EVS full year 2011 earnings presentation

489 views

Published on

EVS full year 2011 earnings presentation

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
489
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

EVS full year 2011 earnings presentation

  1. 1. EVS: 4Q11 and FY11 results February - March 2012 Roadshows www.evs-global.com 1
  2. 2. 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, 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 www.evs-global.com 2
  3. 3. Agenda Financials Business update p Outlook Corporate www.evs-global.com 3
  4. 4. Agenda Financials Business update p Outlook Corporate www.evs-global.com 4
  5. 5. Highlights 2011 Key Highlights: Key wins: OB Panorama (Russia) studio project (Eastern Europe) Sport Center (Russia), Europe), (EMEA) Record order book: EUR 46.1 million (+83%) ! 2012: big events FY11 results: EUR 106.9 m revenue (-3.8% vs. 2010, +6.3% at cst xrates excl. big event rentals) Operating margin of 41.3% O ti i f 41 3% EPS of EUR 2.38 (vs 2.82 in 2010) Record order book: EUR 46.1 million at Feb. 15 (+73.0% excl. big events) A few large projects, but also lots of smaller deals 54.1% of order book is studio with longer leadtime Expectations for 2012 Product launches Stronger 1H12, also thanks to the big events More uncertainty on 2H12 www.evs-global.com 5
  6. 6. 2011 revenue: -3.8%+6.3% at cst exch. rate excl. big events EVS Revenue 111 110 107 in million € 95 -3.8% 85 77 Studio Production 48 -12.9% 52 46 34 Outside 28 27 30 Broadcast 17 596 +5.2% www.evs-global.com 6
  7. 7. Turnover 2011: EUR 106.9 millionEBIT margin 41% 120 130% 111 111 Sales in S l -i m€ 107 120% 100 EBIT Margin 94.7 110% 100% 85 90% 80 76 80% 67% 65% 58%62% 70% 60 52 62% 60% 48% 46 42% 41% 49% 50% 50% 40 36% 39% 30 34 41% 40% 28 27 32% 30% 15% 22 20 11% 17 20% 8% 9 5 10% 2 0 0% * estimate subject to usual forward looking statements www.evs-global.com 7
  8. 8. Turnover 2011: EUR 106.9 million EUR millions EBIT % 2010 2011 37.2 Quarter big events rentals 34.4 33.2 31.0 Quarter revenue (excl. Big event rentals) 30.2 29.8 29 8 27.2 26.9 65% 25.4 24.1 24.4 23.3 22.7 23.4 21.9 20 5 20.9 20.5 19.7 20.1 19.9 19 9 19.6 19 6 19.0 17.8 18.7 42% 16.4 13.6 Launch New studio products d t Launch XT3 8.1 7.8 Launch Launch 34% XT[2] [IP]Director 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 2005 2006 2007 2008 2009 2010 2011 www.evs-global.com 8
  9. 9. Sales by regionBig disparities in the trends between the regions g p gRevenue, EUR millions, quarterly NALA EMEA APAC 20.0 18.9 17.6 17.7 17.4 16.4 16.8 16 8 15.6 14.4 14.6 13.9 13.1 10.9 10.7 9.7 9.5 9.5 10.0 9.5 8.2 9 0 9.2 9.0 8.5 8.0 8.1 7.9 6.9 7.2 7.2 6.7 6.3 5.7 6.5 6.8 6.9 6.7 6.9 6.0 6.2 6.1 5.1 5.5 5.3 5.8 4.3 4.6 5.2 4.9 3.8 3.5 4.1 4.7 3.3 3.1 4.2 3.5 4.1 2.8 3.1 2.1 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 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 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 www.evs-global.com 9
  10. 10. 4Q11 Revenue of EUR 31.0 millionReported Sales Actual Q4 In millions of EUR 4Q10 3Q11 4Q11 Revenue 26.9 29.8 31.0 +15.3% vs 4Q10 Cost of sales (6.3) (5.7) (6.8) Gross margin Gross margin 76.6% 76 6% 81.0% 81 0% 78.0% 78 0% Positive impact of fixed costs portion from COGS S&A (4.2) (4.8) (5.5) R&D – gross (4.9) (5.3) (5.6) EBIT R&D – tax credit 0.9 09 0.2 02 0.3 03 Opex up 30.5% due to higher employee EBIT 11.8 13.9 13.0 count and commercial fees to distributors, EUR 0.3 million costs associated with the EBIT margin 43.9% 46.6% 41.9% departure of Pierre L’Hoest R&D includes EUR 0.3 million tax credit in Exchange result 0.1 0.1 0.0 4Q11 (EUR 0.9 m in 4Q10) XDC at equity 0.1 0.5 (0.7) Taxes (3.9) (3 9) (4.4) (4 4) (4.7) (4 7) EPS Higher taxes due to EUR 0.5m Net profit 8.2 10.0 7.5 adjustment for 2009 and 2010 in relation Net profit from Ops 8.4 9.8 8.7 with tax shelter Basic EPS from Ops 1) 0.62 0 62 0.73 0 73 0.65 0 65 1) Basic EPS is computed on the adjusted number of shares, i.e. less own shares www.evs-global.com 10
