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(15/03/2006) EVS BROADCAST EQUIPMENT : EVS Broadcast - 4Q05 and 2005 Financials - Record 2005 and sportive 2006 !
PRESS RELEASE - Before market opening
Liège (Belgium), 23 February 2006, EVS Broadcast Equipment S.A. (ISIN BE0003820371, Bloomberg EVS BB, Reuters EVSB.BR), leader in Professional Digital Video applications for Live TV Production and Digital Cinema, reported today its fourth quarter and full year 2005 financial results and provided a business update:
Highlights:
- EVS DELIVERS RECORD ANNUAL PERFORMANCE
- Q4 '05 SALES OF 16.8 MILLION ?, A 87% PROFORMA INCREASE
- 2005 SALES OF 53.8 MILLION ?, A 15% PROFORMA INCREASE
- 2005 NET RESULT GROUP SHARE OF 20.0 MILLION ? (EPS 1.46), UP 17%
- STRONG EUROPEAN SALES, DRIVEN BY EARLY HDTV AND STUDIOS
- XDC: 210 DIGITAL SCREENS DEPLOYED ACCROSS EUROPE SO FAR
- STRONG 26.6 MILLION ? ORDER INTAKE, TRIPLE OF 9.2 MILLION ? IN 2005
- EXPECTED 2006 GROWTH FOR BOTH SALES AND RESULTS
Better than the expected transition year
"While we expected a smooth transition year following an excellent 2004, the strong orders we have took after the release of our new XT[2] platform last summer, transformed 2005 into a record year in our company's history with revenues eventually tapping 53.8 million EUR, or exceeding 2004 by 15%", said Pierre L'Hoest, EVS Broadcast Equipment CEO.
"XDC is today clearly positionned as the leader of Digital Cinema Services in Europe with the largest installed base of digital screens so far: 200 and we closed 2005 with nearly 2 million EUR sales, up 111%", said Laurent Minguet, CEO of XDC.
Group Revenues
Following a strong third quarter, the fourth quarter yielded 16.8 million EUR sales, ie. up 87% compared to 2004. EVS revenues for the year 2005 amounted to 53.8 million EUR and showed a strong seasonal pattern, with a weak first half and a much stronger second half as evidenced by record Q3'05 and strong Q4'05 sales of 37.6 million EUR partly offsetting the first half weakness. During the twelve months, sales were 8% higher than 2004, but by 15% on a proforma basis as reported sales of 2004 included Netia revenues. However, Netia was sold and deconsolidated as of July 1, 2004.
+--------------------------------+-----------------------+-----+--------------+---------------------+-------------+---------+---------------+
| Revenues ? in million EUR |4Q04 Proforma ex-Netia |4Q05 |% 4Q05 / 4Q04P|FY04 Reported (1) (2)|FY04 Proforma|FY05 (2) |% FY05 / FY04P |
+--------------------------------+-----------------------+-----+--------------+---------------------+-------------+---------+---------------+
| | | | | | | | |
+--------------------------------+-----------------------+-----+--------------+---------------------+-------------+---------+---------------+
|Total reported | 9,0 |16,8 | +87% | 49,9 | 46,9 | 53,8 | +15% |
+--------------------------------+-----------------------+-----+--------------+---------------------+-------------+---------+---------------+
|Total at constant exchange rate | 9,0 |16,8 | +87% | 49,9 | 46,9 | 53,8 | +15% |
+--------------------------------+-----------------------+-----+--------------+---------------------+-------------+---------+---------------+
|By segment: | | | | | | | |
+--------------------------------+-----------------------+-----+--------------+---------------------+-------------+---------+---------------+
|TV systems (Broadcast) | 8,8 |16,4 | +86% | 46,0 | 46,0 | 51,9 | +13% |
+--------------------------------+-----------------------+-----+--------------+---------------------+-------------+---------+---------------+
|Digital Cinema (XDC) | 0,2 | 0,4 | +100% | 0,9 | 0,9 | 1,9 | +111% |
+--------------------------------+-----------------------+-----+--------------+---------------------+-------------+---------+---------------+
|Netia (Radio Solutions) (1) | - | - | | 3,0 | - | - | |
+--------------------------------+-----------------------+-----+--------------+---------------------+-------------+---------+---------------+
|Total | 9,0 |16,8 | +87% | 49,9 | 46,9 | 53,8 | +15% |
+--------------------------------+-----------------------+-----+--------------+---------------------+-------------+---------+---------------+
(1) NETIA S.A. is a leader in Generalist Radio Stations Automation Software and has been sold thus deconsolidated as from July 1, 2004.
(2) Audited
Broadcast
"In a buoyant sport TV rights market, 2005 has seen the High-Definition TeleVision ("HDTV") kick-off for TV production in Europe, while the USA slowed down the equipment cycle after the significant first investment wave in 2004. Our sales teams have also successfully embraced the first promotion of our new products for studio productions worldwide, with near-live studio production related sales representing already 30% of our TV sales" , said Pierre L'Hoest, EVS' CEO for Broadcast Products.
EVS Broadcast sales increased 13% to reach 51.9 million EUR. Customers welcomed the new powerful and HD Ready XT[2] (R) platform running dedicated applications, which fit the needs of both outside broadcast customers and a growing number of studio production partners. This strong performance has been driven by the European (EMEA) market which achieved a +67% growth compared to 2004. This growth is equally explained by large projects in near-live Standard Definition ("SD") studio production, by first investments in HD outside broadcast production and by the large 2006 events (Winter Olympics, Commonwealth Games and soccer World Cup), for which international broadcasters are teaming up with European production companies. This achievement has been partly offset by weaker sales (-27% to 14.4 million EUR) in the USA, which prepares the next HDTV investment cycle for mobile production for the TV season 2006-2007 and which gained first solid references in the studio production segment. The Asia-Pacific region was also 14% lower, but this slow down is expected preceding a jump.
