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EVS Broadcast Equipment SA (0N9Z.L)

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At close: 5:42PM GMT
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Market cap231.408M
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PE ratio (TTM)30.99
EPS (TTM)0.53
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  • Globe Newswire

    EVS Broadcast Equipment reports 2020 results

    Publication on February 25, 2021, before market openingRegulated information – Press release annual resultsEVS Broadcast Equipment S.A.: Euronext Brussels (EVS.BR), Bloomberg (EVS BB), Reuters (EVSB.BR) EVS reports 2020 results Delivering profitability despite the impact of the pandemic, prepared to grow revenues and emerge stronger in 2021 thanks to a strong order book FY20 performance Revenue of EUR 88.1 million (-14.8% YoY or -14.2% YoY at constant currency)Operating expense increasing only 1.9% YoY despite the Axon acquisition on May 1st 2020Net profit of EUR 7.2 million (-63.4% compared to FY19 mainly due to lower revenue levels)Order intake 2020: -3% YoY (excl Big Event Rentals and including Axon), supported by a strong order intake in 4Q 2020.Keeping strong Net cash position: EUR 35.7 million (vs EUR 46.2 million in 2019) H2 performance Continued pandemic impact in 2H20, with EUR 48.5 million revenue (-22.2% or -20.7% excluding currency impact vs. 2H19)Gross margin of 65% including the Axon productsIncrease of operating expenses following the integration of Axon team (+8.5% in 2H20 compared with 2H19)EBIT margin of 4.5%, net profit of EUR 3.8 million Outlook Prepared to grow revenues and emerge stronger in 2021 thanks to a strong order book, strict cost management and realizing revenue synergies from the Axon acquisition 2021 financial outlook Order book of EUR 54.2 million on December 31, 2020 (incl. Axon) (+43.3% YoY) out of which: EUR 31.3 million to be recognized in revenue in 2021 (+48.2 % YoY and excl Big Event Rentals)EUR 10.0 million (excl. big events rentals) to be recognized in revenue in 2022 and beyond (+128.2% YoY)EUR 12.9 million for big events rentals related to events postponed into 2021 Given the uncertainties linked to the COVID-19 situation and the resulting difficulties to make projections, no revenue guidance is providedOpex is expected to slightly increase compared to prior year following the full year integration of Axon costs while keeping costs under control KEY FIGURES UnauditedEUR millions, except earnings per share expressed in EURAudited2H202H192H20/2H19FY20FY19FY20/FY1948.562.4-22.2%Revenue88.1103.4-14.8%31.545.5-30.7%Gross profit58.674.1-21.0%65.0%72.9%-Gross margin %66.5%71.6%-2.219.6-88.0%Operating profit – EBIT5.723.0-75.5%4.5%31.4%-Operating margin – EBIT % 6.4%22.3%-3.815.9-76.4%Net profit (Group share)7.219.6-63.4%0.281.14-75.6%Basic earnings per share (Group share)0.531.40-62.4% COMMENTS Serge Van Heck, CEO said: “Even in a Pandemic year dramatically impacting event & media industry, EVS delivered profitability and prepared for the recovery. We supported our customers to adapt their live production workflows to the new reality. The acceleration towards remote production was clearly a main theme for the whole year. We decided to keep all our team members at work to continue delivering the qualitative service our customers and business partners are used to. Additionally, we sustained our R&D efforts with an objective to deliver on our product and solution roadmaps We therefore continued executing our PLAYForward strategy, materialized by new solutions and the acquisition and integration of Axon, extending the scope of EVS solutions in the Media Infrastructure domain. I am very pleased with the current synergies already materialized at a higher level than initially planned and the dynamic of the integration with two teams fruitfully collaborating to win more business. The launch of LSM-VIA – the new replay and highlight remote control device of EVS, particularly fitting the needs of remote production – is a success and we currently experience a strong appetite from our operators community to produce content leveraging the new flexibility offered by the device.” Commenting on the results and prospects, Yvan Absil, CFO, said: “Our second half reflects the continued impact of the sanitary crisis. The order intake in the last quarter was fairly strong giving us a solid order book as we enter 2021. The environment remained challenging in this second part of the year as we continued our actions to keep our costs under control. We are particularly pleased with the results of our cost control initiatives, which allowed us to keep our operating expenses increasing only 1.9% year over year following the integration of Axon. Given the uncertainties on the market, these cost management efforts will continue this year as part of our FOCUS21 plan, allowing us to forecast a slight growth of our operating expense following the integration of Axon in 2021 vs 2020. Our strong order book of EUR 44.1 million (including Big Event Rentals) does give us some positive but prudent outlook for 2021”. Revenue in 2H20 and FY20 2H202H19%2H20/2H19Revenue – EUR millionsFY20FY19% FY20/FY1948.562.4-22.2%Total reported88.1103.4-14.8%49.562.4-20.7%Total at constant currency88.7103.4-14.2%49.461.6-19.9%Total at constant currency and excluding Big Event Rentals87.4102.1-14.3% EVS revenue amounted to EUR 48.5 million in 2H20, a 22.2% decrease compared to a 2H19 (-19.9% at constant currency and excluding Big Event Rentals). Revenue of solutions in LSP (Live Service Providers) represented 28.3% of the total group revenue. LAB (Live Audience Business) revenue represented 71.5% of total revenue in 2H20, and Big Event Rentals represented 0.3% of total revenue. In FY20, EVS revenue reached EUR 88.1 million, a decrease by 14.8% (-14.3% at constant currency and excluding the Big Event Rentals) compared to FY19. Out of the 2020 revenue, Live Service Providers, the most impacted by the COVID crisis had their revenues decreasing by 39% YoY. It represented 34.2% of the total revenues (vs 48.1% in 2019). Live Audience Business saw their revenues increase by 8.3% YoY. It represented 64.3% of the total revenues (vs 50.6% in 2019). Big events rentals represented 1.4% of the total revenues. Since May 1st, 2020 Axon (Media infrastructure), also impacted by the Covid Crisis contributed for EUR 7,9 million to 2020 revenues and EUR -1,6 million to net profit in the consolidated income statement for the 8 month-period ended 31 December 2020. Geographically, revenues (excl. Big Event Rentals) are distributed in FY20 as follows: Europe, Middle-East and Africa (“EMEA”): EUR 41.0 million (-14.1% YoY)Americas: EUR 26.5 million (-25.1% YoY)Asia & Pacific (“APAC”): EUR 19.3 million (+2.3% YoY) Second half 2020 results In 2H20, consolidated gross margin was 65.0%, compared to 72.9% in 2H19. This lower gross margin was mainly due to product mix which now includes Media Infrastructure products (ex-Axon) which have a lower gross margin than other EVS products. Operating expenses increased by 8.5% vs 2H19, mainly due the integration of Axon. The 2H20 EBIT margin was 4.5%. Income taxes were EUR -2.5 million following the adjustment for uncertain tax provision. Group net profit amounted to EUR 3.8 million in 2H20, compared to EUR 15.9 million in 2H19. Basic net profit per share amounted to EUR 0.28 in 2H20 (compared to EUR 1.14 in 2H19). 