  11. 11. FY11 Revenue of EUR 106.9 millionReported Actual FY In millions of EUR FY10 FY11 Sales Revenue 111.2 106.9 -3.8% vs FY10, but +6.3% at constant Cost of sales (22.6) (23.1) exchange rate and excl. big event rentals Gross margin 79.6% 79 6% 78.4% 78 4% Gross margin S&A (15.1) (19.6) Lower mainly due to lower sales R&D – gross (17.1) (20.5) R&D includes tax credit of: 2011: EUR 2.1 million (incl. €1.1m one-time) ( ) R&D – tax credit 0.9 09 2.1 21 2010: EUR 0.9 million EBIT 55.5 44.1 EBIT EBIT margin 50.0% 41.3% Opex up by 21.6% XDC Exchange result (0.7) 0.0 Includes EUR 2.1 million (EVS share) profit XDC at equity (0.2) 2.3 on sale of CineStore activities in 1Q11 Taxes (16.7) (16 7) (14.3) (14 3) EPS Taxes up, partially following adjustment in Net profit 38.1 32.1 Q411 Net profit from Ops 39.7 31.7 as c S o Basic EPS from ops 1) 9 2.94 35 2.35 1) Basic EPS is computed on the adjusted number of shares, i.e. less own shares www.evs-global.com 11
  12. 12. FY11 EBIT waterfall vs. FY10Fixed cost base weighs Breakdown of -11 4m EBIT variance -11.4m Highlights EBIT FY11 vs FY10 – EUR millions Negative leverage from 3.8% 70 lower sales 50% 60 4.7 R&D 41% 50 4.5 22% higher opex, partially 3.4 34 40 1.1 offset by tax credit 30 55.5 Opencube: opex +0 5m in FY11 +0.5m 44.1 20 (consolidated since 2Q10) 10 0 www.evs-global.com 12
  13. 13. EVS strong balance sheet at 31/12EUR 19.9 million cash on the balance sheet December 31, 2011 Balance Sheet Highlights Total: 86.5 Total: 86.5 Equity = 64% of total B/S Goodwill, 1.7 Building; 183,372 183 372 own shares (offset equity) 11.9 Inventory: HDD buffer, XT3 Net Cash = 23% of assets: short term equity; Working 55.7 deposits Capital; 45.3 Dividend = 36m LT debt; Jun11 = 20 m (1.48 p.sh.) 1.1 Nov11 = 16 m (1.16 p.sh.) XDC; 7.8 Working DSO ~71 days y Cash; Capital; 29.8 19.9 Net Wking Capital = 1.7 sales month Assets A t Liabilities Li biliti www.evs-global.com 13
  14. 14. Team growth, +% over 1 year50% in R&D Headcount evolution @31/12 Leverage effect on future sales 450 415 400 Net +49 employees in 12 months In FTEs 350 300 Strong recruitments in 2010 250 200 Added-value recruitments HQ 150 20 foreign offices Operations Investment in 105 Innovation: 51% R&D 25% R&D Expansion: 35% sales & ops 211 in FTEs 51% and % 41 10% New building and foreign offices 58 extensions 14% S&M G&A www.evs-global.com 14
  15. 15. XDC contribution to EVS Group in FY11 FY11 Income Statement Leading EU deploymentXDC 100% FY10 FY11 41.3% affiliate of EVS sinceIn millions of EUR 31/12/09Revenue 61.2 84.3 Sales: +37.8%EBITDA 8.7 17.8 EBITDA margin of 21.1%Gain on Cinestore - 4.4 44deal, net Net result includes EUR 4.4Net result -0.5 5.6 million of one-time profit relating to the Cinestore disposal ( p (1Q11) )EVS share x 41.3% x 41.3%XDC contribution -0.2 2.3 www.evs-global.com 15
  16. 16. Agenda Financials Business update p Outlook Corporate www.evs-global.com 16
  17. 17. All-time record deal in RussiaRecognition of EVS strengths by Top national players Panorama, biggest and most innovative Russian Sports p , gg p production company p y Preparation of upcoming large sporting events: Kazan Universiades, 2013 Sochi winter Olympics, 2014 World cup soccer, 2018 12 OB vans i t t l b t in total, between 10 and 24 cameras d Total order of EUR 10.6 million: EUR 4+ m delivered in 2H11 d li di EUR 6+ m to be delivered in 2012 Training of 1,500+ operators in Russia ensuring large coverage of the market 1 500+ Russia, Large solution: XT3, network, removable storage systems, IPDirector www.evs-global.com 17
