Upload
timothy212
View
211
Download
2
Embed Size (px)
DESCRIPTION
Citation preview
D i g i g r a m
24 septembre 2002
Half-year results Merger Aztec - Audemat
D i g i g r a m
Our business
To develop networking solutions
for digital audio
Our expertise
Audio, networks, IT
Digigram’s fundamentals
D i g i g r a m
Broadcast
Market
(63% of global turnover
in 1 HY 2002)
Public Address
Market
(37% of global turnover
in 1 HY 2002)
Tra
dit
ion
al
Acti
vit
y
Gro
wth
Pot e
nt i
al
Two B to B markets
Sound cards, audio editing
software, interfaces for
remote control of radio
stations,…
Audio network terminals
for recording and play
out, audio production
software,…
> Goals for end of 2002 : achieve 40 % of global turnover in the Public Address market
Digigram’s fundamentals
D i g i g r a m
History of strong growth, a global turnover in 2001 of 20.2 million EUR
International scope: 76 % of turnover on June 30, 2002
Confidence of international key players in the market
Permanent technical innovation with R & D representing about 13 % of turnover on June 30, 2002
Low indebted company, with a gearing of 10.6 % on June 30, 2002
Digigram’s fundamentals
D i g i g r a m
Contents
Highlights of first half-year 2002
Half-year results declining
News: agreement signed with Audemat Merger Aztec – Audemat
Maintaining a growth strategy
Market valuation
D i g i g r a m
Contents
Highlights of Highlights of first half-yearfirst half-year
D i g i g r a m
First half-year very active for Digigram
Highlights of first half-year 2002
Continuous enhancement of the product portfolio• Launch of new sound cards 4-channel VXpocket,
PCX924-Mic, VX222-Mic, VX442• New networked audio terminals: mpX Platform• Excellent feedback on new audio network technology
EtherSound ® and launch of associated products ESnet et ES8
Sales pressure rewarded• Digitalization of BBC World Service radio stations (more
than 1,000 sound cards)• 1 million $ contract for InnovaSon in the US• OEM contract with Bouyer for audio installations in train
stations (miXart 8 cards)• EtherSound ® contracts with Fostex Japan, Nexo and
Bouyer signed
D i g i g r a m
100 % acquisition of Innova SON complete: Acceleration of development in the public address market
> Operation which entails an increase of the EPS as soon as 2003
Highlights of first half-year 2002
A specialist business:Pioneer in the design of digital audio mixing consoles for sound reinforcement in live performance
Terms of operation:- Financed by bank loan (2nd half-year 2002)- Initial stake since January 2001 (44.7 %)- Consolidation as of July 1, 2002
2001 2002e
Turnover 4.2 million € (+ 90% vs 2000) 5 million €Staff 31 people
D i g i g r a m
Acquisition of Innova SON completed:Acceleration of development in the public address market
> Improved penetration of the public address market
Highlights of first half-year 2002
Technological synergiesTransfer of skillsLaunch of products under the Innova SON brand name
Optimization of sales networksComplimentary in skills and geographical spreading of distribution channels
D i g i g r a m
Business analysis by market: BROADCAST
Highlights of first half-year 2002
First half-year impacted by negative economical context, except for the US where the situation is clearing up
Business Broadcast 1 HY 2001 1 HY 2002 Var. %
US 900 1,135 + 26.1%
Europe* 3,029 2,052 - 32.2 %
France 1,615 1,358 - 15.9 %
Asia 920 768 - 16.5 % 6,464 5,313 - 14.2 %
* outside France
D i g i g r a m
Highlights of first half-year 2002
US:US: recovery of radio advertising expenditure
• According to CMR, up 7.5 % in 1st half-year 2002 (source: half-yearly report of advertising expenditure)
Business analysis by market: BROADCAST
0
4
8
12
16
20
Million USD
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
e
Years
Source: Revenu Advertising
Bureau
> Progressive recovery of investment in the radio market in the US
D i g i g r a m
Highlights of first half-year 2002
Business analysis by market: BROADCAST
EuropeEurope: radio advertising expenditure down 1.4 % between 2000 and 2001
• (Source: Carat Network)
> Recovery of investment expected for the European radio markets
FranceFrance: radio advertising expenditure down 11.2 % between 2000 and 2001
• (Source: AACC)
D i g i g r a m
Business analysis by market: PUBLIC ADDRESS
Highlights of first half-year 2002
