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Serge Van Herck, CEO, comments:

“As we reflect on the past year, I am proud to announce that 2024 has been a remarkable year for EVS. Our robust financial performance underscores the effectiveness of our PlayForward strategy, aimed at fostering sustained and profitable long-term growth. EVS achieved record-breaking revenue of EUR 198 million, and demonstrated strong profitability, both at the high end of our previously released guidance. We are also proud of having contributed to the successful live production of the main sporting events that took place in Europe in 2024, which fueled our Big Event Rental revenues. This success serves as a testament to the efficacy of our strategic initiatives.

In 2024, EVS celebrated its 30th anniversary, marking three decades of innovation and excellence. We commemorated this milestone with our customers, EVS operators and channel partners around the world, with a specific highlight being the EVS House during the Paris Olympics. This celebration not only honored our past achievements but also reinforced our commitment to future growth and innovation.

Additionally, we made strategic investments to further strengthen our MediaCeption solution offering. We acquired Porto-based MOG Technologies and made a minority investment in Belgium-based Tinkerlist. These investments are aimed at enhancing our capabilities and delivering even greater value to our customers. We are seeing the positive results of our VIA MAP investments over the last years. We now have VIA MAP solutions operational with customers in all of our regions.

Our LAB customer segment represents our largest growth engine as expected. All our regions contributed to our revenue growth, with North America being one of the largest growth generators.

Our Net Promoter Score (NPS), as measured by Devoncroft, further increased, placing us in the top 10% of the best-ranking companies in our industry. This achievement reflects our unwavering commitment to customer satisfaction and excellence.

Moreover, we received the Top Employer certificate for the third year in a row, showcasing our dedication to focusing on the engagement of our team members. This recognition highlights our commitment to creating a supportive and engaging work environment which represents an important objective in our global ESG strategy.

Looking ahead, the significant order intake of 2024 has considerably fueled our order book for future periods. We remain committed to driving innovation and delivering exceptional value to our customers and stakeholders. Our achievements in 2024 have laid a solid foundation for continued growth and success in the years to come.

While we firmly believe that our PlayForward strategy will help us further sustainably grow our market share and financial results, we remain cautious for the future as the economic and geopolitical situation remains very unstable.”

Commenting on the results and the outlook, Veerle De Wit, CFO, said:

"We are pleased to report a very solid order intake of EUR 208 million, allowing us to start the year 2025 on a sound note.

This strong order intake is complemented by an exceptional revenue performance of EUR 198 million. The successful summer events of 2024 enabled EVS to showcase all of our solutions at these major events, leading to a record big event revenue of EUR 15.8 million.

Our very solid gross margin performance (+2.7 Pts YoY) is a testament to our balanced pricing strategy, ensuring we maintain profitability while delivering high value to our customers.

Additionally, our controlled expense growth underscores our commitment to continued investments aimed at capturing organic growth opportunities. The control over our discretionary spending allows us to select those investments that create the best return on investment, and we demonstrated in 2024 that we can model the investments and their short-term impacts with longer-term results.

On some occasions, we may shift our go-to-market-strategies though. During the second half of 2024, multiple events have led to a change in strategy for one of our internal developments, initially recognized as intangible assets. Both our latest acquisition as well as some changes in the broadcast market have led to the fact that we will no longer position this internal development as a stand-alone solution, rather as a building block of our new ecosystem VIA MAP. As a consequence, the internal development could no longer be considered under IAS38. This has led to a write off of the intangible asset worth EUR 1.1 million in the 4^th quarter of 2024. This write off has impacted our EBIT margin by -0.5 Pts.The internal development efforts for this specific product were not in vain though, and the developments will be re-used as building blocks for the new offering and its positioning in the market.

Thanks to our revenue growth, we secured a very solid EBIT of EUR 45.0 million (22.7% EBIT margin) and realized a net profit of EUR 42.9 million (21.7%) resulting in a diluted earnings per share of EUR 3.02.

Tax-wise we benefited from some tax latencies linked to our newest acquisition in Portugal.

From a balance sheet point of view, we are happy to confirm that we keep optimizing some important metrics (like trade receivables). This demonstrates that with strong financial management we can further improve our metrics and the health of our balance sheet. With our net cash position at EUR 74.9 million we have a strong financial power to execute on our growth strategy.

All of the above positions us strongly for future growth and sustained success."

Market & Customers – Sustained Profitable Growth

Strong Presence at Major Summer Events

During the 2024 major summer events, EVS successfully delivered and supported the deployment of its three flagship solutions, enabling billions of viewers worldwide to experience the performance of top athletes. Customers across all regions attending these events had the unique opportunity to witness the robustness of EVS infrastructure, the efficiency of its workflows, and the benefits of its solutions for leading global operators.

Consistent Growth in LAB and NALA Regions

As outlined in the PlayForward strategic roadmap launched in early 2020, the Live Audience Business (LAB) market pillar and the NALA region continue to experience steady year-over-year revenue and order intake growth. This sustained momentum underscores the success of past investments in innovative solutions that address the evolving needs of our customers.

