evs.com
Annual
Report
2021
WE ARE EVS
We are EVS
Content
We create return
on emotion
EVS is a European broadcast
technology company,
headquartered in Liège, Belgium,
with over 560 team members
working in 20-plus offices and
development centers all over the
world. Founded in 1994, EVS’s
early years were marked by the
pioneering work of the founding
team in tapeless television
technology and the launch of the
system, which rapidly became the
standard replay technology for all
broadcast sporting events across
the globe.
Customer success
Shortly after it was established,
EVS became a key player in the
industry, offering its reliable and
innovative technology and provi-
ding first-class support to cus-
tomers located in many parts of
the world.
Customer success is what
keeps us on our toes. We are
committed to helping our clients
grow as the industry evolves.
To deliver on this promise, we
continue to invest in the latest
technologies. Through our
pioneering work in IP, artificial
intelligence, HDR, the Cloud, etc.
we constantly remain ahead of
the curve, while ensuring that
our customers are empowered
with smart, reliable and scalable
solutions that produce the best
live stories today and tomorrow.
Who are we
Recognized globally as the
leader in live video technology
for broadcast and new media
productions, our passion and
purpose are to help our cus-
tomers craft compelling stories
that trigger the highest return
on emotion.
What do we
deliver
Our technology is used by
customers around the world to
deliver the most gripping live
sports images, buzzing enter-
tainment shows and breaking
news content to billions of
viewers every day, all over the
world – and in real time.
We are EVS 01
CEO and Chairman interview
02
Introducing EVS
06
Market trends
08
EVS Solutions
10
Key successes of 2021
12
Customer successes
16
Channel partner program
18
EVS transformation
20
EVS as a value company 22
Ed force 1
23
Sustainability report
24
Shareholders’ information
34
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATION
International
footprint
Founded in
1994
HQ in
Liège,
Belgium
564
full-time
equivalents
EOY 2021
30
nationalities
€137.6m
revenue
in 2021
€37.1m
EBIT 2021
Publicly traded
since
1998
Our values
We are customer-success orientated.
We value teamwork.
We are accountable.
We are passionate.
We aim for excellence.
We focus on innovation.
We are agile.
1 EVS ANNUAL REPORT 2021
Los Angeles
Development centers
Sales offices
Mexico
Beijing
Singapore
Hong-Kong
Moscow
London
Brussels
Wokingham
Toulouse
Munich
Amsterdam
Gilze
Darmstadt
Milan
Paris
Madrid
Liège
New-York
Dubai
Sydney
São Paulo
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
Solid foundations for
sustainable growth
A snapshot of the past,
a glimpse into the future
Q&A with Serge Van Herck, EVS CEO
EVS reported a positive 2021
review, with revenues achieving
near record results. What are
the reasons for that?
2021 was marked by a number of key inter
-
national sporting events, many of which
had been postponed from 2020 due to the
pandemic. This return of live sports, com-
bined with an increasing need for remote
production capabilities, prompted many
broadcasters and media companies to
accelerate their investments in new EVS
solutions.
I am pleased to see that our PLAYFoward
strategy, which we defined in early 2020,
is generating the anticipated growth in
both our customer segments. After a year
of major Covid slowdown in 2020, our
increased their investments in 2021. Many
of them are now accelerating the upgra-
ding of their existing EVS LiveCeption
infrastructure, taking advantage of our
with new cloud based on-demand services.
to rise year after year. Our MediaCeption
solution, which provides a state-of-the-art
Production Asset Management solution, is
increasingly gaining market share in large
studio environments.
Throughout the year, we saw several
strategic deployments of our LiveCeption,
2
EVS ANNUAL REPORT 2021
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
CEO & CHAIRMAN
INTERVIEW
MediaInfra and MediaCeption solutions for
high-quality replays and highlights, reliable
media infrastructures, and swift content
turnaround. Despite the challenging condi
-
tions linked to the ongoing pandemic, we
remained close to our customers at all
times, providing them with the support
they needed to achieve higher levels of
flexibility and agility for their productions,
and prepare for the new post-Covid reality.
Moreover, EVS is globally renowned for its
live replay technology, so it comes as no
replay system - which was launched in
a significant order intake ahead of the pre-
parations for the year’s big events.
Overall, I would say it is due in particular
to our agility, innovation and ongoing dedi-
cation to our customers’ success that we
were able to achieve near record results
in 2021 and I believe these same qualities
will fuel more growth for EVS as we move
forward.
What were EVS’ main
achievements in 2021?
Besides enjoying the commercial success
of our solutions being used for the produc-
tion of the biggest international sporting
events, we continued to add complemen-
tary value to our product portfolio and
expand our expertise into new areas.
I’m particularly satisfied with the strong and
steady opportunity growth of our MediaIn-
fra portfolio since the acquisition of Axon
in back in 2020. Just over a year later, in
June 2021, we successfully launched our
new MediaInfra Strada turnkey IP/SDI video
routing solution and added exciting new
functionalities to our Neuron and Cerebrum
product lines. These recent developments
have been instrumental in helping our cus-
tomers modernize their infrastructures and
are proof of the success of our growth
strategy. Recent examples include French
broadcaster Canal +, which performed a
major upgrade of its media IP infrastruc-
ture using our Cerebrum broadcast control
and monitoring solution, and a leading
Japanese broadcaster (and customer of
-
mented Neuron Compress to support their
JPEG XS encoding and decoding needs
and give them the proper foundations to
grow into full IP infrastructures.
The industry was also hugely receptive to
the launch of XtraMotion, our innovative
cloud-based service which is designed to
generate super slow-motion replays from
any camera, using our own artificial intel-
already won three industry awards and is
regularly used by customers such as Fox
Sports and NVP Italy to enhance the live
storytelling on their productions.
We were also proud to see our Xeebra
multi-camera review system successfully
completing FIFA’s Quality Programs for VOL
and VAR last year. The coveted certification
is a testament to the efforts made by our
teams to further improve the accuracy and
consistency of our video assistant referee
and virtual offside line technology.
Also worth highlighting are the recent
efforts we have been making to expand our
coverage of the market with an enhanced
channel partner program. Within just six
months, we were able to onboard nearly
30 strong channel partners, and we will be
welcoming more in the near future.
What will be the most important
growth drivers for EVS in 2022
and beyond?
2022 is set to be another great year for
international sports competitions and many
of our customers are looking to upgrade
their existing infrastructures with our
LiveCeption Signature solution so as to
increase the value and efficiency of their
productions for these events. As a matter
of fact, the central components of the solu-
-
ming the new standard in the industry for
the creation of high-quality live production,
replays and highlights, so we anticipate
further investments in this area.
As the industry continues its steady tran-
sition to more IP-based infrastructures,
our Mediainfra solutions are also likely to
gain further traction. For broadcasters who
are still operating in SDI but are looking
for a progressive and safe path to IP, our
MediaInfra Strada IP/SDI video routing
solution for instance will be a definite
game-changer.
Following the successful launch of Xtra-
Motion, we can also expect to see further
development of other hybrid and cloud
native solutions. Already deployed at a
number of major summer sports events
last year, MediaHub content sharing and
distribution platform is an extremely promi-
sing new service that offers the possibility
for right holders such as broadcasters to
“click and collect” content produced under
2 EVS ANNUAL REPORT 2021 3 EVS ANNUAL REPORT 2021
We have a clear strategy
and blueprint that set the
trajectory for significant
and sustainable growth, and
a healthy financial balance
sheet that will allow us to be
more resilient in the face of
unforeseen challenges.
SERGE VAN HERCK CEO
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
CEO & CHAIRMAN
INTERVIEW
the control of the right owner – usually the
host broadcaster of sport event or concert.
This is yet another example of a service
that has been optimized to run in the cloud,
reducing the need to produce or buy addi-
tional equipment.
Broadcast networks are relying more
and more on software technologies, and
there’s no going back. This brings many
advantages in terms of flexibility, but it
also widens the attack surface, exposing
vulnerabilities that cyber attackers are all
too willing to exploit. If the issue of cyber
security was relevant last year, it will be
even more so in the future. That’s why we
are continuing to invest in more compe-
tences in that area, ensuring that the level
of cyber security is being further increased
across all our products and solutions and
offering the advice our customers need to
become more cyber resilient.
And finally, above and beyond our activities
designed to bring new innovative solutions
and new areas of expertise to the indus-
try, we will continue to explore synergistic
acquisition opportunities to complement
our product portfolio.
What are the main challenges
that you see ahead?
As we accelerate our time to market, it will
be important for us to find the right talent
to support the growth we anticipate. Our
human resources team is doing an outs-
tanding job keeping our team members
motivated and engaged. Now the focus
is on increasing our efforts to accelerate
the recruiting process and secure the right
talent for tomorrow.
We also recognize the need to further
strengthen our operational readiness.
We’ve made great strides in this area, since
we are currently working on the implemen-
tation of a new ERP and ticketing system
that will allow us to manage our resources
more efficiently, as we continue to scale
up our business.
Last but not least, both the electronic
component shortage and rising inflation
are challenges that we are proactively
taking into account so that we can limit
their impact on our operations and finan-
cial results.
What corporate social
responsibility initiatives is EVS
putting in place to drive positive
change for its team members,
communities, and environment?
Corporate social responsibility is an increa-
singly important part of EVS’ operation.
We believe every company, every orga-
nization and every human being should
actively find new ways to minimize their
impact on the environment. And because
social challenges are just as important,
EVS’ caring culture is being developed to
support not only the environment, but also
our customers, our team members, and our
community.
Last year for example, we were deeply
saddened by the catastrophic floods that
impacted many regions of the world, inclu-
ding the valleys close to our HQ in Liège,
Belgium. EVS provided financial help for
the local communities, including schools,
and for some of our own team members
living in the affected area, to meet their
immediate needs and help them with their
rebuilding efforts.
However, we are convinced that we should
be even more pro-active in our approach in
the future. As the effects of climate change
accelerate, we are aware of the need to
increase our longer-term commitments to
the environment. Already accountable, our
learning organization is heading towards
an even more sustainable way of doing
business, always keeping in mind a picture
of the world we want our children to live in.
How do you see the future
ahead?
Our outlook for 2022 and beyond is cau-
tiously optimistic. We have a clear strategy
and blueprint that set the trajectory for
significant and sustainable growth, and a
healthy financial balance sheet that will
allow us to be more resilient in the face of
unforeseen challenges.
Moving forward, we will work on solidifying
our market-leadership position and capi-
talizing on growth opportunities. We will
continue to transform the live production
landscape for the better, helping our cus-
tomers to succeed by bringing more inno-
vative solutions and continuing to offer the
best service levels.
We are proud to say that we will continue
to create return on emotion for our cus-
tomers. We help our customers to create
emotions for billions of people every day,
throughout the world.
And as always, we will remain focused
on creating long-term value for you, our
shareholders.
We thank you for your interest in and sup-
port for our company.
SERGE VAN HERCK
CEO
4
EVS ANNUAL REPORT 2021
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
CEO & CHAIRMAN
INTERVIEW
Foreword by Johan Deschuyffeleer,
Chairman of the Board
Dear Shareholders,
At EVS, we constantly strive to grow our
company and create long-term value for
our shareholders. Even in 2020, an unpre-
cedented year marked by challenging
market conditions, we remained a profi-
table company, distributing dividends to all
our shareholders while many others were
suspending their payments as a safeguard
measure. In 2021, we confirmed our strong
financial position with the announcement of
near-record results. And now, as we enter
2022, we are focused on further increasing
our revenues and profitability by activa-
ting the growth phase of our PLAYForward
strategy. Thus, we will seek strategic rela-
tionships and other M&A opportunities that
will make an effective contribution to our
bottom line, all while ensuring that we
constantly track and validate the long-term
return on our investments. These initiatives
remain perfectly in line with our transpa-
rent and robust dividend policy, which is
balanced between steady growth of the
immediate return-on-investment for our
shareholders and investment in mid-term
dividend growth.
I am excited about the opportunities that lie
ahead for EVS, and I am confident we are
uniquely positioned to achieve sustainable
and profitable growth. I would like to thank
all the colleagues at EVS, who show their
commitment and passion to our company
and our customers every day, and who
help us deliver the strong financial results
you expect. And of course, I would like to
thank you, our shareholders, for the trust
you have placed in us. Thank you for being
part of the EVS adventure.
JOHAN DESCHUYFFELEER
CHAIRMAN OF THE BOARD
4 EVS ANNUAL REPORT 2021
In 2021, we confirmed our
strong financial position
with the announcement of
near-record results.
JOHAN DESCHUYFFELEER
CHAIRMAN
5 EVS ANNUAL REPORT 2021
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
CEO & CHAIRMAN
INTERVIEW
Introducing EVS
EVS as a leader in Live
Production…
Over the past 25 years, EVS has acquired the well-deser-
ved status of the top brand in Live TV Production.
For a Live TV Production, large numbers of cameras are
installed either in a studio or around a sports field or
concert stage. All the content from these cameras – many
gigabits per second of video, audio and data signals – has
to be processed in real time by production equipment and
the production staff.
EVS products not only record all the content - as a Video
Tape Recorder would do – but also provide the dedicated
hardware and software tools for the production staff –
working under the huge pressure of live productions
- to decide which image will be seen by the audience
and when, to manage the content and produce unique
effects to create the story and the related emotion for
the audience.
EVS hardware and software products are used during live
productions both to prepare the live production itself and
to build and run programs before and after a live event.
… far beyond slow-motion replay
during televised sporting events…
EVS is well known for its iconic XT server used for slow-mo-
tion replay during live televised sporting events. But this
is definitely not the whole story.
EVS has broadened the scope far beyond replay servers,
providing support for many live and non-live workflows
to ingest various kinds of content and playout in many
different circumstances. The acquisition of Axon in 2020
extended the solutions portfolio to cover the routing,
conversion, monitoring and control of all live video, audio
and data signals across all production equipment.
With audiences adopting new behaviors, the scope of
production and thus EVS workflows has been extended far
beyond television to encompass all kinds of digital media.
Even though sporting events are probably the most
demanding in terms of production as they are unscripted
images from every angle in just seconds, EVS products
are also increasingly used for news and entertainment
programs, outdoors or in studios.
6 EVS ANNUAL REPORT 2021
Tennis
Australia
CEO & CHAIRMAN
INTERVIEW
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
INTRODUCING
EVS
… based on strong foundations
EVS has established a reputation as a strong brand based
on five foundations. Since a position never lasts forever,
we have a duty to continue to make a difference on these
five foundations.
The EVS brand is strong, underpinned by the excellence
of its products, especially in live circumstances as des-
cribed above.
EVS has always designed products for premium shows,
naturally gathering communities of highly skilled opera-
tors who, in turn, are able to make a difference.
Listening to customers, and especially to these commu-
nities of operators and technical directors, has always
been essential for EVS to build practical innovations,
going the extra mile for the industry, sometimes faci-
litating the introduction of new formats, sometimes
simplifying and automating the tasks so as to produce
more with less.
EVS team members are known for their quality, res-
ponsiveness and knowledge of workflows. The standard
of support they provide and their dedication is reco-
gnized in the industry. Sometimes, EVS is even asked to
provide assistance so as to identify workarounds when
products from other vendors fail or the support provided
by other vendors is not fit for purpose. Thanks to EVS’s
understanding of the challenges of live productions,
our knowledge of the many possible workflows and the
flexibility of EVS products, EVS teams never hesitate to
provide the necessary support so that such productions
can take place in the best possible conditions.
Last but not least, the fifth foundation is about being a
sound, trusted and long-term business partner. Backed
up by strong profitability, EVS invests 50% of its human
resources in R&D to continuously modernize existing
products and to broaden the scope of the workflows
supported by developing new components and solu-
tions, organically or through partnerships and/or acqui-
sitions.
6 EVS ANNUAL REPORT 2021 7 EVS ANNUAL REPORT 2021
With audiences adopting
new behaviors, the scope
of production and thus
EVS workflows has been
extended far beyond
television to encompass all
kinds of digital media.
CEO & CHAIRMAN
INTERVIEW
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
INTRODUCING
EVS
Market trends
Hybrid deployment & new
business models moving forward
Covid-19 has been a definite accelerator for new ope-
rations and business models. Our customers have dis-
covered the possibility of using distributed live content
production models.
Even though 2021 saw a revival of more traditional prac-
tices, with more people and equipment at the venue than
during the 2020 lockdown periods, our customers are
willing to adopt hybrid deployment models, with part of
the equipment and teams on site, part operating from
another location and some equipment possibly being used
in the cloud.
In addition to this, our customers have discovered the
virtues of this hybrid approach by adding SAAS and on-de-
mand business models to the existing operating models.
At EVS, we have seen traction for our new XtraMotion
-
vice that creates additional frames for smoother extra
slow-motion replays produced by our LiveCeption solu-
tions. Since XtraMotion requires substantial computing
capacity which would hardly justify the immobilization of
HW capacities, cloud deployment is particularly suited
to provide resources for the exact production period.
Customers can spend a few “EVS Credits” to book the
resources they need and they can immediately benefit
from great XtraMotion effects within their productions.
At the same time, EVS introduced the MediaHub ser-
vice – a cloud-based content sharing and distribution
service that allows right holders to click and collect their
content of choice from the content produced under the
control of events right owners. MediaHub was extensively
and successfully used during some of the major sum-
mer sports events. It is now available to all customers
as a MediaHub-365 subscription. While the production
resources at the venue are only available during the
events, MediaHub-365 extends the availability of the
content as long as the right owner is interested in dis-
playing and selling it.
8 EVS ANNUAL REPORT 2021
The constant quest for more pixels
is apparently being tempered by
other values such as flexibility and
agility within the productions.
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
MARKET
TRENDS
Live-IP & Routing
The transition from SDI to Live-IP is also continuing, since
it supports the additional flexibility required by new pro-
duction methods. More and more OBVans are embracing
at least part of the infrastructure in IP and most large
modernization projects at Broadcast Centers are based
on an IP core.
Nevertheless, some customers don’t necessarily have the
budget to replace their full range of existing equipment
with IP-compatible equipment in one fell swoop, or they
are unwilling to take the risk. Most customers prefer to
move forward gradually and want to avoid a risky and
expensive “big bang” replacement approach.
In response, we created the EVS MediaInfra Strada rou-
ting solution which offers a smooth transition towards
IP. Thanks to the EVS MediaInfra Strada routing solution,
our customers acquire an IP core including EVS Neuron
Bridge to connect SDI legacy equipment, with the whole
system run by a specific version of the EVS Cerebrum
control system.
This approach enables customers to ensure a future-safe
investment while waiting for the amount of legacy equip-
ment in use to decrease as the investment cycle pro-
gresses. Thanks to the form of virtualization supported by
the EVS Neuron platform, which means that EVS Neuron
Bridge are no longer necessary, the same equipment can
be reused for other applications such as Compression,
Conversion to and from a multitude of formats, Audio
signal conversion, Protection of the live-IP environment
or as a multiviewer Mosaic generator.
This smooth evolution has attracted several customers
since the solution was first introduced. TVA Canada was
the first to deploy this option, followed by various others.
HDR confirmed as a proof that the
industry is now looking for other
values
Throughout 2021, we saw that HDR is gaining ground in
productions, and especially in sports and entertainment,
providing beautiful images with a minimal increase in the
bandwidth. 4K is also increasing, although less rapidly than
HDR, possibly because it also poses a greater challenge in
The constant quest for more pixels is apparently being
tempered by other values such as flexibility and agility
within the productions.
We have seen several Live Service Providers such as Game
Creek Video or AMP Visual TV continuing to enhance their
LiveCeption solutions by upgrading their installed base of
VIA, which is in such great demand.
As further proof of the underlying transformation of the
industry, EVS has also been selected by RTBF to re- and
co-invent the new and flexible production methods of
the future, improving productivity and supporting new
generations of programs.
spreading further
In the field of VAR, thanks to the development of the pro-
tocols proposed by IFAB for VAR in football, many smal-
ler federations have begun to engage with VAR and our
EVS Xeebra solution. We have extended our VAR product
portfolio by launching Xeebra Essential, which offers the
same reliability and simplicity of operation as Xeebra, to
organize VAR with a maximum of eight cameras.
8 EVS ANNUAL REPORT 2021 9 EVS ANNUAL REPORT 2021
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
MARKET
TRENDS
EVS Solutions
Hybrid deployment & new
business models moving forward
Through our PLAYForward strategy, EVS initiated a trans-
formation from product leader to solution leader. Since
2020, several solutions have been defined in three cate-
gories. New solutions were added or strengthened in 2021,
relying on both strategic partnerships and own technolo-
gical developments.
LiveCeption
Our LiveCeption solutions, which combine our state-
of-the-art production tools with the latest advances in
technology, are designed to enhance the visual narrative
of all our customers’ live productions, regardless of the
requirements or the budget.
In 2021 a number of Live Service Providers, including the
French company AMP Visual, accelerated the upgrade of
their EVS server infrastructure to leverage the full power
-
hin their replay workflows, in some cases specifically to
deal with remote production. The solution has also been
enhanced with the cloud-based XtraMotion service,
which won an IABM award, offered through an innovative
business model structured around on-demand consump-
tion of EVS Credits.
10 EVS ANNUAL REPORT 2021
New solutions were added or
strengthened in 2021, relying
on both strategic partnerships
and own technological
developments.
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
EVS
SOLUTIONS
MediaCeption
EVS’ MediaCeption solutions can be used to manage the
ingest of multiple live feeds, import files and Electronic
so that editorial teams can swiftly find and retrieve what
they are looking for, and play out content in studios or
publish it on digital platforms.
EVS won a number of major broadcast center moderniza-
tion contracts during 2021 while completing the deploy-
ment of those won in 2020. Thanks to the VIA platform and
MediaCeption solution, EVS is now considered a trusted
partner by broadcasters for their modernization projects.
The MediaCeption solution portfolio has also been
enhanced with EVS MediaHub, the new centralized
video content distribution solution that allows right hol-
ders’ production teams to instantly browse, review, select
and deliver content from multiple sites provided by host
broadcasters on behalf of right owners. Prior to 2021, EVS
MediaHub had traditionally been reserved for Big Events.
It is now available as an SAAS business model throughout
the year in a multi-tenant configuration.
MediaInfra
EVS’ MediaInfra solutions offer highly advanced broadcast
control, monitoring, conversion and real-time processing
for SDI, IP, and hybrid broadcast infrastructures.
EVS’ evolutive video routing solution, Strada, has been gai-
ning traction ever since it was announced in 2021. Thanks
to partnerships with industry-leading switch vendors, the
robust virtualized EVS Neuron platform and a specific ver-
sion of the EVS Cerebrum Control System, EVS won major
contracts in different parts of the world, including the
Americas, where Media Infra solutions were still unknown
two years ago, before the acquisition of Axon. Even in a
stand-alone environment, the flexibility of EVS Cerebrum
is now also appreciated in the USA as a means of confi-
guring, controlling and monitoring broadcast equipment
in OBVans and broadcast centers.
In 2022, EVS remains fully committed to the ongoing
improvement and development of new live production
solutions that help our customers to further increase the
quality of their live productions and reduce their total cost
of ownership.
10 EVS ANNUAL REPORT 2021 11 EVS ANNUAL REPORT 2021
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
MARKET
TRENDS
Key successes of 2021
KEY SUCCESSES
OF 2021
MediaHub Australia
upgrades to IP
Game Creek Video
completes first
phase of major HDR
upgrade
Game Creek Video, a leading provider of state-of-the-art
mobile production units for large-scale live events, has recently
completed the upgrade of one of its flagship HD production
units to full HDR capabilities based on EVS’s LiveCeption® and
MediaCeption® solutions.
Read more here:
https://evs.com/company/news/game-creek-video-completes-
first-phase-major-hdr-upgrade
EVS launches
Blackbird partnership
Blackbird is the world’s fastest, most powerful professional
cloud-native video editing and publishing platform, providing rapid
access to video content for the easy creation of clips, highlights
and long-form content to multiple devices and platforms.
Read more here:
https://evs.com/company/news/evs-launches-black
-
bird-partnership-deployment-international-sporting-events
“As a certified partner, Blackbird is helping EVS to expand its live
and near-live content management and distribution offering with
the integration of a flexible infrastructure and future-proof cloud-
based video editing that meets the challenging demands of the
world’s most prestigious sporting events.”
NICOLAS BOURDON CHIEF MARKETING OFFICER AT EVS
MediaHub Australia, a leading specialist in broadcast playout,
content delivery, data handling and archiving solutions, has selec
-
ted EVS’s Media Infrastructure solutions as the cornerstone of its
MediaHub Australia will be able to master multiple workflows,
offering total control and customization over complex setups
designed by the many broadcasters it works with.
Read more here:
https://evs.com/company/news/mediahub-australia-upgrades-
ip-evs
12 EVS ANNUAL REPORT 2021
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
KEY SUCCESSES
OF 2021
Read more here:
https://evs.com/company/news/gravity-me
-
dia-harnesses-power-evs-deliver-precision-live-video-officiation
offering, we’re empowering officials to make the right call, keep
sports safe and ultimately deliver a premium audience experience
for our broadcast clients.”
BEN MADGWICK DIRECTOR MEDIA SERVICES & FACILITIES
EVS introduces its
MediaInfra Strada
SDI/IP routing
solution
EVS has announced the introduction of MediaInfra Strada, a
turnkey solution which combines SDI and IP routing capabilities
in a single, easy-to-deploy system based on EVS’s field-proven
Cerebrum and Neuron product lines. In November the same year,
the MediaInfra Strada turnkey routing solution won a TV Techno
-
logy NAB Best in Market 2021 Award. The Best in Market Awards
and excellence in new, recently introduced and pending products
and services for professional TV/video, radio/audio and AV pro
-
ducts and solutions.
Read more here:
https://evs.com/company/news/evs-introduces-its-mediain
-
fra-strada-sdiip-routing-solution
Gravity Media
harnesses the power
of EVS to deliver
precision live video
officiation
Renowned worldwide for supplying high-quality broadcast
equipment, production facilities and services, Gravity Media
supports the biggest names in broadcasting and sports.
12 EVS ANNUAL REPORT 2021 13 EVS ANNUAL REPORT 2021
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
KEY SUCCESSES
OF 2021
AMP visual TV
completes major
upgrade of its OB
truck fleet and studio
facilities with VIA
technology
AMP VISUAL TV, the leading broadcast service provider
headquartered in France, has completed a major upgrade of
its live production infrastructure with the latest LiveCeption
Signature solution from EVS. As part of the EVS solution, a dozen
create instant replays and highlights of the highest production
standard.
Read more here:
https://evs.com/company/news/amp-visual-tv-completes-major-
upgrade-its-ob-truck-fleet-and-studio-facilities-evs-via-techno
-
logy
Broadcast Academy
and EVS launch
unique mentorship
program for women
in the sports
broadcasting industry
Read more here:
https://evs.com/broadcast-academy-and-evs-launch-unique-
mentorship-programme-women-sports-broadcasting-industry
“As a leader in live sports broadcast and media technology, EVS
is committed to promoting gender equality and diversity in the
industry and we’re always proud to support the commitments
of the Broadcast Academy in this field. This new mentorship
program offers an opportunity for women to develop their skills
and accelerate their career thanks to the support of the best TV
production talents and technology in the world.”
NICOLAS BOURDON CHIEF MARKETING OFFICER AT EVS
14 EVS ANNUAL REPORT 2021
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
KEY SUCCESSES
OF 2021
Having already won
two awards in 2021,
XtraMotion received
recognition from our
industry
Market 2021 Award and 2021
Launched in May 2021, XtraMotion is a cloud based software
application designed to enable the transformation of footage from
any camera angle on a production into high-speed video using
frame interpolation. As a result, productions can easily increase
their super slow-motion coverage without having to deploy
additional hardware on site.
Read more here:
https://evs.com/company/news/xtramotion-joins-exclusive-list-
winners-years-2021-iabm-bam-awards
Photron deploys
Neuron Compress
to facilitate IP
processing for
leading Japanese
broadcast network
Read more here:
https://evs.com/company/news/photron-deploys-neuron-com
-
press-facilitate-ip-processing-leading-japanese-broad-
cast-network
FIFA grants EVS’s
Xeebra Virtual Offside
Line and Video
Assistant Referee
certification
EVS’s Xeebra multi-camera review system helps match
officials make more confident decisions by allowing them
to swiftly review a given action from multiple angles that
are displayed in complete synchronization. With offside
situations accounting for many VAR calls in soccer, the
system uses machine learning technology to automatically
calibrate the field of play and overlay a virtual offside line on
the broadcast image in seconds.
Read more here:
https://evs.com/company/news/fifa-grants-evs-xeebra-vol-and-
var-certifications
14 EVS ANNUAL REPORT 2021 15 EVS ANNUAL REPORT 2021
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
Customer successes
Groupe TVA selected MediaInfra
Strada to replace its core SDI
router and enable a smooth
transition path to IP
Groupe TVA is a Canadian communications company,
and one of the largest private French language television
networks in the region. When the company’s central SDI
router was nearing its end of life, they needed to find a
solution to safeguard their critical broadcast operations.
As the main input path for the distribution, processing, and
conversion of all signals across Groupe TVA’s 15 associated
-
plete replacement. The task ahead was challenging, but
it was also the opportunity for Groupe TVA to modernize
their infrastructure to better address the changing requi-
rements in live production. However, while the company
understood the growing limitations of SDI, they weren’t
quite ready to face the complexities linked to a transition
to full-IP. For minimum disruption to their operations, they
looked for a solution that would help them bridge the gap
between both worlds.
In partnership with system integrator Applied Electronics,
Groupe TVA chose to install EVS’ new MediaInfra Strada
video routing solution. MediaInfra Strada is designed to
function like an SDI router, but provides all the advantages
in terms of agility and scalability since it is built on an IP
core.
It combines the capabilities of EVS’ Cerebrum (broadcast
video router logics through customizable user interfaces,
with flexible IP and SDI I/O for uncompressed real-time
video and audio. It also includes Arista’s Ethernet switches
with 100Gb/s ports for guaranteed high-performance IP
network operations.
One key decision factor was the solution’s ease of use.
Deployable in any infrastructure environment, MediaInfra
Strada abstracts away the complexities of the underlying
IP network, offering control and monitoring that is familiar
to TVA’s engineering and operational teams.
High scalability was another strong requirement. MediaIn-
fra Strada ensures Groupe TVA can migrate other SDI rou-
ters within their facility over time towards a full IP network
at their own pace, with the confidence in knowing their
infrastructure is built on best in class, future-ready video
routing technology.
AMP VISUAL TV completed major
upgrade of its OB truck fleet and
studio facilities with LiveCeption
Signature solution
In the search for higher flexibility and advanced production
capabilities, leading French broadcast service provider
AMP VISUAL TV performed an upgrade of its infrastructure
using EVS’ LiveCeption Signature premium live production
and replay solution.
wide variety of premium live sports and entertainment
shows.
AMP VISUAL TV turned to EVS above all for the reliability
and efficiency of its market-leading replay technology.
Francois Valadoux, Executive Vice President and CTO at
16 EVS ANNUAL REPORT 2021
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
CUSTOMER
SUCCESSES
the marketplace for high-profile events and as a result,
replay systems are also fast becoming the new standard
for primetime sports productions, so it was essential for
us to invest in these latest technologies”.
Built on EVS’ innovative VIA platform of modular services
and workflow engines, the new solution provides AMP
VISUAL TV with the highest level of flexibility and scala-
bility to respond to any future requirement, including the
possibility to roll out workflows for remote production
when needed.
-
geable SDI/IP connectivity and support for all the latest
formats and codecs - can conveniently be used across
AMP’s entire fleet of OBs as well as its numerous studios,
providing the same reliable EVS solution for all sports and
entertainment productions. And since they are highly
robust and easily deployable, AMP can easily move the
servers around from one environment to another upon
customer demand, without having to worry about damage
or reconfiguration issues.
to create replays and highlights in the most efficient way,
benefitting from advanced functionalities and a rich fea-
ture set all presented in a familiar layout for instant usa-
bility.
Francois Valadoux concluded: “Our customers naturally
expect us to provide them with the best equipment out
there to handle their major TV broadcasts and knowing
their productions are run with EVS’ no-fail technology and
best in class solutions gives us peace of mind.”
NBC Sports utilized EVS’
LiveCeption Signature Solution for
its production of Olympic Winter
Games
Sport media company NBC Sports selected EVS’ Live-
Ception Signature solution for its production of the XXIV
Olympic Winter Games which took place from February 2
to February 20, 2022. NBCUniversal provided coverage
hours of coverage across NBC, Peacock, USA Network,
CNBC, NBC Olympics.com and the NBC Sports app.
The LiveCeption Signature solution, which was deployed
across the International Broadcast Centers in Beijing and
Stamford, and other venues, is comprised of EVS’ flagship
provides the power, scale and versatility needed to deliver the
high standards of performance of NBC Olympics’ productions.
“Our continued partnership with EVS will heavily rely on
1080p and HDR production through the Winter Olympics,
building on successes from Tokyo,” said Darryl Jefferson,
VP of Post Operations and Digital Workflow, NBC Sports
& Olympics. “The dependable infrastructure of the provi-
der allows us to seamlessly work in multiple formats and
standards, all in real time.”
“We are proud of NBC Sports’ continued trust in EVS and
our technology,” said Quentin Grutman, EVS Chief Cus-
tomer Officer. “LiveCeption Signature has been designed
at its core to meet even the most demanding live produc-
tion requirements, and we are confident this solution will
enhance NBC Sports’ visual narrative of the event.”
