EVS Broadcast Equipment SA (OTCPK:EVSBY) Q4 2022 Earnings Conference Call February 17, 2023 9:30 AM ET
Company Participants
Serge Van Herck - Chief Executive Officer
Conference Call Participants
Guy Sips - KBC Securities
Operator
Good day, and convey you for opinionated by. Welcome to nan EVS Broadcast Equipment Full Year 2022 Results Conference Call. At this time, each participants are successful a listen-only mode. After nan speakers' presentation, location will beryllium a question-and-answer session. [Operator Instructions] Please beryllium advised that today's convention is being recorded.
I would now for illustration to manus nan convention complete to your speaker today, Serge Van Herck, CEO. Please spell ahead.
Serge Van Herck
Thank you. Good morning, bully afternoon, bully evening to each of you attending this convention present today. Before I commencement talking astir nan schedule and our results, I'll time off nan level to Vero [ph] tin talk who tin talk astir our forward-looking statements.
Unidentified Company Representative
Yes. Good day, everyone. So invited to nan EVS 2020 Full Year Results Conference Call. As mentioned, we'll first spell done a position followed by Q&A, but we commencement this position by mentioning that adjacent to nan capacity of 2022. This position besides contains forward-looking statements. These statements are based connected our existent expectations and management's appraisal of nan situation we run in, but we do state that these statements are taxable to a number of risks and uncertainties that could lead to worldly different statements successful nan future. We will elaborate connected immoderate of those risks during this presentation, but location are besides different risks that could impact our statements that we don't explicitly remark on. These risks incorporate perchance exertion changes, marketplace requirements, value unit from title aliases immoderate different macroeconomic elements?
Serge Van Herck
Thank you, Vin. So let's spell to nan schedule of today. So we'll person first our business update. Afterwards, Viera will springiness america nan financial update. We'll talk astir our outlook, and past we'll person our conclusions, and we will end, of course, pinch questions and answers. So fto maine commencement present pinch a business update. So each successful all, we are rather happy pinch nan results that we person been achieving successful '22 and which show nan advancement that we are realizing pinch our Player Forward strategy. Remember that's a strategy that we person put connected insubstantial astatine nan extremity of 2019, opening of 2020, conscionable earlier [indiscernible].
So looking astatine markets and customers, we spot decidedly a maturation of revenues and bid intake. That's intelligibly showing that we person a affirmative momentum and that our maturation objectives are being achieved. A awesome accomplishment successful 2022 was, of course, nan signature of nan large tech statement 2022. I retrieve that nan contracts for much than 10 years pinch nan U.S. customer. We person delivered respective awesome large events, athletics events successful '22. We person besides implemented respective value increases to beryllium successful statement pinch ostentation arsenic we've seen that astir nan world. And past but not least, we've seen -- aliases we person received rather immoderate awards from different -- 4 different business dimensions successful '22.
On nan exertion side, we've been pushing further our artificial intelligence solutions and different environments. We've been introducing arsenic 4 leadership, our balanced computing approach, which is an reply to nan question, what astir nan plant. And past but not least, we've continued investing successful technologies for enabling our early growth. On nan firm side, we person besides been moving rather difficult connected respective topics. One of them was nan implementation of our EVA project, which has now enabled america to activate nan caller ERP system. Since 22, we've besides been further focusing connected ESG with, for instance, besides our first sustainability report. We have, of course, besides seen rather immoderate costs summation owed to ostentation connected nan remuneration broadside but besides connected nan constituent side. And we've seen that our spending patterns are backmost to pre-COVID levels and that this is, again, nan caller normal arsenic we speak.
We besides spot successful 22 nan first important results coming from our transmission strategy that we've group we've been mounting up complete nan past years. With nan acquisition of Axon successful May 2020, we spot successful '22 that is really starting to present nan expected results. So that's a very bully point to see, of course. We've been further moving connected nan members of nan activity team. So we'll travel backmost connected that later connected to show who is successful nan activity squad and why we've done that. And we've been further moving connected preparing nan early maturation by further expanding nan squad size astir nan world. And past but not least, connected nan shareholder side, we spot that we person nan maturation of revenues and bid intake. We spot that we person been recovering nan dividend promises of 2020 by expanding nan dividend complete nan past years. We are happy to opportunity that we demonstrated that we are capable to execute immoderate transactions successful a rather successful way.
And past but not least, pinch nan results of '22, we spot besides that we've been delivering a beardown net per share.
On nan adjacent slide, Velo [ph] will springiness america a short update connected nan main financial highlights.
Unidentified Company Representative
Yes. So this is very real. A short update connected nan highlights. We'll get into much specifications later on. But conscionable arsenic mentioned, arsenic Degas mentioning. So we vanished an bid intake of €218.8 cardinal successful twelvemonth 2022. That's a maturation of 46.5%. Even excluding nan large tech contract, nan maturation is still astir 13.5%. So that remains a very strong, beardown number. As mentioned, gross was besides really strong, beating decidedly 2021 pinch 7.7% summation to a full of €148.2 million. And besides our nett profit is thing that we want to telephone out. It's a nett profit of €31.3 million, truthful a 21% nett profit margin. It is simply a diminution compared to 2021, but it is decidedly successful statement pinch what we expected retired of nan twelvemonth 2022.
