Forward Looking Information - EVS Broadcast Equipment€¦ · forward-looking information that...
Transcript of Forward Looking Information - EVS Broadcast Equipment€¦ · forward-looking information that...
1
1Q10 Results
www.evs-global.com1
May 2010Pierre L’Hoest, CEO
Jacques Galloy, CFOGeoffroy d’Oultremont, IRO
Forward Looking Information
The statements made in this presentation that are not historical facts containThe 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
www.evs-global.com2
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
2
Agenda
Financials
Business update
Outlook
www.evs-global.com3
Corporate
Agenda
Financials
Business update
Outlook
www.evs-global.com4
Corporate
3
Highlights 1Q10
Strategic achievements: Studio deals and new promising segments
Big events 2010: Winter Olympics, World Cup, more to come
Acquisition of OpenCube Technologies
1Q10 results:EUR 20.9 m revenue (+17% vs. 1Q09, +6% at cst exch. rates)
Operating margin of 46%
EPS of EUR 0.46 (vs 0.40 in 1Q09)
Spring order book of EUR 31.6 million at April 30 (+150%)
www.evs-global.com5
EUR 22.7 million open order book
EUR 8.9 million order intake in April 2010
60% is studio
Expectations for 2010Double digit sales growth & resilient EBIT margin
3539
Quarter Revenue
Seasonal orderbook
Open orderbook Mar. 31 = EUR 22.7 million+ April order intake EUR 8.9 million
13
710
7 7
1316
97
26
13
25 2428
15
2218
29
24
35 34
913
24
16
2732
Seasonal orderbook
In EUR millions
Invoiceable in current fiscal year
www.evs-global.com6
7 7 7 6 7
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2003 2004 2005 2006 2007 2008 2009 2010
4
34.4
37.2
1Q10 revenue of EUR 20.9 million
20082007 2009 2010
6 99.8
7 39.4
7 38.6 8.5 8.7
11.9
16.6
8.7 8.1 7 8
19.7
16.4
20.121.9
24.1
19.019.9
23.324.4
27.225.4
13.6
17.818.719.620.520.9
Quarter Big Events Rentals
Quarter Revenue
Launch
Launch[IP]Director
LaunchNew studioproducts
www.evs-global.com7
6.9 7.36.2 7.3 7.8
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2002 2003 2004 2005 2006 2007 2008 2009 2010
EUR millions
LaunchXT[2]
Geo Segment Mix 1Q101Q10 vs 1Q09 : NALA +35%, EMEA -11%, APAC +119%
20.0
NALA EMEA APAC
Revenue, EUR millions, quarterly
10.5
13.3 13.5
10.8
6.98.3
10.9
15.514.4
18.9
5.7
10.89.6
13.114.5
9.5
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2006 2007 2008 2009 2010
4.7 5.3
8.2
2.5
7.99.5
8.1
5.26.7 6.9
10.0
4.2 4.95.8
3.4 3.1
6.7
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2006 2007 2008 2009 2010
4.93.4
2.4
5.7 5.1 5.5 5.36.5
4.3
8.67.2
3.82.1
3.3 3.1 2.84.6
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
2006 2007 2008 2009 2010
9.5
4.66.7
Studio ~ 63% Studio ~ 64% Studio ~ 64%
www.evs-global.com8
