EVS Broadcast Equipment SA





How do you evaluate the overall

performance of EVS throughout

2023?







































What were the main focal points of

EVS’ strategy in the past year?































































EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members

Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report

EVS ANNUAL REPORT 2023 / CEO & CHAIRMAN INTERVIEW















ESG is an integral part of your strategy

at EVS. Can you highlight some key

achievements and outline the next steps?

























What steps is EVS taking

to remain at the forefront of

the rapidly evolving landscape

of live production?























What are you most looking forward

to in 2024?

































EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members

Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report

EVS ANNUAL REPORT 2023 / CEO & CHAIRMAN INTERVIEW































































































EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members

Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report

EVS ANNUAL REPORT 2023 / CEO & CHAIRMAN INTERVIEW











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



EMEA







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







NALA







APAC















   





























EVS ANNUAL REPORT 2023 / EVS KEY FIGURES

CEO & Chairman

interview

 EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members

Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report



























 

  

  

  

2015 2023 2028







































     











  









    





EVS ANNUAL REPORT 2023 / EVS STRATEGY

CEO & Chairman

interview

EVS Key Figures  BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members

Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report





















































































































EVS ANNUAL REPORT 2023 / EVS STRATEGY

CEO & Chairman

interview

EVS Key Figures  BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members

Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report













 

 











































  

   





































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



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









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EVS ANNUAL REPORT 2023 / EVS STRATEGY

CEO & Chairman

interview

EVS Key Figures  BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members

Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report



PLAYForward: A sustainable,

ambitious strategic plan for

delivering long-term growth















































  













Unleashing growth thanks to

a collective vision and shared ambition







Whenacompanyisgoingthroughexponentialgrowth

suchasthatexperiencedbyEVSfromtheearly2000s

to2012,decisionsareincreasinglymadeopportunis-

ticallywithlimitedfocusoncreatinganenvironment

thatfostersscalableandsustainablegrowthoverthe

longerterm,”explains















Producingaliveprogramhappensunderalotofstress

andrequiresveryspecificskillsandcompetences,

bothonthec ustomers’side,wheretheprograms

arebeingproducedlive,andonourside, wherethe

technologysolutionsaredeveloped,”empha sizes

.









EVS ANNUAL REPORT 2023 / BHAG AND VISION

CEO & Chairman

interview

EVS Key Figures EVS Strategy





Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members

Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report

Understanding our own DNA,

on which our growth strategy

will be based









































Expressing our fundamental

purpose, our mission















OurEVSteamsworkhardeverydaytoenable

production,direction,technicalandoperating

teamstotransformeverymomentcaptured

liveasvideointoamomentofemotion

conveyedthrougheverystorytoldlive”,

highlights



Building our future offering

with BluePrint Live





















TheEVSBluePrinthighlightstheimportance

ofcreatingcohesiveandintegratedpro-

ductionenvironments,ofpoolingproduc-

tionresourcesandtechnicalinfrastructures,

ofdynamicallyandautomaticallydealing

withmanagementandcreationprocesses

(notablyviaAI),andofmanagingallinstanc-

estogether,whethertheybelocal,cen-

tralorinthecloud”,notes





EVS ANNUAL REPORT 2023 / BHAG AND VISION

CEO & Chairman

interview

EVS Key Figures EVS Strategy





Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members

Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report

TheBluePrintpictureenabledustorapidly

identifyourgaps,andtomakestrategic

choicesabout howtoaddress them.

InMay2020,armedwithourBluePrint,

wemadethedecisiontomakeourlargest

acquisition ever byintegratingAxon

Technologies,nowoperatingunderthe

EVSMediaInfrabanner,bringingtogether

allourIPprocessing,monitoringand

routingsolutions”,adds



Bringing together 30 years

of experience, sharing and

emotion to build the future:

“Together for Live”

























Today,weareextremelyconfidentinthefuture

wehavebuiltupoverthepast4yearsaround

ourPLAYForwardprogram,whichhasenabled

ustoalignallourteams,customers,partnersand

usersaroundacommonproject.Ourresultsover

thelast3yearsconfirmthatwehavemadethe

rightchoicesandreinforceourdeterminationto

stayoncourse,whileconstantlyadjustingthe

sailsthatwillenableustocontinuegainingin

efficiencyandspeed.Wearecelebratingthe30



anniversaryofEVSwithserenityandgratitudeto

alltheteammemberswhomakethisadventurea

successeveryday.“Wetakeprideinunveilingour

30-yearEVStagline,‘Toget herForLive,’echoing

theresoundingsupportforoursharedvision”,

concludes





   







EVS ANNUAL REPORT 2023 / BHAG AND VISION

CEO & Chairman

interview

EVS Key Figures EVS Strategy





Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members

Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report



We create return

on emotion

   

   













   











Who we are







     





 





















What we deliver

    













   













Customer success

    



















 

























EVS ANNUAL REPORT 2023 / WHO WE ARE

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision 

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members

Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report





















































     







   



























EVS ANNUAL REPORT 2023 / CUSTOMERS’ SUCCESSES

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are





Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members

Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report















































EVS ANNUAL REPORT 2023 / CUSTOMERS’ SUCCESSES

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are





Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members

Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report

















    









































  





 

  

























































EVS ANNUAL REPORT 2023 / OUR OPERATORS

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes



Our Channel

Partners

Our Solutions

Our Team

Members

Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report

























































EVS ANNUAL REPORT 2023 / OUR OPERATORS

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes



Our Channel

Partners

Our Solutions

Our Team

Members

Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report

























































































EVS ANNUAL REPORT 2023 / OUR CHANNEL PARTNERS

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators





Our Solutions

Our Team

Members

Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report

LiveCeption

























  





















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

















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































 











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











EVS ANNUAL REPORT 2023 / OUR SOLUTIONS

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners



Our Team

Members

Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report



















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



















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















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



































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EVS ANNUAL REPORT 2023 / OUR SOLUTIONS

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners



Our Team

Members

Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report

















 













Learnmore

PowerVision®

































Learnmore

VIA MAP®































Learnmore

EVS ANNUAL REPORT 2023 / OUR SOLUTIONS

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners



Our Team

Members

Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report



575

639

642

250

500

750

2021

2022

2023

Headcount

575

639

642

250

500

750

2021

2022

2023

Headcount

38.2%

61.8%

387 based in HQ

55.6%

44.4%

285 of R&D

R&D

86%

14%

Distribution per gender

male female

 





91%











Beyondthemanybenefitsandopportunitieswe

offer,weprideourselvesonsuccessfullycultivating

acorporateculturethatteammembersareexcited

toremainpartof.Aculturewheretheyarevalued,

innovationthrivesandcustomersuccessisachieved.”



EVS ANNUAL REPORT 2023 / OUR TEAM MEMBERS

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions





Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report

EVS Skippers Team



















EVS Board of Directors

































70%

30%

Diversity at Board level

male female

EVS ANNUAL REPORT 2023 / OUR TEAM MEMBERS

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions





Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report

EVS Leadership Team



























EVS ANNUAL REPORT 2023 / OUR TEAM MEMBERS

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions





Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report

Well-being



 

























































 



  

  













































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Emotional

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EVS ANNUAL REPORT 2023 / OUR TEAM MEMBERS

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions





Creating

Value for our

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Information

Financial Report

Building a Sustainable Future: Our Commitment to Progress























































Readmoreinoursustainabilityreporthere















EVS ANNUAL REPORT 2023 / OUR TEAM MEMBERS

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions





Creating

Value for our

Shareholders

Shareholders’

Information

Financial Report









Our value creation strategy evolves

around the following topics:

































































































    

    

 



























Securingprofitableandsustainablegrowth

requires a delicatebalance: the brand

musthavesub st a ntia ltractioninthemar-

ket,whilethecorporatelevelmustmain-

tain arelentless pursuitof excellence,

continuouslymonitoringourtrajectoryto

ensurewe’reheadedintherightdirection.

Thisisthereasonwefocusonthefundamen-

talsofourcompanyandgettherightthings

right.”



EVS ANNUAL REPORT 2023 / CREATING VALUE FOR OUR SHAREHOLDERS

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members







Shareholders’

Information

Financial Report

Planet People Governance



























































Communities































EVS ANNUAL REPORT 2023 / CREATING VALUE FOR OUR SHAREHOLDERS

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members







Shareholders’

Information

Financial Report



















 









 







 



 



 



























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



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

EVS ANNUAL REPORT 2023 / CREATING VALUE FOR OUR SHAREHOLDERS

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

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



































































11,6

25,7

18,5

8,5

35,8

47,0

5.4

11.9

11.4

12.4

30.5

42.3

2018 2019 2020 2021 2022 2023

Net Prometer Score Overall























EVS ANNUAL REPORT 2023 / CREATING VALUE FOR OUR SHAREHOLDERS

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members







Shareholders’

Information

Financial Report



EVS Shares











Stock Market and Listing

























EVS Engagement with the Market

























Dividends















   

   

   

   



















EVS ANNUAL REPORT 2023 / SHAREHOLDERS’ INFORMATION

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members

Creating

Value for our

Shareholders





Financial Report

Shareholding

76.9

6.2

5.8

Share composition (in %)

Underclared

Treasury Shares

Michel Counson

Otus Capital

Management Limited

Banque Degroof

Petercam N.V.

Ennismore Fund

Management Limited









    



























General Meetings



























Financial Service













Information Accessibility

























































EVS ANNUAL REPORT 2023 / SHAREHOLDERS’ INFORMATION

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members

Creating

Value for our

Shareholders





Financial Report











          

           

           





          

           





          







          





          





          





          

           

           

           

           





          





          

           

           





          

           

           





          





          

EVS ANNUAL REPORT 2023 / SHAREHOLDERS’ INFORMATION

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members

Creating

Value for our

Shareholders





Financial Report

   

   





   

   

   

   

   





  





  

   

   

January 2023  December 2023

   

   





  





  

   

   





  





  

   

   





  

   

   















50 000

100 000

150 000

200 000

250 000

300 000

350 000

1/01/23

1/02/23

1/ 03/23

1/ 04/23

1/05/23

1/06/23

1/07/23

1/08/23

1/09/23

1/10/23

1/11/23

1/12/23

Number of Shares

Clos e

EVS ANNUAL REPORT 2023 / SHAREHOLDERS’ INFORMATION

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members

Creating

Value for our

Shareholders





Financial Report

€ 254,700 10,67740% 4.6% € 1.1

100

Payout ratio

(% of basic EPS)

2021

2022

2023

2021

2022

2023

Dividend Yield (%)

0,5

1,5

2021

2022

2023

Gross Dividend per Share

after split (EUR)

5 000

10 000

15 000

2021

2022

2023

Liquidity – average volume on the

stock market (number of shares)

1.5

0.5

100 000

200 000

300 000

2021

2022

2023

Liquidity – average daily volume

on the stock market (EUR)

100 000

200 000

300 000

2021

2022

2023

Liquidity – average daily volume

on the stock market (EUR)

EVS ANNUAL REPORT 2023 / SHAREHOLDERS’ INFORMATION

CEO & Chairman

interview

EVS Key Figures EVS Strategy BHAG and Vision Who We Are

Customers’

successes

Our Operators

Our Channel

Partners

Our Solutions

Our Team

Members

Creating

Value for our

Shareholders





Financial Report

EMEA











NALA















APAC

































Veerle De Wit, CFO

EVS Broadcast Equipment SA

+32 4 361 70 00

corpcom@evs.com



 

 

 

 

 



 
 
 

 
 
TABLE OF CONTENTS 
 
TABLE OF CONTENTS  37 
MANAGEMENT REPORT  40 
FINANCIAL REPORT  40 
CONSOLIDATED KEY FIGURES – IFRS (EUR MILLIONS)  40 
HIGHLIGHTS  40 
STRATEGY AND LONG-TERM GROWTH DRIVERS  41 
REVENUE  41 
RESEARCH AND DEVELOPMENT  42 
STAFFING  42 
RESULTS  43 
1.  2023 key figures  43 
2.  Comments on the results  43 
3.  Data per share (EUR)  43 
BALANCE SHEET, CASH-FLOW, OWN SHARES AND EMPLOYEE PROFIT SHARING  43 
PROVISIONS FOR RISKS AND CHARGES  44 
 RISK MANAGEMENT  44 
 INVESTMENTS  44 
 CAPITAL AND SUBSIDIARIES  44 
 NON-FINANCIAL PERFORMANCE – SUSTAINABILITY REPORT  44 
 OUTLOOK 2024  45 
 SUBSEQUENT EVENTS  45 
 PROPOSALS BY THE BOARD TO THE SHAREHOLDERS  45 
CORPORATE GOVERNANCE STATEMENT  46 
CORPORATE GOVERNANCE CHARTER  46 
BOARD OF DIRECTORS  46 
SPECIALIZED COMMITTEES ATTACHED TO THE BOARD  46 
1.  Audit Committee  46 
2.  Nomination and Remuneration Committee  47 
DAY-TO-DAY MANAGEMENT  49 
1.  Executive Committee  49 
2.  Operational management of subsidiaries  49 
DIVERSITY  49 
CONTROL OF THE COMPANY  50 
1.  Internal control and risk management systems  50 
2.  External audit  50 
SHAREHOLDING  50 
GENERAL MEETINGS  51 
SHAREHOLDER ENGAGEMENT  51 
 DIVIDENDS AND PROFIT ALLOCATION POLICY  51 
 RELEVANT INFORMATION IN THE EVENT OF A TAKEOVER BID  51 
 RESPECT OF THE BELGIAN CODE ON CORPORATE GOVERNANCE  53 
 REMUNERATION REPORT  54 
1.  Introduction  54 
2.  The Directors  54 
3.  The CEO and the other members of the Executive Management (known as the Leadership Team)  56 
4.  Comparative  information  on  the  evolution  of  compensation  and  company  performance  -  Ratio  between  the  highest  paid 
member of the management (CEO) and the lowest paid employee in Belgium  64 
 CONFLICT OF INTEREST PROCEDURES  64 
 RISKS AND UNCERTAINTIES  64 
1.  risks with high inherent risk  66 
2.  risks with moderate inherent risk  66 
CERTIFICATION OF RESPONSIBLE PERSONS  67 
CONSOLIDATED FINANCIAL STATEMENTS  68 
CONSOLIDATED INCOME STATEMENT  68 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME  69 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (BALANCE SHEET)  70 
CONSOLIDATED STATEMENT OF CASH FLOW  71 

 
 
 

 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY  72 
NOTES TO THE IFRS CONSOLIDATED FINANCIAL STATEMENTS  73 
INFORMATION ABOUT THE COMPANY  73 
1.  Identification  73 
2.  Public information  73 
3.  Corporate purpose of the company  73 
SUMMARY OF THE IFRS MATERIAL ACCOUNTING PRINCIPLES  73 
1.  Statement of compliance and basis of presentation  73 
2.  Summary of changes in accounting policies  73 
3.  Alternative performance measures  74 
4.  Consolidation principles  74 
5.  Subsidiaries  74 
6.  Interests in associates  74 
7.  Summary of significant judgements, assumptions, and estimates  74 
8.  Foreign currency translation  76 
9.  Intangible Assets  77 
10.  Tangible assets  78 
11.  Impairment of non-financial assets  78 
12.  Inventories  79 
13.  Trade and other receivables  79 
14.  Other non-current assets  79 
15.  Cash and cash equivalents  79 
16.  Treasury shares  79 
17.  Interest-bearing loans and borrowings  79 
18.  Provisions  79 
19.  Pensions and other post-employment benefits  79 
20.  Share-based payment  80 
21.  Revenue from contracts with customers  80 
22.  Government grants  80 
23.  Leases (EVS as lessee)  81 
24.  Leases (EVS as lessor)  81 
25.  Research and development costs  81 
26.  Income taxes  82 
27.  Derivative financial instruments  82 
28.  Dividends  83 
29.  Commitments relating to technical guarantee in respect of sales or services already provided  83 
30.  Earnings per share  83 
SEGMENT INFORMATION  83 
1.  General information  83 
2.  Additional information  83 
CONSOLIDATED COMPANIES, JOINT VENTURES, ASSOCIATES AND REPRESENTATIVE OFFICES  84 
INVESTMENT IN JOINT-VENTURES AND ASSOCIATES  86 
1.  Investments in associates  86 
INCOME AND EXPENSES  86 
1.  Gross margin  86 
2.  Research and development expenses  87 
3.  Complementary information about operating charges by nature  87 
4.  Post-employment benefit  87 
5.  Financial revenues/(costs)  89 
6.  Other income and expenses  90 
INCOME TAXES  90 
1.  Tax charge on results  90 
2.  Reconciliation of the tax charge:  90 
3.  Deferred taxes on the balance sheet  91 
EARNINGS PER SHARE  91 
DIVIDENDS PAID AND PROPOSED  92 
 GOODWILL  92 
1.  Axon Group  93 
 OTHER INTANGIBLE ASSETS  93 
 TANGIBLE ASSETS (LANDS AND BUILDINGS, AND OTHER TANGIBLE ASSETS)  94 
 LONG TERM FINANCIAL ASSETS  95 
 INVENTORIES  96 
 TRADE AND OTHER RECEIVABLES  96 
1.  Finance lease receivables  97 
2.  Contract balances  97 
 OTHER CURRENT FINANCIAL ASSETS  98 
 CASH AND CASH EQUIVALENTS  98 
 OWNER’S EQUITY  98 
1.  Movements in issued capital  98 
2.  Issued capital and treasury shares  99 
3.  Authorized capital  99 
4.  Staff incentive program  99 
5.  Treasury shares  100 
6.  Reserves  101 
7.  Translation differences  101 

 

 
 LOANS  101 
1.  Credit lines  101 
2.  Lease liabilities  101 
3.  Liabilities from financing activities  102 
 PROVISIONS  102 
 TRADE AND OTHER PAYABLES  102 
 AMOUNTS PAYABLE REGARDING REMUNERATION AND SOCIAL SECURITY  103 
 COMMITMENTS AND CONTINGENCIES  103 
1.  Operating lease commitments  103 
2.  Commitments relating to technical guarantee in respect of sales  103 
3.  Bank guarantees  103 
4.  Contractual guarantees  103 
5.  Guarantees on asset  103 
6.  Other guarantees and contingencies  103 
 RELATED PARTY DISCLOSURES  103 
1.  Affiliates  103 
2.  Executives  104 
 AUDITOR  104 
 FINANCIAL RISK MANAGEMENT POLICIES  104 
 FINANCIAL INSTRUMENTS  104 
1.  Fair values of the financial instruments  104 
2.  Foreign currency risk  105 
3.  Credit risk  105 
 EVENTS AFTER THE BALANCE SHEET CLOSING DATE  106 
AUDITOR’S REPORT  107 
BELGIAN GAAP PARENT COMPANY FINANCIAL STATEMENTS  111 
STATUTORY MANAGEMENT REPORT  111 
BELGIAN GAAP STATUTORY INCOME STATEMENT  112 
BELGIAN GAAP STATUTORY BALANCE SHEET  113 
APPENDIX TO PARENT COMPANY FINANCIAL STATEMENTS  115 
GLOSSARY  116 
 
The official version of the annual financial report under the Transparency Directive - Directive 2004/109/EC - is the ESEF 
version available at evs.com/investors/annual-reports

MANAGEMENT REPORT

FINANCIAL REPORT

1. CONSOLIDATED KEY FIGURES – IFRS (EUR MILLIONS)

2023

2022

2021

2023/2022

Revenue

173.2

148.2

137.6

+16.9%

Gross margin %

69.6%

66.7%

69.6%

+2.9 Pts

Operating profit - EBIT

41.1

31.7

37.1

+29.7%

Operating margin (EBIT) %

23.8%

21.4%

27.0%

+2.4 Pts

Income taxes

-3.6

-1.4

-2.8

+157.1%

Net profit, group share

36.9

31.3

34.9

+17.9%

Net profit (%)

21.3%

21.1%

25.4%

+0.2 Pts

2. HIGHLIGHTS

2023 has proven to be another successful year for EVS. The outstanding financial performance for the fiscal year 2023 is

marked by significant milestones and strategic advancements. The company has achieved unprecedented success, setting

a new revenue record, ensuring strong profitability, and securing a robust order book for the third consecutive year.

EVS realized a remarkable new revenue record, underscoring its unwavering commitment to sustainable growth. Despite

the anticipated absence of Big Event Rental revenues in an uneven year, the company's substantial revenue growth and

effective cost control strategies resulted in robust profitability, a testament to the success of the PlayForward strategy.

From a market pillar perspective, both Live Service Provider (LSP) and Live Audience business segment (LAB) demonstrate

growth. The LAB market more specifically experienced substantial order intake growth, showcasing the company's

expanding market share in broadcast studio environments.

From a solutions point of view, the Media Infrastructure solution segment played a pivotal role in driving order intake growth

across all regions. As anticipated, Media Infrastructure now systematically contributes to the Big Event Rental revenues.

EVS secured rental and support service contracts for major sporting events in 2024, establishing a solid foundation for Big

Event Rental revenues in the upcoming year. This underscores the company's position as a key player in the industry and

demonstrates its ability to secure long-term high-profile partnerships.

Customer satisfaction reached new heights, evident in the significant progress of the Net Promoter Score (NPS) over the

last three years, as measured by Devoncroft. Internally, EVS team members maintain a high level of engagement, as

reflected in the yearly internal engagement survey. This commitment to excellence is further highlighted by the recognition

as a 'Top Employer' in Belgium for the second consecutive year, placing the company among an elite group of close to 90

companies.

On the Environmental, Social, and Governance (ESG) front, EVS has set ambitious 2030 goals. The company now proudly

boasts a strong ESG rating, placing it in the top 15% of the best companies worldwide, according to evaluations from

Ecovadis and Sustainalytics. In addition, EVS has been added to the BEL ESG index, as announced by Euronext on March

, 2024. This index recognizes the top 20 companies listed on the Brussels stock exchange with the best ESG agenda.

This recognition is also a true testament of our ambition on the sustainability front.

Continuing its tradition of innovation, EVS introduced the generative AI-enabled XtraMotion solution, a notable example of

pushing the boundaries of technological advancements. This technology is particularly gaining attention in the LiveCeption

solution, where it transforms regular broadcast cameras into super slow-motion cameras. The introduction of artificial

intelligence-based search capabilities in the MediaCeption solution, along with the launch of the VIA MAP content

management platform during the international broadcast conference in Amsterdam, showcases EVS's commitment to

innovation.

EVS also maintained its tradition of delivering robust dividends.

In conclusion, the PlayForward strategy is evidently appreciated by customers and channel partners, confirming EVS's

profitable and sustainable growth mode. Despite challenging economic market conditions, including high interest rates and

certain component shortages, coupled with global conflicts, EVS remains confident that customers, channel partners, and

operators increasingly appreciate the reliability, performance, and innovative edge of its solutions and services.

Our ambition for the next years is to continue to deliver growth in both our top line and bottom-line. We feel that we are well

on track to deliver upon this promise. Based on our company indicators, EVS issues guidance on revenue for 2024 in the

range of EUR 180 million and EUR 195 million.

3. STRATEGY AND LONG-TERM GROWTH DRIVERS

EVS focuses on delivering standard “live media production solutions” with custom workflows based on modernized solutions

leveraging latest technologies (IP, AI, Virtualization, Micro-services, Open APIs, Cloud).

EVS growth strategy is based on different factors:

- Broader solutions to extend the scope of the workflows and the related business.

- More solutions in each category, applicable for different tiers of customers and/or productions.

- More categories of solutions.

Today, EVS proposes 3 main categories of solutions: LiveCeption, MediaCeption and Media Infrastructure.

Thanks to the convergence requested by the broadcasters in terms of infrastructure to produce sports, news, and

entertainment, EVS has the opportunity to provide more solution components and thus extend the scope of the current

solutions.

EVS also plans to increase the categories of solutions that will be offered to the same customers.

The different solutions are progressively structured in an ecosystem by which a customer benefits from higher value when

all the EVS components are combined. VIA MAP has been presented to the market in 2023 as the first ecosystem between

LiveCeption and MediaCeption. The goal is to offer a platform allowing smooth transition and integration and to ensure an

optimal cost of ownership for our customers. The ecosystem is also aimed to facilitate the interactions between different

stakeholders in the value chain (e.g. Right Owners and Right Holders)

These enhancements of the solution portfolio will not only be based on organic developments. EVS will integrate 3

-party

solution components based on strategic partnerships and/or acquisitions. New categories of solutions will be subject to

acquisitions.