2020 results Consolidated gross margin was 66.5% for FY20, compared to 71.6% in FY19 due to the inclusion of Media Infrastructure (ex-Axon) into the product mix. Operating expenses increased by 1.9% YoY, thanks to strict cost management and careful headcount management despite inclusion of Axon costs for 8 months. The FY20 EBIT margin was 6.4% at EUR 5.6 million (or 7.7% at EUR 6.8 million excluding a one-time exceptional cost of EUR 1.1 million for the goodwill impairment from the SVS acquisition in 2014). Income taxes in FY20 amounts to EUR -2.8 million, mainly due to the effect of the innovation box regime in Belgium and other R&D tax incentives as well as the reversal of the uncertain tax provision.Group net profit amounted to EUR 7.2 million in FY20, compared to EUR 19.6 million in FY19. Basic net profit per share amounted to EUR 0.53 in FY20, compared to EUR 1.40 in FY19. Staff At the end of 2020, EVS employed 550 people (FTE). This is an increase by 86 team members compared to the end of 2019, following the integration of 80 team members from Axon. Average FTE in 2020 was 514 vs 465 in 2019. Balance sheet and cash flow statement Total equity represents 74.0% of the total balance sheet as of the end of 2020. Inventories amount to EUR 22.6 million. This is an expected increase compared to the end of December 2019, reflecting the preparation of the big sporting events in 2021 and the Media infrastructure inventory. In the liabilities, provisions include mainly the provision for technical warranty on EVS products for labor and parts. Lands and building mainly include the headquarters in Liège. Annual depreciation on this building is approximately EUR 2 million. Liabilities include EUR 17.0 million of financial debt (including long term and short-term portion of it), mainly relating to the Axon acquisition (EUR 5.0 million) and the lease liabilities (EUR 11.8 million). EVS repays EUR 1.1 million per year for the loan. Full details about IFRS 16 impact on the consolidated financial statements can be seen in note 5.2 and 5.12. The net cash from operating activities amounts to EUR 17.0 million in FY20. On December 31, 2020, cash and cash equivalents total EUR 52.7 million. This is a decrease compared to the end of 2020, following negative cash flows from the share buyback program (EUR 7.9 million) and acquisition of Axon. At the end of December 2020, there were 14,327,024 EVS shares outstanding, of which 928,207 were owned by the company. At the same date, 325,832 warrants were outstanding with an average exercise price of EUR 20.17 and an average maturity of March 2025. 2020 – different realities for the different market pillars From a market pillar perspective, we observed different dynamics on the market during this first pandemic year. Our LSP customers (Live Service Providers) did suffer a lot with a long list of cancelled events forcing them to let their OBVans on their parking. They focused on getting their business through this difficult period in Q2 and slowly started preparing for the events during the second half of the year. Organizing the production linked to the events was very challenging. They thus focused on short term operational issues more than planning the evolution of their infrastructure, strictly managing their cash. This explains the significant drop of revenue in 2020 compared to 2019 (-39%). Our LAB customers (Live Audience Business) market offered a different perspective. With countries locked down at home, broadcasters experienced exceptional levels of audience, even if suffering from significant decrease of advertising revenues. Broadcasters continued their modernization projects. Some broadcasters even considered the need to accelerate the modernization to support remote production workflows. LAB revenues slightly increased in 2020 vs 2019 (+8%) and LAB customers represent the majority of the order book for 2021. As announced in 2019, LAB represents a growth potential for EVS, even materialized during the challenging year 2020. BER (Big Events Rental) market stayed flat due to major summer sport events postponed to 2021. EVS managed to preserve the contracts and supported the customers in the adaptation of the production to the new realities. From a regional perspective, it must be noticed that the rhythm of the pandemic has been different in APAC with a sooner recovery and a shorter lock down cumulated period. Revenues in APAC region have been higher in 2020 than in 2019 (+2.3% YoY). NALA was the most affected region with a major decrease (-25% YoY). EMEA region also experienced a significant decrease (-14% YoY), especially in the second part of the year. For a similar perimeter as EVS on Jan 1st, OPEX have been significantly reduced due to strong bonus reduction, several layers of cost optimizations and the cancellation of marketing expenses linked to NAB2020 and IBC2020 shows. 2021 financial outlook and beyond 2021 remains a challenging year to predict, considering the timing of the vaccine, the presence of different virus variants forcing authorities to organize long lockdown periods and the consequences on events and media industry. In BER market pillar, EVS 2021 revenues will be influenced by the occurrence of the major summer sport events, representing around EUR 12.9 million of revenues. At this time, the events are still planned, and all the teams are preparing the infrastructure accordingly. We expect a recovery in the LSP market with an order book on Dec 31st, 2020 higher than the one of 2019 at the same date. Considering the order book, LAB is expected to be the structural market pillar supporting the growth of revenues in 2021 with continued modernization projects. We can also observe that we managed to increase our “long term order book” (beyond 2021), nearly doubling the ones of the 3 previous years. This result from the availability of OPEX offerings, SLA orders covering longer periods of time and multi-year revenue recognition linked to large modernization contracts. 2021 OPEX costs should slightly increase vs 2020 as it will include a full year of Axon costs. Status of the control by the Statutory Auditors The Statutory Auditor EY Réviseurs d’Entreprises SRL confirmed that their audit work on the annual consolidated financial statements, which is substantially complete, did not reveal significant matters requiring adjustments to be brought to the accounting information presented in the press release. Conference call – Registration required EVS will hold a conference call in English today at 3.30 pm CET for financial analysts and institutional investors. Other interested parties may join the call in a listen-only mode. The presentation used during the conference call will be available shortly before the call on the EVS website. Participants must register in advance of the conference using the link provided below. Upon registering, each participant will be provided with Participant Dial In Numbers, Direct Event Passcode and unique Registrant ID. 1. Online registration: https://emea.directeventreg.com/registration/71995442. Webcast Player URL: https://edge.media-server.com/mmc/p/65bsvo7a Corporate Calendar: May 18, 2021: Ordinary General MeetingMay 20, 2021: 1Q21 trading updateAugust 26, 2021: 1H21 resultsNovember 18, 2021: 3Q21 trading update For more information, please contact: Yvan ABSIL, CFO*EVS Broadcast Equipment S.A., Liege Science Park, 13 rue du Bois Saint-Jean, B-4102 Seraing, BelgiumTel: +32 4 361 70 00. E-mail:corpcom@evs.com; www.evs.com Forward Looking Statements This press release contains forward-looking statements with respect to the business, financial condition, and results of operations of EVS and its affiliates. These statements are based on the current expectations or beliefs of EVS's management and are subject to a number of risks and uncertainties that could cause actual results or performance of the Company to differ materially from those contemplated