16 EVS ANNUAL REPORT 2021 17 EVS ANNUAL REPORT 2021
Our customers naturally expect
us to provide them with the best
equipment out there to handle their
major TV broadcasts and knowing their
productions are run with EVS’ no-fail
technology and best in class solutions
gives us peace of mind.
FRANCOIS VALADOUX
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
CUSTOMER
SUCCESSES
A new channel
partner program
18 EVS ANNUAL REPORT 2021
In the context of our PLAYForward strategy
exercise, we decided to strengthen our
relationship with channel partners to support
our growth ambitions. 2021 saw the introduction
of our new EVS Channel Partner Program to
the market. As a result, several existing and
new channel partners were onboarded and the
partnerships developed have already generated
results, with some deals that would not have been
signed without the existence of the program.
The program has been designed with long-
term loyalty in mind, targeting a triple-win for
the customers of our channel partners, the
development of our channel partners themselves
and the growth of EVS in unchartered regional,
market segment and solution territories.
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
CHANNEL PARTNER
PROGRAM
A new channel
partner program
18 EVS ANNUAL REPORT 2021 19 EVS ANNUAL REPORT 2021
Personalized
The program is personalized to suit the different profiles
of channel partners: “Select”, “Premier” and “Elite”. Each
level brings a series of benefits and requirements that
accelerate the development of a sustainable relationship
between EVS and every channel partner. The program
also offers a comprehensive certification program for the
partner’s staff dedicated to the different EVS Products
and Solutions that enables the partners to best serve
our customers.
Thanks to this personalized approach, several EVS Cere-
brum projects have been awarded to channel partners
in North America and EMEA, enabling faster deployment
and localization.
Collaborative
Within the scope of the program, channel partners now
have exclusive access to more and better documentation
so as to increase their competencies to sell EVS products
and solutions. The EVS Solution Architect team can assist
our channel partners with the definition of specific solu-
tions co-developed in line with a specific target segment
or a specific project.
It’s about co-selling, co-creating, co-delivering, and
co-supporting, addressing the challenges facing our cus-
tomers throughout the world together.
For instance, our long-time partner Draco video success-
fully deployed a LiveCeption Pure solution for its customer
“United Studios of Israel” to enable the live production of
the new Israeli Premier League season.
Another system integrator in North America was the first
to install the first MediaInfra Strada scalable routing solu-
tion and to help a major customer to switch their core
signal routing from SDI to full IP technologies.
Similarly, football federations in the CIS countries are now
to experience the same accuracy and speed as those
officiating in better-known football federations.
Empowering
The new channel partner program also covers partner
training as well as product and services certification.
For example, the open Cerebrum control system is now
mastered by many broadcast professionals and can be
installed and configured by a network of EVS certified
channel partners in the different regions of the world.
During 2021, we saw a major European system integra-
tor deploying Cerebrum in various broadcast centers.
Cerebrum is also empowering a major broadcast center
in China thanks to the knowledge acquired by a highly
skilled local system integrator.
Channel partners are now empowered by EVS from the
consultancy stage all the way to the deployment and local
support of the end users. EVS’ reputation as market leader
in live production enables every channel partner to be
more successful in their respective markets.
Only when we join forces with partners can we deliver
on our promise to support our customers and implement
smart, future-proofed, optimized broadcast solutions that
provide the most gripping live sports images, buzzing
entertainment shows and breaking news content for bil-
lions of viewers every day.
It’s about co-selling,
co-creating, co-delivering,
and co-supporting,
addressing the challenges
facing our customers
throughout the world
together.
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
CHANNEL PARTNER
PROGRAM
EVS journey in a transforming
broadcast industry
As of 2015, EVS set in
motion an evolution to
prepare for and cope
with the various levels
of transformation
currently underway:
changing audience
behaviors, adoption of
IP technologies and IT
equipment and practices,
more flexibility and higher
productivity required
during production, new
video formats for input
and output.
Product market leader
Solution
market leader
In premium market
In different
market tiers
Selling in CAPEX only
Selling in OPEX &
CAPEX
SDI replay centric systems
IP TCO optimized
media solutions
On EVS HW
As SW on COTS,
Cloud & EVS HW
For on-prem live
production
For live anywhere
operation
Mainly in sports
In sports, news &
entertainment
Successful Axon integration
X00s Workflows certified with 3rd-party tech patners
Portfolio branded in terms of solutions
smaller OBVans
New channel partner program ready
Longer SLA subscriptions
Launching SAAS subscriptions as XtraMotion
Developpment of Media infrastructure portfolio
More and more AI in the solutions
Pure SW
XtraMotion in the cloud
remote production
XtraMotion as a new form of hybrid workflow
More & more transverse broadcast center modernization
contracts
From a 2015 company... ...to a 2025 group
20 EVS ANNUAL REPORT 2021
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
EVS
TRANSFORMATION
Thanks to the PLAYForward strategy exercise undertaken
in late 2019, the various developments were crystallized
in seven dimensions. And today EVS tracks the different
actions taken and the progress made through these seven
dimensions.
For the last two decades, EVS has been a product leader
for live production replay servers, introducing more and
more products into the production workflows around the
server. The objective is to become a leading solution ven-
dor, broadening the scope of our offerings. In the last two
years, the whole portfolio has been reshaped around Live-
Ception, MediaCeption and Media Infrastructure solutions.
In parallel, hundreds of workflows have been certified with
various technology partners to provide added value for our
customers based on pre-integrated solutions, de-risking
and accelerating project deployments.
EVS is a premium brand, delivering superior products that
focus on comprehensive workflows and unmatched relia-
bility, responding in full to the requirements of high-end
productions. On the other hand, we are seeing an increase
in productions with less exacting requirements. We have
therefore created new product ranges to meet the new
needs of some of our customers and address the needs
of new customers that were previously unable to afford
– or Xeebra Essential, EVS proposes solutions that offer
the same level of reliability and quality of experience in
terms of operation but with lower capability to scale. At
the same time, a new Channel Partner program has been
developed to transform our relationship with system inte-
grators and resellers from a more opportunistic approach
towards a sustainable win-win relationship that rewards
mutual loyalty.
In the last five years, we have observed an increased
appetite among our customers for new business models.
Today, the vast majority of our product portfolio can be
sold as both perpetual licenses and yearly subscriptions.
In 2021, EVS launched the XtraMotion cloud based ser-
vice based on an “on-demand” business model paid for
using “EVS Credits” to focus on speed of activation and
seamless service usage. MediaHub – hitherto largely used
for major events to distribute content from right owners
to the many right holders - is also now offered through
a SAAS business model with a MediaHub-365 version.
Thanks to the redefinition and improvement of our Service
Level Agreement offering in 2019, we are also seeing a
greater take-up, especially in terms of the duration of the
subscriptions.
With the acquisition of Axon in May 2020, EVS signifi-
cantly extended the solution portfolio now covering Media
Infrastructure. With “replay centric and ingest/playout
workflows”, EVS was limited in terms of relevance for some
customers. All customers have Media Infrastructure needs.
This acquisition has therefore increased the target market,
not only as regards the scope of the solution but also as
regards the potential customer base. This transforma-
tion is also leveraging the transition to IP, especially with
the recent launch of the EVS MediaInfra Strada routing
solution, which is gaining traction worldwide, including in
North America where Axon was previously not present.
Although over 90% of the EVS R&D team now works on
SW, EVS is still sometimes considered to be a HW com-
pany. Today, after a major renovation of the underlying
platform and technologies, most of our product portfolio
is available as SW that can be deployed on a third-party
infrastructure. Nevertheless, most customers still prefer to
deploy on EVS dedicated HW that is optimized for broad-
cast workflows and reliability.
In 2015, nearly all premium productions took place “on-pre-
mises”, at the venues. Today, accelerated by Covid, EVS
solutions cope with “live anywhere production” thanks to
demonstrates the power of hybrid workflows, with part
of the workflow undertaken in the public cloud and part
“on-premises”, while the whole can be fully controlled
remotely.
EVS is well known in the sports sector, although our pro-
ducts have also been used for news and entertainment
workflows from the very beginning. With the willingness of
our customers to modernize their platforms by adopting a
centralized approach for their various kinds of production,
EVS wants to broaden the scope of its range to leverage
the new production methods and offer new flexible pro-
duction tools for diverse types of programs.
This overall transformation will be implemented thanks to
organic growth, by developing new tools and applications
and by acquiring companies that offer complementary
products, as was successfully done with the Axon acqui-
sition.
20 EVS ANNUAL REPORT 2021 21 EVS ANNUAL REPORT 2021
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
EVS
TRANSFORMATION
EVS as a
value
company
EVS is a strong brand known
across the world for its technology
leadership and its reliability in
providing live video technology
for broadcast and new media
productions. Our passion and
purpose are to help our customers
craft compelling stories that trigger
the highest return on emotions.
As a value company, we consider shareholders to be key
stakeholders and strive for a performance that constantly
delivers a return on investment. With a transparent and
robust dividend policy, we want to build lasting value for
our shareholders. Even in 2020, despite very challenging
market conditions, we remained profitable and managed to
deliver a dividend for our shareholders, while many other
companies were ruling out any such prospects.
Since the PLAYForward strategy was launched in 2020,
EVS has made steady and measurable progress by ratio-
nalizing the portfolio and expanding the company’s foot-
print in the market through solutions and the acquisition
of Axon. As a result, we have significantly enhanced our
capacity to deliver strong operational performance.
As part of the strategic roadmap, EVS is now launching
the “switch to growth” mode in 2022.
Leveraging the opportunities linked to the ongoing moder
-
nization of broadcast centers and the traction of our solu-
tions in both EVS’ traditional segment and the new area
of Media Infrastructure addressed thanks to acquisition
of Axon in 2020, we intend to increase our revenues and
profits over the coming years.
In addition to our organic growth ambitions, we also aim to
continue to implement our M&A strategy so as to broaden
the scope of our offerings. The first objective here is to
achieve even greater market relevance and the second,
obviously, is to make a net contribution to our bottom line.
Our dividend policy is thus balanced between steady
growth of the immediate return-on-investment for our
shareholders and investment in mid-term dividend growth.
The vast majority of our products and solutions are avai-
lable with various business models, including subscrip-
the appetite of some customers for such business models,
we don’t expect any significant impact on our revenues
and profitability in the next year as recognized revenues
are spread over several years. On the contrary, we consi-
der these new models more as an opportunity for gene-
rating additional revenues.
Also central to our strategy is our focus on corporate
sustainability. We have a long-term commitment to the
environment, our team members and the communities in
which we operate. We constantly practice and demons-
trate this commitment through various initiatives that
create an impact for the wider world.
Why invest in EVS?
Strong leadership position in selected markets
Premium reputation based on the reliability of its
products and services
Sound financial results with a strong balance sheet
(net cash position)
Growing installed base with strong customer loyalty
Gradual adoption of new business models (software
and services)
Strong corporate sustainability ambition, fully
embedded in our corporate strategy roadmap
Consistent dividend policy
22 EVS ANNUAL REPORT 2021
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
ED
FORCE 1
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
EVS AS
A VALUE COMPANY
Ed Force 1
to the EVS corporate event team
which was created in 2018.
The group is made up of EVS team members located at
EVS Headquarters. Local EDF1 representatives in each
EVS office around the world also organize internal events
in their respective regions.
EVS sees many advantages to this approach. Events like
these enable our company to improve the satisfaction
level of our team members, which increases efficiency.
They are also a great way to help team members get to
know each other.
EVS cares about its team members and tries to offer them
the greatest place to work ever.
Despite the Covid measures around the world in 2021, Ed
Force 1 was able to organize various internal celebration
events including:
The broadcasting of a football match at EVS HQ
A back-to-school breakfast in each office worldwide
to celebrate our children’s first day back at school in
September
The first edition of EVS Ladies Night at EVS Headquar-
ters
EVS team dinners all over the world
A Saint-Nicholas drive-in so that our children could pick
up their presents
A traditional Christmas Market.
And there are many more to come in 2022.
Even though we work intensively to ensure the constant
development of the company, the human factor remains a
top priority. Internal events help EVS and its team members
to reconnect and celebrate major achievements.
One of the many ways to improve the sense of belonging
to the company and the well-being of team members is
by holding internal celebration events. Such events are
not only important for creating internal employer branding
but also for improving the effectiveness of the team and
the company as a whole.
22 EVS ANNUAL REPORT 2021 23 EVS ANNUAL REPORT 2021
Ed Force 1 events
are now part of
EVS’s DNA.
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
SUSTAINABILITY
REPORT
SHAREHOLDERS’
INFORMATIONWE ARE EVS
ED
FORCE 1
Our vision of sustainability
About this Report
Reporting Period
Report published in 2022.
This report covers the year 2021 and includes all entities
worldwide.
This sustainability report describes why and how we
address and implement sustainability at EVS. The full
report can be found on our website www.evs.com.
Together with the Leadership Team and the members
of the board, we are focused on making sure that EVS
remains a strong, profitable and sustainable company for
the years ahead.
Although sustainability and its components, such as taking
care of our environment and the ecosystem around us,
have always been part of EVS’ culture and DNA in an intan-
gible way, in 2021 we started to think about sustainability
as a real mission and an important part of our strategy.
This sustainability report clearly sets out our vision.
24 EVS ANNUAL REPORT 2021
Participating in the building of a new
responsible world also means caring
about the people who are part of this
world. In this regard, we continue to
increase our efforts and initiatives
dedicated to helping the communities
in which we live and breathe.
Sustainability is not what we should do.
Sustainability is what we need to be.
SERGE VAN HERCK CEO
Sustainability is not a choice anymore. It’s
not a buzz word anymore either. It’s the
reality all company should engage if we
want to be part of the future. Becoming
the number one in our live video industry
will go through our responsibility towards
the world.
DOUNIA CZORNIAK
ORGANIZATIONAL CAPABILITY MANAGER
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SHAREHOLDERS’
INFORMATIONWE ARE EVS
SUSTAINABILITY
REPORT
Our sustainability
strategy
In 2021, we created an EVS Sustainability Team. The role
of this team is to monitor the progress and implementation
of the sustainability strategy and report on this.
The work carried out by the team led in particular to the
definition of the EVS materiality matrix.
STAKEHOLDERS PRIORITY
INTERNAL BUSINESS PRIORITY
HIGH
HIGH
MEDIUM
MEDIUM
LOW
LOW
12
14
15
1
2
3
4
13
10
7
6
8
9
11
5
24 EVS ANNUAL REPORT 2021 25 EVS ANNUAL REPORT 2021
Integrating ESG standards
is not only the right thing
to do, this also brings EVS
business and activities to
the next level.
NICOLAS BAYERS
HEAD OF LEGAL
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SHAREHOLDERS’
INFORMATIONWE ARE EVS
SUSTAINABILITY
REPORT
Environment
1. Energy requirements of
EVS products & solutions
2. Recycled input material’s
used
3. Sustainable sourcing of
materials
4. Climate changes and major
incidents
Social
5. Well-being of Team
Members
6. Diversity & Inclusion
7. Local social contribution
8. Talent management
9. Attraction and retention of
talents
10. Anti-discrimination
11. Customer Experience
Governance
12. Suppliers ESG practices
13. Cyber Security
14. Local suppliers
15. Sustainable Supply Chain
High importance for
external stakeholders and
for EVS business
Medium importance for
external stakeholders and
for EVS business
Low importance for
external stakeholders and
for EVS business
26 EVS ANNUAL REPORT 2021
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SHAREHOLDERS’
INFORMATIONWE ARE EVS
SUSTAINABILITY
REPORT
Environmental matters
Sustainable sourcing of materials
Environmentally and socially responsible sourcing of
materials used by EVS, including efforts to find local
suppliers to limit environmental impact.
In 2021, we continued to reuse more of our packaging
foam and we recycled our electronic waste. Not only is this
a best practice regarding the use of sustainable materials,
but it also leverages a reduction in waste streams.
EVS does not yet proactively analyze whether suppliers
or customers may have a potentially significant negative
environmental impact. This is a supply chain network risk
that we have identified and will address in the future. We
intend to cover all the stakeholders related to our products
and services in every location. We also plan to monitor the
materials we use by weight or volume every year.
Energy requirements
of EVS solutions
Type of energy and the quantity of energy required to
use EVS products and solutions.
EVS is developing products and solutions to help the
broadcast industry to reduce its carbon footprint in various
ways:
By reducing the need for TV production staff to travel
thanks to “remote production” support (for example,
design, efficient virtualization techniques, the adop-
tion of auto-scaling architectures and the design of
By improving energy efficiency both through auto-sca-
ling in cloud/datacenters and within EVS-designed HW
EVS R&D works constantly to contribute to these three
objectives and we will continue to further develop appro-
priate products and solutions.
The best energy is
the one that is not
consumed.
26 EVS ANNUAL REPORT 2021 27 EVS ANNUAL REPORT 2021
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SHAREHOLDERS’
INFORMATIONWE ARE EVS
SUSTAINABILITY
REPORT
Energy consumption within EVS
EVS headquarters, located in the forest surroundings of
the Liege Science Park, include office space and produc-
tion rooms covering 23,000m².
This all-glass building allows team members to enjoy plea-
sant natural light and the green setting.
The project designers also considered all the sustainability
aspects of a new construction, from both the technical
and the environmental point of view.
Some targeted actions helped us to reduce our electricity
is stable. We do not use any fossil fuels.
In addition, we constantly examine ways of reducing our
electricity consumption in our offices and development
centers.
Thanks to our new Solar Panel installation in our HQ we
reached our ambition to self-produce 10% of our energy
ourselves.
All our energy contracts are being renegotiated so that
EVS can opt for green energy. This is already the case in
Climate change and
EVS carbon footprint
We have yet to determine our carbon footprint. We plan
to launch this assessment in 2002 with a view to establi-
shing clear KPIs to define our goals and ambitions moving
forward.
We have a clear goal to decrease the CO
2
emissions of
company cars and have already taken measures. In 2021,
our fleet did not include any electric cars, despite the
opportunity given to all team members in Belgium. Howe-
ver, eight cars have already been ordered for 2022. These
represent 2% of our fleet. We aim for at least 5% of the
fleet to be electric by the end of 2022 and 100% in 2026.
like to purchase our green
energy locally, drawing on that
produced in the fields behind
our headquarters.
determine our total carbon
footprint!
Waste management
EVS pays attention to waste management. This implies
strict sorting of our waste. The quantity of waste produced
per year has been stable since 2019. Electronics account
for 26% of our waste.
Packaging currently plays a significant role in the overall
emissions of greenhouse gases and waste production. We
aim to reduce EVS’ impact by substituting paper equiva-
lents for Styrofoam chips and plastic tape, replacing some
of our cardboard boxes with FSC-labelled alternatives,
and switching from plastic boxes to cardboard packing.
28 EVS ANNUAL REPORT 2021
At EVS we don’t talk
about Employees or
People. We are all
EVS Team Members.
Voluntary turnover
2019 2020 2021 2019 2020 2021
Voluntary turnover
(employed in the last three
years)
9%
7%7%
6%
8%
7%
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SHAREHOLDERS’
INFORMATIONWE ARE EVS
SUSTAINABILITY
REPORT
EVS team members matter
Attract, keep and develop talents
This is the part of talent management that aims to attract
and keep the best individuals as team members. Policies
implemented to attract, retain, boost team members in
order to have the right person in the right place in the
company.
Over the years, EVS has developed a range of strategies to
attract and retain talents. This strategy aims to reinforces
a sense of belonging among our team members.
Attrition rate
Over the past few years, the voluntary turnover rate has
remained more or less stable despite the relatively young
At EVS, we have a strong on-boarding process. In addition,
we monitor the level of engagement of our team members,
particularly newcomers, closely and regularly (by means of
Training & development
We monitor performance and train our team members,
upgrading their capabilities, skills and competencies in
line with the strategic needs of the organization. By doing
so, we ensure the personal development and fulfilment
of each individual. Our talent management programs help
identify the strengths and areas of improvement of our
team members, but also their wishes for their future in the
company. A tailored development plan is then designed
to support them.
Working environment
EVS encourages a more active lifestyle and healthier rou-
tines in the workplace. We provide a stimulating work
environment for our talents so that they can collaborate
effectively to achieve our common goals in a sustainable
and ethical manner. We have also continued homeworking,
which offers our team members a better work-life balance
and at the same time reduces the carbon footprint linked
to travel.
28 EVS ANNUAL REPORT 2021 29 EVS ANNUAL REPORT 2021
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SHAREHOLDERS’
INFORMATIONWE ARE EVS
SUSTAINABILITY
REPORT
Our team members are our main asset. They are the
source of innovation that EVS uses to develop solutions,
offer these solutions to customers throughout the world,
install them and provide customers with the necessary
training and maintenance. The EVS Leadership Team the-
refore pays special attention to providing team members
with a working environment based on personal develop-
ment and respect for the individual. This includes, among
other things:
A caring culture for all team members.
A learning organization and continuous development.
A broad range of activities. We organize company and
departmental events and we also enjoy walking and
running together in the neighborhood during lunch time,
for example.
Remuneration and benefits
Even though we believe that team members’ engagement
does not come from financial rewards alone, but also from
a purpose-driven job, we know that remuneration and
benefits can be an important criterion to attract and retain
talents.
We therefore offer:
A competitive global remuneration package.
Other benefits. EVS offers its team members various
benefits in addition to their global remuneration.
Diversity & Inclusion
We are committed to providing a positive work environ-
ment where our team members are treated fairly, with
respect and without any discrimination.
Diversity and inclusion are key to discovering talents,
having the right team member in the right place in the
organization and ultimately achieving excellence. Our team
members are welcomed regardless of their cultural back-
ground, gender, mother tongue, age, etc. We have zero
tolerance for racism and discrimination in general. Respect
is one of our essential values. Moreover, all too often,
our industry is seen as a masculine industry. This is now
changing. We promote diversity in our recruitment process
which is open to everyone. In addition, we use English as
the company language to avoid favoritism and we offer our
team members several kinds of training courses with one
goal in mind: progression. Everyone at EVS who has the
competence, talents and willingness to grow can progress.
Hidden gems are to be found
everywhere. With this in mind, in 2021,
we collaborated with Passwerk
Passwerk is a company that puts
forward consultants with an autism
spectrum profile to test software. We
will continue to work with them in 2022.
Master Your Energy
Being able to manage your energy is becoming increa-
singly important. This is why we launched MASTER YOUR
-
tion, activation exercises, tools and reflection moments
with external coaches and experts from “Energy Lab” and
“Better Minds at Work”. In line with our CARING Employer
strategy, this initiative is designed to help our team
members work on their personal energy in order to build
and sustain a healthy high-performance culture for them
and for EVS.
Put briefly, ‘Master Your Energy’ is a journey lasting about
five or six months that focuses on physical, mental, and
emotional energy.
In a first wave, 50 team members worldwide will be able
to join the journey.
30 EVS ANNUAL REPORT 2021
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SHAREHOLDERS’
INFORMATIONWE ARE EVS
SUSTAINABILITY
REPORT
Social matters
1. https://www.coderdojobelgium.be
Local social contribution
The EVS Leadership Team, with the backing of the Board
of Directors, has put in place a sponsorship program in
which each EVS team member has the possibility of sup-
porting a local program, school or sports club with up
to EUR 100. The purpose of this program is to provide
financial assistance for causes that matter the most to our
team members and help the local community. After the
flash floods in July 2021, the Leadership Team decided to
leverage this program to support local projects and orga-
nizations to help victims affected by this natural disaster.
EVS team members could request up to EUR 200 (rather
As a result, in 2021, out of the 214 requests received, 93
concerned associations that help victims of natural disas-
ters. A total of EUR 18,600 was transferred to organizations
supporting relief programs in four countries. In total, EVS
provided up to EUR 30,800 to assist local projects across
the globe (mostly in Belgium but also in the Netherlands,
In addition, the EVS IT Team has offered 85 computers to
schools which were impacted during the flooding. We have
also offered smartphones to the Red Cross and received
a certificate of social impact.
Time is one of the best gifts that can be offered. This is
why EVS supports Coderdojo
1
, a non-profit association
that assists volunteers who teach programming skills
team members to give some of their time and provide
funds because we know how important it is to invest in
the talents of tomorrow. In 2021, we donated EUR 20,000
to this organization. We hope one of these children may
become a future team member!
BOARD MEMBERS
33%
WOMEN
43%
WOMEN
67%
MEN
57%
MEN
30 EVS ANNUAL REPORT 2021 31 EVS ANNUAL REPORT 2021
2020 2021
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SHAREHOLDERS’
INFORMATIONWE ARE EVS
SUSTAINABILITY
REPORT
1 https://evs.com/company/board-directors
Governance matters
Cybersecurity
As a leading provider and architect of IP infrastructure
solutions for the broadcast industry, EVS takes cyberse-
curity very seriously. Serving a growing customer base of
high-profile broadcasters and production companies that
deliver news and major sporting events worldwide, we are
committed to meticulously safeguarding our clients from
malicious parties and the disruption that their attacks
can unleash.
1
The members of the Board of Directors are appointed for
a term ranging from one to four years. The Board meets
six to eight times a year to discuss business evolution,
company strategy, budgets, strategic decisions and moni-
toring subsidiaries, as well as to review the company per-
formance. They also examine acquisition and partnership
projects, draft press releases, prepare General Meetings,
and discuss the renewal of Directors’ mandates and the
appointment of new board members.
As regards the composition of the Board of Directors, EVS
complies with the mandatory quota for listed companies
as stipulated by Belgian law. These requirements in terms
of diversity have been followed and are integrated into the
recruitment process of our Remuneration and Nomination
Committee.
In 2021, the number of men in EVS board remained stable
taking the previous ratio of 43% of women to 33%.
The following people participate to the Board of Direc-
Martin De Prycker, Chantal De Vrieze, Philippe Mercelis
and Anne Cambier. The Board of Directors respects the
gender balance by having two women out of a total of six
board members.
32 EVS ANNUAL REPORT 2021
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SHAREHOLDERS’
INFORMATIONWE ARE EVS
SUSTAINABILITY
REPORT
Leadership Team
1
The Leadership Team coordinates the monitoring and
development of the company and its affairs. Its members
are in permanent contact with one another, receive infor-
mation on the group’s financial situation, sales and pro-
jects, product and solution development status, project
deployment status and customer issues. The Leadership
Team also takes operational decisions such as appointing
or dismissing staff and concluding contractual agree-
ments. This is the decision-making body of the group.
Respect for human rights
EVS strives to promote fair labor practices, decent working
conditions and respect for human rights. This includes but
is not limited to prohibiting child, forced or bonded labor,
ensuring fair wages and overtime pay, respecting minimum
wages, providing benefits and guaranteeing freedom of
association.
In particular, EVS ensures that there is no modern slavery
or human trafficking in its business and its supply chain,
notably in order to fulfil the requirements of the UK Modern
Slavery Act
2
.
Our general terms and conditions of purchase include
specific undertakings and warranties from our suppliers
that they comply with applicable laws, are not involved
in modern slavery and comply with our external code of
conducts. Suppliers are also asked to take part in regular
surveys in which they have to reaffirm these statements
as regards modern slavery, in particular.
1. https://evs.com/company/leadership-team
2 https://www.legislation.gov.uk/ukpga/2015/30/contents/enacted
FROM LEFT TO RIGHT:
VEERLE DE WIT
CHIEF FINANCIAL OFFICER,
XAVIER ORRI
EVP OF OPERATIONS AND PROJECTS,
ALEXANDER REDFERN
CHIEF TECHNOLOGY OFFICER,
SERGE VAN HERCK
CEO,
NICOLAS BOURDON
CHIEF MARKETING OFFICER,
PIERRE MATELART
CHIEF PEOPLE OFFICER,
QUENTIN GRUTMAN
CHIEF CUSTOMER OFFICER.
32 EVS ANNUAL REPORT 2021 33 EVS ANNUAL REPORT 2021
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SHAREHOLDERS’
INFORMATIONWE ARE EVS
SUSTAINABILITY
REPORT
1. https://evs.com/whistleblowing-policy-speaking-procedure
EVS Code of Conduct and
data protection of privacy
20 offices across the world, EVS is now a leading provider
of live video technology, with a global footprint. Such suc-
cess depends on the conduct of our EVS team members.
We therefore expect that they will always behave with
integrity. At EVS, this means doing the right thing in the
right way. We firmly believe that it is only by keeping our
integrity intact that EVS can remain a successful company
and stay on the right track for the future.
To this end, in 2020 we updated our EVS Code of Conduct
to reflect our company’s integrity values and offer gui-
dance to help our team members to make the correct
decision in every situation, even when the right thing to
do is not obvious.
Anti-corruption and bribery
At EVS, we do not tolerate practices such as bribery and
corruption.
Our EVS Code of Conduct provides guidance for our team
members to do the right thing the right way in these mat-
ters, as the distinction between corruption and gifts or
other business courtesies is sometimes blurred.
In particular, in 2021 our team members followed an e-trai-
ning course highlighting our anti-corruption and anti-bri-
bery policy as per our EVS Code of Conduct, specifically
when accepting or offering gifts and entertainment.
No incidents relating to corruption were reported amongst
EVS team members in 2021.
Whistleblower policy
In order to constantly strengthen our ethical commit-
-
sons who report breaches of Union law, EVS has updated
its Whistleblowing Policy which is now available on our
website
1
.
The Whistleblowing Policy clearly highlights who can issue
a report, when a report should be issued, the process as
well as the protection and confidentiality from which the
whistleblower can benefit.
Shareholders’ information
EVS shares
shares without nominal value. Since
December 15, 2011, EVS shares have been
either registered or dematerialized (and
Stock market and listing
EVS shares are listed on the continuous
Euronext Brussels market under ISIN code
-
on June 5, 2005. EVS is part of the Next150
and BelMid indices. As of December 31,
2018, EVS was also eligible for the Equity
Savings Plan for Small and Medium-Sized
The maximum value reached by the
stock price in 2021 was EUR 22.80, on
November 22, and the minimum value of
EUR 15.00 was recorded on January 28. As
at December 31, 2020, EVS had a market
capitalization of EUR 296.6 million with a
shares rose by 22.2% in 2021.
Dividend
Since its IPO in 1998, EVS has always paid
a dividend to its shareholders.
In 2018, the Board of Directors launched
a first multi-year dividend policy so as
to ensure that EVS paid stable dividends
during a three-year period from 2018 to
2021. This decision was taken to give
investors more clarity when looking at their
investment in EVS.
The dividend is paid in two parts: an interim
dividend at the end of November and the
final dividend in May after the approval of
the General Meeting.
For the year 2021, EVS proposes a base
gross dividend for the year 2021 at EUR
1.00 per share**
Next to that, EVS would like to honor its past
dividend intentions (an intent to distribute
EUR 1.00 per share per annum for the period
conditions in 2020, linked to the pandemic,
EVS proposes an additional exceptional
gross dividend:
A first additional exceptional gross divi-
dend of EUR 0.50 per share in May 2022**
A second additional exceptional gross
dividend of EUR 0.50 per share in May
2023*, **
For the next 3 years, EVS proposes to
renew the dividend policy. A proposal
will be presented to the Ordinary General
Meeting of shareholders. Our ambition is
to deliver a total gross dividend of EUR 1.10
IN € PER FISCAL
PER SHARE
FY2021 FY2022 FY2023 FY2024
Base dividend
1.00 1.10 1.10 1.10
Exceptional
additional dividend
0.50 0.50 0.00 0.00
Total dividend
1.50 1.60 1.10 1.10
Shareholding
Shareholders have an obligation to report
the percentage of EVS shares they
hold when this percentage crosses the
threshold of 3% in either direction (a condi-
and for any multiple of 5% (a requirement
The percentage of shares held must be
calculated based on the number of shares
As at December 31, 2021, the shareholding
of EVS Broadcast Equipment was as shown
in the graphic (based on recent statements
received by the company and the treasury
For more shareholding details, please refer
to the Statement of Corporate Governance
in the second part of the annual report.
General meetings
EVS holds its Ordinary General Meeting
on the third Tuesday in May. Shareholders
are invited to participate in this meeting.
All instructions are published one month
before the meeting.
To promote interaction between the
company and its shareholders — and to
know and serve them better — further
to Article 24 of its articles of association,
EVS requires proxies for participation in
its General Meetings to be signed by the
actual ultimate beneficial owner.
Proxies issued by a custodian or sub-custo-
dian must therefore be accompanied by
another power of attorney duly signed by
the actual ultimate beneficial owner gran-
68.1%
UNDERCLARED
5.8%
MICHEL COUNSON
6.5%
TREASURY SHARES EVS
4.9%
DEGROOF PETERCAM
ASSET MANAGEMENT
3.0%
SCHRODERS PLC
3.0%
NORGES BANK
5.7%
OTUS CAPITAL
MANAGEMENT LIMITED
3.0%
ENNISMORE FUND
MANAGEMENT
34 EVS ANNUAL REPORT 2021
EVS SHAREHOLDERS (IN %)
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORTWE ARE EVS
SHAREHOLDERS’
INFORMATION
* subject to market conditions
** subject to the approval of the Ordinary General
Me eting of shareholders
ting authorization to exercise their rights.
In the interest of good governance, this
provision is strictly applied and at each
meeting results in a few non-compliant
discharges of proxies, including those from
stakeholders.
Financial service
Dividends are payable at ING BANK SA,
which is the sole paying agent in the Euro-
clear Belgium “E.S.E.S.” dematerialized sys-
tem.
