EPS is computed on the adjusted number of shares, i.e. less own shareswww.evs-global.com

9M12 EBIT margin at 50% due to higher salesFixed cost base still weights (opex growth +18%)

Breakdown of 24 9m EBIT variance HighlightsBreakdown of 24.9m EBIT variance

EBIT 9M12 vs 9M11 – EUR millions

Highlights

R&D

29.7

2.11.8 0.9 0.0

Positive leverage from 36.4m (+47.9%) higher sales with gross margin of around 80%

50%R&D

29.7

56.0

18% higher opex, also due to one-time R&D tax credit in 9M11

41%

31.1

10www.evs-global.com

EVS strong balance sheet at 30/09EUR 43.2 million cash on the balance sheet

Sept 30, 2012 Balance Sheet Highlights

Intangibles,

Equity = 67% of total B/S

171 303 own shares (offset equity)

Total: 116.7 Total: 116.7

N t

Building, 17.6

Intangibles, 1.8 171,303 own shares (offset equity)

Inventory: XT3, projects in progress, big events

Working Capital,

45.8

Net equity,

78.4

p g g

Cash = 37% of assets: short term deposits

Cash,

XDC & Meca, 8.3

Working

LT debt, 1.0

Dividend = 32mJun12 = 16 m (1.20 p.sh.)

Nov12 = 16 m (1.16 p.sh.),43.2

Working Capital,

37.3

A t Li biliti

DSO ~70 days

Net Wking Capital = 0.7 sales Assets Liabilities month


Team growth, +9% over 1 year50% in innovation (R&D)

Headcount evolution @30/09 Leverage effect on future sales

350

400

450

500

Net +35 employees in 12 months (+8.9%)

438In FTEs

100

150

200

250

300

Still 20+ open positions

0

50

100

Investment in Innovation: 49% R&DExpansion: 37% sales & opsExpansion: 37% sales & ops

New building and foreign offices 11727%

Operations

R&Dextensionsin FTEs

and %43

10%64

21449%

S&M


14%G&A

New building financing: 9.3m on own cash… consolidating current 6 buildings and 20+ containers

Planning is on target

Global investment40m gross investment, opening 1Q14less subsidies and resale of existing= 26m net cash-out= 26m net cash-out

Investment update€ 9.3m spent so far (on equity cash)Expected € 3m to be paid in 4Q12Expected € 3m to be paid in 4Q12€ 14m credit line signed but stillunused


dcinex contribution to EVS Group in 9M12

9M12 Income Statement Leading EU deployment

dcinex 100%41.3% affiliate of EVS

9M11 9M12still 45% to digitise, end of 35mm

In millions of EUR

Revenue 62.2 62.0#1 in Europe (35% mkt share)

Flat sales in 9M12

EBITDA 12.5 15.9

Flat sales in 9M12Underlying growing VPF sales

EBITDA margin of 25.6%Gain on Cinestore deal, gross

5.0 -g

Positive Free Cash Flow

EVS share x 41.3%

x 41.3%

dcinex contribution, net 3.0 0.1

Geographical expansion

IFRS


Agenda



London 2012 !Biggest EVS operations evergg p

EUR 6 million rental revenues over 3Q1227.07.2012 - 12.08.2012

EVS rented equipment and services750 XTs or 4.500 HD video channels

IBC

Host OBS Private video cloud : 5.500 hours HD AVC intra100+ involved customers100% HD and first 10% 3D games

OB-like43 locations & stadia | ~10 sports in parallelManaging time zones (Tokyo +8, Los Angeles -8)1 000+ (5% h ti )

OBS Host1,000+ cameras (5% hypermotion)

Studio-likeOBS Host & RHBs

CentralServer

3,000+ TV staff in London (Venue + IBC) & 5,000+ remote2,200+ hours of live MDS TV streamingIBC : 48,300+ sq. m. (“Intl Broadcast Center”)50 loggers – 28,000 clips


gg , p

EVS won 3 awards at IBC2012... EVS focuses on innovation

TV Technology Europe STAR awardXT3/XS with triple encoding capabilities

I-Frame for live editing – 100-200MbpsXDCAM for studio (delivery as from early 2013) – 50 MbpsLoRes for cloud (delivery as from early 2013) – 3-6Mbps

