EVS Broadcast Equipment S.A.

Welcome to our Health Year Results. It will be an interesting session for sure today. We have quite some things to talk about. But before we start, I'll ask Wehrle to read that disclaimer that you're used to hear from Wehrle, Peter.

Yes, good morning to all. As usual, this presentation contains some forward-looking statements, for instance, around microeconomics, some business information, or some surrounding financial conditions. As a management team, we assess all this information when we provide our forward-looking statements. Those forward-looking statements obviously include some risks and some uncertainties. risks and uncertainties, for instance, in relation to technology or market situation or any macroeconomic events. Such events could have an adverse effect towards our forward-looking statements, and EVS does not undertake any obligation to publicly release a revision of our forward-looking statements should such an event occur.

Thank you, Veerle. So, what will we be thinking about today? So, we have packed that agenda today. Of course, a business update. We'll talk also about the acquisition that we have announced also yesterday evening. We have a market update, a financial update, of course, and outlook conclusions. And it will take some time to answer your questions and answers. So, let me start with that business update. Before I dive into that slide, there are three things I would like to make sure that you remember of the session of today. The first topic is, or the first thing to remember is that title that we put forward here, and that is a strong order intake and strategic wins confirm our full year guidance despite H1 revenue delays. So that's an important first topic I want to make sure you remember today. Second point I want to make sure you take from the day is that on July 8th we achieved indeed that important milestone of €100 million revenue that also brings us to a simulated EBIT of about €21.8 million. So that's indeed another important topic that I want you to remember today. And last but not least, of course, that third point of today is about the acquisition of US-based telemetrics which further complements our solution portfolio and which will give us access to a higher TAM. So those are the three important topics and let me end with that last topic about telemetrics that the numbers that they will produce in Q4 are not yet in our revenue and EBIT provisions for the rest of this year. So what are we talking about here? Market and customers and we see indeed a new record of order book. So that definitely shows that our play forward strategy is delivering those expected results. We are achieving 175 million, a new record for EVS. We see a strong H1 order intake. We see on the revenue side indeed that we achieved the 100 million euro mark on July 8th, but at the end of June we were somewhere at 91 million, but I'll let Veerle further comment on that of course in her detailed overview. We see that North America, Latin America region and the live audience business market are driving our growth, both in order intake and in revenue, and again in line with our play forward strategy. And we are also happy to see that our AVS technology will be at the core of the 2026 major sport events, and especially also including VMapp in those summer events. When we talk about corporate topics, well, it's clear that our focus on North America is paying off. We further strengthened the team, and we have opened a new center in Denver. We've been working hard to counter certain US tariffs that have been implemented in the market a few months ago, so no surprise to that, but it did put some pressure on the way we were operating and the need for us to adapt, but Vera will also give some more explanation about that later on. We're happy to say that we do another acquisition this time of Telematrix, a US-based company. And Benoit, who is here present today, will also give more explanation of why we do that, what is the rationale and the intent that we have by acquiring this US-based company. And last but not least on those corporate topics, we are happy to see that on the ESG dimension we further gaining speed, and that this is also being confirmed by external evaluations that we get from companies like Egovalis, which has reaffirmed the fact that we have a silver medal. When we look to our technologies, We're happy to continue working on the new generative AI solutions that we integrate in our live section, but also in some other products. We have worked hard on MoveUp and MoveIO, which have been developed in Porto and which have been launched at NAB in Vegas earlier this year. And where we're also quite happy with is the announcement that we made with the University of Liège, where we are sponsoring a chair for AI in sports, and that will definitely help us to further focus on the developments of our AI capabilities, in this case in sport environments. And the last topic here on this slide is about shareholders. So what is important to remember is indeed that we are confirming that full year guidance both on the revenue and on EBIT despite the economical uncertainties that we are facing like many other companies at this moment in time. And last but not least, We will have soon IBC Amsterdam in September, where we will also organize a shareholder event, and where you will be able to see our latest technologies that we launch on the market. Next slide. Veerle, that is one for you.

Yes, so the financial highlights for the first semester of 2025, as Sergio mentioned, is marked by a very strong order intake and some strategic wins. So if you look at our order book, first of all, we closed the half year with an order book of €174.8 million, which is actually an increase of 23.4%. And this is a testimony of the strong order intake we'd had in the first half. Once normalized for big event rental, the growth is still of 14%, and it's definitely securing a longer-term growth for our company. On the other side, our revenue was disappointing. We had some temporary delays in revenue recognition linked to new business models that are being introduced, for instance, to cope with the tariffs in the U.S., Our revenue was at 91.8 million euro, which is a decline year over year of 6.4%. Once normalized for big event rental, it is a decline of 1.9%. And we will definitely go further into details when we go into the financial update. That revenue delay also had its impact on the EBIT. We have an EBIT performance at 14.8 million euro, which is a decline of 38.1%. Again, the impact of the revenue delay is important there. EBIT would have been at 21.8 million euros if we would have normalized and reached the 100 million revenue mark that we envisioned. Our net profit is also impacted by this revenue delay and ends at €13.3 million, which is a 39.2% decline year over year. From a team member's perspective, we ended the first half with 728 FTEs, growing actually 86 FTE year-over-year, of which 48 FTEs are linked to portal. The remainder of the FTEs are primarily in sales, pre-sales, and support resources to sustain our Double Down North America plan. Okay.

thank you vela that brings us to the next important topic of today and one of those elements definitely that you have to take away from this presentation today that's the mna transaction the acquisition of telemetrics that we announced yesterday evening and which is clearly in line with the play forward strategy that we've been implementing since a few years and remember we've done acquisitions in 2020 with axon last year also with emoji technologies in portugal we did also run the capital increase of another Belgian company and we took a minority interest in TinkerList and now we are happy to announce a new transaction, a new acquisition in North America. And I'll leave the floor to Benoit to explain what we are doing here.