Since its launch in 1994, EVS has deployed more than 2.300 systems around the world with broadcasters, in outside production trucks, with rental companies, in TV studios, in stadia and in performance theatres. The installed base has grown by 20% over 2005 and HD does still only represent 20% of the installed base, which calls for further growth potential, considering also that 50% of the sales do still refer to SD solutions. Overall, for one upgraded system - as may be the case with the launch of the XT[2] platform, EVS increases its installed base by 4 new units, which illustrates the market demand for integrated tape-less workflow solutions, which combine several EVS modules. More than 4.000 qualified operators or free-lancers from all over the world have been trained so far in a critical live production environment with EVS' reliable applications.
EVS gains market shares in the Studio production environment which represent 30% of its total revenues, compared to 20% in 2004 and around 10% in 2002 already. During 2005, most of EVS' foreign offices have nearly doubled their size to create training facilities in order to demonstrate the latest tape-less solutions and to welcome experienced staff to help the company succeed in the next step in near-live studio production.
XDC - Digital Cinema
"On the digital cinema front, XDC - which is 60% affiliate of parent company EVS - has rolled out more than 200 digital screens across Europe, on which more than 650 digital film copies have been delivered and played for not only major US studios, but also for national European movie distributors", said Laurent Minguet, XDC CEO. "Despite heavy upfront infrastructure investments in equipment, XDC appears to be the leader in the delivery of digital cinema content in Europe".
XDC sales reached 1,9 million EUR over the period; 40% of these revenues were attributed to a large sale made to a large exhibitor. XDC France has been launched with ambitions to deploy 300 digital screens in France over the next 3 years. XDC equipment and teams are much appreciated by the industry for their reliability, availability and commitment. While XDC focuses on multicultural and fragmented Europe, large projects are being announced in the USA by peer companies, indicating the launch of Digital Cinema and the deployment of a growing number of international digital movie releases.
XDC not only provides servers to the exhibitors, but in some cases, leases or sells the projector as part of their global service agreement for a low monthly fee. Additionally, XDC can provide a packaged service of encoding, encryption, logistics, and quality assurance of digital movies to distributors for a "film-like" rate card, representing a cost saving of 30-50% over existing 35mm film. This cost saving represents a global annual saving of 1 billion USD.
Operations, margins and result
Consolidated gross profit margin reaches 81% for 2005, in line with 2004 proforma. Broadcast sales are mainly derived from software based solutions, explaining the broadcast gross margin of 86%, up 3pct. It is partly offset by the negative XDC gross margin which evidences the investment in operations teams and infrastructure deployment. Selling & Administrative expenses amount 10.0 million EUR, up 16% compared to 2004 proforma as the group invests in foreign sales offices and digital cinema deployment. Research and Development expenses are 5.5 million EUR, in line with 2004 proforma. The group's staffing at 31 December 2005 was 170 (including 132 for Broadcast and 38 for XDC), up 19% versus 31 December 2004. More than 25 engineers and high skilled staff have been recruited over the period to reinforce the company's leadership in its niche markets and to prepare for the future.
The reported EBIT group share 2005 reaches 29.8 million EUR, which represents a group EBIT margin of 55% of revenues compared to 49% in 2004. EVS Broadcast contribution to the 2005 EBIT reached 32 million EUR or 62% while the group invested around 3.6 million EUR (or 2.2 million EUR on group share basis) in the Digital Cinema development. Net profit from Operations (or Net Current Profit) amounts 20.0 million EUR for 2005, up +17% compared to 2004. The tax position of the group has changed since the tax losses of Digital Cinema are no longer offset against the Broadcast profit within the same legal Belgian entity, but located in the 60% affiliate XDC S.A. since the XDC spin-out in late 2004. For consolidation purposes, no Deferred Tax Assets have yet been booked for those XDC losses. Would it have been the case, Net Current Profit 2005 would have been +21% compared to 2004. Reportedly, Net Profit 2005 is in line with 2004 but the 2004 Net Profit included the net realised profit of 1.9 million EUR from the NETIA disposal and the dilution profit of 3.0 million EUR from the XDC spin-out.
The net current cash-flow from operations reaches 21.5 million EUR over the period. Executing on its business plan, XDC entered into leasing arrangements with banks to finance some third party projectors DLP 2K(R) for a global value of 5.8 million EUR. "The group has optimized return to shareholders with 16.6 million EUR pay-back : 1.0 EUR per share dividend last June representing 13.9 million EUR and 2.7 million EUR invested in the share buy-back program", said Jacques Galloy, CFO of EVS Group. EVS Group has a gross cash position of 26.2 million EUR at year-end and 356.655 treasury shares which are offset from the net equity according to IFRS principles. The group financials debts represent 8.6 million EUR, out of which 5.7 million EUR refer to XDC projectors leases. The group has open Government Repayable Conditional Loans for 3.1 million EUR, out of which 2.2 million EUR refer to XDC R&D.
