4Q07 & FY07 Earnings - EVS Broadcast Equipment · 2011-10-05 · 4Q07 & FY07 Earnings ... Forward Looking Information The statements made in this presentation that are not historical

www.evs-global.com

February 21, 2008Pierre L’Hoest, CEO

Jacques Galloy, CFO

4Q07 & FY07 Earnings

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Forward Looking Information

The statements made in this presentation that are not historicalfacts 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 the forward-looking statements. Important factors that may cause actual results to 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

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Agenda

Financials

Business update

Outlook

Corporate

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Agenda

Financials

Business update

Outlook

Corporate

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Highlights 4Q07 & FY07

Sound Market Fundamentals (HDTV, going tapeless, Web/3G)Small and large studio projects winsBeijing 2008 traction across all regions (OB & Studio)4Q07: EUR 27.2 million revenue (+43.2%), EPS up 36.8% to EUR 0.85FY07: EUR 94.7 million revenue (+11.2%), EPS up 0.5% to EUR 2.91Investing for the future: FY07 opex +26.9% vs FY06Stable FY07 EBIT margin of 65.4% (vs 66.8% in FY06)Winter Orderbook of EUR 36.4 million at February 20 (+67.0%)

38% dedicated to Studio (longer lead time)

Gross dividend 2007: proposal of EUR 2.28/share (Final 1.48)

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Record 4Q07 revenue of EUR 27.2 million2007 quarters exceed EUR 20 million level despite lack of big events

27,224,4

23,3

6,9

9,8

7,36,2

9,47,3

8,6 8,5 8,7

11,9

16,6

8,7 8,1 7,8

19,721,9

19,919,0

24,1

16,4

20,1

1Q02

2Q02

3Q02

4Q02

1Q03

2Q03

3Q03

4Q03

1Q04

2Q04

3Q04

4Q04

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

4Q07

Quarter Big Events RentalsQuarter Revenue

EUR millions

LaunchXT[2]

Launch[IP] Director

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Organic growth & operating leverageFY07 sales EUR 95 million, 65% EBIT margin

2217

28 2734

4652

85

95

30

2 59

65%

8%11%

15%

36% 39% 42% 41%

32%

48%

58% 62%67%

0

10

20

30

40

50

60

70

80

90

100

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20070%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Sales (EUR millions)EBIT Margin

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Weaker EMEA offset by stronger US + AsiaEMEA -14%, NALA up 49% at const xrate, APAC +36%

3,74,5

7,7

3,3

4,43,8

13,2

9,610,5 10,8

6,9

8,3

10,9

15,5

13,3 13,5

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

2004 2005 2006 2007

3,0

5,8

7,0

3,62,8

2,1

4,6 4,9 4,75,3

8,2

2,5

7,9

9,5

8,1

5,2


2004 2005 2006 2007

NALA EMEA APAC

Revenue, EUR millions

Growing HDTVStudio ~ 31%81% is HDPanAm Games ‘07

Weak USD

HD take-off signsNo sport events in ‘07Studio ~ 35%43% is HD

Strong 2008UK, Spain, Eastern Europe

Jap, Cor, AusStudio ~ 30% 72% is HDNo sport events in ‘07

Upcoming OG. 2008

2,01,6 1,9 1,8

0,9

1,9 1,8 1,8

4,9

3,4

2,4

5,75,1

5,5 5,36,5


2004 2005 2006 2007

15,5

6,5

5,2

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Ongoing Studio Sales GrowthHD migration most advanced in Outside Broadcast

FY03 FY04 FY05 FY06 FY07

Mobile SD Mobile HD

Revenue (EUR millions)

61.9

FY03 FY04 FY05 FY06 FY07

Studio SD Studio HD

23.3

%HD in Studio Production%HD in Outside ProductionRevenue (EUR millions)

64%

40%40%

71%

65.4

29.2

25.8

37.2 37.5

59%53%28%

5.28.8

14.432%

18%

CAGR 03-07: +55%

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4Q07 Revenue of EUR 27.2 millionEBIT Margin impacted by opex growth

4Q06 3Q07 4Q07

Revenues 19.0 24.4 27.2Gross margin 87% 87% 87%

S&A (2.7) (3.4) (3.1)R&D (1.5) (1.8) (2.2)

EBIT 12.2 15.8 18.4EBIT margin 64% 65% 68%

Taxes (3.7) (5.1) (5.9)

XDC @equity (0.1) (0.7) (1.3)

Net Profit 8.4 9.9 11.5Basic EPS 0.62 0.73 0.85

1) Basic EPS is computed on the adjusted number of shares, i.e. less own shares

1)