Illustrating this growth, EVS secured a major commercial deal with a leading U.S. bank, thanks to one of our main channel partners in the USA, demonstrating the relevance of our product portfolio for high-quality media production beyond traditional broadcasting.

It is also worth noting that EVS is the only company among its peers to achieve three consecutive years of NPS growth, highlighting our unwavering commitment to customer satisfaction and excellence.

Order Intake Growth Driven by Channel Partners

A key driver of EVS’s order intake growth is its network of strategic Channel Partners. This reflects the effectiveness of our evolving sales strategy, which is increasingly focused on indirect sales through strong partnerships with key industry integrators.

Global Deployment and Customer Support Excellence

The VIA MAP platform, part of MediaCeption solution for broadcast centers, developed through targeted internal investments, is now fully deployed and operational across all regions. This not only confirms strong market traction but also showcases the solution’s extensive feature set.

Additionally, EVS teams provided outstanding support during the 2024 major summer events, demonstrating their expertise in implementing a diverse range of workflows within complex environments.

This recognized expertise supports the growing demand for Service Level Agreements (SLA), driving an increase in recurring revenue streams.

Supply Chain Resilience and Operational Readiness

Amid ongoing geopolitical uncertainties, EVS remains proactive in mitigating potential supply chain disruptions. As part of our preparedness strategy, inventory used for the summer events has been reintegrated into different EVS facilities, serving as a strategic buffer to ensure rapid response to customer emergencies.

We also remain vigilant to any geopolitical impact that may come in the near future and do pro-actively define strategies to tackle any change in market conditions.

Technologies

Continued Investment in Technological Innovation

EVS remains steadfast in its commitment to driving innovation within the broadcast industry. In line with our strategic objectives, we continue to dedicate over 40% of our workforce to the technological development of our products and solutions. This unwavering focus is fundamental to our ability to stay ahead in a rapidly evolving industry. Our mission is to empower customers and EVS operators with cutting-edge tools that address their most pressing operational challenges.

Advancements in Broadcast-Specific Generative AI

Since 2017, EVS has been at the forefront of integrating generative AI technologies specifically designed for the broadcast sector. Following the successful launch of an enhanced on-premises version of XtraMotion in 2023 - our generative AI-powered slow-motion replay solution that enables operators to generate high-quality imagery with greater efficiency - EVS continues to expand its portfolio of AI-driven effects. These advancements enhance production quality without requiring additional specialty cameras, delivering greater flexibility and cost-effectiveness for broadcasters.

Cerebrum Everywhere: Expanding Broadcast Control Capabilities

Cerebrum, EVS’s industry-leading broadcast control and monitoring system, has been further enhanced with a critical new module for resource management. This powerful addition enables customers to optimize equipment usage while simultaneously reducing their carbon footprint – aligning operational efficiency with sustainability goals. As an open, vendor-agnostic solution, Cerebrum is increasingly becoming the industry standard for broadcast control and monitoring, offering unmatched flexibility and scalability for media operations worldwide.

Commitment to Sustainability

EVS is deeply committed to sustainability, integrating eco-conscious initiatives across all aspects of our business. Reducing power consumption and carbon footprints has become a key focus for our development teams, driving continuous improvements through architectural optimizations, product innovations, and software efficiency enhancements. These efforts reflect our broader responsibility toward environmental stewardship and our commitment to fostering a more sustainable future for the industry. Besides the environmental scope, we continue to strive for optimal working conditions and pro-actively support communities around the world, whilst we aim for an optimal governance of our company. Further details on these efforts and initiatives are presented in our annual sustainability report.

Corporate topics

Ongoing Transformation and Strategic Growth

EVS continues to evolve, aligning its organizational structure with the company’s sustained growth. In 2024, several leadership roles were adjusted, including the appointment of Oscar Teran as EVP Markets & Solutions. Additionally, the NALA team has been significantly strengthened, ensuring the local structure is well-positioned to support our ambitious growth objectives. Operational efficiency also remains a priority, with continuous improvements in internal tooling. While some of these advancements will operate behind the scenes, others will enhance the way customers interact with EVS, ensuring a more seamless and efficient experience.

Strategic Acquisitions & Investments

In October, EVS finalized the acquisition of MOG Technologies, expanding the Total Addressable Market of MediaCeption. This acquisition enables EVS to leverage MOG’s products, technology components, and talented team in Porto to accelerate growth in media management solutions. The first three months of integration have already demonstrated the strength of MOG’s team and the strategic value they bring to EVS’s development.

In August, EVS also acquired a minority stake in TinkerList, reinforcing our commitment to news and production automation. This investment is expected to drive further innovation and expand workflow capabilities in these key areas.

Commitment to Corporate Sustainability

Sustainability is now embedded in all aspects of our operations. Our nine core corporate sustainability tracks - which include customer and company carbon footprint reduction, talent management, diversity & inclusion, customer experience, local social contribution, cybersecurity, sustainable supply chain, and business ethics - have been further refined, with teams actively working toward achieving our PlayForward 2030 growth objectives. EVS remains a recognized ESG leader in the industry, consistently receiving positive market feedback for our commitment to sustainability and responsible business practices.

