EVS Investors 1Q08Earnings 080520 OGM publish v11 · Official partner for 2008 Cannes 18 digital...

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www.evs-global.com

May 2008Pierre L’Hoest, CEO

Jacques Galloy, CFOGeoffroy d’Oultremont, IRO

1Q08 Earnings

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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. 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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EVS at a glance

« Speed To Air » Strategy

Leader in Outside Broadcast/slow motion

Challenger in Near-Live Studio production

Hardware, software, service

188 staff, 800 customers and 5,000+ users

Big sport events (Beijing 2008): trigger and accelerator

50% EMEA, 30% NALA, 20% APAC

Strong balance sheet, high dividend yield

Avg revenue growth 94-07 : +38%

*

2217

28 27

34

46

52

85

95

952

30

67%

62%58%

48%

32%

41%42%39%36%

15%11%

8%

65%

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Revenue (EUR millions)

EBIT Margin (%)

IPO

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Ongoing Studio Sales GrowthHD migration most advanced in Outside Broadcast

FY03 FY04 FY05 FY06 FY07

Oustide Broadcast SD Outside Broadcast 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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Strong 1Q08 revenue of EUR 25.4 million

25.427.2

24.423.3

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

1Q08

Quarter Big Events RentalsQuarter Revenue

EUR millions

LaunchXT[2]

Launch[IP] Director

V1.0

Launch[IP] Director

V5.5

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Strong EMEA offset weaker US and AsiaEMEA +110%, NALA -3% at constant exchange rate, APAC -16%

3.74.5

7.7

3.3

4.43.8

13.2

9.610.5 10.8

6.9

8.3

10.9

14.4

15.5

13.3 13.5

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

2004 2005 2006 2007 2008

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

6.7

5.2


2004 2005 2006 2007 2008

NALA EMEA APAC

Revenue, EUR millions

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 5.3

4.3

6.5


2004 2005 2006 2007 2008

14.4

4.36.7

Growing HDTVStudio ~ 23%83% is HD

Weak USDTraction of Olympics

HD take-off signsEuro2008 tractionStudio ~ 29%59% is HD (vs 43% in ‘07)

Strong 2008Traction of Olympics

Jap, China, Cor, AusStudio ~ 27% 75% is HD

Traction of Olympics

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US dollar impactNALA revenue Q1: -3% at constant exchange rate

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

6.7

3.7

7.0

8.6

4.73.7

2.6

5.6 5.8 5.76.7

10.4

3.2

10.4

12.8

11.1

7.5

10.0

5.2


2004 2005 2006 2007 2008

NALA revenue (EUR) NALA revenue (USD)

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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)

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Efficient natural and financial hedging1Q08 Revenue lower by EUR 1 million but stable net profit (+0.1m)

1Q07 1Q08 1Q08 VarReported Reported @Const $ 1Q08

Revenues 19.9 25.4 26.4 -1.0Gross margin 87.0% 88.1% 87.3% +0.8pp

S&A (2.8) (3.2) (3.3) +0.1R&D (1.5) (2.1) (2.1) -

EBIT 12.9 17.1 17.7 -0.6EBIT margin 65.1% 67.3% 67.2% +0.1pp

Exchange result - 0.6 - +0.6XDC @equity (0.4) (0.8) (0.8) -Taxes (4.1) (5.6) (5.7) +0.1

Net Profit 8.6 11.7 11.6 +0.1Basic EPS 0.63 0.86 0.86

1) Basic EPS is computed on the adjusted number of shares, i.e. less own shares2) Unrealized exchange gain of EUR 0.8m as at March 31, 2008.

1)

Q1EUR millions, IFRS, at constant exchange rate

4% lower salesand U$ competitors

Flat EBIT margin Increasing natural hedge

with more U$ purchases

Flat Net Profit Forward contracts gains

US taxes

Flat EPS of EUR 0.86

2)


Team Growth, +24% over 1 year… to pursue long term growth

Leverage effect on future sales

60

110

160

210

260

Dec-01

Dec-02

Dec-03

Dec-04

Dec-05

Dec-06

Dec-07

40% staff in R&D

209

- Still 30 open staff positions- Average age: 35 years

In FTEs and %In FTEs

3115%

9445%

8440%

Operations

R&D

S&A

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Official partner for 2008 Cannes18 digital auditoriums managed by XDC

Leading EU deployment

# 1 in Europe

300 screens

New Mgt team

G3 & 3D deployment

Ongoing negotiations


1Q08 Income Statement

Contribution of EUR -0.8 millionto EVS Group over 1Q08

XDC 100% 1Q07 1Q08in thousands EUR

Revenue 912.2 929.2

EBITDA -85.9 -338.4

Net result -819.1 -1,758.8

EVS share x 47.2% x 47.2%XDC contribution -386.6 -830.1

Leading EU deployment

47% affiliate of EVS

Sales up 1.9%

R&D no longer capitalized

Strong team of 47 FTE’s

Ongoing negotiations

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EVS strong balance sheetRoE 80%; Dividend yield ~3.5%