Thank you, Serge. Good morning or good afternoon. In fact, EVS invests in media production robotics. What is media production robotics? As you can see, On the left part of the slide, these are mechanical parts that are installed within studios, TV studios most of the time, and these mechanical parts move automatically. embed or they support a camera, in fact, so media production robotics does not include the market of camera, but only the mechanical parts that move the camera within the studio. All these systems are driven by some controllers, and in fact the controllers can be hardware controllers, typically with two joysticks to control the positioning of the robot, In fact, and by software controllers. We have different kinds of robots. It can be just a pan tilt to move the camera in a different direction while the camera is fixed. But it can be also put on rails as teleglide and the rails can be on the ground or on the roof. It can be moving in two dimensions on the ground as OmniGlide, or it can move up and down with the elevator. And the telescope, it's a jib that can create some very nice movements, typically for entertainment shows. So this is what is media production robotics. So this is located more and more in the TV studios because it allows more creativity and it also supports more automation and more consistency. So why does EVS invest in media production robotics? Because it's part of the live production ecosystem, in fact. So it's completely in line with what we want to do. We want to make the live. of the production team easier. We want to integrate the different components of the overall studio and production environment so that it's easy to operate, it's easy to maintain and globally it can increase the quality of the production with an affordable cost. So it's part of the live production ecosystem. Second, we have developed at EVS a real, true AI expertise. And we see that more and more in this domain, AI is playing a role to really assist the operators to create better live storytelling. With robotics, it's all about return on emotion because you can capture shots that were previously out of reach. You can place cameras where a human cannot be located. So that means that we really will develop Better images, which is completely in line with the concept of return on emotion that EVS is developing. And from a financial perspective, this market is evaluated to 125 million US dollars. So EVS will de facto increase its total addressable market of this amount. so that's why we invest in media production robotics now how do we do it we do it thanks to the acquisition of telemetrics and we are very proud to to welcome the team members of telemetrics a company based in us a company created in 1973 with a very huge and significant technology background. They have very nice products that are adopted by premium customers, and they are focused on quality. They are focused on safety, because you have all these robots that are moving, and the robots are interacting on the same territory as humans, so we have to avoid collisions and so on. And they are really focused on that, so they have the same values as EVS. And in fact today, the company is headed by Michael Cuomo, who is the grandchild of the founder who created the company in 1973. So today there are a bit more than 30 employees working in Allendale, New Jersey. And the company is well known in the TV domain because they really revolutionized the television camera control. And they innovated a lot in robotics to have the smoothest movement that you can imagine in robotics. It's not that easy to make that. If you just put simple wheels, you will have very... stuttered movements so it's important to have very smooth movements and telemetrics has developed all the mechanical expertise and products to bring this value to the market so they serve clients as large network studios but not only they also serve technology conglomerates and different markets as legislative government education so they have a good Track record and proven track record for creating outstanding products and solutions. And globally, they focus on reliability and safety, as I mentioned before. So they generated in 2024 an annual revenue of 12 million US dollars with a positive EBITDA around 11%. And we will close the transaction on 1st of October, and that means that Telemetric will contribute to EVS results for the fourth quarter of this year. To be mentioned that this additional revenue and EBIT is not embedded in the guidance. So, the acquisition is done with an earn out mechanic and that can go for the maximum amount of 13 million USD including the earn out. Which kind of levers or strategic intent we want to activate? we consider that this marvelous technology is today not necessarily well spread in the world. So the majority of the sales is happening in the U.S., and typically we think that there is an opportunity to spread more of this technology and to deploy it more in Europe in a back. And the fact that EVS has a worldwide presence will help globally this technology to be developed deployed in other parts of the world, first in terms of sales and second as well in terms of support, because EVS is a wide support network. Second strategic intent is the fact that we want to shift the value towards software thanks to the integration of EVS AI capabilities. Of course the product is a mechanical product, it's a hardware, but more and more the value will be in the way that this hardware is driven and AI can really change the game here. Third, in fact, I started to speak about the live production ecosystem that we are developing. We think that when we combine this technology with other solutions that we have, live section, media section, media infrastructure, and flexible control room that will be launched at IBC, we think that when we combine all of this, we can really improve the overall ecosystem, the overall experience for the operator and the easiness of producing media in general. Last but not least, As you have noticed, this company is based in the U.S., and so that means that we could leverage the capacity of product assembly in the U.S. for other products of the other solution, live section, media section, media infrastructure, based on the evolutions of U.S. tariffs. So, if we have a look at the market. So, as I mentioned, the market is evaluated to 125 million USD, and Telematrix today represents 10% of market share of this media production robotics market. And this market is growing, in fact, and we plan to take more market share in the coming years. And you can see here some different kinds of customers that telemetrics today has that goes from broadcasters but also beyond broadcast with some brands or corporate studios or education, government, and so on. So now, if we map it on the EVS strategy, where does Telematrix add a contribution? In fact, we think that definitely Telematrix supports the live production ecosystem. I mentioned that several times, the word ecosystem. It's multi-tier as well, because we have different levels of robotics. We can equip small studios, but also premium studios. it certainly will help us to grow in broadcast center it certainly will help us to grow in terms of software because of the ai and the controller of all of these mechanical parts it will help us to be more relevant in entertainment where robotics plays an important role and for sure in use that's where we think that telemetrics as a media robotics production company can really help us to achieve our goal and to achieve our transformation.