Top employer for the 3^rd year in a row

For the third consecutive year, EVS has been recognized as one of Belgium’s Top Employers, reinforcing the positive results of our internal surveys and strengthening our ability to attract and retain top talent.

Celebrating 30 Years of Innovation

In 2024, EVS celebrated its 30^th anniversary worldwide under the theme "Family and Friends Together for Live". During the Paris Olympics & Paralympics, various communities of broadcast industry stakeholders from around the globe gathered at the EVS House to celebrate past achievements and strengthen relationships for the future.

Share buyback

In December 2024 we launched a new share buyback program worth EUR 10 million. Per February 14^th 2025, we bought back 176,891 shares at an average share price of EUR 30.6488, representing in total EUR 5,421,493.22. This corresponds to 54.21% of the announced program. EVS currently owns 983,389 treasury shares representing 6.9% of the total shares.

Capital allocation strategy

In line with the corporate strategy, EVS has developed an end-to-end capital allocation framework. The goal is to provide transparency on how free cash flow will be deployed within the company. Based on the company’s growth plans, the allocation of cash will primarily be focussed on generating both organic as well as inorganic growth.

For organic growth purposes, the company reserves a portion of its free cash flow to allow for internal investments. The objective of these investments is to ensure acceleration of our growth potential by allocation of funds to those projects that are expected to provide a solid return on investment over time. In this area we did decide in the past to launch some specific internal developments, such as VIA MAP as an example.

For inorganic growth, the company will set aside funds to support potential acquisition activities. The goal here is to focus on adjacent solutions that complement the current portfolio of EVS. We set a target of growing this specific fund annually by setting aside a portion of our free cash flow. This buffer for acquisitions will be proactively managed so as to ensure an optimal return and avoid any cash erosion, until the funds are allocated to a specified acquisition.

As a third pillar, EVS will continue to pay a base dividend. For the next 3-years 2025-2027 we propose a new dividend policy, fixing the annual dividend at EUR 1.20 per share.This renewed base dividend policy foresees a growth of EUR 0.10 per share (or 9.1%) compared to the previous policy covering 2022-2024.

A fourth pillar in the capital allocation strategy refers to an annual share buy back program, mainly linked to the funding of the long-term team member incentive plans. The goal is to offset the potential dilution caused by the annual issuance of warrants by repurchasing shares.

In case of any residual excess cash, the company may consider launching ad-hoc initiatives such as, for example, special share buy back program or special dividend payout.

Some of the aforementioned pillars are subject to approval by the general assembly, and all remain subject to any changes in market conditions or company dynamics. The capital allocation strategy serves as a framework to guide our decisions, whilst allowing for flexibility to adjust when market conditions change.

Second half and full-year revenue

In 2H24, revenue reached EUR 99.9 million, representing an increase of EUR 14.1 million or 16.5% compared to 2H23. Excluding Big Event Rentals, the growth is of 3.1%.

At constant currency, revenue increased by 16.5% YoY.

For the full year 2024, revenue reached EUR 198.0 million, representing an increase of EUR 24.8 million or 14.3% compared to 2023. Excluding Big Event Rentals, the growth is of 5.1%.

At constant currency, revenue increased by 14.3% YoY.

Currency fluctuations primarily impact EVS revenues by the EUR/USD conversion, which can have a significant impact on our results even if EUR/USD fluctuations also impact the cost of our US operations and partially our cost of goods sold.

In the second half of the year, excluding Big Event Rentals, LSP represented 38% of the revenue (40% in 2H23) while LAB accounted for 62% (60% in 2H23). The growth of LAB business is one of the strategic pillars of EVS and demonstrates our ability to expand our footprint with generic broadcasters.

Full-year earnings

Consolidated gross margin was at 72.3% for FY24, compared to 69.7% in FY23 (+2.6 Pts YoY). This improvement was primarily driven by sales price increases and a higher proportion of software compared to hardware in certain solutions. Additionally, the growth in service-related revenue contributed to the overall gross margin increase, resulting in improved margins across most of our solutions. The margin is positively influenced as well by a reclassification of internal assets previously presented under inventory to other tangible assets, explaining approx. 1.7Pts of the increase. From an EBIT point of view, this change in accounting has no impact.

Operating expenses increased by 23% YoY driven by the expansion of the team members, the rising labour costs due to inflation, and higher associated expenses such as licenses, travel expenses, linked to our expanding resource base. Additionnally, the increase is also explained by the depreciation of the intangible assets created since 2022. For one of the projects, launched in 2022, a write off of the development costs was booked in 4Q24, as some recent events have led to a change in our go-to-market strategy. This changing strategy no longer fulfills the criteria of IAS38, as the product will no longer be launched as a stand-alone product, but rather as an option in the VIA MAP ecosystem.

Overall EBIT performance was of EUR 45.0 million, generating an EBIT margin of 22.7%.

The net profit ended at EUR 42.9 million, with income tax expense amounting to EUR 3.1 million for the full year 2024 (compared to EUR 3.6 million in 2023). The decrease in income tax is mainly driven by an increase in deferred tax assets reflecting existing tax latencies in the newly acquired company MOG Portugal, as well as higher deferred tax asset related to capitalized R&D costs in the Belgian parent entity. The decrease is partially offset by higher current income taxes resulting from increased pre-tax earnings at the Group level.

