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www.orad.tv. Company Presentation December 2012. Forward Looking Information.
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www.orad.tv Company Presentation December 2012
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 $35.3M in 2011, increase of 21% • Revenues of $27.9M in 9 months of 2012, increase of 8.5% • Profitable since 2006, with profit of $3.4M in 2011 and $1.6M in 9 months of 2012 • Strong balance sheet with $8.3M in cash • Distribute cash dividend policy of at least 1/3 (33%) of the yearly net profits • Distributed cash dividend of over $9.8M in the last three years • 260 employees
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
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
Orad’s Sales Network • * Over 50 Distributors
Market Trends • Continue to migrate from Standard Definition to High Definition • Reduce production cost through tapeless workflow • which includes video server 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 in production level • New small TV stations & increase in demand for entry level products • 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 • Continue expanding in emerging markets • Penetrate new TV channels • Orad services • Providing services to Orad customers based on Orad’s products • Generates new revenue streams and enhances 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 complimenting Orad solutions • Enhancing market presence – to compliment and further enhance Orad’s presence in key territories
2012: 9 Months’ Highlights Revenues Net profit 8.5% 22% In thousand $ In thousand $ • Revenues of $27.9M in 9 months of 2012, increase of 8.5% • Gross margin continues to be strong and stable – 69% • Net profit of $1.6M in 9 months of 2012 • Dividend distribution of $3.0M
2011 Highlights Revenues Net profit 21% 9% 24% 27% In thousand $ In thousand $ • Revenues of $35.3M in 2011, increase of 21% • Gross margin continues to be strong and stable – 69% • Net profit of $3.4M in 2011, increase of 24% • Complete the investment in IBIS - consolidated financial statements since August • Dividend distribution of $5.0M
Product Breakdown • Graphics: Continues to be the main growth engine • Virtual studio: Retain our position as a leader in this segment • Sports: Extension of a major virtual advertisement agreement with TV Globo until 2017 • Server: Long time to market acceptance
GeographicalBreakdown • Slowdown in Western Europe • Increase in East European sales • Anticipated increase in North American sales in 2013
Strong Balance Sheet Strong Balance Sheet September 30th, 2012 (In thousand $) Accrued severance Long term assets Current liabilities Current assets Equity Cash Total 31,805 Total 31,805
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