And finally, arsenic Serge Van already mentioned, we person been increasing our squad members successful 2022 to guarantee that we person capable different agleam resources successful spot for early growth. And truthful we ended nan twelvemonth pinch a full SPE number of 63, which is an FTE summation compared to nan extremity of '21 pinch 62 FT.
Serge Van Herck
Thank you, Vera. So going guardant successful our position here, a reference to our Playford strategy that we developed astatine nan extremity of 2019, which is afloat based, successful fact, connected nan customer and clip strategy. pinch a caridatious extremity of becoming nan number 1 solution supplier and online video industry. And we spot that thing is simply a semipermanent target that we want to achieve. And that is so meaning that we want to create realized maturation twelvemonth aft year, of course. So erstwhile we look connected nan adjacent descent successful nan advancement that we are making to want nonsubjective and that play guardant strategy connected nan different access, we spot nan advancement that we are making.
So going from a azygous institution successful 2015 to a group of companies and 25, we spot that we did rather a bully advancement pinch Axon. But connected different side, we are still seeing rather immoderate opportunities for further doing acquisitions. And while we did not do an further acquisition successful '21 and '22, we're now emotion rather assured that pinch nan successful integration of Axon, we should beryllium capable to do much of those successful nan future. The 2nd entree astir going from merchandise to solutions, location we consciousness that we are going successful nan correct direction. More and much customers admit nan solutions that we bring to nan marketplace and to show that, truthful we person been winning rather immoderate further references successful our industry.
Talking astir nan premium markets and besides being coming successful different marketers, while premium marketplace remains really our stronghold, and we've seen that pinch nan preamble of solutions for illustration Exego and further, we're leveraging connected our transmission partners. So we're doing a bully occupation and besides amended covering those different markets. Then looking to nan adjacent axis, which is trading successful CapEx mode only to trading an OpEx and CapEx together, we've seen rather immoderate bully progress. We decidedly spot that our SLA, our work level statement income is going up. We besides spot that pinch nan large tech 22 contractor, we decidedly demonstrated that we tin do that complete a agelong word of 10 years successful this case. And for on-demand services, truthful we person besides now a strategy disposable pinch EBS credit. So we are doing a bully occupation successful advancing connected nan X. When you talk astir exertion going from SDI to an IP full costs of ownership optimized media solution, they we really consciousness that we are making a important progress. And that is besides being demonstrated pinch immoderate ample deals for illustration pinch Fox, but besides an important statement pinch TDF, which is showing successful item that nan caller accumulation methods of nan early are being developed arsenic we speak.
When we look astatine nan adjacent magnitude going from EVS hardware only to soft tray connected commercialized of nan shelves successful nan unreality and a operation of Evander -- there, we consciousness that we're making really bully progress. Of course, pinch Extrano that has been launched successful nan cloud. But besides pinch nan preamble of our balanced computing attack successful '22, that is decidedly a bully progress. And we person besides integrated those unreality solutions and immoderate awesome events. So that demonstrates that we are connected nan correct way besides connected this dimension. Going from on-premise life accumulation to life anyhow cognition there, we consciousness we are astir there. All our customers are capable to prime if they do on-prem accumulation aliases distant operations. So location are decidedly a batch of activity has been done complete nan past years. of course, accelerated by COVID. And successful that respect, we consciousness that this magnitude is needed afloat accomplished.
And past but not least, immoderate being chiefly successful athletics and besides going much into news and entertainment. And there, we besides spot that we are proceeding much and much modernization contracts, which are transfers successful different environments. We person awesome contracts successful different news environments arsenic well. And we see, for instance, that nan RTBF, pinch nan elastic power room task that this is simply a going bully illustration that we are further extending besides yearly domains.
Going to Slide number 9, erstwhile we spot nan different problems that our customers are facing. And this is an overview of nan awesome trends arsenic measured by Devoncroft. We spot that we are really moving connected each of them. And you tin spot successful nan acheronian ruin nan ray blue, really we lend aliases really difficult we activity connected that. And we consciousness very assured that we'll beryllium moving connected nan correct topics. So you spot connected nan apical of maturation nan migration to IP, networking and contented delivery, that's decidedly 1 of nan astir important trends that we see. And that is 1 that we afloat clasp and afloat support and thief our customers to move forward. So successful that respect, we consciousness that to beryllium very good intact pinch nan awesome challenges that our customers are facing.
Going to Slide number 10. There what we spot otherwise is that our business is much linked to nan measurement of premium life productions than to nan broadcasters revenues, of course. So successful that respect, we spot that pinch nan world worth of media authorities further expanding year-after-year and pinch nan number of accumulation of T1 productions happening and that is decidedly thing that is playing into our cards. And that was besides demonstrated successful 2022 by that tech statement word that we person signed successful August of this year. Slide 11. Indeed, there's an overview of that large tech statement 22. I retrieve we'll beryllium talking astir nan statement for galore years arsenic it is simply a rather large statement for much than $50 million. So it has a large effect of those connected our bid book for nan future. And it is so a statement that we person signed pinch 1 of our awesome U.S.-based unrecorded work supplier customers, and that follows a awesome statement that is signed to person 1 of nan large tech players of our industry.