The net profit leads to a fully diluted earnings per share of EUR 3.02 (versus EUR 2.65 in 2023).

Second half earnings

The gross profit margin in 2H24 reached 72.6% compared to 69.3% in the same period last year.

Operating expenses grew 19% in 2H24 compared to the same period last year, reflecting a well-monitored increase in line with the increase of the activities.

The 2H24 EBIT margin was 21.2%. compared to 18.9% in 2H23 primilarly driven by the revenue generated by the Big Events rentals.

The Group net profit amounts to EUR 21.1 million in 2H24 compared to EUR 15.8 million in 2H23. Fully diluted earnings per share amounts to EUR 1.48 in 2H24 compared to EUR 1.13 in 2H23.

Balance sheet and cash flow statement

Balance sheet, already traditionally a strong element in the EVS finances, continues to improve. 2024 ends with a net cash position of EUR 74.9 million combined with low debt level (of which EUR 12.3 million related to IFRS 16), resulting in a total equity representing 76% of the total balance sheet as of the end of 2024.

Despite the increase in activities, working capital requirements remained relatively stable compared to last year at EUR 91.5 million. In percentage of sales, the working capital has decreased from 52% at year-end 2023 to 46%. This is mainly the result of continuous improvement in the collection of the receivables throughout the year, partially offset by a slight increase in inventories of EUR 1.5 million to support the growth of our activities.

Other intangible assets include the costs for internal development capitalized since 2022 according to IAS 38 (Intangible assets). It is to be noted that part of the intangible assets has been written off at the end of 2024 (EUR 1.1 million), given the fact that the conditions for IAS38 were no longer met after a change in strategy.

Lands and building mainly include the headquarters in Liège as well as the right of use for the offices abroad (IFRS16).

Inventories amount to EUR 34.5 million, an increase of EUR 1.5 million compared to the beginning of the year with the aim to support the continuous growth of activities. The ratio of inventory vs. sales improves from 19% in 2023 to 17% in 2024.

Liabilities include EUR 12.9 million of financial debt (including long term and short-term portion), mainly related to the lease liabilities for EUR 12.3 million and borrowings for EUR 0.6 million. Long-term provisions include the provision for technical warranty on EVS products for labor and parts. Other amounts payable mainly represent deferred income and advance payments received from customers on contracts in progress.

Net cash from operating activities amounts to a record-breaking EUR 63.9 million for the full year 2024, compared to EUR 35.7 million in 2023. The increase is mainly driven by higher net profit and favorable variance in working capital requirements compared to the previous year, mainly on trade receivables following the continuous improvement in the collection of customers invoices. On December 31, 2024, cash and cash equivalents total an all-time high EUR 87.8 million, compared to EUR 50.9 million at the end of 2023. The increase is mainly driven by the higher cash from operating activities as described above, partially offset by the net cash used in investing activities of EUR -6.6 million linked to the investments in intangible and tangible assets as well as business acquisitions of MOG and Tinkerlist, together with the net cash used in financing activities of EUR -21.4 million which results mainly from total dividend payment of EUR -14.9 million and reimbursement of lease liabilities and borrowings of EUR -5.7 million.

At the end of December 2024, there were 14,327,024 EVS shares outstanding, of which 839,544 were owned by the company. At the same date, 775,476 warrants were outstanding with an average exercise price of EUR 22.95 and maturities between October 2026 and September 2030.

Team members

At the end of 2024, EVS employed 705 full time equivalent team members. This is an increase of 83 FTE compared to the end of 2023 (622 FTE). In 2024, the acquisition of MOG technologies accounted for 42 of these 83 new FTE. For 2025, we expect an increase in the number of team members, especially in NALA, so as to continue and fuel our future growth.

Corporate update

There has been no further change to the composition of the Board of Directors since the last General Assembly on May 21^th 2024 during which the shareholders have renewed the mandates of Johan Deschuyffeleer, independent director & President (representing The House of Value bv), Martin De Prycker, independent director (representing InnoConsult bv) and Michel Counson, managing director, all for a period of 4 years. The Board of Directors is currently composed of nine directors:

• Johan Deschuyffeleer, independent director & President (representing The House of Value bv);

• Michel Counson, managing director;

• Martin De Prycker, independent director (representing InnoConsult bv);

• Chantal De Vrieze, independent director (representing 7 Capital SRL);

• Frédéric Vincent, independent director;

• Marco Miserez, independent director;

• Anne Cambier, independent director (representing Accompany You SRL);

• Serge Van Herck, CEO and managing director (representing InnoVision bv) ; and

• Soumya Chandramouli, independent director (representing FRINSO SRL).
  
  

Glossary

In case of discrepancies between the English and the French Version, the English Version prevails.

Conference call

EVS will hold a conference call in English on February 19th at 10.00 am 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 for 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.