Thank you Benoit for that overview. So as you can see we are quite happy with this acquisition. By the end of the year we'll have about 100 colleagues in North America. So adding those 30 of the team of Telematrix on top of the close to 70 that we have is further growing our presence in North America. And as you know we put a lot of focus on North America as we believe this is an important revenue growth engine today but also for the future. Talking about market updates, let me dive into that market update. And you know that we have an ambition to continuously grow over those next years and with a target in 2030 to be that number one solution provider in the live video industry. And this acquisition definitely helps us to go into that direction. Remember that this means that we want to have something like €350 million by that moment in time. And we also know we'll have to do some more acquisitions to add to our growing revenue so that we'll be able to achieve that. But we feel that we are on the right track to get there. So when we look to our different products, our main product lines, LiveSeption, MediaSeption, MediaInfra, what can we see at this moment in time? When we look at LiveSeption, those live production replays and highlight solutions that elevate the fan experience are some important elements to note. We have just released our Zoom capability on LiveSeption. And that has been used very recently also in some major US basketball tournaments, which we are very proud of. And we see more and more traction for that zoom capability in the North American market. That zoom capability allows operators to zoom in in a 4K image and have on the spot a very nice video that they can put on screen. with only part of that large view that they have. So, really a very useful tool that many customers are testing at this moment in time and some of them already are on air with major sport events. We launched at NEB our XT venue specifically for US stadiums and we've seen a good traction of that over those past months. We've definitely been able to increase revenues coming from that part of the market of the US stadiums. So that shows that we made the right decision there to focus with specific solutions on that market. XtraMotion 3.0 was also launched. and is getting a lot of traction. You remember the initial extra motion capability which was about improving the slow motion effects of existing cameras. We've added to that new capabilities like cinematic and deblurring effects which are available on the spot to show with replays or with highlights. So a lot of customers are taking advantage of that new generative AI supported or enabled technology. And last but not least, for live suction, we've been also further working to improve our VAR solution, Xebra, with lighter and more portable versions for also coaching and medical staff. So we've been working hard to further strengthen our live suction product family. On the Mediaception side, there are solutions which are used for production asset management and fast and easy content turnaround. Important to note is of course that we continuously work on Viamap to continuously implement it with new customers and further improve it. We're proud to say that it has also been selected for major summer events in 2026, which definitely shows that this technology is becoming a major technology in our market. We further work on several multi-million modernization contracts with customers in the different regions and we see that indeed we get more and more of such big projects with customers. That is indeed further helping to grow our order intake, of course. And last but not least for Mediaception, the introduction of MoveUp and MoveIO components have helped to further increase the Mediaception solution that we are providing to our customers. And that further allows us to extend the possible workflows towards post-production and media production of certain of our customers. Last but not least, media infrastructure. Those routing infrastructure solutions to control and process all media workflows And we see more and more that Neuron is successful with the view capability and OBVANCE. And we take a nice example with a US-based customer called Game Creek, which is an important customer of EVS. And now also extending the use of our media infrastructure solutions in their trucks. We see Cerebrum, our software solution for managing and controlling infrastructure of customers in their control rooms or in their OB vans. We see Cerebrum to really further gain traction all around the world and we see more and more deployments with customers in important premises. And last but not least, at IBC we'll be launching our flexible control room. If you remember, in 2022 we announced a co-development program with RTBF in Belgium. So we are, as you speak, starting to roll out that with RTBF. And we'll start a commercial rollout of that solution to other customers in September during IBC. Moving on, also proud to say that we have gained NH1 also some important projects. One of them we announced through a press release, that was the fact that we secured a contract to support major international football tournaments in 2026. in North America, but I'm also happy to say here that we also did get the contract for major international winter sports event in Italy beginning of next year. So that shows that our big event rental business for 2026 is for sure going into the right direction. And also shows of course that EVS keeps to be the top choice for such important sports and life events. Murion, NAB show, which took place in April in Vegas. We are quite happy with the feedback we received from our customers there. While it was also just after the announcement of the implementation of tariffs, we had to respond to a lot of questions and adapt our workflows, but I'll let Vera talk about that. But I think customers overall in North America are happy with the way that we take care of this. We see definitely that North American customers further increase the trust they have in our technologies, and we've seen several new logos, important logos, join our EVS family in this H1 period. And last but not least, as you know, also channel partners is an important focus of our Play Forward strategy. In the light of that, we also did organize a very successful channel partner event in North America, and we definitely also see that indirect sales that we are realizing in North America is really growing strongly. And we are happy to see that, of course. So that brings me to some important contracts that we announced in H1. So we announced a fine point broadcast important agreement that upgrades to our HCV server generation of course. We talked about it being Gain Creek that also started to use our neural media infrastructure solutions in their OP events. We were happy to be selected in Belgium by the RBFA for a VAR solution, so we're happy to say that from now on in Belgium all VAR that you will see with football, or I should say soccer, is being delivered with EVS technology. And last but not least, the agreement that we signed with the University of Liège for AI in sports was also for us an important milestone in this H1 2025. And that brings me to another important slide, and I'd like to comment on this one.

Yes, so you heard me in the beginning referring to some risks and uncertainties, and this slide captures actually the geopolitical and economical risks that we see when we actually pull up our forward-looking statements. Two of them we call out systematically, so the left one, which refers to macroeconomic volatility, such as salary inflation or continued price increases of the debtor components, It is there since quite a while, and we know how to adapt to it. We have a pricing strategy to ensure that we continue the profitability of our solutions, and it's not merely a new risk, nor is the right one that is also a risk that is there since quite some time, which is linked to the inventory of electronic components. to make sure that we continuously can deliver our products and solutions within our reliable delivery times. Those risks we systematically manage since a couple of quarters and years in a row now, and we have a good control over them. There are two new risks rising this year. First one is, well, the second two left, which is related to import tariffs. Obviously, import tariffs are reshaping the economical landscape, and EVS definitely had to find a way and adapt its business model to ensure that there is minimal impact of these tariffs on our international trade, and more importantly, our trade in the United States of America. In that respect, we did decide to become official importer of our appliances and goods in the U.S., which obviously changes our business model and which is also one of the reasons why we had some temporary delays in revenue in first half. More on that to follow later. next to the import times we definitely see a weakening dollar which is also a potential threat for evs we do model actually the impact of the dollar versus euro in future evolutions we also hedge our dollar positions to make sure that the impact on our net profit is as minimal as possible And for sure, for both the tariffs and the dollar impact, we see how we have to depth pricing to limit actually the impact on our P&Ls. Again, more to follow on that later. Thank you, Vera.

That brings me to ESG, to conclude this part of this chapter. We are quite proud to see that the efforts that we put in ESG are also being recognized by external parties, and that is being demonstrated by the silver medal that we received from EcoVadis. and by an improved rating that we received from Sustainalytics. So that is definitely good to see that our efforts that we put across the board in the company are also being recognized by external companies like Ecovallis and Sustainalytics. We still have important challenges in front of us and quite some important topics to focus on, but we feel that we are on the right path to effectively further improve our ESG approach throughout the company. That brings me to the financial update, the next important chapter in this presentation. And Veerle, I'll ask you to walk us through this financial update.