1st half-year still suffering from the economical context, except for Asia where volumes recover
Business 1 HY 2001 1 HY 2002 Var. %Public Address (million €)
US 1,601 1,472 - 8.0 %
Europe* 1,029 782 - 24.0 %
France 822 543 - 34.0 %
Asia 184 324 + 76.0 % 3,636 3,121 - 17.8 %
* outside France
D i g i g r a m
Business analysis by market: PUBLIC ADDRESS Market estimated at 8.5 billion $ (market consensus) Business: audio distribution in public venues Applications in a big number of diversified venues
• Exceptional quality and high fidelity of any sound• Utmost clearness of spoken announcements• Announcements and background music• Maximum system security
Technology shift unavoidable• Shift from analog to digital:
– Mixing consoles– Amplifiers, audio processors– Microphones, loudspeakers
• Systems will be network centric:– substantial reduction of wiring costs– flexibility et new possibilities
Highlights of first half-year 2002
D i g i g r a m
Digigram Offering Customers Applications
Technology (licences)Networked audio
Devices & cards
Off-the-shelf products
«pro-audio» Manufacturers
and «security & communication»
Integration of our technologies within
their products
VAR (*) Large scale projects
(*) VAR : « value added resellers »
Distributors Projects at smaller scale
Highlights of first half-year 2002
Business analysis by market: PUBLIC ADDRESS
> Process of « maturation » may be long
D i g i g r a m
Highlights of first half-year 2002
Broadcast market: consolidation of leadership• Continued increase of market share (renewal of
digitalization contracts) => 63 % of turnover 1 HY 2002
Public Address market: Evolution of listing and business development with manufacturers and distributors
• Finalization of contracts in process with 10 major market players (Europe, US, Japan) regarding Digigram’s networked audio technology EtherSound ®
• Europe: contracts signed with several major players• US: set-up of a representative network (reps), OEM contract with
Bombardier signed• China: contracts signed with two major distributors
=> 37 % of turnover 1 HY 2002
Business analysis by market
D i g i g r a m
Business analysis by geographical area
Highlights of first half-year 2002
1 HY 1 HY 1 Q 02/01 2 Q 02/01 1 HY 02/01
US 2.5 2.6 - 31.07 + 38.35 + 4.27
Asia 1.1 1.1 + 16.84 - 11.58 - 0.99
France 2.5 2.0 - 20.68 - 18.60 - 19.58
Europe 3.8 2.6 - 45.90 - 14.07 - 30.89(outside France)
in million €
8.410.1 - 30.34%
2001 2002 Variations (%)
- 3.58% - 16.45 %
> Business is globally recovering during the 2nd quarter
D i g i g r a m
Contents
Half-yearHalf-yearresultsresults
D i g i g r a m
Half-year results 2002
Half-year results decreaseDecreased business (- 16.5 % 1st Quarter 2002) with operating expenses almost at the same level
Positive results in the 2nd quarter
(in million €) 1 Q 2002 2 Q 2002 1 Q 2002
Turnover 3.38 5.05 8.43Operating profit (0.59) 0.63 0.04Attributable net profit (0.43) 0.12 (0.31)
D i g i g r a m
(in million €)
Turnover
Gross profit
Operating profit
Non-operating revenue and expenses
Net profit before tax and except. items
Net exceptional loss
Taxes
Net profit bef. amort. of goodwill
Attributable net profit
8.43
6.57
0.04
-0.22
-0.17
-0.07
0.18
-0.05
-0.31
1 HY 2001
10.10
7.51
1.22
0.09
1.31
0
0.39
0.92
0.66
1 HY 2002
Half-year results 2002
Intermediate balance
D i g i g r a m
Half-year results 2002
Increase of gross profit to 78 % (vs. 74 %) in relative value
Decrease of 12.5% in absolute value
Decrease of rate of operating income due to:
Decrease of half-year business 11 % rise in personnel costs
• Effect of recruitments in 2001
D i g i g r a m
1 HY 2001
0.71.1
- 1.10
- 0.9
- 1.0- 1.9
(in million €) Attributable net profitCash flowNet change in WCRNet cash flow from operationsNet cash flow f. invest. activitiesNet cash flow fromfinancing activitiesChange in net cash position
1 HY 2002
(0.3)0.21.82.00.0
- 0.31.6
Cash flow
Half-year results 2002
D i g i g r a m
Fixed assets
Inventories
Operating receivables
Cash and other short-term funds
Other debtFinancial debtProvisions
Shareholders’ equity
total balance15.8 million €
Assets Liabilities
Balance sheet (as of June 30, 2002)
> Gearing of 10.6 %
Half-year results 2002
5.5
2.6
4.7
3
11.6
0.21.22.8
D i g i g r a m
Half-year results 2002
In reaction to the half-year results, Digigram
has submitted on September 23 a
