evs: 1q12 results · 2016. 2. 15. · evs: 1q12 results may 10, 2012 jacques galloy, cfo geoffroy...

EVS: 1Q12 results

May 10, 2012Jacques Galloy, CFO

Geoffroy 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 1Q12

Key Highlights:

Strong results in an uncertain macro-economic environment and competitive industry

Record order book: EUR 53.8 million (+131.5%) !

2012 big events : EuroSoccer 2Q + Olympics 3Q

1Q12 results:1Q12 results:

EUR 30.0 m revenue (+32.5% vs. 1Q11, OB: +58% / Studio : +7% / growth in all regions)

Operating margin of 45.1%, up from 39.8%

Record order book: EUR 53.8 million at May 9 (+91.4% excl. big events)

Success of cutting edge XT3 platform and dedicated apps

50% f d b k i t di ith l l dti50% of order book is studio with longer leadtime

Approx. 2/3 to be delivered in 2Q12, the outstanding in H2

Expectations for 2012

EUR 83 m secured sales in hands

Product portfolio and integrated near-live solutions arriving at a new level

Strong 1H12 also thanks to the big events while 2H12 could be better than anticipated earlierStrong 1H12, also thanks to the big events, while 2H12 could be better than anticipated earlier

Opex growth 13-18%, translating into slightly better EBIT margins than in 20115www.evs-global.com

OB & Studio revenue reach EUR 30.0 m

37.2

Quarter big events rentals

Studio revenue (excl. rentals)

OB revenue (excl. rentals)

24 327.2

25.5

34.3

30.233.2

26.9

29.8 31.030.0

20.023.2

24.3

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

2007 2008 2009 2010 2011

6EUR millionswww.evs-global.com

All regions are growingGood studio but stronger OBg

Revenue, EUR millions, quarterly

NALA EMEA APAC

18.920.0

10.09.0 9.2

14.4

10.79.7

13.114.6

9.5

17.617.4

16.4

13.9

9.5

16.817.617.6

6.86.9

4.24.9

5.8

3.53.1

6.7

4.1

4.7

7.9 6.9

6.0 5.6 5.74.3

8.57.2

3.8

2.1

3.33.1 2.8

4.63.5

6.7 6.3

4.1

6.06.2 7.3

6.8

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

2008 2009 2010 2011

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

2008 2009 2010 2011 2012

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

2008 2009 2010 2011

1Q12 growth : +20.2%50% sales in studio

1Q12 growth : +25.0%3rd tranche Russian OB deal (4m)Market shares gains in studio

1Q12 growth : +74.9%Stronger OBJapan recovery

www.evs- 7

1Q12 Sales up 32.5% and EBIT at 45.1%Reported

Actual Q1In millions of EUR 1Q11 4Q11 1Q12

Sales+32.5% vs 1Q11

Gross marginPositive leverage impact of fixed costs

Revenue 22.7 31.0 30.0Cost of sales (5.1) (6.8) (6.7)Gross margin 77.2% 78.0% 77.6%

Positive leverage impact of fixed costs portion within COGS

EBIT

S&A (4.2) (5.5) (4.4)R&D – gross (4.7) (5.6) (5.3)R&D – tax credit 0.7 0.3 0.2

EBIT 45.1%, up from 39.8%Opex up 16.6% due to higher employee countR&D included EUR 0.5 million one-time

EBIT 9.0 13.0 13.6

EBIT margin 39.8% 41.9% 45.1%

Exchange result 0.1 0.0 (1.0) R&D included EUR 0.5 million one time tax credit in 1Q11

XDC

g ( )

XDC at equity 2.6 (0.7) 0.1

Taxes (2.9) (4.7) (3.9)

Incl. EUR 2.1 million one-time group share profit in 1Q11

EPS 0.66€IFRS exchange result loss of EUR1.0 m

Net profit 8.9 7.5 8.7Net profit from Ops 6.5 8.7 8.9Basic EPS from Ops 1) 0.48 0.65 0.66

gNet profit 8.7m €

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

1Q12 EBIT leveraged by higher salesFixed cost base weighs (opex growth +16%)

Breakdown of 4 5m EBIT variance HighlightsBreakdown of 4.5m EBIT variance

EBIT Positive leverage from 32 5% higher sales

1Q12 vs 1Q11 – EUR millions

Highlights

0.30.6 0 1

32.5% higher sales

Gross margin 77.6%45%

R&D

5.80.5 0.1

13 6

Gross margin 77.6%

16% higher opex including

40%

9.0

13.6g p g

one time tax credit in 1Q12

9www.evs-global.com

EVS strong balance sheet at 31/03EUR 24.6 million cash on the balance sheet

March 31, 2012 Balance Sheet Highlights

Equity = 68% of total B/S

183 372 own shares (offset equity)