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
|Profit & Loss Key Consolidated figures ? IFRS in million Euros |4Q04 Proforma Ex-Netia| 4Q05 |4Q05 / 4Q04 Prof |FY04 Reported (2)|FY04 Proforma Ex-Netia| FY05 (2) |FY05 / FY04 Prof |
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
| | | | | | | | |
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
|Revenue | 9,0 | 16,8 | +87% | 49,9 | 46,9 | 53,8 | +15% |
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
|Gross Profit % | 73% | 84% | +11pct | 79% | 81% | 81% | - |
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
|EBITDA | 3,1 | 11,0 | +254% | 26,0 | 26,0 | 30,6 | +17% |
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
|Operating result ? EBIT | 2,6 | 10,1 | +291% | 24,2 | 24,3 | 28,4 | +17% |
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
|EBIT - TV segment | 3,2 | 10,8 | +238% | 26,5 | 26,5 | 32,0 | +21% |
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
|EBIT - DC segment | -0,6 | -0,7 | -15% | -2,3 | -2,2 | -3,6 | -64% |
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
|Operating result ? EBIT gr.share (1) | 2,8 | 10,4 | +266% | 24,5 | 24 ,5 | 29,8 | +22% |
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
|EBIT group share margin % | 32% | 62% | +30pct | 49% | 52% | 55% | +3pct |
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
|Profit before taxes and exceptionals | 2,7 | 10,2 | +277% | 24,1 | 24,3 | 29,1 | +20% |
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
|Exceptional and Capital Gains | 2,6 | - | - | 4,6 | 2,6 | - | - |
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
|Income taxes | -0,5 | -3,5 | +630% | -7,5 | -7,5 | -10,4 | +40% |
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
|Net profit ? Group share | 5,2 | 7,1 | +36% | 21,5 | 19,7 | 20,0 | +1% |
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
|Net current profit ? Group share (1) | 2,6 | 6,8 | +164% | 16,7 | 17,1 | 20,0 | +17% |
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
|Net profit margin | 29% | 41% | +12pct | 33% | 37% | 37% | - |
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
| | | | | | | | |
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
|Per share in Euro | | | | | | | |
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
|Weighted average common shares outstanding - basic | 13.699.097|13.727.568| +0.2| 13.665.062| 13.699.097 |13.699.097 | +0.4|
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
|Basic net current profit per share | 0,19 | 0,50 | +163% | 1,22 | 1,25 | 1,46 | +17% |
+---------------------------------------------------------------+----------------------+----------+-----------------+-----------------+----------------------+-----------+-----------------+
(1) EVS spun-out its Digital Cinema business into XDC S.A. on 1 October 2004 and diluted to 60% in favour of Private Equity Investors. XDC S.A. is fully consolidated in EVS Group accounts but group share excludes XDC's minority shareholders, thus only reflecting EVS' 60% interest in XDC as from October 2004.
(2) audited
Strategic Plan
EVS' "Speed to Air" strategy is about delivering a complete workflow solution for Live Broadcast Production from outside broadcasts to fixed studios within TV stations, making their production smoother, quicker, more reliable and allowing them to be able to offer the best live images to their audience. Products like the HD LSM XT[2] (R) are the back-bone of many productions and the SD/HD SpotBox XT[2] (R) is the complementary flexible ingest server for many large studio switchers. The broadcast industry is converting from analog to digital and there are still new markets to explore and develop. The re-shaping of current heavy tape-based operations and the HDTV replacement market are new long term objectives for EVS' business and will allow for higher penetration of servers in TV production areas.
The launch of the IP Director (R) suite paves new ways for the company. IP Director (R) allows the real-time management of dozens of XT[2] (R) servers - thus even more camera feeds - connected via high-bandwidth networks. All the media from this centralized storage network and hundreds of logged video clips associated with metadata are instantly accessible by multiple international networks, in addition to edit suites, graphics stations, 3G applications, and outdoor stadium screens. Both the XT[2] (R) platform and the IP Director (R) products are and shall be at the heart of all the major 2006 sporting events, transforming the way such events are being produced for hundreds of millions of viewers worldwide. EVS R&D teams are developping additional functionalities to the IP Director (R) suite so it will further meet the needs of near-live studio production.
EVS' broadcast double growth strategy: first, to benefit from its leadership in Mobile TV Production and the transition of all production trucks to HDTV over the next 6-10 years; Second, develop the Near-Live Studio Editing market, for which the XT[2] (R) platform combined with the IP Director (R) suite is to become the core engine. Servicing and advising customers as well as training hundreds of highly-skilled operators remain the key EVS priorities for coming quarters. HDTV will impact the business over a long period of time and shall follow usual equipment acquisition wave patterns.
XDC, the EVS 60% subsidiary, is leading the deployment of high-end digital cinema screens accross Europe. Its growing team of 38 staff makes it the largest European integrated Digital Cinema Service company. Following the successful deployment and servicing of 200 screens as of today, the next quarters' challenges will be the further investment in the deployment of the digital screens network, the delivery of many more digital movies on the growing network and also the development of the hybrid MPEG2-JPEG2000 DCI Compliant solution. Confirming their long-term commitment for the current business plan, existing shareholders of XDC have subscribed to additional 3 million EUR capital last February 14, 2006.
Outlook 2006
The global order intake (ie. orders to be invoiced over 2006) up to now is 26.6 million EUR ahead of major sport events during the first half, compared to 9.2 at the same date one year ago, that is +189%, but first half 2005 was expected to be weak. The open order book as of 1 January 2006 amounted to 16.9 million EUR (incl. 1.0 million for XDC) and orders for 9.7 million EUR (incl 0.2 million EUR for XDC) have been received between 1 January 2006 until yesterday, 22 February 2006. While EVS usually sells solutions, EVS shall realise more than 5 million EUR of rental revenues derived from large events in 2006.