business reengineering planbusiness reengineering planto the employee council for information
and consultation
Business engineering plan
D i g i g r a m
Contents
News: News:
Memorandum of understanding Memorandum of understanding
with Audematwith Audemat
signedsigned
Merger Aztec – AudematMerger Aztec – Audemat
D i g i g r a m
Merger Aztec Radiomedia / Audemat
About Audemat
Market Audio transmission in radio and TV (monitoring, coding)
Business Design and marketing of electronics and software products
Technologies Electronics of digital audio radio transmisssion
Figures (2001) Turnover = 3.2 million €, with 59 % in exportNet profit = 0.1 M€Staff: 30 employees (incl. 12 in R & D)
International Operating in more than 25 countries
Diversified TDF, Towercast (NRJ), CSA (all France), RAI (Italy),Customers Deutsche Telecom, BBC, Teracom (Sweden),
Medialatina (Spain), Swisscom, Radio Centro (Mexico)…
D i g i g r a m
Merger Aztec Radiomedia / Audemat
Two European leaders join forces-> acceleration of international growth
perspectives
Brand image Size effects
Complimentary product ranges Technological synergies
Economics of scale
D i g i g r a m
Merger Aztec Radiomedia / Audemat
Competitive positionning / development factors, Monitoring and coding
Productdiversity
InternationalCoverage
> A concentrated market
BelarPotomac
Sectra
Aztec -Audemat
Rohde et Schwarz
Burck
D i g i g r a m
Merger Aztec Radiomedia / Audemat
Terms of operation Completion of merger
• December 31, 2002 Current Audemat management to manage new entity
Steps of the operation• Transfer of Aztec Radiomedia’s ‘Public Address’ activities
to Digigram SA• Audemat’s contribution to Aztec as merger-absorption• Participation of Audemat shareholders in Aztec of
approximately 60 % via securities exchange
D i g i g r a m
Merger Aztec Radiomedia / Audemat
Before merger After merger
Digigram SA
Aztec Radiomedia
Innova SON
100 %100 %
Digigram SA
Aztec Radiomedia/ Audemat
Innova SON
100 %40 %
Financial package of the operation
D i g i g r a m
Contents
Maintaining a Maintaining a growth growth
strategystrategy
D i g i g r a m
Strategy
BROADCAST MARKETReinforce the position of market leader
By:
- Exploiting the complementary product ranges
- Benefiting from larger size, following the Aztec/Audemat merger
- Capitalizing on well established brands Aztec Radiomedia and
Audemat
D i g i g r a m
Repeat the success obtaines in the Broadcast marketStimulate and support shift of installations
Analog technology Digital technology
Based upon:• Our competitive technological advantage
– in audio processing (mixing desks)– in networked audio distribution
• Our reputation• Our international sales coverage
PUBLIC ADDRESS MARKETBecome a major player
Strategy
D i g i g r a m
Objectives
2002 Turnover in 2002 of 19 - 20 million € A balanced net profit (before exceptional charges)
2003 Return to growth and profitability
D i g i g r a m
Contents
Market valuationMarket valuation
D i g i g r a m
FoundersSelf-regulatedFloating
54%
3 %
43 %
Market valuation
Shareholders
D i g i g r a m
Market valuation
Stock data
Euroclear codeMarket sectionNumber of sharesShare prize as of September 20, 2002Capitalization as of September 20, 2002Floating
3578Second Marché
2,100,0003.05 €6.4 M€
43%
D i g i g r a m
Digigram is part of the stock index IT Cac.
Market valuation
Share prizes (in Euros)
Source: Boursorama
D i g i g r a m
October 31, 2002Turnover 3rd Quarters 2002
January 31, 2003Annual turnover 2002
Beginning of march 2003 :Annual results 2002
Market valuation
Timetable for investor communications
D i g i g r a m
DIGIGRAM - Bernard MOSSE - +33 (0)4 76 52 47 47
Web site: www.digigram.com
E-mail: [email protected]
Press releases published on www.actifinews.comwww.digigram.com
Half-yearly investor newsletter (in French)
Investor communications consultant ACTIFIN - Anne ANSELIN - +33 (0)1 56 88 11 11
Investor relations
Contacts
D i g i g r a m
Digigram’s trump cards
High brand recognition Strong technological differentiation A model of growth and a historical profitability that will be
rewarded by the recovery of the economy Market leader position in the broadcast market Development in the Public Address market, Digigram’s
established factor of growth Wide spread and effective distribution network Company with solid financial foundations
> Digigram is ready to benefit from a recovery of the economy