Total: 95.4 Total: 95.4

Building, 15.2

Intangibles, 2.5

183,372 own shares (offset equity)

Inventory: XT3, projects in progress, big events

Working Capital,

44.4

Net equity,

65.0

p g g

Cash = 26% of assets: short term deposits

XDC & Meca, 8.7

Working

LT debt, 1.1

Dividend = 32mDec11 = 16 m (1.16 p.sh.)

Jun12 = 16 m (1.20 p.sh.)Cash, 24.6

Working Capital,

29.3

A t Li biliti

DSO ~70 days

Net Wking Capital = 1.5 sales Assets Liabilities month

10www.evs-global.com

New building financing

Gross investment EUR 40 million (till early 2014)Less value of existing buildings and subsidies = net investment EUR 26m+

FinancingCurrently EUR 24m cash after EUR 6m already paidCurrently EUR 24m cash after EUR 6m already paidUpcoming EUR 16m dividendFirst through excess operating cash-flowsFirst through excess operating cash flowsBank debt

Current Euribor3M = +/- 0.75%C IRS 15Y / 2 50%Current IRS 15Y = +/- 2.50%Plus bank margins

Consolidating bank debt early 2014g y


Team growth, +14.1% over 1 year50% in R&D

Headcount evolution @31/03 Leverage effect on future sales

300

350

400

450

Net +53 employees in 12 months428

In FTEs

100

150

200

250

300

Lower recruitment level

Added-value recruitments0

50 HQ20 foreign offices

Investment in Innovation: 50% R&DExpansion: 36% sales & ops

11326%

Operations

R&D

New building and foreign offices extensions

in FTEsand % 41

10%60

14%

21450%

S&M


14% S&MG&A

XDC contribution to EVS Group in 1Q12Q

1Q12 Income Statement Leading EU deployment

XDC 100% 1Q11 1Q12

f

41.3% affiliate of EVS since 31/12/09In millions of EUR

Revenue 17.6 22.2

31/12/09

Europe : still 45% to digitise

EBITDA 3.1 4.9

G i Ci t d l 5 0

Sales: +25.9%

Gain on Cinestore deal, gross 5.0 -

Net result 6.4 0.2EBITDA margin of 22.1%

Net result 1Q11 included EUR 5 0EVS share x 41.3% x 41.3%

XDC contribution 2.6 0.1

Net result 1Q11 included EUR 5.0 million of gross one-time profit relating to the Cinestore disposal


Total Dividend: EUR 2.36Payout 100% - Dividend yield 5.5% on FY11 (5.9% on 1Q12)

E l ti f di id d

0.520.27

Capital reimbursement

Evolution of dividend, share buyback and capital reimbursement, in EUR per share

2.44

3.00

2.532.91

2.53

1.48 1.48 1.481 20

0.47

0.160.05 0.17

Share buyback

in EUR per share 2.15

1.20

1.481.20

0.110.16 Final dividend

(June)

0.480.80 1.00 1.00

1.161.16

0 08 0 20

1.001.20

0.06 0.14 0.14 0.09

0.60Interim Dividend (November)

0.08 0.12 0.10 0.10 0.200.06 0.14

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

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%

14

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%

*: defined as gross dividend divided by net profit from operations, excl. XDC** defined as gross dividend divided by average share price of the fiscal year

Agenda



NAB Highlights

Show attendance92 112 total attendees (flat vs 2011)92,112 total attendees (flat vs. 2011)27% non US attendees1.575 ExhibitorsEVS booth: +33% visitors vs. last year

Key trendsKey trends1. Positive climate getting back after tough 2009-2010 downturn2 Focus on costs and efficiency2. Focus on costs and efficiency 3. Fast multiplatform content distribution is focus #14. 4K is the next HD level (already a standard in movies)5. Storage, Cloud, Formats, ...