So we're rather happy that our customer was capable to opportunity that contractor arsenic automatically, they signed nan statement pinch america to upgrade and earthy their installed guidelines and that for nan early years, they cognize that they will beryllium capable to further trust upon our technologies and our service. It's besides an important measurement arsenic for nan first clip successful that LSP environment, we signed a rather ample woody for work level agreements, and that is so covering nan adjacent 10 years. So we consciousness that this is decidedly confirming our position arsenic a trusted exertion partner and that it provides assurance successful nan capabilities to present nan correct solutions complete nan adjacent decade. And it decidedly helps america to further summation our profitability for nan adjacent 10 years.
Going to Slide number 12. I'm happy to time off nan level to Benoit here.
Unidentified Company Representative
Thank you, Serge. Good day, everyone. So connected this Slide 12, you tin spot a fewer of nan iconic contracts that were signed during 2022. And successful fact, that confirms that nan position of property partners is not reserved conscionable for 1 statement pinch nan large tech contract, but it's besides distributed successful different regions of nan world and arsenic good for different solutions and for nan different marketplace pillars. You tin spot present that we person besides gained immoderate reference successful nan unrecorded assemblage business marketplace pillar. And immoderate of these contracts that you spot referenced present and that are much elaborate connected our website, successful fact, will not needfully beryllium achieved successful 1 year. They are dispersed complete respective years with, let's say, gross nickname that is dispersed each on nan different consequent years depending connected nan contract. So a batch of spot from our customers. because we person really besides progressed a batch pinch our solution.
In position of life section, we person this large contract, but besides we person for each our customers much and much LSV, which are deployed. And this SMB besides alteration our customers to activate different features arsenic extramotion, which is now being progressive connected much and much events. And of course, Liveseption has been astatine nan halfway of nan 2022 awesome events pinch caller workflows that we introduced, not only other motion, but besides galore reviews and different group of features that are enabled by nan LSM -- successful nan Media conception solution, we person introduced, and this is besides referenced connected our website, ViaCReatE arsenic a awesome milestone. And ViaCReatE is simply a unrecorded editing solution. So where, successful fact, nan editors tin really update nan content, conscionable a fewer minutes aliases moreover seconds successful immoderate cases earlier going live. We person seen arsenic good nan deployment of nan caller procreation of solutions successful nan mediaception domain.
In Western Europe, successful nan erstwhile year, it was chiefly successful NALA and based connected nan references that we sewage successful Nada [ph]. We are now besides spreading successful Western Europe. So we observe globally a ample marketplace traction for this modernization statement -- and we besides embed successful our solutions much and much partners truthful that we tin beryllium much applicable and we tin further thief our customers to person nan correct solution. So we besides deployed MediaHub, not only successful nan large events, but besides successful nan medium-size events that thief nan big broadcasters to administer nan contented to nan correct orders truthful that they tin use from different contented building successful different channels and past supply nan correct contented for nan assemblage to item what is happening successful each these events. In nan media infrastructure domain, which is, let's say, architecture astir nan erstwhile Accent merchandise -- successful fact, we person seen that Stada routing strategy is surely nan evolutive solution. We did triumph very ample contracts successful NALA.
We besides deployed nan statement that we won successful nan past. Cerebrum now is everywhere. It's really swapping a batch of competitors and is astatine nan halfway of elastic power room solution co-design pinch RTDF. If we move connected nan adjacent slide, past it's astir nan unreality and nan balanced computing. So successful 2022, we launched nan conception of balanced computing, which is really a hybrid measurement of operating betwixt on-premise information halfway and cloud. So that intends that EBS is surely progressive successful nan cloud, but conscionable for doing nan correct things. And successful fact, that besides creates an opportunity to summation somewhat nan SaaS and OpEx business for them because it's ever perceived that pinch cloud, we tin besides thief our customers to adopt caller business model. We besides observed successful 2022, a inclination for immoderate of our customers who really engaged a batch during COVID into nan cloud.
We spot them taking a measurement backmost because, successful fact, successful nan cloud, you person besides immoderate constraints successful position of connectivity, but besides successful position of costs. And truthful this conception of equilibrium computing, erstwhile you person immoderate portion of nan workflow operated on-premise and immoderate portion successful nan cloud, for illustration extramution, for example, is really appealing and considered arsenic nan correct shows by nan customers. So each these bully things for our customers successful position of nan advancement of our solution successful position of 3rd activity person been recognized arsenic good by respective awards. In fact, we received an grant astatine Status, which is simply a waste and acquisition show successful France successful 2022, which is named nan prefusion distribution.
We besides won 2 awards linked to information and reliability, nan Shield astatine IBC 22 and besides neuron protect astatine NAB22. So definitely, security, reliability are astatine nan halfway of EVS value. Not only nan products person been recognized, but arsenic good arsenic nan company, successful fact, we sewage 2 awards this bluish and awards because we received 2 awards of invention and group prime astatine each India business awards aliases location awards. We besides sewage a committee really for each our activity that we are doing successful position of ESG. And 1 of these awards is nan IABM Sustainability Award. We were very proud to person this from IBM.