Q4EUR millions, IFRS

Sales+43% vs 4Q06

+45% at constant FX

+55% excl event rentals

EBITOpex growth

Leverage of strong sales

34% effective tax rate

EPS +37%


FY07 Net Profit of EUR 39.5 millionLimited impact of weak US dollar (EUR 1.4 million or 1.5% of revenues)

1) Forward exchange contracts have generated EUR 0.5 million gain on FY072) Net profit, group share, excluding non-recurring exceptional results, net of tax, and excluding XDC contribution

FYEUR millions, IFRS Sales

+11% vs FY06

+15% at constant FX

+22% excl rentals

EBITopex growth

+27%+29% @const $

+18% average staff growth

XDC dilution in 2006

FY06 FY07 FY07 varReported @Const $ @Const $

Revenues 85.1 94.7 97.5 -2.8Gr Profit % 86% 87% 87% -

S&A (10.3) (13.0) (13.4) -0.4R&D (5.5) (7.0) (7.0) -

EBIT 56.9 61.9 63.6 -1.7EBIT margin 66.8% 65.4% 65.3% +0.1pp

Exchange result - 0.8 - +0.8Taxes (18.5) (19.8) (20.0) -0.2

Net Profit excl. XDC 39.4 43.6 45.0 -1.4margin % 46.3% 46.0% 46.2%

XDC contribution (2.5) (3.0) (3.0) -XDC dilution profit 3.4 - - -Net profit 39.4 39.5 40.9 -1.4

1)

2)


End 2004 End 2007

R&D

S&A

OPS

Team Growth, +18% over 1y, +59% over 3y… to pursue long term growth

Leverage effect on future sales

60

110

160

210

Dec-01

Dec-02

Dec-03

Dec-04

Dec-05

Dec-06

Dec-07

Expanding R&D and Sales teams

118

188

188

Still 25 open staff positions

In FTEsIn FTEs

+59%

18%

34%

48%

15%

40%

45%

Average age:35 years


Net result variance

39.5

-3.9

43.6

+12.2

39.4

-0.2-1.4-1.5-2.7-2.8

FY06Gr P

ft FXS&A

R&D

TaxOther

FY07 ex

cl XDC

XDCFY07

Net Result

FY07 net profit of EUR 39.5 million, +0.2%FY07 net profit from operations excl XDC, +11%

FY07 – EUR millions

Gearing

Strong NALA & APAC

But weak US$

Sales & Marketing

65.4% EBIT margin

Slightly lower tax rate

2006’s XDC dilution pft


DLP Cinema™ Theatre LocationsEstm’d 5,300 Screens as of Dec 2007 / 280 XDC systems

AsiaAsia650 Screens650 Screens

EuropeEurope700 Screens700 Screens

AmericasAmericas4,000 Screens4,000 Screens

EVS 47% affiliate XDC focuses on Europe


FY07 Income Statement

Contribution of EUR -3.0 millionto EVS Group over FY07

XDC 100% - in € FY06 FY07

Revenue 2.3 2.5

EBITDA -2.8 -3.1

Net result -4.5 -6.4

EVS share x 60.2% x 47.2%/47.2%

XDC contrib. -2.5 -3.0Dilution profit +3.4 -XDC total contrib +0.9 -3.0

Leading EU deployment

Sales up 7.1%

280+ installed screens

Strong team of 47 FTE’s

G3 & 3D deployment

Ongoing negotiations

Funding


EVS strong balance sheet

DSO ~45 daysIncl R&D & Demo’sXDC at equity + bond

Tax provisions

75.062.9TOTAL LIABILITIES

62.150.1Shareholders’ equity

4.33.8Non current liabilities8.69.0Current liabilities0.20.6Dividend payable

75.062.9TOTAL ASSETS

11.38.0Non current assets7.25.8XDC at equity + bond5.66.4Inventories

15.413.8Current assets35.528.9Cash

31 Dec 200731 Dec 2006EUR millions


Agenda

Financials

Business update

Outlook

Corporate


EVS Products Highlights

Release Multicam v9.0Bandwidth +40%Advanced Time Code Management

Integration AVID DNxHDVC3 SMPTE CompliantRelease IP Director v5.5Metadata

More info to be released at NAB 2008 Las Vegas+30% sqm for private rooms


3,550 EVS XT serversMore than 2,000 people.days of training in 2007 on EVS tools

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

XT*HDReady

XT*SD

HCT*SD1,000

1,200

2,300

1,900

1,500

700850

@December 31

# of

Launchof

XT

Launchof

500

Launchof

HD

Innovation & growth

3,550 servers

500 IP Directors

5,000+ users

35% is HD

35% in Studio /

65% in OB trucks

SD to upgrade to HD

1 Upgrade for 7 new

networked systems

2,800

Launchof

3,550


« HDTV Viewers happy with Pic quality, not so much with programming », Nielsen

The High Def Content Gap

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

Europe - HD ReadyUS - HD ReadyJapan - HD ReadyTotal HD Capable

HDTV Drivers

APACJapan : 30% HD ReadyOlympics

NALA40% HD ready sets penetration22% HD viewers penetrationPrime Time of Networks is HD