ING BANK SA
Avenue Marnix, 24
1000 Brussels
Belgium
Information accessibility
general information on the company and its
products, as well as financial information, cor-
porate governance rules and annual reports.
A page is also dedicated to the financial ana
-
lysts who monitor the stock.
All legal documents are available at the com-
pany’s head office or on its website.
EVS has adopted a “quiet period” policy,
which limits communication with investors
during sensitive periods to basic, historic and
non-time-specific information. This quiet period
begins one month before the publication of
the earnings and continues until the earnings
release date.
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012
14,327,024
13,636,540 13,625,000 13,625,000 13,625,000 13,625,000 13,625,000 13,625,000
14,327,024
13,625,000 13,625,000 13,625,000 13,625,000 13,625,000 13,625,000
Average number of shares,
excl. own shares
13,400,624
13,668,612 14,016,921 13,531,196 13,514,301 13,501,815 13,490,812 13,513,053 13,449,081
Average free float
91.7%
86.4% 93.9% 93.9% 93.5% 93.5% 93.5% 93.5% 93.5%
Annual volume
3,727,707
8,364,031 10,191,122 11,809,385 14,884,293
Average daily volume
15,412
32,800 45,645 31,195 39,654 46,130 58,600 34,348
285,060
1,053,033 1,040,358 1,228,090 2,459,901 2,888,959 1,383,196
Standard velocity
26.0%
48.0% 58.4% 86.0% 58.8% 126.6% 109.2% 64.3%
Adjusted velocity -
Average free float
28.4%
55.6% 66.9% 91.6% 80.0% 135.3% 116.8% 68.8%
18.50
15.61 21.54 33.35 36.95 49.30
20.70
23.20 33.20 29.00 29.89 46.99 44.40
22.80
22.15 33.15 36.50 36.40 46.00
15.00
10.34 19.58 15.44 24.89 21.06 23.52 39.88
Market capitalization
265.0
223.6 308.6 314.6 454.4 422.0 391.9 503.4
Market capitalization
296.6
239.3 311.6 332.4 404.8 452.4 395.1 640.2 605.0
1.50
0.50 0.50 1.00 1.00 1.30 1.00 2.00 2.16 2.64
1.05
0.35 0.35
0.93 1.50 1.62 1.98
Dividend yield (gross dividend
8.1%
3.2% 2.3% 4.3%
3.0% 4.2% 3.5% 5.4% 4.4% 6.6%
Share buyback/share
0.00
0.58 0.11
0.00 0.00 0.00 0.36 0.00 0.00
2.60 0.53
1.40 2.60
2.43 2.63 2.52 3.10
Payout ratio
57.7% 94.3%
38.5%
56.5% 53.5% 56.8% 85.2%
Price/earnings ratio
7.1 29.4
15.4 8.9
18.8 16.3 14.0 19.6 13.0
EVS appreciates the interest of its shareholders
in the company and believes that this policy
enables the company to balance the needs of
the business and the importance of commu
-
nicating with both new and potential investors.
THE EVS SHARE OVER THE LAST 10 YEARS
34 EVS ANNUAL REPORT 2021 35 EVS ANNUAL REPORT 2021
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORTWE ARE EVS
SHAREHOLDERS’
INFORMATION
2021 2020 2019
Revenue
137.6 88.1 103.4
37.1 5.7 23.0
Net profit (group share)
34.9 7. 2 19.6
1.6 6.9 1.4
Cash generated from operations
39.8 16.4 22.6
162.3 140.5 141.8
54.9 34.7 45.5
54.4 47.5 48.5
551 550.0 464
249,688 160,182 222,845
2021 2020 2019
Average number of shares excl. treasury shares
13,400,624 13,668,612 14,016,921
Basic net profit (group share)
2.6 0.53 1.4
Gross dividend (interim + final dividend)
1.50 0.50 0.50
Equity per share
10.61 9.81 10.18
2021 2020 2019
Net margin
interests and taxes.
beginning of the year less the final dividend decided during the Ordinary General Meeting of May.
2019 2020 2021
LIQUIDITY –
AVERAGE DAILY VOLUME ON
THE STOCK MARKET (EUR)
SHARE PRICE AND VOLUME
800,000
600,000
400,000
200,000
0
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
25
20
15
10
5
0
285,060 EUR
36 EVS ANNUAL REPORT 2021
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORTWE ARE EVS
SHAREHOLDERS’
INFORMATION
PAYOUT RATIO
(% OF BASIC EPS)
2019 2020 2021
100
80
60
40
20
0
57.7%
DIVIDEND YIELD (%)
2019 2020 2021
10
8
6
4
2
0
8.1%
LIQUIDITY – AVERAGE DAILY
VOLUME ON THE STOCK MARKET
(NUMBER OF SHARES)
2019 2020 2021
50,000
40,000
30,000
20,000
10,000
0
15,412
GROSS DIVIDEND PER SHARE
AFTER SPLIT (EUR)
2019 2020 2021
1.5
1.0
0.5
0
1.5 EUR
Shareholders’ calendar
Ordinary General Meeting of shareholders
Q1 2022 results
H1 2022 results
Q3 2022 results
36 EVS ANNUAL REPORT 2021 37 EVS ANNUAL REPORT 2021
CEO & CHAIRMAN
INTERVIEW
INTRODUCING
EVS
MARKET
TRENDS
EVS
SOLUTIONS
KEY SUCCESSES
OF 2021
CUSTOMER
SUCCESSES
CHANNEL PARTNER
PROGRAM
EVS
TRANSFORMATION
EVS AS
A VALUE COMPANY
ED
FORCE 1
SUSTAINABILITY
REPORTWE ARE EVS
SHAREHOLDERS’
INFORMATION
Contact
Veerle De Wit, CFO
EVS Broadcast Equipment SA
A paper copy can be obtained on request.
Version française disponible sur demande.
EVS MAIN OFFICES
EVS HEADQUARTERS
Liege Science Park
Investor relations:
Floor 3
Mail: info.usa@evs.com
EVS HONG KONG
Room A, 35/F, Lee & Man
Commercial Center
169 Electric Road, North Point
Hong Kong
Mail: info.hk@evs.com
EVS West Coast
EVS China
EVS Singapore
EVS Hong Kong
EVS UK
EVS Deutschland
EVS Netherlands
EVS France
EVS HQ
EVS East Coast
EVS Dubai
EVS Australia
EVS Mexico
evs.com
Annual financial
report 2021
1 FINANCIAL ANNUAL REPORT EVS - 2021
TABLE OF CONTENTS
TABLE OF CONTENTS 1
MANAGEMENT REPORT 4
FINANCIAL REPORT 4
1. CONSOLIDATED KEY FIGURES – IFRS (EUR MILLIONS) 4
2. HIGHLIGHTS 4
3. STRATEGY AND LONG-TERM GROWTH DRIVERS 5
4. REVENUE 5
5. RESEARCH AND DEVELOPMENT 6
6. STAFFING 6
7. RESULTS 7
7.1. 2021 key figures 7
7.2. Comments on the results 7
7.3. Data per share (EUR) 7
8. BALANCE SHEET, CASH-FLOW, OWN SHARES AND EMPLOYEE PROFIT SHARING 7
9. PROVISIONS FOR RISKS AND CHARGES 7
10. RISK MANAGEMENT 7
11. INVESTMENTS 8
12. CAPITAL AND SUBSIDIARIES 8
13. OUTLOOK 2022 8
14. SUBSEQUENT EVENTS 8
15. PROPOSALS BY THE BOARD TO THE SHAREHOLDERS 8
CORPORATE GOVERNANCE STATEMENT 10
1. CORPORATE GOVERNANCE CHARTER 10
2. BOARD OF DIRECTORS 10
3. SPECIALIZED COMMITTEES ATTACHED TO THE BOARD 10
3.1. Audit Committee 10
3.2. Nomination and Remuneration Committee 10
4. DAY-TO-DAY MANAGEMENT 12
4.1. Executive Committee 12
4.2. Operational management of subsidiaries 13
5. CONTROL OF THE COMPANY 13
5.1. Internal control and risk management systems 13
5.2. External audit 13
6. SHAREHOLDING (AS OF DECEMBER 31, 2021) 14
7. GENERAL MEETINGS 14
8. SHAREHOLDER ENGAGEMENT 14
9. DIVIDENDS AND PROFIT ALLOCATION POLICY 15
10. RESPECT OF THE BELGIAN CODE ON CORPORATE GOVERNANCE 15
REMUNERATION REPORT 17
1. THE DIRECTORS 17
1.1. Remuneration policy 17
1.2. Remuneration report in 2021 18
1.3. Comparative information on the evolution of compensation and company performance 19
2. THE CEO AND THE OTHER MEMBERS OF THE EXECUTIVE MANAGEMENT 19
2.1. Remuneration policy 19
2.2. Remuneration report in 2021 21
3. CONFLICT OF INTEREST PROCEDURES 22
RISKS AND UNCERTAINTIES 23
1. PRIMARY RISKS 23
2. SECONDARY RISKS 24
CERTIFICATION OF RESPONSIBLE PERSONS 25
CONSOLIDATED FINANCIAL STATEMENTS 26
CONSOLIDATED INCOME STATEMENT 26
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 27
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) 28
CONSOLIDATED STATEMENT OF CASH FLOW 29
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 30
NOTES TO THE IFRS CONSOLIDATED FINANCIAL STATEMENTS 31
2 FINANCIAL ANNUAL REPORT EVS - 2021
1. INFORMATION ABOUT THE COMPANY 31
1.1. Identification 31
1.2. Public information 31
1.3. Corporate purpose of the company 31
2. SUMMARY OF THE IFRS SIGNIFICANT ACCOUNTING PRINCIPLES 31
2.1. Basis of presentation of the financial statements 31
2.2. Statement of compliance 31
2.3. New standards, interpretations and amendments 31
2.4. Summary of changes in accounting policies 32
2.5. Consolidation principles 32
2.6. Subsidiaries 32
2.7. Interests in joint ventures and in associates 33
2.8. Summary of significant judgements, assumptions and estimates 33
2.9. Foreign currency translation 33
2.10. Business combinations and goodwill 34
2.11. Intangible assets 34
2.12. Tangible assets 35
2.13. Impairment of non-financial assets 35
2.14. Non-current assets held for sale 36
2.15. Inventories 36
2.16. Trade and other receivables 36
2.17. Other current and non-current assets 36
2.18. Cash and cash equivalents 36
2.19. Treasury shares 36
2.20. Non-controlling interests 36
2.21. Interest-bearing loans and borrowings 36
2.22. Provisions 36
2.23. Pensions and other post-employment benefits 37
2.24. Share-based payment 37
2.25. Revenue from contracts with customers 37
2.26. Leases (EVS as lessor) 38
2.27. Government grants 38
2.28. Leases (EVS as lessee) 38
2.29. Research and development costs 39
2.30. Borrowing costs 39
2.31. Income taxes 39
2.32. Derivative financial instruments 39
2.33. Dividends 40
2.34. Commitments relating to technical guarantee in respect of sales or services already provided 40
2.35. Earnings per share 40
3. SEGMENT INFORMATION 40
3.1. General information 40
3.2. Additional information 40
4. CONSOLIDATED COMPANIES, JOINT VENTURES, ASSOCIATES AND REPRESENTATIVE OFFICES 42
5. INVESTMENT IN JOINT-VENTURES AND ASSOCIATES 44
5.1. Investments in associates 44
6. INCOME AND EXPENSES 44
6.1. Use of non-GAAP financial measures 44
6.2. Gross margin 44
6.3. Research and development expenses 45
6.4. Complementary information about operating charges by nature 45
6.5. Financial revenues/(costs) 48
6.6. Other income and expenses 48
7. INCOME TAXES 49
7.1. Tax charge on results 49
7.2. Reconciliation of the tax charge: 49
7.3. Deferred taxes on the balance sheet 50
8. EARNINGS PER SHARE 50
9. DIVIDENDS PAID AND PROPOSED 51
10. GOODWILL 51
10.1. Axon Group 52
11. OTHER INTANGIBLE ASSETS 53
12. TANGIBLE ASSETS (LANDS AND BUILDINGS, AND OTHER TANGIBLE ASSETS) 54
13. LONG TERM FINANCIAL ASSETS 56
14. INVENTORIES 56
15. TRADE AND OTHER RECEIVABLES 56
15.1. Finance lease receivables 57
15.2. Contract balances 58
16. OTHER CURRENT FINANCIAL ASSETS 58
17. CASH AND CASH EQUIVALENTS 58
18. NON CURRENT ASSETS HELD FOR SALE 58
19. OWNER’S EQUITY 59
19.1. Movements in issued capital 59
19.2. Issued capital and treasury shares 59
19.3. Authorized capital 60
3 FINANCIAL ANNUAL REPORT EVS - 2021
19.4. Staff incentive program 60
19.5. Treasury shares 61
19.6. Reserves 62
19.7. Translation differences 62
20. LOANS 62
20.1. Credit lines 62
20.2. Lease liabilities 62
20.3. Liabilities from financing activities 63
21. PROVISIONS 63
22. TRADE AND OTHER PAYABLES 64
23. AMOUNTS PAYABLE REGARDING REMUNERATION AND SOCIAL SECURITY 64
24. COMMITMENTS AND CONTINGENCIES 64
24.1. Operating lease commitments 64
24.2. Commitments relating to technical guarantee in respect of sales 64
24.3. Bank guarantees 64
24.4. Contractual guarantees 64
24.5. Guarantees on asset 64
24.6. Other guarantees and contingencies 64
25. RELATED PARTY DISCLOSURES 64
25.1. Affiliates 64
25.2. Executives 65
26. AUDITOR 65
27. FINANCIAL RISK MANAGEMENT POLICIES 66
28. FINANCIAL INSTRUMENTS 66
28.1. Fair values of the financial instruments 66
28.2. Foreign currency risk 66
28.3. Credit risk 66
29. EVENTS AFTER THE BALANCE SHEET CLOSING DATE 66
AUDITOR’S REPORT 67
BELGIAN GAAP PARENT COMPANY FINANCIAL STATEMENTS 71
STATUTORY MANAGEMENT REPORT 71
BELGIAN GAAP STATUTORY INCOME STATEMENT 72
BELGIAN GAAP STATUTORY BALANCE SHEET 73
APPENDIX TO PARENT COMPANY FINANCIAL STATEMENTS 75
4 FINANCIAL ANNUAL REPORT EVS - 2021
MANAGEMENT REPORT
FINANCIAL REPORT
1. CONSOLIDATED KEY FIGURES – IFRS (EUR MILLIONS)
2021
2020
2019
2021/2020
Revenue
137.6
88.1
103.4
+56.2%
Gross margin %
69.6%
66.5%
71.6%
+3.1Pts
Operating profit - EBIT
37.1
5.7
23.0
+556.6%
Operating margin (EBIT) %
27.0%
6.4%
22.3%
+20.6Pts
Income taxes
-2.8
2.8
-3.3
-198.7%
Net profit, group share
34.9
7.2
19.6
+385.7%
Net profit (%)
25.4%
8.2%
19.0%
+17.2Pts
2. HIGHLIGHTS
2021 was a record year for EVS in a market that is gradually recovering from the impact of the pandemic and clients
embracing new solutions rapidly, accelerated by the COVID19 experiences.
The order intake has been strong throughout the year, and we closed 2021 with a record high. These order intake results
allowed us not only to boost our revenue for 2021, but also position us well for the year 2022. Our orderbook at year-start
has reached new heights.
2021 has been a very successful year for our LSP (Live Service Providers) market pillar despite the continuation of pandemic
conditions. Not only did most of events happen and were successfully broadcasted - supported by the creativity of our LSP
customers – but the new conditions projected our customers in the future with the adoption of new practices. Some of our
customers did recover their initial plans paused in 2020, resulting in a catch-up of the revenues that would normally have
been recognized in 2020. Other customers realized the benefits of the new EVS solutions to face the challenges of the new
world and did sign long term partnership with EVS through confirmed upgrade of their whole fleet of replay servers, resulting
in multi-year orders.
In the LAB (Live Audience Business) market pillar, the impacts of Covid have been lower with no real catchup effect. The
first modernization contracts have been delivered and the systems are now operational. The orders for new modernization
projects continue to flow, and they support growth of this market pillar (+28% vs 2020, +38% vs 2019). EVS did also sign a
key contract with RTBF for the co-design of a new solution – based on Cerebrum – leveraging new technologies as IP, AI
and SW to re-invent production methods, bringing more flexibility to improve the productivity of live content creation.
2021 and 2022 is a special sequence for major events and the BER (Big Events Rental) market pillar. 2021 major summer
events have been a success with the first adoption of the new generation of products as LSM-VIA or MediaHub deployed in
a hybrid mode with some parts in the cloud and some other parts deployed on premise of the host broadcaster. Host
broadcasters of major events of 2022 did also confirm their trust in EVS, resulting in a significant BER component in the
booked revenues for 2022.
From a regional perspective all our geographies performed well: all regions demonstrated growth, not only compared to
FY20, but also in comparison to FY19.
The acquisition of Axon is bearing its fruits. With the design of new Strada evolutive video routing solution and the early
successes in the NALA region, EVS strengthens its position in the MediaInfra Solution market and proves the success of
the acquisition of Axon with a successful lever on both strong products and EVS customer intimacy.
EVS did also continue the deployment of hybrid workflows. Thanks to the launch of XtraMotion sold through “EVS Credits”,
our customers can create emotion with super slow-motion replays and highlights produced in the cloud in a much more
affordable way than with all dedicated cameras as it has been proven through a partnership with Fox Sports US. The “Big
Events proven” MediaHub solution is also becoming available in SAAS to expose the host broadcaster’s content worldwide
and support higher monetization of live and near-live content. “On-demand” and SAAS business model start to gain more
traction in the industry.
Going back to the financial performance, besides a record-high order intake, EVS noted a very strong revenue performance
in 2021. The gross margin performance is very solid at 69.6% with limited impact in 2021 of the price increases linked to the
shortage in the components market. The growing mode and future perspectives have led to an acceleration in expenses,
primarily in the second semester. Consequently, operating expenses increased low double digit compared to 2020. This
5 FINANCIAL ANNUAL REPORT EVS - 2021
comparison is also still impacted by the Axon integration in May 2020. Besides additional investments in team members to
continue and fuel our growth, we have also registered expenses to support our business transformation strategy. EVS notes
an EBIT performance at EUR 37.1 million, generating a 27.0% operating margin.
For 2022, all internal indicators are green to deliver a strong year, with an order book for the year growing at 16%. There
are however risks at global scale that we need to continue and manage proactively. First, the shortage on the components
market might lead to an erosion of our gross margin. Next to margin erosion, there is a risk of additional delivery delays, as
the supply market is very erratic and unstable. Up till now, EVS has successfully managed these risks by ensuring
proactiveness in the supply chain, production, and procurement teams. Another macro-economic risk is linked to the rising
inflation.
For 2022, EVS will benefit from a second consecutive year of Big Event Rentals. We expect this market pillar to reach
approximately EUR 9,0 million of revenue in 2022.
In terms of strategy, we will launch the next chapter in our PLAYForward project: we will launch the “Switch to Growth Mode”
where we will continue to invest in future growth, and we expect to leverage our acquisition strategy.
Operating expenses are expected to grow mid to high single digits in 2022, fuel by inflation, but also by further expansion
of our team member base and expenses linked to our business transformation strategy.
Based on the company indicators, EVS issues guidance on revenue for 2022 in the range of EUR 125 million and EUR 140
million. EVS does see an increasing impact of the worldwide shortages in the supply chain of electronic components, which
may impact our revenue generation.
3. STRATEGY AND LONG-TERM GROWTH DRIVERS
EVS focuses on delivering standard “live solutions” with custom workflows based on modernized solutions leveraging latest
technologies (IP, AI, Virtualization, Micro-services, Open APIs, Cloud).
EVS will address a larger customer base thanks to:
- strengthened convergent solutions leveraging sports position to extend to news & entertainment, workflows,
- further development of its solutions for smaller customers thanks to tiered-level pricing,
- improved support of channel partners to address new and smaller customers.
EVS will finally progressively extend its product portfolio through strategic partnerships and acquisitions to extend its footprint
for both existing and new customers in different segments.
EVS will also leverage SW to propose new flexible business models, ensuring a smooth transition from CAPEX to OPEX,
preserving mid-term revenues with absence of price sacrifice to tease to OPEX.
4. REVENUE
EVS revenue amounted to EUR 137.6 million in FY21, an increase by 56.2% compared to 2020 (+39.6% at constant
currency and excluding the big event rentals).
All our market pillars performed well in 2021 with each market pillar growing, not only in comparison to 2020 but also in
comparison to 2019. Revenue of solutions in LSP (Live Service Providers) represented 37.7% of the total group revenue,
with a growth over 2020 of 71.7%. LAB (Live Audience Business) revenue represented 52.5% of total revenue in 2H21,
growing 27.5%. Big Event Rentals represented 9.8% of total revenue, benefiting from postponed 2020 events following the
pandemic.
From a regional perspective, each region contributed to the strong results and demonstrated growth in comparison to 2020,
but also in comparison to 2019. In 2021, in Europe, Middle East and Africa (“EMEA”), sales (excl. big event rentals)
amounted to EUR 63.5 million (+54.9% compared to 2020).
Sales (excl. big event rentals) in Americas (“NALA”) were EUR 37.5 million (+30.5% at constant currency).
In Asia & Pacific (“APAC”), sales (excl. big event rentals) were EUR 23.1 million (+19.6% at constant currency).
6 FINANCIAL ANNUAL REPORT EVS - 2021
Revenue evolution (EUR millions)
Revenue by geographical information
Revenue for the YTD period (EUR thousands)
APAC
excl. events
EMEA
excl. events
Americas
excl. events
Big event
Rentals
TOTAL
FY21 revenue
23,077
63,468
37,499
13,534
137,578
Evolution versus FY20 (%)
+19.6%
+54.9%
+41.4%
+967.4%
56.2%
Variation versus FY20 (%) at constant currency
+19.6%
+54.9%
+30.5%
+967.4%
+53.0%
FY20 revenue
19,315
41,002
26,526
1,268
88,111
5. RESEARCH AND DEVELOPMENT
Research and development expenses amounted to EUR 27.1 million in 2021 versus EUR 24.0 million in 2020. R&D does
not require any considerable investment since engineers and programmers work directly and mainly on the machines to be
sold or on servers for the software development. Moreover, the markets in which EVS operates and which are characterized
by a rapid evolution of used technologies and the impossibility to predict future benefits that on-going developments are
likely to generate, lead the Board of Directors to conclude that the criteria of IAS38.57 were not met. Consequently,
development costs incurred in 2021 cannot be capitalized.
Since the fourth quarter of 2010, EVS considers a withholding tax exemption given since 2006 by the Belgian government
to companies paying or allocating compensation to individual researchers who are engaged in collaborative R&D programs
according to some criteria defined under section 273 of the Code of income tax in Belgium. In the presentation of the
accounts, this amount comes as a deduction of R&D charges.
Since 2015, EVS also benefits from tax credits relating to R&D in France. This amount also comes in deduction of the R&D
expenses. In 2021, it amounted to EUR 0.4 million.
Starting from 2021, Axon NL benefits from tax credits relating to R&D in The Netherland. This amount also comes in
deduction of the R&D expenses. In 2021, it amounted to EUR 0.4 million.
EVS is also benefiting since 2H2016 from the “Innovation box” regime in Belgium. This regime allows Belgian companies to
benefit from deductions on profits generated by innovative revenue.
6. STAFFING
Breakdown of personnel by department (in full-time equivalents):
Corporate
Services
Research &
Development
Sales &
Marketing
Production &
Operations
Total
Dec. 31, 2019
59
237
58
110
464
Dec. 31, 2020
65
272
94
119
550
Dec. 31, 2021
69
268
81
133
551
As of December 31, 2021, EVS had a total of 551 employees (full-time equivalents, including 6 leadership team members,
an increase of 0.2% compared with end of year 2020. The total salary cost stands at EUR 47.3 million in 2021 as opposed
to EUR 40.2 million in 2020. Throughout 2021, the average number of employees was 547, up 6.4% over 2020 (514).
2
5
10
22
20
37
35
36
39
50
52
85
95
111
77
111
107
138
129
131
119
131
119
116
103
88
138
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
7 FINANCIAL ANNUAL REPORT EVS - 2021
7. RESULTS
7.1. 2021 key figures
IFRS - EUR million,
except earnings per share, expressed in EUR
1H21
Reviewed
2H21
unaudited
2021
Audited
Revenue
61.8
75.8
137.6
Gross margin
42.6
53.2
95.8
Gross margin %
68.9%
70.3%
69.6%
Operating profit – EBIT
15.4
21.7
37.1
Operating margin – EBIT %
24.9%
28.6%
27.0%
Net profit – Group share
15.6
19.3
34.9
Basic earnings per share
1.16
1.44
2.60
7.2. Comments on the results
Consolidated gross margin was 69.6% for FY21, compared to 66.5% in FY20 following a favorable product mix. Operating
expenses increased by 11.0% YoY: once corrected for the Axon integration and some increasing expenses following
evolving COVID situations, the increase in primarily linked to revenue related expenses (variable renumeration…) and spend
linked to our overall business transformation strategy. The FY21 EBIT margin was 27.0% at EUR 37.1 million. Income taxes
in FY21 amounts to EUR 2.8 million, resulting in an effective tax rate of 7.5%, mainly because of the innovation box regime
in Belgium and other R&D tax incentives. An exceptional tax benefit of 0.5Mio€ was booked linked to a restitution dating
2016.
Group net profit amounted to EUR 34.9 million in FY21, compared to EUR 7.2 million in FY20. Basic net profit per share
amounted to EUR 2.60 in FY21, compared to EUR 0.53 in FY20.
7.3. Data per share (EUR)
2021
2020
2019
2021/2020
Weighted average number of subscribed shares
for the period, less treasury shares
13,400,624
13,668,612
14,016,921
-2%
Basic net profit, group share
2.60
0.53
1.40
390.6%
8. BALANCE SHEET, CASH-FLOW, OWN SHARES AND EMPLOYEE PROFIT SHARING
EVS continues to have a strong balance sheet with net cash position of EUR 54.9 million with low debt level (of which EUR
13.4 million related to Lease contracts) resulting in a total equity representing 73.3% of the total balance sheet as of the end
of December 2021.
Lands and buildings mainly include the new headquarters in Liège as well as the right of use for the offices abroad. Twelve
months depreciations on intangible assets, lands, and buildings (including the right of use assets) and other tangible assets
reached EUR 7 million. Liabilities include EUR 17.3 million of financial debt (including long term and short-term portion of
it), mainly related to lease liabilities for EUR 13.4 million and borrowings for EUR 3.9 million.
The net cash from operating activities amounts to EUR 38.7 million in December 2021 compared to EUR 19.2 million in
December 2020. On December 31, 2021, cash, and cash equivalents total EUR 72.1 million. This is an increase compared
to the end of 2020 mainly explained by the growth of the net cash from operating activities together with the overall decrease
of the net cash used in investing activities. The increase of net cash used in financing activities is mainly explained by the
payment of an interim and final dividend in 2021 (this was not the case for 2020).
At the end of December 2021, there were 14,327,024 EVS shares outstanding, of which 925,140 were owned by the
company. In 2021, 158,600 new warrants were granted to various staff members, there were no exercises meaning that no
shares were used to satisfy the exercise of warrants by employees and 28,000 warrants were cancelled. At the end of 2021,
456,432 warrants were outstanding with an average exercise price of EUR 19.89 and an average maturity of November
2025. Additional information is available in the note 5.4.
The Ordinary General Meeting of shareholders of May 18, 2021, approved the allocation of 3,067 shares to EVS employees
(grant of 10 shares to each staff member in proportion to their effective or assimilated time of occupation in 2020) as a
reward for their contribution to the group’s success.
9. PROVISIONS FOR RISKS AND CHARGES
As per December 31, 2021, EUR 1.5 million provisions were available to reasonably cover technical warranties.
10. RISK MANAGEMENT
EVS is exposed to many exogenous and endogenous risks detailed in the annexes of the annual financial report and in the
paragraph 5.1 of the Corporate Governance statement. The management, the Audit Committee and the Board of Directors
conduct regular analyses of the company's risk and take actions to minimize or neutralize the potentially negative effects.
8 FINANCIAL ANNUAL REPORT EVS - 2021
Financial instruments used by the company are identified in the balance sheet and booked at fair value.
More information on the use of the financial instruments by the company, the objectives and policies relating to financial
risks management and the risks the company is exposed to, can be found in the Corporate Governance Statement (point
5.1) and in the “Risks and uncertainties” chapter. The foreign currency risk is treated separately in the note 27.2.
11. INVESTMENTS
EVS business does not require major investments in equipment.
The group’s policy is to own its premises in Belgium and primarily finance them through shareholders’ equity and long-term
bank loans. As per December 31, 2021, the net book value of lands and buildings was EUR 52.7 million (including 10.7
million of right-of-use).
12. CAPITAL AND SUBSIDIARIES
The EVS Broadcast Equipment SA capital of EUR 8,772,323 is represented by fourteen million three hundred and twenty-
seven thousand and twenty-four shares (14,327,024) without any designation of nominal value.
13. OUTLOOK 2022
Financial Guidance
We see the LSP market continue to transition their infrastructure to UHD. The LSM-VIA replay and its IP capabilities support
transition to XT-VIA Live Video Servers for LSP customers looking to deploy remote production solutions.
LAB continue their transformation to face the media industry disruption, looking for broader and more flexible solutions and
require more support to deploy as well remote production solutions.
Considering the order book, LAB is expected to be the structural market pillar supporting the growth of revenues in 2022
with continued modernization projects. We can also observe that we managed to increase our “long term order book”
(beyond 2022). This results from the availability of OPEX offerings, SLA orders covering longer periods of time and multi-
year revenue recognition linked to large modernization contracts. It is our intention to smoothly increase our recurring
revenues by positioning long term recurring revenue sales.
In BER market pillar, EVS 2022 revenues will be influenced by the occurrence of the major winter sport events, representing
around EUR 9.2 million of revenues.
The order book for 2022 amounts to EUR 41.8 million as of Dec 31
st
, 2021, which is +34.0% (excl. big event rentals)
compared to last year at the same date (Dec 31
st
). EVS also has EUR 9.2 million of order book for big events rentals.
In addition to this order book for 2022, EVS already has EUR 12.9 million of orders to be invoiced in 2023 and beyond.
All company indicators are green to deliver a strong 2022. EVS issues a guidance in terms of revenue between EUR 125
million and EUR 140 million. EVS does see an increasing impact of the worldwide shortage in the supply chain of electronic
components, which may impact our revenue generation in 2022.
Operating expenses will continue to grow mid to high single digits because of inflation and additional hirings to continue and
fuel our growth. Further evolution of inflation can potentially impact this assessment.
14. SUBSEQUENT EVENTS
Further to the conflict in Ukraine, EVS is monitoring and will comply with the international sanctions on Russia and Belarus
within the framework of its business in those regions. EVS does not anticipate that the compliance of those sanctions might
impact its business results as the revenue for those regions is not material.
15. PROPOSALS BY THE BOARD TO THE SHAREHOLDERS
The Board of Directors has decided to communicate the intention to pay a base gross dividend worth EUR 1.00 per share
for the year 2021.
Next to that, EVS would like to honor its past dividend intentions (an intent to distribute EUR 1,00 per share per annum for
the period 2018-2021). Therefore, after difficult market conditions in 2020, linked to the pandemic, EVS proposes an
additional exceptional gross dividend: a first additional exceptional gross dividend of EUR 0,50 per share in May 2022, and
a second additional exceptional gross dividend of EUR 0,50 per share in May 2023. Obviously, all subject to market
conditions and approval of the Ordinary General Meeting of shareholders.
An interim dividend of EUR 0.50 has been paid in November 2021. The final dividend will therefore be of EUR 1.00, subject
to the approval of the Ordinary General Meeting of May 17
th
, 2022.
9 FINANCIAL ANNUAL REPORT EVS - 2021
For the next 3 years, EVS proposes to renew the dividend policy. A proposal will be presented to the Ordinary General
Meeting of shareholders. Our ambition is to deliver a total gross dividend of EUR 1,10 for the period 2022-2024, subject to
market conditions and to the approval of the Ordinary General Meeting of May 17
th
, 2022.
The dividend proposal for 2021 and beyond is to be summarized as following:
In € per fiscal per share
FY2021
FY2022
FY2023
FY2024
Base dividend
1,00
1,10
1,10
1,10
Exceptional additional dividend
0,50
0,50
0,00
0,00
Total dividend
1,50
1,60
1,10
1,10
The Board of Directors also proposes to grant shares to the employees within the framework of the law relating to profit-
sharing schemes. These shares are based on a profit-sharing scheme of 2% of the annual EBIT. Based on an average
share price assumption of 21€, this would represent a total of 56 shares to be awarded per team member (only Belgian
team members are concerned). The exact number of shares is to be calculated at a later stage, based on the average
closing share price of the last 30 days prior to the publication of the invitation to the Ordinary General Meeting for
shareholders and awarded to the overall Belgian population.
10 FINANCIAL ANNUAL REPORT EVS - 2021
CORPORATE GOVERNANCE STATEMENT
This section of the annual report summarizes the rules and principles of good corporate governance established by EVS, in
accordance with Belgian Company and Association Code (and the law of April 6, 2010), articles of incorporation and the
Charter of Corporate Governance. It also focuses on activities related to the year 2021.