  18. 18. Audiovisual heritage of MonacoEVS as key player in that niche The archives of Monaco created in 1997 wanted to go digital in Monaco, 1997, order to improve their efficiency Context: Easy management of the video assets Quick Q ick generation of d plicates in m ltiple formats duplicates multiple Video delivery across multiple platforms Scope: 8,000 hours of video archive Media Archive Director (« MAD ») suite from EVS, allowing continuous monitoring of the entire video archiving process www.evs-global.com 18
  19. 19. 2012 big events …… All in EMEA, before moving to emerging countries Summer Olympics July 27 – Aug. 12 June 8 – July 1 y Paralympics Aug. 29 – Sept. 9 www.evs-global.com 19
  20. 20. The global TV Workflow2 billion viewers – 150 languages – 200 TV Stations g g FIELD INTL BROADCAST CENTER WW DISTRIBUTION 1.000 Cameras 1 Host 60 Partners 200 Rights Holders 60 OB van’s van s 50 Feeds 24/7 24 time zones … Capture p Ingest g Edit y On-Air Play-Out www.evs-global.com 20
  21. 21. London 2012What is new ? 3D (around 10% of production is also in 3D) Larger “Olympic News Channel” production g y (interviews, etc) – 250 journalists Main delivery system: 10 feeds immediately available through satellite (+ONC) Web access p g y Workflow improvement creating barriers to entry www.evs-global.com 21
  22. 22. 2004-2012 evolution : Big events direct rentalsBetween EUR 8-10 million in 2012 Innovation 10.2 8-10 Remote functions 9.0 Increased speed p 2.3 Time zones mgt 2.0 Asian events 5.7 Euro soccer championship 5.4 2.0 Soccer world cup 7.0 Winter Olympics 2.9 0.7 3.4 Summer Olympics 2.4 24 0.1 0.8 0.6 2004 2006 2008 2010 2012 www.evs-global.com 22
  23. 23. Future big events mainly in emergingsFocus on Brazil and Russia Paving the way for EVS expansion p www.evs-global.com 23
  24. 24. Agenda Financials Business update p Outlook Corporate www.evs-global.com 24
  25. 25. Tapeless studio CAGR+10% 2011-2015… while EVS is growing its market share Studio market evolution – % EVS market share i St di k t h in Studio 4.0 FY – in billion $ 95% Multifeed Studio Servers, SAN/NAS 2.0 80% 7% 1% Tapeless Monofeed Studio Embedded recorders Tape T 0.0 04 04 05 05 06 06 07 07 08 08 09 09 10 10 11 11 12 12 13 14 Source: Screen Digest / IABM 2011 EVS Studio sales 2005 2010 CAGR : 38% for servers, NAS/SAN & applications 2005-2010 38%, servers Current EVS Mkt Share of 6-8% www.evs-global.com 25
  26. 26. Record Winter Order Book at February 15+83.0 (or 73.0% excl. big events) EUR 46.1 m 46.1m to be invoiced in 2012 46.1 3.4 including 3+m for the London +83% Olympic Games 2012, 6+m 32.4 for Panorama OB vans, 4m 29.8 for studio in Eastern Europe, 4.4 25.2 Order book for event 3+m for sport center in EMEA rentals 7.0 0.5 +3.6m orders for 2013 and 16.6 16 6 42.7 42 7 beyond 28 Order book, excl. events 24.7 rentals 22.8 54.1% of order book is studio 16.6 2008 2009 2010 2011 2012 www.evs-global.com 26
  27. 27. Outlook 2012 Order book of EUR 46.1 million at February 15 46 1 +83.0% (or +73.0% excl. the big event rentals) 54.1% studio Including a few major deals, but also many smaller contracts, showing the market share gains and the underlying market resilience 2012: stronger 1H Developing new added value niches Big event rentals should reach EUR 8-10 million in 2012 H1 sales should be higher than H2 www.evs-global.com 27
  28. 28. Agenda Financials Business update p Outlook Corporate www.evs-global.com 28