Yep. So the first slide of the financial update is the top line performance. And so we start with the order intake. The order intake closed actually at 104 million, which is a 19.6% growth, which is a very important growth. It does include 14.2 million of big event rental. Excluding that big event rental, the growth is still of 13.4%. So definitely our order intake has been performing very well in first half and is definitely paving the way for our future as well. Next to order intake, we have the revenue, which was less positive in the first half. We realized a revenue of €91.8 million, which is a 6.4% decline compared to last year. If we exclude the big event rental, the decline is by 1.9%. this decline was definitely not what we looked at and what we targeted for we actually targeted for 100 million revenue impact or revenue achievement for first half but unfortunately that revenue result was impacted by some new business models that temporarily delayed our revenue recognition We talk about a temporary delay linked to two specific events. First, as I mentioned before, we changed actually our business model for the United States to cope with the tariffs, which means that we delay the moment that we take our revenue into account. Normally, we take our revenue into account when the goods leave our warehouse in Liège, But this new model implies that we take revenue only into account when the goods leave the New Jersey office. This is obviously delaying some of our revenue deliveries. So, for instance, we need to make sure that the goods transit to the U.S., that they actually pass customs. And we also need to train our local team to actually have an efficient model in place to contact customers for picking up the goods now locally in the New Jersey office. So also customers had to adapt to this new process. And this new process, we implemented it in June, early June 2025. So it was a pretty new process for the end of quarter or end of first half results. As a consequence, we had some goods that were either in transit at customs or still waiting in our New Jersey office and could not be delivered to our end customer yet at the 13th of June. As mentioned, on the 8th of July, all the goods were actually received and shipped towards our customers, and we achieved the envisioned €100 million mark. We also note next to this change in business model for the tariffs, we also show a growing impact of managed projects. Serge referred to it earlier on in this presentation. For managed projects, we recognize our revenue according to milestones, and it's not because we delivered all the goods. that necessarily we can recognize 100% of the revenue. It also depends if all the installations were done, if the training was done, or if the final acceptance by the customer was done. And in some cases, this also delayed revenue from 30th of June to just early July. These are different business drivers that we need to take into account when we monitor or model our revenue progresses in the remainder of the year. But as mentioned, we consider them temporary, and we don't consider them systemic for our future performance. When we then go to the total order book, the story is, again, very positive. The total order book, we succeeded or concluded total order book of 174.8 million euros, which is growing by 23.4%. It is a very strong growth, and it is actually growing fast. a lot both for the current year as for the next year. The split is $77.3 million for 2025, and the remainder, $97.5 million, is for 26 and beyond. Our secured revenue for 2025 is sitting end of June at $169.1 million, which is a solid base for the remainder of the year. If we look a little bit more in detail at the revenue performance, we do see some interesting proof points of our play forward strategy. We continue to see an increase of our live audience business. So you see first-house results from 2022 till 2025. And you see the systemic increase at the left-hand side of the graph of the slide of their live audience business growing from 42% in 2022 with a systemic growth now till 54% in 2025. Definitely a proof point of our strategy. And also from a geographical point of view, you see that the NALA region is continuously growing despite economical uncertainties in that region. North America and Latin America now represent 40% of our overall revenue, and we definitely also from an order intake point of view see that our doubling down in North America plan is getting its roots, and we see the success of this investment. If we go to the next slide, it is a snapshot of our profitability. First of all, we start with our gross margin, and also from a gross margin point of view, we can conclude that the journey is a very positive one. Again, you see the margin performance for first half from 2022 to 2025, and you see the steep increase. We actually realized a gross margin of 72.6% in first half 25, which is an increase of 0.7 points compared to prior year. You also have to notice that that performance includes an impact of tariffs from second quarter that is worth 0.6 million. So despite that tariff impact, we continue to see a strong performance in terms of gross margin. This resilience is mainly a consequence of our price increase strategy, but also from our continuous favorable mix that is increasing in terms of software and services. Next to gross margin, we have the EBIT performance or the operating expenses. Operating expenses are at 51.8 million. It's a growth of 11%. The growth is primarily driven by the additional resources that we onboarded. of which 48 resources are coming from EVS portal, and the remainder are investment in additional team members, primarily linked to North America Double Down plan. Obviously, if we increase our team member base, we have a couple of associated costs that are increasing, like subscriptions and like travel expenses. And next to that, we see some increased expenses linked to external services for compliance-related matters, for instance, for audit services. or for advice when it comes to taxation or to fiscal regulations, and obviously also tariffs, which is a very complex matter. That operating expense is evolving, by the way, in line with our expectations. So this is all according to our plan and our investments that we planned for 2025. If we look at the EBIT performance then, the EBIT performance, as mentioned earlier on, is struggling as a consequence of the temporary delay in revenue. So the EBIT performance ends at $14.8 million, which is a 38% decline. And we have modeled actually the EBIT impact would our revenue have been at the envisaged 100 million euro, which we reached, by the way, on July 8th. And that impact would have been quite important. We would have seen an EBIT performance at 21.8% margin or a 21.8 million in revenue, which is definitely in line with our expectations and in line with our full year guidance. The last slide is around our financial health and our balance sheet, which definitely structurally remains very strong. We have some temporary impacts again following the delayed revenue, but all in all, the financial health remains very strong. EPS, earnings per share, is obviously lower given that revenue impact and obviously also the higher operating expenses and a lower financial result given the impact of a weakening dollar and a one-off we had to take linked to the Big Tech 2022 contract. The earnings per share ends at 0.94 euro per share, which is a decline of 39%, which is in line with our net profit performance. But we expect that to restore as soon as our revenue restores as well. Our net cash position is actually increasing slightly to 52.8 million. It's a 1.3 million increase. We see that the cash flow from operations from the past 12 months is partially offset by, first of all, the interim and the final dividend paid for 2024, the both 1.1 euro per share. and the share buyback program that we did end of 2024 and that we concluded in the first quarter of 2025. And finally, from a trade receivable point of view, we reduced our trade receivables from 74 to 71 million. It's a 3.1 million euro gain. And our trade receivables remain very healthy. We have 71% of our receivables that are not yet due, and we only have 17%. that are due by more than 90 days, and it's related to specific isolated cases that we follow up specifically with the customers in person. A final slide on our financial performance is linked to the intangible assets, where we do have some positive news. The project that we launched in 2022, the ViaMap project that concluded its development phase in Q4 2023, and at which point in time we also started depreciation, we definitely see a very strong traction over there. So we see first customers that had actually adopted ViaMap over summer 2024. But as Serge also mentioned, we really now also see VMAP as an integral part of some very important wins. And amongst others, the major 2026 summer event workflows will be focusing also on VMAP. And for us, this is a clear proof point that that intangible asset development has a long-term benefit and is definitely a cornerstone for future growth. We also still have a significant pipeline with some strategic key wins, opportunities that we want to follow up on. Earlier in 2024, we also launched a new development. That development is ongoing, so we spent a similar amount of intangible asset development in first half 2025 compared to first half, so full year 2024. So it was $1 million in full year 2024 and $0.9 million development in first half 2025. We foresee that the total spend is at 6.3 million and the launch date is targeted in 2027.

Thank you, Veerle. That brings us to the next topic, which is the outlook. And I'll come back to you. I think it's important to say that our outlook is based on our business without telemetrics and that you'll start integrating us from the 1st of October. Again, the floor is yours, Veerle.

Yes, correct. So security revenue at the 32 of June is at $169.1 million. It's growing 7.2% once we neutralize it for big event rental. Thanks to that secured revenue, also the short-term pipeline that we still see that is expected to be delivered still in 2025, and based on our protection capacity that we still have for the remainder of the year, we are happy to confirm that we can maintain our revenue guidance at 195 to 210 million. And this despite actually some macroeconomical risks. So, yes, true, we have a risk that is linked to US dollar to euro conversion. That risk is accessed at 2.3 to 3 million. And we have a risk linked to project milestones potentially shifting into 2026. But both risks are actually offset by a strong second half pipeline. And as mentioned, also a capacity to still convert that pipeline into order intake and into revenue within the year. Our long-term order book, which is also very positive, is growing to 97.4 million euros, which is actually an increase of 31.4 million euros. And also there, we see very strong foundations for 2026 and beyond. So also there, we are quite positive that we can maintain our long-term projections as well. With the reconfirmation of the revenue guideline, we also actually reconfirm our EBIT guideline. The EBIT guideline remains at $35 to $43 million, and it's a combination, obviously, of projection of our revenue as well as our cost base. Both these guidances are kept intentionally quite wide in terms of range. So the revenue range is worth $15 million. The EBIT range is worth $8 million. And obviously, because some of the uncertainty in the market still, we intentionally keep that range wide at this point in time with the goal to narrow it down as soon as we progress throughout third quarter.

