March 2006 Jacques Galloy, CFO Group Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1 www.evs-global.com
www.evs-global.com
March 2006Jacques Galloy, CFO Group
Corporate Presentationincl. 4Q05 & FY05 EarningsSeptember 7, 2006
Pierre L’Hoest, CEO EVS.TVJacques Galloy, CFO Group
2Q06 & 1H06 Earnings
1www.evs-global.com
2www.evs-global.com
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 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
3www.evs-global.com
Agenda
Financials
EVS TV business update
XDC business update
Outlook
Corporate
4www.evs-global.com
Highlights
Record quarterSales 22.4m€, up 180% QoQStrong operational gearingEPS 0.61€, up 4x QoQ
Market traction for XT[2]® and new applications
Strong summer backorder 28,7m €, up 12% YoYH2 above management expectations
30 Jobs created over 12 months
Transition year for XDC
Revised guidance: Sales growth to exceed 40%
5www.evs-global.com
Financials
EVS TV business update
XDC business update
Outlook
Corporate
Agenda
6www.evs-global.com
Ongoing strong Sales since XT[2] launch
6,99,5
7,3 6,2
9,47,3
8,6 8,5 8,7
11,9
16,6
8,7 8,1 8,0
20,822,4
20,5
16,8
1Q02
2Q02
3Q02
4Q02
1Q03
2Q03
3Q03
4Q03
1Q04
2Q04
3Q04
4Q04
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
3Q06
Quarter Sales€ m
Wcup RentalXT launch
ESPN HD Launch
FOX NFL HD launchBSkyB Near-Live Project
small rentals for Olympics & Euro2004
overall gear-upSKY Soccer HD
LaunchXT[2]
?
*
* 2006 rentals
*
*
7www.evs-global.com
Strong EMEA & APAC, steady NALAPositive outlook for all regions
NALA EMEA APACEVS TV Revenue€ m
2,14,6 4,9 4,7 5,3
22%
2Q05 3Q05 4Q05 1Q06 2Q06
Growing HDTVHD AdsStudio ~ 30%SD still 15%
positive 2006 outlook
Sport events 2006Studio ~ 25%SD still 40%
bullish 2006 outlook
Sport events 2006Jap, Sing, Au, Ch, IndStudio ~ 35% SD still 50%
bullish 2006 outlook
4,5
14,4
10,0 11,013,7
2,0 1,8 1,84,9
3,4
58%
20%
2Q05 3Q05 4Q05 1Q06 2Q06 2Q05 3Q05 4Q05 1Q06 2Q06
8www.evs-global.com
Growing TV servers sales % inside studios… thanks to coherent product offering
1999
2000
2001
2002
2003
2004
2005
2006
E
StudioProduction
OutsideBroadcast
27 30
5246
34
17
28
EVS TV Sales in million €
200% studio growth
2.000+ studio users
20%+ is HD
System engineering
Interoperability
Networked projects
30%20%
13%9%8%
6%
10%
> 75
30%
9www.evs-global.com
2Q06 Sales of 22.4m €EPS of 0.61 €/share
2Q05 1Q06 2Q06
Revenues 8.0 20.5 22.4Gr Profit % 78% 82% 80%
S&A (2.6) (2.7) (3.7)R&D (1.3) (1.4) (1.9)EBIT Gp.Sh. 2.7 13.4 12.5EBIT margin 34% 65% 56%
Taxes (1.1) (4.8) (4.3)NetC result Gp.Sh. 1.7 8.7 8.4
Non-current - - 3.0Net Profit Gp.Sh. 1.7 8.7 11.4fdEPS (NCRGpSh.) 0.12 0.63 0.61
1) Non-current appears as net of tax implications2) Fully Diluted EPS is computed on the adjusted number of shares, i.e. less own shares3) S&A and R&D expenses until June 30, 2006 include 100% of XDC
1)
2)
Q2- in m€, IFRS accounting rules -
Sales+180% vs 2Q05
Weak €/$ impact
40% SD / 60% HD
0,9 m for XDC
EBITNAB + Mkting
+ 30 staff
1H06 EBIT 60%
> 90% RoE
10www.evs-global.com
25,9
22,5
6,3
0,20,40,70,41,2
EBITGpSh1H05
Gr PftTV
S&A TV R&D TV XDCEBITGpSh
SBC Others EBITGpSh1H06
EBIT
1H06 EBIT margin of 60%Strong operational gearing and XDC loss contribution
1H06 -- Million €
39%
60%EBIT margin %
-
=--
--
11www.evs-global.com
EVS dilution to 47% in XDCgenerated 3.4m € dilution profit
Breakdown of the dilution profit
47% x share capital increase (12.5m€) 5.9less EVS investment in 2nd round - 2.0less 13% (ie. 60%-47%) of XDC equity * - 0.5
Dilution profit +3.4
* net equity pre-money
12www.evs-global.com
16,2
40,00,0
3,0
21,6
26,7
4,0
2,0EventsRentalsorders H2BL 1 Jul + Jul+ Aug
EventsRentals H1
Sales H1
@ August 312005
71,7
41,8
+70%
@ August 312006
Strong summer order intake
Non-recurring events rentals
Strategic studio deals wins
Still 40% SD / 60% HD
1)
Secured sales 2006 ~72m€ as of July 1including 5m€ rentals
