ALFACAM GROUP : N.V. – Financial Results 2012

Lint, Friday 29 March 2013

Profit & Loss

Operating income for the 2012 fiscal year amounted to € 42,5 million versus € 33,2 million in
2011 and € 44,5 million in 2010.
An important part of the turnover relates to the coverage of the Summer Games in London. Although the production of other events also contributed to the final results: the football competition in Saudi Arabia (January-May and September-December), WTCC European races (February-June), Cycling Tour of Turkey (April), European Football Championship in Poland and Ukraine (June-July), the Eurovision Song Contest in Baku (May) and the GCC Summit in Bahrain (December).
Other Operating income includes the sale of OB20 and OB37. A gain of € 1,5 million was
realised on this sale. No OB trucks were sold in 2011.
EBITDA has risen from € 6,0 million in 2011 to € 12,0 million in 2012. EBITDA represent 28% of the turnover, compared to 18% in 2011. The main reasons for the increase of the EBITDA are:
- An increase in turnover of 28%;
- Staffing costs remaining stable compared to 2011 (with a slight increase of 4%);
- Additional productions were covered by freelancers (with a 10% increase in costs);
- An increase of 14% of the general company costs due to the external rent of material and also consultancy fees in the search for potential investors.
The Board of Directors of Alfacam Group N.V. has made an analysis around the value of the real estate assets (land and buildings) of the group (owned by the entities Alfacam N.V. and Euro1080 N.V.). It was noted that the consolidated book value was no longer in line with the fair value of these assets and the Board has decided to take the necessary impairments on the respective assets which amount to € 9,8 million.
Depreciations and amortisations have gone up to € 26,0 for the year 2012. As a result EBIT is
€ -14,0 million versus € -8,0 million in 2011.
Due to the high level of debt the financial costs are very comparable to last year (€ 5,6 million). This includes the unpaid interest of € 1,0 million on the subordinated loans.
The net result is € -21,8 million for 2012 compared to € -13,9 million for 2011. A number of exceptional items are included in the 2012 results: an impairment on the buildings of € 9,8 million, a reversal of deferred tax assets of € 2,7 million, extra depreciation on the technical material of € 1,5 million and provisions for on-going legal conflicts for € 357k.

Balance sheet

On the balance sheet, all long-term debts related to repayments to the banks regarding the leases of OB-trucks and the building, were reclassified from long-term to short-term debts.
Alfacam Group also made impairments of € 9,8 million on its real estate assets. The shareholders' equity has become negative up to € -4,6 million.

These figures were established under the assumption of going concern. However, the continuity cannot be guaranteed today.
As communicated earlier, Alfacam Group NV and its Belgian affiliated legal entities have obtained judicial protection since 26 October 2012 as set out in the Continuity of Enterprises Act. The protection period has been extended until 5 May 2013 included. On 15 April 2013 the company has to submit a reorganization plan to the Court.
The negotiations with Hinduja Group in order to find a structural solution for the group are progressing in difficult circumstances. A final outcome is expected shortly. Negotiations are also held with other potential investors.
If the negotiations do not lead to a decision in the short term, the continuity of the company may be in danger.
As a result of the preparation of the final results it was noted that also for the subsidiaries Alfacam N.V. and Euro1080 N.V., an extraordinary general meeting will have to be organised in line with the application of article 633 of the Belgian Company Code. The extraordinary general meeting of Alfacam Group N.V. to decide on the continuity of this company as provided for in art. 633 BCC will take place on 12 April 2013.

Note of the auditor

The auditor confirms that his audit work is substantially completed.
The auditor, in accordance with the auditing standards of the Institute of Company Auditors, intends, unless the circumstances meanwhile modify, expressing a disclaimer of opinion given the state of the company is characterized by significant uncertainties, which may materially affect the financial figures mentioned in this press release. These uncertainties relate mainly to the business continuity (e.g. the ongoing negotiations with potential buyers, banks and other interested parties), and the content of certain balance sheet items (of which the value depends on the business continuity).
***

About Alfacam Group

Alfacam Group [EURONEXT Brussels: ALFA] groups de activities from Alfacam, EuroLinX and Euro1080 (EUROCAM MEDIA & FILM CENTER & HD1).

Alfacam primarily delivers services to TV stations and production houses. The company has the largest HD OB fleet in Europe. More information on www.alfacam.com .

