2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006...

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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

Transcript of 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006...

Page 1: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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

Page 2: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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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

Page 3: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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Agenda

Financials

EVS TV business update

XDC business update

Outlook

Corporate

Page 4: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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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%

Page 5: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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Financials

EVS TV business update

XDC business update

Outlook

Corporate

Agenda

Page 6: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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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

*

*

Page 7: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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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

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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%

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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

Page 10: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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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 %

-

=--

--

Page 11: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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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

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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

Page 13: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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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

*

*

*

*

*

*

*

*

*

Page 14: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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Agenda

Financials

EVS TV business update

XDC business update

Outlook

Corporate

Page 15: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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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

Page 16: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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Open format policy

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IBC2006 Sept 8-12 Amsterdam (NL)

DEMO

BAR MEETING

STORAGE ROOM

Page 18: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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Open format policyEVS connections in IBC Partners Village

Page 19: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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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

Page 20: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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Agenda

Financials

EVS TV business update

XDC business update

Outlook

Corporate

Page 21: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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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

Page 22: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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Agenda

Financials

EVS TV business update

XDC business update

Outlook

Corporate

Page 23: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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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

Page 24: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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

Page 25: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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Agenda

Financials

EVS TV business update

XDC business update

Outlook

Corporate

Page 26: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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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%

Page 27: 2Q06 & 1H06 Earnings€¦ · Corporate Presentation incl. 4Q05 & FY05 Earnings September 7, 2006 Pierre L’Hoest, CEO EVS.TV Jacques Galloy, CFO Group 2Q06 & 1H06 Earnings 1. 2 Forward

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Meet you at the IBC2006 in AmsterdamSept 8-12 -- Booth 8.191