in such forward-looking statements. These risks and uncertainties relate to changes in technology and market requirements, the company’s concentration on one industry, decline in demand for the company’s products and those of its affiliates, inability to timely develop and introduce new technologies, products and applications, and loss of market share and pressure on pricing resulting from competition which could cause the actual results or performance of the company to differ materially from those contemplated in such forward-looking statements. EVS undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. About EVS EVS is globally recognized as the leader in live video technology for broadcast and new media productions. Our passion and purpose are to help our clients craft immersive stories that trigger the best return on emotion. Through a wide range of products and solutions, we deliver the most gripping live sports images, buzzing entertainment shows and breaking news content to billions of viewers every day – and in real-time.The company is headquartered in Belgium with offices in Europe, the Middle East, Asia and North America, and provides sales and technical support to more than 100 countries. EVS is a public company traded on Euronext Brussels: EVS, ISIN: BE0003820371.For more information, please visit www.evs.com. * representing a SRL Condensed Interim Consolidated financial statements ANNEX 1: CONDENSED CONSOLIDATED INCOME STATEMENT (EUR thousands)AnnexFY20AuditedFY19Audited2H20Unaudited2H19UnauditedRevenue5.388,111103,40048,53862,378Cost of sales -29,555-29,316-16,997-16,879 Gross profit 58,55774,08531,54145,499Gross margin % 66.5%71.6%65.0%72.9%Selling and administrative expenses -27,486-27,926-14,920-13,935Research and development expenses -24,004-22,603-13,287-11,926Other income 15293871Other expenses -1,217-89-1,17549Stock based compensation and ESOP plan -352-530-53-74Operating profit (EBIT) 5,65023,0302,19319,614Operating margin (EBIT) % 6.4%22.3%4.5%31.4% Interest revenue on loans and deposits 57384820Interest charges -833-604-450-341Other net financial income / (expenses)5.6-861295-868268Share in the result of the enterprise accounted for using the equity method 33916930258Profit before taxes (PBT) 4,35322,9281,22519,620Income taxes5.72,833-3,3202,535-3,691 Net profit 7,18619,6083,76015,929Attributable to : Non controlling interest Equity holders of the parent company 7,18619,6083,76015,929 EARNINGS PER SHARE (in number of shares and in EUR) FY20AuditedFY19Audited2H20Unaudited2H19UnauditedWeighted average number of subscribed shares for the period less treasury shares 13,668,61214,016,92113,520,35213,963,343Weighted average fully diluted number of shares 13,674,23214,016,92113,531,53113,963,343Basic earnings – share of the group 0.531.400.281.14Fully diluted earnings – share of the group (1) 0.531.400.281.14 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (EUR thousands) FY20AuditedFY19Audited2H20Unaudited2H19UnauditedNet profit 7,18619,6083,76015,929Other comprehensive income of the period Currency translation differences -49154-49838Other increase/(decrease) -78-592-75-595Total of recyclable elements -569-537-573-556Total comprehensive income for the period 6,61719,0713,18715,373Attributable to : Non controlling interest ---- Group share 6,61719,0713,18715,373 (1) The diluted earnings per share does include 187,000 warrants attributed in December 2020 and outstanding at the end of the year with an exercise price below the share price. These 187,000 warrants have maturity of October 2026. It does not include 138,832 warrants outstanding at the end of 2020 as these are not exercisable given the exercise prices were above the share price. ANNEX 2: CONDENSED STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) ASSETS (EUR thousands)NotesDec. 31, 2020AuditedDec. 31, 2019Audited Non-current assets : Goodwill 2,8321,125Other intangible assets 7,041173Lands and buildings5.1151,66249,365Other tangible assets 5,0344,344Investment accounted for using equity method 1,7601,421Other long term amounts receivables 543959Deferred tax assets 8,7256,570Other financial assets 395353Total non-current assets 77,99264,309 Current assets : Inventories 22,57916,823Trade receivables 30,72836,582Other amounts receivable, deferred charges and accrued income 5,9306,071Other financial assets 120238Cash and cash equivalents 52,66859,010Total current assets 112,024118,724Total assets 190,016183,033 EQUITY AND LIABILITIES (EUR thousands)NotesDec. 31, 2020AuditedDec 31, 2019Audited Equity : Capital 5.48,7728,772Reserves 149,308142,149Treasury shares -17,835-9,927Total consolidated reserves 131,473132,221Translation differences 267767Equity attributable to equity holders of the parent company 140,522141,761 Non-controlling interest -- Total equity5.4140,522141,761 Long term provisions 1,2991,636Deferred taxes liabilities 1,38919Financial long term debts5.1112,2516,070Other long term debts 993692Non-current liabilities 15,9328,418 Short term portion of financial debts5.114,7136,725Trade payables 5,7754,870Amounts payable regarding remuneration and social security 7,0058,302Income tax payable 2,2594,282Other amounts payable, advances received, accrued charges and deferred income 13,8118,675Current liabilities 33,56232,855Total equity and liabilities 190,016183,033 ANNEX 3: CONDENSED STATEMENT OF CASH FLOWS (EUR thousands)NotesFY20AuditedFY19AuditedCash flows from operating activities Net profit, group share 7,18619,608 Adjustment for: - Other income 18-592- Depreciation and write-offs on fixed assets 6,6585,483- Stock based compensation and ESOP5.4352530- Provisions -337-469- Income tax expense (+) / Gain (-) -2,8333,320 -Interests expense (+) / Income (-) 1,636270-Share of the result of entities accounted for under the equity method -339-169 Adjustment for changes in working capital items: -Inventories -3,648-1,709 -Trade receivables 8,204-4,726 -Other amounts receivable, deferred charges and accrued income -1,206-1,122 -Trade payables -1,446-72 -Amounts payable regarding remuneration and social security -1,671903 -Other amounts payable, advances received, accrued charges and deferred income 4,1841,244 -Conversion differences -40163 Cash generated from operations 16,35622,563Income taxes paid5.7686-4,059Net cash from operating activities 17,04218,504 Cash flows from investing activities Purchase of intangible assets -53-25W/O intangible assets 1,125-Purchase of tangible assets (lands and building and other tangible assets) -6,867-1,352Disposal of tangible assets 2071,020Business acquisitions -10,255-Other financial assets -36-17Net cash used in investing activities -15,878-374 Cash flows from financing activities Reimbursement of borrowings5.11-4,590-5,250Proceeds from new borrowings 8,687709Payment of lease liabilities -1,801-3,600Interests paid -1,652-609Interests received 5738Dividend received from equity-accounted investee -32Dividend paid - interim dividend --6,914Dividend paid - final dividend --6,646Other allocation -300-393Acquisition / sale of treasury shares4 & 5.4-7,907-5,177Increase in shareholders’ equity5.4--Net cash used in financing activities -7,506-27,810 Net increase in cash and cash equivalents -6,342-9,679Net foreign exchange difference (included in Net increase in cash in 2020) -991208Cash and cash equivalents at beginning of period 59,01068,482Cash and cash equivalents at end of period 52,66859,010 ANNEX 4: CONDENSED STATEMENT OF CHANGE IN EQUITY (EUR thousands) CapitalReserves Treasury sharesCurrency translation differencesEquity,share of thegroupNon-controlling interestTotal Equity Balance as at January 1, 2019 (reported)8,772136,601-4,750713141,336-141,336Change