And past but not least, successful Belgium, which is important for america because we want to support nan group that we recruited successful 2022, we besides sewage nan grant of apical employer 2023. So which recognized nan truth that EBS is really a very bully spot to work. So 2022 besides confirmed that Axon was a bully acquisition, successfully integrated. And nan 2 aspects are important. And it was confirmed and materialized pinch higher revenues than erstwhile Axon was unsocial higher publication to EBIT, multimillion contracts, Axon was decidedly not utilized to person truthful galore multimillion contracts successful a twelvemonth and surely not successful U.S. And Axon was not progressive successful nan large events. And this year, we person proven that acknowledgment to nan EVS marque support, imagination and value of products, EVS tin beryllium a trusted partner to deploy besides caller categories of products and solutions wrong these large events.
So these successes would not hap if we would not person nan caller kinds of relationships pinch transmission partners, and we created successful nan past years, this caller transmission partner programme wherever we want to move our transmission partners from opportunistic to sustainable partners. And this benignant of improvement successful position of business is really base fruit, particularly successful U.S. and particularly successful -- pinch media infrastructure, we person now much and much partners, which are certified typically to activity pinch Celeron and that intends that our partners tin thief our customers to prosecute into their translator based connected nan exertion provided by EVS. So based connected this, successful fact, we person beryllium had a batch of successes.
And now I will manus complete again nan level to Serge.
Serge Van Herck
Thank you, Benoit. So looking connected nan adjacent slide, we continue, of course, powering nan world's biggest laboratory sporting events. And remember, pinch nan arena rental business each 2 years, erstwhile location are specified large events. We person further gross coming from a rental of instrumentality and work provisioning. And that was, of course, besides nan lawsuit successful '22 pinch Beijing pinch nan World Cup but besides pinch Ronan and nan European Championship and unit. So each get successful events.
And again, adjacent to those events, we besides empower immoderate different awesome events, but that is being done done our customers, like, for instance, precocious nan Super Bowl arsenic well, of course. But those are otherwise moments wherever we tin show and show to nan remainder of our customers worldwide, our latest technologies -- and again, we've been very successful for doing that. So that will decidedly besides thief america to further prolong our maturation successful nan future. When we look to what happened successful '22, well, that was besides an important twelvemonth post-profit wherever we started to spell backmost to awesome waste and acquisition shows. So you cognize that 2 of our awesome waste and acquisition shows are enabled successful a and successful September successful Amsterdam astatine IBC. And here, we've been showing a fewer pictures from IBC and nan feedback that we got.
So we sewage a very affirmative feedback from our clients to travel backmost to our booth. We decidedly besides generating rather immoderate enthusiastic feedback. In this case, it was mainly, of course, attained by EMEA clients and transmission partners, truthful little by U.S. customers. We really spot that aft spell location was immoderate regionalization of those events. We spot that nan manufacture is rather positive, but location are tons of projects being discussed, and we spot that our pipeline is increasing nicely. We spot besides that nan media infrastructure, nan works regarding nan capabilities and media solution that we've been laterite stance of nan group. Don't forget, this is, successful fact, nan first clip that aft nan acquisition of Media infrastructure successful May 2020 that we really showed our integrated dose solutions astatine nan waste and acquisition show successful Europe.
And past but not least, we presented our balanced computing concept, nan 1 that Bernard conscionable explained and decidedly a conception that a batch of clients admit very much. When we look to nan main risks that we are still facing that scarcity of physics components and that net ostentation and constituent costs ostentation is still there. In '22, we've been fighting difficult against those 2 issues. So we've -- connected regular occasions pointed retired that we mightiness person problems pinch transportation of instrumentality to our customers. Fortunately, by nan bully activity of a batch of colleagues, we've been capable to support connected delivering our equipment, but we did widen our transportation play to 20 weeks. But for nan full year, we've been capable to vessel wrong those 2 weeks. So we were rather happy to beryllium capable to do that.
And connected nan ostentation side, of course, we saw ostentation connected nan costs and connected nan remuneration, of course. But we person tried to compensate that by further value increases. And we proceed to show nan business to make judge that our prices besides bespeak nan accrued costs of components and nan accrued costs of remuneration -- going to Slide number 21, that shows our activity team, and you spot 7 phases present connected this descent and pinch bluish astir them. So Viv, who joined america successful November 21, leader, who was promoted to EVP Operations task successful January; and Alex Return, who was promoted to our CTO besides successful January 22. So you spot present a rather a beardown team, I think, pinch rather immoderate outer but besides soul acquisition and which, successful my opinion, is afloat geared to alteration america to early maturation that we envision. So successful that respect, I'm rather happy pinch nan squad tone and nan complementarity of each nan colleagues present and nan activity team.
Going to Slide number 22, talking astir nan engagement survey. We are a exertion institution pinch a customer intimacy strategy. So nan main assets of our institution are, of course, our colleagues, our squad members and nan measurement that they are moving towards our customers and nan measurement they are processing caller technologies. So for us, it is so captious that nan engagement is further increasing. And here, you tin spot nan results of our engagement study that we do connected a yearly basis, and we measurement respective elements for illustration nan generic mobility astir EVs a awesome spot to work, what you tin spot connected nan near -- and past you tin spot that since 2019 up to 2022, we've ever accrued that accomplishment of that result.
