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Forward Looking Information This presentation contains forward-looking statements that are based on the knowledge of the environment in which the Company currently operates, but because of factors beyond its control, actual results may differ materially from the expectations expressed in the forward-looking statements. Important factors that may cause actual results to differ from anticipated results include, but are not limited to, financial risk, acquisition risk, changes in technology, as well as other risks. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. As a result, investors should not place undue reliance on these forward-looking statements.
Orad – (XETRA: OHT.DE) • Leading provider of real time 3D broadcast graphics and video server solutions for the broadcasting industry • Diversified products - Graphics, Virtual Studios, Sports, Video Servers, Media Asset Management • AAA customers – NBC, ESPN, TV Globo, CCTV, Deutsche Welle, WDR, RTL… • Worldwide distribution network • Financial Highlights: • Revenues of $14.4M in H1’13 and $35M in 2012 • Cash at the end of June 2013 $5.6M • Distribute cash dividend policy of at least 1/3 (33%) of the yearly net profits • Distribute cash dividend of over $9.8M in the last three years • 257 employees at the end of June 2013
Orad’s Solutions One core technology for many applications New Markets Video Graphics Hardware New Technology Video Server On-Air Graphics MAM Video Codecs Render Engine RadioTV IPTV Camera tracking Virtual Studios Virtual Advertising Sports Enhancement
Orad– from Virtual Studio to Content Provider Revenue $30M $15M Year 1993 2012 2005
Orad Delivers Content The broadcast production workflow
Orad’s Sales Network • * Over 50 Distributors
Putting the Pieces Together • Orad’s vision is to become a powerhouse of cutting edge • content production tools for the broadcast industry: • Wide range of 3D real time graphic solutions • Video servers serving different workflows • Media Asset Management (MAM) tools • Orad’s aim is to create new integrated workflows • for content creation and delivery Graphics Video Servers MAM
Market Trends • Continue to migrate from Standard Definition to High Definition • Reduce production costs through tapeless workflow which includes video servers solutions • Growing use of Media Asset Management (MAM) and IT solutions • Move from single channel to multi platform content distribution such as Internet, cellular and IPTV e.g. radio stations • Emerging markets create opportunities for new TV channels and investment on production level • Transition • 2nd screen (social TV) becoming popular mainly during live events • Longer term – Stereo and 4k resolution productions
Growth Strategy • New product offering to bigger market segments • Video Servers • MAM • RadioTV • Social TV (2nd screen) • Geographic expansion • Expand US presence and sales • Continue expanding in emerging markets • Penetrate new TV channels • Orad services • Providing services to Orad customers based on Orad’s products • Generate new revenue streams and enhance customer satisfaction • From products to solutions • Turnkey solutions including different products from Orad’s portfolio • Creating added value to customers by offering integrated solutions • M&A activities • Synergy – products and technologies complementing Orad solutions • Enhancing market presence – to complement and further enhance Orad’s presence in key territories
Half Year Highlights Revenues Net profit In thousand $ In thousand $ • Lower level of activity which started in Q3 2012, mostly due to the economic situation in Europe, continued through the second quarter of 2013, as reflected in the disappointing results for the first half of the year • Significant increase in Q2’13 bookings to highest quarterly level ever • Cost reduction program initiated – reducing headcount by 10% and trim other operational costs • The decrease in our operational expenses will not affect our continuous focus on strategic initiatives
2012 Highlights Revenues Net profit 21% 9% In thousand $ In thousand $ • Revenues of $35.0M in 2012 • Strong gross margin 67% • Net profit of $1.2M in 2012 • Dividend distribution in 2012 of $3.0M
Product Breakdown • Increase in sales of solutions to leading broadcasters, like in Asia Pacific and Latin America • Presented state of the art, new video graphics render engine that can generate ultra HD signals as well as HD 1080i, SD, and IP stream output for internet, tablets, and mobile phones, automatically taking into account the different aspect ratios and formats • Virtual studio: retain our position as a leader in this segment • Sports: Extension of a major virtual advertisement agreement with Dutch League • Server & MAM: Growth Engines
GeographicalBreakdown • Weakness in Western Europe • Appointed new VP and GM North America • Increase activities in China through a Joint Venture with Chinese Broadcast and Telecom Company
Strong Balance Sheet Strong Balance Sheet June 30st, 2013 (In thousand $) Long term liabilities Long term assets Current liabilities Current assets Equity Cash Total 24,443 Total 24,443
Thank you IR/ PR Contact - edicto GmbH Dr. Sönke Knop 0049 (0)69 90 550 551 / sknop@edicto.de Orad Hi-Tec Systems Mr. Ilan Sidi, CFO +97297676862 / ilan@orad.tv