in accounting policies (IFRS 16) -46 -46 -46Balance as at January 1, 2019 (restated)8,772136,555-4,750713141,290-141,290Total comprehensive income for the period 19,017 5419,071 19,071Increase in shareholders’ equity-- ---Share-based payments 530 530 530Operations with treasury shares -5,177 -5,177 -5,177Final dividend -6,646 -6,646 -6,646Interim dividend -6,914 -6,914 -6,914Other allocation -393 -393 -393Balance as per December 31, 20198,772142,149-9,927767141,760-141,760 (EUR thousands)CapitalReserves Treasury sharesCurrency translation differencesEquity, group share Non-controlling interestTotal equityBalance as at January 1, 2020 (reported)8,772142,149-9,927767141,760 141,760Change in accounting policies Balance as at January 1, 2020 (restated)8,772142,149-9,927767141,760-141,760Total comprehensive income for the period 7,108 -4916,617 6,617Increase in shareholders’ equity-- ---Share-based payments 352 352 352Operations with treasury shares -7,907 -7,907 -7,907Final dividend -Interim dividend -Other allocation -300 -300 -300Balance as per December 31, 20208,772149,309-17,835276140,522-140,522 ANNEX 5: NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NOTE 5.1: BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS The full year 2020 and 2019 information in this condensed financial statement on pages 7 to 10 of this financial report is based on EVS Group’s consolidated financial statements of EVS Group for the 12 month-period ended December 31, 2020, which have not yet been published. This condensed interim financial statements of the Group were authorized for issue by the Board of Directors on February 24, 2021. This interim report only provides an explanation of events and transactions that are significant to an understanding of the changes in financial position and reporting since the last annual reporting period, and should therefore be read in conjunction with the full 2020 consolidated financial statements from which these condensed financial statements have been derived and which are planned to be published on EVS Group’s website by April 17, 2021. These condensed interim financial statements have been prepared and presented in accordance with the International Financial Reporting Standards (IFRS), as adopted for use in the European Union. The accounting framework and standards adopted by the European Commission can be accessed through the following link on the website: http://ec.europa.eu/finance/company-reporting/index_en.htm. NOTE 5.2: SIGNIFICANT ACCOUNTING POLICIES AND METHODS These condensed interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, as issued by the IASB, and as adopted by the EU. The accounting policies and methods adopted for the preparation of the Company's IFRS consolidated financial statements are consistent with those applied in the 2019 consolidated financial statements. The Company’s IFRS accounting policies and methods are available in the 2019 annual report on www.evs.com, except for the new, amended or revised IFRS standards and IFRIC Interpretations that have been adopted as of January 1, 2020 which are listed hereunder: IBOR reform Phase 1 amendments – effective 1 January 2020IFRS 3 amendments – effective 1 January 2020IFRS 16 amendment – effective 1 June 2020New materiality definition – effective 1 January 2020Updated references to the Conceptual Framework – effective 1 January 2020 The adoption of these new, amended or revised pronouncements did not have significant impact on the consolidated financial statements of the Group. NOTE 5.3: SEGMENT REPORTING From an operational point of view, the company is vertically integrated with the majority of its staff located in the headquarters in Belgium, including the R&D, production, marketing and administration departments. Following Axon acquisition, EVS now also has a portion of its staff located in Netherlands and UK, mainly R&D and production teams. The Axon products, forming the Media Infrastructure part of the solution blueprint are integrated into EVS solution portfolio. The majority of the investments and costs are still located at the level of the Belgian parent company. The other foreign subsidiaries are primarily sales and representative offices. The Chief Operating Decision Maker, being the Executive Committee, reviews the operating results, operating plans, and makes resource allocation decisions on a company-wide basis. Revenue related to products of the same nature (digital broadcast production equipment) are realized by commercial polyvalent teams. The company’s internal reporting is the reflection of the above-mentioned operational organization and is characterized by the strong integration of the activities of the company. By consequence, the company is composed of one segment according to the IFRS 8 definition, and the consolidated income statement of the group reflects this unique segment. All long-term assets are located in the parent company EVS Broadcast Equipment SA in Belgium. The company provides only one type of solution: live video technology for broadcast and new media productions with a consistent modular architecture. This is the product of EVS. There are no other significant classes of business, either singularly or in aggregate. Indeed, identical modules can meet the needs of different markets. Our customers themselves are often multi-markets. Providing information for each module is therefore not relevant for EVS. At the geographical level, our activities are divided into the following regions: Asia-Pacific (“APAC”), Europe, Middle East and Africa (“EMEA”), and America (“NALA”). This division follows the organization of the commercial and support services within the group, which operate worldwide. A fourth region is dedicated to the worldwide events (“Big Event Rentals”). The company provides additional information with a presentation of the revenue by market pillar: “Live Service provider” (LSP), “Live Audience Business” (LAB) and “Big Event Rentals” (BER) for rental contracts relating to the big sporting events. Finally, sales are presented by nature: systems and services. 5.3.1. Information on revenue by destination Revenue can be presented by Market Pillar: “Live Service provider”, “Live Audience Business” and “Big Event Rentals”. Maintenance and after sale service are included in the complete solution proposed to the clients. 2H202H19% 2H20/2H19 Revenue (EUR thousands)FY20FY19% FY20/FY1934,68932,679+6.2% Live Audience Business56,68552,328+8,3%13,72228,941-52.6% Live Service Provider30,15849,726-39.4%127758-83.3% Big Event Rentals1,2681,346-5.8%48,53862,378-22.2% Total Revenue88,111103,400-14.8% The above presentation includes the latest and refined classification of our customers by market pillar for both 2019 and 2020. 5.3.2. Information on revenue by geographical information Activities are divided by three regions: Asia-Pacific (“APAC”), Europe, Middle East and Africa (“EMEA”), and “Americas”. Aside of them, we also identify a fourth category “Big Event Rentals”. Revenue for the second half-year (EUR thousands)APACexcl. eventsEMEAexcl. eventsAmericasexcl. eventsBig eventrentalsTOTALH20 revenue11,99122,82413,59712748,538Evolution versus 2H19 (%)+18.2%-22.4%-38.3%-83.3%-22.2%Variation versus 2H19 (%) at constant currency+18.2%-22.3%-34.3%-83.3%-20.7%2H19 revenue10,14729,42522,04875862,378 Revenue for the YTD period (EUR thousands)APACexcl. eventsEMEAexcl. eventsAmericasexcl. eventsBig eventRentalsTOTALFY20 revenue19,31541,00226,5261,26888,111Evolution versus FY19 (%)+2.3%-14.1%-25.1%-5.8%-14.8%Variation versus FY19 (%) at constant currency+2.3%-14.0%-23.6%-5.8%-14.2%FY19 revenue18,87947,74435,4311,346103,400 Revenue realized in Belgium (the country of origin of the company) with external clients represent less than 5% of the total revenue for the period. In the last 12 months, the group realized significant revenue with external clients (according to the definition of IFRS 8) in two countries: The United States & the United Kingdom (respectively, EUR 22.8 million & EUR 9.0 million in the last 12 months). 