EMEAHD initiatives, Euro2008, Olympics3% HD capable but 15% HD trucksStill 0% HD in 10 countries…

WORLDBlu-Ray vs HD DVDFull MPEG2-MPEG4 HD PVR

Simulcast SD/HDSource: Screendigest

71m homes with HD Ready screens

33% onlyreceivingHD signal

High DefContent

GAP

In million homes

239m

* An HD Capable home has an HD Ready Screen and receives an HD TV Signal

*


HD in Europe One way forward

0%

10%

20%

30%

40%

50%

60%

70%

80%

2003 2004 2005 2006 2007 2008 2009 2010 2011 20120%

10%

20%

30%

40%

50%

60%

70%

80%

% US Trucks in HD% HDReady Sets in US% HD Capable in US

0%

10%

20%

30%

40%

50%

60%

70%

80%

2003 2004 2005 2006 2007 2008 2009 2010 2011 20120%

10%

20%

30%

40%

50%

60%

70%

80%

% EU Trucks in HD% HDReady Sets in EU% HD Capable in EU

1Q08

45%40%22%

15%20%3%

Start HD in US

Start HD in EU


Growing # of European HD ChannelsMovies and Sport Are Preferred HD Contents


Beijing Olympics 2008 go HD !« Citius, Altius, Fortius » - 8.08.2008-24.08.2008

200+ participating countries, 10,000+ athletesCumulated 40bn+ hours of TV viewers Infrastructure

15+ locations & stadia3,000+ TV staff in China & 5,000+ remote1,000+ cameras1,000+ hours of live TV streaming44,000+ hours of global TV production4,000+ hours international feed60,000+ sq. m. for the IBC

SpecialsFirst Full HD gamesFirst Tapeless Central Media ServerManaging time zones (EU +6, NY -12)


The TV Workflow2 billion viewers – 150 languages – 200 TV Stations

1 Host40 Feeds

60 Partners24/7

…

200 Rights Holders24 time zones

1.000 Cameras60 OB van’s

FIELD INTL BROADCAST CENTER WW DISTRIBUTION

Ingest Edit On-Air Play-OutCapture


# XT servers shall reach ~600

1996

2000

2004

2008

RIGHTS HOLDERS

PARTNERS

HOST

OB

2008 Integrated workflow

Outside Broadcast60 vans, 100% HD EVS

Host Broadcast (new!)100% HD Tapeless Media Server100 [IP]Director workstationsIOC Tape Archive IndexingBOB / EVS service agreement

Broadcast PartnersLog into Media Server150 [IP]Director workstationsInterop w/ Post-Production

Ww Right HoldersTime delay managementHighlights packagesNew Media

~2.000 EVS users in Beijing

A long term partnership2008 milestone: EVS digitizes the Host operations

3670

325

600

Atlant

a

Sydne

y

Athen

s

Beijing

Overseas

In Beijing

MediaServer


Ingest / Record

Host Broadcast goes tapeless2008 MediaServer showcases future generic tapeless studio

OG 2004

On Air Play-outEdit

OG 2008

GenericStudio

Audio & Video Metadata Browse & Search Clips Edit Studio CR Master CR

1) CR = Control Room, Transmission

1) 1)

TapePaperLog

Tape

Linear

Non Linear

4.30pm: gold medal Tape

XT[2]

N/A


Ingest / Record


OG 2004

On Air Play-outEdit

OG 2008

GenericStudio



1) 1)

TapePaperLog

Tape

Linear

Non Linear


XT[2]

XT[2]

IP Logging IP Browsing

Non Linear

FCPXT[2]DB

Non Linear

N/A

N/A


Ingest / Record


OG 2004

On Air Play-outEdit

OG 2008

GenericStudio



1) 1)

TapePaperLog

Tape

Linear

Non Linear


XT[2]

XT[2]

IP Logging IP Browsing

Non Linear

FCPXT[2]DB

XT[2] IP Logging IP Browsing

Non Linear

FCPXT[2]

TransmissionServers

DB

N/A

N/A

Media Asset Management


Musical reality showFull VTR Replacement solutionLoop recording for faultless productionHighlight package productionDirect interaction with Avid craft editorsNative quality preservationCut production time

« The edited output is then streamed directlyto Avid Unity, so that editors can immediatelystart working on their timeline for more complex post-production. »Tharaka Mohotty – Director of Engineering