And past '22, we ended astatine 91%, which is besides higher than nan comparison of different companies betwixt 500 and 1,000 employees. So we spot connected each those different dimensions anal increase, and that shows america that show america that we are doing nan correct point and that our colleagues consciousness rather assured and rather engaged.
Talking astir nan squad successful '22, we person besides further accrued our squad size rather rapidly, and we've been capable to return use from a very beardown marque reputation. So we're rather happy pinch nan advancement that we've been doing there. for '23, we decidedly expect that we will enactment astatine that squad size and that will further activity connected optimizing our results that we get retired of nan team, of course. So we consciousness that nan squad is there, that we request to further align nan magnets arsenic we telephone it, to summation ratio that we guarantee nan correct business priorities and that we create value, of course. That's what our nonsubjective is for 2023 and for nan years to travel up.
On ESG, connected nan adjacent slide, truthful definitely, this becomes much and much important for us. And we besides spot very bully advancement being done connected that side. We person precocious been capable to do our first Bilondo. So we person now a bully visibility connected nan results of what that means. And that will let america successful 23 to besides group nan objectives for nan years to come. We are decidedly besides making judge successful our R&D situation successful position that we usage much businesslike technologies and package languages successful that respect. We make judge that we responsibly root our components, our products and services. We make sure, of course, that nan well-being of our squad members are astatine nan halfway of our decisions, and we make judge that we instrumentality nan correct optimal governance.
2022 was besides nan twelvemonth that stay our first sustainability study for nan twelvemonth '21. And each those projects aliases each those efforts person been intelligibly recognized by different organizations, and we received nan surreal and besides by IBM, we received an biology sustainability award. So that decidedly shows that besides connected this aspect, we are starring successful our industry. So we're rather proud and happy of those results.
Going connected Slide number 25. There, you tin spot that we really attraction connected that, and we believe and show that committedness to our squad members, to our communities and to nan situation each time done applicable and engaging initiatives that genuinely make an impact. So that is decidedly thing that we unrecorded much and much each day. And we besides person -- we are besides supporting outer athletes for illustration Marin Simons, who is our ESG ambassador and who is simply a free diver, which is simply a Belgian free diver. So that brings maine to nan adjacent section important section of our position present this afternoon.
That's our financial update, and I will springiness backmost nan level to Gil.
Unidentified Company Representative
Yes. Thank you. So successful position of financial update, we'll first region astatine our apical statement capacity successful capacity that, successful our opinion, is simply a very beardown capacity for nan twelvemonth 2022 and 1 that makes america very proud. First of all, obviously, we person nan bid intake, arsenic I mentioned it already. So a full number of €218.8 cardinal successful contracts were signed really successful 2022. So it's an summation of 46.5%. But arsenic I mentioned, moreover excluding nan large tech contract, that is still a maturation of 13.1%. And which is comforting arsenic good is that we really spot a beardown bid intake successful each nan regions. So it's not predominantly successful 1 aliases 2 regions. It's really crossed nan world that we spot nan beardown bid successful sake.
When we look astatine nan revenue, truthful arsenic I mentioned, nan gross number of €148.2 million, truthful a maturation of 7.7%. But you person to remember, this is simply a maturation contempt a reduced large arena rental gross and contempt higher transportation terms. So we accrued our transportation turns hinting to a slowdown of revenue. And obviously, pinch our large arena rental being down, you cognize that nan integrated maturation that we created is decidedly there. That maturation is chiefly driven by North America. It's besides chiefly driven by MI, truthful nan erstwhile Axon acquisition and is besides driven by nan value increases that we implemented successful nan twelvemonth 2022. We calculated a normalized growth. Would we exclude really nan effect of Bar and which we exclude besides nan dollar impact, which evidently helped america successful 2022 arsenic well. That maturation is still up 6.3%.
Again, for us, a objection that our apical statement capacity and our gross capacity is decidedly demonstrating maturation numbers and is demonstrating that we are really increasing from an integrated constituent of view. And astir of all, I deliberation that gross capacity is precisely successful statement pinch marketplace expectations. So this 1 is really good managed. We still person our bid book successful our apical statement performance, which is besides a capacity wherever we're very proud of. You spot successful nan chart nan grade, nan acheronian grey barroom is nan short-term bid book and nan ray grey barroom is nan semipermanent bid book -- and truthful you spot really that for some short word and agelong term, we person a very important growth. So for instance, for 2023, nan secured sales, we moved up from €61 cardinal astatine nan commencement of 2022 to now €85 cardinal astatine nan commencement of 2023. So that's a maturation of 68.4% and besides our visibility connected nan early years. So nan semipermanent secured income is increasing importantly and is beyond actually, it's €55 cardinal to €9 million.
Obviously, influenced arsenic good by nan large tech contracts. But moreover excluding nan large superior contracts, that semipermanent visibility is increasing pinch 30%. So for us, these are very bully figures, demonstrating nan spot of our apical line. If we look astatine Slide 28, you spot really nan improvement of nan gross by pillar and nan geographical split. So you spot really that successful 2022, location was an acceleration of our gross successful nan LSP besides nan life work capacity server performance. It grew from 38% to 45%, pursuing upgrade rhythm that we person seen successful that area. If we look astatine nan LAP market, successful percentage, we spell down successful absolute worth is much aliases little level -- but that Menais already mentioning, this is an area wherever our gross is overmuch much task related and therefore, overmuch much dispersed complete time.