1. CORPORATE GOVERNANCE CHARTER
Already in 2006, the Board of Directors of EVS Broadcast Equipment approved a Corporate Governance Charter (“Charter”),
Until 31 December 2019, this Charter was based on the 2009 Belgian Code on Corporate Governance (“The 2009 Code”).
The Board has reviewed and updated this Charter at the end of 2019, taking into account the 2020 Belgian Corporate
Governance Code and will continue to do so whenever needed. This document and its update is fully available on the
group’s website (www.evs.com).
The Charter adopted by the Board of Directors meets most points from the 2020 Belgian Corporate Governance Code.
However, the Board considered that exceptions to the 2020 Belgian Corporate Governance Code were justified given the
specificities of EVS. The last section of this chapter shows the differences with the 2020 Belgian Corporate Governance
Code and explains the reasons for the exemptions.
2. BOARD OF DIRECTORS
The members of the Board of Directors are appointed for a term between 1 and 4 years. On December 31, 2021, the Board
of Directors was made up of 6 members. Decisions are taken by a majority vote. In the event of a tie, the Chairman or his
representative has a casting vote. In the case of a conflict of interest, the people involved do not take part in the debates
and in the vote.
When one or several positions of Director become vacant because of death, resignation or for any other reason, the
remaining Directors are entitled to fill the vacancy temporarily. In such a case, the General Meeting shall make the definitive
appointment at its next session.
The members are provided with various documents at each Board meeting or enclosed with the notification of the meeting.
These documents include reports, financial results, investment documents and other papers relating to the items on the
agenda.
In 2021, the Board met 7 times and notably discussed the following matters: strategic review, changes in management,
R&D and product developments, monitoring subsidiaries, liquidity management, assessing the impact of the Covid situation
on the employees, business and treasury position of the company, 2021 business updates, the 2022 budget and 5 year
business plan, examining acquisition and partnership projects, preparing press releases and preparation of General
Meetings, management of Directors’ mandates and evaluation of the functioning of the Board.
3. SPECIALIZED COMMITTEES ATTACHED TO THE BOARD
The Board of EVS has set up an Audit Committee and a Nomination and Remuneration Committee to conduct reviews on
specific matters and advise on them. The final decision remains a collective responsibility of the Board of Directors.
3.1. Audit Committee
The Audit Committee is composed of four non-executive Director. This committee assumes the missions described in the
Article 7:99 of the Belgian Company and Association Code. More generally, it assists the Board of Directors in its
responsibilities concerning the integrity of the financial information relating to the company and, in particular, supervising
the financial reports, the internal audit function, the external audit function and the relations between the company and its
shareholders. The Audit Committee met 4 times in 2021 in the presence, for most of the topics, of the CEO, CFO and the
company’s Auditor.
In accordance with the Article 3:6 of the Belgian Company Code, within the Audit Committee, Philippe Mercelis (having more
than 30 years of experience in financial services industry), Chantal De Vrieze (Certificate in law, and many years of
experience in executive functions, incl. in the Altran and Econocom groups), Martin DePrycker (holding a Ph.D in Computer
Sciences, as well as a MBA from the University of Antwerp) and the president of the board who is also a member of the
audit committee have the competencies in accounting and audit.
3.2. Nomination and Remuneration Committee
The Nomination and Remuneration Committee is composed of four non-executive independent directors. This committee
assumes the mission described in the article 7:100 of the Belgian Company and Association Code. More generally, it assists
the Board of Directors in its responsibilities concerning the remuneration policy setting, reviewing and setting the
remuneration for the company’s executives and managers as well as the long terms incentives and variables and bonus
policy. It also follows up and makes recommendations to the Board of Directors with regard to the appointment of board
members and executives. The members of the Nomination and Remuneration Committee met 5 times in 2021.
11 FINANCIAL ANNUAL REPORT EVS - 2021
On December 31, 2021, the Board of Directors was made up as follows:
Director
since
Audit
Committee
Nomination and
Remuneration
Committee
Term of
mandate
Activities in
2021
Attendance
Board
meetings (7)
Attendance
Committees
(4 – Audit Co)
(5 – Rem. Co)
Michel COUNSON
Managing
Director
1994
May 2024
7/7
0
Innoconsult bvba, represented
by Martin DE PRYCKER
Independent
Director
2016
Member
Member
May 2024
7/7
9/9
7 Capital sprl, represented by
Chantal DE VRIEZE
Independent
Director
2017
Member
May 2025
7/7
4/4
Philippe MERCELIS
1
Independent
Director
2019
Chairman
Member
May 2023
4/7
6/9
Accompany You sprl,
represented by
Anne CAMBIER
Independent
Director
2019
Chairman
May 2023
7/7
5/5
The House of Value – Advisory &
Solutions BV, represented by
Johan DESCHUYFELEER
President and
Independent
Director
2020
Member
Member
May 2024
7/7
9/9
Michel COUNSON (1960)
CTO Hardware and Managing Director of the company, Michel COUNSON graduated from the “Institut Electronique” in
Liège in 1982. He started his career as a Hardware Engineer with TECHNIQUE DIGITAL VIDEO S.A. in 1983 before
founding his own company, VIDEO SYSTEM ENGINEERING S.P.R.L., in 1986 which used to work in partnership with EVS
on numerous projects. The two companies merged in 2000.
Martin DE PRYCKER (1955)
Martin De Prycker (representing InnoConsult bvba) has been appointed as Board Observer of EVS in November 2015. He
is Independent Director of EVS since May 2016. He is Managing Partner at Qbic Fund (an interuniversity fund supporting
spin-off companies in Belgium) and Managing Director at Innoconsult (consultancy firm specialized in Innovation
Management and ICT solutions). Between 2009 and 2013, he was Founder & CEO of Caliopa (a startup in silicon photonics
allowing the transport of hundreds of Gbps on optical fiber). Between 2002 and 2009, he was CEO of Barco (display
hardware and software manufacturer based in Belgium). Under his leadership, he focused and made the company grow in
markets using displays, and spinning off the non-core product lines. Prior to that, he was CTO and member of the Executive
Committee of Alcatel-Lucent. Before becoming CTO of Alcatel-Lucent, he was responsible for establishing Alcatel-Lucent’s
worldwide market leadership in the broadband access market. He is a member of the Board of Directors of Proximus, Newtec
(Belgian company designing, developing and manufacturing equipment and technologies for satellite communications),
Anteryon, Track4C and Venture Spirit. Mr De Prycker holds a Ph.D in Computer Sciences, a M.Sc. in Electronics from the
University of Ghent, as well as a MBA from the University of Antwerp.
Chantal DE VRIEZE (1961)
Chantal De Vrieze (permanently representing 7 Capital sprl) is CEO of Econocom Benelux since October 2016. She started
her career in 1984 at AGFA, then Banque Van Breda, where she gained a solid background in Sales and Marketing. Between
2003 and 2015, she successively served as Sales Director, Managing Director of Econocom Benelux and a member of the
Board of Directors of Econocom Group (European provider of B2B digital solutions). In June 2015, she became Country
Manager of Altran Belgium (international consulting group for innovation and advanced engineering). She is graduated in
law from the University of Ghent. She is also a member of the Board of Directors of Axa Belgium, Guberna (Belgian Institute
of Directors) and Agoria, and a member of the FEB Strategic Committee.
Philippe MERCELIS (1963)
Philippe Mercelis started his career at ING (formerly named "BBL") in 1987. He held various positions such as back office
management, product management lending B2B, B2B marketing director and various commercial functions in both
commercial banking and insurance sectors. He had also been a director and member of the executive committee of ING
Lease and ING Commercial Finance.
1
Philippe Mercelis was for personal reasons unable to attend and therefore excused due to unavailability relating to 3 meetings of the Board of Directors, 2
meetings of the Nomination and Remuneration Committee and 1 meeting of the Audit Committee.
12 FINANCIAL ANNUAL REPORT EVS - 2021
In addition to these duties, he held various positions, notably with Private Equity and Public Investment Funds.
Philippe Mercelis is currently Head of Corporate Banking Brussels - Brabant at Belfius Bank.
Anne CAMBIER (1970)
Anne Cambier, (permanently representing Accompany you SRL) is director of her own business consulting company.
Throughout her career, she has gradually developed a passion for the human aspects of the business, with a specific focus
on competencies and leadership models in the context of technological shift.
From 1999 until 2015, Anne worked for Orange Belgium, where she contributed to the rapid growing of the mobile telephony
in Belgium. At Orange, before taking her responsibility as Chief People Officer, she developed a broad transversal business
knowledge by leading several activities in commercial, customer operations, supply chain and procurement.
Anne started her career in 1992 at Accenture, working for several corporate clients in Europe, mainly in the industrial and
utilities sectors.
She holds a Civil Engineering degree in Applied Mathematics from the Ecole Polytechnique of Louvain (UCLouvain) and an
executive Master in Management from Solvay Brussels School (SBS).
Johan DESCHUYFFELEER (1958)
Johan Deschuyffeleer (permanent representative of The House of Value BVBA - Advisory and Solution BV) has more than
35 years of international experience in the ICT and technology sector.
After several positions at the beginning of his career - as engineer and manager at Siemens and Hewlett-Packard - Johan
has been Managing Director Belux at Compaq. Afterwards, Johan returned to Hewlett Packard first as Managing Director
Belux to subsequently shape the global sales strategy from the Silicon Valley. He has then headed the Technology Services
EMEA and later the Technology Consulting WW. Johan is currently Chairman of the Board of Directors of Orange Belgium
and Director at AE, Automation and GIMV.
Johan has an industrial engineering degree and has also followed a course in Middle Management at the Vlerick
Management School.
4. DAY-TO-DAY MANAGEMENT
The Board of Directors has delegated day-to-day management to a managing director, the CEO and an Executive
Committee.
4.1. Executive Committee
On December 31, 2021
3
, the Executive Committee–– was composed of:
- Innovision BV, represented by Serge VAN HERCK, CEO
- WeMagine Srl, represented by Veerle DE WIT, CFO
- Ikaro Srl, represented by Nicolas BOURDON, CMO
- RCG Srl, represented by Quentin GRUTMAN, CCO
- M2C Srl, represented by Pierre MATELART, CPO
Michel Counson is also Managing Director but is not part of the Executive Committee, per his own request.
The Executive Committee coordinates the monitoring and development of the company and its affairs. Its members are in
permanent contact, receive information on the group’s financial situation, sales and projects, product and solution
development status, project deployment status, customer issues and the Committee takes operational decisions such as
appointing or dismissing staff and concluding contractual agreements. It is the decision-making body of the group.
The company, conscious of the importance of ensuring a certain diversity and inclusion in its staff, also continued to work
on the diversity of age, gender, ethnicity, educational and professional background as well as geography of its executive
committee and EVS top management team in general, including the diversity of professional skills in particular. Diversity
and ethnicity are really important to our company, given EVS' global presence. We believe that diversity and inclusion is
key to discover talents, to have the right people at the right place in the organization to ultimately achieve excellence. That
is why we bring to attention the representation of minority groups at all levels. Our team members are welcomed regardless
of their cultural background, gender, mother tongue, age, etc. We have zero tolerance for racism and discrimination.
As many companies, EVS is moving towards gender equality. Experiencing inequality in our teams is not acceptable
especially because we are people oriented. We want to create an inclusive, equal, and sustainable context in order to let
people express their full potential. In 2021, our Board of Directors was composed of 2 women out of 6 members, our
3
The services agreements of Sbasyva, Srl, represented by Yvan ABSIL, former CFO and of Seremia Srl, represented by Axel BLANCKAERT, former CTO
respectively ended as at 4 March 2021 and 16 December 2021.
13 FINANCIAL ANNUAL REPORT EVS - 2021
Executive Committee (known as the Leadership Team) of 1 woman out of 6 members and our EVS extended management
team (known as the skippers’ team) was composed of 9 women out of 56 members. The latter is also diversified from several
angles: management, transformation, technologies, software and services as well as a diversity of geography and an
international exposure of its members.
Starting from 2022 our executive committee will be even more diversified, as we will welcome new nationalities within the
team (namely one Spanish citizen and one British citizen).
4.2. Operational management of subsidiaries
The Executive Committee delegates the necessary powers to its subsidiaries to ensure their operational functioning. The
commercial and support subsidiaries are easy to control as their activities are entirely dependent on EVS Broadcast
Equipment SA, based in Liège (Belgium): delivery of promotional materials, presence at trade fairs, supply of machines or
exchange parts, and accounts. The Board of Directors of these subsidiaries are mainly composed by the headquarters’
Managing Director, the CEO, the CFO and local managers. The subsidiaries are spread over geographical regions (America,
Europe/Africa/Middle East, Asia/Pacific). This type of organization enables very efficient distribution of information at the
group level as well as rapid decision making. The group’s commercial policy is coordinated by the parent company, and
each region has different levels of operational autonomy which allows creating an optimal contact with the market.
5. CONTROL OF THE COMPANY
5.1. Internal control and risk management systems
The management strives to provide the level of risk control that is as adequate as possible. The various risks are identified
in this financial annual report. The most important characteristics of internal controls and risk management systems are:
- The assessment, with the auditor, of his audit reports and, if necessary, the request of additional information and
clarifications, and the set-up of corrective actions;
- The assessment, with the auditor and the Audit Committee, of the processes that are at risk in the preparation and
remediation of the financial statements;
- The ongoing monitoring of activities, operating results and financial risks of the company (including the financial position
of the company, the exchange rate risks), including within the various subsidiaries of the group;
- Monitoring the price of components and of relationships with suppliers;
- Managing the information systems;
- Monitoring of rules for the prevention of market abuse, compliance with these rules and any violations;
- Monitoring regulations and laws, including the monitoring of potential litigation, and possible financial implications
thereof;
- The process for the preparation of the consolidated accounts is centralized at the group's financial function level. All
information necessary for this process comes from widely used software in the market. Control procedures are in place
to ensure that it is thoroughly mastered.
5.2. External audit
Since the Ordinary General Meeting of May 17, 2016, the audit of the statutory and consolidated accounts of EVS Broadcast
Equipment SA is carried out by EY Réviseurs d’Entreprises SRL (B-00160), represented by Marie-Laure MOREAU (A-
01729), Belgian Réviseur d’Entreprise. The mandate of the Auditor is for three years. It has been renewed for 3 years in
May 2019.
In 2021, all fees related to the Auditor of the parent company, EY Réviseurs d’Entreprises SRL (B-00160), represented by
Marie-Laure MOREAU and its associates, amounted to EUR 149,200 in aggregate for their duties as Auditor.
14 FINANCIAL ANNUAL REPORT EVS - 2021
6. SHAREHOLDING (AS OF DECEMBER 31, 2021)
The situation as it appears from the last official ownership statements received by the company and the situation of treasury
shares as of December 31
st
, 2021, is as follows:
Shareholder
Number of shares
% statutory basic
(1)
% statutory diluted
(2)
Michel Counson
835,906
5.8%
5.7%
Treasury shares EVS
925,140
6.5%
6.3%
Degroof Petercam Asset Management
707,679
4.9%
5.0%
Schroders Plc
424,743
3.0%
2.9%
Norges Bank
423,428
3.0%
2.9%
Otus Capital Management Limited
820,529
5.7%
5.6%
Ennismore Fund Management
435,497
3.0%
2.9%
Undeclared
9,754,102
68.1%
65.8%
Total
14,327,024
100.0%
Total excl. Treasury shares
13.401.884
Outstanding warrants as of Dec. 31
456.432
3.1%
Total diluted
14.783.456
100.0%
Total diluted, excl. treasury shares
13.858.316
(1)
As % of the number of subscribed shares, including the treasury shares.
(2)
As % of the number of subscribed shares, including the outstanding warrants and the treasury shares.
Since December 26, 2018, the capital of EVS is currently represented by 14,327,024 shares. There is only one category of
shares, having the same rights. More information on the EVS capital is available in the note 19 of the consolidated accounts.
On December 31, 2021, EVS had 925.140 own shares. According to Euroclear and the EVS Shareholders Register, there
were 1,274,979 registered shares of which 811,528 are owned by Michel Counson (who also own 24,378 dematerialized
shares), 1,157 by EVS, 83,706 by the EVS employees under the profit-sharing scheme and the remaining balance by 12
shareholders. In the EVS accounts at Euroclear, there were 13,052,045 dematerialized shares.
Shareholders must declare their ownership in EVS shares as soon as their shareholding passes over/under the 3% threshold
(required by the company Statutes) and any multiple of 5% thresholds (required under Belgian law). The shareholding
percentage must be computed on the basic number of outstanding shares (i.e. 14,327,024 shares at the end of 2021).
7. GENERAL MEETINGS
Each year, EVS holds its Ordinary General Meeting on the third Tuesday of May. In 2021, it was held on May 18
th
at EVS’
premises and through a video conference system, it being understood that the shareholders were recommended to vote by
proxy due to the Covid-19 pandemic. Overall, 99 shareholders were present or represented, representing 2,695,048 shares,
or 18.8 % of the share capital of EVS. All resolutions were approved at an average rate of 81.11% votes in favor.
For any proposal to amend the articles of associations, the company must invite its shareholders to attend an Extraordinary
General Meeting. This assembly can validly cast only if 50% of shares are present or represented. If this is not the case, a
second Extraordinary General Meeting shall be convened and will be able to vote, regardless of the percentage of shares
present or represented. Decisions will be made to the majorities prescribed by law.
An Extraordinary General Meeting was held on May 18
th
, 2021 but did not reach the required quorum. A second
Extraordinary General meeting has been convened on June 7
th
, 2021. Overall, 103 shareholders were present or
represented, representing 2,715,549 shares, or 19% of the share capital of EVS. The proposition to (i) renew the
authorization granted to the Board of Directors to increase the capital within the framework of article 7:198 et seq. of the
Belgian Companies and Associations Code and grant the authorization to the Board of Directors to increase the capital
within the framework of article 7:202 of the Belgian Companies and Associations Code as well as (ii) to renew the
authorization granted to the Board of Directors to acquire and dispose of the Company's shares were not adopted as they
did not meet the three-quarters majority vote of the votes cast at the Extraordinary General Meeting. The proposition to
recast the Articles of Association of EVS in order to bring them in line with the Belgian Companies and Associations Code
has been approved with a rate of 99.9% of votes in favor at the Extraordinary General Meeting.
In order to encourage the interactions between the company and its final shareholders, but also in order to better know them
(and serve them), EVS requires, according to the article 24 of its articles of association, the proxies for a general meeting to
be signed by the final effective beneficial owner. Hence, proxies signed by a custodian or sub-custodian must be
accompanied by another proxy, duly signed by the final effective beneficial owner, allowing him to exercise its rights.
8. SHAREHOLDER ENGAGEMENT
EVS’ management regularly engages with shareholders to discuss the evolution of EVS business, performance and
strategy, in particular after the release of our trading updates and (bi-)annual results. In this context, the CEO and CFO have
regular contacts with our largest shareholders and value their input. In addition, we continue to take into account the
15 FINANCIAL ANNUAL REPORT EVS - 2021
feedback we receive from shareholder advisory groups. Finally, we are often responding to the written requests of
shareholders irrespective of their size.
EVS’ management has intensified the engagement with our shareholders in 2021 and will continue on this basis as we
consider shareholder dialogue as a top priority.
9. DIVIDENDS AND PROFIT ALLOCATION POLICY
The Board of Directors examines the results of the previous financial year and proposes at its Ordinary General Meeting
that these profits be distributed in the best interest of the company and its shareholders. Bearing in mind the legal restrictions
on profit distribution, the Board of Directors can propose a dividend policy that takes into consideration the company’s
investment and acquisition requirements. Since its IPO in 1998, the company paid dividends. The company initiated in 2006
the payment in November of an interim dividend.
For 2021, the Board of Directors will propose to the shareholders, at the Ordinary General Meeting of May 17
th
, 2022, the
approval of the distribution of a total gross dividend per share of EUR 1.00 for the fiscal year.
In addition, the Board of Directors proposes an exceptional additional dividend distribution to be paid in May 2022. EVS
wants to honor its past dividend intentions of EUR 1.00 per share per annum for the period 2018-2021. As such, after difficult
market conditions in 2020 linked to COVID-19, EVS proposes to distribute an additional exceptional gross dividend in a two-
step approach.
- A first additional exceptional gross dividend of EUR 0.50 per share in May 2022
- A second additional exceptional gross dividend of EUR 0.50 per share in May 2023
All of the above is subject to market conditions and to the approval of the Ordinary General Meeting of Shareholders.
The Board of Directors also proposes to grant shares to the employees within the framework of the law relating to profit-
sharing schemes. These shares are based on a profit-sharing scheme of 2% of the annual EBIT. Based on an average
share price assumption of 21€, this would represent a total of 56 shares to be awarded per team member (only Belgian
team members are concerned). The exact number of shares is to be calculated at a later stage, based on the average
closing share price of the last 30 days prior to the publication of the invitation to the Ordinary General Meeting for
shareholders and awarded to the overall Belgian population.
Dividends are payable at the following financial institution:
ING BANK SA (“Single ESES Paying Agent Euroclear”)
Avenue Marnix 24, 1000 Brussels, Belgium
10. RESPECT OF THE BELGIAN CODE ON CORPORATE GOVERNANCE
EVS has adopted the Belgian Code on Corporate Governance 2020 as reference code to which EVS commits to comply,
subject to certain aspects about the company will communicate appropriately. In accordance with the "comply or explain"
principle laid down in the said Code, the board of directors reserves the right to assess and adjust the application of these
standards of good governance with regard to EVS’ field of activity, its capabilities and its related constraints, as explained
below:
- With respect to executive directors, and further to a study on the practice and benchmark in this matter conducted in
2021, the board of directors has decided at this stage not to apply the possibility of setting a minimum threshold for
shares that executives must hold to avoid any speculation. Such position will be reviewed by the board of Directors on
a regular basis. Although that is not mandatory, the majority of the members of the Executive Management is already
shareholder of EVS.
- Regarding the non-executive directors, and further to a study on the practice and benchmark in this matter conducted
in 2021, the board of directors has decided at this stage not to apply the possibility of allowing the non-executive director
to receive a portion of his remuneration in the form of shares of the company to avoid conflict of interests and safeguard
the independence of the non-executive directors. Such position will be reviewed by the board of Directors on a regular
basis.
- Depending on the needs of the company, the audit committee meets at least twice a year. Every three years, it reviews
its operating rules, evaluates its own effectiveness, and recommends necessary adjustments to the board of directors.
Given the changes that the company has undergone in recent years, the current audit committee notes that such
mission has not always been completed in the past. The current audit committee has therefore undertaken to define
the evaluation criteria and the analyses to be carried out for this purpose. The first evaluation that will result from these
analyses has been rescheduled in 2022.
- At least once a year, the executive management is supposed to submit to the audit committee the monitoring of the
effectiveness of the company's internal control and risk management systems so that the audit committee can verify
16 FINANCIAL ANNUAL REPORT EVS - 2021
that the main risks (including those relating to fraud and compliance regarding the existing legislation and regulations)
are properly identified, managed and disclosed. Given the changes that the company has undergone in recent years,
the current audit committee notes that such mission has not always been completed in the past. For this reason, the
current audit committee has requested that this mission be the subject of a preliminary process of confirming its scope
and responsibilities which has started at the end of 2021 and is still ongoing.
- In principle, the Head of Group Accounting (which reports to the CFO) performs the internal audit functions. The audit
committee makes recommendations on the selection, appointment, reappointment, and removal of the head of internal
audit and should monitor management's responsiveness to the audit committee's findings and recommendations. Given
the changes that the company has undergone in recent years, the current audit committee notes that such mission has
not always been completed in the past. For this reason, the current audit committee has requested that this mission be
the subject of a preliminary process of confirming its scope and responsibilities which has started at the end of 2021
and is still ongoing.
- The audit committee should review the internal auditor's work program, having regard to the complementary roles of
the internal and external audit functions. It should receive internal audit reports or a periodic summary thereof. In the
past, no periodicity had been agreed in this regard. For this reason, a program of internal audits and presentations
within the committee has been planned. If needed, the audit committee reviews the effectiveness of the internal audit.
Given the changes the company has undergone in recent years, the current audit committee notes that such review
has not always been completed in the past. The current audit committee will therefore undertake to define the evaluation
criteria and analyses to be carried out for this purpose. The first review that will result from these analyses has been
rescheduled before 2022.
- For the sake of clarity, and contrary to what we have done in 2017, we have complied with the Code of Corporate
Governance recommendation that shares cannot be awarded definitively, and that options cannot be exercised less
than three years after they are awarded in the warrant plans issued in 2021 (such as in 2020).
17 FINANCIAL ANNUAL REPORT EVS - 2021
REMUNERATION REPORT
1. THE DIRECTORS
1.1. Remuneration policy
Non-executive Directors receive an annual fixed amount, eventually on a pro rata basis. This fixed amount includes the
participation to 6 meetings per year. The non-executive Directors also receive, as remuneration for the execution of their
mandate, a fixed amount for each Board meeting (above 6 meetings per year) and special committee meeting attended.
The policy and the remuneration of the Directors are approved by the Ordinary General Meeting. The Ordinary General
Meeting of May 2016 unanimously approved the increase of the remuneration of the Board of Directors, proposed after an
analysis made with comparable companies, and with the aim of professionalizing even more the governance of the company.
Since the Ordinary General Meeting of May 2016 (with effect as of January 1, 2016), the remuneration is fixed as follows
(EUR):
Fixed amount
Variable amount linked to
attended meetings
Other
4
Board of
Directors
Special
committees
Board of
Directors
Attendance
to a Special
committees
Non-executive
Innoconsult bvba,
represented by Martin
DE PRYCKER
Independent Director
20,000 covering
up to 6 meetings
per year.
1,500 above 6
meetings for a full
year of presence
1,000 per
attendance
7 Capital sprl,
represented by
Chantal DE VRIEZE
Independent Director
20,000 covering
up to 6 meetings
per year.
1,500 above 6
meetings for a full
year of presence
1,000 per
attendance
Acompany You,
represented by
Anne CAMBIER
Independent Director
20,000 covering
up to 6 meetings
per year.
2,000 being
Chairman of the
Remuneration
Committee
1,500 above 6
meetings for a full
year of presence
1,000 per
attendance
Philippe MERCELIS
Independent Director
20,000 covering
up to 6 meetings
per year.
2,000 being
Chairman of the
Audit Commitee
1,500 above 6
meetings for a full
year of presence
1,000 per
attendance
The House of Value –
Advisory & Solutions BV,
represented by Johan
DESCHUYFELEER
Independent Director
40,000 covering
up to 6 meetings
per year.
1,500 above 6
meetings for a full
year of presence
1,000 per
attendance
Executive
Michel COUNSON
Managing Director
20 000 covering
up to 6 meetings
per year.
The fixed amounts are adjusted pro rata temporis according to the appointment/resignation date during the year
The Ordinary General Meeting of May 2021 approved the remuneration policy as set forth above.
4
The Ordinary General Meeting of May 2020 unanimously approved the granting to the members of the Board of Directors of an additional global remuneration
of EUR 15,000 per year for all members of the Board of Directors for the performance of exceptional tasks in the context of their function as director as validated
by the Board of Directors (such as, in particular, interviews, preparation meetings and other internal meetings other than meetings of the Board of Directors or
of a Committee (Audit, Remuneration or Strategic)). This amount will be allocated by the Board of Directors among its members according to the number and
importance of exceptional missions actually carried out by each of them.
18 FINANCIAL ANNUAL REPORT EVS - 2021
For the sake of clarity:
- The Company and its subsidiaries do not provide any personal loans, guarantees and such to the members of the
Board of Directors or the Executive Team. If Directors are charged with special tasks or projects, they are entitled to
receive an appropriate remuneration for those activities, which is notably the case for the Executive Directors.
- No termination compensation is provided for non-executive Directors at the end of their mandate. Non-executive
directors do not receive any shares, warrants or stock options. Non-executive directors do not receive any performance-
based compensation and retirement benefits.
1.2. Remuneration report in 2021
In 2021, Directors received the following compensation for the execution of their mandate (EUR):
Fixed amount
Variable amount linked to
attended meetings
Other
10%
Reduct.*
TOTAL
2021
Board of
Directors
Special
committees
Board of
Directors
Special
committees
Non-executive
Innoconsult bvba,
represented by
Martin DE PRYCKER
Independent
Director
20,000
1,500
9,000
1,500
-800
31,200
7 Capital sprl,
represented by
Chantal DE VRIEZE
Independent
Director
20,000
1,500
4,000
-600
24,900
MMBu, represented by
Patricia LANGRAND
Independent
Director
6,667
-500
6,167
Acompany You,
represented by
Anne CAMBIER
Independent
Director
20,000
2,000
1,500
5,000
500
-750
28,250
Philippe MERCELIS
Independent
Director
13,333
1,500
6,000
1,500
-683
21,650
The House of Value –
Advisory & Solutions BV,
represented by Johan
DESCHUYFELEER
Independent
Director
40,000
1,500
9,000
500
-1.300
49,700
Executive
Michel COUNSON
Managing
Director
20,000
-500
19,500
TOTAL
181,367
*During the board meeting of 8 December 2020, the Directors approved a 10% reduction of their remuneration for a 4-month period as from
January 2021 to April 2021.
As of December 31, 2021, based on the last statements received by the company and the latest modification of the
shareholders’ register, the members of the Board of Directors held, directly or indirectly, 835,906 shares of a total of
14,327,024, or 5.8% of the capital.
19 FINANCIAL ANNUAL REPORT EVS - 2021
1.3. Comparative information on the evolution of compensation and company performance
The below table shows the evolution of the compensation over a period of 5 years.
In €
2017
2018
2019
2020
2021
Remuneration Evolution
Average remuneration of employees
72,122
74,778
81,572
78,056
87,327
EVS Performance
EBIT (€ million)
34,9
28,1
23,0
5,7
37,1
ROCE
36,3%
54,7%
27,3%
8,1%
38,0%
Free cash-flow (€ million)
25,5
32,0
21,2
9,5
38,2
As defined by the law of April 28, 2020, the Group going forward will publish the ratio between the highest paid member of
the management (CEO) and the lowest paid employee in Belgium. For 2021 this ratio is 11x.
Lowest paid employee is defined as a full-time employee in Belgium who has worked for a full year and holds the lowest
base salary at year end, actual total remuneration received by such employee is considered in the calculation of the ratio.
Publishing of this ratio is a new practice required by the law and as such it will be assessed and evaluated in the future
considering the evolution of the ratio.
2. THE CEO AND THE OTHER MEMBERS OF THE EXECUTIVE MANAGEMENT
2.1. Remuneration policy
2.1.1. Our vision
“We prefer fairness over equality”. At EVS, our goal is not to offer equal but fair packages. We offer everyone an
individualized, fair, and competitive compensation package that reflects their performance and level of responsibility. We
want to stay innovative, and to continue to listen to our Team Members while being aligned with our Employer Caring
strategy. We want to take care of our Team Members the same way we would like them to take care of our customers.
The remuneration policy aims to attract, maintain, and motivate competent and professional employees. For this reason,
the amount of the remuneration is determined as a function of the tasks and responsibilities. The Remuneration Committee
assesses annually the total remuneration and organizes additional meetings when needed. The level of remuneration is
also compared to external references, either through studies or through external counsels.
At EVS, we are using Hay Group’s Job Evaluation Methodology to grade functions and benchmark these against market
practices. Our current job grading system has been initiated a few years ago and is updated regularly. The HR department
requests Korn Ferry Hay Group to perform regularly a sanity check of the existing classification in order to ensure a correct,
consistent and solid basis for classification related applications (e.g. reward, mobility, recruitment, …), and to include reward
benchmark information. At EVS, comparisons to the market are made with the median of the market, rather than the
average. To be at a fair level of remuneration compared to the market, we consider a fair remuneration in a range between
80% and 120% of the market median. The benchmarks used are chosen according to the sector, the size of the companies
and the location. We want to make sure that our Reward strategy makes our Team Members feeling concerned by EVS’
long-term strategy.
20 FINANCIAL ANNUAL REPORT EVS - 2021
2.1.2. Compensation components of the CEO and other members of the Executive Management
2.1.2.1 Overview
Base
compensation
(BC)
STI*
STI
Metrics*
Warrants
Other
benefits**
Insurance and
pension
contributions**
EBIT
Performance
Order
Intake
CEO
EUR 353,000
EUR
141,200
(40%
of BC)
100%
-
-
33,000
None
N/A
CCO
40%
of BC
35%
10%
55%
Max. 20%
of BC
None
N/A
CFO
20%
of BC
70%
30%
-
Max. 20%
of BC
None
N/A
CMO
20%
of BC
70%
30%
-
Max. 20%
of BC
None
N/A
CPO
20%
of BC
70%
30%
-
Max. 20%
of BC
None
N/A
CTO
20%
of BC
70%
30%
-
Max. 20%
of BC
None
N/A
*Short Term Incentive (STI) - The Board of Directors selected STI metrics, as proposed by the Nomination and Remuneration
Committee, which are key to deliver EVS’ strategy objectives: the annual EBIT, Performance and Order Intake Targets are
validated by the Board of Directors at the beginning of the relevant financial year and the achievements are followed up
quarterly and assessed annually. The assessment period is the last fiscal year, and the STI amount is determined at the
end of the first quarter of the next year. These criteria are evaluated by the Board of Directors annually and adapted when
necessary. The annual EBIT and Order Intake targets are ambitious but achievable to enhance shareholder value. EVS
Management considers that it would be detrimental for EVS business (especially with regard to the competition) to disclose
the details of the EBIT and Order Intake targets but both targets are in line with our revenue guidance publicly disclosed at
the beginning of the year in our financial press release. The Performance targets typically relate to: strategy, customers,
EVS Team members management and sustainability.