Thank you, Veerle. That already brings us to the conclusions of today. So when we look to the key learnings of the past period, we see that they are consistent, in fact, with those last years, but that we even need a higher adaptability to indeed be able to face the situations that change around the world, of course. But when we look to the six main key learnings, we are continuously talking about the fact that the industry is keeping on consolidating, of course, And you've seen today that we keep on also playing an important consolidated role with the acquisition of telemetrics. We keep on seeing that there is more and more live content being produced and transmitted on different media, and that the value is further increasing. When we see the sport rides that are being paid around the world, we see, especially in North America, but also in Asia, that those rides continuously keep increasing. We see that infrastructure, our media infrastructure, continues to be a cornerstone of big changes, and we take benefit of that with our media infrastructure solutions. Business models are still shifting. We see still an evolution from CAPEX to OPEX, although it's slow, but we see definitely some customers further increasing their interest of having OPEX business models. We continuously see that our market share in our different markets is increasing and we are very happy with the progress of course. And last but not least we see that cloud is still an important topic of discussion but it's just an enabler as many others are and we also feel that we are quite ready in approaching that topic. But all of that, as I said before, adaptability is becoming more and more critical to make sure that the things that happen in those worlds, like terrorists in the US, that we can take care of them in a good way, so that they don't impact too much our customers. Next focus that we have for H2 are the following topics, of course. It's continuously delivered those big modernization projects that we have run with different customers around the world. We continue to focus on North and Latin America, on new lab customers, so those live audience business customers and channel partners. We're happy to see that both audio intake and revenue is growing from that side. We continuously, as Pierre has said, we continuously fine-tune our operating model to cope with those tariff changes and the rest. We are, as we speak, of course, closing and starting the integration of Telematrix Inc., of which the deal is indeed closed on October 1st. We will continuously also leverage our new solutions to continue to further increase that order book, which is at record levels. And we will continue to expand our EVS solutions offering both organically and through acquisitions and strategic partnerships. And last but not least, we will also further focus on our cost control in this growth period that we are going through. So, conclusions. Remember the three things I said in the beginning. It's about strong order intake and strategic wins, which confirm our full year guidance, despite that H1 revenue delays. And again, I stress the fact that telemetrics is not taken into account in those guidance numbers. Happy to say that on July 8th we achieved that 100 million and that we indeed did that acquisition of telemetrics that we announced yesterday, of course. So conclusions, as you can read here, we are quite happy to see that our EES Play Forward strategy is generating the expected long-term sustainable and profitable growth ambitions. That acquisition of telemetrics is creating a new category of solutions, which further increases our total addressable market. Remember the 125 million we talked about, that Benoit was talking about in his presentation here. We are limiting further investments for growing cost structure in second half of 2025, and that definitely means that we are further focusing on our cost control. The revenue guidance is kept at 195 to 210 million euro, despite the economical uncertainties. And the EBIT guidance, as we already said, is also kept at 35 to 43 million. And last but not least, our targeted dividend is in line with our capital allocation framework, which should be 1.2 euro, depending, of course, on the agreements that our approvals will get during our ordinary general meeting of early next year. So that is the end of the presentation. As you can see, we feel that we are progressing in the right way, and that the strategy is delivering on our growth intentions, and that H1, unfortunately, it took us a few more days to achieve that 100 million euro revenue objective, but despite that, we feel that the pointers are pointing in the right direction for supporting our future growth. that is answering your questions.

We have first questions from David Bergman.

Yes, good morning everyone. Thanks for taking my question. The first one on the secured sales 2025 to try to exclude the impact of the custom delay and also the big event wins. What has been really, in your view, slowing down the sales traction for 2025? So is this really just the phasing of this portfolio of projects? I understand it has really increased massively. Isn't it also that your salespeople have been focusing more on the bigger project, on the bigger tender, let's say, and so are getting wins, but beyond 2025? If you compare to your budget, basically, it seems you're not changing the guidance, but it is becoming a little bit more challenging, let's say. So what is missing, let's say, compared to your budget in terms of order wins, specifically for 2025? So are you missing out a bit on the shorter-term contract, let's say? That's my first question. Second one, on gross margin, yes. Isn't it fair to say that the gross margin should be up in H2 versus H1? If I look at your sales guidance, definitively H2 sales should be above the level of H1 and even above the level of H2 last year. And both times you achieved 72.6% gross margin, I mean, both in H1 2025 and in H2 2024. So I'm thinking here you've got quite some comfort and also you did price increase in the U.S. to offset the tariff impact, etc., And third question, on the OPEX side, I know there is some flexibility here, but there is only so much flexibility because you hired so many more staff. So you did already plus 10% OPEX growth in H1. What is your degree, let's say, of flexibility for H2 OPEX growth, let's say? So I'm referring to the, I think, the 52 million, 51.8 million euros of OPEX you achieved in H1. So what is a bit of a rough indication of the growth of OPEX for H2? Thank you.

David, thank you for those questions. So I'll take the first one, suggest that Veerle takes the second one and part of the third one where I also will give some comments. But to start on the first one about revenue H1 and our focus of our sales team, we are particularly happy to see of course that the size of our projects is increasing, both in size, in amount size, but also in absolute number of those projects. And it's clear that the sales process is taking somewhat longer, because those are more complex projects. So in that respect, we see an evolution. We don't feel it had a negative impact on H1, or just a limited one, as we did achieve by 8th of July that 100 million euro mark. It's clear that we will continue further increasing that type of projects and that is well reflected in the fact that our order intake for the longer term is also increasing. So we feel that is absolutely the right thing to do. And then for H2, we don't feel that this should have a negative impact for H2. And that's why we are also confident that we should be able to achieve a revenue guidance that we announced before. And as you rightly pointed out, that would mean that we would end at a similar level of last year, or slightly above. while we are in an uneven year, because remember last year was an uneven year, where we had also big event rental revenues, which we don't have this year. So, if you filter out that big event rental activity, we expect that we will demonstrate effectively growth in our business throughout the whole year 2025, and again, without taking into account the additional numbers that will come from telemetrics. So I think, I hope that answers the first question. Veerle, you take that second question?

I would like to add, still, that secured sales, excluding big events, is increasing 7.2%. So we nearly offset the entire big events already. So I believe that secured sales end of first half 2024 was 172. So it's 2 million difference. And as mentioned, we also still see that we have production capacity. For the fourth quarter, so yes, we're quite confident that this is achievable. Sorry, I so wanted to add that. Gross margin, yes, I think in our current projections, we're a little bit prudent still in terms of impact on tariffs on the gross margin. So yes, we did implement price increases to offset the tariff's impact. We did a price increase, a first one in July, a second one in August. And so we're still prudent there as we need to see that we can offset indeed the chart's impact immediately by that price increase or if there's this some delay compared to the moments we did those price increases. So there's potentially some benefit there, but it's a prudent call at this point in time for gross margin. On the OPEC side, yes, we are also working on some cost actions. So we believe that, yes, the cost will grow in second half still because of the flow-through effect of resources that have been added in first half that will count in full in second half. But we did put a hold on additional resources at this point in time. It's just a temporary delay up till the end of the year. And we are also being vigilant about travel. It's not limited to only customer travel. We call it limited to business-critical travel. So everything that ensures continuity of the organization is important. So, what is the lever we have? We can expect around a two to a five million increase of our costs, and a two million increase is if we're fully efficient in executing all our spend guidelines, and a five million is actually if we do nothing. So, it's anything between those two numbers.