Traction from Winter Olympics in Vancouver
Impact from currencies
Come back of large studio projectsHD viewers take-off signs
Impact from currencies
Recovery from tough 2009Traction from Asian events from 2H 2010
Impact from currencies
5
1Q10 Revenue of EUR 20.9 millionReported
S l1Q09 4Q09 1Q10
EUR millions, IFRSActual Q1
Sales+17% vs 1Q09
Gross marginLower due to 2 large studio projects and rentals in Vancouver
EBITOpex up 19% due to higher employee count, incl. Temporary contracts
R&D 22% (i t f f t )
Revenues 17.8 20.5 20.9Cost of sales (3.0) (3.9) (4.5)Gross margin 83.0% 81.0% 78.5%
S&A (2.6) (2.6) (3.1)R&D (2.9) (3.4) (3.6)
EBIT 9.1 10.6 9.6EBIT margin 51.0% 51.7% 46.1%
www.evs-global.com9
R&D up 22% (invest for future)
XDCNearing break even
EPS up 15% vs 1Q09
Exchange result (0.3) (0.1) (0.3)XDC @equity (0.8) 0.3 (0.2)XDC dilution profit - 1.3 -
Taxes (2.8) (2.9) (2.8)
Net Profit 5.4 9.4 6.3Basic EPS 0.40 0.69 0.46
1) Basic EPS is computed on the adjusted number of shares, i.e. less own shares
1)
Breakdown of +0.9m net result variance
1Q10 net profit of EUR 6.3 million, +0.9m
1Q10 – EUR millions
Highlights
5 4
1.6-0.4 -0.6
-0.0 -0.1 -0.2
5.7
0.6
6.3
Net Result
Higher gross profit
19% Opex growth
Stable taxes as a result of
www.evs-global.com10
5.4 5.7better geographical mix
Improving XDC
6
2010 : the take-off year
Stakeholders funding
Market Events Corporate Events
XDC European leader DC service15.9m€ loan + warrantsExecuted Feb 10, 2010EVS 41.3% but 30.2% fully diluted
6 major studios VPF deals
Fortis KBC ING Consortium Scalable > 50m€ credit facility
130 staff
1.600+ committed digi.screensAgnostic for projectorsService oriented
To distributorsTo exhibitors
www.evs-global.com11
FTT acquisitionVertical integrationDE, Ö, CH, NL, PL, HUN33m€ additional revenuesAdd. 50 staff
3D boostTrigger to go digitalAccelerates deploymentTicket price sensitivity
Contribution of EUR -0.2 millionto EVS Group over 1Q10
XDC 100% 1Q09 1Q10
1Q10 Income Statement Leading EU deployment
in millions of EUR
Revenue 1.7 9.9
EBITDA -0.1 1.3
Net result -1.7 -0.5
41.3% affiliate of EVS since
31/12/09
Sales multiplied by 5 !
First quarter of FTT consolidation
www.evs-global.com12
EVS share x 47.2% x 41.3%
XDC contribution -0.8 -0.2
Nearing break-even point
7
Mar. 31, 2010 Balance Sheet
EVS strong balance sheet at 31/03EUR 36.6 cash on the balance sheet
Highlights
Equity = 76% of total B/S
94,472 own shares (offset equity)
Cash = 42% of assets: short term deposits
Dividend = 34mJun09 = 20 m (1 48 p sh )
XDC, 6.5
Working Capital,
31.6 Net equity, 65.7
Building, 11.7
Total: 86.4 Total: 86.4
www.evs-global.com13
Jun09 20 m (1.48 p.sh.)Nov09 = 14 m (1.00 p.sh.)