**Other benefits and pension contributions – The CEO and the other member of the Executive Management are
management companies which provide their services on an independent basis, which implies that they do not benefit from
other benefits, insurance and pension contributions such as our employees do.
2.1.2.2 STI payout
a. CEO
EBIT Target
Below Threshold
Threshold
On-Target
Cap
Achievements
<80%
80%
100%
120%
Payout
0%
50%
100%
150%
STI Maximum opportunity: 60% of the Base Compensation (i.e. 211,800)
b. CCO
EBIT Target
Below Threshold
Threshold
On-Target
Cap
Achievements
<80%
80%
100%
120%
Payout
0%
50%
100%
150%
Performance Target
On-Target
Cap
Achievements
0%
50%
100%
125%
150%
Payout
0%
50%
100%
125%
150%
Order Intake Target
Below Threshold
Threshold
On-Target
Cap
Super Cap
Achievements
<80%
80%
100%
110%
120%
Payout
0%
30%
100%
145%
200%
STI Maximum opportunity: 71% of Base Compensation
21 FINANCIAL ANNUAL REPORT EVS - 2021
c. CFO, CTO, CPO, CMO
EBIT Target
Below Threshold
Threshold
On-Target
Cap
Achievements
<80%
80%
100%
120%
Payout
0%
50%
100%
150%
Performance Target
On-Target
Cap
Achievements
0%
50%
100%
125%
150%
Payout
0%
50%
100%
125%
150%
STI Maximum opportunity: 30% of Base Compensation
There is no advance for the variable remuneration of the members of the executive management.
2.1.2.3 Consequences on the STI in case of termination of the services agreement of the CEO and other members
of the Executive Management
In case of termination of the services agreement of the CEO and other members of the Executive Management, the STI is
not due, except in case of termination (i) by EVS without cause (or for unavailability of the provider due to medical reason
or death) or (ii) by the provider with cause, in which both cases, the provider shall remain entitled to the payment of the STI:
- related to the fiscal year preceding the year during which the written notice of termination shall have been given;
- related to the fiscal year during which the written notice of termination shall have been given only if the written notice is
given after July 1 of such fiscal year, and only on a pro rata basis (or when the cause is for unavailability of the provider
due to medical reason or death – 50% of such STI is due if the written notice is given before July 1 of such fiscal year
or 100% of such STI is due if the written notice is given after July 1 of such fiscal year.
2.2. Remuneration report in 2021
2.2.1. Overview
Base compensation (BC)
STI payout 2021 –
Total Company Cost
STI Metrics*
CEO
EUR 346,879
EUR 211,800
STI Cap – 150%
Other members of the
Executive Committee
EUR 1,419,556 *
Including the termination
indemnities paid to Sbasyva, Srl,
represented by Yvan ABSIL,
former CFO (EUR 139,152) and
of Seremia Srl, represented by
Axel BLANCKAERT, former CTO
(EUR 150,268) as agreed per the
termination provisions of their
respective services agreements
EUR 437,099 *
* including the variable
compensation granted to
Sbasyva, Srl, represented by
Yvan ABSIL, former CFO and to
Seremia Srl, represented by Axel
BLANCKAERT, former CTO as
per the provisions of their
services agreements.
EBIT and/or Order Intake and/or
Performance
Payout being more than 150% of
the global On-Target-Earning STI
on average
2.2.2. CEO
InnoVision BV, represented by Serge Van Herck, CEO received as Base Compensation a total amount of EUR 346,879 and
a STI of EUR 211,800 for the year 2021 (which corresponds to its STI cap, i.e. 150% of the CEO’s On-Target-Earnings STI
equivalent to, EUR 141,200)
2.2.3. Other members of the executive management
For fiscal year 2021, the other members of the executive management were:
- Sbasyva, Srl, represented by Yvan ABSIL, CFO – contract ended at 4
th
March 2021
- Seremia Srl, represented by Axel BLANCKAERT, CTO – contract ended at 16
th
December 2021
- Ikaro Srl, represented by Nicolas BOURDON, CMO
- RCG Srl, represented by Quentin GRUTMAN, CCO
- M2C Srl, represented by Pierre MATELART, CPO
- WeMagine Srl, represented by Veerle DE WIT, CFO
22 FINANCIAL ANNUAL REPORT EVS - 2021
The other members of the executive management received, in 2021, a global Base Compensation of EUR 1,419,556 (total
company cost), including the termination indemnities paid to Sbasyva, Srl, represented by Yvan ABSIL, former CFO (EUR
139,152) and to Seremia Srl, represented by Axel BLANCKAERT, former CTO (EUR 150,268), as agreed per the termination
provisions of their respective services agreements (equivalent to 110 days of provision of services to EVS), and a global
variable compensation of EUR 437,099 (total company cost and including the variable compensation granted to Sbasyva,
Srl, represented by Yvan ABSIL, former CFO and to Seremia Srl, represented by Axel BLANCKAERT, former CTO as per
the provisions of their services agreements), which represents more than 150% of the global On-Target-Earnings STI on
average.
2.2.4. Warrants
Warrants are awarded to the CEO and the other members of the executive management after the Board of Directors’
approval upon the recommendation of the Nomination and Remuneration Committee based on the results of the company
and their performance.
In 2021, the CEO received 33,000 warrants and the other members of the executive management, received warrants as
follows in accordance with the 2021 EVS Warrants Plan:
- Axel BLANCKAERT : 10,000 warrants
- Nicolas BOURDON : 7.500 warrants
- Quentin GRUTMAN : 10,000 warrants
- Pierre MATELART : 7,500 warrants
The main features of the 2021 Warrants Plan were as follows:
- Grant date: 22 June 2021
- Vesting period: 3 calendar years (until 31 December 2024)
- First possible day of exercise: 1 January 2025
- Term of options: 6 years (expiration date of warrants: 21 June 2027)
- Strike price: 18,21 EUR (Average of EVS close share price 30 days before 22 June 2021)
3. CONFLICT OF INTEREST PROCEDURES
During the year under review, there was no conflict of interest according to the specific procedure provided for under Article
7:96 of the Belgian Company and Association Code.
23 FINANCIAL ANNUAL REPORT EVS - 2021
RISKS AND UNCERTAINTIES
Investing in the stock of EVS Broadcast Equipment (“EVS”) involves risks. As requested by the EU Regulations and the
Belgian law (Belgian Company and Association Code and Royal Decree of 14 November 2007), you and any investor should
carefully consider the following risk factors and all other information contained in this annual report before purchasing our
common stock. If any of the following risks occurs, our business, financial condition or results of operations could be seriously
harmed. In that case, the trading price of our common stock could decline, and you may lose some or all of your investment.
We distinguish primary and secondary risks.
1. PRIMARY RISKS
- We face competition and if we are unable to compete effectively, we may experience decreased sales or pricing
pressure, which would negatively impact our future operating results.
- We derive a substantial majority of our revenues from customers in the broadcast industry that use our products for
both production and transmission of television content. If we fail to generate continued revenues from this market or if
there is a downturn in this market, our revenues could decline.
- We depend on sales of our XT and XS video server products. If market demand for these products does not continue,
our future operating results could be harmed.
- Our business may be harmed if our contract manufacturers are not able to provide us with adequate supplies of our
products: this is a growing concern with the current shortage in the market of electronic components.
- If we experience delays, shortages or quality issues from our component suppliers, our product sales could suffer.
- Our future success depends on our ability to attract and retain key personnel, and our failure to do so could harm our
ability to grow our business.
- The average selling price of our products may decrease which could negatively impact our operating results.
- Our end users require a high degree of product reliability. If we are unable to provide high quality products, our
relationships with end users could be harmed.
- If we fail to develop and introduce new products or enhancements to existing products in a timely manner, or if we fail
to manage product transitions, we could experience decreased revenues in the future.
- If we fail to respond to technological changes and evolving industry standards, our products could become obsolete or
less competitive in the future.
- If our products do not interoperate with other systems, installations could be delayed or cancelled.
- Our products are highly complex and may contain undetected software or hardware errors, which could harm our
reputation and future product sales.
- If we fail to manage our growth effectively, our business could be harmed.
- We cannot exclude that the impact of the on-going coronavirus pandemic and although less and less probable, a global
re-lockdown resulting from another global wave, might severely impact our revenues and cash flow from operations,
therefore potentially jeopardizing our going-concern assumption. The coronavirus pandemic could also result in the
cancellation, or significant changes in the scope of the 2022 big events, impacting EVS ability to recognize all of the
order back log related to these big events. EVS is constantly monitoring the Covid-19 indicators to anticipate the
possible impacts on its business.
24 FINANCIAL ANNUAL REPORT EVS - 2021
2. SECONDARY RISKS
- We may not be able to continue to maintain or increase our profitability and our recent growth rates may not be indicative
of our future growth.
- Our quarterly operating results have fluctuated in the past and may continue to fluctuate in the future, which could cause
our stock price to decline.
- We have significant international operations and derive most of our revenues from international customers, which
exposes us to significant risks, including risks relating to currency fluctuations.
- Our future financial performance depends on growth in the markets for video servers and digital tapeless solutions. If
these markets do not continue to grow at the rate that we forecast, our operating results would be materially and
adversely impacted.
- Investment processes of our clients can be lengthy and unpredictable, which may make it difficult to predict sales in
any particular quarter.
- Our use of open-source software and other third-party technology and intellectual property could impose limitations on
our ability to market our products.
- Failure to protect our intellectual property could substantially harm our business.
- If a third party asserts that we are infringing its intellectual property, whether successful or not, it could subject us to
costly and time-consuming litigation or expensive licenses, which could harm our business.
- We are subject to governmental export controls that could subject us to liability or adversely affect our ability to sell our
products in international markets.
- We are subject to environmental and other health and safety regulations that may increase our costs of operations or
limit our activities.
- We may expand through acquisitions of, or investments in, other companies, each of which may divert our
management's attention, result in additional dilution to stockholders or use resources that are necessary to operate
other parts of our business.
- The issuance of new accounting standards or future interpretations of existing accounting standards could adversely
affect our operating results.
- Maintaining and improving our financial controls and the requirements of being a public company may strain our
resources and divert management's attention.
- We or one of our affiliates might require additional capital to support business operations, and this capital might not be
available on acceptable terms, or at all.
The Board of Directors
Liège, April 1, 2022
25 FINANCIAL ANNUAL REPORT EVS - 2021
CERTIFICATION OF RESPONSIBLE PERSONS
Serge Van Herck, CEO
Representing a BV
Certify that, based on their knowledge,
a) the full financial statements, prepared in accordance with the International Financial Reporting Standards (IFRS)
adopted by the European Union, fairly present in all material respects the financial condition and results of
operations of the issuer and the companies included in the consolidation,
b) the management report fairly presents the important events and related parties transactions of 2021, including their
impact on the full financial statements, and a description of the existing risks and uncertainties for the remaining
months of the fiscal year.
26 FINANCIAL ANNUAL REPORT EVS - 2021
CONSOLIDATED FINANCIAL
STATEMENTS
CONSOLIDATED INCOME STATEMENT
(EUR thousands)
Notes
2021
2020
Revenue
3
Cost of sales
6.2
-41,764
-29,554
Gross profit
6.2
Gross margin %
69.6%
66.5%
Selling and administrative expenses
6.4
-32,392
-27,486
Research and development expenses
6.3
-27,088
-24,004
Other income
6.6
Other expenses
6.6
-114
-1,217
Profit-sharing plan and warrants
6.4
-232
-352
Operating profit (EBIT)
Operating margin (EBIT) %
27.0%
6.4%
Interest revenue on loans and deposits
6.5
Interest charges
6.5
-893
-833
Other net financial income / (expenses)
6.5
-860
Share in the result of the enterprise accounted for
using the equity method
5
Profit before taxes
Income taxes
7
-2,797
Net profit
Attributable to:
Non-controlling interest
Share of the group
EARNINGS PER SHARE (in number of shares
and in EUR)
8
2021
2020
Weighted average number of subscribed shares
Weighted average fully diluted number of shares
Basic earnings – share of the group
Fully diluted earnings – share of the group
(1)
27 FINANCIAL ANNUAL REPORT EVS - 2021
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
(EUR thousands)
2021
2020
Net profit
Other comprehensive income of the period
Currency translation differences
-491
Total of recyclable elements
-491
Gains / (losses) on remeasurement of defined
benefit obligations, net of tax
-412
-78
Total of non-recyclable elements, net of tax
-412
-78
Total other comprehensive income of the
period, net of tax
-569
Total comprehensive income for the period
Attributable to :
Non controlling interest
Share of the group
(1) The diluted earnings per share does include:
a. 187,000 warrants attributed in December 2020 of which, 159,000 warrants are outstanding at the end of the year with an exercise price below the share
price. These 159,000 warrants have maturity of October 2026; and
b. 158,600 warrants attributed in June 2021 and outstanding at the end of the year with an exercise price below the share price. These 158,600 warrants
have maturity of June 2027.
The diluted earnings per share does not include 138,832 warrants outstanding at the end of 2021 as these are not exercisable given the exercise prices
were above the share price.
28 FINANCIAL ANNUAL REPORT EVS - 2021
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION (BALANCE SHEET)
ASSETS
(EUR thousands)
Notes
Dec 31, 2021
Dec 31, 2020
Non-current assets:
Goodwill
10
Other intangible assets
11
Lands and buildings
12
Other tangible assets
12
Investment accounted for using equity method
5
Other amounts receivable
15
Deferred tax assets
7.3
Financial assets
13
Total non-current assets
Current assets:
Inventories
14
Trade receivables
15
Other amounts receivable, deferred charges and accrued income
15
Financial assets
16
Cash and cash equivalents
17
Total current assets
Non-current assets classified as held for sale
18
Total assets
EQUITY AND LIABILITIES
(EUR thousands)
Notes
Dec 31, 2021
Dec 31, 2020
Equity
Capital
19
Reserves
19.6
Treasury shares
19.5
-17,776
-17,835
Total consolidated reserves
Translation differences
19.7
Equity, attributable to the owners of the parent
Non-controlling interest
Total equity
Provisions
21
Deferred taxes liabilities
7.3
Financial debts
20
Other debts
6.4.1
Non-current liabilities
Financial debts
20
Trade payables
22
Amounts payable regarding remuneration and social security
23
Income tax payable
Other amounts payable, advances received, accrued charges and deferred
income
22
Current liabilities
Total equity and liabilities
29 FINANCIAL ANNUAL REPORT EVS - 2021
CONSOLIDATED STATEMENT OF CASH
FLOW
Notes
2021
2020
Cash flows from operating activities
Net profit, share of the group
Adjustment for:
-Other income
- Depreciation and write-offs on tangible and intangible assets
11, 12
- Write-off on goodwill
10
- Profit-sharing plan and warrants
6.4
- Provisions
21
-337
- Income tax expenses
7
-2,833
-Interest expense (+) / income (-)
6.5
-412
-Share of the result of entities accounted for under the equity method
-193
-339
Adjustment for changes in working capital items:
-Inventories
14
-3,372
-3,648
-Trade receivables
15
-10,061
-Other amounts receivable, deferred charges and accrued income
15
-430
-1,206
-Trade payables
22
-1,446
-Amounts payable regarding remuneration and social security
-1,671
-Other amounts payable, advances received, accrued charges and deferred income
-263
-Conversion differences
Cash generated from operations
Income taxes received / (paid)
7
-1,112
Net cash from operating activities
Cash flows from investing activities
Purchase of intangible assets
-234
-53
Purchase of tangible assets (lands and building and other tangible assets)
12
-1,357
-2,264
Disposal of tangible assets
Business acquisitions
-10,255
Other financial assets
-35
Net cash used in investing activities
-1,588
-12,400
Cash flows from financing activities
Reimbursement of borrowings
20
-1,086
-4,590
Proceeds from new borrowings
20
Payment of lease liabilities
20
-3,417
-3,224
Interests paid
6.5
-566
-1,645
Interests received
6.5
Dividend received from investee
Dividend paid - interim dividend
9
-6,701
Dividend paid - final dividend
9
-6,699
Other allocation
-300
Acquisition (-) / sale (+) of treasury shares
19.5
-7,908
Increase in shareholders’ equity
Net cash used in financing activities
-18,456
-12,110
Net increase in cash and cash equivalents
-5,351
Net foreign exchange difference
-991
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
30 FINANCIAL ANNUAL REPORT EVS - 2021
CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY
(EUR thousands)
Capital
Reserves
Treasury
shares
Currency
translation
differences
Equity,
share of
the group
Non-
controlling
interest
Total
Equity
Balance as at January 1, 2020
-9,927
Profit or loss
Other comprehensive income
-78
-491
-569
-569
Total comprehensive income for
the period
-491
Increase in shareholders’ equity
Share-based payments
Operations with treasury shares
-7,908
-7,908
-7,908
Final dividend
Interim dividend
Other allocation
-300
-300
-300
Balance as per December 31,
2020
-17,835
(EUR thousands)
Capital
Reserves
Treasury
shares
Currency
translation
differences
Equity,
share of
the group
Non-
controlling
interest
Total
Equity
Balance as at January 1, 2021
-17,835
Profit or loss
Other comprehensive income
-412
Total comprehensive income for
the period
Increase in shareholders’ equity
Share-based payments
Operations with treasury shares
Final dividend
-6,699
-6,699
-6,699
Interim dividend
-6,701
-6,701
-6,701
Other allocation
-63
-63
-63
Balance as per December 31,
2021
-17,776
31 FINANCIAL ANNUAL REPORT EVS - 2021
NOTES TO THE IFRS CONSOLIDATED
FINANCIAL STATEMENTS
1. INFORMATION ABOUT THE COMPANY
1.1. Identification
Liege Science Park
VAT: BE 0452.080.178
National Registered Number: BE0452.080.178
www.evs.com
company governed by Belgian law. EVS Broadcast Equipment SA is a company whose shares are publicly traded. It has its
head office in Belgium.
The consolidated financial statements of EVS Broadcast Equipment SA at December 31, 2021 were established by the
Board of Directors of April 1, 2022. The Board of Directors is authorized to amend the consolidated financial statements up
until the Annual General Meeting of Shareholders, scheduled to be held on May 17, 2022.
The financial year starts on January 1 and ends on December 31 of each year. The consolidated financial statements are
reported in euros (EUR).
1.2. Public information
The company’s financial statements are filed with the “Banque Nationale de Belgique”. Corporate by-laws and special
reports required by the Belgian Company and Association Code can be obtained from the Commercial Court Registry in
Liège and from the Belgian Official Bulletin “Moniteur Belge” and its related website
(“http://www.ejustice.just.fgov.be/tsv/tsvf.htm”). These documents, as well as annual statements and any written information
to shareholders, are also available at the company’s registered office. Financial information is available on the Internet at
www.evs.com.
1.3. Corporate purpose of the company
2. SUMMARY OF THE IFRS SIGNIFICANT ACCOUNTING PRINCIPLES
2.1. Basis of presentation of the financial statements
The consolidated accounts of the group 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 accounts are presented in euros (EUR) and all the values are rounded figures to the nearest
thousand unless otherwise indicated.
2.2. Statement of compliance
The consolidated accounts of EVS Broadcast Equipment SA and of its subsidiaries have been prepared in accordance with
the International Financial Reporting Standards (IFRS) adopted by the European Union.
2.3. New standards, interpretations and amendments
During the current financial year, the group applied all the new and revised Standards and Interpretations issued by the
International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee
(IFRIC) of the IASB, that are relevant to its operations and effective for the accounting year starting on January 1
st
, 2021.
The group has not applied any new IFRS requirements that have been published but that are not yet effective.
32 FINANCIAL ANNUAL REPORT EVS - 2021
Standards and interpretations applicable for the annual period beginning on or after 1 January 2021:
- Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform – Phase 2.
- Amendment to IFRS 16 Leases: COVID-19-Related Rent Concessions (applicable for annual periods beginning on or
after 1 June 2020).
- Amendments to IFRS 4 Insurance Contracts – Extension of the Temporary Exemption from Applying IFRS 9 to 1
January 2023 (applicable for annual periods beginning on or after 1 January 2021).
The application of the above standards, interpretations and amendments did not have a significant impact on the Group’s
financial statements.
Standards and interpretations published, but not yet applicable for the annual period beginning on 1 January 2021:
- Amendment to IFRS 16 Leases: COVID-19-Related Rent Concessions beyond 30 June 2021 (applicable for annual
periods beginning on or after 1April 2021).
- Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use (applicable for annual periods
beginning on or after 1 January 2022).
- Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets: Onerous Contracts — Cost of Fulfilling
a Contract (applicable for annual periods beginning on or after 1 January 2022).
- Amendments to IFRS 3 Business Combinations: Reference to the Conceptual Framework (applicable for annual periods
beginning on or after 1 January 2022).
- Annual Improvements to IFRS Standards 2018–2020 (applicable for annual periods beginning on or after 1 January
2022).
- IFRS 17 Insurance Contracts (applicable for annual periods beginning on or after 1 January 2023).
- Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current
(applicable for annual periods beginning on or after 1 January 2023, but not yet endorsed in the EU).
- Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting
Policies (applicable for annual periods beginning on or after 1 January 2023, but not yet endorsed in the EU).
- Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting
Estimates (applicable for annual periods beginning on or after 1 January 2023, but not yet endorsed in the EU).
- Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction
(applicable for annual periods beginning on or after 1 January 2023, but not yet endorsed in the EU).
It is not expected that the application of the above standards, interpretations and amendments will have a significant impact
on the financial statements.
2.4. Summary of changes in accounting policies
The Company consistently used the same accounting policies throughout all periods presented in its IFRS financial
statements. There is no impeding change in accounting policy, at the exception of the first implementation of new norms,
interpretations and amendments as described in note 2.3.
2.5. Consolidation principles
The consolidated financial statements include the financial statements of EVS Broadcast Equipment SA and of its
subsidiaries prepared at December 31 of each year. The financial statements of the subsidiaries are prepared on the same
date and in accordance with identical accounting principles. All the intra-group balances, intra-group transactions as well as
the income, the expenses and the latent results included in the carrying amount of assets, generated by internal transactions,
are eliminated in full.
2.6. Subsidiaries
The subsidiaries are companies controlled by EVS, for which the following are met: (a) EVS has the power (legally or de
facto) over the investee; (b) EVS is exposed or entitled to variable returns from its involvement with the investee; and (c)
EVS’s ability to use its power over the investee to affect the amount of returns it gets.
33 FINANCIAL ANNUAL REPORT EVS - 2021
There is a presumption that a majority of voting rights results in control. To support this presumption and when EVS has
less than a majority of the voting or similar rights of an investee, EVS considers all relevant facts and circumstances in
assessing whether it has power over an investee, including: (a) The contractual arrangement(s) with the other vote holders
of the investee, (b) Rights arising from other contractual arrangements, (c) EVS’s voting rights and potential voting right
The subsidiaries are consolidated as from the acquisition date, which corresponds to the date on which the group took over
control and up until such date as the exercise of this control ceases.
All companies over which control is exercised directly or indirectly are fully consolidated.
When a change occurs in the controlling power within a subsidiary, the consolidated accounts integrate the profit and loss
up to the date which EVS Broadcast Equipment SA loses control.
2.7. Interests in joint ventures and in associates
Joint ventures (in accordance with IFRS 11 provisions) as well as associates are recognized according to the equity
accounting method.
These investments are carried in the balance sheet at the lowest value between that obtained by the equity method and the
recoverable value. The group’s share in the profit and loss of the joint ventures and of the associates is entered into the
profit and loss account, in a distinct line “Share in the result of the enterprise accounted for using the equity method”.
The financial statements of the joint ventures and of the associates are used by the group in order to apply the equity
accounting method.
The financial statements of the joint ventures and of the associates are prepared on the same reporting date as the parent
company, on the basis of similar accounting principles.
2.8. Summary of significant judgements, assumptions and estimates
2.8.1. Judgements
The preparation of the financial statements in accordance with the group’s accounting methods, requires management to
make judgments, estimates, and assumptions, , some of which have a significant effect on the amounts recognized in the
financial statements:
Research and Development costs: the group has considered that it cannot make a clear distinction between the research
phase and the development phase of a project developed internally. Moreover, the group sells products in a market that is
subject to rapid technological change, new product development and changing customer needs. Accordingly, the group has
concluded that it cannot determine technological feasibility until the development stage of the product is nearly complete.
For these reasons, R&D is expensed, not capitalized.
2.8.2. Assumptions and estimates
In order to prepare the financial statements in accordance with the IFRS standards, it is up to management to establish a
certain number of estimates and assumptions in order to determine the amounts reported in the financial statements and
their notes. 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 and the determination of the percentage of
completion of construction works.
2.9. Foreign currency translation
Each entity of the group determines its own functional currency and the elements included in the financial statements of
each of the entities are measured by using this functional currency. The functional currency of EVS Broadcast Equipment
SA as well as all of the subsidiaries is the euro, except for the EVS Inc. subsidiary, whose functional currency is the US
dollar and Axon Digital Design LTD. subsidiary whose functional currency is the GBP.
The presentation currency of the financial statements of EVS Broadcast Equipment SA is the euro.
2.9.1. Financial statements of foreign companies
For all the subsidiaries, except for EVS Inc. and Axon Digital Design LTD, transactions in foreign currencies are initially
recorded in the functional currency at the exchange rate in force on the transaction date. On the reporting date, the monetary
assets and liabilities denominated in foreign currencies are converted into the functional currency at the exchange rate in
34 FINANCIAL ANNUAL REPORT EVS - 2021
force on the reporting date. The non-monetary items in foreign currency that are measured at the historical cost are
converted at the exchange rates in force on the initial transaction dates. All the exchange differences are recognized in
consolidated income statement.
For the EVS Inc. subsidiary that operates in USD and Axon Digital Design LTD. subsidiary that operates in GBP, on the
reporting date, the assets and liabilities are converted in euros (EUR) which is the functional currency of the parent company,
at the exchange rate in force on the reporting date, their equity is converted at historical exchange rate and their income
statement is converted at the average exchange rate of the period. Any exchange differences resulting from this conversion
are recognized in other comprehensive income and then shown under a separate heading of the shareholders’ equity.
2.9.2. Transactions in foreign currencies
The transactions in foreign currencies are recognized at the exchange rate in force on the transaction date. The monetary
assets and liabilities denominated in foreign currencies are converted at the exchange rate in force on the reporting date.
The exchange gains or losses resulting from monetary transactions and the conversion of monetary assets or liabilities are
recognized in the income statement.
The non-monetary assets and liabilities are converted at the exchange rate of the foreign currency in force on the transaction
date.
2.9.3. Exchange rates used
USD / EUR exchange rate
Twelve months average
At December 31 (closing rate)
2021
1.1830
1.1326
2020
1.1422
1.2271
Variation
GBP / EUR exchange rate
Twelve months average
At December 31 (closing rate)
2021
0.8599
0.8403
2020
0,8897
0,8990
Variation
2.10. Business combinations and goodwill
Business acquisitions are accounted using the purchase method. The counterpart, transferred in connection with a business
combination, is measured at fair value, which is calculated as the sum of the fair values at the acquisition date of the assets
transferred by the group, the liabilities incurred by the group in favor of the former owners of the acquired company and the
part of equity issued by the group in exchange for control of the acquired company. The acquisition-related costs are
generally recognized in profit or loss as incurred.
When consideration transferred by the group as part of a business combination includes assets or liabilities resulting from
a contingent consideration arrangement, the contingent consideration is measured at its fair value at the acquisition date
and included in consideration transferred under the business combination. Changes in the fair value of the contingent
consideration that qualify as measurement period adjustments are recognized retrospectively, with corresponding
adjustment to goodwill. The adjustments of evaluation periods result from additional information about facts and
circumstances that existed at the date of acquisition obtained during the “evaluation period” (maximum of one year from the
acquisition date).
Changes resulting from events after the acquisition date, such as the achievement of an earnings target, are not
measurement period adjustments. In this case, the changes in fair value of contingent consideration meeting the definition
of a financial liability are recognized in profit or loss.
Goodwill is the difference between the cost of an acquisition and the share of the acquirer’s interest in the net fair value of
the identifiable assets, certain liabilities and eventual liabilities. The goodwill is not depreciated but must be reviewed for
impairment, annually or more frequently if events or changes in circumstances indicate that the carrying value may be
impaired, in accordance with IAS 36.
If the share held by the company in the net fair value of the identifiable assets, liabilities and eventual debts of the acquired
company exceeds the cost of the combination, the surplus is immediately recognized in the profit and loss account.
2.11. Intangible assets
Intangible assets acquired other than goodwill are recognized at cost.
Intangible assets with a finite useful life are depreciated on a straight-line basis over the duration of their economic utility
(3 years for software, between 3 and 7 years for the other intangible assets) and reviewed for impairment testing each time
there is a sign of impairment in the intangible asset.
35 FINANCIAL ANNUAL REPORT EVS - 2021
The amortization duration and method are reviewed every year. The carrying amounts of the intangible assets are reviewed
for impairment when events or changes indicate that the carrying amount may not be recoverable.
2.12. Tangible assets
The buildings are recorded at cost. Their value is reduced with depreciation and is not subject to fair value revaluation. The
cost includes fees and costs and capitalized borrowing. Subsidies that have been collected to finance the construction of
the buildings are deducted from the cost of acquisition (see rules on capital subsidies).
Since the commissioning of the building in 2015, the cost of the building, less estimated residual value, is depreciated over
the estimated useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation
method are reviewed at the end of each reporting period of the financial information.
The other tangible assets are recognized in the balance sheet at cost, less accumulated depreciation, and impairment
losses.
The useful life is examined on an annual basis.
The estimated useful lives of the tangible assets are as follows:
- Buildings: between 10 and 30 years
- Vehicles: between 3 and 5 years
- IT equipment: between 3 and 4 years
- Office furniture and equipment: between 3 and 10 years
- Plant and equipment: between 3 and 10 years
- Other tangible assets: between 3 and 4 years
The depreciation is calculated from such time as the asset is available for use.
A tangible asset is no longer recognized in the accounts from such time as it is sold, or no future economic benefit is
expected from the asset. Any gain or loss generated at the time of the sale (calculated as the difference between the sale
price and the net carrying amount of the element) is recognized in the course of the period during which it was sold.
2.13. Impairment of non-financial assets
The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication
exists, or when annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount. An
asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use. The
recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its
recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset.. In determining
fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified,
an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for
publicly traded companies or other available fair value indicators.
The Group bases its impairment calculation on most recent budgets and forecast calculations, which are prepared separately
for each of the Group’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally
cover a period of five years. When appropriate, a long-term growth rate is calculated and applied to project future cash flows
after the fifth year.
Impairment losses of continuing operations are recognized in the statement of profit or loss in expense categories consistent
with the function of the impaired asset.
For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication
that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the Group
estimates the asset’s or CGU’s recoverable amount. A previously recognized impairment loss is reversed only if there has
been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was
recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor
exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized
for the asset in prior years. Such reversal is recognized in the statement of profit or loss.
Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the
goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is
recognized. Impairment losses relating to goodwill cannot be reversed in future periods.
36 FINANCIAL ANNUAL REPORT EVS - 2021
2.14. Non-current assets held for sale
Non-current assets and groups supposed to be sold are classified as held for sale if their carrying amount will be recovered
mainly through a sale transaction rather than through continued use. This condition is fulfilled only when the asset (or group
held for sale) is available for immediate sale in its present condition, only subject to terms that are usual and customary for
sales of such assets (or group held for sale) and that its sale is highly probable. Management must be committed to the sale
and must expect that the sale qualifies for recognition as a completed sale within one year from the date of its classification.
Non-current assets (and groups held for sale) classified as held for sale are measured at the lower of their carrying amount
and fair value less sale costs. They are not depreciated any more.
2.15. Inventories
Inventories are valued at the lower of cost and net realizable value.
Costs incurred in bringing stocks to the right place in the appropriate conditions are recognized as follows for both the current
and previous year:
- the cost of the raw materials is determined using the weighted average price method;
- the cost of the finished goods and work-in-progress is the full cost, which covers all the direct costs (materials and labor)
and a portion of the indirect production costs necessary to take the stock to completion on the reporting date, excluding
the borrowing costs.
The net realizable value is the estimated sale price at the normal rate of the activity, less the estimated costs for the
completion of the goods and the estimated costs necessary to realize the sale.
2.16. Trade and other receivables
Receivables are stated in the balance sheet at original invoice and subsequently are subject to impairment. For the trade
receivables, EVS applies the simplified approach in calculating the impairment in accordance with the expected credit loss
method which requires measuring the impairment based on the lifetime ECL. The Group has established a provision matrix
that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the
economic environment.
2.17. Other current and non-current assets
The other current and non-current assets are recognized at the depreciated cost.
2.18. Cash and cash equivalents
The cash and cash equivalents include cash at bank and in hand and short-term deposits with an original maturity of less
than three months. All the investments are recognized at their nominal value in the financial statements.
2.19. Treasury shares
Sums paid or received during the acquisition or sale of the company’s treasury shares are recognized directly in the equity.
No profit or expense is included in the income statement during the purchase, sale, issuance or cancellation of treasury
shares. The treasury shares are classified under the “treasury shares” heading and are deducted from the total shareholders’
equity.