Online registration: events.teams.microsoft.com

Corporate Calendar

May 16^th, 2025 : 1Q 2025 results (post market publication)

May 20^th, 2025 : general assembly

August 19^th, 2025 : 2Q 2025 and 1H 2025 results (post market publication)

November 21^st, 2025 : 3Q 2025 results (post market publication)

About EVS

We create return on emotion

EVS is globally recognized as a leading provider in live video technology for broadcast and new media productions. Spanning the entire production process, EVS solutions are trusted by production teams worldwide to deliver the most gripping live sports images, buzzing entertainment shows and breaking news to billions of viewers every day – and in real time. As we continue to expand our footprint, our dedication to sustainable growth for both our business and the industry is clearly demonstrated through our ESG strategy. This commitment is not only reflected in our results, but also in our high ratings from different agencies.

Headquartered in Liège, Belgium, the company has a global presence with offices in Australia, Asia, the Middle East, Europe, North and Latin America, employing over 700 team members and ensuring sales, training, and technical support to more than 100 countries.

EVS is a public company traded on Euronext Brussels: EVS, ISIN: BE0003820371. EVS is, amongst others, part of the Euronext Tech Leaders and Euronext BEL Mid indices.

Media Contacts

For more info about this press release, or to set up an interview with EVS, please contact:

Veerle De Wit – Chief Financial Officer
Tel: +32 4 361 7004 – Email: v.dewit@evs.com

Sébastien Verlaine – Senior Brand & Corporate Communications Manager
Tel: +32 4 361 5809 – Email: s.verlaine@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.

Final condensed consolidated financial information

Final condensed consolidated income statement

(1) The diluted earnings per share does include:

1. 187,000 warrants attributed in October 2020, of which 33,451 are outstanding with an exercise price below the share price and with maturity in October 2026;

2. 158,600 warrants attributed in June 2021, of which 149,850 are outstanding with an exercise price below the share price and with maturity in June 2027;

3. 183,375 warrants attributed in September 2022, of which 182,625 are outstanding with an exercise price below the share price and with a maturity in September 2028;

4. 198,900 warrants attributed in October 2023, all outstanding with an exercise price below the share price and with a maturity in October 2029; and

5. 210,650 warrants attributed in September 2024, all outstanding with an exercise price below the share price and with a maturity in September 2030.

Final condensed statement of financial position (balance sheet)

(1) Retrospective adjustment related to the change in accounting policy on the presentation of materials produced for internal purposes from inventory to other tangible assets, to allow comparability with Dec’24. See details in Note 2.4.

Final condensed statement of cash flows

Final condensed statement of change in equity

* Total amount includes EUR 1,115 granted and EUR -8 forfeited

Notes to the consolidated financial statements

NOTE 1: BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS

The consolidated financial statements of EVS Group for the 12 month-period ended December 31, 2024, are established and presented in accordance with the IFRS accounting standards, as adopted for use in the European Union. The condensed financial statements of the Group for the 12 month-period ending December 31, 2024, were authorized for issue by the Board of Directors on February 18, 2025. This condensed report 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 2024 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 18, 2025. The condensed financial statements are prepared on a going concern basis.

NOTE 2.1: SIGNIFICANT ACCOUNTING POLICIES AND METHODS

The consolidated financial statements of EVS Broadcast Equipment SA and of its subsidiaries have been prepared in accordance with the IFRS accounting standards adopted by the European Union. All standards and interpretations issued by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) effective year-end 2024 and adopted by the European Union are applied by the Company. The consolidated financial statements have been prepared on an historical cost basis, except for the share-based payments (at the grant date), derivative financial instruments and contingent considerations, which are measured at their fair value. The consolidated financial statements are presented in thousands of euros. All values are rounded figures to the nearest thousand unless otherwise indicated. The accounting policies and methods adopted for the preparation of the company's IFRS consolidated financial statements are consistent with those applied in the 2023 annual consolidated financial statements, with the exception of the change in accounting principle related to revenue from contracts with customers (see Note 2.3) and change in presentation of financial statements for inventories and other tangible assets (see Note 2.4). The company’s IFRS accounting policies and methods are available in the 2023 annual report, except for the new, amended or revised IFRS standards and IFRIC Interpretations that have been in effect since January 1, 2024. The adoption of these new, amended or revised pronouncements did not have a significant impact on the consolidated financial statements of the Group.

NOTE 2.2: JUDGMENTS AND ESTIMATES

In preparing the Company’s condensed consolidated financial statements, management makes judgments in applying various accounting policies. The areas of policy judgment are consistent with those followed in the preparation of EVS annual consolidated financial statements as of and for the year ended 31 December 2023.
In addition, management is required to make estimates that affect amounts included in the financial statements. The estimates carried out on each reporting date reflect the conditions in force on these dates (for example: market price, interest rates and exchange rates). Although these estimates are based on the best knowledge of management of the existing events and of the actions that the group could undertake, the real results may differ from these estimates.
The use of estimates is particularly applicable when performing goodwill impairment tests and evaluating any additions to the purchase price of past business combinations, the determination of the contingent consideration, determining the fair value of share-based payments, the evaluation of the deferred tax position, the measurement of employee benefit obligations and the determination of the percentage of completion of projects in progress. These estimates are further discussed in the Company’s annual report.