Thanks to this new ecosystem, EVS plans to increase both the addressable market and its market share. The opportunity

to increase the market share mainly lies in Media Infrastructure and MediaCeption solutions and primarily in North America

region. 2023 has demonstrated that EVS has strong market traction, complemented by a strong Net Promotor Score.

EVS will also leverage SW to propose new flexible business models, ensuring a smooth transition from CAPEX to OPEX,

preserving mid-term revenues with absence of price sacrifice to tease to OPEX.

4. REVENUE

EVS revenue amounted to EUR 173.2 million in FY23, an increase of 16.9% compared to 2022 (+23.2% at constant currency

and excluding the big event rentals).

All our market pillars performed well in 2023 with each market pillar reaching or exceeding our expectations. Revenue of

solutions in LSP (Live Service Providers) represented 48.0% of the total group revenue: the LSP revenue counted for a total

of EUR 83,3 million in 2023 supported by large upgrades and investments in new infrastructure by our customers. The LAB

(Live Audience Business) revenue represented 52.0% of total revenue with an overall revenue number of EUR 90.0 million.

The LAB market pillar did grow significantly compared to 2022 (+26.0% YoY), demonstrating the positive outcome of the

PLAYForward strategy. We still expect EVS to realize further growth in this market in the future. Big Event Rentals

represented 0.0% of total revenue in 2023 due to the absence of such events this year.

From a regional perspective, each region contributed to strong results. In 2023, in Europe, Middle East and Africa

(“EMEA”), sales (excl. big event rentals) amounted to EUR 86.7 million (+28.0% compared to 2022). Sales (excl. big event

rentals) in Americas (“NALA”) were EUR 56.3 million (+9.2% compared to 2022, or +3.6% at constant currency). In Asia &

Pacific (“APAC”), sales (excl. big event rentals) were EUR 30.2 million (+59.7% at constant currency).

Historical evolution of revenue (EUR millions):

Revenue by geographical area

(EUR thousands)

APAC

excl. events

EMEA

excl. events

Americas

excl. events

Big event

Rentals

TOTAL

FY23 revenue

30,260

86,721

56,347

-0,137

173,191

Evolution versus FY22 (%)

59.7%

28.0%

9.2%

-100.0%

16.9%

Variation versus FY22 (%) at constant currency

59.7%

28.0%

3.6%

-100.0%

15.0%

FY22 revenue

18,952

67,764

51,592

9,850

148,158

5. RESEARCH AND DEVELOPMENT

Research and development expenses amounted to EUR 31.8 million in 2023 versus EUR 26.3 million in 2022.

The intangible capitalized costs include mainly the internal personnel costs and external consultants’ costs related to the

development phase of two important projects that should secure future growth for EVS. These projects consist in software

that will be commercialized at the end of the development period. For one of the projects, the development period ended at

the end of the third quarter of 2023, leading to the commencement of depreciation over a period of 5 years. The expected

return on investment for the second project is scheduled for 2024, complementing the PlayForward strategy of the Group.

The progress of these internal developments is monitored frequently as to ensure the future economic benefit remains

assured.

Other research and development costs remain in our operational spend, as IAS38 does not specifically apply for these

developments.

The detail of the total R&D spend is as follows:

(EUR thousands)

2023

2022

Gross R&D expenses

38,695

35,854

R&D capitalized as intangible assets

-4,177

-7,080

Depreciation of intangible assets

563

Benefits relating to R&D expenses

-3,245

-2,507

R&D expenses, net

31,836

26,267

6. STAFFING

Breakdown of personnel by department (in full-time equivalents):

Corporate

Services

Research &

Development

Sales &

Marketing

Production &

Operations

Total

Dec. 31, 2021

268

133

551

Dec. 31, 2022

291

159

613

Dec. 31, 2023

287

179

622

As of December 31, 2023, EVS had a total of 622 employees (full-time equivalents) including 20 permanent contractors (out

of which 7 leadership team members), an increase of 1.5% compared to the end of 2022. The total salary cost stands at

EUR 60.5 million in 2023 (EUR 53.5 million in 2022). Throughout 2023, the average number of employees (excluding

permanent contractors) was 592, up 3.3% over 2022.

111

107

138

129

131

119

131

119

116

103

138

148

173

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

7. RESULTS

7.1. 2023 key figures

IFRS - EUR million,

except earnings per share, expressed in EUR

1H23

2H23

2023

Revenue

87.4

85.8

173.2

Gross margin

61.2

59.4

120.6

Gross margin %

70.1%

69.3%

69.6%

Operating profit – EBIT

25.0

16.2

41.1

Operating margin – EBIT %

28.6%

18.9%

23.8%

Net profit – Group share

21.2

15.8

36.9

Fully diluted earnings per share

1.52

1.13

2.65

7.2. Comments on the results

Consolidated gross margin was at 69.7% for FY23, compared to 66.7% in FY22 (+3.0 Pts) explained by positive impact of

sales price increases and a higher volume of software compared to hardware in certain solutions. This has resulted primarily

in improved margins for all our solutions. The increase in revenue compared to the relative fixed services cost also explains

the gross margin increase.

Operating expenses increased by 18.6% YoY explained by an increase in team member base, inflation on labor cost, energy

prices and travel expenses. Additionally, in 2023, EVS made investments in its digital transformation journey. The

investments made in intangible assets throughout 2022 and 2023 also had a significant impact on the 2023 results, as we

started the depreciation of one important project in the fourth quarter.

Overall EBIT performance was EUR 41.1 million, generating an EBIT margin of 23.8%.

The net profit ended at EUR 36.9 million, with income tax expense amounting to EUR 3.6 million for the full year 2023

(compared to EUR 1.4 million in 2022). The increase in income tax is mainly driven by higher taxable profit, combined with

the limitation on the deduction of tax latencies from previous years in Belgium, leading to lower amount of deferred tax asset

that can be used during the period.

The net profit leads to a fully diluted earnings per share of EUR 2.65 (versus EUR 2.29 in 2022).

7.3. Data per share (EUR)

2023

2022

2021

2023/2022

Weighted average number of issued shares

for the period, less treasury shares

13,427,915

13,411,972

13,400,624

0.1%

Weighted average fully diluted number of shares

13,950,751

13,681,084

13,587,624

2.0%

Basic earnings, group share

2.75

2.34

2.60

17.5%

Fully diluted earnings, group share

2.65

2.29

2.57

15.7%

8. BALANCE SHEET, CASH-FLOW, OWN SHARES AND EMPLOYEE PROFIT SHARING

The balance sheet remains strong with net cash position of EUR 36.6 million with low debt level (of which EUR 12.7 million

related to IFRS 16), resulting in a total equity representing 76% of the total balance sheet as of the end of 2023.

Working capital requirements grew to EUR 89.6 million, primarily linked to growing trade receivables that evolve largely in

line with our overall sales volumes. The working capital over sales ratio slightly improves from 53% at year-end 2022 to 52%

at the end of 2023.

Inventories amount to EUR 33.0 million, an increase of EUR 4.2 million compared to the beginning of the year with the aim

of supporting the growth of our activities. The ratio of inventory vs. sales remains stable compared to prior years at 19%.

Other intangible assets include the costs for internal development capitalized during 2022 and 2023 according to IAS 38

(Intangible assets).

Lands and building mainly include the headquarters in Liège as well as the right of use for the offices abroad (IFRS16).

Liabilities include EUR 14.3 million of financial debt (including long term and short-term portion), mainly related to the lease

liabilities for EUR 12.7 million and borrowings for EUR 1.7 million. Long-term provisions include the provision for technical

warranty on EVS products for labor and parts. Other amounts payable mainly represent deferred income and advance

payments received from customers on contracts in progress.

Net cash from operating activities amounts to EUR 35.7 million for the full year 2023, compared to EUR 11.0 million in 2022.

The increase is mainly driven by higher net profit and lower variance in working capital requirements compared to the

previous year, mainly on trade receivables (large volume of invoices were issued in late 2022 given a temporary hold of

invoicing operations after the Go-Live of the new ERP system). On December 31, 2023, cash, and cash equivalents total

EUR 50.9 million, compared to EUR 49.1 million at the end of 2022. The increase is mainly driven by the higher cash from

operating activities as described above, partially offset by the net cash used in investing activities of EUR -7.5 million linked

to the investments in intangible and tangible assets (specifically in the internal development of intangible assets) together

with the net cash used in financing activities of EUR -25.9 million, mainly driven by total dividend payment of EUR -21.5

million.

At the end of December 2023, there were 14,327,024 EVS shares outstanding, of which 893,820 were owned by the

company. At the same date, 680,875 warrants were outstanding with an average exercise price of EUR 19.82 and maturities

between October 2026 and October 2029. Additional information is available in note 18.

The Ordinary General Meeting of shareholders of May 16, 2023, approved the allocation of 14,194 shares to EVS employees

(grant of 42 shares to each staff member in proportion to their effective or assimilated time of occupation in 2022) as a

reward for their contribution to the group successes.

9. PROVISIONS FOR RISKS AND CHARGES

As per December 31, 2023, EUR 1.7 million provisions were available to reasonably cover technical warranties. Additional

details are also presented in note 20.

10. RISK MANAGEMENT

EVS is exposed to various exogenous and endogenous risks detailed in the annexes of the annual financial report and in

paragraph 15 of the Corporate Governance statement. The management, the Audit Committee and the Board of Directors

conduct regular analyses of the company's risk and take actions to minimize or neutralize the potentially negative effects.

More information on the use of the financial instruments by the company, the objectives and policies relating to financial

risks management and the risks the company is exposed to, can be found in the Corporate Governance Statement (point

5.1) and in the “Risks and uncertainties” chapter. The foreign currency risk is treated separately in note 27.2.

Circumstances which may considerably impact the development of the Group are reported in the section “Risks and

uncertainties”.

11. INVESTMENTS

EVS business does not require major investments in equipment, though the situation of the components market has forced

EVS to invest more working capital into the inventory over the past years. The components market has stabilized over the

past couple of months, in the sense that there is some normalization of the price proof point and the delivery terms have

become more trustworthy. The average delivery term of components is on average still higher than our standard delivery

terms for our customers. Consequently, inventory levels continue and require a pro-active management approach based on

future growth assumptions, to ensure EVS can continue and respects its delivery terms towards the customers.

In 2023 EVS continued the investment of 2 internal development projects. The first project has been launched into the

market in September 2023. The launch of the second project is planned in 2024. Both investments are capitalized on the

balance sheet as intangible assets. For the project launched into the market in September 2023 depreciation of the intangible

assets has started in October 2023.

The group’s policy is to own its premises in Belgium, primarily because of the size of the building and the technical

requirements of our operations. This investment is primarily financed through shareholders’ equity and long-term bank loans.

As per December 31, 2023, the net book value of lands and buildings amounts to EUR 47.6 million (including EUR 8.1

million of right-of-use assets).

12. CAPITAL AND SUBSIDIARIES

The EVS Broadcast Equipment SA capital of EUR 8,772,323 is represented by fourteen million three hundred twenty-seven

thousand and twenty-four shares (14,327,024) without any designation of nominal value.

We refer to note 5 for the list of subsidiaries, associates, and representative offices.

13. NON-FINANCIAL PERFORMANCE – SUSTAINABILITY REPORT

Corporate sustainability is central to EVS’s strategy. We have a long-term commitment to the environment, our team

members, and the communities in which we operate. We constantly practice and demonstrate this commitment through

various initiatives that create an impact for the wider world. A detailed sustainability report has been prepared in accordance

with the EU Directive on disclosure of non-financial and diversity information, the GRI (Global Reporting Initiative) Standards:

core option, and can be consulted at https://evs.com/company/sustainability.

14. OUTLOOK 2024

Financial Guidance

The important order intake of 2023 has considerably fueled the order book to be delivered in future periods. The total order

book at the end of 2023 is EUR 153.2 million, growing 12.9% compared to the same period last year. The order book

reserved for 2024 is estimated at EUR 100.4 million, growing 16.9% compared to beginning of the year 2023. Out of this

number, EUR 7.4 million is reserved for Big Event Rentals. Post closing, we secured additional Big Event Rental contracts.

Based on the order book and current market dynamics, the revenue guidance for the year 2024 is set at EUR 180-195

million. We plan a controlled increase in the number of team members to support further growth.

15. SUBSEQUENT EVENTS

There are no subsequent events that may have a material impact on the financial statements of the Group.

16. PROPOSALS BY THE BOARD TO THE SHAREHOLDERS

The Ordinary General Meeting of May 16, 2023, approved the payment of a total gross dividend of EUR 1.10 per share for

the year 2022.

For the year 2023, an interim dividend of EUR 0.50 per share was paid in November 2023. Full year dividend of EUR 1.10

per share will be proposed to the Ordinary General Meeting of shareholders.

The latest dividend guidance issued in 2022 foresees total annual dividend distribution of EUR 1.10 per share in 2023 and

2024:

In € per fiscal per share

FY2021

FY2022

FY2023

FY2024

Base dividend

1.00

1.10

Exceptional additional dividend

0.50

0.00

Total dividend

1.50

1.60

1.10

All dividend intentions and guidance are subject to market conditions and the approval of the Ordinary General Meeting of

shareholders.

The Board of Directors also proposes to grant shares to the employees within the framework of the law relating to profit-

sharing schemes. These shares are based on a profit-sharing scheme of 2% of the annual EBIT. Based on an average

share price assumption of EUR 33.20, this would represent a total of 36 shares to be awarded per team member (only

Belgian team members are concerned). The exact number of shares is to be calculated at a later stage, based on the

average closing share price of the last 30 days prior to the publication of the invitation to the Ordinary General Meeting for

shareholders and awarded to the overall Belgian population.

CORPORATE GOVERNANCE STATEMENT

This section of the annual report summarizes the rules and principles of good corporate governance established by EVS, in

accordance with Belgian Company and Association Code (and the law of April 6, 2010), articles of incorporation and the

EVS Corporate Governance Charter. It also focuses on activities related to the year 2023.

1. CORPORATE GOVERNANCE CHARTER

Already in 2006, the Board of Directors of EVS Broadcast Equipment approved a Corporate Governance Charter (“Charter”),

Until 31 December 2019, this Charter was based on the 2009 Belgian Code on Corporate Governance. The Board of

Directors has reviewed and updated this Charter at the end of 2019, considering the 2020 Belgian Corporate Governance

Code. The Board of Directors has also updated the charter in March 2023 to consider the decisions made since then and

will continue to do so whenever needed. This document and its update is fully available on the group’s website

(www.evs.com).

The Charter adopted by the Board of Directors meets most points from the 2020 Belgian Corporate Governance Code.

However, the Board of Directors considered that some limited exceptions to the 2020 Belgian Corporate Governance Code

were justified given the specificities of EVS. The last section of this chapter highlights the differences with the 2020 Belgian

Corporate Governance Code and explains the reasons for the exemptions.

2. BOARD OF DIRECTORS

The members of the Board of Directors are appointed for a term between 1 and 4 years. On December 31, 2023, the Board

of Directors was made up of 9 members. Decisions are taken by a majority vote. In the event of a tie, the Chairman or his

representative has a casting vote. In the case of a conflict of interest, the people involved do not take part in the debates

and in the vote.

When one or several positions of Director become vacant because of death, resignation or for any other reason, the

remaining Directors are entitled to fill the vacancy temporarily. In such a case, the General Meeting shall make the definitive

appointment at its next session.

The members are provided with various documents at each Board meeting or enclosed with the notification of the meeting.

These documents include reports, financial results, investment documents and other papers relating to the items on the

agenda.

In 2023, the Board of Directors met 8 times and notably discussed the following matters: strategic review, changes in

management, R&D and product developments, risk management framework, monitoring subsidiaries, liquidity management,

business and treasury position of the company, 2023 business updates, the 2024 budget and 5 year business plan,

examining acquisition and partnership projects, reviewing remuneration of the Board of Directors and the members of the

Executive Management, preparing press releases and preparation of General Meetings, management of Directors’

mandates and evaluation of the functioning of the Board of Directors.

3. SPECIALIZED COMMITTEES ATTACHED TO THE BOARD

The Board of Directors of EVS has set up an Audit Committee and a Nomination and Remuneration Committee to conduct

reviews on specific matters and advise on them. The final decision remains a collective responsibility of the Board of

Directors.

3.1. Audit Committee

The Audit Committee is composed of three non-executive Directors. This committee assumes the missions described in the

Article 7:99 of the Belgian Company and Association Code. More generally, it assists the Board of Directors in its

responsibilities concerning the integrity of the financial information relating to the company and supervising the financial

reports, the internal audit function, the external audit function and the relations between the company and its shareholders.

The Audit Committee met 4 times in 2023 in the presence, for most of the topics, of the CEO, CFO, the head of accounting,

head of risk management and the company’s Auditor.

In accordance with the Article 3:6 of the Belgian Company and Association Code, the following members of the Audit

Committee have the required competencies in accounting and audit: Marco Miserez (having more than 12 years of

experience in financial services industry), Martin De Prycker (holding a Ph.D in Computer Sciences, as well as a MBA from

the University of Antwerp) and Soumya Chandramouli (CFO in another Belgian listed company), who joined the Audit

Committee after having been appointed Director by the Ordinary General Meeting of 16 May 2023.

The president of the Board of Directors, The House of Value – Advisory & Solutions BV, represented by Johan

Deschuyfeleer, is no longer member but remains permanent guest at the Audit Committee since the Ordinary General

Meeting of 16 May 2023.

3.2. Nomination and Remuneration Committee

The Nomination and Remuneration Committee is composed of four non-executive independent directors. This committee

assumes the mission described in the article 7:100 of the Belgian Company and Association Code. More generally, it assists

the Board of Directors in its responsibilities concerning the remuneration policy setting, reviewing, and setting the

remuneration for the company’s executives and managers as well as the long terms incentives and variables and bonus

policy. It also follows up and makes recommendations to the Board of Directors regarding the appointment of board members

and executives. The members of the Nomination and Remuneration Committee met 5 times in 2023.

On December 31, 2023, the Board of Directors was made up as follows:

Director

since

Audit

Committee

Nomination and

Remuneration

Committee

Term of

mandate

Activities in

2023*

Attendance

Board

meetings (8)

Attendance

Committees

(4 – Audit Co)

(5 – NRCo)

The House of Value – Advisory &

Solutions BV, represented by

Johan DESCHUYFELEER

President and

Independent

Director

2020

Permanent

guest

Member

May 2024

8/8

9/9

Accompany You srl, represented

Anne CAMBIER

Independent

Director

2019

Chairman

May 2023

8/8

5/5

Innoconsult BV, represented by

Martin DE PRYCKER

Independent

Director

2016

Chairman

May 2024

8/8

4/4

Michel COUNSON

Managing

Director

1994

May 2024

8/8

7 Capital srl, represented by**

Chantal DE VRIEZE

Independent

Director

2017

Member

May 2025

6/8

4/5

Frédéric VINCENT

Independent

Director

2022

Member

May 2026

7/8

5/5

Marco MISEREZ

Independent

Director

2022

Member

May 2026

8/8

4/4

Frinso Srl, represented by

Soumya Chandramouli*

Independent

Director

2023

Member

May 2027

5/8

0/2

InnoVision BV, represented by

Serge Van Herck**

Managing

Director &

CEO

2023

May 2027

5/8

* Frinso Srl, represented by Soumya Chandramouli has joined the Board of Directors as Independent Director in May 2023, which is the reason why she only

attended to 5 board meetings, and has joined the Audit Committee since then but could not attend the 2 meetings that were already planned because of

agenda conflicts.

** InnoVision BV, represented by Serge Van Herck, CEO, has joined the Board of Directors as Managing Director in May 2023, which is the reason why he

only attended 5 board meetings.

Michel COUNSON (°1960)

CTO Hardware and Managing Director of the company, Michel COUNSON graduated from the “Institut Electronique” in

Liège in 1982. He started his career as a Hardware Engineer with TECHNIQUE DIGITAL VIDEO S.A. in 1983 before

founding his own company, VIDEO SYSTEM ENGINEERING S.P.R.L., in 1986 which used to work in partnership with EVS

on numerous projects. The two companies merged in 2000.

Martin DE PRYCKER (°1955)

Martin De Prycker (representing InnoConsult BV) has been appointed as Board Observer of EVS in November 2015. He is

Independent Director of EVS since May 2016. He is Managing Partner at Qbic Fund (an interuniversity fund supporting spin-

off companies in Belgium) and Managing Director at Innoconsult (consultancy firm specialized in Innovation Management

and ICT solutions). Between 2009 and 2013, he was Founder & CEO of Caliopa (a startup in silicon photonics allowing the

transport of hundreds of Gbps on optical fiber). Between 2002 and 2009, he was CEO of Barco (display hardware and

software manufacturer based in Belgium). Under his leadership, he focused and made the company grow in markets using

displays and spinning off the non-core product lines. Prior to that, he was CTO and member of the Executive Committee of

Alcatel-Lucent. Before becoming CTO of Alcatel-Lucent, he was responsible for establishing Alcatel-Lucent’s worldwide

market leadership in the broadband access market. He is a member of the Board of Directors of Proximus, Newtec (Belgian

company designing, developing, and manufacturing equipment and technologies for satellite communications), Anteryon,

Track4C and Venture Spirit. Mr De Prycker holds a Ph.D in Computer Sciences, a M.Sc. in Electronics from the University

of Ghent, as well as a MBA from the University of Antwerp.

Chantal DE VRIEZE (°1961)

Chantal De Vrieze (permanently representing 7 Capital srl) is CEO of Econocom Benelux since October 2016. She started

her career in 1984 at AGFA, then Banque Van Breda, where she gained a solid background in Sales and Marketing. Between

2003 and 2015, she successively served as Sales Director, Managing Director of Econocom Benelux and a member of the

Board of Directors of Econocom Group (European provider of B2B digital solutions). In June 2015, she became Country

Manager of Altran Belgium (international consulting group for innovation and advanced engineering). She is graduated in

law from the University of Ghent. She is also a member of the Board of Directors of Axa Belgium, Guberna (Belgian Institute

of Directors) and Agoria, and a member of the FEB Strategic Committee.

Anne CAMBIER (°1970)

Anne Cambier, (permanently representing Accompany you srl) is director of her own business consulting company.

Throughout her career, she has gradually developed a passion for the human aspects of the business, with a specific focus

on competencies and leadership models in the context of technological shift.

Anne started her career in 1992 at Accenture, working for several corporate clients in Europe, mainly in the industrial and

utilities sectors. From 1999 until 2015, Anne worked for Orange Belgium, where she contributed to the rapid growing of the

mobile telephony in Belgium. At Orange, before taking her responsibility as Chief People Officer, she developed a broad

transversal business knowledge by leading several activities in commercial, customer operations, supply chain and

procurement. She holds a Civil Engineering degree in Applied Mathematics from the Ecole Polytechnique of Louvain

(UCLouvain) and an executive Master in Management from Solvay Brussels School (SBS).

Johan DESCHUYFFELEER (°1958)

Johan Deschuyffeleer (permanent representative of The House of Value BVBA - Advisory and Solution BV) has more than

35 years of international experience in the ICT and technology sector.

After several positions at the beginning of his career - as engineer and manager at Siemens and Hewlett-Packard - Johan

was Managing Director Belux at Compaq. Afterwards, Johan returned to Hewlett Packard first as Managing Director Belux

to subsequently shape the global sales strategy from Silicon Valley. He then headed the Technology Services EMEA and

later the Technology Consulting WW. Johan is currently Chairman of the Board of Directors of Orange Belgium and Director

at GIMV. Johan has an industrial engineering degree and has also followed a course in Middle Management at the Vlerick

Management School.

Frédéric Vincent (°1968)

Frédéric Vincent has more than 30 years’ experience in the media and IT sector. Frédéric first started working in IT at the

Bouygues Group in 1992. Subsequently, he entered the media industry as a project manager at TF1 in 1995 and launched

the French pay-TV operator TPS just one year later where he was not only responsible for technical matters but also for

channel programming and marketing. After just over 10 years, he moved to Canal+ in 2007, first as Business Development

Director, then as Chief Digital Officer and finally as CTIO, where he took over the overall responsibility for managing all

technical and IT activities for Canal+ Group (over France and abroad). In May 2016, he joined Renault Group as CIO. He is

now EVP, Renault Group IS/IT & Digital, Chairman of Renault Digital and member of the Renault Group’s Board of

Management. Frédéric has a computer science degree from Ecole Centrale de Paris.