DSO ~70 days
Net Wking Capital = 1.5 sales month
Cash, 36.6Working Capital,
19.1
LT debt, 1.6
Assets Liabilities
Agenda
Financials
Business update
Outlook
www.evs-global.com14
Corporate
8
Our Focus in 2010 : 4 strategic axes
Consolidation of our position in OB vansXT[2]+ / Xtnano
EPSIO: integration of graphic tools into the broadcast serverEPSIO: integration of graphic tools into the broadcast server
Increase the potential in the studio marketConsolidation of full EVS workflows (e.g., GolTV, Sky News)
Delivery of new Panasonic codec AVC Intra in 4Q10, in preparation of 2012
www.evs-global.com15
Create new niches thanks to new products & solutions
Service projectsBig events (Vancouver, World Cup)
Leagues (archives, delivery systems)
NAB Trade Show
April 11-16, 2010, Las Vegas
Attendance: 88,000 registered people (more than 2009, but still below the 2008 record)
General atmosphere: recovery mode, but still cautious and looking for solutions providing efficiency
3D was a hot topic, generating a lot of questions
N j t i th i d t
www.evs-global.com16
No major announcement in the industry
EVS Broadcast:Active tradeshowVery positive feedback on the OpenCube acquisition
9
NAB Trade Show
Growing range of servers
EVS’ 3 key messagesGrowing range of servers
XT[2], XS, XTnano
Extended open architectureinteroperability with third party tools, combined with the upcoming native support of the AVC-intra codec
www.evs-global.com17
Extended control on content processing IPEdit, Xedio Dispatcher and Epsio
..acquired by EVS last April 1
..at a glance
Corporate− S.A. founded in 2003, by Benoit Février & Cie− Head offices in Toulouse (South France)( )− 2009 sales EUR 1.4 million, profitable− Worldwide sales: France, EMEA, USA, Japan, Australia− 15 employees
Solutions for Broadcast, Post-production & Corporate Markets− Worldwide recognition for MXF expertise (SMPTE) and file-based workflows− Base Line: « Workflow Enabler » and « Open Tools & Standards »
www.evs-global.com18
A brand name in the industry with international blue chip customers− Broadcast: MTV, Disney, CNN, RTL, Mediaset, Canal+, France TV, TF1 etc− Post-Production: Éclair, Mikros, Teletota, Studio L’Equipe, ParkPost etc− OEM: Avid, Panasonic, Telestream, IBM, Tektronix, DVS, Digital Rapids etc− Corporate: Airbus
10
HDTV and SDTV Video/IT Servers− OpenCubeHD and OpenCubeSD: video/IT servers for seamless, powerful and flexible audiovisual production
workflows; can be used as digitization gateways, ingest stations, or simple VTR replacements in a post-production environment
− OpenCubeHD 2.2 offers powerful tools for creating DCI-compliant DCPs (Digital Cinema Packages) and a KDM application including color conversion capabilities reliable Jpeg2K encoding data encryption and safe delivery It
Product Line & Know-how
application, including color conversion capabilities, reliable Jpeg2K encoding, data encryption and safe delivery It ensures full interoperability in DCP exchanges with the D-Cinema players currently on the market.
MXF Software− OpenCube MXFTk® Toolbox: set of high-performance software tools for managing the MXF (Material eXchange
Format) standard file format− Accessible via an intuitive and ergonomic graphical interface, XFConverter converts wrapper formats (such as MXF,
Quicktime, GXF and AVI) without requiring their video/audio essences to be modified and guarantees real media workflow interoperability
− XFReader: Player that runs under Windows and allows users to play back all MXF files on a display unit or SDI Video Screen
P2 Software− P2Soft HD: comprehensive solution for the ingest, viewing and editing of Panasonic P2 media files, HD or SD. It
www.evs-global.com19
p g g gautomatically detects production environments, such as Avid for example, and provides an upgradeable metadata support system.
Services− Consulting - Metadata Studies - Workflow Validation: Advice and expertise to ensure successful and cost-
effective migration from a video environment to IT architecture and the efficient use of metadata in production facilities and TV channels.
− Ad hoc development and product customization: As part as its services offer, OpenCube Technologies handles contract-based video and IT-related development projects. It can also customize its Servers and Toolkits to fit specific customer needs.
− MXF Training: OpenCube Technologies offers MXF training programs for companies that plan to integrate the MXF file format into their operations.
