evs: 3q12 results€¦ · highlights on olympic 3q12 welcome joop janssen, new ceo 3q12 results:...
TRANSCRIPT
EVS: 3Q12 results
November 15, 2012Joop Janssen, Managing Director & CEO
Jacques Galloy, Director & CFOG ff d’O lt t IROGeoffroy 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 on Olympic 3Q12
Welcome Joop Janssen, new CEO
3Q12 results: EUR 39.5 m revenue (+32.3% vs. 3Q11, OB: +4.6%, Studio : +76.0%, growth in all regions mainly in NALA)
EUR 6 5 f t l i l f th Ol i G i L dEUR 6.5m of rentals, mainly for the Olympic Games in London
Operating margin of 48.8%, up from 46.6%
Order book: EUR 34.1 million at October 31 (+10.3% excl. big events)65.0% of order book is studio
EUR 22,4 million to be invoiced in 2012
10 months order intake: +22.7%%
Expectations for 2012EUR 134 m secured sales to be invoiced in 2012 in hands at October 31
U l k 4Q ft bi tUsual weaker 4Q after big events
Sales growth above 25%
Opex growth slightly above 13%, translating into EBIT profit growth of above 40%
Interim dividend EUR 1.16
5www.evs-global.com
3Q12 revenue reach EUR 39.5 mRevenue (EUR millions)
Quarter big events rentalsStudio revenue (excl rentals)
34 337.2
42.8
39.5
Studio revenue (excl. rentals)OB revenue (excl. rentals)
24.3
27.225.5
34.3
30.2
33.2
26.9
23 4
29.831.0 30.0
20.023.2
24.3
13 7
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 1Q 2Q 3Q
2007 2008 2009 2010 2011 2012
XT3
2007 2008 2009 2010 2011 2012
6EUR millionswww.evs-global.com
All regions are growingStronger Studio & OB in all regions Revenue (EUR millions)g g
NALA EMEA APAC
18.920.0
23.5
19.5
10 0
12.711.4
14.4
10.79.7
13.114.6
9.5
17.617.4
16.4
13.9
9.5
16.817.717.6
6.86.9
10.0
4.24.9
5.8
3.53.1
6.7
9.1 9.1
4.1
4.7
7.9 6.8
6.1 5.65.7
4.3
8.57.2
3.8
2.1
3.33.1 2.8
4.63.5
6.7 6.3
4.1
6.06.2 7.2
6.8 6.6
8.6
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q
2008 2009 2010 2011 2012
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q
2008 2009 2010 2011 20121Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q
2008 2009 2010 2011 2012
3Q12 growth : +67.1%USD/EUR: +10% 9M12 vs 9M11Studio represents 46.5% of 9M12 (32.6% in 9M11)
3Q12 growth : +16.2%9M12 growth: +50.8%4.8m rentals relating to London 2012
3Q12 growth : +37.3%Japan recovery
7
(32.6% in 9M11)
www.evs-global.com
3Q12 sales up 32.3% and EBIT margin of 48.8%Reported
Actual Q3In millions of EUR 3Q11 3Q12
Sales+32.3% vs 3Q11
Revenue 29.8 39.5Cost of sales (5.7) (8.1)Gross margin 81.0% 79.4%
Opex+18.8% due to higher sales fees, employee count, new ERP and new top management
S&A (4.8) (6.2)R&D – gross (5.4) (5.9)R&D – tax credit 0.3 0.2
EBITEBIT 48.8%, up from 46.6%
EBIT 13.9 19.3
EBIT margin 46.6% 48.8%
Financial result 0.0 (0.5) , p
EPS 0.98€Net profit EUR 12 7 million
( )
Dcinex & mecalec at equity 0.5 0.0
Taxes (4.4) (6.1)
Net profit EUR 12.7 millionNet profit 10.0 12.7Net profit from Ops 9.8 13.2Basic EPS from Ops 1) 0.73 0.98
81) Basic EPS is computed on the adjusted number of shares, i.e. less own shareswww.evs-global.com
9M12 sales up 47.9% and EBIT at 49.9%Reported
Actual 9MIn millions of EUR 9M11 9M12
Record sales+47.9% vs 9M11+2.7m due to stronger USD
Revenue 75.9 112.3Cost of sales (16.3) (22.9)Gross margin 78.6% 79.6%
EBITEBIT margin of 49.9%, up from 41.0%Opex: +17.7% due to higher employee count
S&A (14.1) (16.3)R&D – gross (14.9) (16.7)R&D – tax credit 1.7 0.8
2011 includes one-off R&D tax credit of 1.1m
dcinex9M11 i l d d i fi l i
EBIT 31.1 56.0
EBIT margin 41.0% 49.9%
Financial result (0.1) (1.5)9M11 included a one-time profit relating to the sales of CineStore B.U. to Barco
( ) ( )
dcinex & mecalec at equity 3.1 0.1