5.3.3. Information on revenue by nature Revenue can be presented by nature: systems and services. 2H202H19% 2H20/2H19 Revenue (EUR thousands)FY20FY19% FY20/FY1941,72255,204-24.4% Systems74,87689,790-16.6%6,8167,174-5.0% Services13,23613,610-2.8%48,53862,378-22.2% Total Revenue88,111103,400-14.8% Services include advice, installations, project management, training, maintenance, and support. 5.3.4. Information on important clients Over the last 12 months, no external client of the company represented more than 10% of the revenue. NOTE 5.4: EQUITY SECURITIES The number of treasury shares has changed as follows during the period, together with the outstanding warrants: 20202019Number of own shares at January 1400,180151,724Acquisition of own shares on the market544,307262,952Sale of own shares on the market--Allocation to Employees Profit Sharing Plans-16,280-14,496Sale related to Employee Stock Option Plan (ESOP) and other transactions--Number of own shares at December 31928,207400,180 Outstanding warrants at December 31325,832138,999 In 2020, the company repurchased 544,307 shares on the stock market (under a share buyback program started on October 25, 2018 and May 6, 2020). No shares were used to satisfy the exercise of warrants by employees. The Ordinary General Meeting of shareholders of May 19, 2020 approved the allocation of 16,280 shares to EVS employees (grant of 54 shares to each staff member in proportion to their effective or assimilated time of occupation in 2019) as a reward for their contribution to the group successes. The expense related to this profit-sharing plan amounts to EUR 0.3 million and has been recorded under the caption “Stock based compensation and ESOP plan”. As a consequence, at the end of 2020, the company owned 928,207 own shares at an average historical price of EUR 19.21. At the same date, 325,832 warrants were outstanding (no grant, no exercise and 167 cancellations in 2020) with an average strike price of EUR 20.17 and an average maturity of March 2025. NOTE 5.5: DIVIDENDS The Ordinary General Meeting of May 19, 2020 approved the payment of a total gross dividend of EUR 0.50 per share, including the interim dividend of EUR 0.50 per share paid in November 2019, leading to no final gross dividend. (EUR thousands)# Coupon20202019- Final dividend for 2018 (EUR 0.50 per share less treasury shares)28-6,646- Interim dividend for 2019 (EUR 0.50 per share less treasury shares)29-6,914Total paid dividends -13,560 NOTE 5.6: OTHER NET FINANCIAL INCOME / (EXPENSES) (EUR thousands)FY20FY19Exchange results from statutory accounts364-369Exchange results relating to IFRS consolidation methodology-1,321549Other financial results96115Other net financial income / (expenses)-861295 The functional currency of EVS Broadcast Equipment S.A. as well as all of the subsidiaries is the euro, except for the American EVS Inc. subsidiary, whose functional currency is the US dollar. The presentation currency of the consolidated financial statements of EVS Group is the euro. For more information on exchange rates, see also the note 5.9. NOTE 5.7: INCOME TAX EXPENSE Reconciliation of the tax charge The effective tax charge of the group obtained by applying the effective tax rate to the pre-tax profit of the group, has been reconciled for the two periods with the theoretical tax charge obtained by applying the theoretical tax rate: (EUR thousands)FY20FY19 Reconciliation between the effective tax rate and the theoretical tax rate Reported profit before taxes, share in the result of the enterp. accounted for using the equity method4,01422,759Reported tax charge based on the effective tax rate2,833-3,320Effective tax rate-70.6%14.6% Reconciliation items for the theoretical tax charge Tax effect of non-deductible expenditures311408Tax effect on R&D investment deductions-1,029-1,426Tax effect on innovation deduction-2,122-5,932Tax effect of overvaluations and undervaluations related to prior years-1,4923,034Other increase / (decrease)393793Total tax charge of the group entities computed on the basis of the respective local nominal rates-1,106-6,443Theoretical tax rate27.6%28.3% The tax charge for FY2020 includes an adjustment of the tax costs related to prior years for a total amount of EUR +1,5 million including the reversal of accruals for uncertainties over income tax treatments according to the new interpretation IFRIC 23, effective 1 January 2019. NOTE 5.8: HEADCOUNT As of May 1st 2020, EVS has integrated about 80 team members following the Axon acquisition (in full time equivalents)At December 31Twelve-months average20205505142019464465Variation+18.5%+10.8% NOTE 5.9: EXCHANGE RATES The main exchange rate that influences the consolidated financial accounts is USD/EUR which has been taken into account as follows: Exchange rate USD / EURAverage FYAverage 2HAt December 3120201.14221.18081.227120191.11951.10961.1234Variation+2.0%+6.4%+9.2% For FY20, the average US dollar exchange rate against the Euro increased by 2%. It had a negative impact on FY20 revenue of EUR 0.5 million, or -0.56%. NOTE 5.10: FINANCIAL INSTRUMENTS The estimated fair values of the financial assets and liabilities are equal to their fair book values in the balance sheet. Periodically, EVS measures the group’s anticipated exposure to transactional exchange risk over one year, mainly relating to the EUR/USD risk. Given the group has a “long” position in USD and based on revenue forecasts, EVS hedges future USD net in-flows by forward foreign exchange contracts. The change in the fair value of the forward foreign exchange contracts goes directly through the income statement (other financial results) because the Group does not apply hedge accounting on these transactions. The valuation techniques used are mainly based on spot rates, forward rates and interest rate curves. On December 31, 2020, the group held USD 6.5 million in hedging contracts, with an average maturity date in June 2021, and an average exchange rate of EUR/USD of 1.1829. NOTE 5.11: FINANCIAL DEBT In order to partially finance its new HQ and operating facilities, EVS has drawn down a total of EUR 30 million loans. As of Dec 31st 2020, the final part of this loan has been reimbursed. This represented a total amount of EUR 5.2 million in 2020. On June 16, 2020, a new loan of EUR 5.5 million has been negotiated with BNP Paribas Fortis in order to partially finance the acquisition of Axon. A first repayment of EUR 0.6 million has been done at the end of fiscal year 2020. The annual installments is EUR 1.1 million per year between 2021 and 2024 with a final repayment of EUR 0.6 million in 2025 when the loan will mature. On June 29, 2020, a roll over credit line of EUR 5.0 million has been negotiated with Belfius bank in order to partially finance the acquisition of Axon. This amortizing credit line will end at the latest on 30/06/2024. As of this date, EVS has not used this credit facility.NOTE 5.12: LEASES The impact of IFRS 16 for Leases affected the statement of profit or loss for the twelve months ended 31 December 2020 as follows: FY20Depreciation expense (in Cost of sales)834Depreciation expense (in Selling and administrative expenses)1,046Depreciation expense (in Research and Development expenses)1,277Rent expenses (in Cost of sales, sales and R&D expenses)-2,958Operating profit199Finance costs-482Income