Marco Miserez (°1987)

Marco Miserez has 12 years of experience in the financial sector and has been working as Senior Equity Investment

Manager at Belfius Insurance for the last 2 years. After graduating as a Commercial Engineer in "Finance and Cross-Cultural

Management" from the Ichec Brussels Management School in 2010, Marco Miserez has worked as Institutional Equity Sales

at KBC Securities and as Equity Fund Manager at Candriam (a New York Life Investment Company). He holds a director

mandate in Belfius Part SA and Technical Property Fund 2.

Soumya Chandramouli (°1977)

Soumya Chandramouli (representing Frinso srl) is currently the chief financial officer of Belgium-based IBA Group, the world

leader in particle accelerator technology. She joined IBA in 2004 and took various responsibilities within the company, before

taking on the role of chief financial officer in 2016. As CFO, Soumya has responsibilities in business partnering, strategy

and business development, corporate governance, mergers and acquisitions, treasury and financing, investor relations,

financial compliance and reporting and tax. Prior to IBA, she worked at Ernst & Young for several years. She holds a Master

of Business Administration from the University of Liège and a degree in Financial Analysis from the Belgian Association of

Financial Analysts as well as a specialization in Business Leadership from IMD Business School.

Serge Van Herck (°1969)

Serge Van Herck (representing InnoVision BV) joined EVS in September 2019 as CEO. Serge holds an electrical

engineering degree from the University of Ghent and an MBA degree from the Vlerick Leuven Gent Management School in

Belgium. Serge has more than 30 years of experience in the broadcast and satellite industry and over 15 years of experience

as CEO, having worked for various market leading companies such as Newtec, Accenture and Belgacom (now Proximus).

Before joining Newtec in 2003 he served for two years as Senior Manager in the Communications and High-Tech practice

of Accenture in Brussels. In 2003, he became Newtec’s Director Business Development for Asia and General Manager of

Skyware, a former subsidiary of Newtec in Germany. He was appointed CEO and Chairman of the Board of Newtec on

March 1st, 2006, and left the company in 2017. He transformed and successfully grew the company from a regional niche

player selling broadcast modulators to a widely recognized industry leader setting standards and selling complex satellite

network solutions across the globe. In 2008, he joined the WTA (World Teleport Association) and ESOA (European Satellite

Operator Association) as a board member. He also served as a board member at VOKA (Flanders' Chamber of Commerce

and Industry). He currently is serving as board member at Agoria (Belgium's largest employers' organization and trade

association).

4. DAY-TO-DAY MANAGEMENT

The Board of Directors has delegated day-to-day management to a managing director, the CEO and an Executive

Committee.

4.1. Executive Committee

On December 31, 2023, the Executive Committee was composed of:

- Innovision BV, represented by Serge VAN HERCK, CEO

- WeMagine Srl, represented by Veerle DE WIT, CFO

- Ikaro Srl, represented by Nicolas BOURDON, CMO

- RCG Srl, represented by Quentin GRUTMAN, CCO

- M2C Srl, represented by Pierre MATELART, CPO

- Openiris Ltd, represented by Alexander REDFERN, CTO

- Tols BV, represented by Xavier Orri, CXO

Michel Counson is also Managing Director but is not part of the Executive Committee, per his own request.

The Executive Committee coordinates the monitoring and development of the company and its affairs. Its members are in

permanent contact, receive information on the group’s financial situation, sales and projects, product and solution

development status, project deployment status, customer issues and the Committee takes operational decisions such as

appointing or dismissing staff and concluding contractual agreements. It is the decision-making body of the group.

4.2. Operational management of subsidiaries

The Executive Committee delegates the necessary powers to its subsidiaries to ensure their operational functioning. The

commercial and support subsidiaries are easy to control as their activities are entirely dependent on EVS Broadcast

Equipment SA, based in Liège (Belgium): delivery of promotional materials, presence at trade fairs, supply of machines or

exchange parts, and accounts. The Board of Directors of these subsidiaries are mainly composed of the headquarters’

Managing Director, the CEO, the CFO, and local managers. The subsidiaries are spread over geographical regions

(America, Europe/Africa/Middle East, Asia/Pacific). This type of organization enables very efficient distribution of information

at the group level as well as rapid decision making. The group’s commercial policy is coordinated by the parent company,

and each region has different levels of operational autonomy which allows creating an optimal contact with the market.

5. DIVERSITY

Conscious of the importance of ensuring diversity and inclusion of our staff to guarantee the well-being and the engagement

of our Team Members, EVS continuously works on the diversity of age, gender, ethnicity, educational and professional

background as well as geography of the executive committee, EVS top management team and the staff in general, including

the diversity of professional skills. Diversity and ethnicity are important to our company, given EVS' global presence. We

believe that diversity and inclusion is key to discovering talents, to have the right people at the right place in the organization

to ultimately achieve excellence. That is why we bring to attention the representation of minority groups at all levels. Our

team members are welcome regardless of their cultural background, gender, mother tongue, age, etc. We have zero

tolerance for racism and discrimination.

This is even more important given that the industry in which EVS operates is one that is clearly known for its lack of gender

diversity. In Europe, less than 20% of computer scientists are women, and moreover, in Belgium, for every 6 computer

scientists who graduate, there is only one woman. In this context, EVS wants to be an actor of change that will make it

possible to rebalance these figures, while knowing that gender parity is an unattainable objective in the short term.

In 2023, as regards gender equality in particular:

- Our Board of Directors was composed of 3 women out of 9 members in compliance with the gender quota at board

level.

- Our Executive Committee (known as the Leadership Team) was composed of 1 woman out of 7 members but

represents 3 different nationalities.

6. CONTROL OF THE COMPANY

6.1. Internal control and risk management systems

The management strives to provide a level of risk control that is as adequate as possible. The various risks are identified in

this financial annual report. The most important characteristics of internal controls and risk management systems are:

- The assessment, with the auditor, of his observations and, if necessary, the request for additional information and

clarifications, and the set-up of corrective actions.

- The assessment, with the auditor and the Audit Committee, of the processes that are at risk in the preparation and

remediation of the financial statements.

- The ongoing monitoring of activities, operating results, and financial risks of the company (including the financial position

of the company, the exchange rate risks), including the various subsidiaries of the group.

- Managing the information systems.

- Monitoring the rules for the prevention of market abuse, compliance with these rules and any violations.

- Monitoring the regulations and laws, including the monitoring of potential litigation, and possible financial implications

thereof.

- Monitoring the price of components and the relationships with our suppliers.

The process for the preparation of the consolidated accounts is centralized at the group's financial function level. All

information necessary for this process comes from widely used software in the market. Control procedures are in place to

ensure that it is thoroughly mastered. Since the fourth quarter of 2022 a new global ERP has been implemented to manage

the order to cash process end-to-end in an efficient way. As from the fourth quarter of 2023, all global entities are managed

through this global ERP with standard processes and controls.

6.2. External audit

Since the Ordinary General Meeting of May 17, 2016, the audit of the statutory and consolidated accounts of EVS Broadcast

Equipment SA is carried out by EY Réviseurs d’Entreprises SRL (B-00160). In 2022, the representation from EY was passed

on from Marie-Laure MOREAU (A-01729), Belgian Réviseur d’Entreprise to Carlo-Sébastien D’ADDARIO (A-02506),

Belgian Réviseur d’entreprise. The mandate of the Auditor is for three years, and the latest renewal period was confirmed

in May 2022.

In 2023, all fees related to the Auditor of the parent company, EY Réviseurs d’Entreprises SRL (B-00160), represented by

Carlo-Sébastien D’ADDARIO and its associates, amounted to EUR 277,202 in aggregate for their duties as Auditor. Other

audit services amounted to EUR 3.500. No non-audit services were carried out by the Commissioner in 2023.

7. SHAREHOLDING

The situation as it appears from the last official ownership statements received by the company and the situation of treasury

shares as of December 31

, 2023, is as follows:

Shareholder

Number of shares

% statutory basic

(1)

Treasury shares EVS

893,820

6.2%

Michel Counson

835,906

5.8%

Otus Capital Management Limited

714,792

4.99%

Ennismore Fund Management

435,497

3.0%

Banque Degroof Petercam N.V.

428,241

2.99%

Undeclared

11,018,768

76.9%

Total

14,327,024

100.0%

Total excl. Treasury shares

13,433,204

Outstanding warrants as of Dec. 31

680,875

Total diluted

15,007,899

Total diluted, excl. treasury shares

14,114,079

(1)

As % of the number of issued shares, including the treasury shares.

Since December 26, 2018, the capital of EVS is currently represented by 14,327,024 shares. There is only one category of

shares, all having the same rights. More information on the EVS capital is available in note 18 of the consolidated accounts.

On December 31, 2023, EVS had 893,820 own shares. According to Euroclear and the EVS Shareholders Register, there

were 1,322,067 registered shares of which 811,528 are owned by Michel Counson (who also owns 24,378 dematerialized

shares), 9,837 by EVS, 96,778 by the EVS employees under the profit-sharing scheme and the remaining balance by 14

shareholders. In the EVS accounts at Euroclear, there were 13,004,957 dematerialized shares.

Shareholders must declare their ownership in EVS shares as soon as their shareholding passes over/under the 3% threshold

(required by the company Statutes) and any multiple of 5% thresholds (required under Belgian law). The shareholding

percentage must be computed on the basic number of outstanding shares (i.e. 14,327,024 shares at the end of 2023).

8. GENERAL MEETINGS

Each year, EVS holds its Ordinary General Meeting on the third Tuesday of May. In 2023, it was held on May 16th at EVS’

premises and through a video conference system. Overall, 110 shareholders were present or represented, representing

3,997,872 shares, or 27.9 % of the share capital of EVS. All resolutions were approved at an average rate of 88.6% votes

in favor.

For any proposal to amend the articles of associations, the company must invite its shareholders to attend an Extraordinary

General Meeting. This assembly can validly cast only if 50% of shares are present or represented. If this is not the case, a

second Extraordinary General Meeting shall be convened and will be able to vote, regardless of the percentage of shares

present or represented. Decisions will be made to the majorities prescribed by law.

An Extraordinary General Meeting was held on May 16

, 2023, but did not reach the required quorum. A second

Extraordinary General meeting has been convened on June 5

, 2023. Overall, 114 shareholders were present or

represented, representing 3,860,913 shares, or 26,9% of the share capital of EVS. The proposition to (i) renew the

authorization granted to the Board of Directors to increase the capital within the framework of article 7:198 et seq. of the

Belgian Companies and Associations Code as well as (ii) to issue warrants were adopted.

To encourage the interactions between the company and its final shareholders, but also to better know them (and serve

them), EVS requires, according to the article 24 of its articles of association, the proxies for a general meeting to be signed

by the final effective beneficial owner. Hence, proxies signed by a custodian or sub-custodian must be accompanied by

another proxy, duly signed by the final effective beneficial owner, allowing them to exercise their rights.

9. SHAREHOLDER ENGAGEMENT

EVS’ management regularly engages with shareholders to discuss the evolution of EVS’ business, performance, and

strategy, particularly after the release of our trading updates and (bi-)annual results. In this context, the CEO and CFO have

regular contacts with our largest shareholders and value their input. In addition, we continue to consider the feedback we

receive from shareholder advisory groups. Finally, we often respond to the written requests of shareholders irrespective of

their size.

EVS’ management has intensified the engagement with our shareholders since 2022 and has continued this basis

throughout 2023, as we consider shareholder dialogue as a top priority. In 2023 multiple international roadshows were

organized. We have also engaged our shareholders in the development and validation of our ESG strategy.

In 2023 EVS also started to organize investor days again, to ensure an optimal, open, and transparent communication with

the investors, and to allow the investors to grasp the specificities of our business through demo’s, live use cases, ...

10. DIVIDENDS AND PROFIT ALLOCATION POLICY

The Board of Directors examines the results of the previous financial year and proposes at its Ordinary General Meeting

that these profits be distributed in the best interest of the company and its shareholders. Bearing in mind the legal restrictions

on profit distribution, the Board of Directors can propose a dividend policy that takes into consideration the company’s

investment and acquisition requirements. Since its IPO in 1998, the company has paid dividends. The company initiated in

2006 the payment in November of an interim dividend.

For 2023, the Board of Directors will propose to the shareholders, at the Ordinary General Meeting of May 21

, 2024, the

approval of the distribution of a total gross dividend per share of EUR 1.10 for the fiscal year.

All the above is subject to market conditions and to the approval of the Ordinary General Meeting of Shareholders.

The Board of Directors also proposes to grant shares to the employees within the framework of the law relating to profit-

sharing schemes. These shares are based on a profit-sharing scheme of 2% of the annual EBIT. Based on an average

share price assumption of EUR 33.20, this would represent a total of 36 shares to be awarded per team member (only

Belgian team members are concerned). The exact number of shares is to be calculated at a later stage, based on the

average closing share price of the last 30 days prior to the publication of the invitation to the Ordinary General Meeting for

shareholders and awarded to the overall Belgian population.

Dividends are payable at the following financial institution:

ING BANK SA (“Single ESES Paying Agent Euroclear”)

Avenue Marnix 24, 1000 Brussels, Belgium

11. RELEVANT INFORMATION IN THE EVENT OF A TAKEOVER BID

Article 34 of the Royal Decree of November 14, 2007, on the obligations of issuers of securities which have been admitted

to trading on a regulated market, requires that listed companies disclose certain items that may have an impact in the event

of a takeover bid.

Capital structure

A comprehensive overview of the Company's capital structure as of December 31, 2023, can be found in section 7

"Shareholding" of this Corporate Governance Statement.

Restrictions on transfers of securities

EVS’ Articles of Association do not contain any provision restricting the transfer of shares.

Holders of securities with special control rights

There are no such securities.

Employee share schemes

Each year, the Board of Directors proposes to the approval of the annual shareholders’ meeting the distribution of a certain

number of shares of the Company to each Belgian employee of the Company which has been hired before January 1 of the

relevant year, in proportion to their effective services (or equivalent), under a profit-sharing plan relating to the distribution

of the profits of such financial year.

Restriction on voting rights

Each EVS share entitles holders to exercise one vote at the shareholders’ meetings.

The Articles of Association of the Company do not contain any restrictions on the exercise of voting rights by the

shareholders, provided that the shareholders concerned comply with all formalities to be admitted to the shareholders'

meeting and have complied with the relevant rules on disclosure of major shareholdings.

Shareholder agreements

The Company is not aware of any shareholder agreement which includes or could lead to a restriction on the transfer of its

shares or exercise of voting rights related to its shares.

Appointment of members of the Board of Directors

The rules applicable to the appointment and replacement of members of the Board of Directors are set out in section 2

“Board of Directors" of this Corporate Governance Statement.

Amendment of the Articles of Association

Amendments to the Articles of Association must be submitted as a resolution to the Shareholders' Meeting. In order to be

approved, the resolution requires at least 50% of the share capital to be present or represented and the affirmative vote of

the holders of at least 75% of the votes cast. If the quorum is not reached, a second meeting may be convened at which no

presence quorum shall apply. The aforesaid special majority voting requirement, however, remains applicable.

Authorized capital

Pursuant to a decision of the Extraordinary General Meeting of June 5, 2023, the Board of Directors is authorized to increase

the capital on one or more occasions by a maximum amount of one million and six hundred thousand euro (1,600,000 EUR),

excluding the share premium. These capital increases may be carried out by subscriptions in cash, contributions in kind, or

incorporation of reserves or issue premiums, with or without the creation of shares. Within the limits of this authorization,

the Board of Directors may issue bonds convertible into shares or subscription rights, in compliance with the provisions of

articles 7:198 et seq. of the Companies and Associations Code. In the case of a share capital increase with share premium,

such premium must be entered and maintained in one or more separate accounts under shareholders' equity on the liabilities

side of the balance sheet. Similarly, in the event of an issue of subscription rights, their issue price must be entered and

maintained in one or more separate accounts under shareholders' equity on the liabilities side of the balance sheet. On the

occasion of any issue of shares, convertible bonds or subscription rights, the Board of Directors may limit or cancel the

preferential subscription rights of the shareholders, including in favor of one or more specific persons other than staff

members, in accordance with the terms and conditions to be determined by the Board of Directors and subject to compliance

with the provisions of articles 7:198 et seq. of the Belgian Companies and Associations Code. This general authorization is

valid for a period of five (5) years from the publication of the resolution of June 5, 2023, and is renewable. The Board of

Directors shall be entitled to amend the Articles of Association to the extent required to reflect the use of the authorization

granted by this article (article 7 of the articles of associations).

Acquisition of own shares

The Extraordinary General Meeting of shareholders of June 7, 2022, gave the following authorization to the Board of

Directors (article 10 of the articles of associations):

1. The Company may acquire, pledge, or dispose of its own shares in accordance with the law.

2. For a period of five (5) years from the publication in the Annexes to the Belgian Official Gazette of the decision of

the extraordinary general meeting of shareholders of June 7, 2022, the Board of Directors is authorized to acquire

on the stock exchange or otherwise, shares in the Company up to a maximum of 20 % of the issued shares, fully

paid up, at a unit price which may not be more than 20% lower than the lowest price during the last 12 months

preceding the transaction and which may not be more than 20% higher than the highest closing price during the

last 20 days of trading of the Company's shares on Euronext Brussels preceding the acquisition. This authorization

shall be renewable.

3. Furthermore, in accordance with article 7:218, § 1, 4° of the Belgian Companies and Associations Code, the Board

of Directors is explicitly authorized to dispose of the own shares acquired by the Company to one or more specific

persons other than members of staff of the Company or its subsidiaries.

4. The powers and authorizations referred to in this Article is extended to the acquisition and disposal of shares of

the Company by one or more subsidiaries directly controlled by the Company within the meaning of the Companies

and Associations Code.

Significant agreements or securities that may be impacted by a change of control of the company

None

12. RESPECT OF THE BELGIAN CODE ON CORPORATE GOVERNANCE

EVS has adopted the Belgian Code on Corporate Governance 2020 as reference code for EVS Corporate Governance

Charter. In accordance with the "comply or explain" principle laid down in the said Code, the board of directors reserves the

right to assess and adjust the application of these standards of good governance regarding EVS’ field of activity, its

capabilities, and its related constraints, as explained below:

- Independent Internal Audit (Article 4.14 of the Belgian Code on Corporate Governance 2020): Given the size of

the company, it has been decided and confirmed on regular basis that an independent internal audit as foreseen by the

Belgian Code on Corporate Governance 2020 cannot be implemented. Rather than having an independent internal

audit, focus is given to developing internal control mechanisms that help the company to monitor risks and inefficiencies.

It is the Audit Committee that makes recommendations on the selection, appointment, reappointment, and removal of

the head of internal audit and should monitor management's responsiveness to the audit committee's findings and

recommendations. In 2022, the Audit Committee has completed a process of confirming the scope and future evolution

of the internal control. In 2022 a new position was created and staffed, Head of Treasury, Risk Management and

Financial Reporting. This position is also supervising the internal controls of EVS. The function is to assist the Audit

Committee. EVS is undergoing a considerable transformation whereby the focus on designing and implementing sound

and efficient processes is a first layer to support our growth ambitions. This business process modeling (BPM) exercise

is progressing well, and the outcome of the exercise is the basis of our new ERP implemented in October 2022. In 2023

we continued expanding the scope of the BPM. In following periods (post 2023), we will identify critical control points of

all the processes designed to monitor the effectiveness and efficiency of our way of working. These steps are the

supporting elements to an internal control framework that will be implemented over time.

- Part of the remuneration of the non-executive directors in form of shares (Article 7.6 of the Belgian Code on

Corporate Governance 2020): further to a study on the practice and benchmark in this matter conducted in 2021 and

repeated in 2023, the Board of Directors has decided at this stage not to apply the possibility of allowing the non-

executive director to receive a portion of his remuneration in the form of shares of the company to avoid conflict of

interests and safeguard the independence of the non-executive directors. Such a position will be reviewed by the Board

of Directors on a regular basis.

- Minimum threshold of shares hold by Executives (Article 7.9 of the Belgian Code on Corporate Governance

2020): with respect to executives, and further to a study on the practice and benchmark in this matter conducted in

2021, notably on companies of comparable size, the Board of Directors has decided at this stage not to apply the

possibility of setting a minimum threshold for shares that executives must hold to avoid any speculation and also, given

the fact, that although that is not mandatory, the majority of the members of the Executive Management is already

shareholder of EVS. Such a position will be reviewed by the Board of Directors on a regular basis based on updated

practice and benchmarks. Additionally, while there is no minimum threshold, it's worth noting that the Board of Directors

strongly encourages executives to hold shares in the company.

EVS is complying with all other provisions of the Belgian Code on Corporate Governance 2020, including, for the sake of

clarity:

(i) evaluation of internal control systems and risks (Article 4.11 of the Belgian Code on Corporate Governance

2020): analysis has been conducted in 2021 and 2022: the Audit Committee on company's internal control

and risk management systems is monitored by the Head of Treasury and Risk Management as of 2023.

(ii) minimum vesting period of 3 years for EVS stock options (Article 7:11 of the Belgian Code on Corporate

Governance 2020) applying for the 2020, 2021 and 2023 EVS warrant plans as well as to the 2022 stock

option plan.

(iii) evaluation of the Audit Committee (Article 9 of the Belgian Code on Corporate Governance 2020) which has

been performed for the last time in 2022 based on an external and independent assessment.

13. REMUNERATION REPORT

13.1. Introduction

We are very proud of having significantly increased our shareholders’ support in 2023 relating to our remuneration report,

which was approved at a majority of 86,9% at the Ordinary General Meeting of May 16, 2023 (+41% shareholders’ support

compared to the Ordinary General Meeting of May 18, 2021, and even +51% shareholder support compared to the Ordinary

General Meeting of May 17, 2022). We are also very grateful for the increased shareholders’ support in 2023 regarding the

approval of (i) the proposed remuneration packages of our Executive Management (+17% compared to 2022) and (ii) the

propositions to issue warrants (which was adopted at the specific majority of 75% of the votes cast).

We are very satisfied with such positive momentum, which shows that we have taken seriously the dissent expressed by

our shareholders in 2021 and 2022, notably through:

(a) the review of the structure and the content of the present remuneration report, which has been updated (i) by

increasing the level of our disclosure in terms of performance metrics with regard to the variable remuneration of

the members of the Executive Management and by (ii) explaining the reasons why we are deviating from the

Belgian Companies and Association Code in terms of variable remuneration of our executives, while we will

gradually align their long term incentive with performance and multi-year objectives.

(b) the update of our remuneration policy considering above aspects to be in line with market standards and to further

increase our transparency towards our shareholders.

actively engage with our top shareholders, notably on these aspects and other important issues (such as the fact

that our CEO was not part of the Board of Directors (which is now the case since the Ordinary General Meeting of

16 May 2023) and the absence of company objectives linked to the LTI (which is also solved since the introduction

of the updated LTI in the 2023 remuneration policy as referred to in section 13.3.1.2.1 (d)). We appreciate the

valuable input that our shareholders provide and will take their views into account as we work to create long-term

value for all our stakeholders.

Against this background, we would like to thank our shareholders for their renewed support. We appreciate their valuable

input and will continue to take their views into account as we work to create long-term value for all our stakeholders.

13.2. The Directors

13.2.1. Remuneration policy

EVS is committed to having a Board of Directors that can provide sector-specific insights, dynamism, innovation, and

diversity to better reflect the unique demands of the EVS market. This is an essential driver for the EVS profitable growth

strategy in an international and innovative sector. To attract, motivate, and retain competent directors while contributing to

the short-term and long-term performance of the company, our EVS remuneration policy grants to Directors both fixed and

variable remunerations (for our non-executive Directors only and based on meeting attendance). This policy not only

encourages attendance and contributions, but also supports our directors in bringing in technological innovation, cultural

diversity, and new perspectives. Additionally, it promotes prudent risk management, while aligning with Belgian

recommendation from Governance institutes such as Guberna and uses company peer-groups to establish Belgian

benchmarks relevant to EVS’ specificities in terms of company size, international footprint, and technological innovation.

• Non-executive Directors: they receive an annual fixed amount, eventually on a pro rata basis. This fixed amount

includes participation to six meetings per year. The non-executive Directors also receive, as remuneration for the

performance of their mandate, a fixed amount for each Board of Director meeting above six meetings per year and

special committee meeting attended.

• Executive Directors: to align with Belgian market standards, it has been decided that Executive Directors shall no

longer receive any remuneration as of January 1, 2023.