Thank you very much. And two very quick follow-up. On your last comment there, the 2 to 5, that's compared to H2 last year.

H1. To H1.

To H1. To H1. Okay, so 2 to 5. And then on the gross margin comment, they use at Q1, you still have the guidance for the gross margin to slightly decrease year on year for 2025. you remove that wording, so it's gone. So we're a bit in the dark. So you say you're prudent, but we don't know compared to what. So what do you mean exactly when you say you're prudent because of the tariff impact and the timing, I understand, of your price increase versus the tariff impact, et cetera? So what does it practically mean?

We're targeting a similar profit margin as 2024.

Okay. Very clear. Okay. Thanks. Thanks very much.

Thank you, David. Only for two G6? Guy, the floor is yours. Guy, you are muted.

Yeah, thank you. Thanks for taking my questions. I have three questions. First is on the acquisition of telemetrics. You indicated you created a new category of solutions and in all of your solutions you want to be the number one. So what is your aim in this segment? Is that to grow faster than the markets by using the EVS brands? Is it a buy and build strategy? Or, yeah, because, and how do you see this market evolving? Because, yeah, on the slide you were indicating a CAGR of 4.5%, which is not really at the same pace of all your other segments. So how do you see that evolving? And on the client base, are there important clients missing that you could add through the EVS brand? That's the first question. Second question is a follow-up on David's one. So you indicated price increases. Can you give us an indication what price increases you did in the other regions and what was the markup for the US on top of the traditional price increases to counter the tariffs? And then a little bit, and I'm hoping I'm not spoiling the IBC Premier that you will give on the RTBF flexible control room. But can you give some indication of the rollout potential for this product? Thank you.

Okay, thank you for those questions. I suggest to take the first question. Vihila, you will take the second one. And I will let Benoit go for the third one with FCL. So telemetrics, a new category. What is our strategy there? So it's definitely, as we did with other acquisitions, grow market share compared to competitors. We've seen that we've been able to do that with other acquisitions as well. Our reputation, our brand recognition helps us indeed to increase market share on a worldwide basis. We have, as you know, more than 20 offices around the world. and a local presence for many customers that will definitely help us to also put those products in front of customers in other regions of the world than the US, with a local presence, and I think that was one of the weak points of telemetrics, very US-centric of course, with no support elsewhere in the world, so it will definitely help to have support on a worldwide perimeter, thanks to EVS. So next to that growing market share, you asked us, you were referring to buy and build, that might be a possibility. When we look to acquisitions, we look to acquiring a new town, like we do here, but also sometimes we look to acquire some companies that further strengthen us in a certain business category or product category, so buy and build remains absolutely also a possibility. When you look at the client base, what is interesting to see is that they also have some corporate customers in North America. If I take a nice example, the United Nations in that list, those are customers where typically for the moment we are not in yet. So we see definitely on that side in North America potential for the future also to have better inroads to those type of customers than what we had before. So that is an opportunity that we see definitely. And then, Veerle, I'm going to talk about price increases and Delta for the U.S.

Yeah, so I think we did a general price increase across the world in May of this year. It's difficult to put a percentage to it because it was really targeted by product, but I think overall it must have been around 2% to 3%, not that big, but it's really targeted by product, so it's not a general one. With regards to tariffs, we specifically only increased the price in the United States. So it's a country add-on, as we would say it, for that specific region. So it's not generic on the U.S. dollar price list, but it's really specific to the United States. And it's a 4% increase that we did in July and a 2% increase that we did in August. Again, it depends product by product, depending on the hardware software split of the products. So becoming official importer, what does it allow us to do? It allows us to really split both from an operational point of view, but also from an administrative point of view, the intercompany flows for hardware and software, which then assures a tariff basis that is much lower than the average sales price, which embedded actually software by default into the products. So this is how we cope with this tariff impact, and this is why the price increase Compared to the tariff, impact is only marginal. We can note that also in July, the 4% that we did implement in July also includes some dollar protection that we did.

Okay. Thank you, Hila. And then talking about FCR, Benoit, I'll ask you also to do an introduction so that everybody understands what we're talking about and what are the main advantages of the solution for customers so that you can also answer the potential of that market.

flexible control room and in fact it's very complementary to the Cerebram control system. So the Cerebram control system is about control and orchestration and here we add automation and operation today. So the intention is to become, if I make a comparison, the ERP of production. And I think that speaks to you about what we want to achieve here with this FCR. And since we will be the ERP of the production, it will solidify the position of all our product portfolio, but also it will enable us to win a large modernization, transformation project and help our customers to transform the way they operate. All our customers, they have to produce more with less, and because of an ERP, they can really monitor the resources. When I mean the resources, it's really the systems that they are using. They can better share and reuse the systems between multiple productions. They can also have less expert operators and make use of more let's say, operators that can take more roles within the production so that can optimize the OPEX. And so that means that we will help our customers to achieve these goals of producing more with less.

And indeed, we will show that at IBC, so we'll be happy to show that at IBC to all of you here around the table. Indeed, you can make it for Amsterdam and the event which is on Friday morning.

And we get already some traction before IBC for this concept. Customers are interested. It fulfills the needs that are in the market, for sure.

But I think at the same time, this would be a good moment. So that event is still open for registration. So if you're happy to join the IDC on Friday morning in Amsterdam, please register. Registrations are still open, I think, for a couple of days. But then we will need to close them down. So if you want to see it in action, please do register for that event.

So, Friday, September 12th, in Amsterdam. Looking forward to see all of you. Yes, correct. So, Guy, I hope that answers your question. Yes, I think so.

So, we have a few questions in the chat. First one is from Luc Rust. Is there an explanation why the weak total report is mainly explained by the weak performance in Europe and Middle East, while America and Asia is growing?