tax expenses61Profit for the period-222 The carrying amounts of right-of-use assets, lease liabilities and the movements for the twelve months ended 31 December 2020: (EUR thousands)Land and buildingsOther tangible assets Lease AssetsAs at 1 January 20206,0592,2668,325Additions4,2281,5255,753Lease modification524352876Depreciation expenses-1,803-1,354-3,157Other-15-11-26Conversion differences-172-1-173As at 31 December 20208,8212,77711,598 (EUR thousands)Land and buildingsOther tangible assets Lease LiabilitiesAs at 1 January 20205,9822,3888,370Additions4,2281,5255,753Lease modification524352876Interest expenses39488482Conversion differences-172-1-173Other40-40Payments-2,047-1,421-3,468As at 31 December 20208,9482,93211,880 The statement of cash flows for the twelve months ended 31 December 2020 is affected as follows: FY20Net cash flow from operating activities3,436Net cash flow from financing activities-3,436Net increase in cash and cash equivalents- NOTE 5.13: PENSION PLANS The employees of EVS Broadcast Equipment SA benefit from a group insurance. In this context, EVS makes a contribution for each employee to the insurance companies. EVS benefits from a minimum return guaranteed by the insurance companies which set up the plans, and this until December 31, 2016 (minimum return requirement of the contributions, as required by law). However, on December 18, 2015, the Belgian legislation has been updated and clarification was provided on the minimum guaranteed rate of return. Before December 31, 2015, the minimum guaranteed rate of return on employer and participant contributions were 3.25% and 3.75% respectively. From 2016 onwards, the rate decreased to 1.75% and is annually recalculated based on a risk-free rate of 10-year government bonds. According to IAS19, Belgian-defined contribution plans that guarantee a specified return on contributions should be assimilated to defined benefit plans, as the employer is not responsible for the contribution payments but has to cover the investment risk until the legal minimum rates applicable. The returns guaranteed by the insurance companies are in most cases lower than or equal to the minimum return guaranteed by law. As a result, the Group has not fully hedged its return risk through an insurance contract and a provision needs to be accounted for. The plans at EVS are financed through group insurance contracts. The contracts are benefiting from a contractual interest rate granted by the insurance company. When there is underfunding, this will be covered by the financing fund and in case this is insufficient, additional employer contributions will be requested. This analysis is done annually and recognized in the profit and loss account, if necessary. More information can be found in the note 6.4 of the 2019 annual report. NOTE 5.14: BUSINESS COMBINATION – ACQUISITION OF AXON In a transaction closed on 30 April 2020, the Company acquired 100% of the shares of Axon Investments B.V. (“Axon”). With development centers in the Netherlands and the UK, and more than 80 team members, Axon has an international presence in the live broadcast infrastructure market, including mobile trucks and data centers, and a product portfolio that complements EVS’s existing live production offering. This transaction qualifies as a business combination in accordance with IFRS 3 and is thus accounted for by applying the acquisition method. The consideration transferred by the Company to acquire Axon includes: - A cash amount of EUR 12.2 million of which EUR 11.6 million paid at closing date and EUR 0.6 million paid at the end of September for the final working capital adjustment. - A contingent consideration ranging between EUR -0,5 million (reverse earn-out to be paid back by the sellers) and maximum EUR 2,5 million (earn-out to be paid by the Company) depending on the gross margin realized by Axon over the period 1 January 2020 to 31 January 2021. The fair value of the contingent consideration amounts to EUR 1,0 million at acquisition date and has not changed at the reporting date. The fair value categorized as level 3 has been estimated on the basis of a model in which the possible outcomes are probability weighted. The unobservable input to which this fair value measurement is most sensitive is the estimated amount of Axon’s gross margin over the reference period. Depending on the actual level of Axon’s gross margin, the Company is exposed to a future income statement impact ranging between a loss of EUR 1.5 million (in case the maximum earn-out is reached) and a gain of EUR 1.5 million (in case of reverse earn-out). The amounts recognized with respect to identifiable assets acquired and liabilities assumed, as well as the consideration transferred and the resulting provisional amount of goodwill and net cash flow effect at acquisition date are as set in the table below: (EUR thousands) Intangible asset – Technology2,489Intangible asset – Customer- related5,120Deferred tax assets1,316Other non-current assets341Accounts receivable2,133Inventories2,302Cash and cash equivalents1,956Other current assets46Total assets15,703Deferred tax liabilities-1,585Accounts payable-3,478Other liabilities-242Total liabilities-5,305Net assets acquired10,398Consideration paid in cash12,211Final working capital adjustment-Fair value of contingent consideration (earn-out)1,019Total consideration13,230Goodwill2,832Cash outflow net of cash and cash equivalents10,255 The goodwill amounting to EUR 2,8 million consists of expected market synergies from the combination of Axon and EVS as well as the skilled workforce of Axon, which both do not qualify for separate recognition as intangible assets. Goodwill is not expected to be deductible for tax purposes. The fair value of accounts receivable as reported in the table above corresponds to the gross contractual amounts receivable considering that the sellers are obliged to indemnify the Company for any amount receivable that is not fully collected within 180 days after the acquisition date. Since the acquisition date on 30 April 2020 Axon contributed EUR 7,9 million to revenue and EUR -1,6 million to net profit in the consolidated income statement for the 8 month-period ended 31 December 2020. If the acquisition of Axon had been completed on 1 January 2020, the consolidated Group’s revenue and net profit for the 12 month-period ended 31 December 2020 would have been EUR 94,9 million and EUR 7,8 million respectively. The acquisition-related costs amounting to EUR 0,3 million have been immediately expensed as incurred and are presented under the caption “Selling and administrative expenses” in the income statement. NOTE 5.15 SUBSEQUENT EVENTSThere were no other subsequent events that may have a material impact on the balance sheet or income statement of EVS. NOTE 5.16: RISK AND UNCERTAINTIESInvesting in the stock of EVS involves risks and uncertainties. The risks and uncertainties relating to the remainder of the year -2021 are similar to the risks and uncertainties that have been identified by the management of the company and that are listed in the management report of the annual report (available at www.evs.com). Certification of responsible persons Serge Van Herck, representing a BV, CEOYvan Absil, representing a SRL, CFO Certify that, based on their knowledge, the condensed financial statements, prepared in accordance with the International Financial Reporting Standards (IFRS) adopted by the European Union, fairly present in all material respects the financial condition and results of operations of the issuer and the companies included in the consolidation,the Directors’ report fairly presents the important events and related parties transactions of 2020 including their impact on the condensed financial statements, and a description of the existing risks and uncertainties for the remaining months of the fiscal year. Attachment Press release in PDF format