The policy and the remuneration of the Directors are approved by the Ordinary General Meeting.

Since the Ordinary General Meeting of May 2023 approved the 2023 remuneration policy (with effect as of January 1, 2023),

the remuneration of the Directors is therefore fixed as follows (EUR):

Fixed amount

Variable amount linked to

attended meetings

Other

Board of

Directors

Special

committees

Board of

Directors

Special

committees

Non-executive

Innoconsult BV,

represented by Martin

DE PRYCKER

Independent Director

22,000 covering up

to 6 meetings per

year.

4,000 being

Chairman of the

Audit Committee

2,000 above 6 meetings for

a full year of presence

1,500 per

attendance

7 Capital Srl,

represented by

Chantal DE VRIEZE

Independent Director

22,000 covering up

to 6 meetings per

year.

2,000 above 6 meetings for

a full year of presence

1,500 per

attendance

Acompany You Srl,

represented by

Anne CAMBIER

Independent Director

22,000 covering up

to 6 meetings per

year.

4,000 being

Chairman of the

Nomination and

Remuneration

Committee

2,000 above 6 meetings for

a full year of presence

1,500 per

attendance

The House of Value –

Advisory & Solutions

BV, represented by

Johan

DESCHUYFELEER

Chairman and

Independent Director

44,000 covering up

to 6 meetings per

year.

2,000 above 6 meetings for

a full year of presence

1,500 per

attendance

Frédéric Vincent

Independent Director

22,000 covering up

to 6 meetings per

year.

2,000 above 6 meetings for

a full year of presence

1,500 per

attendance

Marco Miserez

Independent Director

22,000 covering up

to 6 meetings per

year.

2,000 above 6 meetings for

a full year of presence

1,500 per

attendance

Frinso Srl represented

by Soumya

Chandramouli

Independent Director

22,000 covering up

to 6 meetings per

year.

2,000 above 6 meetings for

a full year of presence

1,500 per

attendance

Executive

Michel COUNSON

Managing Director

Not entitled to any

remuneration

InnoVision BV

Managing Director

Not entitled to any

remuneration

The fixed amounts are adjusted pro rata temporis according to the appointment/resignation date during the year.

Remarks:

- The Company and its subsidiaries do not provide any personal loans, guarantees and such to the members of the

Board of Directors or the Executive Management. If Directors are charged with special tasks or projects, they are entitled

to receive an appropriate remuneration for those activities, which is notably the case for the Executive Directors.

- No termination compensation is provided for non-executive Directors at the end of their mandate. Non-executive

directors do not receive any shares, warrants or stock options. Non-executive directors do not receive any performance-

based compensation and retirement benefits.

13.2.2. Remuneration report in 2023

In 2023, Directors received the following compensation for the execution of their mandate (EUR) in application of the 2023

remuneration policy as described above:

The Ordinary General Meeting of May 2022 unanimously approved the granting to the members of the Board of Directors of an additional global remuneration

of EUR 25,000 per year for all members of the Board of Directors for the performance of exceptional tasks in the context of their function as director as validated

by the Board of Directors (such as, in particular, interviews, preparation meetings and other internal meetings other than meetings of the Board of Directors or

of a Committee (Audit, Remuneration or Strategic)). This amount is allocated by the Board of Directors among its members according to the number and

importance of exceptional missions actually carried out by each of them.

Fixed amount

Variable amount linked

to attended meetings

Other

TOTAL 2023

Board of

Directors

Special

committees

Board of

Directors

Special

committees

Non-executive

Innoconsult BV, represented by

Martin DE PRYCKER

Independent

Director

22,000

4,000

6,000

36,000

7 Capital Srl,

represented by

Chantal DE VRIEZE

Independent

Director

22,000

6,000

28,000

Acompany You Srl,

represented by

Anne CAMBIER

Independent

Director

22,000

4,000

7,500

1,500

39,000

The House of Value – Advisory &

Solutions BV, represented by Johan

DESCHUYFELEER

Independent

Director

44,000

4,000

10,500

58,500

Frédéric Vincent

Independent

Director

22,000

2,000

7,500

2,500

34,000

Marco Miserez

Independent

Director

22,000

4,000

6,000

1,500

33,500

Frinso Srl, represented by Soumya

Chandramouli

Independent

director

13,802.74

13.802,74

Executive

Michel COUNSON

Managing

Director

InnoVision BV, represented by Serge

VAN HERCK

Managing

Director

TOTAL

242,802.74

As of December 31, 2023, based on the last statements received by the company and the latest modification of the

shareholders’ register, the members of the Board of Directors held, directly or indirectly, 835,906 shares of a total of

14,327,024, or 5.8% of the capital.

13.3. The CEO and the other members of the Executive Management (known as the Leadership

Team)

13.3.1. Remuneration policy

13.3.1.1 Our vision

EVS is committed to offer everyone an individualized, fair, and competitive compensation package that reflects their

performance and level of responsibility.

Our remuneration policy regarding the members of the Executive Management is founded upon five core values that drive

our efforts to attract, motivate and retain competent and professional executives:

- First, we ensure that our compensation aligns with company peer-groups to establish Belgian benchmarks relevant to

EVS’ specificities in terms of company size, international footprint, and technological innovation to remain competitive

in the local market.

- Second, we strive to be innovative by considering new differentiation methods to provide unique and attractive

compensation packages.

- Third, we strike a balance between the Belgian and international markets to ensure our compensation packages remain

relevant and competitive globally.

- Fourth, we consider the specificity of the technology sector to cater for the unique demands of this rapidly evolving

industry.

- Finally, our policy is designed to promote long-term profitable and sustainable growth while considering the interests of

all stakeholders, including shareholders, customers, and team members.

Together, these values underpin our remuneration policy and enable us to attract and retain the best talent, skills, and

abilities, while motivating our executives to achieve the company's short-term and long-term ambitions and objectives.

Against this background, the level of the remuneration is determined as a function of the tasks and responsibilities and is

assessed annually by the Nomination and Remuneration Committee. The level of remuneration is also compared to external

references, either through studies or through external counsel. In particular, our remuneration policy takes into account the

market position and individual contributions of each member of the Executive Management, in alignment with our

remuneration policy applying to all company personnel. To this end, we are using Hay Group’s Job Evaluation Methodology

(managed by the company Korn Ferry) to grade functions and benchmark these against market practices. The HR

department requests Korn Ferry Hay Group to regularly perform a sanity check of the existing classification to ensure a

correct, consistent and solid basis for classification related applications. At EVS, comparisons to the market are made with

the median of the market, rather than the average. To be at a fair level of remuneration compared to the market, we consider

a fair remuneration in a range between 80% and 120% of the market median. The benchmarks used are chosen according

to the sector, the size of the companies and the location.

13.3.1.2 Compensation components of the CEO and other members of the Executive Management

13.3.1.2.1 Overview

Our remuneration policy for the members of the Executive Management foresees a

i. fixed compensation complemented by

ii. a short-term variable cash compensation (STI) that is based on financial and non-financial performance criteria (EBIT,

Order Intake and Performance) paid in cash and

iii. a long-term incentive consisting of warrants/stock options.

The variable compensation pillars are distributed according to the percentages listed in the below table:

Base compen-

sation (BC)

STI (a) On

Target

STI (a) Metrics

LTI (b)

Stock

options

Other

bene-

fits (c)

Insurance and

pension

contributions

(c)

Fin.

Non-Fin.

EBIT

Order

Intake

Performance

CEO

EUR 400,801

40% of BC

70%

30%

Max. 45%

of BC

None

N/A

CCO

45% of BC

35%

55%

10%

Max. 20%

of BC

None

N/A

CFO

25% of BC

70%

30%

Max. 20%

of BC

None

N/A

CMO

25% of BC

70%

30%

Max. 20%

of BC

None

N/A

CPO

25% of BC

70%

30%

Max. 20%

of BC

None

N/A

CTO

25% of BC

70%

30%

Max. 20%

of BC

None

N/A

CXO

25% of BC

70%

30%

Max. 20%

of BC

None

N/A

(a) Cash-based Short-Term Incentive (STI)

The financial and non-financial metrics of the Short-Term Incentive (STI) (e.g. the annual EBIT, Order Intake and

Performance, as provided for in the Remuneration Policy) are essential to achieve EVS' strategic objectives in the short

term.

- Financial

o The annual EBIT (Earnings before interest and taxes) objective allows our company to aim for improving

our profitability, ensuring our financial performance, and strengthening our long-term financial capacity,

notably to ensure compliance with our dividend distribution policy.

o The annual order intake objective is essential to ensure that we increase our sales as well as

strengthening the customer relationship while ensuring our company maintains a steady growth of

revenue and consolidates our position in the market.

- Non-Financial

o The annual performance objective helps to focus on projects that are either important and/or urgent to

carry out during the given year, considering the interests of the company and its customers.

All the above elements enhance shareholders’ value by contributing to our company's growth strategy, interests, and long-

term sustainability, in combination with the allocation of warrants or stock options, which provide long-term focused benefits.

It is to be noted that the achievement of the metrics linked to the Short-Term Incentive will always be evaluated at constant

perimeter versus the budget.

The financial STI targets are validated by the Board of Directors at the beginning of the relevant financial year and the

achievements are followed up quarterly and assessed annually. The assessment period is the last fiscal year and the STI

amount is confirmed at the end of the first quarter of the following year. The Nomination and Remuneration Committee is

assessing the target achievements and the related payout compared to the results of the company to ensure that the future

targets remain in line with the global performance of the company.

The weights in percentage of the STI criteria are assessed by the Board of Directors annually and adapted, when necessary,

by amending our Remuneration Policy, subject to the approval of our shareholders.

(b) Warrant/stock options-based Long-Term Incentive (LTI)

Stock options that apply to existing shares or give a right to subscribe to newly created shares in case of a capital increase

in the future are called “warrants” in Belgium. Alternatively, the company may also grant stock options that apply to existing

shares only, which are referred to herein as stock options. In both cases, the beneficiary will be given the right to buy the

company's stock at a pre-determined price (strike price) before an expiration date but after a minimum vesting period of 3

years, which implies that the company is rewarding, retaining, and motivating the executives on the long term. In most

countries, stock options are considered taxable when they are exercised. In Belgium, however, a special regime is in place

that requires a taxation when the options are granted. As such, there is an upfront investment when the warrants or stock

options are awarded which implies that the beneficiary may lose such upfront investment in case the warrants or stock

options cannot be exercised (e.g. if the warrant or stock option expires before it reaches the strike price or in case of

departure of the beneficiary from the company).

The compensation in warrants/stock options contributes to our company's commercial strategy, interests, and long-term

sustainability and is in line with the shareholders’ expectations to create shareholders’ value:

- On the one hand, insofar as the beneficiaries are directly incentivized to contribute to the company's profitable

growth, which they can benefit from by exercising their warrants/stock options if the company's value were to

increase between the time of allocation and the exercise of these warrants/stock options. This also motivates them

to take sustainable and value creation actions.

- On the other hand, insofar as the beneficiaries are incentivized to stay and invest in the company if they want to

be able to benefit from the exercise of the warrants/stock options that have been allocated to them, as the

warrants/stock options are taxed at the time of allocation (this investment being lost in the event of departure) and

may only be exercised at least three calendar years after their allocation

The CEO and the other members of the Executive Management are management companies which provide their services

on an independent basis, which implies that they do not benefit from other benefits, insurance, and pension contributions

such as our employees do.

(d) Focus on performance and multi-year objectives

While the above variable remuneration of our executives is deviating from the Belgian Companies and Association Code in

principles which is allowed subject to the approval of the General Meeting (Under the terms of the 2nd Indent of Article 7:91

of Belgian Company and Association Code, in a listed company, if an executive variable pay exceeds one-quarter of annual

remuneration, at least one-quarter of the performance period must exceed two years, and another one-quarter must exceed

three years, unless otherwise approved by the General Meeting), EVS has gradually introduced since 2023 an updated

warrant/stock options based LTI to attract, retain and reward the Executive Management by aligning the warrants/stock

options based LTI on performance criteria and multi-year objectives.

This updated LTI is a powerful tool for even more aligning the interests of our company's Executive Management with the

long-term sustainable growth of EVS. By providing rewards for loyalty, profitability growth, and ESG objectives, the updated

LTI will further help strengthening the culture of accountability and responsibility and drive sustained success for EVS over

the long term and increase shareholder value.

From 2023, the updated LTI provides yearly a variable number of warrants/ stock options based on:

- Long term performance, which is evaluated based on (1) the long-term profitability growth (two-years rolling EBIT

growth) and (2) the positive evolution of environmental, social, and governance (ESG) objectives, up to a level of

50% of the weight of the LTI. Since 2022, EVS has introduced the necessary measurement instruments to assess

these long-term performance indicators and grant warrants/stock options based LTI accordingly. Both indicators

are governed by the EVS multi-year Strategic and ESG rolling plans.

- Loyalty and retention of the Executive Management, which secures EVS' strategic growth. As the beneficiaries

must pay a non-recoverable tax upon the grant of the warrants/stock options (at Belgian level), and that they are

required to wait for a minimum vesting period of 3 years before they can exercise their warrant/stock options, The

LTI provides a reward to team members who stay with the company for a specified period.

The updated LTI granted to the CEO and the other members of the Executive Management can be summarized as follows:

LTI criteria

Performance

Loyalty/retention

Financial multi-year

objectives

ESG (multi-year) objectives

LTI 2023

90%

LTI 2024

15%

70%

LTI 2025 and beyond

25%

50%

LTI payout

Performance

(Financial and ESG)

Target

Below Threshold

Threshold

On-Target

Cap

Achievement

<50%

50%

100%

150%

Payout

100%

200%

(e) Potential deviation from the Remuneration Policy for the members of the Executive Management

The Ordinary General Meeting of 16 May 2023 has approved that, in exceptional circumstances and within the conditions

of article 7:89/1 of the Belgian Company and Association Code, the Board of Directors may deviate temporarily from the

2023 remuneration policy if necessary to serve EVS' long-term interests and sustainability, by way of the granting of a stand-

alone bonus to members of the Executive Management based on percentage of the secured order intake of more than 5

years or order intake related to Big Event Rental, in both cases capped to a maximum percentage of 0,2% of the relevant

order intake. A "Big Event Rental" is defined as a rental of EVS products and/or solutions in the framework of a big event

which does not occur annually.

Indeed, the nature of the business is gradually evolving towards very long-term strategic partnerships, which must be

encouraged. Exceptional transactions are not predictable on a YoY basis and call for exceptional rewards.

To implement such deviation, the Nomination and Remuneration Committee will present a special request for deviation to

the Board of Directors for discussion and approval. No such deviation will be implemented in the absence of prior approval

by the Board of Directors. Any deviation will be described and explained in the company's annual remuneration report in

accordance with the Belgian Companies and Associations Code.

The Board of Directors considers that such deviation procedure is in line with market practice for Belgian listed companies

and will make it possible to reward exceptional performance and retain key executive members in the interest of EVS'

sustained success in the long term.

13.3.1.2.2 STI

a. CEO

EBIT Target (70%)

Below Threshold

Threshold

On-Target

Cap

Achievements

<80%

80%

100%

120%

EBIT Target: 33,000 kEUR

< 26,400 kEUR

26,400 kEUR

33,000 kEUR

39,600 kEUR

Payout

50%

100%

150%

Performance Target (30%)

On-Target

Cap

Achievements

50%

100%

125%

150%

Payout

50%

100%

125%

150%

STI Maximum opportunity: 60% of the Base Compensation (i.e 240.481 EUR)

b. CCO

EBIT Target (35%)

Below Threshold

Threshold

On-Target

Cap

Achievements

<80%

80%

100%

120%

EBIT Target: 33,000 kEUR

< 26,400 kEUR

26,400 kEUR

33,000 kEUR

39,600 kEUR

Payout

50%

100%

150%

Performance Target (10%)

On-Target

Cap

Achievements

50%

100%

125%

150%

Payout

50%

100%

125%

150%

Order Intake Target (55%)

Below Threshold

Threshold

On-Target

Cap

Super Cap

Achievements

<80%

80%

100%

110%

120%

Payout

30%

100%

145%

200%

STI Maximum opportunity: 71% of Base Compensation

c. CFO, CTO, CPO, CMO, CXO

EBIT Target (70%)

Below Threshold

Threshold

On-Target

Cap

Achievements

<80%

80%

100%

120%

EBIT Target: 33,000 kEUR

< 26,400 kEUR

26,400 kEUR

33,000 kEUR

39,600 kEUR

Payout

50%

100%

150%

Performance Target (30%)

On-Target

Cap

Achievements

50%

100%

125%

150%

Payout

50%

100%

125%

150%

STI Maximum opportunity: 30% of Base Compensation

Remark on 2023 disclosure:

- EBIT and Order Intake Target: while it would be detrimental for EVS business (especially with regard to the

competition) to disclose the details of the Order Intake target, we have decided to share both 2023 EBIT target and

achievement to increase the transparency towards our shareholders. It is to be noted that the achievement of the

EBIT is always measured at constant perimeter versus the budget.

- The non-financial Performance Targets of the CEO were based on (i) the results of the 2023 EVS team members

engagement survey (91%) and (ii) the 2023 customer satisfaction survey (Devoncroft NPS 43.4 – Top 10%)

- The non-financial Performance Targets of the other members of the Executive Management typically relate to

operational efficiency, customer, and team member satisfaction. Find below some examples of 2023 performance

targets:

o Customer satisfaction

o Maintain high level of Customer satisfaction (NPS)

o Engagement with user communities

o Optimization of Channel partner support

o Team member satisfaction

o Renew the Top employer certification

o Maintain high level of satisfaction in yearly engagement survey

o Further improve Comp&Ben strategy

o Operational efficiency:

o Improvement of internal processes

o Increase technological knowledge

o Cost control

There is no advance payment for the variable remuneration of the members of the Executive Management.

13.3.1.2.3 Claw-back provisions

As a preliminary comment, please note that Claw-back provisions are limited because the potential beneficiaries do not

receive any advance payment.

(a) Consequences on the STI in case of termination of the services agreement of the CEO and other members

of the Executive Management

In case of termination of the services agreement of the CEO and other members of the Executive Management, the STI is

not due, except in case of termination (i) by EVS without cause (or for unavailability of the provider due to medical reason

or death) or (ii) by the provider with cause, in which cases, the provider shall remain entitled to the payment of the STI:

- related to the fiscal year preceding the year during which the written notice of termination shall have been given.

- related to the fiscal year during which the written notice of termination shall have been given only if the written notice is

given after July 1 of such fiscal year, and only on a pro rata basis (or when the cause is for unavailability of the provider

due to medical reason or death, 50% of such STI is due if the written notice is given before July 1 of such fiscal year or

100% of such STI is due if the written notice is given after July 1 of such fiscal year).

(b) Consequences on the LTI in case of termination of the services agreement of the CEO and other members

of the Executive Management

In case of termination of the services agreement of the CEO and other members of the Executive Management, the non-

exercisable warrants/ Stock options are lost unless the Board of Directors decides otherwise.

13.3.2. Remuneration report in 2023

13.3.2.1.1 Overview

CEO

Metrics

Weight (%)

Threshold

Target

Cap

Actual

Annual EBIT

70%

26,400,000 €

33,000,000 €

39,600,000 €

41,410,000 €

(125,48% of EBIT

Target)

Payout

55,979 €

111,958 €

167,937 €

(Cap amount

reached)

Non-Financial

30%

Performance

targets* Payout

23,991 €

47,982 €

71,973 €

59,978 €

125% of On-Target

payment

TOTAL

227,915 €

143% of On-Target

payment

Others

Metrics

Weight (%)

Threshold

Target

Cap

Actual

Financial

Annual EBIT

70 (35 for CCO

only)

26,400,000 €

33,000,000 €

39,600,800 €

41,410,000 €

(125,48% of EBIT

Target)

Order Intake

Target

55 for CCO

only

Nondisclosed

Payout EBIT

Payout OI

133,934 €

22,942 €

267,867 €

76,474 €

401,801 €

110,887 €

401,801 €

150% of On-Target

payment

105,566 €

Non-Financial

30 (10 for CCO

only)

Performance

targets* Payout

53,924 €

107,848724 €

161,772 €

133,785 €

124% of On-Target

payment

TOTAL

641,152 €

142% of On-Target

payment

* Please find below some examples of the 2023 Performance targets:

o Customer satisfaction

o Maintain high level of Customer satisfaction (NPS)

o Engagement with user communities

o Optimization of Channel partner support

o Team member satisfaction

o Renew the Top employer certification

o Maintain high level of satisfaction in yearly engagement survey

o Further improve Comp&Ben strategy

o Operational efficiency:

o Improvement of internal processes

o Increase technological knowledge

o Cost control

13.3.2.1.2 CEO

InnoVision BV, represented by Serge Van Herck, CEO received as Base Compensation a total amount of EUR 400,801 and

a STI of EUR 227,915 for the year 2023.

The average increase of 10% of the Base Compensation compared to last year’s Base compensation (EUR 363,225) can

be explained by the increase of the life costs and the evolution of the compensation benchmarks for such functions.

13.3.2.1.3 Other members of the Executive Management

For fiscal year 2023, the other members of the Executive Management were:

- Ikaro Srl, represented by Nicolas BOURDON, CMO

- RCG Srl, represented by Quentin GRUTMAN, CCO

- M2C Srl, represented by Pierre MATELART, CPO

- WeMagine Srl, represented by Veerle DE WIT, CFO

- Tols BV, represented by Xavier ORRI, CXO

- Openiris Ltd, represented by Alex REDFERN, CTO

The other members of the Executive Management received a global Base Compensation of EUR 1,606,772 (total company

cost) and a STI of EUR 652,706 (total company cost) for the year 2023, which represents an average total company cost

regarding the Base Compensation of EUR 267,795 and regarding the STI of EUR 108,784 per other member of the

Executive Management. Additional exceptional bonuses of EUR 50,000 and EUR 14,720 were granted in accordance with

the procedure offered in the remuneration policy as set forth under section 13.3.2.1.

The average increase of 8% of the Base Compensation compared to last year Base compensation (1,490,980) can be

explained by the learning curve of some Leadership Team Members (and increase by steps associated), by the increase

of the life costs and the evolution of the compensation benchmarks for such functions.

13.3.2.1.4 Warrants/ Stock options

As indicated in the procedure set forth under 13.3.1.2.1 (d), EVS has gradually introduced since 2023 an updated

warrant/stock options based LTI to attract, retain and reward the Executive Management by aligning the warrants/stock

options based LTI on performance criteria and multi-year objectives.