MTV Channel - Sri Lanka VTR Replacement


Agenda

Financials

Business update

Outlook

Corporate


EVS TV long term growth driversStrong momentum

Increasing # content distribution channelsDigital TV, Sat-TV, Cable-TV, IPTV, WebTV, DTT, VOD, Free-to-Air

Accelerated by SD to HD transitionOngoing from current 8-35% Broadcast HD penetration

Tapebased to tapeless transitionOngoing from current 35% servers penetration

Multimedia or SpeedclippingFrom linear to non-linear video consumptionMobile TV, internet TV, IPTV

Create Near-Live Studio Mkt nicheGetting 5% of a 1 bn€ market opportunity

Increasing popular SportsInternationalization, second leagues, Stadiums

Grab powered by EVS


7.5

16.7

14.3

17.9

1.8

EVS events rentals

EVS OrdersJan+Feb for 08, excl.events

EVS BL 1/1 for 08,excl. events

Winter orderbook of EUR 36.4 millionUp 67.0% vs 2007

+67.0%

36.4

21.8

@ 21 Feb 07 @ 21 Feb 08

EMEA back on track !

38% Studio / 62% OB

Beijing 2008


Guidance 2008

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Studio Production

Outside Broadcast

27 30

5246

34

17

28

EVS TV Sales In EUR millions Growth year

Euro 2008

Beijing 2008

1H08 > 2H08

Recruit

Open offices

New products

85

95

8-24 Aug 08

7-29 Jun 08

www.evs-global.com

Record FY07 revenueHigher opex, but stable EBIT margin at 65%Winter order book of EUR 36.4m, +67.0%2007: good year anticipating on 2008Studio around 31% for FY07Towards Euro2008 & Beijing 20081H08 > 2H08

Conclusions


Agenda

Financials

Business update

Outlook

Corporate


EVS shareholding as of December 31, 2007in % shares and issued warrants – based on last received shareholders statements

Unidentified64.5%

Warrants1.2%

BIP5.6%

PoweCap5.9%

Treasury shares2.2%

Founders18.4%

Cytindus2.2%

Basis : 13,875,000 ordinary shares

Outstanding warrants : 171,150

Treasury shares : 305,871 shares

Standard velocity: 64%

Mkt Cap: EUR 966 million

Average daily volume: - 35,000 shares- EUR 2.3 million

* Board members

*

*

*


Corporate Matters

CalendarThursday 15 May 2008: 1Q08 sales & earningsTuesday 20 May 2008: Annual Shareholders MeetingTuesday 10 June 2008: Postponed Extraordinary Shareholders MeetingTuesday 27 May 2008: Final dividend 2007 - Coupon 6 – ex-dateMonday 2 June 2008: Final dividend 2007 - Coupon 6 – pay-dateThursday 17 July 2008: trading update on 2Q08 sales & earningsThursday 4 September 2008: 2Q08 sales & earningsThursday 13 November 2008: 3Q08 sales & earnings

Investor relationsAnnual Report online on our website (FR + UK)Visit our new website on www.evs-global.com !Your requests are welcome on [email protected]


EVS Recruits for both HQ and Foreign Offices… Engineers, sales managers, project managers …

www.evs.tv/jobs


Appendices


Negative USD currency effectEVS adopts neutral position

USD / EUR FY06 FY07 Var%

Average XRate 0.7964 0.7297 -8.4%

At period end 0.7593 0.6793 -10.5%

EVS Cash Flow hedging Policy

In base 100

US Revenue 100

Expenses in USD (35)

Net USD position 65

Forward 6-12 months x 50%

= neutralIncome statement and cash flow statement are converted at the average exchange rate of the period Assets and liabilities are converted at the exchange rate in force on the reporting date

USD / EUR variation

Avg ‘06

Avg ‘07


Sizing the opportunity10.000 TV Stations worldwide, growing110.000 Professional Broadcast Cameras, growing

10%-45%10%-40%HD Penetration %

~1,150~2,400Current # EVS servers

30%90+%EVS Servers Mkt share

25-40%35-50%Servers Penetration %

30%100%(Near-)Live ingest %

80,00080,000160,000

14,0001,00015,000

#cameras#intermediate feeds (ex.sat)

# channels to ingest

STUDIO production

(entertainment, drama, series, sport mags,

talk shows, weather, adverts)

OUTSIDEproduction(sport, music)

Based on currentmarket conditions

* one EVS server currently manages between 1 and 6 channels

x10

Documents

4Q07 & FY07 Earnings - EVS Broadcast Equipment · 2011-10-05 · 4Q07 & FY07 Earnings ... Forward Looking Information The statements made in this presentation that are not historical