2.20. Non-controlling interests
Non-controlling interests represent the share of the net profit and loss from the operations and the net assets of a subsidiary
that are allocated to interests not held by the group, whether directly or indirectly via subsidiaries.
2.21. Interest-bearing loans and borrowings
All loans and borrowings are initially recognized at the fair value of the amount received, less the transaction costs to be
allocated directly if they are significant. After the initial recognition, interest-bearing loans and borrowings are measured at
the depreciated cost, using the effective interest rate method. The profits and losses are recognized in the results when the
liabilities are derecognized and via the depreciation process.
2.22. Provisions
Provisions are recognized when the group has a present obligation (legal or implicit) as a result of a past event, if it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the obligation value. When the group is expecting the repayment of the provision, the repayment
is recognized as a different asset but only if this repayment is almost certain.
37 FINANCIAL ANNUAL REPORT EVS - 2021
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows
at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks
specific to the liability.
2.23. Pensions and other post-employment benefits
The post-employment benefits include pensions.
The group operates defined contribution pension schemes. The minimum legal contribution is partially warranted by the
insurance company.
However according to IAS19, Belgian-defined contribution plans that guarantee a specified return on contributions are
defined benefit plans, as the employer is not responsible for the contribution payments, but has to cover the investment risk
until the legal minimum rates applicable.
IAS 19 requires an entity to recognize a liability when an employee has provided service in exchange for employee benefits
to be paid in the future. Therefore, pension provisions are set up. The obligations are measured on a discounted basis
because they are settled many years after the employees render the related service.
2.24. Share-based payment
The group’s employees and management receive a remuneration in the form of a share-based payment, such as a non-
transferable stock option plan (warrants), which allows them to acquire or receive group shares (equity-settled transactions),
or such as payments determined on the value of the share (cash-settled transactions).
2.24.1. Equity-settled transactions
The cost of the stock option plans (warrants) is determined by reference to the fair value of the equity instruments granted,
measured on the grant date. The fair value is determined using the Black & Scholes model, taking into account the
characteristics and conditions governing the granting of the instruments.
The cost of equity-settled transactions is recognized as an expense and is offset by a corresponding increase in
shareholder’s equity over a period that ends on the date on which the beneficiary becomes creditor of the grant.
The dilutive effect of outstanding options is reflected as additional share dilution in the computation of “fully diluted” earnings
per share but only when they have a dilutive effect when the exercise price is below the average share price of EVS ordinary
shares during the fiscal year.
2.25. Revenue from contracts with customers
Revenue is recognized based on the identification of the performance obligations in a contract and when such obligations
are satisfied.
As far as sale of equipment is concerned, this type of contract usually includes a single performance obligation for which
the revenue recognition occurs at a point in time when the transfer of ownership happens, usually at the delivery of the
equipment.
As regards to the work in progress (“WIP”) contracts, which include contracts with a value of more than 500 K€ and with 3
months duration at least, these contracts represent one single performance obligation and as its promises under the
contracts relates to the creation of an asset for the customer the revenue should be recognized over time. The completion
level of the projects is determined on a quarterly basis, depending on the effective level of completion of the specifications.
This is the result of a dialogue between the Business Controller, the Project Manager, the legal department, and the
customer.
Other services, sold separately or in combination with other equipment sale, are considered as a distinct performance
obligation and when the services are sold in combination with the sale of the equipment, the transaction price is allocated
based on the relative stand-alone selling price which is in general the separate price determined in the contract. In most
cases, the revenue recognition occurs over time as the customer simultaneously receives and consumes the benefits
provided by the group.
As regards to warranties, those are mostly assurance-type warranties and will continue to be recognized in accordance with
IAS 37.
Interest revenue is recognized as interest accrues.
The dividends that are received from subsidiaries are recognized when the group has a right to receive that payment.
38 FINANCIAL ANNUAL REPORT EVS - 2021
2.26. Leases (EVS as lessor)
The existence of a lease within an agreement is reported on basis of the substance of the agreement. Lease agreements
are classified depending on the risks and rewards associated with owning the asset are with the lessee or the lessor.
2.26.1. Finance leases
A lease agreement is classified as financial lease if it transfers substantially to the lessee the risks and rewards inherent to
ownership of the asset. When assets are leased out under a finance lease, these assets are derecognized, and the present
value of the future lease payments is recognized as an earned product (within trade receivables). The difference between
the gross total receivable (lease and financing) and the value of the receivable is recognized as unearned finance income.
2.26.2. Operating leases
A lease agreement is classified as operating lease if it doesn’t transfer substantially to the lessee the risks and rewards
inherent to ownership of the asset. When assets are leased out under an operating lease, the asset is included in the
balance sheet based on the nature of the asset. Lease income is recognized over the term of the lease on a straight-line
basis.
2.27. Government grants
2.27.1. European Union grants
Subsidies from the European Union are recognized at their fair value where there is reasonable assurance that they will be
received and that all the conditions will be satisfied.
When the grant relates to an expense item, it is recognized as income over the years necessary to match the grant on a
systematic basis to the costs that it is intended to compensate.
When the grant relates to an asset, the fair value is deducted from the carrying value of the related assets.
2.27.2. Investment grants
Investment grants are recognized when there is reasonable assurance that they will be received and that all the conditions
attached will be satisfied.
Investment grants are recognized after deduction from the assets concerned and they are automatically deducted in the
income statement from the depreciations of these assets.
2.28. Leases (EVS as lessee)
A contract is or contains a lease if it conveys a right to control the use of an identified asset for a period of time in exchange
for a consideration. To determine whether a lease confers the right to control use of a determined asset for a determined
period of time, the Group must evaluate whether, throughout the period of use, it has the right to:
- obtain substantially all of the economic benefits from the use of the asset; and
- direct the use of the asset. To determine the duration of the lease, any options for renewal or termination were
considered required under IFRS 16, taking into account the probability of exercising the option as well as whether it is
under the control of the lessee.
At the start of the lease, the Group recognizes a right-of-use asset and a lease liability.
Right-of-use assets (RoU assets)
The group recognizes right-of-use assets on the date of the start of the contract, i.e. the date on which the asset becomes
available for use. These assets are valued at the initial cost of the lease liability minus amortization and any depreciation,
adjusted to take into account any revaluations of the lease liability. The initial cost of the right-of-use assets includes the
present value of the lease liability, the initial costs incurred by the lessee, rent payments made on the start date or before
that date, minus any incentives obtained by the lessee. These assets are depreciated over the estimated lifetime of the
underlying asset or over the duration of the contract if this period is shorter, unless the group is sufficiently certain of obtaining
ownership of the asset at the end of the contract.
Lease Labilities
The lease liability is valued at the present value of the rent payments that have not yet been paid. The present value of the
rent payments must be calculated using the interest rate implicit in the lease if it is possible to determine that rate. If not, the
lessee must use its incremental borrowing rate. The incremental borrowing rate is the interest rate that the lessee would
have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of similar value
to the right-of-use asset in a similar economic environment.
Over the duration of the contract, the lessee values the lease liability as follows:
- by increasing the book value to reflect the interest on the lease liability;
39 FINANCIAL ANNUAL REPORT EVS - 2021
- by reducing the book value to reflect the rent payments made;
- by revaluing the book value to reflect the new appreciation of the lease liability or amendments to the lease.
Short term leases (duration of 12 months or less) and low-value leases (leases of assets with a value below USD 5.000)
are expensed by the Group when incurred.
2.29. Research and development costs
Research and development costs are expensed when incurred except for the research and developments costs related to
new products or new technologies which are capitalized if those assets are subject to generate future economic benefits
and if the recognition criteria of IAS 38 are met.
The markets in which EVS operates and which are characterized by a rapid evolution of used technologies and the
impossibility to predict future benefits that on-going developments are likely to generate, lead the Board of Directors conclude
that the criteria of IAS38.57 were not met. Consequently, development costs incurred in 2021 cannot be capitalized.
2.30. Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualified assets are part of the cost of
the asset. Other borrowing costs are recognized in the income statement for the year in which they occurred.
2.31. Income taxes
Income taxes for the period include both current and deferred taxes. They are recognized in the income statement except
where they relate to items recognized directly in equity, in which case, they are also directly recognized in the equity.
2.31.1. Current taxes
Taxes due for the period are calculated on the income statement of the group’s companies and are calculated according to
the rules laid down by the local tax authorities.
2.31.2. Deferred taxes
Deferred taxes are recognized using the variable carry-forward method, for all temporary differences on the reporting date
between the tax base of the assets and liabilities and their carrying amount on the balance sheet.
Deferred tax liabilities are recognized for all temporary differences:
- except when the deferred tax liability arises from the initial recognition of a goodwill or the initial recognition of an asset
or a liability in a transaction that is not a business combination and that, on the transaction date, does not affect either
the accounting profit or the taxable profit or loss; and
- for the taxable temporary differences linked to interest in subsidiaries, in associates and in joint ventures, except if the
date on which the temporary difference is inversed can be checked and it is probable that the temporary difference will
not be inversed in the foreseeable future. Deferred income tax assets are recognized for all deductible temporary
differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit
will be available against which the deductible temporary differences, and the carry-forward of unused tax assets and
unused tax losses can be utilized.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced if it is no longer probable that
sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the
asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted
at the balance sheet date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset the tax assets and liabilities due
and if these deferred taxes concern the same taxable entity and the same tax authority.
EVS also assesses how the taxation authorities could challenge some of the company’s tax positions and the consequences
that might arise from tax audits. Based on this assessment, a current or deferred tax liability is determined in accordance
with the provisions of IFRIC 23.
2.32. Derivative financial instruments
EVS uses derivative financial instruments such as forward exchange rate contracts or interest rate swaps to hedge its risks
of foreign currency fluctuations on its foreign currency transactions and its risks of interest rate fluctuations. Such derivative
financial instruments are stated at fair value as these contracts are not deemed to be hedging contracts within the meaning
of the IFRS.
40 FINANCIAL ANNUAL REPORT EVS - 2021
The fair value of forward exchange contracts is calculated by reference to current forward exchange rates for contracts with
similar maturity profiles. The fair value of the interest rate swaps is subject to a valuation by the counterparty.
The method of determining the fair value of these instruments is therefore of "level 2" type according to IFRS 13 "Evaluation
of fair value".
2.33. Dividends
The dividends proposed by the Board of Directors are not recognized in the financial statements as long as they have not
been approved by the shareholders during the Ordinary Annual General Meeting. In case of interim dividends, they are
deducted from the reserves.
2.34. Commitments relating to technical guarantee in respect of sales or services already provided
EVS grants a 2-year technical guarantee on products sold subject to the general conditions of sale. In order to hedge that
risk, EVS has recorded on the balance sheet a provision to cover the probable costs on 2 years relating to these technical
guarantees.
2.35. Earnings per share
The group calculates both the basic earnings per share and the diluted earnings per share in accordance with IAS 33. The
basic earnings per share are calculated on the basis of the weighted average number of ordinary shares in circulation during
the period. The diluted earnings per share are calculated on the basis of the average number of ordinary shares in circulation
during the period plus the potential dilutive effect of the warrants and stock options in circulation during the period.
3. SEGMENT INFORMATION
3.1. General information
From an operational point of view, the company is vertically integrated with the majority of its staff located in the headquarters
in Belgium, including the R&D, production, marketing and administration departments. Following Axon acquisition, EVS now
also has a portion of its staff located in Netherlands and UK, mainly R&D and production teams. The Axon products, forming
the MediaInfra Solution pillar part of the solution blueprint are integrated into EVS solution portfolio. The majority of the
investments and costs are still located at the level of the Belgian parent company. The other foreign subsidiaries are primarily
sales and representative offices. The Chief Operating Decision Maker, being the Executive Committee, reviews the
operating results, operating plans, and makes resource allocation decisions on a company-wide basis. Revenue related to
products of the same nature (digital broadcast production equipment) are realized by commercial polyvalent teams. The
company’s internal reporting is the reflection of the above-mentioned operational organization and is characterized by the
strong integration of the activities of the company.
By consequence, the company is composed of one segment according to the IFRS 8 definition, and the consolidated income
statement of the group reflects this single segment. All long-term assets are located in the parent company EVS Broadcast
Equipment SA in Belgium.
The company provides only one type of solution: live video technology for broadcast and new media productions with a
consistent modular architecture. This is the product of EVS. There are no other significant classes of business, either
singularly or in aggregate. Indeed, identical modules can meet the needs of different markets. Our customers themselves
are often multi-markets. Providing information for each module is therefore not relevant for EVS.
At the geographical level, our activities are divided into the following regions: Asia-Pacific (“APAC”), Europe, Middle East
and Africa (“EMEA”), and America (“NALA”). This division follows the organization of the commercial and support services
within the group, which operate worldwide. A fourth region is dedicated to the worldwide events (“Big Event Rentals”).
The company provides additional information with a presentation of the revenue by market pillar: “Live Service provider”
(LSP), “Live Audience Business” (LAB) and “Big Event Rentals” (BER) for rental contracts relating to the big sporting events.
Finally, sales are presented by nature: systems and services.
3.2. Additional information
3.2.1. 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.
Revenue (EUR thousands)
FY21
FY20
% FY21/FY20
Live Audience Business
72,259
56,685
+27.5%
Live Service Provider
51,785
30,158
+71.7%
Big Event Rentals
13,534
1,268
+967.4%
Total Revenue
137,578
88,111
56,2%
41 FINANCIAL ANNUAL REPORT EVS - 2021
The above presentation includes the latest and refined classification of our customers by market pillar for both 2020 and
2021.
3.2.2. Information on revenue by geographical information
Activities are divided by three regions: Asia-Pacific (“APAC”), Europe, Middle East and Africa (“EMEA”), and “Americas”.
Aside of them, we also identify a fourth category “Big Event Rentals”.
Revenue for the YTD period (EUR thousands)
APAC
excl. events
EMEA
excl. events
Americas
excl. events
Big event
Rentals
TOTAL
FY21 revenue
23,077
63,468
37,499
13,534
137.578
Evolution versus FY20 (%)
+19.6%
+54.9%
+41.4%
+967.4%
+56.2%
Variation versus FY20 (%) at constant currency
+19.6%
+54.9%
+30.5%
+967.4%
+53.0%
FY20 revenue
19,315
41,002
26,526
1,268
88,111
Revenue realized in Belgium (the country of origin of the company) with external clients represent less than 5% of the total
revenue for the period. In the last 12 months, the group realized significant revenue with external clients (according to the
definition of IFRS 8) in three countries: The United States, Spain and Switzerland (respectively, EUR 32,8 million, EUR 10,9
million & 9,1 million in the last 12 months).
3.2.3. Information on products and services
Revenue can be presented by nature: systems and services.
Revenue (EUR thousands)
FY21
FY20
% FY21/FY20
Systems
106,416
74,876
+42.1%
Services
31,162
13,236
+135,4%
Total Revenue
137,578
88,111
+56.2%
Services include advice, installations, project management, training, maintenance, and support.
3.2.4. Information on important clients
Over the last 12 months, no external client of the company represented more than 10% of the revenue (this was the same
case for 2020).
3.2.5. Maturity analysis of the order book
We start the year 2022 with the highest order book in the history of EVS at EUR 63,9 million (+18,6% YoY), of which:
- EUR 41,8 million to be recognized in revenue in 2022 (+34,0% YoY and excl Big Event Rentals)
- EUR 9,2 million to be recognized in revenue in 2022 for Big Events Rental (compared to 12,9Mio€ at the end of 2020)
- EUR 12,9 million to be recognized in revenue in 2023 and beyond (+31,6% YoY)
42 FINANCIAL ANNUAL REPORT EVS - 2021
4. CONSOLIDATED COMPANIES, JOINT VENTURES, ASSOCIATES AND REPRESENTATIVE OFFICES
NAME AND ADDRESS
Year of
foundation or
acquisition
Staff as of
31.12.21
Incorporation
method
used
(1)
Part of
capital held
as of
31.12.21
(in %)
(2)
Part of
capital held
as of
31.12.21
(in %)
(2)
Change in %
of capital
held
EVS Broadcast Equipment Inc.
700 US 46 East Fllor 3
NJ 07004 Fairfield, USA
1996
22
F
100.00
100.00
0.00
EVS Broadcast México, SA de CV
World Trade Center, Cd. De México,
Montecito N° 38, Piso 23, Oficina 38,
Col. Nápoles, Delegación Benito Juárez,
D.F. 03810 México, MEXIQUE
RFC: EBM 1106152TA
2011
4
F
100.00
100.00
0.00
EVS France SARL
Avenue André Morizet, 62bis
F-92100 Boulogne-Billancourt, FRANCE
TVA: FR-21419961503
1998
11
F
100.00
100.00
0.00
EVS France Développement SARL
Avenue André Morizet, 62bis
F-92100 Boulogne-Billancourt, FRANCE
TVA: FR-53514021476
2009
5
F
100.00
100.00
0.00
EVS Toulouse SAS
6, rue Brindejonc des Moulinais, Bât. A,
F-31500 Toulouse Cedex 5, FRANCE
TVA: FR-83449601749
2010
18
F
100.00
100.00
0.00
EVS Italia S.R.L.
Via Milano 2,
IT-25126 Brescia, ITALIE
TVA: IT-03482350174
1998
3
F
100.00
100.00
0.00
EVS Broadcast UK Ltd.
Ashcombe House,
The Crescent 5,
Leatherhead,
Surrey KT22 8DY, ROYAUME-UNI
TVA: UK-853278896
1999
11
F
100.00
100.00
0.00
EVS Broadcast Equipment Iberica SL
Avda de Europa 12-2C, Edificio
Monaco,
Parque Empresarial la Moraleja
28109 Alcobendas, Madrid, ESPAGNE
CIF: B85200236
2007
4
F
100.00
100.00
0.00
EVS Nederland BV
Parnassungsweg 819
1082 LZ Amsterdam
PAYS-BAS
2008
2
F
100.00
100.00
0.00
EVS International (Swiss) SARL
Rue des Arsenaux 9,
1700 Fribourg, SUISSE
TVA: CH-21735425482
2009
0
F
100.00
100.00
0.00
EVS Broadcast Equipment Ltd.
Room A, @Convoy, 35/F
169 Electric Road, North Point,
HONG-KONG
2002
13
F
100.00
100.00
0.00
EVS Broadcast Equipment Singapore
PTE. Ltd.
Level 8-9, The Metropolis Tower 2
11 North Buona Vista Drive
138589 SINGAPORE
2015
4
F
100.00
100.00
0.00
EVS Australia Pty Ltd.
Level 8, 261 George Street
Sydney NSW 2000, AUSTRALIE
2007
2
F
100.00
100.00
0.00
EVS Deutschland GmbH
Mina-Rees Stra. 8,
64295 Darmstadt, ALLEMAGNE
VAT: DE-289 460 223
2013
20
F
100.00
100.00
0.00
EVS Pékin - Bureau de
Représentation
2805 Building One, Wanda Plaza, N°93
Jianguo Road
100026 Beijing, CHINE
2005
11
F
N/A
N/A
N/A
43 FINANCIAL ANNUAL REPORT EVS - 2021
EVS Broadcast Equipment Middle
East Ltd – Representative office
Shatha Tower, Office 09, 32
nd
Floor,
Dubai Media City,
Dubaï, EMIRATS ARABES UNIS
2006
3
F
N/A
N/A
N/A
EVS Americas Los Angeles –
Representative office
101 South First Street, Suite #404
Burbank, CA 91504, USA
2006
5
F
N/A
N/A
N/A
Axon Investments BV
Hercules 28,
5126RK Gilze, NETHERLANDS
NL817704668B01
2007
0
F
0.00
100.00
100.00
Axon Digital Design LTD
1 Forest Court,
RD41 2FD Wokingham, United Kingdom
GB642547534
1998
13
F
0.00
100.00
100.00
Axon Digital Design BV
Hercules 28,
5126RK Gilze, NETHERLANDS
NL802646748B01
1994
52
F
0.00
100.00
100.00
Axon Digital Design BV
Representative Office Beijing
2805 Building One, Wanda Plaza, N°93
Jianguo Road
100026 Beijing, CHINE
2002
0
F
N/A
N/A
N/A
MECALEC SMD SA
Rue Nicolas Fossoul 54,
N° d’entreprise: BE0467 121 712
1999
29
E
49.50
49.50
0.00
(1) F: Full Consolidation, E: Equity method.
(2) Proportion of capital of those companies held by the companies included in the consolidated accounts and persons acting in their own name on
behalf of these companies.
(3) Axon Holding BV has merged into Axon Investments NV on 31 December 2021 with retroactive effect from an accountancy perspective as of
1 January 2021.
44 FINANCIAL ANNUAL REPORT EVS - 2021
5. INVESTMENT IN JOINT-VENTURES AND ASSOCIATES
(EUR thousands)
2021
2020
Investment in associates
Opening balance as at January 1
1,760
1,421
- Disposals during the year
-
-
- Acquisitions during the year
-
-
- Results
193
339
- Others
-33
-
Closing balance as at December 31
1,920
1,760
5.1. Investments in associates
5.1.1. MECALEC SMD SA
MECALEC SMD SA was founded on October 21, 1999 by SA MECALEC (50.5%, not directly or indirectly linked to EVS)
and EVS (49.5%). Its subscribed capital is EUR 200,000 and, therefore, the share of EVS in this company amounts to EUR
99,000. This company’s main activity is the manufacturing and the assembly of electronic boards, using SMD technology.
The registered office is based in Boncelles, close to Liège (Belgium), 5 km from EVS. EVS acquired this interest in order to
benefit from shorter delivery times on orders for the assembly of electronic boards. There can be some synergies in R&D
and reworking of the production process. The net profit of MECALEC SMD in 2021 amounted to EUR 0.3 million. EVS
represented 13% of MECALEC SMD’s turnover in 2021.
The share of EVS in the 2021 results of MECALEC SMD amounts to EUR 193,000 and the share of EVS in MECALEC
SMD equity amounts to EUR 1,920,000.
(EUR thousands)
Dec. 31, 2021
Dec. 31, 2020
Current assets
3,395
3,964
Non-current assets
978
80
Current liabilities
-494
-488
Non-current liabilities
-
-
Net assets
3,879
3,556
Share of associate’s balance sheet (49.5%)
1,920
1,760
Turnover
2,788
3,561
Net result
389
686
Share of associate’s net result (49.5%)
193
339
Other
-33
Carrying amount of investment
1,920
1,760
6. INCOME AND EXPENSES
6.1. Use of non-GAAP financial measures
EVS uses performance measures to supplement the measures defined by IFRS in order to clarify the company’s financial
performance:
- Gross profit and gross margin ;
- Operating result (EBIT) and operating margin.
These indicators are aggregates that result directly from our presentation of the consolidated income statement as subtotals.
We believe these measures are important indicators in our industry, and are widely used by investors, analysts and other
audiences.
6.2. Gross margin
(EUR thousands)
2021
2020
Revenue
137,578
88,111
Cost of sales
-41,764
-29,554
Gross profit
95,814
58,557
Gross margin %
69.6%
66.5%
Consolidated gross margin was 69.6% for FY21, compared to 66.5% in FY20 due to a favorable product mix.
45 FINANCIAL ANNUAL REPORT EVS - 2021
Operating expenses increased with 11% to EUR 58.7 million (EUR 52.9 million in 2020). The year-over-year comparison is
impacted by the Axon acquisition and some COVID measures. Once normalized, the increase is primarily linked to the
overall performance (variable renumeration, logistics fees, …) as well as some expenses to build the future, translated by
new hires as well as support in business transformation. In other income a benefit of EUR 1,0 million was booked following
the close out of the earn out clause in the Axon acquisition contract.
The FY21 EBIT margin was 27.0% at EUR 37.096 million (EUR 5.650 million in 2020).
6.3. Research and development expenses
Research and development expenses amounted to EUR 27.1 million in 2021 versus EUR 24.0 million in 2020. R&D does
not require any considerable investment, since engineers and programmers work directly and mainly on the machines to be
sold or on servers for the software development. Moreover, the markets in which EVS operates and which are characterized
by a rapid evolution of used technologies and the impossibility to predict future benefits that on-going developments are
likely to generate, lead the Board of Directors to conclude that the criteria of IAS38.57 were not met. Consequently,
development costs incurred in 2021 cannot be capitalized.
Since the fourth quarter of 2010, EVS takes into account a withholding tax exemption given since 2006 by the Belgian
government to companies paying or allocating compensation to individual researchers who are engaged in collaborative
R&D programs according to some criteria defined under section 273 of the Code of income tax in Belgium. In the
presentation of the accounts, this amount comes as a deduction of R&D charges.
Since 2015, EVS also benefits from tax credits relating to R&D in France. This amount also comes in deduction of the R&D
expenses. In 2021, it amounted to EUR 0.4 million (EUR 0.5 million in 2020).
Starting from 2021, Axon NL benefits from tax credits relating to R&D in The Netherland. This amount also comes in
deduction of the R&D expenses. In 2021, it amounted to EUR 0.4 million.
The detail of the R&D expense is as follows:
(EUR thousands)
2021
2020
Gross R&D expenses
29,599
26,343
Benefits relating to R&D expenses
-2,511
-2,339
R&D expenses, net
27,088
24,004
6.4. Complementary information about operating charges by nature
(EUR thousands)
2021
2020
Raw materials and consumables used
-28,746
-18,259
Increase (+)/decrease (-) in stocks of finished goods, work and contracts in progress
8,191
-3,519
Personnel expenses
-47,288
-40,174
- Remunerations and salaries
-33,992
-32,785
- Social security costs
-7,588
-6,944
- Other personnel expenses
-5,708
-466
Of which the ones included in:
- Cost of Sales
-11,269
-8,601
- S&A costs
-15,585
-13,992
- R&D costs
-20,202
-17,230
- Profit sharing plan and warrants
-232
-352
Average number of employees in FTE
547
514
Depreciations
-7,015
-6,658
Of which the ones included in:
- Costs of sales
-1,764
-1,625
- S&A costs
-2,672
-2,561
- R&D costs
-2,579
-2,473
Increase (-)/decrease (+) in amounts written off
-1,990
-1,987
- Increase (-)/decrease (+) in amounts written off on stocks
-2,702
-2,016
- Increase (-)/decrease (+) in amounts written off on trade debtors
712
29
(1)
46 FINANCIAL ANNUAL REPORT EVS - 2021
6.4.1. Post-employment benefit
Since April 1, 2002, EVS has implemented a defined contribution pension plan in accordance with the sectoral pension plan
regulations for employees in the metallic manufacturing sector (“commission paritaire 209”). It foresees the payment of an
annual premium equal to a percentage of the gross salary (submitted to national office of social security) for each employee.
This premium is exclusively paid by the employer. The premium rate is set by the sector's collective agreements. Premiums
have evolved as follows:
In %
Contribution rate
2007
1.00%
2008 to 2010
1.10%
2011
1.77%
2012
1.87%
2013 to 2019
1.97%
2020
2.29%
2021
2.29%
The plan is managed by “l’Integrale”. The financing policy is outlined in its annual report.
In addition, since, January 1, 2012, employees of EVS in Belgium are automatically affiliated to a second pension plan
subscribed with AG Insurance. EVS contributes to this plan (including management fee, life insurance, disability, and risk
waiver insurance premiums) at a rate of 3% of gross annual salary.
Until 2015 included, both pension plans were treated as defined contribution plans, and the contributions to this defined
contribution pension schemes were recognized as an expense in the income statement as incurred.
However, on December 18, 2015, the Belgian legislation has been updated and clarification was provided on the minimum
guaranteed rate of return. Before December 31, 2015, the minimum guaranteed rate of return on employer and participant
contributions were 3.25% and 3.75% respectively. From 2016 onwards, the rate decreased to 1.75% and is annually
recalculated based on a risk-free rate of 10-year government bonds. According to IAS19, Belgian-defined contribution plans
that guarantee a specified return on contributions should be assimilated to defined benefit plans, as the employer is not
responsible for the contribution payments but has to cover the investment risk until the legal minimum rates applicable. The
returns guaranteed by the insurance companies are in most cases lower than or equal to the minimum return guaranteed
by law. As a result, the Group has not fully hedged its return risk through an insurance contract and a provision needs to be
accounted for. The plans at EVS are financed through group insurance contracts. The contracts are benefiting from a
contractual interest rate granted by the insurance company. When there is underfunding, this will be covered by the financing
fund and in case this is insufficient, additional employer contributions will be requested.
IAS 19 requires an entity to recognize a liability when an employee has provided service in exchange for employee benefits
to be paid in the future. Therefore, pension provisions are set up. The obligations are measured on a discounted basis
because they are settled many years after the employees render the related service. A qualified actuary has determined the
present value of the defined benefit obligations and the fair value of the plan assets except for the multi-employer plan.
These assets are held by an insurance company. The projected unit credit method was used to measure the obligations
and costs. Assumptions were included on demographic and financial variables. The result of this calculation has then been
extrapolated to the multi-employer plan based on the contributions paid.
47 FINANCIAL ANNUAL REPORT EVS - 2021
Changes booked in 2020 in the Belgian defined benefit obligation and fair value of plan assets were as follows:
2021
2020
In thousands of EUR
Defined
benefit
obligation
Fair
value of
plan
assets
Net
defined
benefit
liability
Defined
benefit
obligation
Fair
value of
plan
assets
Net
defined
benefit
liability
As of January 1
8,670
-7,686
984
7,218
-6,535
683
Service cost
1,398
0
1,398
1,078
0
1,078
Administrative costs
18
18
22
22
Net interest expenses
41
-38
3
75
-73
2
Other
-
-
-
-
Sub-total included in profit or loss
1,439
-20
1,419
1,153
-52
1,102
Benefits paid
-141
141
0
-167
167
0
Return on plan assets
-
-106
-106
-288
-288
Actuarial changes (assumptions) of which:
Arising from changes in demographic
assumptions
-
-
-
0
0
Arising from changes in financial assumptions
-1,172
-1,172
784
784
Arising from experience adjustments
1,791
-69
1,722
-318
-318
Sub-total included in OCI
619
-69
550
466
-288
178
Contributions by employer
-
-1,128
-1,128
-978
-978
As of December 31
10,587
-8,762
1,825
8,670
-7,686
984
The fair value of plan assets are fully invested in insurance policies.
The principal assumptions used in determining pension obligations for the Group’s plans are shown below:
In %
2021
2020
Discount rate
1.15%
0.47%
Future salary increases (incl. consumer price increases)
2.10%
1.90%
The following overview summarizes the sensitivity analysis performed for significant assumptions at 31 December. The
figures show the impact on the defined benefit obligation.
(EUR thousands)
2021
Discount rate
0.25% decrease
451
0.25% increase
-408
Future salary evolution
0.25% decrease
-140
0.25% increase
147
The sensitivity analysis above has been determined based on a method that extrapolates the impact on the defined benefit
obligation as a result of reasonable changes in one key assumption occurring at the end of the reporting period, keeping all
other assumptions constant.
These may not be representative for an actual change in the defined benefit obligation, as it is unlikely that changes in
assumptions would occur in isolation of one another.
The expected contributions to the plan for the next annual reporting period amounts to EUR 744 thousands. The average
duration of the defined benefit plan obligation is 19 years.
48 FINANCIAL ANNUAL REPORT EVS - 2021
The following payments are the expected benefit payments from the plan assets:
(EUR thousands)
2021
Within the next 12 months
57
Between 2 and 5 years
199
Between 5 and 10 years
1,808
Total expected payments
2,064
No other post-employment benefit is provided to the personnel.
6.5. Financial revenues/(costs)
(EUR thousands)
2021
2020
Interest income on deposit
51
57
Interest charges
-893
-833
Exchange result
1,117
-957
Other financial results
137
96
Net Financial revenues / (costs)
412
-1,636
To limit its exposure to the US dollar, the EVS Group has an active policy to cover the foreign exchange risk, as explained
in notes 26 and 27.
The functional currency of EVS Broadcast Equipment S.A. as well as all of the subsidiaries is the euro, except for the
American EVS Inc. subsidiary, whose functional currency is the US dollar and Axon Digital Design LTD subsidiary whose
functional currency is the GBP. The presentation currency of the consolidated financial statements of EVS Group is the
euro.
The net exchange result is mainly explained by the appreciation of the USD and GBP exchange rates comparing EUR.
(see note 2.9.3 Exchange rates used)
6.6. Other income and expenses
In a transaction closed on 30 April 2020, the Company acquired 100% of the shares of Axon Investments B.V. (“Axon”).
With development centers in the Netherlands and the UK, and more than 80 team members, Axon has an international
presence in the live broadcast infrastructure market, including mobile trucks and data centers, and a product portfolio that
complements EVS’s existing live production offering. At the acquisition date, the transaction qualified as a business
acquisition treated in accordance with IFRS 3 Business acquisition. The purchase price allocation exercise was finalized by
the end of 2020.
The contract contained a contingent consideration, ranging between EUR -0,5 million (reverse earn-out to be paid back by
the sellers) and maximum EUR 2,5 million (earn-out to be paid by the Company), depending on the gross margin realized
by Axon over the period 1 January 2020 to 31 January 2021. The fair value of the contingent consideration amounted to
EUR 1 million at acquisition date and by the end of 2020. During 2021, no fair value change related to contingent
consideration was recorded.
Axon did not realize the target gross margin, as such, EVS reversed the contingent consideration initially recognized at
acquisition date. The amount of EUR 1 million was recognized in other income In 2021.