  29. 29. EVS shareholding as of December 31, 2011in % shares February 15, 2011 stock data: Basis : 13,625,000 ordinary shares M. Counson; 6.5%* Outstanding warrants : 286 550 @39 286,550 L. Mi L Minguet; 0.7% 0 % Treasury shares : 183,372 shares BNP Paribas; 4.2% Mkt Cap @41.0: EUR 560 million Fidelity; 3.0% Last 12 months stock data: UK 20% Ameriprise; 3.1% p ; Treasury shares; 1.3% Unhedged Standard velocity: 49% (12 months) warrants; 0.8% Average daily volume: US 10% - 25 500 shares 25,500 - EUR 1.1 million Excl. block trading and transactions out of Euronext Individuals Brussels (+50%) F 10% 10% BE EVS has bought back 60,228 shares DE 7% 13% in 2011 Unidentified; 80.4% * Board members www.evs-global.com 29
  30. 30. Corporate calendar 2012 April 14-19, 2012 NAB tradeshow, Las Vegas Thursday May 10, 2012 y y , 1Q12 earnings Q g Tuesday May 15, 2012 Ordinary General Meeting Tuesday May 22 2012 22, Final dividend coupon 14: ex-date ex date Thursday May 24, 2012 Final dividend coupon 14: record date Friday May 25 2012 25, Final dividend coupon 14: payment date Thursday August 30, 2012 2Q12 earnings Thursday N Th d November 15 2012 3Q12 earnings b 15, i www.evs-global.com 30
  31. 31. Conclusions Jacques GALLOY, Director & CFO Geoffroy d’OULTREMONT, IRO Tel: +32 4 361 70 14 Fax: +32 4 361 70 89 Email: corpcom@evs.tv http://www.evs-global.com On the way to London 2012 FY11 revenue of EUR 106.9 million (+6.3% at cst rates and excl. event rentals) FY11 EBIT margin of 41.3% 4Q11 revenue of EUR 31.0 million (+22.7% at cst rates and excl. event rentals) Record order book of EUR 46.1 mio More product developments to be launched in 2012 Stronger 2012, with H1 > H2 2012 www.evs-global.com 31
  32. 32. EVSEVS’C CastC-Cast www.evs-global.com 32
  33. 33. HDTV: still a long way to goBig events driving HDTV sales The High Def Content Gap HDTV Drivers In million homes Total TV sets 1,400,000 +2% per year 1,200,000 SD / HD sets at 50% in 2014 1,000,000 SD TV sets 800,000 Still 70% of installed base in 2011 70% -5% per year 600,000 H D gap 400,000 All HD TV sets +20% per year in 2010-2014 200,000 More than 50% of HD Ready sets are not looking at HD (« HD gap ») 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 HD TV - HD content HD TV - SD content SD TV - SD content Source: IABM * An HD Ready does not look at HD programs www.evs-global.com 33
  34. 34. Installed base evidences future potential5,600 EVS servers (25,000 I/O channels) The EVS HD installed base is a few years in advance of the consumer market High definition content gap g p SD servers 45% SD TV SD servers 70% 80% SD TV 99% HD servers 55% HD TV HD servers 30% 20% EVS installed base TV sets EVS installed base TV sets 2005 2011 2005 2011 www.evs-global.com 34
  35. 35. Pay TV more resilient in economic slowdownSport is key Pay-TV content while olympics mainly on public TV Global Broadcast Revenue Evolution – in mio $* $ Highlights 250,000 CAGR 2011 2015: +7 3% 2011-2015: +7.3% Pay TV Subs TV advertising Public Fees: +1.1% 200,000 Public license fees Advertising: +7.3% 150,000 Pay TV subs: +7.5% 100,000 I 2001-2004: In 2001 2004 50,000 Advertising: +5% Pay TV subs: +60% y 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Post TMT Bubble * Source: PWC Global Media Outlook 2011-2015 (summer 2011) www.evs-global.com 35
  36. 36. Sport rights dependent on even years Evolution of TV Sport Rights – in mio $* Highlights CAGR 2011-2015: 6.7%40,000 2012: +11% vs. 201135,000 30 London Olympics30,000 APAC Continued increase of25,000 large league rights Multi platform rights20,000 EMEA Hedge: usual long term TV g g15,000 agreements10,000 NALA APAC 5,000 Low GDP & TV 0 penetration watches Intl 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 sport Source: PWC Global Media Outlook 2011-2015 (summer 2008) www.evs-global.com 36

×