SVG Outstanding Technical Achievement in Sport Broadcast awardin Sport Broadcast awardC-Cast

second-screenmedia delivery platform for Euro 2012

What caught my eye” in the Convergence category IBCWhat caught my eye in the Convergence category, IBC

European Research project “FINE” with other partners (MediaPro, Tracab,..)Real-time virtual camera positioning for sports


NALA record sales

Quarter evolution – in EUR m EVS

Second record quarter in a row

...record even if 10% stronger USD

12.7

11.4

Workflow innovation leader

Successfull expansion7.9

Offices in NY, LA, Montréal

Strong LatAm : Mexico, Brazil,..4.7

6.86.1 5.6

Leading in Sports OB & Studio

Growing in entertainment shows

Gain of market shares

Gain of new customers1Q 2Q 3Q 4Q 1Q 2Q 3Q


2011 2012

Key long term trends

Global economy slowdownLower advertising growth and public budgets cuts in EULower advertising growth and public budgets cuts in EU… but growing subscriptions for digital TV

Overall +5% broadcast equipment industryOverall +5% broadcast equipment industryWeak western and mainly South Europe… but growing emerging markets… successfull focused players

Inflating sport rightseven +30 till +65% in major leaguesInternational coverage expansion

50% of TV workflows are file-based80% in OB but only 40% in studio80% in OB but only ~40% in studioMigration from baseband to IP workflows

HD & 3Gbps penetration of 50% of global TV productionHD & 3Gbps penetration of 50% of global TV production…and 4K is coming


Continuous image quality improvements… drives upgrades, XT3: much more powerful than XT2

More cameras

More imagesper second

More pixels i

XXcameras per second per image

Y # T f A i R l ti R tiYear # cameras Type of camera

Average images per second (ips)

Resolution Ratio (Mpps)

2006 18 16 @ 25 ips2 @ 75 ips

30 ips 0.4 Mpixels (SD) 12 Mpps

2010 26 18 @ 25 ips6 @ 75 ips2 @ 200 ips

50 ips 1.0 Mpixels 50 Mpps

x 4

? 2014 36 18 @ 25 ips8 @ 75 ips6 @ 200 ips

70 ips 2.0 Mpixels 140 Mpps

x 3

3Gbps

And the future is … 3D, 4K, etc

Strategy Plan 2016 due 1Q13

Strategy Plan 2016In line with ambition for the company

New management structureTo underpin the strategy plan

Emphasison market potentialon market potentialand successfull EVS fundamentals

Customer first


Agenda



Global Autumn Order Book at October 31Current Year Y portion better than 2011 and even 2010 post WC

34.1m, +10.3% vs 2011 excl. big events rentals22.4m orders to be invoiced in 2012o de s o be o ced 011.8m orders for 2013 and beyond (+20.1% excl. big events) 65% of EUR 34.1 million is studio

3.229.828 031.4

34.5 34.1

1 9 0.4

6.4

6 4

8.4 9.811.8

1.3

5.4

Big events rentals Y+1

Order book Y+1

28.0EUR 11.8mshould be invoiced in Y+1 = 2013

23.7

16 219.5 21.1 22.4

1.9

2.8

6.4

Big events rentals Y

11.5EUR 22.4mShould be invoiced in

8.7

16.2

2007 2008 2009 2010 2011 2012

Order book Y Y = 2012

2007 2008 2009 2010 2011 2012

PostOG

PostWC

PostOG

FY2012 Secured Sales at October 31Much more than only big event traction

9M12 sales 112.3m + Order book 22.4m = Secured Sales FY12 134.7m

134.7

105.7105.1

97.4

+38.2%

Still Nov and Dec72.3

Still Nov and Decto go

but delivery times f 4 8 kof 4-8 weeks

2008 2009 2010 2011 20122008 2009 2010 2011 2012


Outlook 2012

Order book of EUR 22.4 million at October 31 (+4%)or +5 8% excl the big event rentalsor +5.8% excl. the big event rentals60% OB / 40% Studio and growth in all regionsResilience in hesitant and competitive marketsp