Based on current analysis, market conditions and medium to long term products requirements from existing customers, the Board of Directors expects both revenues and results to grow in 2006 with a strong first half-year, driven by large sport events. EVS is well-positioned in its key markets to pursue its organic growth. In 2005, the company expanded sales, marketing and customer support operations around the world in order to work locally with the existing customers and to train operators, but also to leverage new market opportunities, especially in the field of near-live studio production. Depending on the overall economic climate, geo-political risks and the USD currency evolution, the Board is confident in the long term growth of the company while orders visibility remains as usual rather limited due to short delivery periods and usual industry purchase cycles.
Last but not least, and as it did since the 1998's IPO, the Board has decided to optimize cash return to shareholders through dividend distribution and/or treasury shares repurchase program. The Board shall propose a dividend amount with the Ordinary General Meeting of Shareholders invitation to be issued mid-April 2006.
Analyst & Press meeting and Conference Call
EVS will hold today a press conference in Liège at 9:30 AM CET, followed by an analyst meeting in Liège at 11:00 CET, with Pierre L'Hoest, CEO EVS Broadcast and Jacques Galloy, Group CFO. A conference call in English will be held at 4:15 PM (CET) to offer another opportunity to discuss the results and recent developments. Please contact corpcom@evs.tv to receive the dial-in number and the presentation.
Corporate Calendar:
Thursday 11 May 2006 : 1Q06 sales & earnings
Tuesday 16 May 2006: Annual General Meeting of Shareholders
Thursday 7 September 2006 : 2Q06 sales & earnings
Thursday 9 November 2006 : 3Q06 sales & earnings
For more information, please contact:
Jacques GALLOY,
Director & CFO
EVS Broadcast Equipment
Tel : +32 4 361 7014
Fax : +32 4 361 7089
Liege Science Park
16 rue du Bois Saint Jean
B-4102 Liège-Ougree, Belgium
www.evs-global.com
e-mail : corpcom@evs.tv
Accountant Ernst & Young statement
The Statutory Auditor confirmed that his controls which are substantially finished did not reveal significant correction that should be brought to accounting information mentioned in the press release.
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 Group
EVS Group designs, develops and markets professional digital equipment for Television (EVS Broadcast) and Cinema (XDC). The Group employs over 170 persons in 9 countries and sells its products to professionals of the video and audio sectors in more than 70 countries. EVS is a public company traded on Euronext Brussels: EVS, ISIN: BE0003820371. For more information, refer to www.evs-global.com.
EVS Broadcast is the world leader for Live TV Production Digital Disk Recorders and Related Software Applications, especially in the field of sports. The company's dedicated hardware and software suite offer a complete production platform: live slow motion (LSM), high speed slow motion, replay only, clips generation, quick clips editing, real-time SD/HD video files transfer, time delay, multi-camera recording, metadata association, graphics storage and play-out, digital transmission, multi-format ingest and play-back, audio record & edit. Main software applications are running on the dedicated robust and flexible hardware the "XT[2] Platform". The world's leading broadcasters, such as NBC, BSkyB, FOX, RTL, NHK, CANAL+, ABC, ESPN, TF1, CCTV, PBS, CBS, BBC, ZDF and many others use EVS' solutions.
XDC is pioneering Digital Cinema Logistics and Play-out and operates between the movies distributors and exhibitors. XDC has installed more than 200 digital screens in the world, in China, Sweden, Brazil, USA, Italy, Belgium etc.
ANNEX 1 : EVS GROUP - IFRS CONSOLIDATED INCOME STATEMENT
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
| |Proforma Ex-Netia Unaudited |Unaudited |Reported incl Netia Audited|Proforma Ex-Netia Unaudited | Audited |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|(In thousands Euros) | 4Q04 | 4Q05 | 2004 (1) | 2004 (1) | 2005 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
| | | | | | |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Revenue | 8.978 | 16.780 | 49.899 | 46.886 | 53.796 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Costs of sales | -2.410 | -2.636 | -10.422 | -8.682 | -9.970 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
| | | | | | |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Gross Profit | 73% | 84% | 79% | 81% | 81% |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
| | | | | | |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Selling and administrative expenses | -2.517 | -2.408 | -9.355 | -8.634 | -9.983 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Research and development expenses | -1.473 | -1.575 | -6.090 | -5.401 | -5.494 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Other revenue | 57 | 88 | 312 | 208 | 530 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Other expenses | -54 | -153 | -123 | -102 | -477 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
| | | | | | |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|EBITDA | 3.148 | 11.033 | 26.028 | 26.000 | 30.630 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Operating Profit (EBIT) | 2.581 | 10.096 | 24.221 | 24.276 | 28.402 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Operating Profit (EBIT - group share) | 2.837 | 10.379 | 24.477 | 24.532 | 29.847 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Operating Margin (EBIT- group share margin %) | 32% | 62% | 49% | 52% | 55% |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
| | | | | | |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Net interests | 15 | 83 | -3 | 42 | 228 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Other net financial incomes/ (charges) | 116 | -5 | -73 | -69 | 310 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Non recurrent items | 2.624 | 0 | 4.555 | 2.624 | 0 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Capital gain on Netia Disposal | 0 | 0 | 1.931 | 0 | 0 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|XDC Spin-out dilution profit | 2.999 | 0 | 2.999 | 2.999 | 0 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Stock based compensation and ESOP plan | -375 | 0 | -375 | -375 | 0 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Share in the result of the enterp. accounted for using the equity method | 1 | 68 | 4 | 4 | 115 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
| | | | | | |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Profit before taxes (PBT) | 5.337 | 10.243 | 28.704 | 26.876 | 29.055 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
| | | | | | |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Income taxes | -475 | -3.468 | -7.521 | -7.475 | -10.443 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
| | | | | | |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Net profit for the year | 4.862 | 6.775 | 21.183 | 19.401 | 18.612 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Attributable to : | | | | | |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Minority interests | 341 | 281 | 341 | 341 | 1.402 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
| | | | | | |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Net profit ? share of the Group | 5.204 | 7.055 | 21.524 | 19.743 | 20.014 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
| | | | | | |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Net profit from operations ? share of the Group | 2.590 | 6.848 | 16.699| 17.129 | 20.014 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
| | | | | | |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|RESULT PER SHARE | 4Q04 | 4Q05 | 2004 (1) | 2004 (1) | 2005 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|(in number of shares and in Euros) | | | | | |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Weighted average number of subscribed shares for the period less treasury shares | 13.699.097 |13.727.568 | 13.665.062 | 13.665.062 |13.716.934 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Weighted average number of fully diluted number of shares | 13.855.298 |13.928.046 | 13.932.841 | 13.932.841 |13.939.819 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Basic earnings? share of the Group per share | 0,38 | 0,51 | 1,58 | 1,44 | 1,46 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Fully diluted earnings ? share of the Group per share | 0,38 | 0,51 | 1,54 | 1,42 | 1,44 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
|Basic net profit from operations ? share of the Group per share | 0,19 | 0,50 | 1,22 | 1,25 | 1,46 |
+---------------------------------------------------------------------------------+----------------------------+-----------+---------------------------+----------------------------+-----------+
(1) As from 1st July 2004, deconsolidating Netia S.A.