49 FINANCIAL ANNUAL REPORT EVS - 2021
7. INCOME TAXES
7.1. Tax charge on results
The tax charge for 2021 and 2020 is mainly made of:
(EUR thousands)
2021
2020
Current tax charge
Effective tax charge
-1,763
555
Adjustments of current tax related to prior years
518
1,492
Deferred taxes
Tax effects of temporary differences
-1,552
786
- Fixed assets depreciation, including reevaluation of buildings
-244
-261
- Intangibles (R&D investment deductions) *
32
-349
- Other intangibles
218
-1,377
- Adjustments for IFRS 16
20
61
- Adjustments for IAS 19
59
75
- Adjustments for the carry-over taxation for gains on building disposals
130
81
- Adjustments for IFRS 9
-3
52
- Reported tax losses
-1,750
2,518
- Provisions
-14
-14
- Others
-
Income taxes included in the income statement
-2,797
2,833
* see also paragraph 5 in the financial report, on deductions relating to R&D investments.
**
During 2021, income tax expense increased due to the increase of current income tax expense mainly explained by the
raise of the profit before tax of the period for all components together with the decrease of deferred tax income essentially
triggered by the consumption of reported tax losses.
7.2. Reconciliation of the tax charge:
The effective tax charge of the group obtained by applying the effective tax rate to the pre-tax profit of the group, has been
reconciled for 2020 and 2021 with the theoretical tax charge obtained by applying the theoretical tax rate:
(EUR thousands)
2021
2020
Reconciliation between the effective tax rate and the theoretical tax rate
Profit before taxes and share in the result of the enterprise accounted for using the equity
method
37,508
4,014
Effective tax charge based on the effective tax rate
-2,797
2,833
Effective tax rate
7.46%
-70.6%
Reconciliation items for the theoretical tax charge
Tax effect due to the carry-over taxation for gains on buildings disposals in the statutory
accounts
Tax effect on R&D investment deductions
-1,399
-1,029
Tax effect of non-deductible expenditures
468
311
Tax effect due to the usage of tax losses
-2,532
-
Tax effect on innovation deduction
-3,964
-2,122
Tax effect on innovation deduction (catch-up from previous years)
-
Tax effect of previous years adjustments
-518
-1,492
Other increase/(decrease)
963
393
Total tax charge of the group entities computed on the basis of the respective local nominal
rates
-9,719
-1,106
Theoretical tax rate
-25.9%
27.6%
The tax charge for FY2021 includes an adjustment of a tax benefit that was booked worth EUR 0,5 million for restitutions in
the Hong Kong office.
Theoretical tax charge computed on the basis of the respective local nominal rates increased mainly due to the significant
increase of the profit before tax for most of the subsidiaries.
50 FINANCIAL ANNUAL REPORT EVS - 2021
7.3. Deferred taxes on the balance sheet
The sources of deferred taxes are as follows:
(EUR thousands)
December 31, 2021
December 31, 2020
Assets
Liabilities
Assets
Liabilities
Other tangible assets
18
-
19
Buildings revaluation
1,823
-
1,578
R&D Intangibles
4,486
4,454
-
Other intangible assets
1,159
-
1,377
Leases (IFRS 16)
92
11
73
12
Defined benefit plan provision
442
246
-
Accounts receivable impairment
100
103
-
Carry-over taxation for gains
755
-
885
Recoverable tax loss
4,568
6,318
-
Deferred income / Accrued charges
-
-
-
-
Provisions for risks and charges
14
-
Total
9,688
3,766
11,208
3,871
Net booked value
5,933
11
8,725
1,389
Deferred taxes are booked “net” in accordance with the valuation rules of the group because they relate to income taxes
levied by the same taxation authority and the authority allows the compensation.
The decrease in the recoverable tax loss is explained mainly by the increase of the profit before tax for all Group entities.
8. EARNINGS PER SHARE
The basic earnings per share are calculated by dividing the net profit and loss of the period attributable to the ordinary
shares, less the treasury shares, by the weighted average number of ordinary shares in circulation during the year.
The diluted earnings per share are calculated by dividing the net result of the period attributable to the ordinary shareholders
by the weighted average number of ordinary shares in circulation at the rate of the period, adjusted by the diluting effects of
the share options (warrants).
(EUR thousands)
2021
2020
Net profit
34,904
7,186
- attributable to non-controlling interests
-
-
- attributable to equity holders of the parent company
34,904
7,186
2021
2020
Weighted average number of subscribed shares, excluding treasury shares
13,400,624
13,668,612
Dilution effect of the weighted average number of the share options in circulation
187,000
5,620
Weighted average number of fully diluted number of shares
13,587,624
13,674,232
Basic earnings per share (EUR)
2.60
0.53
Diluted earnings per share (EUR)
2.57
0.53
The diluted earnings per share does include (a) 187,000 warrants attributed in December 2020 of which, 159,000 warrants
are outstanding at the end of the year with an exercise price below the share price. These 159,000 warrants have maturity
of October 2026; and (b) 158,600 warrants attributed in June 2021 and outstanding at the end of the year with an exercise
price below the share price. These 158,600 warrants have maturity of June 2027.
The diluted earnings per share does not include 138,832 warrants outstanding at the end of 2021 as these are not
exercisable given the exercise prices were above the share price.
51 FINANCIAL ANNUAL REPORT EVS - 2021
9. DIVIDENDS PAID AND PROPOSED
Dividends are paid for issued shares less treasury shares at the payment date.
(EUR thousands, gross amount)
Coupon #
Declaration
date
2021
2020
Paid during the year :
- Final dividend for 2020 (EUR 0.50 per share excl.
treasury shares)
30
May 2021
6,699
-
- Interim dividend for 2021 (EUR 0.50 per share excl.
treasury shares)
31
Nov. 2021
6,701
-
Total paid dividends
13,400
-
(EUR thousands)
2021
2020
Proposed for approval at the OGM :
- Total dividend for 2020 (EUR 0.50 per share incl. interim dividend)
-
6,699
- Proposed dividend for 2021 (EUR 1,50) per share incl. interim dividend
20,103
-
Total
20,103
6,699
For 2021 EVS proposes a base gross dividend at EUR 1.00 per share. However, next to that, EVS would also like to honor
its past dividend intentions (an intent to distribute EUR 1.00 per share per annum for the period 2018-2021). Therefore, after
difficult market conditions in 2020, linked to the pandemic, EVS proposes an additional exceptional dividend of EUR 0.50
per share in May 2022. Hence a total dividend of EUR 1.50 per share will be awarded based on the FY21 results. Mind that
a first interim dividend of EUR 0.50 per share has already been paid in November 2021. The remaining ER 1.00 will follow
in May 2022, subject to approval of the Ordinary General Meeting of shareholders.
10. GOODWILL
(EUR thousands)
CGUs
TOTAL
OpenCube
SVS
Axon
Acquisition cost
As of December 31, 2020
820
1,125
2,832
4,777
- Acquisitions
-
-
-
-
- Sales and disposals
-
-
As of December 31, 2021
820
1,125
2,832
4,777
Accumulated impairment
As of December 31, 2020
820
1,125
-
1.945
- Impairment
-
-
-
- Sales and disposals
-
-
As of December 31, 2021
820
1,125
-
1,945
Net carrying amount
As of December 31, 2020
-
-
2,832
2,832
As of December 31, 2021
2,832
2,832
Goodwill is the difference between the cost of an acquisition and the share of the acquirer’s interest in the net fair value of
the identifiable assets, certain liabilities, and eventual liabilities. The goodwill is not amortized but is reviewed for impairment,
annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. The
value in use of the Cash Generating Unit (CGU) is calculated from the present value of the cash flows included in the
business plan of SVS and Axon, in accordance with IAS 36.
52 FINANCIAL ANNUAL REPORT EVS - 2021
10.1. Axon Group
By the end of 2021, management conducted an impairment test exercise on Axon Group as a CGU.
Management initiated the impairment test exercise by detecting any qualitative impairment indicators for Axon Group. The
exercise did not indicate the presence of material qualitative impairment indicators.
In order to confirm the first analysis, management calculated the recoverable amount (value in use) of Axon Group CGU by:
- Using cash flow projections (discounted cash flow method: DCF) based on financial budget approved by the directors
covering a five-year period;
- Considering 10% growth on the revenue (only for the first five years period);
- Applying a discount rate of 10% (Weighted Average Cost of Capital: WAAC), which corresponds to a pre-tax discount
rate of 10,95%;
- Using perpetual cash-flows for the period beyond the forecast period (five years);
- Not considering any growth for the terminal value.
The result of the calculations confirmed that no impairment needs to be booked at 2021-year end.
The calculation of the value in use of Axon Group CGU is sensitive to (a) gross margin and (b) discount rate. In this context,
management conducted sensitivity test by increasing and decreasing the sensitive factors by +/-10%. The outcome of the
sensitivity analysis does not influence the conclusion that no impairment needs to be booked at 2021-year end.
53 FINANCIAL ANNUAL REPORT EVS - 2021
11. OTHER INTANGIBLE ASSETS
(EUR thousands)
Technology
(DWESAB, OpenCube
and Axon)
Other
intangibles:
customer
related
Software
licenses
TOTAL
Acquisition cost
As of December 31, 2019
2,581
0
3,080
5,661
- Business combination
2,489
5,120
9
7,618
- Acquisitions
-
-
53
53
- Sales and disposals
-
-
-
-
- Transfers
-
-
-
-
- Other
-
-1
-
-1
As of December 31, 2020
5,070
5,119
3,142
13,331
Accumulated amortization
As of December 31, 2019
-2,581
-2,907
-5,488
- amortization
-237
-488
-78
-802
- Sales and disposals
-
-
-
-
- Transfers
-
-
-
-
- Other
-
-
-
-
As of December 31, 2020
-2,818
-488
-2,985
-6,290
Net carrying amount
As of December 31, 2019
-
-
173
173
As of December 31, 2020
2,252
4,631
157
7,041
(EUR thousands)
Technology
(DWESAB, OpenCube
and Axon)
Other
intangibles:
customer
related
Software
licenses
TOTAL
Acquisition cost
As of December 31, 2020
5,070
5,119
3,142
13,331
- Business combination
-
-
-
-
- Acquisitions
-
-
110
110
- Sales and disposals
-
-
-
-
- Transfers
-
-
-
-
- Intangible assets in progress
-
-
130
130
- Other
-
-
7
7
As of December 31, 2021
5,070
5,119
3,389
13,578
Accumulated amortization
As of December 31, 2020
-2,818
-488
-2,985
-6,290
- amortization
356
731
-80
1,167
- Sales and disposals
-
-
-
-
- Transfers
-
-
-
-
- Other
-
-
-7
-7
As of December 31, 2021
-3,174
-1,219
-3,072
-7,465
Net carrying amount
As of December 31, 2020
2,252
4,631
157
7,041
As of December 31, 2021
1,896
3,900
317
6,113
54 FINANCIAL ANNUAL REPORT EVS - 2021
12. TANGIBLE ASSETS (LANDS AND BUILDINGS, AND OTHER TANGIBLE ASSETS)
(EUR thousands)
Land and
buildings
Plant,
machinery
and
equipment
Other
tangible
assets
Assets
under
construction
TOTAL
Acquisition cost
As of December 31, 2019
54,222
6,257
15,418
85
75,982
- Business combination
1,916
278
263
-
2,458
- Acquisition
4,000
857
1,659
352
6,867
- Sales and disposals
-787
-40
0
0
-827
- Transfers
50
-250
266
-66
-
- Other
-421
-141
-
-
-562
As of December 31, 2020
58,981
6,961
17,606
371
83,919
Accumulated depreciation
As of December 31, 2019
-4,943
-3,936
-13,395
-
-22,274
- Depreciations
-3,348
-1,097
-1,411
0
-5,856
- Sales and disposals
484
17
0
0
501
- Transfers
-
-
-
-
-
- Other
116
290
0
0
406
As of December 31, 2020
-7,691
-4,727
-14,806
0
-27,223
Net carrying amount
As of December 31, 2019
49,279
2,321
2,023
85
53,708
As of December 31, 2020
51,290
2,234
2,800
371
56,696
Mortgages and other
guarantees
Net carrying amount of fixed
assets given as real
guarantees
42,470
-
-
371
42,841
(EUR thousands)
Land and
buildings
Plant,
machinery
and
equipment
Other
tangible
assets
Assets
under
construction
TOTAL
Acquisition cost
As of December 31, 2020
58,981
6,961
17,606
371
83,919
- Business combination
- Acquisition
3,872
589
741
659
5,861
- Sales and disposals
-21
-21
- Transfers
105
176
-
-281
-
- Other
425
273
-
-
698
As of December 31, 2021
63,383
7,978
18,347
749
90,457
Accumulated depreciation
As of December 31, 2020
-7,691
-4,727
-14,806
0
-27,223
- Depreciations
-3,598
-1,022
-1,227
-
-5,847
- Sales and disposals
-
21
-
-
21
- Transfers
- Other
-170
-257
-
-
-427
As of December 31, 2021
-11,459
-5,985
-16,033
-
-33,477
Net carrying amount
As of December 31, 2020
51,290
2,234
2,800
371
56,696
As of December 31, 2021
51,924
1,993
2,314
749
56,980
Mortgages and other
guarantees
Net carrying amount of fixed
assets given as real
guarantees
41,184
-
-
749
41,933
55 FINANCIAL ANNUAL REPORT EVS - 2021
The acquisition value of the building has been analyzed by component and specific useful lives and residual values were
applied to each of them. Depreciation by component is provided for lifetimes ranging between 3 and 30 years with a total
residual value for the building of about 37% of the gross value excluding subsidies.
Production of the equipment manufactured and marketed by EVS does not require important tangible investment, as far as
the assembly is partially subcontracted, notably to MECALEC SMD SA. Whenever possible, specialized work is outsourced
(i.e. sheet metalwork and manufacturing of integrated circuits).
The group policy is to finance its buildings through equity and through long term loans (see note 20).
In addition to the increase of the right-of-use assets (RoU assets) detailed below, the increase of the year in the tangible
assets during 2021 is explained mainly by some investments in office refurbishment work and IT equipment..
The carrying amounts of right-of-use assets, lease liabilities and the movements for the twelve months ended 31 December
2021 and 31 December 2020:
(EUR
thousands)
Land and
buildings
Plant, machinery and
equipment
Other
tangible
assets
Total
Lease
liabilities
As of December 31, 2019
6.059
-
2.266
8.325
8.370
Additions
2.945
-
1.659
4.603
4.603
Business
combination
1.863
-
263
2.126
2.126
Other
-
430
-
430
376
Disposals
-
-
-
-
-
Depreciation expenses
-1.785
-246
-1.411
-3.442
-
Interest expenses
-
-
-
-
594
Conversion differences
-259
-
-
- 259
-247
Payments
-
-
-
-
-3.818
As of December 31, 2020
8.821
184
2.777
11.782
12.004
(EUR
thousands)
Land and
buildings
Plant, machinery and
equipment
Other
tangible
assets
Total
Lease
liabilities
As of December 31, 2020
8.821
184
2.777
11.782
12.004
Additions
3,977
-
759
4,736
4,736
Business
combination
-
-
-
-
-
Other
-219
-
-18
-237
-197
Disposals
-219
-
-18
-237
-197
Depreciation expenses
-2,087
-184
-1,227
-3,498
-
Interest expenses
-
-
-
-
462
Conversion differences
248
-
-
248
282
Payments
-
-
-
-
-3,879
As of December 31, 2021
10,740
-
2,291
13,031
13,408
56 FINANCIAL ANNUAL REPORT EVS - 2021
13. LONG TERM FINANCIAL ASSETS
(EUR thousands)
Subordinated
loans
Other financial
assets
TOTAL
Net carrying amount as of Dec. 31, 2019
-
353
353
- Refunded/converted during the year
-
-7
-7
- Acquired during the year
-
55
55
- Business combination
-
6
6
- Result
-
0
0
- Others
-
-13
-13
Net carrying amount on Dec. 31, 2020
-
395
395
Net carrying amount as of Dec. 31, 2020
-
395
395
- Refunded/converted during the year
-
-3
-3
- Acquired during the year
-
0
0
- Business combination
-
0
0
- Result
-
0
0
- Others
-
12
12
Net carrying amount on Dec. 31, 2021
-
404
404
The other financial assets mainly consist of cash guarantees and are accounted for at fair value through the profit and loss
statement (FVPL).
14. INVENTORIES
(EUR thousands)
December 31, 2021
December 31, 2020
Raw materials
19,971
16,590
Finished goods
30,029
28,010
Goods purchased for resale
3,748
2,933
Total at cost
53,748
47,533
Cumulated amounts written off at the beginning of the period
-24,953
-23,174
Additions/Reversal/use of the amounts written off, net
-2,529
-2,109
Exchange rate difference
-315
329
Cumulated amounts written off at the end of the period
-27,797
-24,953
Total net carrying amount
25,951
22,579
The increase of inventories during 2021 is mainly explained by the acquisitions of the year to cover the big events that have
been postponed to 2022.
Write-offs movements on inventories, which were valued at EUR 2.5 million in 2021 and at EUR 2.1 million in 2020, are
accounted as charges in the costs of sales. These write-offs concern technologically obsolete stock items and to a large
extent a range of products classified as end of life at the end of 2021.
15. TRADE AND OTHER RECEIVABLES
(EUR thousands)
December 31, 2021
December 31, 2020
Trade receivables
39,170
32,570
Finance lease receivables
4,834
1,984
Write offs on receivables
-2,672
-3,283
Net trade receivables
41,322
31,271
Other amounts receivable
3,833
3,228
Deferred charges and accrued income
2,584
2,701
Total
47,749
37,200
Trade receivables are non-interest bearing and are generally on 90-day terms. According to the group terms and conditions,
the unpaid invoices at their term could result in a 1.50% monthly interest rate.
For receivables overdue with more than 90 days, the group recognizes a portion of these receivables in doubtful accounts
based on an estimate from experience of default of payment of the customer and its financial situation. These doubtful
accounts are booked in the "Selling and Administrative expense" line.
57 FINANCIAL ANNUAL REPORT EVS - 2021
As of December 31, 2021, an amount of EUR 8.5 million (EUR 5.7 million on 31/12/2020) within trade receivables was
overdue with more than 90 days from which EUR 2.7 million are subject of write-downs following credit quality of trade
receivables. Movements of write-offs in 2020 and 2021 are as follows:
(EUR thousands)
2021
2020
Write-offs on trade receivables
Value as of January 1
3,283
3,546
- Write-offs during the year
623
-13
- Releases of write-offs during the year
-1,345
-142
- Amounts paid down during the year
-
-
- Other
111
-108
Value as of December 31
2,672
3,283
According to IFRS 9, the following provision matrix has been used to calculate the amount of impairment allowance as of
31 December 2021.
(EUR thousands)
Trade receivables
Write-offs on trade receivables
Current
<31
days
31-60
days
61-90
days
>91
days
Total
Expected credit loss rate
0.28%
0.72%
1.41%
3.12%
5.44%
Total gross carrying amount
19,541
7,497
1,245
572
5,699
34,554
Expected credit loss as of Dec 31 2020
54.0
53.8
17.6
17.8
310.1
453.3
(EUR thousands)
Trade receivables
Write-offs on trade receivables
Current
<31
days
31-60
days
61-90
days
>91
days
Total
Expected credit loss rate
0.13%
0.54%
1.21%
2.09%
3.58%
Total gross carrying amount
22,496
8,682
3,442
865
8,519
44,004
Expected credit loss as of Dec 31 2021
29.5
46.6
41.6
18.1
313.7
450
By the end of 2021, credit loss rates improved comparing to 2020. This is mainly explained by the fact that credit collection
during 2020 was better than expected at 2020-year end.
15.1. Finance lease receivables
(EUR thousands)
2021
2020
Gross receivable – future lease payments under finance lease
Within one year (current finance lease)
2,766
1,525
After one year but no longer than five years (non-current finance lease)
2,651
576
Less: unearned finance income
-583
-117
Present value of future lease payments
Within one year (current finance lease)
2,426
1,441
After one year but no longer than five years (non-current finance lease)
2,408
543
The group enters into finance leasing arrangements for some of its equipment. The term of finance leases entered into is
maximum four years.
The carrying amount of the conditional purchase options of the assets leased under finance leases is estimated at EUR 0.4
million.
The interest rate inherent in the finance leases is fixed at the contract date for all of the lease term. The weighted average
interest rate on finance lease receivables at December 31, 2021 is 6.5%.
The financial revenues generated by the finance leases are booked in the interest revenues, as explained in note 6.5.
58 FINANCIAL ANNUAL REPORT EVS - 2021
15.2. Contract balances
(EUR thousands)
December 31, 2021
December 31, 2020
Contract assets
637
476
Contract liabilities
206
2,309
Invoiced advances for construction contracts amounted to EUR 0.2 million at December 31, 2021, compared to EUR 2,3
million at the end of 2020. Revenues relating to work in progress during 2021 amounted to EUR 0.6 million (EUR 0,5 million
in 2020). The difference between these two amounts, EUR 0,4 million, is booked in the balance sheet.
16. OTHER CURRENT FINANCIAL ASSETS
Other current financial assets relate to options contracted to hedge commitments to staff under the Fund Option Plan
proposed by ING. These options have an average maturity of one year and are valued at fair value (in the income statement).
17. CASH AND CASH EQUIVALENTS
(EUR thousands)
December 31, 2021
December 31, 2020
Cash at bank and in hand (not remunerated)
19,855
11,920
Short-term deposits and remunerated cash accounts
52,289
40,748
Total
72,144
52,668
The short-term deposits run from overnight to less than two months periods according to the group’s immediate cash
requirements and pay at the different rates of the short-term deposits. EVS also receives interest on some of its cash
accounts.
18. NON CURRENT ASSETS HELD FOR SALE
At the end of December 2021, there were no Non-current assets held for sale.
59 FINANCIAL ANNUAL REPORT EVS - 2021
19. OWNER’S EQUITY
19.1. Movements in issued capital
The company was founded on February 17, 1994 with a capital of EUR 30,987 consisting of 1,000 shares and has developed
as follows:
Date
Description
Number of
shares
Capital (EUR)
17.02.1994
Constitution
1,000
30,987
25.04.1996
Incorporation of reserves
-
90,481
25.04.1996
Issuing of 100 shares at EUR 892 per share,
100
12,147
including a share premium of EUR 771 included in capital
77,095
1,100
210,710
06.06.1997
Incorporation of reserves
-
242,440
06.06.1997
Issuing of 172 shares, at EUR 4,338 per share,
172
70,855
including a share premium of EUR 3,926
675,304
1,272
1,199,309
25.09.1998
Stock split by 2,000:1
2,544,000
1,199,309
14.10.1998
Initial Public Offering
+ 200,000
94,284
Incorporation of share premium
7,342,522
2,744,000
8,636,115
07.09.1999
Issuance of 119,952 shares for exchange with NETIA
shareholders
119,952
7,197,120
Incorporation of reserves
166,765
2,863,952
16,000,000
25.05.2003
Treasury shares cancellation
-63,952
-
2,800,000
16,000,000
24.02.2004
Capital reimbursement
-
-8,137,521
15.03.2004
Issuance of 15,000 shares after the exercise of warrants
15,000
480,000
2,815,000
8,342,479
09.05.2005
Stock split by 5:1
14,075,000
8,342,479
19.06.2006
Treasury shares cancellation
-200,000
-
12.06.2009
Treasury shares cancellation
-250,000
-
26.12.2018
Issuance of 702,024 shares
702,024
429,844
Capital on
December 31, 2021
14,327,024
8,772,323
19.2. Issued capital and treasury shares
As of December 31, 2021, the issued capital of EVS amounts to EUR 8,772,323 and is represented by 14,327,024 fully paid
up shares without designation of nominal value. EVS complies with the legal requirements relating to the capital (articles
7:177 to 7:229 of the Belgian Companies and Association Code).
As of December 31, 2021, 456,432 issued warrants with an average exercise price of EUR 19.89 per share are exercisable
until June 2027. From time to time, the company uses a portion of the capital for staff retention and motivation through a
plan of warrants.
The management estimates that the level of capital of EVS is sufficient, as shareholders’ equity represents 73.3% of the
total balance sheet at the end of 2021.
The EVS Group strives to maintain a strong liquidity position and not to rely excessively on external financing. In addition,
the Group has a dividend distribution policy allowing its shareholders to be remunerated in a significant manner, without
compromising the Group’s cash position and its financial independence. In its decisions to finance or decide on the
distribution of dividends, EVS considers the overall level of its shareholders ‘equity. Compared to 2020, shareholders’ equity
increased by EUR 21.8 million and the ratio of financial independence (total equity compared with the total financial position
of the group) stands at 73.3% compared to 73.9% at the end of 2020.
60 FINANCIAL ANNUAL REPORT EVS - 2021
19.3. Authorized capital
In accordance with the resolution adopted by the Extraordinary General Meetings of December 4, 2017, the Board of
Directors is authorized to increase the share capital in one or more installments up to a maximum of EUR 1,600,000,
including share premium. This authorization is valid for a duration of 5 years as from the publication of the deliberation of
the postponed Extraordinary General Meeting of December 4, 2017. These increases in capital can be realized through
cash subscriptions, contributions in kind or incorporation of reserves. Within the limits of this authorization, the Board of
Directors will be able to issue bonds convertible into shares or application rights, in observance of the provisions of articles
7:65 and 7:67 and in accordance with the Belgian Companies and Association Code and the Board can limit or withdraw
the preferential application rights of shareholders, including those in favor of one or more given persons, according to the
procedures to be specified by the Board and, if need be, subject to observance of the provisions of articles 7:190 and in
accordance with the Belgian Companies and Association Code.
19.4. Staff incentive program
19.4.1. Warrants scheme
Since December 1999, the company has set up a stock options/warrants scheme for the group’s employees and managers.
In accordance with the fiscal legislation in force, the scheme has a minimum scope of 3 to 4 years between the granting and
effective exercise of a warrant. This warrant distribution policy has been set up in order to gain the loyalty of the members
of personnel and to allow them to participate in the results of the company. EVS hedges this program through the buy-back
of its treasury shares on the stock market. The Board has the authorization from the Extraordinary General Meeting to
proceed to these buy-backs. In view of the 456,432 warrants outstanding at the end of 2021 (325,832 at the end of 2020),
the dilution effect represents 3.3% of the share capital, this being largely covered by the 925,140 treasury shares, which
represent 6.7% of the number of diluted shares. The voting right and the right to the dividend are suspended during such
time as the shares are held by the company. The warrants are granted at an underlying share value corresponding to the
average share price of the last 30 days preceding the grant. When the warrants are exercised, the Board of Directors may
choose to either issue new shares or to grant treasury shares previously acquired by the company (for this reason, warrants
are qualified as “sui generis”).
During the Extraordinary General Meetings of September 7, 1999 and May 16, 2000, 400,000 warrants (amount recalculated
after the share split in 2004) were issued in favor of the personnel of the EVS Group. The Extraordinary General Meeting of
May 21, 2002 issued 350,000 additional warrants, the EGM of June 7, 2010 issued 250,000 warrants, the EGM of December
5, 2011 issued 350,000 warrants, the EGM of September 24, 2013 issued 25,000 warrants and cancelled 70,000 warrants,
the EGM of December 4, 2017 issued 250,000 warrants and the EGM of June 8, 2020 issued 250,000 warrants, in order to
bring the total number to 1,805,000. As of December 31, 2020, 1,496,650 of these warrants had been distributed, 626,350
exercised and 544,468 cancelled following departures or repurchased following sales of subsidiaries, which means that
325,832 can be exercised as of December 31, 2020. As a result, 149,750 warrants are still available for distribution by the
Board of Directors. The weighted average maturity is March 2025. These warrants may be exercised between now and
March 2025. They have an average exercise price of EUR 28.90 per share. In the course of 2020, 187,000 warrants were
distributed, no warrants were exercised and 167 were cancelled following the departure of personnel.
During 2021, 158,600 warrants were distributed, no warrants were exercised, and 28,000 warrants were cancelled following
the departure of personnel.
The following table illustrates the number and the weighted average price of the period (WAPP) of the warrants in the
scheme:
2021
2020
Number
WAPP (EUR)
Number
WAPP (EUR)
In circulation at the beginning of the
period
325,832
20.17
138,999
28.90
Granted during the period
158,600
18.21
187,000
13,69
Exercised during the period
-
-
Cancelled during the period
-28,000
13,69
-167
28.90
In circulation at the end of period
456,432
19.89
325,832
20.17
The warrants in circulation as of December 31, 2021 and exercisable over the next years are as follows:
Expiry date
First exercise date
Exercise prices
(EUR)
Number on
December 31, 2021
Number on
December 31, 2020
2022
2020
28.90
138,832
138,832
2026
2023
13.69
159,000
187,000
2027
2025
18.21
158,600
-
Total
Between
13.69 and 28.90
456,432
325,832
61 FINANCIAL ANNUAL REPORT EVS - 2021
In accordance with IFRS 2, the warrants are valued on the grant date in order to be charged over the useful life of the
warrant (a vesting period, which is usually 3 years). The Black & Scholes model has been used consistently for this valuation,
on the basis of volatilities, yield of historical and/or expected dividends. The key parameters for the warrants in circulation
as of December 31, 2021 and exercisable over the next years are as follows:
Black & Scholes key parameters
Plan 2021
Plan 2020
Plan 2017
Volatility
33.1%
31.9%
27.3%
Risk free interest rate
-0.53%
-0.7%
0.1%
Dividend return
5.0%
5.0%
3.5%
Economical value of the option vs. underlying share
15.5%
14.5%
14.4%
During 2021, the Group recognized EUR 0.169 million in relation with the warrant schemes (EUR 0.084 million in 2020).
19.4.2. Profit sharing plan
In order to thank, develop loyalty and especially encourage the teams of the group and in accordance with the related law,
a profit-sharing scheme will be proposed. The Ordinary General Meeting of May 17, 2022 shall approve a profit-sharing
scheme in the form of a grant of EVS Broadcast Equipment SA shares relating to the appropriation of the year 2021. Taking
into account tax implications for the company, this grant relates to approximately 56 shares (net of taxes) for all employees
hired by the group before January 1, 2022, proportionally to the effective time performance (or assimilated) in 2021. This
represented around 19.600 shares in total to maximum 350 group’s employees.
During 2021, the Group expensed EUR 0.063 million on the profit sharing plan (EUR 0.268 million in 2020).
The cost relating to the profit sharing plan is included in the “Profit-sharing plan and warrants” account in the consolidated
income statement.
19.5. Treasury shares
During the Extraordinary General Meeting of December 4, 2017, the authorization to buy back own shares has been modified
in Article 10, Paragraph 2, clause 1 of the statutes as follows “According to article 620, section 1, paragraphs 1 to 4 of the
Belgian Company and Association Code, the Board of Directors is authorized (…) to acquire up to 10% of the outstanding
shares of the company at a minimum unit price that will not be below 20% the lowest share price of the last 12 months, and
at a maximum unit price not higher than 20% above the highest closing stock market price of the company's shares on
Euronext Brussels during the 20 trading days preceding such acquisition. Such authorization is granted for a period of 5
years as from the day of the publication in the Appendices of the Official Belgian Gazette of the decision of the Extraordinary
General Meeting of December 4, 2017 and extends to the acquisition of shares of the company by its direct subsidiaries, as
such subsidiaries are defined by legal provisions on acquisition of shares of the parent company by its subsidiaries.”
On October 24, 2018, EVS announced the launch of a share buyback program of a maximum EUR 10 million. Between
October 25, 2018 and December 31, 2020, EVS has bought 528,684 shares at an average price of EUR 18.9149,
representing in total EUR 9,999,995.
On May 6, 2020, EVS Broadcast Equipment announced the decision of its Board of Directors to start a share buyback
program of its outstanding shares for a maximum amount of EUR 5 million. In 2020, EVS has bought 337,155 shares at an
average price of EUR 14.83, representing in total EUR 4,999,999.
Aside of the share buyback program (ended in 2020), no shares were used to satisfy the exercise of warrants by employees.
The Ordinary General Meeting of shareholders of May 18, 2021 approved the allocation of 3,067 shares to EVS employees
(grant of 10 shares to each staff member in proportion to their effective or assimilated time of occupation in 2020) as a
reward for their contribution to the group success.
After aforementioned transactions the total number of own shares amounts to 925,140 shares as of December 31, 2021 (at
an average historical price of EUR 19.21) compared to 928,207 as of December 31, 2020 (at an average historical price of
EUR 21.43).
In 2021, the number of treasury shares moved in number and in weighted average prices (WAP) as follows:
2021
2020
Number
WAP (EUR)
Number
WAP (EUR)
At the beginning of the period
928,207
19.21
400,180
24.81
Buy back on the market
544,307
15.17
Sales on the market
-
Sales linked to the staff incentive program
-3,067
19.21
-16,280
21.43
At the end of the period
925.140
19.21
928,207
19.21
62 FINANCIAL ANNUAL REPORT EVS - 2021
19.6. Reserves
(EUR thousands)
December 31, 2021
December 31, 2020
Legal reserves
999
999
Reserves available for distribution
169,571
148,310
Reserves for treasury shares
-17,776
-17,835
Reserves
152,794
131,474
19.6.1. Reserves for treasury shares
In accordance with the group’s accounting policy, the sums paid or obtained during the acquisition or sale of the company’s
treasury shares are recognized directly in the shareholders’ equity attributable to the company’s shareholders. No profit or
expense is included in the income statement for the purchase, sale, issue or cancellation of treasury shares.