We are assured that agelong term, we will besides show maturation here, and we're assured to opportunity arsenic good that we will commencement nan twelvemonth 2023 pinch a full secured income of €42.3 cardinal already successful that laboratory market. If we look astatine nan geographical switch, nan information of EMEA has been precisely nan aforesaid arsenic past year. So EMEA is increasing on nan aforesaid lines arsenic easy arsenic successful total, keeping a 46% of our full gross successful EMEA. Obviously, you spot nan acceleration of our gross successful NALA; truthful increasing from 27% successful 2021 to 35% successful 2022. We spot that APAC is dropping a little, obviously, successful comparative performance. So going from 17% to 13%, chiefly because of a slowdown successful China, which is evidently still linked to nan COVID business successful 2022 successful that region.
But arsenic mentioned already, APAC besides had a very bully bid intake successful 2022. So we are beautiful assured that this business will reconstruct soon arsenic a region anyhow. And past successful nan end, you spot nan large arena rentals. So nan comparative capacity dropped from 10% successful '21 to 7% successful '22. So a flimsy driblet location connected nan afloat twelvemonth number successful statesman trend, which is evidently linked to nan underlying rentals that we do. So that was it connected apical statement performance. We person a 2nd descent connected profitability, precisely nan aforesaid concept. So you spot nan improvement complete nan past 4 years. First of all, we look astatine our gross margin. Our gross separator for 2022 ends astatine 66.7%, dropping really 2.9 points compared to 2021. There are a mates of elements that power that gross margin.
First of all, we made investments into resources aliases squad members successful our support and operations team. This is to make judge that we substance our growth, particularly successful regions for illustration North America and make judge that we proceed to present nan support that our customers deserve. So it's explaining 1.4 points of nan full gap. Then there's a operation of solutions. Media infra is taking a bigger information wide successful solutions, driving really a simplification connected nan mean separator -- gross profit separator that is realized. It is explaining 1.1 points. And past location is simply a one-off effect that is really a consequence of nan implementation of nan ERP strategy that we did successful October of this year. That ERP strategy forced america to instrumentality really a overmuch much granular follow-up of our inventory flow.
And retired of that much granular follow-up, it was decided that we wanted to constitute disconnected a portion of an effect successful our P&L, which is besides explaining 0.4-point -- truthful each these elements together, we person a affirmative constituent aliases antagonistic elements, but we person a affirmative constituent past arsenic well, which is evidently nan profit betterment that we effort to thrust wrong our solutions. It only generated 0.1 points, and it's thing that we will continuously attraction connected successful nan early because ideally, that number is simply a small spot higher. But I deliberation this is nan measurement really we effort to equilibrium off, yes, nan value increases pinch nan costs increases that we spot for illustration inflation, for illustration components increases, et cetera. So our gross separator is ending beneath marketplace expectations. It is ending beneath marketplace expectations pinch 2.2% and Matinas chiefly linked to, obviously, nan one-off effect successful inventory processes and astir apt an underestimation of nan operation of solutions.
If we look astatine nan operating expenses, those operating expenses see different gross and successful different expenses and besides e-stock bookings. They person been growing. They person been increasing up to nan level of €67.1 cardinal successful 2022, a full maturation of 14.3% and which is successful statement pinch nan guidance that we provided. It seems for illustration an awesome increase, but it's mostly linked. First of all, to governmental pinch spending patterns. So we are backmost to a caller normal connected expenses for illustration recreation expenses, expenses linked to our trading spend, et cetera, et cetera. We prosecute again astatine a very precocious level pinch our customers, some connected tract and some during events -- it is an important constituent for us. So a batch of those elements are explained by those postcode spending patterns.
Obviously, there's besides a portion linked to nan finance successful further squad members that we did successful 2022 to substance our growth, and there's a portion linked to inflation, not only ostentation of labour costs, but for instance, besides ostentation of our power prices. So we find it backmost successful our substance costs for our institution cars, but we find it backmost arsenic good successful our inferior costs for maintaining nan facility. Again, that operating disbursal is afloat successful statement pinch nan marketplace expectation.
Going connected to nan EBIT. We realized an EBIT of €31.7 million. It is simply a driblet of 4.5% successful Obviously, nan EBIT is simply a consequence of nan gross separator capacity and nan OpEx expenses together pinch nan gross and an EBIT separator of 21.4%, and this is wherever we ended beneath nan marketplace expectations by 5.3%. So I deliberation this is decidedly thing wherever we -- nan marketplace had expected america a small spot higher. Looking now astatine nan financial structure. So I deliberation it is important to mention that successful net per share, we really hit nan marketplace expectations. We realized an net per stock of €2.29 per stock -- it is simply a diminution compared to 2021. So 2021, we still realized €2.57 per share, a diminution of 10.8%. But again, it's successful statement pinch nan marketplace expectations and moreover supra marketplace expectations. And that is acknowledgment to an important nett profit that we were capable to generate.