ANNEX 2 : EVS GROUP -IFRS CONSOLIDATED BALANCE SHEET - ASSETS
+--------------------------------------------------------------+-------------------+-------------------+
| ASSETS: |31/12/2004 Audited |31/12/2005 Audited |
+--------------------------------------------------------------+-------------------+-------------------+
|(In thousands Euros) | | |
+--------------------------------------------------------------+-------------------+-------------------+
| | | |
+--------------------------------------------------------------+-------------------+-------------------+
|Non-Current Assets : | | |
+--------------------------------------------------------------+-------------------+-------------------+
|Intangible assets | 28 | 584 |
+--------------------------------------------------------------+-------------------+-------------------+
|Lands and buildings | 5.323 | 5.499 |
+--------------------------------------------------------------+-------------------+-------------------+
|Other tangible assets | 1.355 | 8.063 |
+--------------------------------------------------------------+-------------------+-------------------+
|Investment accounted for using equity method | 177 | 282 |
+--------------------------------------------------------------+-------------------+-------------------+
|Other financial assets | 744 | 799 |
+--------------------------------------------------------------+-------------------+-------------------+
| | | |
+--------------------------------------------------------------+-------------------+-------------------+
|Total Non-Current Assets | 7.628 | 15.227 |
+--------------------------------------------------------------+-------------------+-------------------+
| | | |
+--------------------------------------------------------------+-------------------+-------------------+
|Current Assets : | | |
+--------------------------------------------------------------+-------------------+-------------------+
|Inventories | 4.929 | 6.012 |
+--------------------------------------------------------------+-------------------+-------------------+
|Trade receivables | 6.995 | 13.015 |
+--------------------------------------------------------------+-------------------+-------------------+
|XDC capital to be called up | 4.633 | 0 |
+--------------------------------------------------------------+-------------------+-------------------+
|Other amounts receivable, Deferred Charges and accrued Income | 1.259 | 1.529 |
+--------------------------------------------------------------+-------------------+-------------------+
|Short term investments | 147 | 0 |
+--------------------------------------------------------------+-------------------+-------------------+
|Cash and cash equivalents | 24.373 | 26.227 |
+--------------------------------------------------------------+-------------------+-------------------+
| | | |
+--------------------------------------------------------------+-------------------+-------------------+
|Total Current Assets | 42.337 | 46.783 |
+--------------------------------------------------------------+-------------------+-------------------+
| | | |
+--------------------------------------------------------------+-------------------+-------------------+
|Total Assets | 49.964 | 62.010 |
+--------------------------------------------------------------+-------------------+-------------------+
ANNEX 3 : EVS GROUP - IFRS CONSOLIDATED BALANCE SHEET - LIABILITIES
+-----------------------------------------------------------------------------+-------------------+-------------------+
| LIABILITIES: |31/12/2004 Audited |31/12/2005 Audited |
+-----------------------------------------------------------------------------+-------------------+-------------------+
|(In thousands Euros) | | |
+-----------------------------------------------------------------------------+-------------------+-------------------+
| | | |
+-----------------------------------------------------------------------------+-------------------+-------------------+
|Capital and reserves : | | |
+-----------------------------------------------------------------------------+-------------------+-------------------+
|Capital | 8.342 | 8.342 |
+-----------------------------------------------------------------------------+-------------------+-------------------+
|Consolidated reserves | 28.631 | 34.092 |
+-----------------------------------------------------------------------------+-------------------+-------------------+
|Translation differences | -289 | -36 |
+-----------------------------------------------------------------------------+-------------------+-------------------+
|Treasury shares | -2.723 | -4.220 |
+-----------------------------------------------------------------------------+-------------------+-------------------+
| | | |
+-----------------------------------------------------------------------------+-------------------+-------------------+
|Minority Interests | 3.615 | 2.213 |
+-----------------------------------------------------------------------------+-------------------+-------------------+
| | | |
+-----------------------------------------------------------------------------+-------------------+-------------------+
|Total Equity | 37.577 | 40.392 |
+-----------------------------------------------------------------------------+-------------------+-------------------+
| | | |
+-----------------------------------------------------------------------------+-------------------+-------------------+
|Long term provisions | 244 | 151 |
+-----------------------------------------------------------------------------+-------------------+-------------------+
|Deferred taxes | 0 | 252 |
+-----------------------------------------------------------------------------+-------------------+-------------------+
|Financial long term debts | 3.552 | 6.946 |
+-----------------------------------------------------------------------------+-------------------+-------------------+