NOTE 2.3: CHANGE IN ACCOUNTING POLICY – REVENUE FROM CONTRACTS WITH CUSTOMERS

During the current period, the Group has changed its accounting policy regarding the determination of the percentage of completion for projects. Previously, the percentage of completion was determined in proportion to the total time expected to complete this type of projects at the end of the reporting period. As from January 1, 2024, the Group has adopted a new method for determining the percentage of completion based on fixed milestones.

The change in policy is implemented to better reflect the progress of completion and improve the reliability of revenue recognition. The new method provides a more accurate measure of the project’s completion and aligns with industry practices. This change does not materially affect the financial results for prior periods. The impact on FY 2023 financial statements would have been neutral (EUR 0 million).

NOTE 2.4: CHANGE IN PRESENTATION OF FINANCIAL STATEMENTS – INVENTORIES AND OTHER TANGIBLE ASSETS

During the current period, the Group has changed the presentation of materials produced for internal purposes in the condensed financial statements. Previously, these products were presented as Inventories. As of January 1, 2024, the Group has adopted a new presentation method whereby these items are now classified as Other tangible assets/fixed assets.

The change in presentation was made to enhance the clarity and comparability of the financial statements. The new presentation method provides more relevant information and better reflects the nature of the Group's financial assets and costs, aligning with industry’s best practices.

The effect of this change on the 2023 financial statements would have resulted in a transfer of EUR 1.9 million from Inventories to Other tangible assets, reflecting the net value of these products. Additionally, it would have led to a reclassification of EUR 0.6 million of depreciation from the Cost of sales to Research and development expenses.

NOTE 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. Therefore, the majority of investments and costs are located at the level of the Belgian parent company. Resources securing the customer facing interactions such as sales, operations and support profiles are primarily hired within the respective regions. The 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 one class of business defined as solutions based on tapeless workflows with a consistent modular architecture. There are no other significant classes of business, either singularly or in aggregate. Identical modules can meet the needs of different markets, and 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 operates 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”, “Live Audience Business” and “Big Event Rentals” for rental contracts relating to the big sporting events.

Finally, sales are presented by nature: sale of equipment and other services.

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.

3.2. Information on revenue by geographical area

Activities are divided in three regions: Asia-Pacific (“APAC”), Europe, Middle East and Africa (“EMEA”), and “Americas”. Aside of them, we make separate distinction for the category “Big Event Rentals” which is not attributed to specific region.

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 customers (according to the definition of IFRS 8) in the United States for an amount of EUR 53.6 million (EUR 51.0 million in 2023).

3.3. Information on revenue by nature

Revenue can be presented by nature: sale of equipment and other services.

Other services include the advice, installations, project management, rentals, training, maintenance, and distant support. Work in progress (“WIP”) contracts are included in both categories.

The sales of equipment are recognized at a point in time while other services are recognized over time.

3.4. Information on important customers

Over the last 12 months, no external customer of the company represented more than 10% of the revenue (similar in 2023).

NOTE 4: INCOME TAX EXPENSE

Income tax expense amounts to EUR 3.1 million for the full year 2024, compared to EUR 3.6 million in 2023. The decrease is primarily attributed to a rise in deferred tax assets reflecting :

• existing tax latencies in the newly acquired company, MOG Portugal (EUR +1.8 million);

• an increase in deferred taxes on the reversal of the hidden reserve determined under Belgian tax law. This reserve is related to capitalized R&D costs, which are fully amortized in accounting but are only tax-deductible over three years for corporate tax purposes (EUR + 1.6 million).

This effect is partially offset by higher current income taxes (EUR + 2.0 million) resulting from increased pre-tax earnings at the EVS Group level.

The effective tax rate for the period ended on December 31, 2024 is 6.8%, compared to 8.9% in 2023.

NOTE 5: INTANGIBLE ASSETS

Intangible assets decreased by EUR 2.6 million during the period, reflecting the depreciation expenses of EUR 3.5 million coupled with the write-off of certain investments amounting to EUR 1.1 million, partially offset by the capitalization of internal development costs of EUR 1.3 million and intangibles acquired as part of business combination of EUR 0.8 million. For one of the projects, launched in 2022, a write off of the development costs was booked in 4Q24, as some recent events have led to a change in our go-to-market strategy. This changing strategy no longer fulfills the criteria of IAS38, as the product will no longer be launched as a stand-alone product, but rather as an option in the VIA MAP ecosystem

The intangible capitalized costs in 2024 include mainly the internal personnel costs and external consultants’ costs related to the development phase of an important project that should secure future growth for EVS. This project consists in software and hardware that will be commercialized at the end of the development. The projected spend is of EUR 5.9 million over a period of 3 years, with planned return on investment as of 2027. The progress of these internal developments is monitored frequently as to ensure the future economic benefit remains assured .