So moreover if our EBIT capacity was possibly a small spot inception, we were capable to retrieve that successful nett profit. And basically, it's acknowledgment to 2 things. First of all, proactive rate guidance and speech complaint management, we were capable to make $600,000 further financial income compared to 2021, conscionable by ensuring that we proactively return attraction of our rate and our speech complaint -- and we besides had a one-off use successful taxes pursuing expenses that we paid successful 2021 that were worthy SEK0.9 million. So this has led to a bully nett profit capacity and a bully net per stock capacity arsenic well. We do constituent retired an improvement connected our nett moving capital. You mightiness opportunity that our nett moving superior accrued rather a batch comparing nan equilibrium expanse astatine nan extremity of 2021 pinch nan equilibrium expanse astatine nan extremity of 0.2. So we moved up from €54 cardinal to €81.2 million. So it seems impressive. It's a full summation of €26.9 million, but it is easy explained by 2 events.
First, nan investments that we do successful a proactive guidance of our inventories. As to make judge that we respect our transportation position towards our clients, that is simply a €2.8 cardinal increase. And past nan remainder of nan summation is linked really to summation waste and acquisition receivables. And why is that it wide that to? It is really because our trading is receivables. We accrued them pinch much than $15 cardinal successful December 2023, and this is an expected effect aft nan implementation of our ERP system. So pinch nan implementation of our European strategy successful October of this year, we had a artifact connected invoicing for astir 6 weeks, and this successful a 4th wherever we person nan highest measurement -- truthful obviously, it generated a batch of invoices during nan period of December that evidently are not owed yet by our clients by nan extremity of December. So it's decidedly a impermanent impact.
We expect to retrieve connected this successful first 4th of 2023, but we thought it was important to constituent retired anyhow. You besides still spot successful nan chart that overall, nan receivables do germinate successful statement pinch our wide measure volumes. So besides there, we're rather happy pinch nan advancement connected receivables contempt nan truth that nan ERP has forced america to hold immoderate elements successful nan 4th quarter. We sought to springiness besides an update connected nan intangible assets, truthful intangible assets that are capitalized nether IAS 38. So we launched successful 2022 for nan first clip an soul improvement of 2 important projects. They are rather stand-alone projects and our scheme to considerably lend to nan maturation of nan institution arsenic of 2024. You will spot that those 2 projects, we spent successful 2022, €7.5 million, precisely successful statement pinch our expectations.
And you will spot that for adjacent year, we expect to walk connected those 2 projects still $6.2 million. Those developments location followed up internally connected a very regular ground that's to guarantee advancement and result are successful statement pinch nan business plans that were designed -- nan costs are presently capitalized connected nan equilibrium sheet. You spot them nether nan intangible assets. And successful this area, you whitethorn expect a motorboat of a solution announcement location successful 2nd half of 2023. It mightiness beryllium successful vol, we are still looking astatine that planning, but this is what you whitethorn expect successful this area. When we spell to nan outlook, I deliberation this is still a very important conception arsenic well.
So first of all, nan outlook and nan guidance for 2023. As you mightiness person realized each moving from our apical statement performance, yes, we commencement nan twelvemonth 2023 pinch nan highest bid book successful history of -- it's a full bid book of €141.8 million. And retired of that -- €1.8 million, €85.9 cardinal is recognized -- is to beryllium recognized successful gross successful 2023. So that measurement is going up pinch 68% year-over-year. If you cognize that we person €85.9 cardinal someway already secured for 2023. You mightiness understand really that reduced that gross guidance for 2023 that is demonstrating a maturation compared to 2022 and a maturation without immoderate large arena rental income successful 2023.
Again, we're assured that we tin show integrated maturation there. And truthful our gross guidance for this twelvemonth is going to beryllium successful nan scope of €145 cardinal to €155 million. In position of costs, 2023 will beryllium nan twelvemonth wherever we stabilized our growth. So we person nary further maturation plans [indiscernible] nor is location an expected summation of our superior expenditure envelope. It is our ambition to show profitable growth, meaning that some gross and costs power will beryllium very important successful 2023, particularly besides fixed nan volatile macroeconomic environment. In position of dividend proposal, EVS will propose to nan mean General Meeting of Shareholders dividend connection astatine €1.6 per stock for nan twelvemonth 2022. This connection is successful statement pinch nan dividend argumentation that we issued earlier successful 2022, and it is consisting of a guidelines gross dividend of €1.1 per stock and an exceptional gross dividend of €0.50 per stock arsenic to retrieve nan twelvemonth 2020, nan co-ag [ph] here, obviously.
In November 2022, we already distributed an interim dividend of €0.50, which makes that there’s a remaining dividend to beryllium paid taxable to para-transitions and taxable to nan support of nan mean wide gathering of €1.1 per stock successful May of this year. That’s it for nan financial update.
Serge Van Herck
Thank you. So fto maine reason present so pinch our conclusion. So cardinal learnings for nan year. That is what I would for illustration to talk astir here. First is we spot nan manufacture further consolidating, and we decidedly person an ambition besides to participate further successful nan consolidation of course. We spot that nan large tech providers are connected nan place. They are some a partner, a exertion partner and a customer. So we spot that we person rather immoderate opportunities that are being generated by those large tech providers successful nan unrecorded accumulation environment. So that is besides thing we are happy to see. We spot that nan infrastructure is nan cornerstone of large changes, and we decidedly spot rather immoderate opportunities to further turn our gross and our profits successful nan future, acknowledgment to our media infrastructure business.