Technology partners
CaptureAcquisition Editing On-Air Archiving
Camcorders
NRCS/MAM
ArchiveServersNLE
www.evs-global.com20
Servers
11
Complementarity with EVS
www.evs-global.com21
FIFA World Cup™Facts and figures
June 11th to July 11th
10 stadiums10 stadiums32 teams64 gamesProduction:− Int. Broadcast Center of 30.000 sq.m. − 2,500 people from HBS (production)− 40 journalist teams− 300+ cameras
www.evs-global.com22
300 cameras− Complete HD Media server (FIFA MAX) of the event− Total of 3,000 hours of production with many different
packages (feeds, clips, statistics, highlights, rushes, etc)− Expected audience: 26 Bio cumulated viewers
12
FIFA World Cup™Production workflow – around 400 EVS servers
VENUES DISTRIBUTIONIBC (Studio)
www.evs-global.com23
120+ EVS servers
50+ EVS servers
150+ EVS servers
FIFA World Cup™Host Broadcasting over the years
1998 2002 2006 2010Match coverage 16 cameras
Incl. 4 SSM20/23 camerasIncl. 3/6 SSM
25 camerasIncl. 6 SSM+ 0 / 1 ultra motion
29/32 camerasIncl. 6 SSM& 1 / 2 ultra motion
Stereo Multi channel sound (all elements available)
Dolby 5.1& 0 / 1 cable systemDolby 5.13D production of 25 games
Feeds Match only MultifeedsIncl. turnkey programme “EBIF Show”
Same as 2002+ improved turnkey programme+ 2 player cams
Same as 2006+ mobile feed
HD Additional prod.< 40 matches6 cams
Additional prod.48 matches8 cams
All matches 25 camsMain coverage HD ready16/9
All feeds HD Ready16/9Media server HD Ready+ 25 h of daily footage
Innovations All digital LSM/SSM
Dream TeamM l i f d
HD 16/9M di / l
All HDM h D 1
www.evs-global.com24
LSM/SSM Multi feedsTurnkey programmeEditorial contentNetworked LSMsEmbedded audio2 countries !
Media server/tapelessCD quality commentaryUltra motion
Match Day -1Media server HDFile transfer40 ENG crewsOff-side line
Mobile - Symbolic usage of TV feeds
Integrated IBC production centre for:- Specific packages- Pan & scan
Specific mobile feedMatch + team packages
13
Agenda
Financials
Business update
Outlook
www.evs-global.com25
Corporate
Winter Order Book at April 30EUR 31.6 million
Larger projects
EUR 31.6m
34 1
6.56.1
7.38.5
April order intake, excl. RentalsBig event rentals
BL 01/04, excl. events rentals
12.6
g p jdecreasing order book readabilityIncludes EUR 6.1m rentals for big events+ 3.4m for 2011 and beyond
+150%
31.634.1
www.evs-global.com26
20.3
7.3
17.05.3
2008 2009 2010
14
2004-2010 evolution : Big events direct rentals..bearing in mind that EVS represents only 5-7% of global event rentals
8.49.0
Innovation
7.0
2 9
5.2
2.0
2.0
0.9
Asian events
Euro soccer championship
Soccer world cup
Winter Olympics
5.7
Remote functions
Increased speed
Time zones mgt
www.evs-global.com27
0.6 0.82.4
2.9
0.1
2004 2006 2008 2010
Summer Olympics
* Orders up to April 30, 2010
*
0.7
Guidance 2010 supported by big events and studio projects
2008 2010 2012 2014
www.evs-global.com28
Double digit growth & resilient marginsLow visibility due to economic uncertaintiesGrowing studio sales mix !Triggers are major sporting eventsAt least EUR 8.4 mio rentals relating to 2010 big events
Continued focus on product developmentsFirst big 3D TV productions
2010
15
EVS TV long term growth driversSolid fundamentals
Increasing # content distribution channelsDigital TV, Sat-TV, Cable-TV, IPTV, WebTV, DTT, VOD, Free-to-AirFrom linear to non-linear video consumption
Accelerated by SD to HD transitionOngoing from current 10-40% Broadcast HD penetration
Tapebased to tapeless transitionOngoing from current 40% servers penetration
Speedclipping production
www.evs-global.com29
Structured near-line archiving for post-live use
Create Near-Live Studio Mkt nicheGetting 5% of a 1bn€ market opportunity