  • Globe Newswire

    EVS Broadcast Equipment - publication of a transparency notification

    Publication on November 18, 2020, after market closingRegulated information – transparency notificationEVS Broadcast Equipment S.A.: Euronext Brussels (EVS.BR), Bloomberg (EVS BB), Reuters (EVSB.BR) Publication of a transparency notification (Article 14, first paragraph, of the Law of 2 May 2007 on disclosure of major holdings) On November 13, 2020, EVS Broadcast Equipment has received a transparency notification indicating that Schroders Plc now holds 3.00% of the voting rights of the company. Schroders Plc has therefore crossed up the threshold of 3%. The notification, dated November 13, 2020, contains the following information: Reason for the notification: acquisition or disposal of voting securities or voting rights                                            upward crossing of the lowest thresholdNotification by: A parent undertaking or a controlling personPersons subject to the notification requirement: Schroders plc, 1 London Wall Place, London EC2Y 5AU, UK Transaction date: November 12, 2020Threshold that is crossed (in %): 3%Denominator: 14,327,024 Notified details: A) Voting rightsPrevious notificationAfter the transaction # voting rights# voting rights% voting rightsHolders of voting rights Linked to securitiesNot linked to the securitiesLinked to securitiesNot linked to the securitiesSchroders Plc00 0.00% Schroder Investment Management Limited425,847430,456 3.00%  TOTAL430,45603.00%0.00%   B) Equivalent financial instrumentsAfter the transactionHolders of equivalent financial instrumentsType of financialInstrumentsExpirationdateExercise period or date# of voting rights that may be acquired if the instrument is exercised% of voting rightsSettlement        TOTAL        TOTAL (A & B) # voting rights% of voting rights TOTAL (A & B)430,4563.00% Full chain of controlled undertakings through which the holding is effectively held:Schroders plc is not a controlled entity, it is the parent company of Schroder Administration Limited, which itself is the parent companyof Schroder International Holdings Limited; which itself is the parent company of Schroder Investment Management Limited; which is a discretionary fund manager holding shares on behalf of our clients and can exercise the voting rights for all shares mentioned inSection10 This press release and the notification are available on the EVS website (www.evs.com). Shareholders must declare their ownership in EVS shares as soon as their shareholding passes over/under the 3% threshold (required by Company Statutes) and any multiple of 5% thresholds (required by Belgian Law). Notifications of important shareholdings to be made according to the Law of May 2, 2007 and the EVS's bylaws, should be sent to the company (by email corpcom@evs.com or fax +32 4 361 7089) and to the FSMA. The current number of shares (denominator) to be taken into account is 14,327,024 shares.   ABOUT EVSWe create return on emotion.EVS is globally recognized as a leader in live video technology for broadcast and new media productions. Our passion and purpose are to help our clients craft immersive stories that trigger the best return on emotion. Through a wide range of products and solutions, we deliver the most gripping live sports images, buzzing entertainment shows and breaking news content to billions of viewers every day – and in real-time. The company is headquartered in Belgium with offices in Europe, the Middle East, Asia and North America, and provides sales and technical support to more than 100 countries. EVS is a public company traded on Euronext Brussels: EVS, ISIN: BE0003820371.For more information, please visit www.evs.com. For more information, please contact:   Yvan ABSIL, CFOEVS Broadcast Equipment S.A., Liege Science Park, 13 rue du Bois Saint-Jean, B-4102 Seraing, BelgiumTel: +32 4 361 70 00.  E-mail: corpcom@evs.com; www.evs.com  Forward Looking Statements This press release contains forward-looking statements with respect to the business, financial condition, and results of operations of EVS and its affiliates. These statements are based on the current expectations or beliefs of EVS' management are subject to a number of risks and uncertainties that could cause actual results or performance of the Company to differ materially from those contemplated in such forward-looking statements. These risks and uncertainties relate to changes in technology and market requirements, the company's concentration on one industry, decline in demand for the company's products and those of its affiliates, inability to timely develop and introduce new technologies, products and applications, and loss of market share and pressure on pricing resulting from competition which could cause the actual results or performance of the company to differ materially from those contemplated in such forward-looking statements. EVS undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.     Attachment Press release in PDF format

  • Globe Newswire

    EVS Broadcast Equipment - EVS Q3 2020 Business update

    Publication on November 12, 2020, before market openingRegulated information EVS Broadcast Equipment S.A.: Euronext Brussels (EVS.BR), Bloomberg (EVS BB), Reuters (EVSB.BR) EVS Q3 2020 Business update EVS global leader in live video technology for broadcast and new media productions todayannounces its business update for the third quarter ending 30 September 2020. HIGHLIGHTS o   Covid-19 crisis continue to impact significantly Live Service Providers, one of the three main revenue pillars while LAB customers continue the modernization of their broadcast centers.o   Accelerated traction for remote production workflows allowing EVS to promote several new workflow solutionso   Order book* for 2020 revenues as of October 31st ** of EUR 41.0 million, vs. EUR 44.3 million at the same date last year. (-7% vs same period last year)o   Order intake* YTD until end October 2020: -8.5% vs same period last yearo   Confirmation of the Opex guidance, expected to increase slightly YoY following integration of Axon (excluding extraordinary costs) but with a marked decrease when considering only former EVS perimeter. * excluding big events rentals and including Axon as of May 1st** including 2H2020 already recognized Revenues and open orders on hand that will be recognized as revenues in 2020 COMMENTS Serge Van Herck, CEO comments the business development: “We continue to see the impact of the pandemic on our customers. With less events to produce for Live Service providers, these have seen their revenues and cash inflows dropping, which resulted in recapitalization needs for some of them and delayed or cancelled investments.Adoption of remote production workflows is accelerating. Thanks to the flexible and “cloud-ready” solution portfolio recently strengthened with LSM-VIA, EVS efficiently supports its customers to face their challenges. We continue to see LAB customers investing in the modernization of their broadcast centers.”