In 2023, the CEO and the other members of the Executive Management, received warrants as follows in accordance with

the 2023 EVS Warrants Plan:

Serge Van Herck

34,650 warrants

+5% compared to the On-Target amount (33,000)

Alex Redfern

10,500 warrants

+5% compared to the On-Target amount (10,000)

RCG Srl

10,500 warrants

+5% compared to the On-Target amount (10,000)

Ikaro Srl

7,850 warrants

+5% compared to the On-Target amount (7,500)

Pierre Matelart

7,850 warrants

+5% compared to the On-Target amount (7,500)

Veerle De Wit

7,850 warrants

+5% compared to the On-Target amount (7,500)

Xavier Orri

7,850 warrants

+5% compared to the On-Target amount (7,500)

TOTAL

87,150 warrants

On the basis of the procedure set forth under 13.3.1.2.1 (d):

Performance

Loyalty/retention

Financial multi-year objectives

ESG (multi-year) objectives

Weight

90%

Target

5% annual growth in accordance with

EVS 5 years business plan (two-years

rolling EBIT growth)

Adoption of the ESG 2030 ambition

objectives as per the ESG

applicable legislation

Achievement

Payout

Cap reached

10% (200% cap payout)

Adopted

5% (100% On-Target payout)

90%

Other active warrants plans:

The main features of the 2020 Warrant Plan were as follows:

- Grant date: 22 October 2020

- Vesting period: 3 calendar years (until 31 December 2023)

- First possible day of exercise: 1 January 2024

- Term of options: 6 years (expiration date of warrants: 21 October 2026)

- Strike price: 13.69 EUR (Average of EVS close share price 30 days before 22 October 2020)

The main features of the 2021 Warrants Plan were as follows:

- Grant date: 22 June 2021

- Vesting period: 3 calendar years (until 31 December 2024)

- First possible day of exercise: 1 January 2025

- Term of options: 6 years (expiration date of warrants: 21 June 2027)

- Strike price: 18.21 EUR (Average of EVS close share price 30 days before 22 June 2021)

The main features of the 2022 Stock option Plan were as follows:

- Grant date: 29 September 2022

- Vesting period: 3 calendar years (until 31 December 2025)

- First possible day of exercise: 1 January 2026

- Term of options: 6 years (expiration date of stock options: 28 September 2028)

- Strike price: 18.62 EUR (Last closing price preceding 29 September 2022)

The main features of the 2023 Stock option Plan were as follows:

- Grant date: 25 October 2023

- Vesting period: 3 calendar years (until 31 December 2026)

- First possible day of exercise: 1 January 2027

- Term of options: 6 years (expiration date of stock options: 24 October 2029)

- Strike price: 25.85 EUR (Last closing price preceding 25 October 2023)

13.3.2.1.5 Exceptional bonus

Within the framework of the procedure as referred to under 13.3.1.2.1 (e) as approved in the 2023 remuneration policy that

allows the Board of Directors to, in exceptional circumstances and within the conditions of article 7:89/1 of the Belgian

Company and Association Code, to grant a stand-alone bonus to members of the Executive Management to serve EVS'

long-term interests and sustainability based on percentage of the secured order intake of more than 5 years or order

intake related to Big Event Rental (in both cases capped to a maximum percentage of 0.2% of the relevant order intake),

the following exceptional bonus has been granted respectively in 2023 and 2024:

o In accordance with the Remuneration Policy, the Nomination and Remuneration Committee has presented a

special request for deviation to the Board of Directors for discussion and approval further to the conclusion of

an exceptional 10-year contract worth over USD 50,000,000 with a major US-based broadcast and media

production company. Based on this special request, the Board of Directors has approved on 30 May 2023 the

grant of an exceptional bonus of 50,000 EUR (i.e. less than 0.1% of the order intake of the above-mentioned

contract) to the CCO, RCG Srl, represented by Quentin Grutman. The grant of such bonus is justified by the

exceptional character of such multi-year agreement which represents a new milestone in the history of EVS

and clearly demonstrates that EVS is seen as a solid partner, able to meet future challenges of the broadcast

and media industry.

o In accordance with the Remuneration Policy, the Nomination and Remuneration Committee has presented a

special request for deviation to the Board of Directors for discussion and approval further to the conclusion of

the 2023 Big Event Rental amounting to 7,36MEUR. Based on this special request, the Board of Directors

has approved on 28 March 2024 the grant of an exceptional bonus of 14,720 EUR (i.e. 0,2% of the order intake

of the above-mentioned 2023 Big Event Rental Order Intake) to the CCO, RCG Srl, represented by Quentin

Grutman. The grant of such bonus is justified by the importance of the Big Event Rental for EVS for the

continued success of the company in the future.

13.4. Comparative information on the evolution of compensation and company performance -

Ratio between the highest paid member of the management (CEO) and the lowest paid

employee in Belgium

The below table shows the evolution of the compensation over a period of 5 years.

In €

2019

2020

2021

2022

2023

Remuneration Evolution

Average remuneration of employees

81,572

78,056

90,281

93,268

102,145

Annual remuneration of all employees

37,849,582

39,652,396

47,287,513

53,456,704

60,497,215

EVS Performance

EBIT (€ million)

23.0

5.7

37.1

31.7

41.1

Order intake (€ million)

120.6

103.4

149.3

218.8

192.9

ROCE

27.3%

8.1%

38.0%

31.3%

34.6%

Free cash-flow (€ million)

21.2

9.5

38.2

3.5

28.2

As defined by the law of April 28, 2020, the Group publishes the ratio between the highest paid member of the management

(CEO) and the lowest paid employee in Belgium. For 2023 this ratio is 11x. In terms of methodology, the average

compensation of employees is calculated by dividing the total wage costs by the average number of FTEs in the year. As of

2023, the denominator (i.e. the average number of FTEs) excludes the permanent contractors from the calculation (20 FTE

in 2023 including 7 leadership team members in 2023) in order to consider only the employees on the payroll for the

calculation of the average remuneration by employee. Average remuneration figures have been restated accordingly from

2021 onwards.

Lowest paid employee is defined as a full-time employee in Belgium who has worked for a full year and holds the lowest

base salary at year end, actual total remuneration received by such employee is considered in the calculation of the ratio.

Publishing of this ratio is a new practice required by the law and as such it will be assessed and evaluated in the future

considering the evolution of the ratio.

14. CONFLICT OF INTEREST PROCEDURES

During the year under review, there was no conflict of interest according to the specific procedure provided for under Article

7:96 of the Belgian Company and Association Code.

15. RISKS AND UNCERTAINTIES

Investing in the stock of EVS Broadcast Equipment (“EVS”) involves risks. As requested by the EU Regulations and the

Belgian law (Belgian Company and Association Code and Royal Decree of 14 November 2007), you and any investor should

carefully consider the following risk elements and all other information contained in this annual report before purchasing our

common stock. If any of the following risks occur, our business, financial condition or results of operations could be impacted.

In that case, the trading price of our common stock could decline, and you may lose some or all your investment.

EVS describes the risks linked to the environment we act in. These are generic risks, that are potentially highlighted in our

Risk Management Framework. If the generic risks are not taken up in our overall Risk Management Framework, this implies

that the risk is likely not eminent now or the risk is considered a very general risk.

Generic risks pointed out by EVS are as follows:

- We face competition and if we are unable to compete effectively, we may experience decreased sales or pricing

pressure, which would negatively impact our future operating results.

- We derive a substantial majority of our revenues from customers in the broadcast industry that use our products for

both production and transmission of television content. If we fail to generate continued revenues from this market or if

there is a downturn in this market, our revenues could decline.

- Even if we diversify our portfolio, we depend on sales of our XT and XS video server products, as they are generally at

the core of all our solutions. If market demand for these products does not continue, our future operating results could

be harmed.

- Our business may be harmed if our contract manufacturers are not able to provide us with adequate supplies of our

products: this is an ongoing concern with the current shortage in the market of electronic components.

- If we experience delays, shortages or quality issues from our component suppliers, our product sales could suffer.

- Our future success depends on our ability to attract and retain key personnel, and our failure to do so could harm our

ability to grow our business.

- The average selling price of our products may decrease which could negatively affect our operating results.

- Our end users require a high degree of product reliability. If we are unable to provide high quality products, our

relationships with end users could be harmed.

- If we fail to develop and introduce new products or enhancements to existing products in a timely manner, or if we fail

to manage product transitions, we could experience decreased revenues in the future.

- If we fail to respond to technological changes and evolving industry standards, our products could become obsolete or

less competitive in the future.

- If our products do not interoperate with other systems, installations could be delayed or cancelled.

- Our products are highly complex and may contain undetected software or hardware errors, which could harm our

reputation and future product sales.

- If we fail to manage our growth effectively, our business could be harmed.

- We may not be able to continue to maintain or increase our profitability and our recent growth rates may not be indicative

of our future growth.

- Our quarterly operating results have fluctuated in the past and may continue to fluctuate in the future, which could cause

stock price variances.

- We have significant international operations and derive most of our revenues from international customers, which

exposes us to significant risks, including risks relating to currency fluctuations.

- Our future financial performance depends on growth in the markets for video servers and digital tapeless solutions. If

these markets do not continue to grow at the rate that we forecast, our operating results will be materially and adversely

impacted.

- Investment processes of our clients can be lengthy and unpredictable, which may make it difficult to predict sales in

any particular quarter.

- Our use of open-source software and other third-party technology and intellectual property could impose limitations on

our ability to market our products.

- Failure to protect our intellectual property could substantially harm our business.

- If a third party asserts that we are infringing its intellectual property, whether successful or not, it could subject us to

costly and time-consuming litigation or expensive licenses, which could harm our business.

- We are subject to governmental export controls that could subject us to liability or adversely affect our ability to sell our

products in international markets.

- We are subject to environmental and other health and safety regulations that may increase our costs of operations or

limit our activities.

- We may expand through acquisitions of, or investments in, other companies, each of which may divert our

management's attention, result in additional dilution to stockholders or use resources that are necessary to operate

other parts of our business.

- The issuance of new accounting standards or future interpretations of existing accounting standards could adversely

affect our operating results.

- Maintaining and improving our financial controls and the requirements of being a public company may strain our

resources and divert management's attention.

- We or one of our affiliates might require additional capital to support business operations, and this capital might not be

available on acceptable terms, or at all.

In 2023, EVS updated its Risk Management Framework.

Our focus remains mainly on high priority risks; however, we record all identified risks as a way of being in line with the EVS

global strategy, ensuring coherence and helping to achieve our business objectives. It also helps us to assess whether we

allocate resources efficiently.

Below we provide a non-exhaustive overview of some of the risks impacting EVS. Not all risks are shared transparently, as

some risks could contain confidential information or could reveal competitive data. Mitigation actions are defined and

implemented to address the identified inherent risks.

15.1. risks with high inherent risk

- Risk of cyberattack leading to business interruption including shutdown of critical systems, inability to produce,

ship, deliver or support customers.

- Failure to attract the right Sales, Pre-Sales and Support talents with abilities to manage complex solutions and new

business models, leading to inability to fulfill our growth ambitions, particularly in NALA region.

- Failure to expand the customer base and the products offering, potentially leading to overdependency on a small

number of key customers with a small number of key products.

15.2. risks with moderate inherent risk

- Risks linked to the shortage of components is leading to unsecure delivery terms and higher prices. The inability

to foresee the issues of the components market may negatively impact our customers should we no longer be in a

position to deliver our customers in time. In particular, the Middle East and the Red Sea crisis results in cargo

shipping delays and price increases in the short term. While the situation is difficult to predict in the medium to long

term, delays and cost increases are likely to continue into the following months as shipping firms begin to plan for

an extended conflict. Lack of proactiveness in the supply chain may lead to higher prices again impacting the sales

price, or adversely the gross profit margin of EVS.

- Risk of data security vulnerabilities in our products may expose client data to security threats and potentially eroding

the trust of our customer base.

- Risk of not anticipating changes in the market and in technologies, potentially resulting in a loss of competitive

advantage and loss of the leadership position.

- Risk of being unable to sell and to manage support and operational readiness for complex solutions at customers'

site in a sustainable manner, leading to increased cost and issues on the availability of EVS support teams.

- Risk of ineffective licence management, leading to loss of revenue, increase of internal cost or customer

dissatisfaction.

- Risk of changes in fiscal legislation for tax deductions linked to innovation and research may directly affect our Net

Profit and our Earnings Per Share.

- Failure to anticipate negative impacts from climate change (e.g. extreme heat, floods,…), may lead to business

interruptions.

- Risk of fraud may lead to financial and reputational impacts.

The Board of Directors

Liège, March 28, 2024

CERTIFICATION OF RESPONSIBLE PERSONS

Serge Van Herck, CEO*

Veerle De Wit, CFO*

Certify that, based on their knowledge,

a) the annual financial statements, prepared in accordance with the International Financial Reporting Standards

(IFRS) adopted by the European Union, fairly present in all material respects the financial condition and results of

operations of the EVS Group and the companies included in the consolidation,

b) the management report fairly presents the important events and related parties transactions of 2023, including their

impact on the full financial statements, and a description of the main risks and uncertainties.

* acting on behalf of a bv/SRL

CONSOLIDATED FINANCIAL

STATEMENTS

CONSOLIDATED INCOME STATEMENT

(EUR thousands)

Notes

2023

2022

Revenue

173,191

148,158

Cost of sales

6.1

-52,548

-49,314

Gross profit

6.1

120,643

98,844

Gross margin %

69.7%

66.7%

Selling and administrative expenses

6.3

-46,567

-39,815

Research and development expenses

6.2

-31,836

-26,267

Other income

6.6

180

200

Other expenses

6.6

-488

-607

Profit-sharing plan and warrants

18.4

-790

-643

Operating profit (EBIT)

41,142

31,712

Operating margin (EBIT) %

23.8%

21.4%

Interest revenue on loans and deposits

6.5

230

106

Interest charges

6.5

-920

-912

Other net financial income / (expenses)

6.5

1,793

Share in the result of the enterprise accounted for using the equity method

Profit before taxes

40,551

32,766

Income taxes

-3,605

-1,422

Net profit

36,946

31,344

Attributable to:

Share of the group

36,946

31,344

EARNINGS PER SHARE (in number of shares and in EUR)

2023

2022

Weighted average number of issued shares

13,427,915

13,411,972

Weighted average fully diluted number of shares

13,950,751

13,681,084

Basic earnings – share of the group

2.75

2.34

Fully diluted earnings – share of the group

(1)

2.65

2.29

(1) The diluted earnings per share does include:

a. 187,000 warrants attributed in October 2020, of which 146,750 are outstanding with an exercise price below the share price and with maturity in

October 2026;

b. 158,600 warrants attributed in June 2021, of which 152,600 are outstanding with an exercise price below the share price and with maturity in June

2027;

c. 183,375 warrants attributed in September 2022, of which 182,625 are outstanding with an exercise price below the share price and with a maturity in

September 2028; and

d. 198,900 warrants attributed in October 2023, all outstanding with an exercise price below the share price and with a maturity in October 2029.

CONSOLIDATED STATEMENT OF

COMPREHENSIVE INCOME

(EUR thousands)

Notes

2023

2022

Net profit

36,946

31,344

Other comprehensive income of the period

Currency translation differences

18.7

-270

324

Total of recyclable elements

-270

324

Difference on opening

460

Gains / (losses) on remeasurement of defined benefit obligations, net of tax

6.4

-378

1,373

Total of non-recyclable elements, net of tax

-378

1,833

Total other comprehensive income of the period, net of tax

-648

2,157

Total comprehensive income for the period

36,298

33,501

Attributable to :

Share of the group

36,298

33,501

CONSOLIDATED STATEMENT OF FINANCIAL

POSITION (BALANCE SHEET)

ASSETS

(EUR thousands)

Notes

Dec 31, 2023

Dec 31, 2022

Non-current assets:

Goodwill

2,832

Other intangible assets

16,020

13,215

Lands and buildings

47,634

50,543

Other tangible assets

7,439

4,691

Investment accounted for using equity method

1,938

1,922

Other amounts receivable

3,458

3,647

Deferred tax assets

7.3

5,203

4,622

Financial assets

495

512

Total non-current assets

85,019

81,984

Current assets:

Inventories

33,001

28,786

Trade receivables

67,243

58,856

Other amounts receivable, deferred charges and accrued income

15,122

14,365

Financial assets

244

174

Cash and cash equivalents

50,947

49,051

Total current assets

166,557

151,232

Total assets

251,576

233,216

EQUITY AND LIABILITIES

(EUR thousands)

Notes

Dec 31, 2023

Dec 31, 2022

Equity

Capital

8,772

Reserves

18.6

198,897

183,390

Treasury shares

18.5

-17,174

-17,447

Total consolidated reserves

181,723

165,943

Translation differences

18.7

805

1,075

Equity, attributable to the owners of the parent

191,300

175,790

Non-controlling interest

Total equity

191,300

175,790

Provisions

1,738

1,637

Deferred taxes liabilities

7.3

Financial debts

10,444

11,528

Pension benefit obligations and other debts

6.4

143

120

Non-current liabilities

12,336

13,295

Financial debts

3,896

3,750

Trade payables

10,681

9,207

Amounts payable regarding remuneration and social security

12,481

11,219

Income tax payable

1,393

1,959

Other amounts payable, advances received, accrued charges and deferred income

19,489

17,996

Current liabilities

47,940

44,131

Total equity and liabilities

251,576

233,216

CONSOLIDATED STATEMENT OF CASH

FLOW

Notes

2023

2022

Cash flows from operating activities

Net profit, share of the group

36,946

31,344

Adjustment for:

- Depreciation and write-offs on tangible and intangible assets

11, 12

8,042

6,738

- Profit-sharing plan and warrants

18.4

790

642

- Provisions

20, 6.4

-388

212

- Income tax expense

3,605

1,422

- Net financial expense (+) / income (-)

6.5

672

-987

- Share of the result of entities accounted for under the equity method

-80

-67

Adjustment for changes in working capital items:

- Inventories

-4,216

-2,834

- Trade receivables

-8,198

-23,970

- Other amounts receivable, deferred charges and accrued income

-2,592

-3,889

- Trade payables

1,474

-1,290

- Amounts payable regarding remuneration and social security

1,083

541

- Other amounts payable, advances received, accrued charges and deferred income

1,375

4,776

- Conversion differences

(1)

-1,013

803

Cash generated from operations

37,500

13,441

Income taxes paid

-1,798

-2,469

Net cash from operating activities

35,702

10,972

Cash flows from investing activities

Purchase of intangible assets

-4,525

-8,770

Purchase of tangible assets (lands and building and other tangible assets)

-3,013

-1,101

Disposal of tangible assets

Other financial assets

-102

Net cash used in investing activities

-7,489

-9,973

Cash flows from financing activities

Repayment of borrowings

-1,105

-1,095

Payment of lease liabilities

-3,055

-2,828

Interests paid

6.5

-556

-688

Interests received

6.5

230

Dividend received from investee

Dividend paid

-21,497

-20,112

Net cash used in financing activities

-25,919

-24,584

Net increase in cash and cash equivalents

2,294

-23,585

Net foreign exchange difference

-398

492

Cash and cash equivalents at beginning of period

49,051

72,144

Cash and cash equivalents at end of period

50,947

49,051

(1) mainly related to EUR/USD

CONSOLIDATED STATEMENT OF CHANGES

IN EQUITY

(EUR thousands)

Notes

Capital

Reserves

Treasury

Currency

translation

differences

Equity,

share of

the group

Total

Equity

Balance as at January 1, 2022

8,772

170,570

-17,776

751

162,317

Profit or loss

31,344

Other comprehensive income

1,833

324

2,157

Total comprehensive income for

the period

33,177

324

33,501

Increase in shareholders’ equity

Share-based payments

18.4

581

Operations with treasury shares

18.5

-329

329

Final dividend

-13,402

Interim dividend

-6,710

Other allocation

-497

Balance as per December 31, 2022

8,772

183,390

-17,447

1,075

175,790

(EUR thousands)

Notes

Capital

Reserves

Treasury

Currency

translation

differences

Equity,

share of

the group

Total

Equity

Balance as at January 1, 2023

8,772

183,390

-17,447

1,075

175,790

Profit or loss

36,946

Other comprehensive income

-378

-270

-648

Total comprehensive income for

the period

36,568

-270

36,298

Increase in shareholders’ equity

Share-based payments

18.4

790

Operations with treasury shares

18.5

-273

273

Final dividend

-14,780

Interim dividend

-6,717

Other allocation

-81

Balance as per December 31, 2023

8,772

198,897

-17,174

805

191,300

NOTES TO THE IFRS CONSOLIDATED

FINANCIAL STATEMENTS

1. INFORMATION ABOUT THE COMPANY

1.1. Identification

EVS Broadcast Equipment SA

Liege Science Park

Rue Bois Saint-Jean, 13

B-4102 Seraing

VAT: BE 0452.080.178

National Registered Number: BE0452.080.178

www.evs.com

EVS Broadcast Equipment SA was incorporated for an unlimited period on February 17, 1994, in the form of a public limited

company governed by Belgian law. EVS Broadcast Equipment SA is a company whose shares are publicly traded. It has its

head office in Belgium, Liège.

The consolidated financial statements of EVS Broadcast Equipment SA on December 31st, 2023, were established by the

Board of Directors of March 28

, 2024. The Board of Directors is authorized to amend the consolidated financial statements

up until the Annual General Meeting of Shareholders, scheduled to be held on May 21

, 2024.

The financial year starts on January 1 and ends on December 31 of each year. The consolidated financial statements are

reported in euros (EUR).

1.2. Public information

The company’s financial statements are filed with the “Banque Nationale de Belgique”. Corporate by-laws and special

reports required by the Belgian Company and Association Code can be obtained from the Commercial Court Registry in

Liège and from the Belgian Official Bulletin “Moniteur Belge” and its related website

(“http://www.ejustice.just.fgov.be/tsv/tsvf.htm”). These documents, as well as annual statements and any written information

to shareholders, are also available at the company’s registered office. Financial information is available on the Internet at

www.evs.com.

1.3. Corporate purpose of the company

The corporate purpose of the company is the “development, marketing, and exploitation of audiovisual equipment as well

as, more generally, any operations of a general, commercial, industrial, financial, fixed or movable property nature, in

Belgium or elsewhere, directly or indirectly relating to the processing of pictures and sound, in whatever possible form. The

company may have interests in any manner in any kind of businesses, firms, or companies with identical, analogous, similar

or connected aims or which could further the development of its activities, supply it with raw materials or facilitate outlets for

the company’s services”.

2. SUMMARY OF THE IFRS MATERIAL ACCOUNTING PRINCIPLES

2.1. Statement of compliance and basis of presentation

The consolidated financial statements of EVS Broadcast Equipment SA and of its subsidiaries have been prepared in

accordance with the International Financial Reporting Standards (IFRS) adopted by the European Union. All standards and

interpretations issued by the International Accounting Standards Board (IASB) and the International Financial Reporting

Interpretations Committee (IFRIC) effective year-end 2023 and adopted by the European Union are applied by the Company.

The consolidated financial statements have been prepared on an historical cost basis, except for the share-based payments

(at the grant date), derivative financial instruments and contingent considerations, which are measured at their fair value.

The consolidated financial statements are presented in thousands of euros. All values are rounded figures to the nearest

thousand unless otherwise indicated.

The consolidated financial statements were authorized for issue by the Board of Directors on 28 March 2024.

2.2. Summary of changes in accounting policies

The Company consistently used the same accounting policies throughout all periods presented in its IFRS financial

statements. The Company does not anticipate a change in the application of standards and interpretations. There is no

other impeding change in accounting policy, at the exception of the first implementation of new or revised IFRS standards

and interpretations as adopted by the European Union that became mandatory on 1 January 2023 and that are detailed as

follows:

• Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of

Accounting policies, effective 1 January 2023

• Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting

Estimates, effective 1 January 2023

• Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single

Transaction, effective 1 January 2023

• IFRS 17 ‘Insurance contracts’, effective 1 January 2023

• Amendments to IFRS 17 Insurance contracts: Initial Application of IFRS 17 and IFRS 9 – Comparative Information,

issued on 9 December 2021, effective 1 January 2023

• Amendments to IAS 12 ‘Income Taxes’: International Tax Reform – Pillar Two Model Rules, effective 1 January

2023

The adoption of these new and amended standards has no impact on the financial statements of the Group. The Group has

not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective. Following

the amendments to IAS 1, the Group has revised the disclosure of its accounting policies.

2.3. Alternative performance measures

The group uses so called “Alternative performance measures” (“APM”) in the financial statements and notes. An APM is a

financial measure of historical or future financial performance, financial position, or cash flows, other than a financial

measure defined in the applicable financial reporting framework (IFRS). A glossary describing these alternative performance

measures is included at the end of this annual report. These measures are consistently used over time and when a change

is needed, comparable information is restated and reported.

2.4. Consolidation principles

The consolidated financial statements include the financial statements of EVS Broadcast Equipment SA and of its

subsidiaries prepared on December 31 of each year. The financial statements of the subsidiaries are prepared on the same

date and in accordance with identical accounting principles. All the intra-group balances, intra-group transactions as well as

the income, the expenses and the latent results included in the carrying amount of assets, generated by internal transactions,

are eliminated in full.

2.5. Subsidiaries

Subsidiaries are those entities controlled by EVS. Control exists when the following criteria are met:

a) EVS has the power (legally or de facto) over the investee.

b) EVS is exposed or entitled to variable returns from its involvement with the investee; and

c) EVS has the ability to use its power over the investee to affect the amount of returns it gets.

When EVS has less than a majority of the voting or similar rights of an investee, EVS considers all relevant facts and

circumstances in assessing whether it has power over an investee, including:

a) The contractual arrangement(s) with the other vote holders of the investee,

b) Rights arising from other contractual arrangements,

c) EVS’s voting rights and potential voting rights.

The subsidiaries are consolidated as from the acquisition date, which corresponds to the date on which the group took over

control and up until such date as the exercise of this control ceases.

All companies over which control is exercised directly or indirectly are fully consolidated.

2.6. Interests in associates

Associated companies are companies in which the group has a significant influence, defined as an investee in which the

group has the power to participate in its financial and operating policy decisions (but not to control the investee).

Associates are recognized according to the equity accounting method. These investments are carried in the balance sheet

at the lowest value between that obtained by the equity method and the recoverable value. The group’s share in the profit

and loss of the associates is entered into the profit and loss account, in a distinct line “Share in the result of the enterprise

accounted for using the equity method”.