Increasing popular SportsInternationalization, second leagues, Stadiums
Agenda
Financials
Business update
Outlook
www.evs-global.com30
Corporate
16
EVS shareholding as of May 10, 2010in % shares and issued warrants – based on last received shareholders statements
May 10, 2010 stock data:
Founders19.0%
Fortis IM4.2%
Cytindus2.3%
BIP2.1%
Barclays Global
Basis : 13,625,000 ordinary sharesOutstanding warrants : 124,650 @46Treasury shares : 94,472 sharesMkt Cap @40.00: EUR 545 million
Last 12 months stock data:
Standard velocity: 62% (12 months)Average daily volume:
- 33,000 shares- EUR 1.4 million
*
*
www.evs-global.com31
y3.1%
Treasury shares0.7%
Unidentified68.6%
Excl. block trading and transactions out of Euronext Brussels (+30%)
EVS has bought back 15,797 shares In 1Q10
* Board members
Historical returns to shareholdersEUR 1.48 proposal final dividend
Evolution of dividend,
Proposed final 2009dividend: EUR 1.48
3 00
1.20
1.20
1.481.48 1.48
0.110.16
0.47
0.160.52
0.05
Capital reimbursement
Share buyback
Final dividend (June)
Evolution of dividend, share buyback and capital reimbursement, in EUR per share 2.15
2.44
3.00
2.53
www.evs-global.com32
0.480.80
1.00 1.00
0.08 0.12 0.10 0.10 0.20
1.001.20
0.06 0.14 0.14 0.09
0.60
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Interim Dividend (November)
Pay out ratio*: 28.4% 27.3% 27.0% 28.7% 142.3%82.0% 82.2% 58.1% 71.0% 69.7% 126%
*: defined as gross dividend on net profit from operations, excl. XDC
17
Corporate Calendar
Tuesday May 18, 2010: Combined Ordinary & Extraordinary
2010
Shareholders Meeting
Monday June 7, 2010: Postponed ExtraordinaryShareholders Meeting
Thursday August 26, 2010: 2Q10 revenue and results
www.evs-global.com33
Given that, since 2009, the company has advanced the publication of its half year result from September to the end of August,the management of EVS has decided to stop with the publication of its trading statement mid July.
May 18 OGM Agenda & proposals
Total Gross Dividend EUR 2.48 (pay-out 126%) Final Gross EUR 1.48 ex-date May 27, ie. EUR 20.1m
Employee profit sharing planEmployee profit sharing plan30 shares per employee, EUR 0.3m
Auditor : BDO renewal for 3 yearsBoard mandates
Ends : Cytindus SA, repr. by Michel Delloye, Chairman, after 13 years
Renew:Pierre L’Hoest (CEO), Michel Counson (CTO), founders, for 6 yearsLaurent Minguet (founder former co CEO) Francis Bodson for 1 year
www.evs-global.com34
Laurent Minguet (founder, former co-CEO), Francis Bodson, for 1 yearAccès Direct SA, repr by Pierre Rion, independent, for 4 years
New (CV’s available on evs-global.com):Christian Raskin, independent, for 1 year Jean-Pierre Pironnet, for 1 year
RemunerationFix annual EUR 4.000EUR 750 per attendance (EUR 1.000 for chair)
18
May 18 EGM Agenda & proposals
Renewal of Authorized capital procedureSpecial reports available on evs-global.comg
Issuance of 250.000 warrants for inventoryTo be granted over future yearsSpecial reports available on evs-global.com
Cancellation of art 32 of statutesJust cleaning
www.evs-global.com35
Shall certainly be postponed to June 7 (quorum issue)
1Q10 Revenue of EUR 20.9 mio (+17.1%)
ConclusionsImproving trends
Studio = 64% of sales !
1Q10 EPS of EUR 0.46
Improving business trends
Spring order book of EUR 31.6 mio + EUR 3.4 million for 2011
2010: double digit growth for sales and resilient EBIT margins
www.evs-global.com36
Strong balance sheet
Good confidence in the future potential of the company and new niches, focus on R&D
19
Contacts: 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
2010, Studio year
www.evs-global.com37