Taxes (9.5) (17.2)
EPS 2.89€Net profit from ops EUR 38.8 million
Net profit 24.5 37.4Net profit from Ops 22.9 38.8Basic EPS from Ops 1) 1.70 2.89
91) Basic EPS is computed on the adjusted number of shares, i.e. less own shareswww.evs-global.com
9M12 EBIT margin at 50% due to higher salesFixed cost base still weights (opex growth +18%)
Breakdown of 24 9m EBIT variance HighlightsBreakdown of 24.9m EBIT variance
EBIT 9M12 vs 9M11 – EUR millions
Highlights
R&D
29.7
2.11.8 0.9 0.0
Positive leverage from 36.4m (+47.9%) higher sales with gross margin of around 80%
50%R&D
29.7
56.0
18% higher opex, also due to one-time R&D tax credit in 9M11
41%
31.1
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EVS strong balance sheet at 30/09EUR 43.2 million cash on the balance sheet
Sept 30, 2012 Balance Sheet Highlights
Intangibles,
Equity = 67% of total B/S
171 303 own shares (offset equity)
Total: 116.7 Total: 116.7
N t
Building, 17.6
Intangibles, 1.8 171,303 own shares (offset equity)
Inventory: XT3, projects in progress, big events
Working Capital,
45.8
Net equity,
78.4
p g g
Cash = 37% of assets: short term deposits
Cash,
XDC & Meca, 8.3
Working
LT debt, 1.0
Dividend = 32mJun12 = 16 m (1.20 p.sh.)
Nov12 = 16 m (1.16 p.sh.),43.2
Working Capital,
37.3
A t Li biliti
DSO ~70 days
Net Wking Capital = 0.7 sales Assets Liabilities month
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Team growth, +9% over 1 year50% in innovation (R&D)
Headcount evolution @30/09 Leverage effect on future sales
350
400
450
500
Net +35 employees in 12 months (+8.9%)
438In FTEs
100
150
200
250
300
Still 20+ open positions
0
50
100
Investment in Innovation: 49% R&DExpansion: 37% sales & opsExpansion: 37% sales & ops
New building and foreign offices 11727%
Operations
R&Dextensionsin FTEs
and %43
10%64
21449%
S&M
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14%G&A
New building financing: 9.3m on own cash… consolidating current 6 buildings and 20+ containers
Planning is on target
Global investment40m gross investment, opening 1Q14less subsidies and resale of existing= 26m net cash-out= 26m net cash-out
Investment update€ 9.3m spent so far (on equity cash)Expected € 3m to be paid in 4Q12Expected € 3m to be paid in 4Q12€ 14m credit line signed but stillunused
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dcinex contribution to EVS Group in 9M12
9M12 Income Statement Leading EU deployment
dcinex 100%41.3% affiliate of EVS
9M11 9M12still 45% to digitise, end of 35mm
In millions of EUR
Revenue 62.2 62.0#1 in Europe (35% mkt share)
Flat sales in 9M12
EBITDA 12.5 15.9
Flat sales in 9M12Underlying growing VPF sales
EBITDA margin of 25.6%Gain on Cinestore deal, gross
5.0 -g
Positive Free Cash Flow
EVS share x 41.3%
x 41.3%
dcinex contribution, net 3.0 0.1
Geographical expansion
IFRS
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Agenda
FinancialsFinancialsBusiness updatepOutlookCorporate
15www.evs-global.com
London 2012 !Biggest EVS operations evergg p
EUR 6 million rental revenues over 3Q1227.07.2012 - 12.08.2012
EVS rented equipment and services750 XTs or 4.500 HD video channels
IBC
Host OBS Private video cloud : 5.500 hours HD AVC intra100+ involved customers100% HD and first 10% 3D games
OB-like43 locations & stadia | ~10 sports in parallelManaging time zones (Tokyo +8, Los Angeles -8)1 000+ (5% h ti )
OBS Host1,000+ cameras (5% hypermotion)
Studio-likeOBS Host & RHBs
CentralServer
3,000+ TV staff in London (Venue + IBC) & 5,000+ remote2,200+ hours of live MDS TV streamingIBC : 48,300+ sq. m. (“Intl Broadcast Center”)50 loggers – 28,000 clips