1) BL = BackLog = open orders to be shipped and invoiced as of quarter beginning
WOlympics66% WCup
43
34% WCupAsianGames
13www.evs-global.com
Track record & guidance
0 0 0
0 0,10,9 1,5 2,4
2,7
2,82,2
1.99
5
1.99
6
1.99
7
1.99
8
1.99
9
2.00
0
2.00
1
2.00
2
2.00
3
2.00
4
2.00
5
2.00
6
Sales pro-forma **EBITOut of whichDigital Cinema Investment
€ m
2.35.0
9.5
21.716.6
27.8 26.830.3
34.1
46.9
2006
Buoyant mkt conditions
Focus on Customer/Product
Internationalization
Avg Sales Growth 1995-2006 : +35%
53.8
Broadcast Market Trend
> 75
* Even years are sport years** Excluding Netia, sold in 2004
*
*
*
*
*
*
*
*
*
14www.evs-global.com
Agenda
Financials
EVS TV business update
XDC business update
Outlook
Corporate
15www.evs-global.com
IBC München
12 Stadiums Very big technology exposureStadium replays : 100% EVS HD
Major IBC “speedclipping” platform
The numbers15 support staff
200 XT series servers
100 IP Director workstations
50 access stations to 1500h clipbase
World Cup Soccer 2006 !
Target reached for EVS teams & technology
70.000 logs & 54.000 videoclips !
« Sit back, relax »
Grab powered by EVS
www.evs-global.com
Open format policy
www.evs-global.com
IBC2006 Sept 8-12 Amsterdam (NL)
DEMO
BAR MEETING
STORAGE ROOM
www.evs-global.com
Open format policyEVS connections in IBC Partners Village
19www.evs-global.com
Growing TV servers installed base highlights future potential
1998
1999
2000
2001
2002
2003
2004
2005
2006
XT*HDReady
XT*SD
HCT*SD
1.0001.200
2.300
1.900
1.500
700850
@December 31
XT
# of
Launchof
Launchof
500
HDLaunch
of
Innovation & growth
2.800 servers
4.000+ users
23% is HD
40% in Studio /
60% in OB trucks
SD to upgrade to HD
1 Upgr for 5 New
networked systems
2.800
Launchof
*
* guidance
20www.evs-global.com
Agenda
Financials
EVS TV business update
XDC business update
Outlook
Corporate
21www.evs-global.com
Group structure
EVS Gp
XDC S.A.
VCs
XDC France S.A.
XDC USA Inc
Hoverlord S.A.
52.8%47.2%
65%
100%
10%
XDC Highlights
EVS dilution from 60% down to 47%
2006 as transition yearCinestore® Solo G3 (MPEG2-JPEG2000)Access to contentDefend 80% market shareDevelop leading digital panEuropean Hub
OutlookJune 2006: 12.5 million € additional equityInitiating Phase 2 roll-out : deploy 800 screensExpected ‘06 5 million € investment at EBIT levelXDC France & XDC Germany
22www.evs-global.com
Agenda
Financials
EVS TV business update
XDC business update
Outlook
Corporate
23www.evs-global.com
EVS TV long term growth drivers
Increasing # content distribution channelsDigital TV, Sat-TV, Cable-TV, IPTV, WebTV, DTT, VOD, Free-to-Air
Tapebased to tapeless transitionOngoing from current 25% servers penetration
Accelerated by SD to HD transitionOngoing from current 5-15% HD penetration
Multimedia or SpeedclippingFrom linear to non-linear video consumptionMobile TV, internet TV, IPTV
Create Near-Live Studio Mkt nicheGetting 5% of a 1 bn€ market
Increasing popular SportsInternationalization, second leagues
www.evs-global.com
Strong order intake => strong Q3
Open format policy
> 40% growth in sales & EPS
Operational gearing
Transition year for XDC
Outlook 2006
25www.evs-global.com
Agenda
Financials
EVS TV business update
XDC business update
Outlook
Corporate
26www.evs-global.com
EVS shareholding as of 31-08-2006in % shares and issued warrants – based on last received shareholders statements
Basis : 13.875.000 ordinary sharesWarrants : 202.800 granted
all in-the-money and exercisable b/w 10/2006 and 4/2011Shares bought-back : 293.402 shares
program up to 10%
EVS Broadcast Equipment S.A.
MinguetFamily
CEO XDC
L’HoestFamily
CEO TV
MichelCounsonHardware
Free Float
Cytindus BIP
DTV sa
Own shares
50%
7.4%
50%
14.7%
2.5%60.6%
Grantedwarrants
1.5%
3.0% 5.3%
PoweCap
5.0%
Founders’ Agreement
XDC S.A.
47%
12%VC’s
29%12%
27www.evs-global.com
Meet you at the IBC2006 in AmsterdamSept 8-12 -- Booth 8.191