NAB HighlightsLaunches

C-CastFirst launch in the USE th i ti f db kEnthusiastic feedback

XDCAMOfficial announcement at NABDelivery as from end 2012 / early 2013Important potential for studio applications

Booming OB segmentOrder intake doubled in 1Q12

Product reliabilityC tti d i tiCutting-edge innovationApplication agilityService qualityService quality


Innovation in StudioBuilding best class enhanced workflows

Product Portfolio Evolution 2005-2012Product Portfolio Evolution 2005-2012Studio2005

DVCPro ProRES


Innovation in StudioEnlarged product portfolio bringing the company to a new plateau

Product Portfolio Evolution 2005-2012Product Portfolio Evolution 2005-2012Studio2012

DVCPro ProRES


Sky News ArabiaCutting-edge live and near-live workflow

Sky expands into the Middle East and North Africa with a new TV network that brings news to 50 million homes across the region

Based in Abu Dhabi, 400 editorial staff, 12 state-of-the-art bureaux

On-Air since May 6, 201213 servers (XT and XS)DVCPRO HD codecDVCPRO HD codecStorage with capacity of 3,000 hours at 100MB/sec

Also available on: www.skynewsarabia.com + smartphones/tablets


Agenda



Spring Order Book at May 10, 2012+91.4% excl. big events rentalsg

53.8

9.3

+91%Good order diversity

39.8

6.6

6 1

Order book for event

t l

9.3m for big event rentals:

50% studio

34.2

44.50.3

6.1 rentals

BL 30/04, excl.

21.0Not that dependent on big events

23.3

13 1

20.6

33.1

13 1

28.123.3

events rentals+ EUR 5.6 m for 2013 and

beyond

13.1

13.1

2007 2008 2009 2010 2011 2012

Secured Sales at May 9Much more than only big event traction

EUR 83 8 !EUR 83.8 m !

83.8

65.2

55.1

+82.2%

30 9

46.0

30.9

2008 2009 2010 2011 20122008 2009 2010 2011 2012


Outlook 2012

Order book of EUR 53 8 million at May 9 (+131%)Order book of EUR 53.8 million at May 9 (+131%)or +91.4% excl. the big event rentals50% OB / 50% StudioGrowth in all regionsResilience in hesitant and competitive markets

Strong 2012Strong 1H12, encouraging 2H12OB stronger than expected developing new added value nichesOB stronger than expected, developing new added value nichesBig event rentals should reach EUR 8-10 million in 2012Extended product portfolio could drive interesting H2p p gOperating expenses to increase between 13 and 18%FY12 EBIT margins should be slightly better than FY11


Agenda



EVS shareholding as of March 31, 2012in % shares

M. Counson; 6.5%

L Mi 0 %

*May 8, 2012 stock data:

Basis : 13,625,000 ordinary sharesOutstanding warrants : 286 550 @39 L. Minguet; 0.7%

BNP Paribas; 4.2%Fidelity; 3.0%

Ameriprise; 3.1%

Outstanding warrants : 286,550 @39Treasury shares : 183,372 sharesMkt Cap @37.10: EUR 505 million

Last 12 months stock data: UK 20% p ;Treasury shares;

1.3%Unhedged

warrants; 0.8%

Last 12 months stock data:

Standard velocity: 119% (12 months)Average daily volume:

62 500 shares

UK 20%

US 10%- 62,500 shares- EUR 2.6 million

Source: Fidessa - incl. block trading and transactions out of Euronext Brussels F 10%

Individuals10%

Unidentified; 80.4%

EVS hasn’t bought back any shares in 2012

DE 7% BE13%


* Board members

Corporate calendar

2012

Tuesday May 15, 2012 Ordinary General Meeting

-- agenda on www.evs-global.comg g

Tuesday May 22, 2012 Final dividend coupon 14: ex-date

Thursday May 24 2012 Final dividend coupon 14: record dateThursday May 24, 2012 Final dividend coupon 14: record date

Friday May 25, 2012 Final dividend coupon 14: payment date

Thursday August 30 2012 2Q12 earningsThursday August 30, 2012 2Q12 earnings

Thursday November 15, 2012 3Q12 earnings


Conclusions Jacques GALLOY, Director & CFOGeoffroy d’OULTREMONT, IRO

Tel: +32 4 361 70 14 Fax: +32 4 361 70 89 Email: [email protected] http://www.evs-global.com

On the way to London 2012

1Q12 f EUR 30 0 illi ( 34 3% t t t d l t t l )

y

1Q12 revenue of EUR 30.0 million (+34.3% at cst rates and excl. event rentals)

1Q12 EBIT margin of 45.1%

Record order book of EUR 53.8 million

Continued investment in innovation leads to extended product portfolio

2012: record revenue and improving margins


EVS’EVS C-CastC Cast

www.evs-global.com 30

evs: 1q12 results · 2016. 2. 15. · evs: 1q12 results may 10, 2012 jacques galloy, cfo geoffroy...

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