The financial statements of the associates are used by the group to apply the equity accounting method. The financial

statements of the associates are prepared on the same reporting date as the parent company, based on similar accounting

principles.

2.7. Summary of significant judgements, assumptions, and estimates

In preparing the consolidated financial statements, management is required to make judgments and estimates that affect

amounts included in the financial statements.

The estimates carried out on each reporting date reflect the conditions in force on these dates (for example: market price,

interest rates and exchange rates).

Although these estimates are based on the best knowledge of management of the existing events and of the actions that

the group could undertake, the real results may differ from these estimates.

The use of estimates is particularly applicable when performing goodwill impairment tests and evaluating any additions to

the purchase price of past business combinations, the determination of the contingent consideration, determining the fair

value of share-based payments, the evaluation of the deferred tax position and the determination of the percentage of

completion of construction works.

The following are critical judgements and estimations that management has made in the process of applying the group’s

accounting policies and that have the most significant effect on the amounts recognized in the financial statements.

2.7.1. Revenue recognition

Under IFRS15, the transaction price is allocated to the identified performance obligations in the contract based on their

relative standalone selling price. Judgement is required in determining the stand-alone price and the transaction price

considering the contract duration.

• Determination of the contract duration

To define the duration of its contracts the group considers the contractual period in which the parties to the contract have

present enforceable rights and obligations.

• Determination of stand-alone selling price

In situations where the stand-alone selling price is not directly observable, the group assess it using all information (including

market conditions, EVS specific information or relevant customer information) that is reasonably available to the company.

Discounts granted because a customer entered into a contract are allocated to all performance obligations triggering the

granting of the discount.

• Identification of performance obligations

Identifying the performance obligation requires judgement and a thorough understanding of the contract promises and how

they interact with each other.

2.7.2. Fair-value of share-based payments

The Group’s employees and management may receive a remuneration in the form of a share-based payment, such as a

stock option or warrants. The stock options are measured at grant date, based on the share price at grant date, exercise

price, expected volatility, dividend estimates, and interest rates.

2.7.3. Deferred Tax position

Deferred tax assets are recognized for the carry-forward of unused tax losses and unused tax credits to the extent that it is

probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be

utilized. In making its judgment, management considers elements such as long-term business strategy, including tax

planning opportunities and local tax laws enacted at the reporting date. Deferred tax details are presented in note 7.3.

2.7.4. Current expected credit loss

The Company assesses on a forward-looking basis the expected credit loss associated with its financial assets carried at

amortized cost. For trade receivables, EVS applies the simplified approach permitted by IFRS 9 Financial instruments, which

requires expected lifetime losses to be recognized from initial recognition of the receivables. The ability of the Company to

collect its accounts receivable balances is dependent on the viability and solvency of its customers, who may experience

financial difficulties that could cause them to be unable to fulfil their payment obligations to the Company. The Company

develops its estimate of credit losses by number of days overdue and historical loss rates which are then adjusted for specific

receivables that are judged to have a higher-than-normal risk profile after considering management’s internal credit

assessment, as well as macro-economic and industry risk factors.

2.7.5. Lease term under IFRS 16

When the Company acts as lessee, the lease term consists of the non-cancellable period of a lease, together with periods

covered by options to extend the lease if the Company is reasonably certain to exercise these options, and periods covered

by options to terminate the lease if the Company is reasonably certain not to exercise these options.

Judgment is required in assessing whether these options will be exercised or not, considering all facts and circumstances

that create an economic incentive to exercise an extension or termination option. The assessment is reviewed if a significant

event or a significant change in circumstances occurs which affects this assessment.

2.7.6. Valuation of inventory and associated write-offs

Inventories are stated at the lower of cost or net realizable value. The calculation of the allowance for slow-moving inventory

is based on consistently applied write off rules, which depend on both historical and future demand, of which the latter is

subject to uncertainty due to rapid technological changes. On top of the minimum rules, more severe rules are applied in

case of for example the decision to stop a business unit or product line. The remaining inventory on hand is in that case

analyzed and reserved as appropriate. Inventory allowances are only reversed in case the above rules no longer apply or

the written off inventory is sold or scrapped (see note 14 inventory).

2.7.7. Functional currency of the group entities

The individual financial statements of each subsidiary are prepared in the currency of the primary economic environment in

which the entity operates. When the factors set out by IAS 21 to determine the functional currency are mixed and the

functional currency is not obvious, management judgment is used to determine which functional currency most faithfully

represents the economic effects of its underlying transactions, events and conditions. The functional currency of the EVS

Group entities is EUR except for the US entity EVS Inc. for which US Dollar is assessed by management to be the functional

currency.

2.7.8. Claims and contingent liabilities

Related to claims and contingencies, judgement is necessary in assessing the existence of an obligation resulting from a

past event, in assessing the probability of an economic outflow, and in quantifying the probable outcome of economic

resources. This judgment is reviewed when new information becomes available and often with the support of internal and

external expert advice.

2.7.9. Recoverable amount of cash generating units including goodwill

The Company tests the goodwill for impairment annually or more frequently if there are indications that goodwill might be

impaired. The outcome of the goodwill impairment test performed in the last quarter of 2023 did not result in an impairment

loss. The key assumptions that are used for estimating the recoverable amounts of cash generating units to which goodwill

is allocated are discussed in note 10 (goodwill).

2.7.10. Actuarial assumptions related to the measurement of employee benefit obligations and plan assets

The cost of the defined benefit pension plan and the present value of the pension obligation are determined using actuarial

valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the

future. These include the determination of the discount rate, future salary increases, mortality rates and future pension

increases. Due to the complexities involved in the valuation, and its long-term nature, a defined obligation is highly sensitive

to changes in these assumptions. All assumptions are reviewed on the reporting date and are discussed in note 6.4 (post-

employment benefit).

2.7.11. Estimation of useful life

Property, Plant and Equipment are depreciated using a straight-line method to allocate their depreciable amount on a

systematic basis over their useful life. For the headquarters building in Liège, the depreciable amount is the cost less its

estimated residual value. The useful life of an asset is estimated on a realistic basis based on the experience of the group

with similar assets and reviewed at least annually. The effect of changes in useful life are recognized progressively. The

residual value exercise is reviewed at each financial year-end and, if expectations differ from previous estimates, any change

is accounted for prospectively as a change in estimate under IAS 8.

2.7.12. Impact of the war in Ukraine on our activities

Further to the long-lasting conflict in Ukraine, EVS continues to monitor and comply with the international sanctions on

Russia and Belarus within the framework of its business in those regions. EVS does not anticipate that the compliance of

those sanctions might impact its business results as the revenue for those regions is not material. EVS does not have local

offices in the impacted region. The impact of the war, even if immaterial, is limited to signed orders, not being executed, or

delivered and potentially missed new opportunities that may arise in that area.

2.8. Foreign currency translation

The individual financial statements of each subsidiary are prepared in the currency of the primary economic environment in

which the entity operates. The functional currency reflects the underlying transactions, events and conditions that are

relevant to the entity, as assessed by Management. The functional currency of the EVS Group entities is EUR except for

the US entity EVS Inc. for which US Dollar is assessed by management to be the functional currency. The presentation

currency of the financial statements of EVS Broadcast Equipment SA is the euro.

2.8.1. Financial statements of foreign companies

For all the subsidiaries, transactions in foreign currencies are initially recorded in the functional currency at the exchange

rate in force on the transaction date. On the reporting date, the monetary assets and liabilities denominated in foreign

currencies are converted into the functional currency at the exchange rate in force on the reporting date. The non-monetary

items in foreign currency that are measured at the historical cost are converted at the exchange rates in force on the initial

transaction dates. All exchange differences are recognized in the consolidated income statement.

For the EVS Inc. subsidiary that operates in USD, assets and liabilities are converted at the reporting date in euros (EUR),

which is the functional currency of the parent company, at the exchange rate in force on the reporting date. Equity is

converted at a historical exchange rate and income statement is converted at the average exchange rate of the period. Any

exchange differences resulting from this conversion are recognized in other comprehensive income and shown under a

separate heading of the shareholders’ equity.

2.8.2. Transactions in foreign currencies

Transactions in foreign currencies are recognized at the exchange rate in force on the transaction date. The monetary assets

and liabilities denominated in foreign currencies are converted at the exchange rate in force on the reporting date. The

exchange gains or losses resulting from monetary transactions and the conversion of monetary assets or liabilities are

recognized in the income statement. Non-monetary assets and liabilities are converted at the exchange rate of the foreign

currency in force on the transaction date.

2.8.3. Exchange rates used USD / EUR exchange rate Twelve months average At December 31 (closing rate) 2023 1.0815 1.1050 2022 1.0537 1.0666 Variation 2.6% 3.6% GBP / EUR exchange rate Twelve months average At December 31 (closing rate) 2023 0.8698 0.8690 20220.8527 0.8869 Variation 2.0% -2.0%

2.9. Intangible Assets

2.9.1. Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and

accumulated impairment losses. The estimated useful life and amortization method are reviewed at the end of each reporting

period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite

useful lives that are acquired separately are carried at cost less accumulated impairment losses.

2.9.2. Internally-generated intangible assets – research and development expenditure

Expenditure on research activities is recognized as an expense in the period in which it is incurred. An internally generated

intangible asset arising from development (or from the development phase of an internal project) is recognized if, and only

if, all the following conditions have been demonstrated:

• The technical feasibility of completing the intangible asset so that it will be available for use or sale.

• The intention to complete the intangible asset and use or sell it.

• The ability to use or sell intangible assets.

• How the intangible asset will generate probable future economic benefits.

• The availability of adequate technical, financial, and other resources to complete the development and to use or

sell the intangible asset.

• The ability to measure reliably the expenditure attributable to the intangible asset during its development.

Where it is not possible to reliably distinguish between research or development costs, the costs are considered as being

research and therefore, these costs do not qualify as an internally generated intangible asset.

The amount initially recognized for internally generated intangible assets is the sum of the expenditure incurred from the

date when the intangible asset first meets the recognition criteria listed above. Where no internally generated intangible

asset can be recognized, development expenditure is recognized in profit or loss in the period in which it is incurred.

After initial recognition, internally generated intangible assets are reported at cost less accumulated amortization and

accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

We also refer to note 2.25 for specifics on the treatment of research and development costs.

2.9.3. Intangible assets acquired in a business combination

Intangible assets acquired in a business combination and recognized separately from goodwill are recognized initially at

their fair value at the acquisition date (which is regarded as their cost). After initial recognition, intangible assets acquired in

a business combination are reported at cost less accumulated amortization and accumulated impairment losses, on the

same basis as intangible assets that are acquired separately.

Intangible assets with a finite useful life are depreciated on a straight-line basis over the duration of their economic useful

life (3 years for software acquired for internal use and between 3 and 7 years for the other intangible assets) and reviewed

for impairment testing each time there is a sign of impairment in the intangible asset.

An intangible asset is derecognized at disposal, or when no future economic benefits are expected from use or disposal.

Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal

proceeds and the carrying amount of the asset, are recognized in profit or loss when the asset is derecognized.

2.10. Tangible assets

The buildings are recorded at cost. Their value is reduced with depreciation and is not subject to fair value revaluation. The

cost includes fees and costs. Subsidies that have been collected to finance the construction of the buildings are deducted

from the cost of acquisition.

Since the commissioning of the headquarter building in Liège in 2015, the cost of the building, less estimated residual value,

is depreciated over the estimated useful lives, using the straight-line method. The estimated useful lives, residual values

and depreciation method are reviewed at the end of each reporting period of the financial information.

The other tangible assets are recognized in the balance sheet at cost, less accumulated depreciation, and impairment

losses.

The estimated useful lives of the tangible assets are as follows:

- Buildings: between 10 and 30 years

- Vehicles: between 3 and 5 years

- IT equipment: between 3 and 4 years

- Office furniture and equipment: between 3 and 10 years

- Plant and equipment: between 3 and 10 years

- Other tangible assets: between 3 and 4 years

The depreciation is calculated from such time as the asset is available for use.

A tangible asset is no longer recognized in the accounts from such time as it is sold, or no future economic benefit is

expected from the asset. Any gain or loss generated at the time of the sale (calculated as the difference between the sale

price and the net carrying amount of the element) is recognized during the period during which it was sold.

2.11. Impairment of non-financial assets

The Group assesses on each reporting date whether there is an indication that an asset may be impaired. If any indication

exists, or when annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount. An

asset’s recoverable amount is the higher of an assets or CGU’s fair value, less costs of disposal and its value in use. The

recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely

independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its

recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount

rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining

fair value less costs of disposal, recent market transactions are considered. If no such transactions can be identified, an

appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for

publicly traded companies or other available fair value indicators.

The Group bases its impairment calculation on most recent budgets and forecast calculations, which are prepared separately

for each of the Group’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally

cover a period of five years. When appropriate, a long-term growth rate is calculated and applied to project future cash flows

after the fifth year.

Impairment losses of continuing operations are recognized in the statement of profit or loss in expense categories consistent

with the function of the impaired asset.

For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication

that previously recognized impairment losses no longer exist or have decreased. If such an indication exists, the Group

estimates the assets or CGU’s recoverable amount. A previously recognized impairment loss is reversed only if there has

been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was

recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor

exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized

for the asset in prior years. Such a reversal is recognized in the statement of profit or loss.

Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the

goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is

recognized. Impairment losses relating to goodwill cannot be reversed in future periods.

2.12. Inventories

Inventories are valued at the lower of cost and net realizable value.

Costs incurred in bringing stocks to the right place in the appropriate conditions are recognized as follows for both the current

and previous year:

- the cost of the raw materials is determined using the weighted average price method.

- the cost of the finished goods and work-in-progress is the full cost, which covers all the direct costs (materials and labor)

and a portion of the indirect production costs necessary to take the stock to completion on the reporting date, excluding

the borrowing costs.

The net realizable value is the estimated sale price at the normal rate of the activity, less the estimated costs for the

completion of the goods and the estimated costs necessary to realize the sale.

Write offs on inventories are applied on slow-moving inventory. The calculation of the allowance is based on write-off rules

that are applied consistently, which depend on both historical and future demand, of which the latter is subject to uncertainty

due to rapid technological changes.

2.13. Trade and other receivables

Trade receivables that do not contain a significant financing component or for which the Group has applied the practical

expedient are measured at the transaction price less an allowance for doubtful debts and less an amount for expected credit

losses. The allowance for doubtful debts is recorded in operating income when it is probable that the company will not be

able to collect all amounts due. Allowances are calculated on an individual basis, based on an aging analysis of the trade

debtors. For the determination of the expected credit loss, EVS has applied the simplified approach and records lifetime

expected losses on all trade receivables. This amount is determined on a portfolio basis, based on a provision matrix that

considers historical credit loss experience.

2.14. Other non-current assets

Other non-current assets include long-term interest-bearing receivables and cash guarantees. Such long-term receivables

are accounted for as receivables originated by the Company and are carried at amortized cost. An impairment loss is

recorded when the carrying amount exceeds the estimated recoverable amount.

2.15. Cash and cash equivalents

The cash and cash equivalents include cash at bank and in hand and short-term deposits with an original maturity date or

notice period of three months or less. All the investments are recognized at their nominal value in the financial statements.

2.16. Treasury shares

Sums paid or received during the acquisition or sale of the company’s treasury shares are recognized directly in the equity.

No profit or expense is included in the income statement during the purchase, sale, issuance, or cancellation of treasury

shares. The treasury shares are classified under the “treasury shares” heading and are deducted from the total shareholders’

equity.

2.17. Interest-bearing loans and borrowings

All loans and borrowings are initially recognized at the fair value of the amount received, less the transaction costs to be

allocated directly if they are significant. After the initial recognition, interest-bearing loans and borrowings are subsequently

measured at amortized cost, using the effective interest rate method. The profits and losses are recognized in the results

when the liabilities are derecognized and via the effective interest rate method. Interest revenue is recognized as interest

accrues.

2.18. Provisions

Provisions are recognized when the group has a present obligation (legal or implicit) as a result of a past event, if it is

probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable

estimate can be made of the obligation value.

2.19. Pensions and other post-employment benefits

The post-employment benefits include pensions. The group operates defined contribution pension schemes. The minimum

legal contribution is partially warranted by the insurance company.

However, according to IAS19, Belgian-defined contribution plans that guarantee a specified return on contributions are

considered as defined benefit plans, as the employer is not responsible for the contribution payments but has to cover the

investment risk until the legal minimum rates applicable.

IAS 19 requires an entity to recognize a liability when an employee has provided service in exchange for employee benefits

to be paid in the future. Therefore, pension provisions are set up. The obligations are measured on a discounted basis since

they are settled several years after the employees render the related service.

2.20. Share-based payment

The Group’s employees and management may receive a remuneration in the form of a share-based payment, such as a

non-transferable stock option plan (warrants), which allows them to acquire or receive group shares (equity-settled

transactions), or such as payments determined on the value of the share (cash-settled transactions).

The cost of the stock option plans (warrants) is determined by reference to the fair value of the equity instruments granted,

measured on the grant date. The fair value is determined using the Black & Scholes model, taking into account the

characteristics and conditions governing the granting of the instruments.

The cost of equity-settled transactions is recognized as an expense and is offset by a corresponding increase in

shareholder’s equity over a period that ends on the date on which the beneficiary becomes creditor of the grant.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of “fully diluted” earnings

per share but only when they have a dilutive effect when the exercise price is below the average share price of EVS ordinary

shares during the fiscal year.

2.21. Revenue from contracts with customers

Revenue is recognized based on the identification of the performance obligations in a contract and when such obligations

are satisfied.

As far as sale of equipment is concerned, this type of contract usually includes a single performance obligation for which

the revenue recognition occurs at a point in time when the transfer of ownership happens, usually at the delivery of the

equipment.

EVS also provides contracts that include licenses, cloud services or rentals that are only activated during a certain period

determined in the contract. According to paragraph 31-38 of IFRS 15, the Group determines that the performance obligation

is satisfied over time and, therefore, recognizes the revenue from these contracts accordingly.

Additionally, EVS provides contracts that are considered as projects including both installation, implementation services

coupled with the delivery of products or licenses. When these contracts have a value of more than EUR 500 K and are

spread over a period of more than 3 months, these contracts are therefore booked as service obligation completed gradually.

The contractual arrangements being linked to the creation of an asset for the customer, the revenue should be recognized

over time. This revenue is determined based on a percentage of completion of the contract. The Group has established that

the stage of completion, which is determined in proportion to the total time expected to complete this type of projects at the

end of the reporting period, is an appropriate method to estimate the revenue to recognize according to IFRS 15

Other services, sold separately or in combination with other equipment sale, are considered as a distinct performance

obligation and when the services are sold in combination with the sale of the equipment, the transaction price is allocated

based on the relative stand-alone selling price which is in general the separate price determined in the contract. In most

cases, the revenue recognition occurs over time as the customer simultaneously receives and consumes the benefits

provided by the group.

As regards to warranties, those are mostly assurance-type warranties and will continue to be recognized in accordance with

IAS 37.

2.22. Government grants

2.22.1. European Union grants

Subsidies from the European Union are recognized at their fair value where there is reasonable assurance that they will be

received and that all the conditions will be satisfied.

When the grant relates to an expense item, it is recognized as other income over the years necessary to match the grant

on a systematic basis to the costs that it is intended to compensate.

When the grant relates to an asset, the fair value is deducted from the carrying value of the related assets.

2.22.2. Investment grants

Investment grants are recognized when there is reasonable assurance that they will be received and that all the conditions

attached will be satisfied.

Investment grants are recognized after deduction from the assets concerned and they are automatically deducted in the

income statement from the depreciations of these assets.

2.23. Leases (EVS as lessee)

A contract is or contains a lease if it conveys a right to control the use of an identified asset for a period in exchange for a

consideration. To determine whether a lease confers the right to control use of a determined asset for a determined period

of time, the Group must evaluate whether, throughout the period of use, it has the right to:

- obtain substantially all the economic benefits from the use of the asset; and

- direct the use of the asset.

To determine the duration of the lease, any options for renewal or termination are considered as required under IFRS 16,

taking into account the probability of exercising the option as well as whether it is under the control of the lessee.

At the start of the lease, the Group recognizes a right-of-use asset and a lease liability.

Right-of-use assets (RoU assets)

The group recognizes right-of-use assets on the date of the start of the contract, i.e. the date on which the asset becomes

available for use. These assets are valued at the initial cost of the lease liability minus amortization and any depreciation,

adjusted to consider any revaluations of the lease liability. The initial cost of the right-of-use assets includes the present

value of the lease liability, the initial costs incurred by the lessee, rent payments made on the start date or before that date,

minus any incentives obtained by the lessee. These assets are depreciated over the estimated lifetime of the underlying

asset or over the duration of the contract if this period is shorter, unless the group is sufficiently certain of obtaining ownership

of the asset at the end of the contract.

Lease Labilities

The lease liability is valued at the present value of the rent payments that have not yet been paid. The present value of the

rent payments is calculated using the interest rate implicit in the lease if it is possible to determine that rate. If not, the

incremental borrowing rate is used, which represents the interest rate that the lessee would have to pay to borrow over a

similar term, and with a similar security, the funds necessary to obtain an asset of similar value to the right-of-use asset in

a similar economic environment.

Over the duration of the contract, the Company values the lease liability as follows:

- by increasing the book value to reflect the interest on the lease liability;

- by reducing the book value to reflect the rent payments made;

- by revaluing the book value to reflect the new appreciation of the lease liability or amendments to the lease.

Short term leases (duration of 12 months or less) and low-value leases (leases of assets with a value below EUR 5,000)

are expensed when incurred.

2.24. Leases (EVS as lessor)

The existence of a lease within an agreement is reported based on the substance of the agreement. Lease agreements are

classified depending on which party carries the risks and rewards associated with owning the asset.

2.24.1. Finance leases

A lease agreement is classified as a financial lease if it transfers substantially to the lessee the risks and rewards inherent

to ownership of the asset. When assets are leased out under a finance lease, these assets are derecognized, and the

present value of the future lease payments is recognized as an earned product. The difference between the gross total

receivable (lease and financing) and the value of the receivable is recognized as unearned finance income.

2.24.2. Operating leases

A lease agreement is classified as an operating lease if it doesn’t transfer substantially to the lessee the risks and rewards

inherent to ownership of the asset. When assets are leased out under an operating lease, the asset is included in the

balance sheet based on the nature of the asset. Lease income is recognized over the term of the lease on a straight-line

basis.

2.25. Research and development costs

Research and development costs are expensed when incurred except for the research and developments costs related to

new products or new technologies which are capitalized if those assets are subject to generate future economic benefits

and if the recognition criteria of IAS 38 are met. We also refer to note 2.9.2.

The fact that EVS operates in a market that is characterized by a rapid evolution of technologies implies that most of the

R&D costs are linked to the development of very specific features on existing solutions. This is to ensure our solutions are

consistently best in class and evolve with our customers’ needs. In such a context, it is generally difficult to evaluate and

predict the future economic benefit of a specific feature. In addition, for such granular developments, EVS cannot dissociate

the research phase from the development phase. As such, most of the development costs incurred in 2023 are considered

as operational costs and cannot be capitalized (criteria of IAS38 are not met).

In 2022, EVS has however identified 2 major developments that do meet the IAS38 criteria. These developments are very

distinct and will allow EVS to broaden its addressable market. Based on the following criteria, IAS38 is applicable:

- Research and development phase can be distinguished,

- An intangible asset is created following the development,

- Future economic benefit is demonstrated (return on investment analysis is done),

- Reliable cost tracking is present.

Consequently, the related costs have been recognized as intangible assets with depreciation over a period of 5 years starting

from the end of the development phase.

2.26. Income taxes

Income taxes for the period include both current and deferred taxes. They are recognized in the income statement except

where they relate to items recognized directly in equity.

EVS benefits from the following tax incentives related to innovation and research & development:

- Innovation income deduction

- Deduction for investments in R&D

- Exemption from withholding tax for R&D employees

Innovation income deduction and deduction for investments in R&D are deducted from the taxable base of EVS in Belgium

and consequently reduce the corporate tax paid by the Company. Exemption from withholding tax for R&D employees

represents a payment exemption of part of the withholding tax paid on salaries, which results in a reduction of the R&D

payroll costs incurred by the Company.