|Government recoverable loans | 2.455 | 3.104 |
+-----------------------------------------------------------------------------+-------------------+-------------------+
|Non-Current Liabilities | 6.250 | 10.454 |
+-----------------------------------------------------------------------------+-------------------+-------------------+
| | | |
+-----------------------------------------------------------------------------+-------------------+-------------------+
|Short term portion of long term financial debts | 395 | 1670 |
+-----------------------------------------------------------------------------+-------------------+-------------------+
|Trade payable | 1.913 | 2.408 |
+-----------------------------------------------------------------------------+-------------------+-------------------+
|Amounts payable regarding remuneration and social security | 1.808 | 2.208 |
+-----------------------------------------------------------------------------+-------------------+-------------------+
|Income tax payable | 1.256 | 1.097 |
+-----------------------------------------------------------------------------+-------------------+-------------------+
|Other amount payable, advances received, accrued charges and deferred income | 765 | 3.782 |
+-----------------------------------------------------------------------------+-------------------+-------------------+
| | | |
+-----------------------------------------------------------------------------+-------------------+-------------------+
|Current Liabilities | 6.138 | 11.165 |
+-----------------------------------------------------------------------------+-------------------+-------------------+
| | | |
+-----------------------------------------------------------------------------+-------------------+-------------------+
|Total Liabilities | 49.964 | 62.010 |
+-----------------------------------------------------------------------------+-------------------+-------------------+
ANNEX 4 : EVS DETAILLED SEGMENT REPORTING
The EVS Group sales are divided up by business segments ("TV" for Television Production or Broadcast and "DC" for Digital Cinema) and by geographical segments (EMEA, NALA and APAC) as follows, taking into account that NETIA sales have been mainly realised in Europe over the first half of 2004 and that Digital Cinema activities have been spun-out and diluted in a separate legal/taxable entity in October 2004:
4.1. BUSINESS SEGMENTS 2005
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
| (In thousands Euros) |TV 2005 |DC 2005 (1) |Total of continued activites |Netia / discontinued activities (2) |TOTAL 2005 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Revenue | | | | | |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Sales to external customers | 51.946 | 1.850 | 53.796 | - | 53.796 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Gross Profit | 44.565 | -739 | 43.826 | - | 43.826 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Operating Profit (EBIT) | 32.030 | -3.628 | 28.402 | - | 28.402 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Operating Profit (EBIT - group share) | 32.030 | -2.183 | 29.847 | - | 29.847 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Operating Profit (EBIT - group share) - % | 62% | -118% | 55% | | 55% |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Financial Results | 564 | -26 | 538 | - | 538 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Share in the result of the enterp. accounted for using the equity method | 115 | - | 115 | - | 115 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Profit before taxes (PBT) | 32.708 | -3.653 | 29.055 | - | 29.055 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Income taxes |-10.436 | -7 | -10.443 | - | -10.443 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Net profit for the year | 22.273 | -3.661 | 18.612 | - | 18.612 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Minority interests | - | 1.402 | 1.402 | - | 1.402 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Net profit - share of the Group | 22.273 | -2.259 | 20.014 | - | 20.014 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Net current profit - share of the Group | 22.273 | -2.259 | 20.014 | - | 20.014 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
| | | | | | |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Assets and liabilities | | | | | |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Investment accounted for using equity method | 282 | - | 282 | - | 282 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Non-Current Assets | 8.192 | 7.035 | 15.227 | - | 15.227 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Cash and cash equivalents | 22.299 | 3.928 | 26.227 | - | 26.227 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Assets | 48.901 | 13.109 | 62.010 | - | 62.010 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Total Equity | 36.400 | 3.992 | 40.392 | - | 40.392 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Financial debts | 2.955 | 5.661 | 8.616 | - | 8.616 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Government recoverable loans | 881 | 2.223 | 3.104 | - | 3.104 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Liabilities | 48.901 | 13.109 | 62.010 | - | 62.010 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
| | | | | | |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Other segment information | | | | | |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Depreciation, provisions and write-offs | 1.408 | 820 | 2.228 | - | 2.228 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|EBITDA | 33.438 | -2.808 | 30.630 | - | 30.630 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Net acquisitions linked to operations | 1.677 | 7.256 | 8.933 | - | 8.933 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
(3) As from 1st October, consolidating only 60,17% of XDC S.A.
(4) NETIA S.A. has been deconsolidated as from July 1, 2004.