Yeah, I think definitely what we see is that America is growing strong. So despite what we could expect implementing tariffs and uncertainty about the dollar, we definitely see that America continues to be a growth engine for us. We see it in revenue. We see it in order intake first half. And this is also the reason we really believe in the opportunity in the U.S., and this is also the reason why we did our Double Down North America plan. But it's definitely not slowing down in the U.S., Asia-Pacific, our order intake was a little bit lower in first half because of economic prices actually. So the Euro was pretty strong and we sell in Euro in Asia-Pacific. So order intake was a little bit lower. True, in revenue they were still strong. So it's always a little bit a catch-up effect. I think in EMEA, order intake in first half was then a little bit lower, but obviously also in EMEA we see good traction as well, also with potentially some bigger projects, again, in the Middle East, et cetera. So, yeah, we definitely see it's perhaps first half was not their best half, but we're definitely not concerned about the longer term. I'm not sure, Serge, if you want to say anything.

I think that's indeed also in line with the overall economical situation in the world and we always see that the US is faster and investing more and that Europe rapidly slows down when there is some more uncertainty and so I think this is, but as you say Vera, not really concerning. We see for the rest of the year in the pipeline opportunities that the weakness especially in EMEA should be compensated. Right?

We have a few questions from Alexander who had to leave the call. I suggest you read the questions first.

So I think regarding the delays of first half, they were not necessarily linked to one specific contract. Basically, we had a total of four deliveries that were either in transit, either at customs, either not picked up from our New Jersey office. So it's not specifically linked to a specific segment, and it's not linked to one large contract. It's just more generic.

um the second question is on telemetrics acquisition i'm not sure urban wife you want to take that one i think that we already partially answered that so we want to sell more in fact for sure and in terms of the ebit margin we want to increase the ebit margin first because we want to sell more seconds we think that we can optimize the gross margin along the way by putting more value into software, especially thanks to AI. And if we go into these new kinds of solutions, because we plan to change the game, in fact, and to also play the ecosystem gameplay, which will help us to penetrate better in this market. Okay.

The third question, I'm not sure I immediately get that one, is North America a margin accretive region?

Well, I will reply by my interpretation of the question. While business is growing, we also see strong... So margins are high. It's not that we are growing by lowering prices in the US. That's absolutely not the case. I would even say on the contrary. Customers are willing to pay even higher prices for quality, reliability that we offer in North America. assume that growth means lower margins. In our case we would say it's even the contrary. North America is a strong market where customers absolutely appreciate the quality, reliability of our technology and of the service that we also provide.

And an example, for instance, is the deal that we announced in fourth quarter, the large U.S. bank in media infrastructure. It considerably contributes towards the margin improvement that we see in media infrastructure. So, yeah, this is a proof point that we don't really see margin pressure from our U.S.-based customers, even on the contrary. Okay. And I think there's a question about the new business model being applied in the U.S. So I presume that this question is related to the fact of importing officially in the U.S. So, yes, obviously that is purely as a reaction to the U.S. tariffs. And it is only applied in the U.S. and for the U.S. as well. So, for instance, Latin America, they still continue in direct shipment from EVS headquarters. But for all U.S.-based customers, yes, there is a stopover in New Jersey, and it is limited to that team or to that customer base, I would say. Does the model introduce additional risks? So, yes, obviously, if you've seen the result from first half, it changes a little bit responsibilities of teams. So all of a sudden, the U.S. operations team became responsible as well to receive shipments and to arrange shipments to customers. And we've seen that that team was underserved and potentially was not ready for such a change in business model. But those are things that we have already taken into account. So we have decided to strengthen that team locally as to make sure that in the future we don't have these revenue delays, for sure. But it does change a little bit the way we work, and it does make sure that responsibilities are more spread throughout the organization. But it's just a question of internal adaptation, and then we move forward. So, yeah, it's not subject to any other geographies.

I will now give the floor to Michael Hoop.

Michael, you are muted.

Okay, otherwise he raises questions in the chat.

Good morning. Can you hear me? Yes. Good morning. Good. Happy I finally found the unmute button. Well, indeed, I also posted my questions on the chat. So the first one is about the acquisition. Can you share your ambitions in terms of sales and operating margins for telemetrics in about five years from now? And then I notice there's an earn out, and generally earn outs are quite good because it, you know, lowers a bit of the risk. But the earn out period is very short, only 2025 results. Why is it so short? And then when is the intended payment of the earn out? So that's the first set of questions.

Okay, let's start with why is the earn-out period so short? That is because you don't see how long we've been talking with them. So this is an agreement and negotiations that we started quite some time ago, and in fact you see it as being short, but we've been talking with them for a few years in the meantime, and our agreement is now coming to a conclusion and the results are in line with what you've been seeing over those last years and with some objectives that we gave them. And that is why you feel it's so short, but in our perspective, in our relationship we have with them, this dates from much longer. So that's, I think, answering why it's so short. Another advantage of having it short is that indeed we'll be fully owner of the company and that we want to make sure that we can take the right decisions that will help us grow the company on a very short term. And because sometimes, you know, it's our not helping to do the full integration on the short term. So I think that's definitely where we see also the advantage of having a short earn-out period in this case. What are the ambitions? Well, you know our ambition is to further grow throughout the coming years and I think our ambitions are in line with telemetrics as well. Typically we set, when you look back to our track records and our ambitions, that meant more or less an average growth year for year of 12%. So we say if you take the 12% over those next years, you'll see where our ambitions are landing also for telemetrics. So that is giving an indication about the way we want to be in a few years time. When is the intended payment? And I will be afraid to fail.

It will be first quarter 2026. So as soon as we close the year and we validate the results, payout will happen.

Okay, so the first payment in Q4 and then the earn out Q1. And on the operating margin, it is below the EBS operating margin. Is that something that you can only improve based on sales growth? Or do you also see opportunities to optimize the cost without even sales having to kick in?

We expect to increase the value. In fact, by shifting the value to software, we think that we can increase the gross margin. Yes. And by selling more, we could combine, let's say, the gross margin increase and the increased sales to increase the EBIT margin.

Yeah. And there's no immediate operational cost efficiency that we plan for if it would not be in the favor of EVS, so Telemetrics has a very nice production site, very well-filled production team. So should we, now that the tariff situation has stabilized, should we anyhow want to produce now in the U.S., which is still something that we're investigating, and we didn't want to implement this As long as the TAG discussion was very unstable and uncertain. But now that it is stable, we are reanalyzing potential production in the U.S. And if so, we would definitely see if we can be efficient by combining EVS production with telemetric production facilities and staff just because they are used to it and they have very well suitable facilities as well and teams as well.

So they already bring sort of a cost synergy from the start, if necessary. Good. Exactly. That's very helpful. Then my second set of questions is about milestones, and especially because in the guidance you flag some uncertainty about milestones, so then I start wondering what is the risk that you see? Is that, for instance, that a milestone is only reached in the first week of January instead of the end of December, or are there other things in play? Yeah. And then more generally? How many milestones does a project typically have?

