evs: 1q12 results · 2016. 2. 15. · evs: 1q12 results may 10, 2012 jacques galloy, cfo geoffroy...
TRANSCRIPT
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
FinancialsFinancialsBusiness updatepOutlookCorporate
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
11www.evs-global.com
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
12www.evs-global.com
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
13www.evs-global.com
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
FinancialsFinancialsBusiness updatepOutlookCorporate
15www.evs-global.com
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
18www.evs-global.com
Innovation in StudioBuilding best class enhanced workflows
Product Portfolio Evolution 2005-2012Product Portfolio Evolution 2005-2012Studio2005
DVCPro ProRES
19www.evs-global.com
Innovation in StudioEnlarged product portfolio bringing the company to a new plateau
Product Portfolio Evolution 2005-2012Product Portfolio Evolution 2005-2012Studio2012
DVCPro ProRES
20www.evs-global.com
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
21www.evs-global.com
Agenda
FinancialsFinancialsBusiness updatepOutlookCorporate
22www.evs-global.com
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
24www.evs-global.com
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
25www.evs-global.com
Agenda
FinancialsFinancialsBusiness updatepOutlookCorporate
26www.evs-global.com
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%
27www.evs-global.com
* 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
28www.evs-global.com
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
29www.evs-global.com
EVS’EVS C-CastC Cast
www.evs-global.com 30