Eurolinx is the sister company of Alfacam, offering wireless services to TV stations and production houses. More

information on www.alfacam.com/wireless .

Eurocam Media Center is a complex of 16 studio's dedicated to television, film and event productions and a

« business center ». More information on www.eurocammediacenter.be.

Contact

Sven Marinus, CEO - E sven.marinus@alfacam.com - T +32 3 460 39 30

Julien Tilkens, Communication Manager - E julien.tilkens@alfacam.com - T +32 3 460 39 30

PROFIT ANO LOSS ACCOUNT•

CONTINUING OPERATIONS

2012 2011 "000 € 000

Reverue 40.115 31.692

Ott'er operaurg income 2.427 1.470

Totalopll'allng l neome 42.542 33.162

Freelancers -5.473 -4.967

Personnel costs -8.387 -8.035

Depreclatlons -15.530 -13.102

Amortlsauons -10.492 -889

Ott'er operaurg expenses -16.637 -14.145

Totalopll'allng expenses ................: .: .!... -41.137

Opll'allng profit (loss) -13.977 -7.975

EBITDA 12.045 6.015

Flnanclallncome 20 54

Flnanelal expenses -5.606 -5.520

Profit(loss) from continuni g operations betoretaxes -19.563 -13.441

trcometax -2.850 -465

Net profit (loss)ftom continuing operations -22.413 ·13.907

DISCONTINUED OPERATIONS

Result ftom dlsc ontinued operations 536 83

NET PROFIT (LOS S) (consolidated company) -&!1Jr77 -13.824

Attributable to snarenolders or the gr01.p -21 .877 -13.824

PROFIT (LOSS) PER SHARE

Basic, for protit for the year atlribilable to ordinary equity nolders of tre parent

Basic,for protit n-om coninuing operations altribilable to ordinary equity nolders oltne parent

Dlluted,forprontlortt'e year attributable to ordinaryequityholders ofthe parent

Dlk..ted,forpronttrom cortirl.ing operations atbibilatle to ordinaryeqtit operadi)"IS attritùable to ordinarye tnolders of the parert

2012 2011

-2,54 -1,56

-2,54 -1,57

-2.54 -1,56

-2.54 -1,57

Consolidated statements of other comprehensive

2012 2011 "000 € 000

Net result -&!1Jr77 -13.824

Excnarge ditrererces on translation offoreign operations

Otner comprehensive i neome nEt oftax

Totalcomprlh nslve income

Total resual ttMbutable to snarenolders ortne Group

33

33

-&!1.844

-21 .844

-53

-63

-13.877

-13.877

* These figures were established under the assumption of continuity. However, the continuity cannot today be guaranteed.

ALFACAM • Fab,;ekstraat 38 -

CONSOLIDA TEC BALANCE SHEET *

ASSETS Goodwill lntangible assets

Property, plant & equipment Land and buildings Technical equipment

Other

Assets under construction lnvestment property

Other assets

Deferred tax assets

Non-current assets

Goods for resale Trade receivables Other receivables

Cash and cash equivalents

Current Assets

TOTAL ASSETS

LIABILITIES Share capitai Share premium Other reserves Retained earnings

Shareholder's equity

Subordinated loans

Financialleases

Long term financialloans Advances received Provisions

Other payables

Non-current liabilities

Cunreri portion subordinated loans

Currert portion of finandalleases

Currert portion oflong term finandalloans

Short term financialloans

Provisions Trade payables Advances received Other payables Current liabllities

TOTAL LIABILITIES

2012 2011

€ 000 € 000

258 258

133 219

52.683 75.266

13 059 23.986

38.802 49.509

822 1.638

o 133

385 1 077

231 264

o 2.656

53.690 79.740

72 310

4.114 11.729

2.154 1.564

2.273 791

8.613 14.394

62.303 94.134

22.126 22.126

2.276 2.276

3.240 3.207

-32.257 -10.380

-4.615 17.230

o o

410 172

o o

1.035 1.298 o o o o

1.445 1.470

8.802 7.758

15 012 25.511

7.353 8.193

22.292 16.964

685 914

7.895 7.092

171 1.854

3.263 7.14 7

65.473 75.434

62.303 94.134

* These figures were established under the assumption of continuity. However, the continuity cannot today be guaranteed.

ALFACAM • Fab,;ekstraat 38 -

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