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gg , p
EVS won 3 awards at IBC2012... EVS focuses on innovation
TV Technology Europe STAR awardXT3/XS with triple encoding capabilities
I-Frame for live editing – 100-200MbpsXDCAM for studio (delivery as from early 2013) – 50 MbpsLoRes for cloud (delivery as from early 2013) – 3-6Mbps
SVG Outstanding Technical Achievement in Sport Broadcast awardin Sport Broadcast awardC-Cast
second-screenmedia delivery platform for Euro 2012
What caught my eye” in the Convergence category IBCWhat caught my eye in the Convergence category, IBC
European Research project “FINE” with other partners (MediaPro, Tracab,..)Real-time virtual camera positioning for sports
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NALA record sales
Quarter evolution – in EUR m EVS
Second record quarter in a row
...record even if 10% stronger USD
12.7
11.4
Workflow innovation leader
Successfull expansion7.9
Offices in NY, LA, Montréal
Strong LatAm : Mexico, Brazil,..4.7
6.86.1 5.6
Leading in Sports OB & Studio
Growing in entertainment shows
Gain of market shares
Gain of new customers1Q 2Q 3Q 4Q 1Q 2Q 3Q
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2011 2012
Key long term trends
Global economy slowdownLower advertising growth and public budgets cuts in EULower advertising growth and public budgets cuts in EU… but growing subscriptions for digital TV
Overall +5% broadcast equipment industryOverall +5% broadcast equipment industryWeak western and mainly South Europe… but growing emerging markets… successfull focused players
Inflating sport rightseven +30 till +65% in major leaguesInternational coverage expansion
50% of TV workflows are file-based80% in OB but only 40% in studio80% in OB but only ~40% in studioMigration from baseband to IP workflows
HD & 3Gbps penetration of 50% of global TV productionHD & 3Gbps penetration of 50% of global TV production…and 4K is coming
19www.evs-global.com
Continuous image quality improvements… drives upgrades, XT3: much more powerful than XT2
More cameras
More imagesper second
More pixels i
XXcameras per second per image
Y # T f A i R l ti R tiYear # cameras Type of camera
Average images per second (ips)
Resolution Ratio (Mpps)
2006 18 16 @ 25 ips2 @ 75 ips
30 ips 0.4 Mpixels (SD) 12 Mpps
2010 26 18 @ 25 ips6 @ 75 ips2 @ 200 ips
50 ips 1.0 Mpixels 50 Mpps
x 4
? 2014 36 18 @ 25 ips8 @ 75 ips6 @ 200 ips
70 ips 2.0 Mpixels 140 Mpps
x 3
3Gbps
And the future is … 3D, 4K, etc
Strategy Plan 2016 due 1Q13
Strategy Plan 2016In line with ambition for the company
New management structureTo underpin the strategy plan
Emphasison market potentialon market potentialand successfull EVS fundamentals
Customer first
21www.evs-global.com
Agenda
FinancialsFinancialsBusiness updatepOutlookCorporate
22www.evs-global.com
Global Autumn Order Book at October 31Current Year Y portion better than 2011 and even 2010 post WC
34.1m, +10.3% vs 2011 excl. big events rentals22.4m orders to be invoiced in 2012o de s o be o ced 011.8m orders for 2013 and beyond (+20.1% excl. big events) 65% of EUR 34.1 million is studio
3.229.828 031.4
34.5 34.1
1 9 0.4
6.4
6 4
8.4 9.811.8
1.3
5.4
Big events rentals Y+1
Order book Y+1
28.0EUR 11.8mshould be invoiced in Y+1 = 2013
23.7
16 219.5 21.1 22.4
1.9
2.8
6.4
Big events rentals Y
11.5EUR 22.4mShould be invoiced in
8.7
16.2
2007 2008 2009 2010 2011 2012
Order book Y Y = 2012
2007 2008 2009 2010 2011 2012
PostOG
PostWC
PostOG
FY2012 Secured Sales at October 31Much more than only big event traction
9M12 sales 112.3m + Order book 22.4m = Secured Sales FY12 134.7m
134.7
105.7105.1
97.4
+38.2%