19.7. Translation differences
In accordance with the group’s accounting policy, for the EVS Inc. subsidiary which operates in USD and Axon Digital Design
LTD. subsidiary that operates in GBP, at the closing date, the assets and liabilities are converted into the group’s reporting
currency (EUR) at the exchange rate in force on the reporting date, capital and reserves are converted at historical exchange
rate, and the income statement is converted at the average exchange rate of the period. The translation differences resulting
from this conversion are directly recognized under a distinct heading of equity.
20. LOANS
(EUR thousands)
December 31, 2021
December 31, 2020
Long term financial debts
Bank loans
2,779
3.328
Long term lease liabilities
10,775
8.923
Amount due within 12 months (shown under current liabilities)
Bank loans
1,095
1.632
Short term lease liabilities
2,633
3.080
Other short term debts
-
-
Total financial debt (short and long-term)
17,282
16.963
The total financial debt is repayable as follows :
- within one year
3,728
4.713
- after one year but no more than five
13,554
13.244
- more than five years
-
20.1. Credit lines
On June 16, 2020, a new loan of EUR 5.5 million has been negotiated with BNP Paribas Fortis in order to partially finance
the acquisition of Axon. A first repayment of EUR 0.6 million has been done at the end of fiscal year 2020. The annual
installments is EUR 1.1 million per year between 2021 and 2024 with a final repayment of EUR 0.6 million in 2025 when the
loan will mature.
On June 29, 2020, a roll over credit line of EUR 5.0 million has been negotiated with Belfius bank in order to partially finance
the acquisition of Axon. This amortizing credit line will end at the latest on 30/06/2025. As of this date, EVS has not used
this credit facility.
20.2. Lease liabilities
The increase of the lease liabilities during 2021 is mainly explained by new lease contracts (existing contracts reassessment)
Depending on the countries and the leased assets, the Group used incremental borrowing rates from 2% to 8% for the lease
liabilities (and therefore, the right of use assets) calculation.
63 FINANCIAL ANNUAL REPORT EVS - 2021
The table below shows the maturity analysis (undiscounted cash flows) for the lease liability:
December,31,2020(EUR thousands)
Within 1 year
Between 2 and 5 years
Over 5 years
Total
Lease liabilities
3,434
8,012
1,911
13,357
December,31,2021 (EUR thousands)
Within 1 year
Between 2 and 5 years
Over 5 years
Total
Lease liabilities
3,104
7,656
3,825
14,585
20.3. Liabilities from financing activities
Non-cash changes
In thousands of Euro
1 January
2020
Cash flows
Foreign
exchange
movements
Other
31 December
2020
Long-term borrowings
-
5,500
0
-2,172
3,328
Short-term borrowings
4,050
-4,590
0
2,172
1,632
Lease liabilities
8,746
-3.224
-247
6.729
12.004
Total liabilities from financing activities
12,796
2,297
-267
3,132
16.964
Non-cash changes
In thousands of Euro
1 January
2021
Cash flows
Foreign
exchange
movements
Other
31 December
2021
Long-term borrowings
3,328
-
-
-549
-549
Short-term borrowings
1,632
-1,086
-
549
1,095
Lease liabilities
12.004
-3,417
282
4,539
13,408
Total liabilities from financing activities
16.964
-4,503
282
4,539
17,282
21. PROVISIONS
(EUR thousands)
Other provisions
Technical warranty
Total
Provisions
As of January 1, 2021
85
1,214
1,299
Arising during the year
9
279
288
Utilized
-30
-
-30
Reversed
Others
As of December 31, 2021
9
1,493
1,502
Current 2020
-
-
-
Non-current 2020
85
1,214
1,299
Current 2021
-
-
-
Non-current 2021
9
1,493
1,502
The litigation provisions are registered in the consolidated accounts and correspond to disputes mainly in relation with
commercial or people related matters, whose outcome is still unknown. The amounts allocated to the provisions are
measured according to the best knowledge of the management with regard to these disputes and their reasonability is
discussed with the group’s lawyers.
A provision is booked since 2012 to cover two-year technical standard warranties on the equipment sold as from the delivery,
as stated in our general terms and conditions. This provision, with an undefined term, has been reevaluated quarterly, based
on a historical analysis of the costs incurred over the years to cover two years of costs associated with these warranties.
The end 2021 estimate represented an amount of EUR 1.5 million (EUR 1.2 at the end of 2020).
64 FINANCIAL ANNUAL REPORT EVS - 2021
22. TRADE AND OTHER PAYABLES
(EUR thousands)
December 31, 2021
December 31, 2020
Trade payables
10,497
5,775
Amounts payable linked
-
-
Other related parties
-
-
Total trade payables
10,497
5,775
Other payables
2,532
7,655
Accrued charges
683
902
Deferred income
10,334
5,254
Total
24.046
19,586
Trade payables are non-interest bearing and are normally settled on 45-day terms. Other trade payables mainly consist of
advances received from customers and the contingent consideration related to the acquisition of Axon Group.
During 2020, EVS recognized a contingent consideration related to the acquisition of Axon Group for EUR 1 million. As of
December 2020, EVS has performed a remeasurement of the liability based on an updated business plan and associated
updated financial assumptions. The result of these calculations would not significantly impact the liability initially recognized.
At 2021-year end, EVS reversed the earn out of EUR 1 million related to Axon Group acquisition (refer to note 6.6 other
income other expenses).
23. AMOUNTS PAYABLE REGARDING REMUNERATION AND SOCIAL SECURITY
(EUR thousands)
December 31, 2021
December 31, 2020
Amounts payable regarding social security
724
400
Amounts payable regarding wages and bonuses
9,934
6,605
Total
10,658
7,005
The increase of amounts payable regarding wages and bonuses in 2021 mainly due to the increase of bonuses (fixed and
variable) triggered by the increase of the revenue and net profit.
24. COMMITMENTS AND CONTINGENCIES
24.1. Operating lease commitments
Except for leases already reported under IFRS 16 (see notes 12 and 20), the Group has no material lease commitments to
disclose.
24.2. Commitments relating to technical guarantee in respect of sales
Generally, EVS Group grants a 2-year technical guarantee on products sold subject to the general conditions of sale. We
should note that, at the end of 2021, a provision of EUR 1.5 million (EUR 1.2 million in 2020) is booked in relation with this
warranty, as explained in the note 21.
24.3. Bank guarantees
Bank guarantees amounted to EUR 0.8 million as of December 31, 2021 (EUR 0.8 million in 2020) mainly requested as part
of international public tenders, or as security deposit.
24.4. Contractual guarantees
Contractual guarantees were established for the benefit of contracting persons/partners for a maximum potential amount of
EUR 1.0 million at December 31, 2021 (EUR 1.0 million in 2020).
24.5. Guarantees on asset
Mandates for mortgage with banks were granted for EUR 18 million (same amount for 2020) to guarantee our obligations
with those banks.
24.6. Other guarantees and contingencies
No guarantee to be mentioned.
25. RELATED PARTY DISCLOSURES
25.1. Affiliates
The consolidated financial statements include the financial statement of EVS Broadcast Equipment SA and the subsidiaries
consolidated according to the fully consolidation method listed in note 4. They are representation and distribution
subsidiaries for the products developed by EVS.
65 FINANCIAL ANNUAL REPORT EVS - 2021
The table hereunder provides the total amount of transactions which have been entered into with related parties that are not
fully consolidated (for information regarding outstanding balances at year end, refer to notes 15 and 22).
Sales to and purchases from related parties are made at normal market prices and under usual commercial conditions.
Outstanding balances at year end are unsecured and settlement occurs in cash.
(EUR thousands)
Sales to related
parties
Purchases from
related parties
Amounts due by
related parties
Amounts owed to
related parties
Related parties
Associates :
MECALEC SA
2021
-
-362
-44
2020
-
-399
-
-
Total
2021
-362
-44
2020
-
-399
-
-
25.2. Executives
The amounts disclosed in the table below are the amounts recognized as an expense during the reporting period related to
key management personnel:
The amounts disclosed in the table below are the amounts payable at the reporting period related to key management
personnel:
Share options held by key management personnel to purchase ordinary shares have the following expiry dates and exercise
prices:
Expiry
date
First exercise date
Exercise prices (EUR)
Number on
December 31, 2021
Number on
December 31, 2020
2022
2020
28.90
40,000
40,000
2026
2023
13.69
53,750
62,750
2027
2025
18.21
68,000
-
Total
Between 13.69 and 28.90
161,750
102,750
26. AUDITOR
Since the Ordinary General Meeting of May 17, 2016, the audit of the statutory and consolidated accounts of EVS Broadcast
Equipment SA to EY Reviseurs d’Entreprises SRL (B-00160), represented by Marie-Laure MOREAU (A-01729), Belgian
Réviseur d’Entreprise. The mandate of the Auditor is for three years (ending in May 2019). The mandate has been renewed
for a period of three years at the Ordinary General Meeting held on May 21, 2019.
In 2021, all fees related to the Auditor of the parent company, EY Reviseurs d’Entreprises SRL (B-00160), represented by
Marie-Laure MOREAU and its associates, amounted to EUR 149,200 in aggregate for their duties as Auditor. Other audit
services amounted to EUR 7,500 and non-audit services were carried out by the Commissioner for a total of EUR 36,060.
These missions are compatible with the statutory audit of the consolidated accounts and have been pre-approved by the
audit committee.
(EUR thousands)
2021
2020
Short-term employee benefits
2,126
1,895
Post-employment pension and medical benefits
-
32
Termination benefits
289
-
Share-based payment transactions
63
62
Total
2,478
1,989
(EUR thousands)
December 31, 2021
December 31, 2020
Short-term employee benefits
701
305
Post-employment pension and medical benefits
-
-
Termination benefits
289
-
Total
990
305
66 FINANCIAL ANNUAL REPORT EVS - 2021
27. FINANCIAL RISK MANAGEMENT POLICIES
The group enters into derivative transactions, principally forward currency contract. The purpose is to secure its purchases
and its sales in foreign currencies against negative variations of these currencies. Indeed, the group has transactional
currency exposures. Such exposure arises from sales or purchases by operating entities in currencies other than the group’s
functional currency.
The main risk arising from the group’s financial instrument is described in note 27.2. The group’s principal financial
instruments, other than derivatives, comprise bank loans, finance leases and operating leases, cash and short-term
deposits. The purpose of these financial instruments is to raise finance for the group’s operations.
The group has various other financial instruments such as trade debtors and trade creditors, which arise directly from its
operations. The group’s policy is, and has always been, that no trading in financial instruments shall be undertaken.
28. FINANCIAL INSTRUMENTS
28.1. Fair values of the financial instruments
The estimated fair values of the financial assets and liabilities are equal to their fair book value in the balance sheet
considering (i) their short maturity or (ii) the fact that the interest rate applicable is in line with market conditions.
28.2. Foreign currency risk
Periodically, EVS measures the group’s anticipated exposure to transactional exchange risk over six months to one year. In
its current structure, the group’s exposure is mainly linked to the EUR/USD risk. The group invoices all clients in Euro, except
the United States (in USD), while a lot of operational and fiscal expenses are libeled in USD. As a result, the group is “long”
in USD, i.e. all of the group’s activities generate globally a positive net cash flow in USD.
On the basis of the forecasts and according to the market conditions, the group hedges up to 50% of the exchange rate risk
on estimated net future flows, mainly through forward foreign exchange contracts (in USD). EVS does not apply hedge
accounting according to IAS 39 for those transactions.
Foreign exchange contracts are revalued at each closing at their market value. The generated exchange rate profit or loss
is recorded in the “Other net financial income/(charges) account in the consolidated income statement.
The valuation techniques used are mainly based on spot rates, forward rates and interest rate curves.
On December 31, 2021, the Group has no hedging contract in place. The fair value variation of these financial instruments
during 2021 amounted EUR 0.2 million recognized as a financial expense.
On December 31, 2020, the group held USD 6.5 million in hedging contracts, with an average maturity date in June 2021,
and an average exchange rate of EUR/USD of 1.1829. At year end, the fair value of these hedging contracts is EUR 0.2
million.
28.3. Credit risk
Credit exposure is controlled and reviewed regularly by the management.
Trade receivables consist of a large number of customers, spread across many geographical areas. The evolution of the
credit risk is monitored permanently. As of December 31, 2021 and December 31, 2020, it is assumed that the carrying
amounts of those trade receivables are the most appropriate estimate to the fair value of those assets.
The credit risk on financial instruments is limited because the counterparties are banks with high credit ratings assigned by
international credit rating agencies.
In addition, as explained in the note 24.3, the group is exposed to credit risk in relation with bank guarantees. As of December
31, 2021, the maximum amount the group could have to pay if these guarantees are called on is EUR 0.8 million (EUR 0.8
million in 2020).
29. EVENTS AFTER THE BALANCE SHEET CLOSING DATE
Further to the conflict in Ukraine, EVS is monitoring and will comply with the international sanctions on Russia and Belarus
within the framework of its business in those regions. EVS does not anticipate that the compliance of those sanctions might
impact its business results as the revenue for those regions is not material.
67 FINANCIAL ANNUAL REPORT EVS - 2021
AUDITOR’S REPORT
INDEPENDENT AUDITOR’S REPORT TO THE GENERAL MEETING OF EVS BROADCAST EQUIPMENT SA FOR
THE YEAR ENDED DECEMBER 31, 2021
As required by law and the Company’s articles of association, we report to you as statutory auditor of EVS Broadcast
Equipment SA (the “Company”) and its subsidiaries (together the “Group”). This report includes our opinion on the
consolidated statement of the financial position as at 31 December 2021, the consolidated statement of the realized and un-
realized results, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year
ended 31 December 2021 and the disclosures (all elements together the “Consolidated Financial Statements”) as well as
our report on other legal and regulatory requirements. These two reports are considered one report and are inseparable.
We have been appointed as statutory auditor by the shareholders’ meeting of 21 May 2019, in accordance with the
proposition by the Board of Directors following recommendation of the Audit Committee. Our mandate expires at the
shareholders’ meeting that will deliberate on the Consolidated Financial Statements for the year ending 31 December 2021.
We performed the audit of the Consolidated Financial Statements of the Group during 6 consecutive years.
Report on the audit of the Consolidated Financial Statements
Unqualified opinion
We have audited the Consolidated Financial Statements of EVS Broadcast Equipment SA, that comprise of the consolidated
statement of the financial position on 31 December 2021, the consolidated statement of the realized and un-realized results,
the consolidated statement of changes in equity and the consolidated statement of cash flows of the year and the
disclosures, which show a consolidated balance sheet total of € 220.227 thousands and of which the consolidated income
statement shows a profit for the year of € 34.904 thousands.
In our opinion, the Consolidated Financial Statements give a true and fair view of the consolidated net equity and financial
position as at 31 December 2021, and of its consolidated results for the year then ended, prepared in accordance with the
International Financial Reporting Standards as adopted by the European Union (“IFRS”) and with applicable legal and
regulatory requirements in Belgium.
Basis for the unqualified opinion
We conducted our audit in accordance with International Standards on Auditing (“ISAs”). Our responsibilities under those
standards are further described in the “Our responsibilities for the audit of the Consolidated Financial Statements” section
of our report.
We have complied with all ethical requirements that are relevant to our audit of the Consolidated Financial Statements in
Belgium, including those with respect to independence.
We have obtained from the Board of Directors and the officials of the Company the explanations and information necessary
for the performance of our audit and we believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
Consolidated Financial Statements of the current reporting period.
These matters were addressed in the context of our audit of the Consolidated Financial Statements as a whole and in
forming our opinion thereon, and consequently we do not provide a separate opinion on these matters.
Revenue recognition – complex contracts
• Description of the key audit matter:
As of December 31, 2021, the Group’s turnover amounts to € 137.578 thousands, of which a portion relates to fix price
contracts that are generally spread over several months. Because the revenue recognition process is manual and not
automated, there is a risk that revenues are not be recognized according to the contract terms and that revenues are
recognized in the wrong financial period.
This matter is considered as a key audit matter due to importance of amounts involved, the diversity of contracts as well as
the level of judgment required for complex contracts.
• Summary of audit procedures performed:
We performed the following procedures:
- We assessed the revenue recognition process as well as the operational effectiveness of internal controls.
68 FINANCIAL ANNUAL REPORT EVS - 2021
- We performed analytical procedures comparing revenues, on a desagragated basis, with those of the previous year
and with the budget. Variances were discussed with management.
- We used data analysis tools including all accounting entries to identify revenues that are not recognized through trade
receivables as well as trade receivables that are cleared via an account other than cash. We also used this tool to test
unusual or unexpected entries.
- Based on a statistical sample, we performed cutoff testing by analysing deliveries and receptions close to the closing
date.
- We analyzed significant and complex contracts. We discussed and analyzed the revenue recognition principles adopted
by the Group based on contractual terms.
- We assessed the adequacy of notes 2.25 and 3.2 of the Consolidated Financial Statements.
Goodwill and intangible assets Axon
• Description of the key audit matter:
During the financial year ended 31 December 2020, the Group acquired 100% the shares of Axon and subsidiaries (“Axon”)
for a total consideration transferred of € 12.211 thousands, fully paid in cash. The allocation of the purchase price to
identifiable assets and liabilities acquired was performed by EVS Group and lead to the recognition of intangible assets
amounting to € 10.741 thousands, of which € 2.832 thousands is goodwill.
As of December 31, 2021, the goodwill and intangible assets show a net book value of € 2.832 thousands and € 5.797
thousands.
In accordance with IAS 36, an impairment test was documented by the Company, based on a five-year business plan taking
into account expected sales and costs, with all future cash flows discounted.
Due to the inherent uncertainty related to the forecasts included in the 5-year plan and the assumptions used (discount rate
and growth rate), the level of management judgment and the materiality of the amounts involved, this is considered to be a
key point of our audit.
• Summary of audit procedures performed:
We performed the following audit procedures:
- We discussed with the management about the performance of the CGU Axon and its future perspectives as set out in
the five-year plan.
- We reviewed the minutes of the Board of Directors in order to confirm the information received from management.
- We have analyzed the forecasts of future cash flows in the five-year plan prepared by the management taking into
account in particular the analysis of historical data.
- With the assistance of our internal business valuation specialists, we assessed the assumptions and methods used by
management to determine the recoverable amount of goodwill and intangible assets.
- We compared the recoverable amount of goodwill and intangible assets with their respective net book value and
concluded on the appropriateness of maintaining the net book value.
- In addition, we assessed the adequacy and completeness of the disclosures in note 10 to the consolidated financial
statements based on IFRS requirements.
Responsibilities of the Board of Directors for the preparation of the Consolidated Financial Statements
The Board of Directors is responsible for the preparation of the Consolidated Financial Statements that give a true and fair
view in accordance with IFRS and with applicable legal and regulatory requirements in Belgium and for such internal controls
relevant to the preparation of the Consolidated Financial Statements that are free from material misstatement, whether due
to fraud or error.
As part of the preparation of Consolidated Financial Statements, the Board of Directors is responsible for assessing the
Company’s ability to continue as a going concern, and provide, if applicable, information on matters impacting going concern,
The Board of Directors should prepare the financial statements using the going concern basis of accounting, unless the
Board of Directors either intends to liquidate the Company or to cease business operations, or has no realistic alternative
but to do so.
Our responsibilities for the audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance whether the Consolidated Financial Statements are free from material
misstatement, whether due to fraud or error, and to express an opinion on these Consolidated Financial Statements based
on our audit. Reasonable assurance is a high level of assurance, but not a guarantee that an audit conducted in accordance
with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these Consolidated Financial Statements.
In performing our audit, we comply with the legal, regulatory and normative framework that applies to the audit of the
Consolidated Financial Statements in Belgium. However, a statutory audit does not provide assurance about the future
viability of the Company and the Group, nor about the efficiency or effectiveness with which the board of directors has taken
or will undertake the Company's and the Group’s business operations. Our responsibilities with regards to the going concern
assumption used by the board of directors are described below.
69 FINANCIAL ANNUAL REPORT EVS - 2021
As part of an audit in accordance with ISAs, we exercise professional judgment and we maintain professional skepticism
throughout the audit. We also perform the following tasks:
- identification and assessment of the risks of material misstatement of the Consolidated Financial Statements, whether
due to fraud or error, the planning and execution of audit procedures to respond to these risks and obtain audit evidence
which is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting material misstatements
resulting from fraud is higher than when such misstatements result from errors, since fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control;
- obtaining insight in the system of internal controls that are relevant for the audit and with the objective to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control;
- evaluating the selected and applied accounting policies, and evaluating the reasonability of the accounting estimates
and related disclosures made by the Board of Directors as well as the underlying information given by the Board of
Directors;
- conclude on the appropriateness of the Board of Directors’ use of the going-concern basis of accounting, and based on
the audit evidence obtained, whether or not a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s or Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Consolidated
Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on audit
evidence obtained up to the date of the auditor’s report. However, future events or conditions may cause the Company
to cease to continue as a going-concern;
- evaluating the overall presentation, structure and content of the Consolidated Financial Statements, and evaluating
whether the Consolidated Financial Statements reflect a true and fair view of the underlying transactions and events.
We communicate with the Audit Committee within the Board of Directors regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
Because we are ultimately responsible for the opinion, we are also responsible for directing, supervising and performing the
audits of the subsidiaries. In this respect we have determined the nature and extent of the audit procedures to be carried
out for group entities.
We provide the Audit Committee within the Board of Directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Audit Committee within the Board of Directors, we determine those matters that
were of most significance in the audit of the Consolidated Financial Statements of the current period and are therefore the
key audit matters. We describe these matters in our report, unless the law or regulations prohibit this.
Report on other legal and regulatory requirements
Responsibilities of the Board of Directors
The Board of Directors is responsible for the preparation and the content of the Board of Directors’ report on the Consolidated
Financial Statements.
Responsibilities of the auditor
In the context of our mandate and in accordance with the additional standard to the ISAs applicable in Belgium, it is our
responsibility to verify, in all material respects, the Board of Directors’ report on the Consolidated Financial Statements, the
non-financial information attached to the Board of Directors’ report, as well as to report on these matters.
Aspects relating to Board of Directors’ report
In our opinion, after carrying out specific procedures on the Board of Directors’ report, the Board of Directors’ report is
consistent with the Consolidated Financial Statements and has been prepared in accordance with article 3:32 of the Code
of companies and associations.
In the context of our audit of the Consolidated Financial Statements, we are also responsible to consider whether, based on
the information that we became aware of during the performance of our audit, the Board of Directors’ report contains any
material inconsistencies or contains information that is inaccurate or otherwise misleading. In light of the work performed,
there are no material inconsistencies to be reported.
The non–financial information required by article 3:32, § 2, of the Code of companies and associations has been prepared
as a separate report and is not included in the Board of Directors’ report on the Consolidated Financial Statements. The
Company has prepared this non-financial information based on GRI. However, we do not comment on whether this non-
financial information has been prepared, in all material respects, in accordance with GRI.
70 FINANCIAL ANNUAL REPORT EVS - 2021
Independence matters
Our audit firm and our network have not performed any services that are not compatible with the audit of the Consolidated
Financial Statements and have remained independent of the Company during the course of our mandate.
The fees related to additional services which are compatible with the audit of the Consolidated Financial Statements as
referred to in article 3:65 of the Code of companies and associations were duly itemized and valued in the notes to the
Consolidated Financial Statements.
European single electronic format (“ESEF”)
In accordance with the standard on the audit of the conformity of the financial statements with the European single electronic
format (hereinafter "ESEF"), we have carried out the audit of the compliance of the ESEF format with the regulatory technical
standards set by the European Delegated Regulation No 2019/815 of 17 December 2018 (hereinafter: "Delegated
Regulation").
The board of directors is responsible for the preparation, in accordance with the ESEF requirements, of the consolidated
financial statements in the form of an electronic file in ESEF format in the official French language as well as the free
translation into English (hereinafter 'the digital consolidated financial statements') included in the annual financial report
available on the portal of the FSMA (https://www.fsma.be/en/data-portal) in the official French language as well as the free
translation into English.
It is our responsibility to obtain sufficient and appropriate supporting evidence to conclude that the format and markup
language of the digital consolidated financial statements comply in all material respects with the ESEF requirements under
the Delegated Regulation.
Based on the work performed by us, we conclude that the format and tagging of information in the digital consolidated
financial statements of EVS Broadcast Equipment SA per 31 December 2021 included in the annual financial report available
on the portal of the FSMA (https://www.fsma.be/en/data-portal) in the official French language are, in all material respects,
in accordance with the ESEF requirements under the Delegated Regulation, and we conclude that the format of the free
translation of the digital consolidated financial statements included in annual report in English corresponds to the digital
consolidated financial statements included in the annual financial report in the official French language.
Other communication
This report is consistent with our supplementary declaration to the Audit Committee as specified in article 11 of the regulation
(EU) nr. 537/2014.
Liege, 15 April 2022
EY Bedrijfsrevisoren BV
Statutory auditor
Represented by
Marie-Laure Moreau *
Partner
*Acting on behalf of a BV/SRL
71 FINANCIAL ANNUAL REPORT EVS - 2021
BELGIAN GAAP PARENT COMPANY
FINANCIAL STATEMENTS
These financial statements are related to the figures for the parent company, EVS Broadcast Equipment SA (Belgium).
These statements are disclosed according to the short version allowed by Article 3:17 of the Belgian Company and
Association Code. They are filed at the “Banque Nationale de Belgique” and are available on request at the company’s head
office, but also on the company website (www.evs.com). They have been unconditionally attested by EY, Auditors,
represented by Marie-Laure MOREAU, Partner.
STATUTORY MANAGEMENT REPORT
As foreseen by the Law, the consolidated management report has been drawn up to also be used as the management
report on the parent company’s financial statements. The management report on the parent company’s financial statements
is therefore similar to the consolidated management report, except for the following notes:
- The parent company’s financial statements include the figures for the head office in Liege (Belgium): revenue of
EUR 113,218 thousand, representing 82.3% of the consolidated amount.
- The profit of the year amounts to EUR 34,770 thousand, compared to EUR 2,746 thousand in 2020. The balance sheet
total amounts to EUR 190,047 thousand.
- In 2021, EVS Toulouse SAS paid dividends to its parent company EVS for a total amount of EUR 1.0 million.
- In accordance with the Article 3:6 of the Belgian Company Code, within the Audit Committee, Philippe Mercelis (having
more than 30 years of experience in financial services industry), Chantal De Vrieze (Certificate in law, and many years
of experience in executive functions, incl. in the Altran and Econocom groups), Martin DePrycker (holding a Ph.D in
Computer Sciences, as well as a MBA from the University of Antwerp) and the president of the board who is also a
member of the audit committee, have the competencies in accounting and audit.
- Since 2016, research expenses can no longer be included in the balance sheet. Only the development costs can be
capitalized in the balance sheet. Research expenses incurred in previous years remain subject to the previous regime.
In 2021, EVS incurred an amount of EUR 18.3 million for R&D expenses, which were amortized immediately and fully
in accordance with the new valuation rules in this area.
- No event other than those reported in the consolidated management report has affected the parent company’s financial
statements.
72 FINANCIAL ANNUAL REPORT EVS - 2021
BELGIAN GAAP STATUTORY INCOME
STATEMENT
(EUR thousands)
2021
2020
Operating income
139,322
90,595
A. Turnover
113,218
68,539
B. Increase (+)/decrease (-) in stocks of finished goods, work and contracts in
progress
5,793
2,628
C. Capitalized production
18,333
17,158
D. Other operating income
1,978
2,271
E. Non-recurring income
-
-
Operating charges
-108,393
-86,176
A. Raw materials, consumables and goods for resale
-22,635
-14,991
1. Purchases
-21,702
-17,507
2. Increase (+)/decrease (-) in stocks
-933
2,516
B. Services and other goods
-31,680
-24,045
C. Remuneration, social security costs and pensions
-28,835
-24,901
D. Depreciation of and other amounts written off on formation expenses, intangible
and tangible fixed assets
-21,862
-20,861
E. (+)/(-) in amounts written off on stock and trade debtors
-1,919
-668
F. (+)/(-) in provisions for liabilities and charges
-1,197
-226
G. Other operating charges
-264
-484
H. Non-recurring charges
-1
-
Operating profit
4,419
Financial income
3,258
3,272
A. Income from financial assets
1,226
1,525
B. Income from current assets
13
5
C. Other financial income
2,019
1,742
Financial charges
1,360
-7,358
A. Interest and other debt charges
-347
-270
B. Write-offs on current assets other than stocks, work in progress and trade
receivables (+, -)
2,327
-1,200
C. (+)/(-) in amounts written off on current assets
-621
-1,584
X. Charges financières non récurrentes
-
-4,304
Profit on ordinary activities before taxes (+,-)
35,548
333
Transfer and withdrawal from deferred taxation
131
80
Income taxes
-909
2,333
Result for the period (+, -)
34,770
2,746
Transfers from not taxable reserves
1,136
985
Transfers to not taxable reserves
-421
-
Result for the period available for appropriation (+, -)
35,485
3,730
Appropriation account*
A. Result to be appropriated
57,148
29,168
B. Transfers from reserves
-
C. Transfers to reserves
-744
-744
D. Profit / Loss to be carried forward
-49,702
-21,663
E. 1. Dividends
-6,701
-6,699
E. 2. Other equivalents
-62
*The 2020 figures have been updated with the results allocation approved by the Ordinary General Meeting of 18 May
2021
73 FINANCIAL ANNUAL REPORT EVS - 2021
BELGIAN GAAP STATUTORY BALANCE
SHEET
ASSETS
(EUR thousands)
31.12.21
31.12.20
Fixed assets
55,455
57,399
Intangible assets
105
63
Tangible assets
39,651
41,804
A. Land and buildings
37,310
39,816
B. Plant, machinery and equipment
71
129
C. Furniture and vehicles
1,369
1,280
D. Leased assets
-
184
E. Other tangible assets
23
23
F. Assets under construction and advance payments
878
371
Financial assets
15,699
15,532
A. Affiliated companies
15,512
15,346
1. Participating interests
5,454
5,454
2. Amounts receivable
10,058
9,892
B. Other companies linked to participating interests
99
99
1. Participating interests
99
99
2. Amounts receivables
-
-
C. Other financial assets
88
88
1. Participating interests
-
-
2. Receivable and cash guarantee
88
88
Current assets
134,592
104,061
Amounts receivable after more that one year
A. Trade debtors
Stocks and contracts in progress
20,785
18,502
A. Stocks
20,785
18,502
1. Raw materials and consumables
10,376
10,550
2. Goods in process
2,058
-
3. Finished goods
5,842
5,931
4. Goods for resale
2,509
2,021
B. Goods in process
-
-
Amounts receivable within one year
34,531
28,451
A. Trade debtors
30,286
26,569
B. Other amounts receivable
4,245
1,882
Investments
24,276
33,926
A. Treasury shares
17,776
15,501
B. Other investments and deposits
6,500
18,425
Cash at bank and in hand
52,733
20,714
Deferred charges and accrued income
2,267
2,468
TOTAL ASSETS
190,047
161,460
74 FINANCIAL ANNUAL REPORT EVS - 2021
LIABILITIES
(EUR thousands)
31.12.21
31.12.20*
Capital and reserves
161,815
127,322
Capital
8,772
8,772
A. Issued capital
8,772
8,772
Share premium
14,462
14,462
Reserves
78,559
78,530
A. Legal reserve
877
877
B. Reserves not available for distribution
19,150
15,501
1. In respect of treasury shares
19,150
15,501
C. Not taxable reserves
2,686
3,401
D. Reserves available for distribution
55,846
58,751
Profit / Loss carried forward
49,702
21,663
Investment grants
3,618
3,894
Provisions and deferred taxation
3,820
2,753
A. Provision for liabilities and charges
3,059
1,862
B. Deferred taxation
761
891
Creditors
31,113
31,385
Amounts payable after one year
2,789
3,337
A. Financial debts
2,779
3,328
1. Debts from leasing agreements
-
-
2. Credit institutions
2,779
3,328
B. Other amounts payable
10
9
Amounts payable within one year
22,095
24,905
A. Current portion of amounts payable after one year
1,095
1,759
B. Financial debts
-
-
C. Trade debts
11,874
7,803
1. Suppliers
11,874
7,803
D. Advances received on orders
678
3,191
E. Taxes, remuneration and social security
8,341
5,308
1. Taxes
1,499
850
2. Remuneration and social security
6,842
4,459
F. Other amounts payable
107
6,844
Accrued charges and deferred income
6,229
3,143
TOTAL LIABILITIES
190,047
161,460
*The 2020 figures have been updated with the results allocation approved by the Ordinary General Meeting of 18 May
2021
75 FINANCIAL ANNUAL REPORT EVS - 2021
APPENDIX TO PARENT COMPANY
FINANCIAL STATEMENTS
Capital as of December 31, 2021 (EUR thousands)
Amounts
Number of shares
A. Share capital
1. Issued capital
8.772
14,327,024
2. Structure of capital
2.1. Different categories of shares
Shares without face value
8.772
14,327,024
2.2. Registered shares and bearer shares
Registered shares – as of December 31, 2021
1,274,979
Dematerialized shares – as of December 31, 2021
13,052,045
B. Treasury shares held by the company itself
19,150
925,140
C. Commitments to issue shares
1. Following the exercise of subscription rights
- Number of outstanding subscription rights
456,432
- Amount of capital to be issued
9,078
- Maximum number of shares to be issued
456,432
D. Amount of authorized capital, not issued
1,170