NOTE 6: BUSINESS COMBINATION – ACQUISITION OF MOG TECHNOLOGIES

On October 1st, 2024, EVS completed the acquisition of 100% of the shares of MOG Technologies, a Portugal based company with around 50 highly skilled team members, renowned for its cloud and SW digital media and video production tools. MOG Technologies' renowned expertise in cloud technology reinforces EVS's Balanced Computing strategy, particularly enhancing its content management and distribution solutions, respectively MediaCeption and MediaHub. The acquisition grants EVS access to a pool of highly skilled talent, bringing expertise in digital media and video technology, beyond traditional broadcasting. It also provides a broader and more integrated range of solutions to streamline media workflows from ingest to distribution, enhanced capability of investment in research and development to drive technological advancements and deliver cutting-edge solutions, as well as improved customer support and professional services to ensure seamless implementation and optimal use of the combined product portfolio.

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 MOG Technologies includes:

• A cash amount of EUR 1.0 million paid at closing date.

• A contingent consideration ranging between EUR 0 million and maximum EUR 2.6 million (earn-out to be paid by the Company) depending on several factors including:

  • the achievement of pre-defined revenue levels in fiscal years 2025 to 2029;

  • the collection of whole or part of specifically identified existing doubtful receivables;

  • the final resolution of ongoing judicial proceedings;

  • the effective recoverability of existing tax credits;

  • the continuation of identified key employees in the Company in the next four years.
    
    

The fair value of the contingent consideration, included under line item "Other amounts payable, advances received, accrued charges and deferred income", amounts to EUR 0.9 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 inputs to which this fair value measurement is most sensitive are the estimated amount of MOG Technologies’ revenue over the reference period, the continuation of key employees in the Company and the effective recovery of existing tax credits. Depending on the actual realization of these inputs, the Company is exposed to a future income statement impact ranging between a loss of EUR 1.7 million (in case the maximum earn-out is reached) and a gain of EUR 0.9 million (in case of minimum earn-out).

The amounts recognized with respect to identifiable assets acquired and liabilities assumed, as well as the consideration transferred and the resulting amount of goodwill and net cash flow effect at acquisition date are as set in the table below:

The goodwill, amounting to EUR 1.6 million, consists of expected market synergies from the combination of MOG Technologies and EVS as well as the skilled workforce of MOG Technologies, which both do not qualify for separate recognition as intangible assets. Goodwill is not expected to be deductible for tax purposes.

The method used for the valuation of the technology consists in the royalty relief method (potential savings for owning the technology after the acquisition) supported by a benchmark analysis.

The customer-related intangible asset was valued based on the Multi‐period Excess earnings method (by estimating revenues and cash flows derived from the intangible asset).

The fair value of accounts receivable of EUR 1.4 million corresponds to the gross contractual amounts receivable.

Since the acquisition date on 1 October 2024, MOG Technologies contributed EUR 0.5 million to revenue and EUR -0.5 million to net result in the consolidated income statement for the 3 month-period ended 31 December 2024. If the acquisition of MOG Technologies had been completed on 1 January 2024, the consolidated Group’s revenue and net result for the 12 month-period ended 31 December 2024 would have been EUR 2.3 million and EUR -5.3 million respectively.

The acquisition-related costs amounting to EUR 0.2 million have been immediately expensed as incurred and are presented under the caption “Selling and administrative expenses” in the income statement.

NOTE 7: INVESTMENTS IN ASSOCIATES

In August 2024, EVS completed the acquisition of a minority stake position in the Belgian Company TinkerList, a leading innovator in the media production industry, having developed Cuez – the World’s First Cloud-Based Rundown Management System – as a cutting-edge web application and automation system designed to connect seamlessly with a wide variety of production devices. TinkerList products will be enhancing the EVS Flexible Control Room and MediaCeption solutions through a strategic partnership in addition to the acquisition of a minority stake.

Total consideration paid at transaction date amounted to EUR 1.0 million. As of December 31, 2024, EVS holds 21.7% participation in TinkerList with a carrying amount of the investment amounting to EUR 0.9 million. The share of EVS in the 2024 results of TinkerList amounts to EUR -0.1 million.

NOTE 8: FINANCIAL LIABILITIES

In June 2020, a loan of EUR 5.5 million was put in place with BNP Paribas Fortis to partially finance the acquisition of Axon. The repayment schedule foresees first repayment of EUR 0.6 million in 2020 and annual installments of EUR 1.1 million between 2021 and 2024, with final repayment of EUR 0.6 million in June 2025 at loan maturity.

In June 2020, a roll over credit line of EUR 5.0 million was also put in place with Belfius bank to partially finance the acquisition of Axon. This amortizing credit line will expire at the end of June 2025. As of this date, EVS has not used this credit facility.

Lease liabilities mainly include office lease contracts at the various affiliates worldwide and employees car leases.