Record 2012OB stronger than expected, developing new added value nichesBig event rentals around EUR 10 million in 2012B tt 2H12 th li ti i t d (Q3 Q4)Better 2H12 than earlier anticipated (Q3 > Q4)FY12 sales will grow by more than 25%Opex to increase by slightly more 13%, implying >40% EBIT growthOpex to increase by slightly more 13%, implying 40% EBIT growth

2013 uneven year without big events but new products coming


Interim dividend: EUR 1.16, ex-date Nov 19Dividend yield 5.9% on average last 12 months

Evolution of dividend, share buyback 3 00

0.520 05

0.27

0 1

share buyback and capital reimbursement, in EUR per share 2.44

3.00

2.53

2.91

2.53

1.48 1.48 1.481.20

0.47

0.160.05 0.17

Capital reimbursement

Share buyback

2.15

1.20

1.48

0.110.16

Final dividend (June)

Interim Dividend (November)

0.480.80 1.00 1.00

1.16 1.16 1.16

0.08 0.12 0 10 0 10 0.20

1.001.20

0.06 0.14 0.14 0.09

0.60

0.12 0.10 0.10

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Pay out *: 28.4% 27.3% 27.0% 28.7% 142.3% 82.0% 82.2% 58.1% 71.0% 69.7% 126% 90% 100%Div. Yield**:0.7% 1.6% 1.8% 2.6% 16.3% 9.8% 5.1% 4.3% 3.7% 4.4% 6.7% 6.3% 5.5% 5.9%

26

Div. Yield :0.7% 1.6% 1.8% 2.6% 16.3% 9.8% 5.1% 4.3% 3.7% 4.4% 6.7% 6.3% 5.5% 5.9%

*: defined as total gross dividend divided by net profit from operations, excl. dcinex (former XDC)** defined as total gross dividend divided by average share price of the fiscal year www.evs-global.com

Agenda



EVS shareholding as of November 14, 2012in % shares

M. Counson; 6.5%*

BNP Paribas; 4.2%

Fidelity; 3.0%

Ameriprise; 3.1%

November 14, 2012 stock data:

Basis : 13,625,000 ordinary sharesOutstanding warrants : 465 400 @37 44 UK 20%

****

**p ;Treasury shares;

1.3%Unhedged

warrants; 0.8%

Outstanding warrants : 465,400 @37.44Treasury shares : 171,303 sharesMkt Cap @45.50: EUR 620 million

Last 12 months stock data:

UK 20%

US 10%Last 12 months stock data:

Standard velocity: 89% (12 months)Average daily volume:

46 000 shares

US 10%

F 10% Individuals10%

Unidentified; 81 1%

- 46,000 shares- EUR 1.8 million

Source: Fidessa, incl. block trading and transactions out of Euronext Brussels

DE 7%

10%BE13%

Unidentified; 81.1%

EVS has not bought back any share in 2012

* Board member** According to shareholders notifcations


Corporate calendar

2012-2013

Monday November 19, 2012 Coupon 15 ex-date

Thursday November 22, 2012 Coupon 15 pay-date

Thursday February 21, 2013 FY12 earnings

1Q13, date TBC Strategy Plan 2016 investor day

6-11 April 2013 NAB TradeShow

Thursday May 16, 2013 1Q13 earnings

Tuesday May 21, 2013 Ordinary General Meeting

Thursday August 29, 2013 2Q13 earnings

Thursday November 14, 2013 3Q3 earnings


Conclusions

Record 2012

Strong 3Q12 with EUR 39.5m sales and 48.8% EBIT marging Q g

Record 9M12 with 112.3m sales and 49.9% EBIT

Strong global order book of EUR 34 1 millionStrong global order book of EUR 34.1 million

C ti d i t t i i ti l d t t d d d t tf liContinued investment in innovation leads to extended product portfolio

2012: revenue growth above 25% and EBIT growth above 40%

Current low visibility for 2013.. without big sporting events

Strategy Plan 2016 to be disclosed in 1Q13


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