2.26.1. Current taxes

Taxes due for the period are calculated on the income statement of the group’s companies and are calculated according to

the rules laid down by the local tax authorities.

2.26.2. Deferred taxes

Deferred tax assets and liabilities are determined, using the liability method, for all temporary differences on the reporting

date between the tax base of the assets and liabilities and their carrying amount on the balance sheet.

Deferred tax liabilities are recognized for all temporary differences:

- except when the deferred tax liability arises from the initial recognition of a goodwill or the initial recognition of an asset

or a liability in a transaction that is not a business combination and that, on the transaction date, does not affect either

the accounting profit or the taxable profit or loss; and

- for the taxable temporary differences linked to interest in subsidiaries, in associates and in joint ventures, except if the

date on which the temporary difference is inversed can be checked and it is probable that the temporary difference will

not be inversed in the foreseeable future. Deferred income tax assets are recognized for all deductible temporary

differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit

will be available against which the deductible temporary differences, and the carry-forward of unused tax assets and

unused tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced if it is no longer probable that

sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the

asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted

at the balance sheet date.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset the tax assets and liabilities due

and if these deferred taxes concern the same taxable entity and the same tax authority.

2.27. Derivative financial instruments

EVS uses derivative financial instruments such as forward exchange rate contracts, options, or interest rate swaps to hedge

its risks of foreign currency fluctuations on its foreign currency transactions and its risks of interest rate fluctuations.

Derivative financial instruments that are either hedging instruments that are not designated or do not qualify as hedges are

carried at fair value with changes in value included in the income statement.

The fair value of forward exchange contracts is calculated by reference to current forward exchange rates for contracts with

similar maturity profiles. The fair value of the interest rate swaps is subject to a valuation by the counterparty. The method

of determining the fair value of these instruments is therefore of "level 2" type according to IFRS 13 "Evaluation of fair value".

Financial assets and liabilities are offset, and the net amount is reported in the balance sheet when there is a legally

enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and

settle the liability simultaneously.

2.28. Dividends

The dividends proposed by the Board of Directors are not recognized in the financial statements if they have not been

approved by the shareholders during the Ordinary Annual General Meeting. In case of interim dividends, they are deducted

from the reserves.

The dividends that are received from subsidiaries are recognized when the Group has a right to receive that payment.

2.29. Commitments relating to technical guarantee in respect of sales or services already

provided

EVS grants a 2-year technical guarantee on products sold subject to the general conditions of sale. The Company has

recorded a provision on the balance sheet to cover the probable costs relating to these technical guarantees.

2.30. Earnings per share

The group calculates both the basic earnings per share and the diluted earnings per share in accordance with IAS 33. The

basic earnings per share are calculated based on the weighted average number of ordinary shares in circulation during the

period. The diluted earnings per share are calculated based on the average number of ordinary shares in circulation during

the period plus the potential dilutive effect of the warrants and stock options in circulation during the period.

3. SEGMENT INFORMATION

3.1. General information

From an operational point of view, the company is vertically integrated with the majority of its staff located in the headquarters

in Belgium, including the R&D, production, marketing and administration departments. Therefore, the majority of investments

and costs are located at the level of the Belgian parent company. Resources securing the customer facing interactions such

as sales, operations and support profiles are primarily hired within the respective regions. The foreign subsidiaries are

primarily sales and representative offices. The Chief Operating Decision Maker, being the Executive Committee, reviews

the operating results, operating plans, and makes resource allocation decisions on a company-wide basis. Revenue related

to products of the same nature (digital broadcast production equipment) are realized by commercial polyvalent teams. The

company’s internal reporting is the reflection of the above-mentioned operational organization and is characterized by the

strong integration of the activities of the company.

By consequence, the company is composed of one segment according to the IFRS 8 definition, and the consolidated income

statement of the Group reflects this unique segment. All long-term assets are in the parent company EVS Broadcast

Equipment SA in Belgium.

The company provides one class of business defined as solutions based on tapeless workflows with a consistent modular

architecture. There are no other significant classes of business, either singularly or in aggregate. Identical modules can

meet the needs of different markets, and our customers themselves are often multi-markets. Providing information for each

module is therefore not relevant for EVS.

At the geographical level, our activities are divided into the following regions: Asia-Pacific (“APAC”), Europe, Middle East

and Africa (“EMEA”), and America (“NALA”). This division follows the organization of the commercial and support services

within the Group, which operates worldwide. A fourth region is dedicated to the worldwide events (“big event rentals”).

The company provides additional information with a presentation of the revenue by market pillar: “Live Service provider”,

“Live Audience Business” and “Big Event Rentals” for rental contracts relating to the big sporting events.

Finally, sales are presented by nature: sale of equipment and other services.

3.2. Additional information

3.2.1. Information on revenue by destination

Revenue can be presented by Market Pillar: “Live Service provider”, “Live Audience Business” and “Big Event Rentals”.

Maintenance and after-sales service are included in the complete solution proposed to the customers.

Revenue (EUR thousands) 2023 2022 % 2023/2022 Live Audience Business 90,050 71,439 26.1% Live Service Provider 83,278 66,869 24.5% Big Event Rentals -0,137 9,850 -100.0% Total Revenue 173,191 148,158 16.9%

3.2.2. Information on revenue by geographical area

Activities are divided into three regions: Asia-Pacific (“APAC”), Europe, Middle East and Africa (“EMEA”), and “Americas”.

Aside from them, we make separate distinction for the category “Big Event Rentals” which is not attributed to specific region.

Revenue (EUR thousands) APAC excl. events EMEA excl. events Americas excl. events Big event Rentals TOTAL 2023 revenue 30,260 86,721 56,347 -0,137 173,191 Evolution versus 2022 (%) 59.7% 28.0% 9.2% -100.0% 16.9% Variation versus 2022 (%) at constant currency 59.7% 28.0% 3.6% -100.0% 15.0% 2022 revenue 18,952 67,764 51,592 9,850 148,158

Revenue realized in Belgium (the country of origin of the company) with external customers represents less than 5% of the

total revenue for the period. In the last 12 months, the group realized significant revenue with external customers (according

to the definition of IFRS 8) in the United States for an amount of EUR 51.0 million (EUR 38.1 million in 2022) and in the

United Kingdom for an amount of EUR 19.7 million (EUR 9.6 million in 2022).

3.2.3. Information on revenue by nature

Revenue can be presented by nature: sale of equipment and other services.

Revenue (EUR thousands) 2023 2022 % 2023/2022 Sale of equipment 149,795 118,015 26.9% Other services 23,396 30,143 -22.4% Total Revenue 173,191 148,158 16.9%

Other services include advice, installations, project management, rentals, training, maintenance, and distant support. Work

in progress (“WIP”) contracts are included in both categories.

The decline in other services is a consequence of the absence of Big Event Rental revenue in 2023.

3.2.4. Information on important customers

Over the last 12 months, no external customer of the company represented more than 10% of the revenue (similar in 2022).

3.2.5. Maturity analysis of the order book

We start the year 2024 with the highest order book in the history of EVS at EUR 153.2 million, breaking a new record

(+11.3% YoY), of which:

- EUR 93.0 million to be recognized in revenue in 2024 (+8.3% YoY and excl Big Event Rentals)

- EUR 7.4 million to be recognized in revenue in 2024 for Big Events Rental (compared to EUR 0.0 million at the end of

2022)

- EUR 52.8 million to be recognized in revenue in 2025 and beyond (+1.9% YoY)

4. CONSOLIDATED COMPANIES, JOINT VENTURES, ASSOCIATES AND REPRESENTATIVE

OFFICES

NAME AND ADDRESS Year of foundation or acquisition Staff as of 31.12.23 Incorporation method ca(1)used Part of pital held as of 31.12.23 (2)(in %) Part of capital held as of 31.12.22 (2)(in %) Change in % of capital held EVS Broadcast Equipment Inc. 700 US 46 East Fllor 3 NJ 07004 Fairfield, USA 1996 37 F 100.00 100.00 0.00 EVS Broadcast México, SA de CV World Trade Center, Cd. De México, Montecito N° 38, Piso 23, Oficina 38, Col. Nápoles, Delegación Benito Juárez, D.F. 03810 México, MEXIQUE RFC: EBM 1106152TA 2011 4 F 100.00 100.00 0.00 EVS France SAS 6 rue Brindejonc des Moulinais Bât. A, F-31500 Toulouse Cedex 5, FRANCE TVA: FR-83449601749 2010 38 F 100.00 100.00 0.00 EVS Italia S.R.L. Via Milano 2, IT-25126 Brescia, ITALIE TVA: IT-03482350174 1998 3 F 100.00 100.00 0.00

EVS Broadcast Equipment Iberica SL Avda de Europa 12-2C, Edificio Monaco, Parque Empresarial la Moraleja 28109 Alcobendas, Madrid, ESPAGNE CIF: B85200236 2007 4 F 100.00 100.00 0.00 EVS Nederland BV Parnassungsweg 819 1082 LZ Amsterdam PAYS-BAS 2008 1 F 100.00 100.00 0.00 EVS International (Swiss) SARL Rue des Arsenaux 9, 1700 Fribourg, SUISSE TVA: CH-21735425482 2009 0 F 100.00 100.00 0.00 EVS Broadcast Equipment Ltd. Room A, @Convoy, 35/F 169 Electric Road, North Point, HONG-KONG 2002 12 F 100.00 100.00 0.00 EVS Broadcast Equipment Singapore PTE. Ltd. Level 8-9, The Metropolis Tower 2 11 North Buona Vista Drive 138589 SINGAPORE 2015 4 F 100.00 100.00 0.00 EVS Australia Pty Ltd. Level 8, 261 George Street Sydney NSW 2000, AUSTRALIE 2007 4 F 100.00 100.00 0.00 EVS Deutschland GmbH Hilpertstrasse 27, 64295 Darmstadt, ALLEMAGNE VAT: DE-289 460 223 2013 14 F 100.00 100.00 0.00 EVS Pékin - Bureau de Représentation 2805 Building One, Wanda Plaza, N°93 Jianguo Road 100026 Beijing, CHINE 2005 9 F N/A N/A N/A EVS Broadcast Equipment Middle East Ltd – Representative office ndShatha Tower, Office 09, 32 Floor, Dubai Media City, Dubaï, EMIRATS ARABES UNIS 2006 6 F N/A N/A N/A EVS Americas Los Angeles – Representative office 101 South First Street, Suite #404 Burbank, CA 91504, USA 2006 9 F N/A N/A N/A EVS Broadcast UK LTD Registered address: C/O Tmf Group 13th Floor, One Angel Court, London, EC2R 7HJ, UNITED KINGDOM Business address: Part of Ground Floor, Building B, Crowthorne House, Nine Mile Ride, Wokingham, Berkshire RG40 3GA 1998 27 F 100.00 100.00 0.00 EVS Netherlands BV Hercules 28, 5126RK Gilze, NETHERLANDS NL802646748B01 1994 57 F 100.00 100.00 0.00 MECALEC SMD SA Rue Nicolas Fossoul 54, B-4100 Seraing, BELGIQUE N° d’entreprise: BE0467 121 712 1999 28 E 49.50 49.50 0.00

(1) F: Full Consolidation, E: Equity method.

(2) Proportion of capital of those companies held by the companies included in the consolidated accounts and persons acting in their own name on

behalf of these companies.

5. INVESTMENT IN JOINT-VENTURES AND ASSOCIATES

(EUR thousands) 2023 2022 Investment in associates Opening balance as at January 1 1,922 1,920 - Disposals during the year - - - Acquisitions during the year - - - Results 185 313 - Dividends received and others -168 -311 Closing balance as at December 31 1,938 1,922

5.1. Investments in associates

5.1.1. MECALEC SMD SA

MECALEC SMD SA was founded on October 21, 1999, by SA MECALEC (50.5%, not directly or indirectly linked to EVS)

and EVS (49.5%). Its subscribed capital is EUR 200,000 with EVS share amounting to EUR 99,000. MECALEC SMD’s main

activity is the manufacturing and assembly of electronic boards using SMD technology. The registered office is based in

Boncelles, close to Liège (Belgium), 5 km from EVS headquarter. EVS acquired this interest to benefit from shorter delivery

times on orders for the assembly of electronic boards, and for potential synergies in R&D and reworking of the production

process. The net profit of MECALEC SMD in 2023 amounted to EUR 0.4 million. EVS represented 20,4% of MECALEC

SMD’s turnover in 2023.

The share of EVS in the 2023 results of MECALEC SMD amounts to EUR 185,000 and the share of EVS in MECALEC

SMD equity amounts to EUR 1,936,000.

(EUR thousands) Dec. 31, 2023 Dec. 31, 2022 Current assets 3,467 3,531 Non-current assets 914 892 Current liabilities -465 -540 Non-current liabilities - - Net assets 3,916 3,883 Share of associate’s balance sheet (49.5%) 1,938 1,922 Turnover 3,056 3,765 Net result 373 633 Share of associate’s net result (49.5%) 185 313 Dividends received -64 -64 (1)Other -104 -247 Carrying amount of investment 1,938 1,922

(1) Adjustment for final MECALEC 2022 financial statements received after publication

6. INCOME AND EXPENSES

6.1. Gross margin

(EUR thousands) 2023 2022 Revenue 173,191 148,158 Cost of sales -52,548 -49,314 Gross profit 120,643 98,844 Gross margin % 69.7% 66.7%

Consolidated gross margin was 69.7% for FY23, compared to 66.7% in FY22 (+3.0Pts) explained by positive impact of sales

price increases and a higher volume of software compared to hardware in certain solutions. This has resulted primarily in

improved margins for all our solutions. The increase in revenue compared to the relative fixed services cost also explains

the gross margin increase.

6.2. Research and development expenses

Research and development expenses amounted to EUR 31.8 million in 2023 versus EUR 26.3 million in 2022.

The intangible capitalized costs include mainly the internal personnel costs and external consultants’ costs related to the

development phase of two important projects that should secure future growth for EVS. These projects consist in software

that will be commercialized at the end of the development period. For one of the projects, the development period ended at

the end of the third quarter, leading to the commencement of depreciation over a period of 5 years. The expected return on

investment for the second project is scheduled for 2024, complementing the PlayForward strategy of the Group. The

progress of these internal developments is monitored frequently as to ensure the future economic benefit remains assured.

Other research and development costs remain in our operational spend, as IAS38 does not specifically apply for these

developments.

The detail of the total R&D spend is as follows:

(EUR thousands) 2023 2022 Gross R&D expenses 38,695 35,854 R&D capitalized as intangible assets -4,177 -7,080 Depreciation of intangible assets 563 - Benefits relating to R&D expenses -3,245 -2,507 R&D expenses, net 31,836 26,267

Since 2010, EVS considers a withholding tax exemption provided by the Belgian government to companies paying or

allocating compensation to individual researchers who are engaged in collaborative R&D programs according to some

criteria defined under section 273 of the Code of income tax in Belgium. In the presentation of the accounts, this amount

comes as a deduction of R&D expenses.

Since 2015, EVS also benefits from tax credits relating to R&D in France. This amount also comes in deduction of the R&D

expenses. In 2023, it amounted to EUR 0.3 million (EUR 0.4 million in 2022).

Starting from 2021, Axon NL benefits from tax credits relating to R&D in The Netherlands. This amount also comes in

deduction of the R&D expenses. In 2023, it amounted to EUR 0.4 million (EUR 0.4 million in 2022).

6.3. Complementary information about operating charges by nature

(EUR thousands) 2023 2022 Raw materials and consumables used -29,351 -25,461 Increase (+) / decrease (-) in stocks of finished goods, work and contracts in progress 1,627 1,154 Personnel expenses -64,183 -53,457 Depreciations -8,061 -6,686 Increase (-) / decrease (+) in amounts written off on stocks -0,100 -2,867 Increase (-) / decrease (+) in amounts written off on trade debtors 254 -224 Other Professional Fees -12,095 -7,371 Marketing & Communication -2,264 -1,943 (1)Other -16,778 -18,541 Total cost of sales, selling, administrative and research and development expenses -130,951 -115,396

(1) Includes various other operational expenses such as maintenance, utilities, small equipment, transportation costs and

T&E

Increase in personnel expenses is mainly driven by salary indexation coupled with higher average FTE in the period and

higher performance-related bonuses.

6.4. Post-employment benefit

Since April 1, 2002, EVS has implemented a defined contribution pension plan in accordance with the sectoral pension plan

regulations for employees in the metallic manufacturing sector (“commission paritaire 209”). It foresees the payment of an

annual premium equal to a percentage of the gross salary (submitted to the national office of social security) for each

employee. This premium is exclusively paid by the employer. The premium rate is set by the sector's collective agreements.

Premiums have evolved as follows:

In % Contribution rate 2008 to 2010 1.10% 2011 1.77% 2012 1.87% 2013 to 2019 1.97% 2020 2.29% 2021 2.29% 2022 2.29% 2023 2.29%

The plan is managed by “Monument” (previously “Integrale”). The financing policy is outlined in its annual report.

In addition, since, January 1, 2012, employees of EVS in Belgium are automatically affiliated to a second pension plan

subscribed with AG Insurance. EVS contributes to this plan (including management fee, life insurance, disability, and risk

waiver insurance premiums) at a rate of 3% of gross annual salary.

Until 2015 included, both pension plans were treated as defined contribution plans, and the contributions to these pension

schemes were recognized as an expense in the income statement as incurred.

However, on December 18, 2015, the Belgian legislation has been updated and clarification was provided on the minimum

guaranteed rate of return. Before December 31, 2015, the minimum guaranteed rate of return on employer and participant

contributions were 3.25% and 3.75% respectively. From 2016 onwards, the rate decreased to 1.75% and is annually

recalculated based on a risk-free rate of 10-year government bonds. According to IAS19, Belgian-defined contribution plans

that guarantee a specified return on contributions should be assimilated to defined benefit plans, as the employer is not only

responsible for the contribution payments but also must cover the investment risk until the legal minimum rates applicable.

The returns guaranteed by the insurance companies are in most cases lower than or equal to the minimum return guaranteed

by law. As a result, the Group has not fully hedged its return risk through an insurance contract and a provision needs to be

accounted for. The plans at EVS are financed through group insurance contracts. The contracts benefit from a contractual

interest rate granted by the insurance company. When there is underfunding, it is covered by the financing fund and, in case

insufficient, additional employer contribution is requested.

IAS 19 requires an entity to recognize liability when an employee has provided service in exchange for employee benefits

to be paid in the future. Therefore, pension provisions are set up. Obligations are measured on a discounted basis because

they are settled several years after the employees render the related service. A qualified actuary has determined the present

value of the defined benefit obligations and the fair value of the plan assets except for the multi-employer plan. These assets

are held by an insurance company. The projected unit credit method was used to measure the obligations and costs.

Assumptions were included on demographic and financial variables. The result of this calculation has then been extrapolated

to the multi-employer plan based on the contributions paid.

Changes booked in 2023 in the Belgian defined benefit obligation and fair value of plan assets were as follows:

2023 2022 In thousands of EUR Defined benefit obligation Fair value of plan assets Net defined benefit liability Defined benefit obligation Fair value of plan assets Net defined benefit liability As of January 1 10,203 -10,089 114 10,587 -8,762 1,825 Service cost 762 - 762 1,156 - 1,156 Administrative costs 28 28 28 28 Net interest expenses 383 -401 -18 120 -106 14 Sub-total included in profit or loss 1,145 -373 772 1,276 -78 1,198 Benefits paid -196 196 - -179 179 - Actuarial changes (assumptions) of which: Arising from changes in demographic assumptions - - 235 235 - 235 Arising from changes in financial assumptions - - -1,349 -1,349 - -1,349 Arising from experience adjustments 334 170 504 -367 -350 -717 Sub-total included in OCI 334 170 504 -1,481 -350 -1,831 Contributions by employer - -1,251 -1,251 - -1,078 -1,078 As of December 31 11,486 -11,347 139 10,203 -10,089 114

The fair value of plan assets is allocated to the following categories of assets: sovereign bonds & assimilated (51%),

corporate bonds (33%), real estate (9%), shares (5%) and cash (2%).

The principal assumptions used in determining pension obligations for the Group’s plans are shown below:

In % 2023 2022 Discount rate 3.35% 3.80% Future salary increases (incl. consumer price increases) 2.40% 2.40%

The following overview summarizes the sensitivity analysis performed for significant assumptions at December 31

. The

figures show the impact on the defined benefit obligation.

(EUR thousands) 2023 2022 Discount rate 0.25% decrease - 2,242 0.25% increase - -1,627 Future salary evolution 0.25% decrease - -616 0.25% increase - 650

The sensitivity analysis above has been determined based on a method that extrapolates the impact on the defined benefit

obligation as a result of reasonable changes in one key assumption occurring at the end of the reporting period, keeping all

other assumptions constant. These may not be representative for an actual change in the defined benefit obligation, as it is

unlikely that changes in assumptions would occur in isolation of one another.

In 2023 the changes in discount rate and future salary evolution do not impact the defined benefit obligation. Regarding

discount rate, the defined benefit obligation is based on either the minimum guarantee provided by the insurance company,

or the mathematical reserves on members’ contracts, considering that the minimum guarantee projected at retirement age

taking into account the probabilities of death and turnover is lower for all plans. Regarding future salary evolution, the method

used to determine the defined benefit obligation is the Projected Unit Credit without future premiums, which is therefore not

impacted by changes in salary increase assumptions.

The expected contributions to the plan for the next annual reporting period amount to EUR 1,322 thousand (EUR 1,197

thousand in 2022). The average duration of the defined benefit plan obligation is 17 years (18 years in 2022).

The following payments are the expected benefit payments from the plan assets for the upcoming ten years:

(EUR thousand) 2023 2022 Within the next 12 months 54 94 Between 2 and 5 years 513 194 Between 5 and 10 years 2,199 2,148 Total expected payments 2,766 2,436

No other post-employment benefit is provided to the personnel.

6.5. Financial revenues/(costs)

(EUR thousand)

2023

2022

Interest income on deposit

230

106

Interest charges

-920

-912

Exchange result

-966

1,393

Other financial results

985

400

Net Financial revenues / (costs)

-672

987

To limit its exposure to the US dollar, EVS Group has an active policy to cover the foreign exchange risk, as explained in

notes 26 and 27.

The functional currency of EVS Broadcast Equipment S.A. as well as all the subsidiaries is the euro, except for the American

EVS Inc. subsidiary, whose functional currency is the US dollar. The presentation currency of the consolidated financial

statements of EVS Group is the euro.

The net exchange result is mainly explained by the depreciation of the USD compared to EUR in the period (see also note

2.8.3 Exchange rates used)

Interest charges mainly relate to interest expense on building and vehicle leases as well as interest on the loan put in place

in 2020 to partially finance the acquisition of Axon.

Other financial results mainly represent interest income on financial leases provided to customers, interest revenue on short-

term investments and fair value of open foreign exchange contracts.

6.6. Other income and expenses

Other expenses mainly represent losses on trade debtors amounting to EUR 0.4 million (EUR 0.4 million in 2022).

7. INCOME TAXES

7.1. Tax charge on results

The tax charge for 2023 and 2022 is mainly made of:

(EUR thousands) 2023 2022 Current tax charge Effective tax charge -4,355 -1,525 Adjustments of current tax related to prior years 295 956 Deferred taxes Tax effects of temporary differences 455 -853 - Fixed assets depreciation -243 -253 - Intangibles (R&D investment deductions) * 1,027 -185 - Other intangibles -25 217 - Adjustments for IFRS 16 14 52 - Adjustments for IAS 19 -120 22 - Adjustments for the carry-over taxation for gains on building disposals 75 105 - Adjustments for IFRS 9 -25 -28 - Reported tax losses -1,763 -936 - Provisions - - - Reversal statutory gain on intangible transfer within the group 1,114 - - Others 401 153 Income taxes included in the income statement -3,605 -1,422

* see also note 6.2 for deductions relating to R&D investments.

Income tax expenses amount to EUR 3.6 million for the full year 2023, compared to EUR 1.4 million in 2022. The increase

is mainly explained by higher taxable profit (especially in Belgium) and the limitation on the deduction of tax latencies from

previous years in Belgium which leads to a lower amount of deferred tax asset that can be used during the period.