DSO ~55 daysIncl R&D & Demo’sXDC at equity + bond

6.7m tax provisions

=79% of total B/S

90.975.0TOTAL LIABILITIES

71.462.1Shareholders’ equity

4.44.3Non current liabilities15.18.6Current liabilities0.20.2Dividend payable

90.975.0TOTAL ASSETS

11.711.3Non current assets6.47.2XDC at equity + bond7.15.6Inventories

20.215.4Current assets45.535.5Cash

31 Mar 200831 Dec 2007EUR millions


Agenda

Financials

Business update

Outlook

Corporate

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NAB 2008 (Mid April, Las Vegas)More than 30% visitors increase on EVS booth

Attendance Evolution %

NAB -5%EVS +30%

www.evs-global.com

Open format policyEVS key partnerships to expand in near-live studio market

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2008: another big sport year

2004 2005 2006 2007 2008 2010 2012 2014

snowball effect driven by sport events

Big events = major innovation milestones

= HDTV marketing boost to consumers

EVS Technology exposure (& direct rentals)


# XT servers shall reach ~600

1996

2000

2004

2008

RIGHTS HOLDERS - HQ

RIGHTS HOLDERS - BEIJING

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

Atlanta

Sydney

Athen

s

Beijing

Overseas

In Beijing

MediaServer

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Zoom on split production at “ZBC”EVS Media Server showcases future generic tapeless studio

BOB Host

ZBC News

~15

Incoming feeds

ZBC media server

In Beijing 20:00 At “ZBC HQ” 12:00

CentralServer

Host Logging

ZBCServer

AZBCData

Video

Metadata

ZBCLogging

ZBCServer

BZBCData

~40

Incoming feeds

~15Incoming feeds

ZBC journalist

Venue

ZBC sport center

ZBC HD

ZBC.mobi

www.ZBC

One intl signal

~5 Bilateral feeds


Agenda

Financials

Business update

Outlook

Corporate

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

% HD Ready Sets in US

% HD TV signals in US

% US Trucks in HD

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

% HD Ready Sets in EU

% HD TV signals in EU

% EU Trucks in HD

HD: One way forwardHD grows faster in production than in distribution

1Q0820%3%15%

Start HD in US

Start HD in EU

1Q0840%22%45%

United StatesUnited States EuropeEurope

(MPEG2)

Swap MPEG2 to MPEG4

(MPEG4)

Production

Distribution

Production

Distribution


8.5

19.78.0

8.2

0.3

6.5

1.5

1 Orders for nextyear

.

Big events rentals

Orders April for08, excl. events

BL 01/04 for 08,excl. Events

Spring orderbook of EUR 34.4 millionUp 104% vs 2007

+104%

34.4

16.8

@ 30 April 07 @ 30 April 08

Usual geo mix

Big Events Rentals2,0m for Euro’08 * (Q2)4,5m for Beijing’08 (Q3)Lower gross margin

“Beijing” traction keeps going

Studio 47% of orderbookDue to longer leadtime34% of order intake Jan-Apr

HD ~70%

* UEFA Euro2008 rental agreement already booked in March

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Guidance 2008Limited visibility and U$ evolution ?

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 yearSalesEPS

Euro 2008 (Q2)

Beijing 2008 (Q3)

More HD

ExpandRecruit

Open offices

New products

85

95

8-24 Aug 08

7-29 Jun 08


Agenda

Financials

Business update

Outlook

Corporate

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May 20’s General MeetingFind detailed invitation & proxy on our website www.evs-global.com

OGMAnnual Report 2007Final Gross dividend EUR 1.48: ex-date May 27Employee profit sharing plan (~6k EVS shares)Renewal Board Member: J.Galloy

EGMRenewal own shares buy-back programmeShould be called up again for June 10 (due to min. 50% quorum issue)


EVS shareholding as of May 14, 2008in % shares and issued warrants – based on last received shareholders statements

Warrants1.2%

Treasury shares2.4%

Unidentified63.1%

Cytindus2.2%

BIP5.3%

PoweCap4.4%

Founders18.4%

Fortis IM3.0%

March 31, 2008 stock data:

Basis : 13,875,000 ordinary shares

Outstanding warrants : 119,250

Treasury shares : 285,049 shares

Mkt Cap: EUR 944 million

1Q08 stock data:

Standard velocity: 88.9%

Average daily volume: - 49,750 shares- EUR 3.4 million

* Board members

*

*

*

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EVS share price in May 2008Huge volume on May 15, no real impact on a two week period

64.86

67.00

69.6568.16

60.9062.25

64.9065.42

65.8567.12

65.8765.10

50.00

60.00

70.00

80.00

2-May 5-May 6-May 7-May 8-May 9-May 12-May 13-May 14-May 15-May 16-May 19-May0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

Volume Cours EVS


Corporate Matters

CalendarTuesday 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 revenueThursday 4 September 2008: 2Q08 revenue & earningsThursday 13 November 2008: 3Q08 revenue & 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 Investors 1Q08Earnings 080520 OGM publish v11 · Official partner for 2008 Cannes 18 digital...

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