4.2. BUSINESS SEGMENTS 2004
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
| (In thousands Euros) |TV 2004 |DC 2004 (1) |Total of continued activites |Netia / discontinued activities (2) |TOTAL 2004 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Revenue | | | | | |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Sales to external customers | 46.002 | 884 | 46.886 | 3.013 | 49.899 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Gross Profit | 38.260 | -55 | 38.205 | 1.272 | 39.477 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Operating Profit (EBIT) | 26.500 | -2.224 | 24.276 | -55 | 24.221 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Operating Profit (EBIT - group share) | 26.499 | -1.967 | 24.532 | -55 | 24.477 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Operating Profit (EBIT - group share) - % | 58% | -223% | 52% | -2% | 49% |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Financial Results | -25 | -2 | -27 | -49 | -76 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Capital gains on Disposals | - | 2.999 | 2.999 | 1.931 | 4.930 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Share in the result of the enterp. accounted for using the equity method | 4 | - | 4 | - | 4 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Profit before taxes (PBT) | 26.103 | 773 | 26.876 | 1.828 | 28.704 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Income taxes | -8.872 | 1.397 | -7.475 | -46 | -7.521 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Net profit for the year | 17.231 | 2.170 | 19.401 | 1.782 | 21.183 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Minority interests | - | 341 | 341 | - | 341 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Net profit - share of the Group | 17.231 | 2.511 | 19.743 | 1.781 | 21.524 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Net current profit - share of the Group | 17.617 | -488 | 17.129 | -430 | 16.699 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
| | | | | | |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Assets and liabilities | | | | | |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Investment accounted for using equity method | 177 | - | 177 | - | 177 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Non-Current Assets | 7.323 | 305 | 7.628 | - | 7.628 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Cash and cash equivalents | 21.594 | 2.779 | 24.373 | - | 24.373 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Assets | 45.552 | 4.412 | 49.964 | - | 49.964 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Total Equity | 35.902 | 1.675 | 37.577 | - | 37.577 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Financial debts | 3.946 | - | 3.946 | - | 3.946 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Government recoverable loans | 913 | 1.542 | 2.455 | - | 2.455 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Liabilities | 45.552 | 4.412 | 49.964 | - | 49.964 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
| | | | | | |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Other segment information | | | | | |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Depreciation, provisions and write-offs | 1.552 | 172 | 1.724 | 83 | 1.807 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|EBITDA | 28.052 | -2.052 | 26.000 | 28 | 26.028 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
|Net acquisitions linked to operations | 276 | 265 | 541 | - | 541 |
+-------------------------------------------------------------------------+--------+------------+-----------------------------+------------------------------------+-----------+
(5) As from 1st October, consolidating only 60,17% of XDC S.A.
(6) NETIA S.A. has been deconsolidated as from July 1, 2004.
4.3. GEOGRAPHICAL SEGMENT 2005
The TV activities are split over 3 regions : Asia Pacific ("APAC"), Europe, Middle-East and Africa ("EMEA") and North America and Latin America ("NALA") while XDC business is limited to EMEA.
+------------------------------------------+------+-+-------+-+-------+-+-----------+
| (In thousands Euros) |APAC | | EMEA | | NALA | |TOTAL 2005 |
+------------------------------------------+------+-+-------+-+-------+-+-----------+
|Revenue | | | | | | | |
+------------------------------------------+------+-+-------+-+-------+-+-----------+
|Sales to external customers |6.504 | |32.865 | |14.427 | | 53.796 |
+------------------------------------------+------+-+-------+-+-------+-+-----------+
|Segment revenue |6.504 | |32.865 | |14.427 | | 53.796 |
+------------------------------------------+------+-+-------+-+-------+-+-----------+
| | | | | | | | |
+------------------------------------------+------+-+-------+-+-------+-+-----------+
|Evolution versus 2004 - Proforma % | -14% | | 67% | | -27% | | 15% |
+------------------------------------------+------+-+-------+-+-------+-+-----------+
|Segment Revenue at constant exchange rate |6.504 | |32.865 | |14.447 | | 53.816 |
+------------------------------------------+------+-+-------+-+-------+-+-----------+
4.4. GEOGRAPHICAL SEGMENT 2004
+-----------------------------------+------+-+-------+-+-------+-+-----------+
| (In thousands Euros) |APAC | | EMEA | | NALA | |TOTAL 2004 |
+-----------------------------------+------+-+-------+-+-------+-+-----------+
|Revenue | | | | | | | |
+-----------------------------------+------+-+-------+-+-------+-+-----------+
|Sales to external customers |7.565 | |19.634 | |19.687 | | 46.886 |
+-----------------------------------+------+-+-------+-+-------+-+-----------+
|Sales from discontinued activities | 165 | | 2.799 | | 49 | | 3.013 |
+-----------------------------------+------+-+-------+-+-------+-+-----------+
|Segment revenue |7.730 | |22.433 | |19.736 | | 49.899 |
+-----------------------------------+------+-+-------+-+-------+-+-----------+
2004's discontinued operations relate to NETIA which has been sold and deconsolidated as of July 1, 2004.