Still Nov and Dec72.3
Still Nov and Decto go
but delivery times f 4 8 kof 4-8 weeks
2008 2009 2010 2011 20122008 2009 2010 2011 2012
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Outlook 2012
Order book of EUR 22.4 million at October 31 (+4%)or +5 8% excl the big event rentalsor +5.8% excl. the big event rentals60% OB / 40% Studio and growth in all regionsResilience in hesitant and competitive marketsp
Record 2012OB stronger than expected, developing new added value nichesBig event rentals around EUR 10 million in 2012B tt 2H12 th li ti i t d (Q3 Q4)Better 2H12 than earlier anticipated (Q3 > Q4)FY12 sales will grow by more than 25%Opex to increase by slightly more 13%, implying >40% EBIT growthOpex to increase by slightly more 13%, implying 40% EBIT growth
2013 uneven year without big events but new products coming
25www.evs-global.com
Interim dividend: EUR 1.16, ex-date Nov 19Dividend yield 5.9% on average last 12 months
Evolution of dividend, share buyback 3 00
0.520 05
0.27
0 1
share buyback and capital reimbursement, in EUR per share 2.44
3.00
2.53
2.91
2.53
1.48 1.48 1.481.20
0.47
0.160.05 0.17
Capital reimbursement
Share buyback
2.15
1.20
1.48
0.110.16
Final dividend (June)
Interim Dividend (November)
0.480.80 1.00 1.00
1.16 1.16 1.16
0.08 0.12 0 10 0 10 0.20
1.001.20
0.06 0.14 0.14 0.09
0.60
0.12 0.10 0.10
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
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%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% 5.9%
26
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% 5.9%
*: defined as total gross dividend divided by net profit from operations, excl. dcinex (former XDC)** defined as total gross dividend divided by average share price of the fiscal year www.evs-global.com
Agenda
FinancialsFinancialsBusiness updatepOutlookCorporate
27www.evs-global.com
EVS shareholding as of November 14, 2012in % shares
M. Counson; 6.5%*
BNP Paribas; 4.2%
Fidelity; 3.0%
Ameriprise; 3.1%
November 14, 2012 stock data:
Basis : 13,625,000 ordinary sharesOutstanding warrants : 465 400 @37 44 UK 20%
****
**p ;Treasury shares;
1.3%Unhedged
warrants; 0.8%
Outstanding warrants : 465,400 @37.44Treasury shares : 171,303 sharesMkt Cap @45.50: EUR 620 million
Last 12 months stock data:
UK 20%
US 10%Last 12 months stock data:
Standard velocity: 89% (12 months)Average daily volume:
46 000 shares
US 10%
F 10% Individuals10%
Unidentified; 81 1%
- 46,000 shares- EUR 1.8 million
Source: Fidessa, incl. block trading and transactions out of Euronext Brussels
DE 7%
10%BE13%
Unidentified; 81.1%
EVS has not bought back any share in 2012
* Board member** According to shareholders notifcations
28www.evs-global.com
Corporate calendar
2012-2013
Monday November 19, 2012 Coupon 15 ex-date
Thursday November 22, 2012 Coupon 15 pay-date
Thursday February 21, 2013 FY12 earnings
1Q13, date TBC Strategy Plan 2016 investor day
6-11 April 2013 NAB TradeShow
Thursday May 16, 2013 1Q13 earnings
Tuesday May 21, 2013 Ordinary General Meeting
Thursday August 29, 2013 2Q13 earnings
Thursday November 14, 2013 3Q3 earnings
29www.evs-global.com
Conclusions
Record 2012
Strong 3Q12 with EUR 39.5m sales and 48.8% EBIT marging Q g
Record 9M12 with 112.3m sales and 49.9% EBIT
Strong global order book of EUR 34 1 millionStrong global order book of EUR 34.1 million
C ti d i t t i i ti l d t t d d d t tf liContinued investment in innovation leads to extended product portfolio
2012: revenue growth above 25% and EBIT growth above 40%
Current low visibility for 2013.. without big sporting events
Strategy Plan 2016 to be disclosed in 1Q13
30www.evs-global.com