7.2. Reconciliation of the tax charge:

The effective tax charge of the Group obtained by applying the effective tax rate to the pre-tax profit of the Group, has been

reconciled for 2022 and 2023 with the theoretical tax charge obtained by applying the theoretical tax rate:

(EUR thousands) 2023 2022 Reconciliation between the effective tax rate and the theoretical tax rate Profit before taxes and share in the result of the enterprise accounted for using the equity method 40,469 32,701 Effective tax charge based on the effective tax rate -3,605 -1,422 Effective tax rate 8.91% 4.35% Reconciliation items for the theoretical tax charge Tax effect due to the carry-over taxation for gains on buildings disposals in the statutory accounts Tax effect on R&D investment deductions -1,261 -959 Tax effect of non-deductible expenditures 132 170 Tax effect due to the usage of tax losses (incl. subsidiaries) -1,071 -914 Tax effect on innovation deduction -5,243 -4,114 Tax effect on innovation deduction (catch-up from previous years) Tax effect of previous years adjustments (incl. subsidiaries) -295 -956 Others 24 160 Total tax charge of the group entities computed on the basis of the respective local nominal rates -11,319 -8,035 Theoretical tax rate 28.0% 24.6%

The tax charge for FY2022 included an adjustment of the previous year tax provision that was booked worth EUR 0.6 million

in the Belgian parent company.

Theoretical tax charge computed on the basis of the respective local nominal rates increased mainly due to the significant

increase of the profit before tax for most of the subsidiaries.

The amendments to IAS 12 International Tax Reform – Pillar Two Model Rules had no impact on the Group’s consolidated

financial statements as the Group is not in scope of the Pillar Two model rules as its revenue is less that EUR 750 million

per year.

7.3. Deferred taxes on the balance sheet

The sources of deferred taxes are as follows:

(EUR thousands) December 31, 2023 December 31, 2022 Assets Liabilities Assets Liabilities Buildings depreciation 2,322 2,075 R&D intangibles 5,329 4,301 Other intangible assets 146 942 Leases (IFRS 16) 158 11 144 10 Defined benefit plan provision 13 6 Accounts receivable impairment 57 78 Carry-over taxation for gains 575 649 Recoverable tax loss 1,865 3,627 Other tangible assets 12 132 Corrections on inventory 544 Total 8,112 2,920 8,288 3,676 Net booked value 5,203 11 4,622 10

Deferred taxes are booked “net” in accordance with the valuation rules of the Group because they relate to income taxes

levied by the same taxation authority and the authority allows the compensation. No valuation allowance is recorded in

relation to tax losses carried forward since it is probable that taxable profit will be available in the near future against which

the tax assets can be utilized.

The increase in deferred tax assets linked to R&D intangibles is driven by an increase in the R&D expenses capitalized

during the FY 2023 (23.6 million in 2023 vs 16.6 million in 2022) and depreciated over 3 years from a tax point of view.

The decrease in the recoverable tax loss is explained mainly by the consumption of recoverable tax latencies due to a

taxable profit in 2023 for all Group entities.

8. EARNINGS PER SHARE

The basic earnings per share are calculated by dividing the net profit and loss of the period attributable to the ordinary

shares, less the treasury shares, by the weighted average number of ordinary shares in circulation during the year.

The diluted earnings per share are calculated by dividing the net result of the period attributable to the ordinary shareholders

by the weighted average number of ordinary shares in circulation at the rate of the period, adjusted by the diluting effects of

the share options (warrants).

(EUR thousands) 2023 2022 Net profit 36,946 31,344 - attributable to non-controlling interests - - - attributable to equity holders of the parent company 36,946 31,344 2023 2022 Weighted average number of issued shares, excluding treasury shares 13,427,915 13,411,972 Dilution effect of the weighted average number of the share options in circulation 522,836 269,112 Weighted average number of fully diluted number of shares 13,950,751 13,681,084 Basic earnings per share (EUR) 2.75 2.34 Diluted earnings per share (EUR) 2.65 2.29

The diluted earnings per share does include (a) 187,000 warrants attributed in October 2020, of which 146,750 are

outstanding (154,250 in December 2022) with an exercise price below the share price and with maturity in October 2026,

(b) 158,600 warrants attributed in June 2021, of which 152,600 are outstanding (155,350 in December 2022) with an

exercise price below the share price and with maturity in June 2027, (c) 183,375 warrants attributed in September 2022, of

which 182,625 are outstanding (183,375 in December 2022) with an exercise price below the share price and with maturity

in September 2028, and (d) 198,900 warrants attributed in October 2023, all outstanding and with an exercise price below

the share price and with a maturity in October 2029.

9. DIVIDENDS PAID AND PROPOSED

Dividends are paid for issued shares less treasury shares at the payment date.

The Ordinary General Meeting of May 16, 2023, approved the payment of a total gross dividend of EUR 1.10 per share for

the year 2022.

For the year 2023, an interim dividend of EUR 0.50 per share was paid in November 2023. Full year dividend of EUR 1.10

per share will be proposed to the Ordinary General Meeting of shareholders.

(EUR thousands, gross amount) Coupon # Declaration date 2023 2022 Paid during the year: - Final dividend for 2021 (incl. exceptional dividend) (EUR 1.00 per share excl. treasury shares) 32 May 2022 13,402 - Interim dividend for 2022 (EUR 0.50 per share excl. treasury shares) 33 Nov. 2022 6,710 - Final dividend for 2022 (incl. exceptional dividend) (EUR 1.10 per share excl. treasury shares) 34 May 2023 14,780 - Interim dividend for 2023 (EUR 0.50 per share excl. treasury shares) 35 Nov. 2023 6,717 Total paid dividends 21,497 20,112

The latest dividend guidance issued in 2022 foresees total annual dividend distribution of EUR 1.10 per share in 2023 and

2024, subject to market conditions and to the approval of the Ordinary General Meeting of Shareholders:

In EUR per share per fiscal year 2022 2023 2024 Base dividend 1.10 1.10 1.10 Exceptional additional dividend 0.50 0.00 0.00 Total dividend 1.60 1.10 1.10

10. GOODWILL

(EUR thousands) CGUs TOTAL OpenCube SVS Axon Acquisition cost As of December 31, 2022 820 1,125 2,832 4,777 - Acquisitions - - - - - Sales and disposals - - - - As of December 31, 2023 820 1,125 2,832 4,777 Accumulated impairment As of December 31, 2022 820 1,125 - 1.945 - Impairment - - - - - Sales and disposals - - - - As of December 31, 2023 820 1,125 - 1,945 Net carrying amount As of December 31, 2022 - - 2,832 2,832 As of December 31, 2023 - - 2,832 2,832

Goodwill is measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized

for non-controlling interests over the net identifiable assets acquired and liabilities assumed. Goodwill is not amortized but

is reviewed for impairment, annually or more frequently if events or changes in circumstances indicate that the carrying

value may be impaired. The value in use of the Cash Generating Unit (CGU) is calculated from the present value of the

cash flows included in the business plan of Axon, in accordance with IAS 36.

10.1. Axon Group

By the end of 2023, management conducted an impairment test exercise on Axon Group as a CGU. The recoverable amount

(value in use) of Axon Group CGU was calculated by using following key assumptions:

- Cash flow projections (discounted cash flow method) based on financial budget approved by the directors covering a

five-year period.

- 10% annual growth in revenue (only for the first five-year period), supported by the recent actual revenue increases

since the takeover, as well as expected continued integration of Axon product portfolio into EVS offerings in future

years.

- Stable cost of goods sold (COGS) percentage, in line with historical data and kept conservatively flat over the projected

period.

- Discount rate of 14.0% (Weighted Average Cost of Capital), corresponding to pre-tax discount rate of 16.9% derived

from the post-tax weighted average cost of capital via an iterative method.

- Perpetual cash-flows for the period beyond the forecast period (five years).

- No growth for the terminal value.

The result of the calculations confirmed that no impairment needs to be booked at 2023 year-end. The amount by which the

unit’s recoverable amount exceeds the carrying amount is EUR 62 million.

The calculation of the value in use of Axon Group CGU is sensitive to (a) revenue and (b) discount rate. In this context,

management conducted sensitivity test by increasing and decreasing the sensitive factors by +/-20%. The outcome of the

sensitivity analysis does not influence the conclusion that no impairment needs to be booked at 2023 year-end.

11. OTHER INTANGIBLE ASSETS

(EUR thousands) Technology (DWESAB, OpenCube and Axon) Customer related Software licenses TOTAL Acquisition cost As of December 31, 2021 5,070 5,119 3,389 13,578 - Intangible assets in progress - 7,824 448 8,272 As of December 31, 2022 5,070 12,943 3,837 21,850 Accumulated amortization As of December 31, 2021 -3,174 -1,219 -3,072 -7,465 - Amortization -356 -731 -83 -1,170 As of December 31, 2022 -3,530 -1,950 -3,155 -8,635 Net carrying amount As of December 31, 2021 1,896 3,900 317 6,113 As of December 31, 2022 1,540 10,993 682 13,215 (EUR thousands) Technology (DWESAB, OpenCube and Axon) Customer related Software licenses TOTAL Acquisition cost As of December 31, 2022 5,070 12,943 3,837 21,850 - Intangible assets in progress - 4,148 377 4,525 As of December 31, 2023 5,070 17,091 4,214 26,375 Accumulated amortization As of December 31, 2022 -3,530 -1,950 -3,155 -8,635 - Amortization -356 -1,294 -70 -1,720 As of December 31, 2023 -3,886 -3,244 -3,225 -10,355 Net carrying amount As of December 31, 2022 1,540 10,993 682 13,215 As of December 31, 2023 1,184 13,847 989 16,020

The intangible capitalized costs include mainly the internal personnel costs and external consultants’ costs related to the

development phase of two important projects that should secure future growth for EVS. These projects consist in software

that will be commercialized at the end of the development period. For one of the projects, the development period ended at

the end of the third quarter, leading to the commencement of depreciation over a period of 5 years. The expected return on

investment for the second project is scheduled for 2024, complementing the PlayForward strategy of the Group. The

progress of these internal developments is monitored frequently to ensure the future economic benefit remains assured.

12. TANGIBLE ASSETS (LANDS AND BUILDINGS, AND OTHER TANGIBLE ASSETS) (EUR thousands) Land and buildings Plant, machinery and equipment Other tangible assets Assets under construction TOTAL Acquisition cost As of December 31, 2021 63,383 7,978 18,347 749 90,457 - Acquisition 856 1,064 1,437 494 3,851 - Sales and disposals - -523 -22 - -545 - Transfers -79 -63 142 - - - Other -137 211 -16 - 58 As of December 31, 2022 64,023 8,667 19,888 1,243 93,821 Accumulated depreciation As of December 31, 2021 -11,459 -5,985 -16,033 - -33,477 - Depreciations -3,409 -935 -1,227 - -5,571 - Sales and disposals - 523 - - 523 - Other 145 -209 2 - -62 As of December 31, 2022 -14,723 -6,606 -17,258 - -38,587 Net carrying amount As of December 31, 2021 51,924 1,993 2,314 749 56,980 As of December 31, 2022 (a) 49,300 (b) 2,061 (b) 2,630 (a) 1,243 55,234 (a) Sub-total Lands & Buildings 50,543 (b) Sub-total Other Tangible Assets 4,691 Mortgages and other guarantees Net carrying amount of fixed assets given as real guarantees 39,955 - - - 39,955

(EUR thousands) Land and buildings Plant, machinery and equipment Other tangible assets Assets under construction TOTAL Acquisition cost As of December 31, 2022 64,023 8,667 19,888 1,243 93,821 - Acquisition 370 2,851 2,899 90 6,210 - Sales and disposals - -1,364 - - -1,364 - Transfers -12 14 - -20 -18 - Other -108 -94 -14 - -216 As of December 31, 2023 64,273 10,074 22,773 1,313 98,433 Accumulated depreciation As of December 31, 2022 -14,723 -6,606 -17,258 - -38,587 - Depreciations -3,357 -1,608 -1,357 - -6,322 - Sales and disposals - 1,327 - - 1,327 - Other 128 90 4 - 222 As of December 31, 2023 -17,952 -6,797 -18,611 - -43,360 Net carrying amount As of December 31, 2022 49,300 2,061 2,630 1,243 55,234 As of December 31, 2023 (a) 46,321 (b) 3,277 (b) 4,162 (a) 1,313 55,073 (a) Sub-total Lands & Buildings 47,634 (b) Sub-total Other Tangible Assets 7,439 Mortgages and other guarantees Net carrying amount of fixed assets given as real guarantees 38,343 - - - 38,343

The acquisition value of the building was analyzed by component, with specific useful lives and residual values applied to

each component. Depreciation by component is provided for lifetimes ranging between 3 and 30 years with a total residual

value for the building of about 36% of the gross value excluding subsidies.

Production of the equipment manufactured and marketed by EVS does not require important tangible investment,

considering the assembly is partially subcontracted, notably to MECALEC SMD SA. Whenever possible, specialized work

is outsourced (i.e., sheet metalwork and manufacturing of integrated circuits).

The group policy is to finance its buildings through equity and through long term loans (see also note 19).

Tangible assets remain stable with the acquisitions of the period (mainly IT equipment and vehicles) being offset by the

depreciation of the period.

The carrying amounts of right-of-use assets, lease liabilities and the movements for the twelve months ended 31 December

2023 and 31 December 2022 is as follows:

(EUR thousands) Land and buildings Plant, machinery and equipment Other tangible assets Total Lease liabilities As of December 31, 2021 10,740 - 2,291 13,031 13,408 Additions 1,666 - 1,084 2,750 2,802 Disposals -1,278 - -22 -1,300 -1,300 Depreciation expenses -1,667 - -1,182 -2,849 - Interest expenses - - - - 569 Conversion differences & Other 193 - - 193 416 Payments - - - - -3,397 As of December 31, 2022 9,654 - 2,171 11,825 12,498

(EUR thousands) Land and buildings Plant, machinery and equipment Other tangible assets Total Lease liabilities As of December 31, 2022 9,654 - 2,171 11,825 12,498 Additions 400 - 2,873 3,273 3,310 Disposals - - - - - Depreciation expenses -1,831 - -1,247 -3,078 - Interest expenses - - - - 535 Conversion differences & Other -81 - - -81 -89 Payments - - - - -3,589 As of December 31, 2023 8,142 - 3,797 11,939 12,665

13. LONG TERM FINANCIAL ASSETS

(EUR thousands) Subordinated loans Other financial assets TOTAL Net carrying amount as of Dec. 31, 2021 - 404 404 - Refunded/converted during the year - -17 -17 - Acquired during the year - 119 119 - Others - 6 6 Net carrying amount on Dec. 31, 2022 - 512 512 Net carrying amount as of Dec. 31, 2022 - 512 512 - Refunded/converted during the year - -19 -19 - Acquired during the year - 7 7 - Others - -5 -5 Net carrying amount on Dec. 31, 2023 - 495 495

The other financial assets mainly consist of cash guarantees and are accounted for at fair value through the profit and loss

statement.

14. INVENTORIES

(EUR thousands) December 31, 2023 December 31, 2022 Raw materials 24,161 23,275 Finished goods 34,569 32,422 Goods purchased for resale 5,268 3,941 Total at cost 63,998 59,638 Cumulated amounts written off at the beginning of the period -30,852 -27,797 Additions/Reversal/use of the amounts written off, net -69 -2,807 Exchange rate difference -76 -248 Cumulated amounts written off at the end of the period -30,997 -30,852 Total net carrying amount 33,001 28,786

The increase of inventories during 2023 is primarily explained by the increase in the topline performance. EVS continues

the pro-active management of components to ensure a limited impact of our inventory on the working capital needs. A

careful balance is made to ensure customer delivery terms remain respected and to ensure the best possible component

prices. EVS started preparing, towards the end of 2023, the BIG Events coming in 2024, impacting the inventory temporarily

at year-end.

Inventories recognized as an expense during the period amounted to EUR 27.0 million (EUR 24.1 million in 2022). These

were included in the cost of sales.

Write-off movements on inventories, which amount to EUR 0.1 million in 2023 (EUR 2.8 million in 2022), are accounted for

as charges in the costs of sales. These write-offs concern technologically obsolete stock items, a range of products classified

as end of life at the end of 2023.

15. TRADE AND OTHER RECEIVABLES

(EUR thousands) December 31, 2023 December 31, 2022 Trade receivables 70,032 61,920 Write offs on receivables -2,789 -3,064 - of which ECL -816 -674 - of which other provisions -1,973 -2,390 Net trade receivables 67,243 58,856 Finance lease receivables 3,275 2,799 Deferred charges and accrued income 6,947 6,371 Other amounts receivable 4,900 5,195 Total other receivable, deferred charges and accrued income 15,122 14,365 Total 82,365 73,221

Trade receivables are non-interest bearing and are generally on 30-day terms. According to the group terms and conditions,

the unpaid invoices at their term could result in a 1.50% monthly interest rate.

Trade receivables evolve largely in line with our overall sales volumes. The increase is partially offset by a normalization of

the delayed invoice issuance situation at the end of 2022 that followed the implementation of our new ERP. The majority of

our trade receivables (i.e. 57%) is not due at year-end.

Allowances for doubtful accounts are calculated on an individual basis, based on an aging analysis of the trade debtors. For

the determination of the expected credit loss, EVS has applied the simplified approach and records lifetime expected losses

on all trade receivables. This amount is determined on a portfolio basis, based on a provision matrix that considers historical

credit loss experience. These allowances are booked in the "Selling and Administrative expense" line.

As of December 31, 2023, an amount of EUR 20.6 million (EUR 10.4 million on December 31, 2022) within trade

receivables was overdue with more than 90 days from which EUR 2.8 million are subject of write-downs following credit

quality of trade receivables. Movements of write-offs in 2023 and 2022 are as follows:

(EUR thousands) 2023 2022 Write-offs on trade receivables Value as of January 1 3,064 2,672 - Write-offs during the year 1,606 1,881 - of which Expected Credit Loss 142 224 - of which other provisions 1,464 1657 - Releases of write-offs during the year -1,881 -1,563 - Other - 74 Value as of December 31 2,789 3,064

The provision matrix that considers historical credit loss experience for the calculation of the expected credit loss is as

follows:

(EUR thousands) Trade receivables Expected credit loss Current <31 days 31-60 days 61-90 days >91 days Total Expected credit loss rate 0.45% 0.83% 1.41% 2.50% 3.64% Total gross carrying amount 44,085 4,851 730 1,823 10,431 61,920 Expected credit loss as of Dec 31 2022 198.4 40.3 10.3 45.6 379.7 674

(EUR thousands) Trade receivables Expected credit loss Current <31 days 31-60 days 61-90 days >91 days Total Expected credit loss rate 0.40% 0.94% 1.72% 2.00% 2.59% Total gross carrying amount 40,088 5,605 1,985 1,725 20,629 70,032 Expected credit loss as of Dec 31 2023 160.4 52.7 34.1 34.5 534.3 816

15.1. Finance lease receivables

(EUR thousands) 2023 2022 Finance lease receivables Within one year (current finance lease) 3,275 2,799 After one year but no longer than five years (non-current finance lease) 3,458 3,647 Total 6,733 6,446

(EUR thousands) 2024 2025 2026 After Future undiscounted lease payments 3,514 1,892 1,739 0

The group enters finance leasing arrangements for some of its equipment. The term of finance leases entered is maximum

four years. To cover risks related to ownership of the underlying asset, EVS requests customers to keep the equipment

insured against all risks of loss or damage for the full replacement value, and to assume full responsibility for any loss or

damage to the equipment during the lease period. EVS always retains title to the equipment during the lease period, unless

and until acquired by the customer.

The carrying amount of the conditional purchase options of the assets leased under finance leases amounts to EUR 0.2

million (EUR 0.3 million in 2022).

The interest rate inherent in the finance leases is fixed at the contract date for all the lease term. The weighted average

interest rate on finance lease receivables on December 31, 2023 is 8.0% (8.0% in 2022).

The financial revenues generated by the finance leases amount to EUR 0.3 million in the period (EUR 0.2 million in 2022)

and are booked in other financial income.

15.2. Contract balances

(EUR thousands) December 31, 2023 December 31, 2022 Contract assets 6,861 6,371 Contract liabilities 18,058 17,078

Invoiced advances and deferred income amounted to EUR 18.1 million at December 31, 2023, compared to EUR 17.1

million at the end of 2022. Liabilities related to advances received and deferred income are recorded on the balance sheet

under section other amounts payable, advances received, accrued charges and deferred income. Most of the revenue

included in the contract liability balance at the beginning of the period has been recognized in the current reporting period.

Revenues relating to work in progress amounted to EUR 6.9 million at December 31, 2022 (EUR 6.4 million in 2022).

Receivables related to work in progress are recorded on the balance sheet under other receivable, deferred charges and

accrued income.

16. OTHER CURRENT FINANCIAL ASSETS

Other current financial assets relate to options contracted to hedge commitments to staff under the Fund Option Plan

proposed by ING. These options have an average maturity of one year and are valued at fair value in the income statement.

17. CASH AND CASH EQUIVALENTS

(EUR thousands) December 31, 2023 December 31, 2022 Cash at bank and in hand 32,765 31,510 Short-term deposits and remunerated cash accounts 18,181 17,541 Total 50,947 49,051

The increase in cash and cash equivalents is mainly driven by the higher cash from operating activities of EUR 35.7 million

resulting from higher net profit and lower variance in working capital requirements compared to the previous year, mainly

on trade receivables (large volume of invoices were issued in late 2022 given a temporary hold of invoicing operations after

the Go-Live of the new ERP system). The increase in operating cash flow is partially offset by the net cash used in investing

activities of EUR -7.5 million linked to the investments in intangible and tangible assets (specifically in the internal

development of intangible assets) together with the net cash used in financing activities of EUR -25.9 million, mainly driven

by total dividend payment of EUR -21.5 million in the period.

Short-term deposits represent investments with an original maturity date or notice period of three months or less. At the end

of 2023, short-term deposits are mainly composed of investments in bonds floating rate notes fund.

18. OWNER’S EQUITY

18.1. Movements in issued capital

The company was founded on February 17, 1994, with a capital of EUR 30,987 consisting of 1,000 shares and has

developed as follows:

Date Description Number of shares Capital (EUR) 17.02.1994 Constitution 1,000 30,987 25.04.1996 Incorporation of reserves - 90,481 25.04.1996 Issuing of 100 shares at EUR 892 per share, 100 12,147 including a share premium of EUR 771 included in capital 77,095 1,100 210,710 06.06.1997 Incorporation of reserves - 242,440 06.06.1997 Issuing of 172 shares, at EUR 4,338 per share, 172 70,855 including a share premium of EUR 3,926 675,304 1,272 1,199,309 25.09.1998 Stock split by 2,000:1 2,544,000 1,199,309 14.10.1998 Initial Public Offering + 200,000 94,284 Incorporation of share premium 7,342,522 2,744,000 8,636,115 07.09.1999 Issuance of 119,952 shares for exchange with NETIA shareholders 119,952 7,197,120 Incorporation of reserves 166,765 2,863,952 16,000,000 25.05.2003 Treasury shares cancellation -63,952 - 2,800,000 16,000,000 24.02.2004 Capital reimbursement - -8,137,521 15.03.2004 Issuance of 15,000 shares after the exercise of warrants 15,000 480,000 2,815,000 8,342,479 09.05.2005 Stock split by 5:1 14,075,000 8,342,479 19.06.2006 Treasury shares cancellation -200,000 - 12.06.2009 Treasury shares cancellation -250,000 - 26.12.2018 Issuance of 702,024 shares 702,024 429,844 Capital on December 31, 2023 14,327,024 8,772,323

18.2. Issued capital and treasury shares

As of December 31, 2023, the issued capital of EVS amounts to EUR 8,772,323 and is represented by 14,327,024 fully

paid-up shares without designation of nominal value. EVS complies with the legal requirements relating to the capital (articles

7:177 to 7:229 of the Belgian Companies and Association Code).

As of December 31, 2023, 680,875 issued warrants with an average exercise price of EUR 19.82 per share are exercisable

until October 2029. From time to time, the company uses a portion of the capital for staff retention and motivation through a

plan of warrants.

The management estimates that the level of capital of EVS is sufficient, as shareholders’ equity represents 76.0% of the

total balance sheet at the end of 2023. Compared to 2022, shareholders’ equity increased by EUR 15.5 million.

The EVS Group strives to maintain a strong liquidity position and not to rely excessively on external financing. In addition,

the Group has a dividend distribution policy allowing its shareholders to be remunerated in a significant manner, without

compromising the Group’s cash position and its financial independence. In its decisions to finance or decide on the

distribution of dividends, EVS considers the overall level of its shareholders‘ equity.

18.3. Authorized capital