. On the COVID-19 developments, Serge Van Herck added: “We expect this pandemic will not be over soon and will continue to impact EVS in the first part of 2021. In anticipation of this, we are looking to further adjust our cost structure”. Commenting on the results and the outlook, Yvan Absil, CFO, said: “Our orderbook (without big events) as of October 31st amounts to EUR 41.0 million. There is also an additional EUR 17.1 million of orders (excl big events rentals) to be recognized as revenues in 2021 and beyond; this represent an increase of 10 % vs the same period last year. On the costs side, thanks to marked decrease in the former EVS perimeter (reductions in consulting, travel, marketing expenses and bonus) and despite the integration of Axon since May 1st, costs will only slightly increase YoY. Finally, our cash position remains really strong with a total cash available of EUR 52.5 million at the end of September”. On the Share Buy Back program, Yvan Absil, added: “We have now completed the EUR 5 million share buyback program announced in May 2020”. EVS Market Dynamics and customer wins Our 3 market pillars of revenues (Live Service Providers – LSP, Live Audience Business – LAB and Big Event Rental – BER) are significantly impacted by the pandemic. The major summer sport events have been postponed to 2021, which should postpone related EVS revenues from 2020 to 2021. EVS had announced earlier this year that its order backlog as of Dec 31st, 2019 included EUR 12.3 million of Big Event Rental orders to be recognized in 2020. It has to be noted that these events are postponed and not cancelled.Product developments that have already been performed are expected to be reused and planned revenues will in principle shift from 2020 to 2021. Due to the cancellation and postponement of various live events earlier this year (sport, concerts, entertainment shows), various LSP customers have heavily reduced their purchasing activity as their priority was to keep their staff ready for the restart period. Their spending for buying new equipment still is in many cases postponed to a later date At the same time, these customers accelerate the adoption of remote production to lower their production costs and ensure respect of governmental guidelines. LSM-VIA has been “field-proven” during the summer in some of these remote workflows. Some of our LAB customers are suffering as well. Many stadiums, universities and colleges are currently not allowed to organize any live event in their premises. On the positive side, many news related broadcast centers see their news audience peak at this moment in time which translates in continued ordering of certain of our solutions.Traction for remote production workflows has significantly increased, with EVS offering several options to ease the work of operational teams working from a distance and from home. Until end October, the yearly order intake declined 8.5% versus the same period last year (excl. big event rentals and including Axon as of May 1st 2020). Some key activities: Virtual IBC has been organized with hundreds of customers from everywhere in the world attending different remote demos for rich and personalized interactionsLive Production Anywhere webshow, organized in partnership with our customers, focusing on Remote Live Production, organized with active participation of many EVS departments to show usage of EVS solutions and the dedication of EVS for its customers.Continuous remote interactions with customers to assist them in the design of their new solutions. Some key wins: Large 4K upgrade and extension with a major player in ChinaContinuous traction for VIA platform and Media Infrastructure for modernization of broadcast centers, notably in eSportsAfter NALA & APAC, Europe sees increasing adoption of our IP enabling XT-VIA server solutions Status of AXON integration With the addition of Axon products to the EVS portfolio, EVS is offering a broad and comprehensive modern IP based media infrastructure solution. Teams from both companies are progressing well on the integration, which is on track, on time and within budget. Some key milestones have already been achieved: Lead to cash process synchronized, enabling EVS sales force to start selling new Media Infrastructure solutionsJoint value propositions presented to our customersTeams in NALA strengthened and prepared to deliver, integrate and deploy Media Infrastructure solutions everywhereVast majority of team integration within a single organization is completedIntegration of ERPs being effectively planned, and some other tools already integrated We also start to see the first synergies: Revenue synergies: Some first deals have been signed that would have never happened in an “Axon stand-alone” scenario, in all regions of the worldWithin global offerings including former EVS products, some integrators are swapping infrastructure from other vendors by new EVS Media Infrastructure components to ensure a consistent and more solid proposal Cost synergies: Some headcount replacements have been cancelled; the function being now covered by former Axon colleagues.Some costs have decreased for purchasing of BOM elements thanks to larger volumes reached when combining demand from the 2 previously separated entities  Outlook The order book (to be recognized in 2020 on top of the 1H 2020 revenues already disclosed) on October 31, 2020 amounts to EUR 41.0 million compared to EUR 44.3 million last year (at the same date) excluding big event rentals and including Axon order intake as of May 1st 2020. In addition to this order book to be recognized in 2020, EVS already has EUR 17.1 million of orders to be invoiced in 2021 and beyond (excl. big event rentals) (+ 10.0 % vs the same period last year). Based on the current market outlook and given the uncertainties around covid-19 impacts, EVS does not give any revenue guidance for the year 2020. Operational expenses (excluding Axon) are expected to see a marked decrease compared to 2019. Corporate Calendar: February 25, 2021: 2H2020 and FY 2020 results For more information, please contact:   Yvan ABSIL, CFO*EVS Broadcast Equipment S.A., Liege Science Park, 13 rue du Bois Saint-Jean, B-4102 Seraing, BelgiumTel: +32 4 361 70 00.  E-mail:corpcom@evs.com; www.evs.com*representing a srl  Forward Looking Statements This press release contains forward-looking statements with respect to the business, financial condition, and results of operations of EVS and its affiliates. These statements are based on the current expectations or beliefs of EVS's management and are subject to a number of risks and uncertainties that could cause actual results or performance of the Company to differ materially from those contemplated in such forward-looking statements. These risks and uncertainties relate to changes in technology and market requirements, the company’s concentration on one industry, decline in demand for the company’s products and those of its affiliates, inability to timely develop and introduce new technologies, products and applications, and loss of market share and pressure on pricing resulting from competition which could cause the actual results or performance of the company to differ materially from those contemplated in such forward-looking statements. EVS undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.  About EVS We create return on emotion.   EVS is globally recognized as a leader in live video technology for broadcast and new media productions. Our passion and purpose are to help our clients craft immersive stories that trigger the best return on emotion. Through a wide range of products and solutions, we deliver the most gripping live sports images, buzzing entertainment shows and breaking news content to billions of viewers every day – and in real-time.The company is headquartered in Belgium with offices in Europe, the Middle East, Asia and North America, and provides sales and technical support to more than 100 countries. EVS is a public company traded on Euronext Brussels: EVS, ISIN: BE0003820371. For more information, please visit www.evs.com.   Attachment Press release in PDF format