NOTE 9: FAIR VALUE OF THE FINANCIAL INSTRUMENTS

The fair value of the financial assets and liabilities is defined as the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

- Cash and cash equivalents and short-term investments, trade receivables, trade payables, and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments;

- Long term fixed rate and variable rate other assets are evaluated by the Group based on parameters such as interest rates, specific country risk factors, individual creditworthiness of the customer and the risk characteristics of the financed project. Based on this evaluation, allowances are made to account for the expected losses of these receivables. As at December 31, 2024, the carrying amounts of such receivables, net of allowances, are assumed not to be materially different from their calculated fair values;

- The fair value of unquoted instruments, loans from banks and other financial liabilities, obligations under finance leases as well as other non-current financial liabilities is estimated by discounting future cash flows using the effective interest rates currently available for debt on similar terms, credit risk and remaining maturities. As of December 31, 2024, the effective interest rate is not materially different from the nominal interest rate of the financial obligation;

- The Group enters into derivative financial instruments with various counterparties, principally financial institutions with investment grade credit ratings. Derivatives valued using valuation techniques with market observable inputs are mainly foreign exchange forward and option contracts. The most frequently applied valuation techniques include forward pricing and swap models, using present value calculations. The models incorporate various inputs including foreign exchange spot and forward rates and interest rate curves.

As at December 31, 2024, the Group held the following financial instruments measured at fair value:

The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly;

Level 3: techniques that use inputs having a significant effect on the recorded fair value that are not based on observable market data

All fair values mentioned in the above table relate to Level 2. There were no transfers between Level 1, Level 2 and Level 3 fair value measurements during the reporting period.

NOTE 10: EXCHANGE RATES

The main exchange rates that influence the consolidated financial accounts are USD/EUR and GBP/EUR which were considered as follows:

NOTE 11: HEADCOUNT

At the end of 2024, EVS employed 705 team members (FTE). This is an increase by 83 team members compared to the end of 2023. In 2024, the acquisition of MOG technologies accounted for 42 of these 83 new FTE. For 2025, we expect an increase in the number of team members, especially in NALA, so as to continue and fuel our future growth.

NOTE 12: EQUITY SECURITIES

The variance in number of treasury shares and outstanding warrants in the period is as follows:

On November 25, 2024, the Group announced the decision of its Board of Directors to start a share buyback program of its outstanding shares for a maximum amount of EUR 10 million and up to 355,000 shares. The share buyback program is implemented in accordance with the authorization set forth in article 10 of the Articles of Association of the company. It started on December 1, 2024, for a period of maximum 2 years. The buyback program is mandated to a third party, with revocation clause allowing either party to terminate the mandate with immediate effect without compensation. In 2024, the Group repurchased 71,985 own shares.

During 2024, 113,299 treasury shares were used to satisfy the exercise of warrants by employees related to the 2020 stock option plan.

The Ordinary General Meeting of shareholders of May 21, 2024, approved the allocation of 12,962 shares to EVS employees (grant of 36 shares to each staff member in proportion to their effective or assimilated time of occupation in 2023) as a reward for their contribution to the Group successes.

NOTE 13: DIVIDENDS

The Ordinary General Meeting of May 21, 2024, approved the payment of a total gross dividend of EUR 1.10 per share for the year 2023.

For the year 2024, an interim dividend of EUR 0.50 per share was paid in November 2024. Full year dividend of EUR 1.10 per share will be proposed to the Ordinary General Meeting of shareholders.

The latest dividend guidance issued in 2022 foresees a total annual dividend distribution of EUR 1.10 per share for 2024, subject to market conditions and to the approval of the Ordinary General Meeting of Shareholders.

As part of a new capital allocation framework, EVS proposes a new dividend policy for the years 2025-2027, fixing the annual dividend at EUR 1.20 per share for the next 3 years.This renewed base dividend policy foresees a growth of EUR 0.10 per share (or 9.1%) compared to the previous policy 2022-2024. This proposal is subject to approval by the general assembly, as well as to any changes in market conditions or company dynamics.

NOTE 14: RISKS AND UNCERTAINTIES

Investing in the stock of EVS involves risks and uncertainties. The risks and uncertainties relating to the current year 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).

In terms of new risks arising since the last annual report, we highlight the macro-economic environment, particulary the change of tone by the US Administration regarding international trade policy and the potential new tariffs imposed on foreign (including European) goods imported into the US territory. Although it is not yet defined if and how these potential tariffs would be implemented, nor to which product categories, EVS closely monitors the developments in this area and may pro-actively take actions to limit any potential impact thereof. We also reiterate the potential impacts following the war in Ukraine. The company continues to comply with the international sanctions in vigor.

NOTE 15: SUBSEQUENT EVENTS

There are no subsequent events that may have a material impact on the condensed financial statements of the Group.

Certification of responsible persons

Serge Van Herck, CEO*
Veerle De Wit, CFO*

Certify that, based on their knowledge,

a) the condensed consolidated financial statements, established in accordance with the IFRS accounting standards as adopted by the European Union, give a true and fair view of the assets, financial position and results of the EVS Group,

b) the press release presents the important events and a fair overview of the business development and the results of the EVS Group in the reporting period.

* acting on behalf of a bv

External Auditor

The condensed consolidated financial statements of EVS Broadcast SA for the year ending December 31, 2024 were authorized for issuance in accordance with a resolution of the Board of Directors on February 18, 2025. EY réviseurs d’Entreprises represented by Carlo-Sébastien d’Addario has confirmed that their audit procedures, which have been substantially completed, have not revealed any material adjustments which would have to be made to the accounting information included in this press release. The complete audit report related to the audit of the consolidated financial statements will be shown in 2024 annual report that will be published in April 2025.

Attachment

• Press release in PDF format