ANNEX 5 : EVS GROUP - IFRS CONSOLIDATED CASH FLOW STATEMENT
+---------------------------------------------------------------------------+-------------+-+-------------+
| (In thousands Euros) |2004 Audited | |2005 Audited |
+---------------------------------------------------------------------------+-------------+-+-------------+
| | | | |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Cash flows from operating activities | | | |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Profit before taxation | 28.704 | | 29.055 |
+---------------------------------------------------------------------------+-------------+-+-------------+
| | | | |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Adjustment for non cash items : | | | |
+---------------------------------------------------------------------------+-------------+-+-------------+
|- Share in the Result of the Enterp. accounted for using the equity Method | -4 | | -115 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|- Depreciation on fixed assets | 1.062 | | 1.494 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|- Foreign exchange loss | -164 | | 437 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|- XDC Spin-out dilution profit | -2.999 | | - |
+---------------------------------------------------------------------------+-------------+-+-------------+
|- Capital gain on Netia Disposal | -1.931 | | - |
+---------------------------------------------------------------------------+-------------+-+-------------+
|- Stock based compensation | 375 | | - |
+---------------------------------------------------------------------------+-------------+-+-------------+
|- Provisions and deferred taxes increase, decrease | 181 | | 160 |
+---------------------------------------------------------------------------+-------------+-+-------------+
| | 25.224 | | 31.031 |
+---------------------------------------------------------------------------+-------------+-+-------------+
| | | | |
+---------------------------------------------------------------------------+-------------+-+-------------+
|- Amounts receivable | 2.975 | | -1.957 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|- Deferred charges and accrued income | -229 | | 2.299 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|- Trade debts and prepayments | -513 | | 459 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|- Taxes, remuneration and social security debts | -916 | | 240 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|- Other amounts payable | 24 | | 391 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|- Inventories | 466 | | -1.082 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Cash generated from operations | 27.030 | | 31.380 |
+---------------------------------------------------------------------------+-------------+-+-------------+
| | | | |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Interest received | 262 | | 559 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Income taxes | -8.076 | | -10.443 |
+---------------------------------------------------------------------------+-------------+-+-------------+
| | | | |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Net cash from operating activities | 19.216 | | 21.496 |
+---------------------------------------------------------------------------+-------------+-+-------------+
| | | | |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Cash flows from investing activities | | | |
+---------------------------------------------------------------------------+-------------+-+-------------+
|XDC Spin-out, net cash acquired | 2.317 | | - |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Netia Disposal, net cash acquired | 2.427 | | - |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Purchase/disposal of intangible assets | -7 | | -579 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Purchase/disposal of property, plant and equipment | -534 | | -2.512 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Purchase/disposal of leasing equipment | - | | -5.842 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Purchase/disposal of other financial assets | -1.178 | | -45 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Purchase/disposal short term investments | -147 | | 147 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Net cash used in investing activities | 2.878 | | -8.831 |
+---------------------------------------------------------------------------+-------------+-+-------------+
| | | | |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Cash flows from financing activities | | | |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Capital increase | 480 | | - |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Reduction of capital | -8.138 | | - |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Operations with treasury shares | -428 | | -2077 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Other net equity variations | -175 | | 84 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Interest paid | -265 | | -331 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Proceeds from long-term borrowings | -1.058 | | 5.319 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Dividends paid | -2.727 | | -13.805 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Net cash used in financing activities | -12.311 | | -10.810 |
+---------------------------------------------------------------------------+-------------+-+-------------+
| | | | |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Net increase in cash and cash equivalents | 9.784 | | 1.855 |
+---------------------------------------------------------------------------+-------------+-+-------------+
| | | | |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Cash and cash equivalents at beginning of period | 14.589 | | 24.373 |
+---------------------------------------------------------------------------+-------------+-+-------------+
|Cash and cash equivalents at end of period | 24.373 | | 26.227 |
+---------------------------------------------------------------------------+-------------+-+-------------+
ANNEX 6 : EVS GROUP -IFRS CONSOLIDATED STATEMENT OF CHANGES IN NET EQUITY
+------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
| |Issued capital | |Available reserves | |Treasury shares | |Equity attributable to shareholders of the parent company | |Minority interest | |Total Net Equity |
+------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
| | | | | | | | | | | | |
+------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
|Balance as per 31 December 2004 | 8.342 | | 28.343 | | -2.723 | | 33.962 | | 3.615 | | 37.577 |
+------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
| | | | | | | | | | | | |
+------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
|Net profit of the year attributable to the shareholders of the parent company | | | 18.612 | | | | 18.612 | | | | 18.612 |
+------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
|Operations with treasury shares | | | -580 | | -1.497 | | -2.077 | | | | -2.077 |
+------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
|Dividends | | | -13.805 | | | | -13.805 | | | | -13.805 |
+------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
|Net profit of the year attributable to the minority interest | | | 1.402 | | | | 1.402 | | -1.402 | | 0 |
+------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
|Other increase (decrease) | | | 86 | | | | 86 | | | | 86 |
+------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
|Balance as per 31 December 2005 | 8.342 | | 34.058 | | -4.220 | | 38.179 | | 2.213 | | 40.392 |
+------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
+---------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
| |Issued capital | |Available reserves | |Treasury shares | |Equity attributable to shareholders of the parent company | |Minority interest | |Total Net Equity |
+---------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
| | | | | | | | | | | | |
+---------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
|Balance as per 31 December 2003 | 16.000 | | 9.869 | | -2.294 | | 23.575 | | 4 | | 23.578 |
+---------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
| | | | | | | | | | | | |
+---------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
|1. Issue of shares | 480 | | | | | | 480 | | | | 480 |
+---------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
|2. Reduction of capital ( - ) | -8.139 | | | | | | -8.139 | | | | -8.139 |
+---------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
|3. Increase (decrease) of equity capital resulting from company regrouping | | | -323 | | | | -323 | | 3.611 | | 3.288 |
+---------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
|4. Net profit of the year attributable to the shareholders of the parent company | | | 21.184 | | | | 21.184 | | | | 21.184 |
+---------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
|5. Operations with treasury shares | | | | | -428 | | -428 | | | | -428 |
+---------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
|6. Dividends | | | -2.727 | | | | -2.727 | | | | -2.727 |
+---------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
|7. Net profit of the year attributable to the minority interest | | | 340 | | | | 340 | | | | 340 |
+---------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
|Balance as per 31 December 2004 | 8.342 | | 28.343 | | -2.723 | | 33.962 | | 3.615 | | 37.577 |
+---------------------------------------------------------------------------------+---------------+-+-------------------+-+----------------+-+----------------------------------------------------------+-+------------------+-+-----------------+
EVS Group IFRS accounting rules are available on request and are available on our website www.evs-global.com .
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