So I think managed projects are split in total in around eight milestones, I think. So some are even a signature of contract. There's a first invoice and a first payment. And we are very much in control up to the milestone of delivery and shipment of our goods, which is significant. relates to about 60% of our revenue. So that is something that we currently have under our control. The final 40% often depends on installation, often depends on training and final acceptance, where we are a little bit more subject to customer planning as well. And so often it's linked to the availability of a new facility being there, so it's a new office or a new truck or anything like that. Or the personnel of our customers being available for training and things like that. So there's a little bit more of uncertainty, we would say, in these final steps of revenue recognition. And given the growth in our managed projects, so this was not something that we were modeling in a very huge detail in our secured sales process. We are obviously changing this, so we're now modeling this very specifically, and we are very much proactively now looking where we have potential risks or potential opportunities as well, and what we can do to manage those risks and opportunities. Yeah, so that is the situation.

Some of these projects are also integration projects by system integrators. Before you have the final acceptance, you need not only the previous part to be delivered, but all the different parts of the solution to be delivered and to be glued together and working. And so sometimes the delay of one partner in the ecosystem that is not depending on us and it is depending on the on the system reintegrator the relationship between the customer and and the other vendor can can shift a project for a few months okay that's that's very clear based on um not today's presentation and some of the presentations of the past i have a couple of these very large projects on my radar scope including the us bank

You have the studio in Belgium. You have the large broadcaster in the Middle East. So based on sort of the roadmap for each project, there is something that may or may not slip into early next year, I assume. That is sort of the risk that you flagged.

Exactly, exactly.

When I combine these large projects for which I don't know the exact sales scope, is that a difficult base of comparison for next year? because maybe next year you have only two of these large projects or one instead of three.

In fact, the number of projects like that is only increasing.

Yeah, exactly.

Okay.

Yeah, and I would say that by doing that, the risk is also being better distributed. Exactly. We're not talking about five, but we're talking about... More than 10.

Yeah, absolutely. And the ones that you refer on are not necessarily in the scope. So that means... Yeah. Okay.

So 10 projects, 8 milestones per project, 80 milestones, all of it.

It's a lot more than 10.

It's a lot more than 10. So you have a huge amount of milestones that can swing before or after the quarter. And is there something then really planned for year-end that can really make the difference if it moves to January?

It's just an internal follow-up. So we realize that those projects, we need internal synchronization between sales, project management, finance, et cetera, et cetera, to make sure that first we grasp potential risks and we take mitigating actions up front whenever we see a potential risk. So it's just more internal adaptation to the way we forecast rather than anything else.

Good. Okay. That's very helpful and clear. That's it from my side. Thank you. Thank you, Michael.

I will now give the floor to David Bergman who has another question.

Yes, thanks. I have one additional follow-up on telemetrics acquisition. So it's very useful to know that you've been discussing with them for a few years. Two quick follow-up on that. So should we understand that typically on our node, normally you have quite some uncertainty on whether the company will achieve or not its targets. Here, because you've been following them now for a few years, Should we understand that there is actually a very high degree of certainty that you will need to pay, you know, the $13 million, let's say the $12 million more, that on the ornate side is a quasi-certain payment, so to speak, or a high level is certain? And should we understand that basically what you kind of negotiated or agreed is a level of profitability which is very close to what you've been disclosing, so i.e. the 11% EBITDA margin?

Okay, so thank you for the question, David. Those next months will be critical, of course, to see where we will be. We have no certainty, but we hope we'll get to the maximum of that amount, because if it is, that means that they're doing very well, that they've done a good mix of revenue and profitability. So, we hope it will be the maximum. It's absolutely not a guarantee. We can't say today if it will be 50% or 70% or 100% of that or not. We just hope that, indeed,

things to turn out for the best and that they realize their maximum earn out because everybody would be happy by seeing that and it's not 13 million earn out so it's six and a half up front and then similar amount in earn out so now very clear but i mean the total the total i'm trying actually to understand in terms of and sorry it's housekeeping for the for the model but but basically whether we need to to to plug in let's say the 12 million 12 million on an 11% EBITDA margin, or actually if they, let's say in the best scenario, which Serge is reflecting upon, saying, okay, we will all be very satisfied if we need to pay them the 12 million, then does it imply an 11% EBITDA margin, or, you know, yeah, that's basically where I'm trying to get at.

Well, it's a mix of achieving a good profitability and revenue levels. So, at the end, they might have a bit less revenue with a good profitability margin, there now it will be lower. And the maximum amount, we hope they will do it, but for the moment we would not expect that that will be achieved. But I hope we have a pleasant surprise.

We will help you achieve it, actually, in Q4. Okay, clear. Thanks. There was a question from Valérie Lefebvre as well.

Yes. Yeah, so mentioning 40% of your revenue made in NALA, what part of your EBIT is made in this region, we don't necessarily calculate an EBIT performance per region. But as we mentioned before, we don't necessarily have a higher price pressure in North America than the rest of the world. So there's no reason why they would have a negative impact on the overall EBIT, not at all. and even, as we mentioned, on the contrary. So, yeah, I hope that answers the question.

I think it's important to look at our business model. Most of our costs at DVS are remuneration costs, and most of those remuneration costs are in Western Europe, because, of course, Belgium is a very big hub, but we have also development hubs in the Netherlands, in the UK, in France and Portugal of course. So, as an international worldwide company, most of our R&D costs are in Western Europe and nowhere else. Well, with telemetrics that will change a bit. But when you look to our business model, most of the remuneration costs with engineering, with the older supporting activities are indeed in Western Europe. And if you look to the US, the only activities we have in the US is sales and customer service, and some other smaller activities, but that's why we cannot really compare an EBIT of a region with the EBIT of another region. We can compare gross contribution to EBIT, and then you have to look down to the revenue, so we could say that 40% of revenue represents 40% of our profitability, our contribution, more or less. It will vary a little bit, but we think that North America is definitely generating a good profitability.

Yeah, we have a remark from Michael.

I think that's the joke to end the conference call.

Good. All right? Yes. No further questions? Then I suggest that we close the call here. Thank you for attending. Thank you for all those interesting questions. I hope we've been able indeed to pass on that key message of today. And I will just say it again. Those three things that I would like to make sure you take from today is that We see a strong order intake and strategic wins that confirm our full year guidance despite that H1 revenue delay. And again, in that guidance, we did not include numbers of telemetrics. Second topic was on July 8, we keep that 100 million revenue bar. with 21.8 million EBIT, which shows that we're close to 22% EBIT over revenue. And last but not least, indeed, the acquisition of Telematrix, which will help us in the future of further achieving or coming closer to a goal to be that number one life solution provider in our industry. That helps us here also to increase our total addressable market. So all in all, we are happy with the progress we're making, and we see that the indicators, the long-term indicators, absolutely point in the right direction. And we'll make sure that H2 is living up to expectations, of course. So thank you for joining today, and I look forward to see you in Amsterdam on September 12th. Thank you so much, and I hope to see you soon indeed. Have a nice day.