We spot arsenic a 4th taxable that nan business models are shifting from CapEx to OpEx aliases a operation of both, and we consciousness that we are good positioned to return use of that. We cognize that unreality is conscionable 1 of nan enablers and that pinch our balanced computing approach, we person nan correct solution and nan correct connection that we bring to our customers. And overall, we consciousness that definitely, we are connected bully track. And you tin spot that pinch nan various indicators for illustration nan bid and nan bid book for this year. So we are rather affirmative astir that.
When we spell to Slide number 37 and we look astatine nan attraction points for '23, we spot pursuing topics. We will proceed to present connected those ample multi-gas modernization projects that we person been winning complete nan past years. We'll proceed helping our customers who are still utilizing our erstwhile versions of XT work to modulation to our TV work earlier nan extremity of support that will hap astatine nan extremity of this year. We'll proceed to leverage our caller solutions to triumph much deals and 23. We'll proceed to grow our solutions offering some organically and done acquisitions and strategical partnerships. We'll corroborate contracts that are linked to early awesome events, and that's besides happened successful this year.
And past but not least, we besides attraction connected an improved costs power for nan company. And that brings maine to my past slide, Slide number 38, pinch nan conclusion. We consciousness that our play-forward strategy is decidedly starting to make nan expected results, and we spot that successful our gross maturation and successful nan maturation of our bid intake, of course, arsenic we listed, we scheme nary further investments successful our costs structure, and we decidedly want to make judge that successful '23, we person a bully costs power and that we further use from nan investments that we made complete nan past years. You've heard VLs that our gross guidance for '23 is betwixt 14 -- sorry, €145 cardinal and €155 million, which is rather a bully situation knowing that we are successful an moreover twelvemonth without large arena rental revenue.
And past but not least, that we target a dividend of €1.6 for nan twelvemonth 2022, which is taxable to nan support of nan mean wide gathering of shareholders, of course. So each successful all, we are rather happy pinch nan advancement that we made 2 -- we cognize we still person immoderate challenges successful beforehand of us, but we consciousness that we are connected nan correct measurement to execute our ambition to complete nan adjacent twelvemonth to further turn our marketplace stock and yet go nan number 1 successful our industry.
So, I deliberation that we are done present and past we tin return immoderate questions from nan audience.
Question-and-Answer Session
Operator
Thank you. We will now statesman nan question-and-answer session. [Operator Instructions] We will now return nan first question. It comes from nan statement of Guy Sips from KBC Securities.
Guy Sips
Are you proceeding me?
Serge Van Herck
Yes, we can.
Guy Sips
Okay. Okay. Yes, first mobility is connected nan bid book. So is it based connected nan ART book and nan accusation that you gave during nan position to estimate that this will beryllium 1 of nan first years wherever LSP and LAB will beryllium rather akin successful size. That's nan first question. And do you expect this maturation to beryllium front-loaded aliases alternatively back-end looked successful nan year?
Serge Van Herck
Okay. Thank you for those questions. So successful general, we expect that our maturation will travel from nan ALD market. So arsenic a marketplace will proceed to enactment a stronghold of our 1 we'll decidedly support affecting that market, but we cognize that nan early maturation will chiefly beryllium fueled by our NAB business. Then to travel backmost to your different mobility astir front-loaded aliases backloaded, I would opportunity we expect an moreover distribution of that -- of our revenues and our bid intake. So we spot nary circumstantial logic to deliberation it would beryllium much nan 1 aliases nan different one.
Guy Sips
And past an further mobility connected nan costs side. So an a batch of your costs are retired of your handset net costs and Fellows besides preferred -- truthful really judge reason that you are capable to support your costs nether power while astir of these costs are retired of your hands. And fixed that, yes, I deliberation nan marketplace is lagging a small guidance, you are very bully successful giving nan marketplace immoderate apical statement guidance. But could it beryllium adjuvant to springiness america immoderate guidance connected EBIT.
Serge Van Herck
I deliberation I'll reply this question. So we're not mentioning that location will not beryllium an summation successful our costs side. So you person a reality successful position of inflation. We person a reality arsenic good successful position of flow-through of squad members that we hired successful 2022 and 2023. And typically, we don't springiness costs guidance aliases an EBIT guidance yet successful nan first quarter. We thin to do that aft nan results of Q1. But I deliberation nan important denotation that we tin already supply there's nary further finance spend. So that's nan champion denotation that we tin springiness astatine this constituent successful time. Just a remark arsenic well. As for nan guidance, I deliberation historically, we've fixed a guidance connected gross and connected we thin to alteration that. So successful 2nd -- well, aft nan first 4th results, we thin to springiness guidance connected EBIT. We judge that, that measurement leads little to confusions. And truthful you whitethorn expect that from america aft nan results of Q1. But astatine this constituent successful time, it's conscionable immoderate indications of really this is evolving, and we will refine that guidance successful nan 2nd quarter.
Guy Sips
Thanks. This will beryllium very helpful.
Serge Van Herck
Thank you.
Operator
Thank you. We will now return adjacent mobility -- it comes from nan statement of Alexander Kramer from Kepler [ph].
Unidentified Analyst
Congratulations connected nan bully results to nan full team. I was conscionable wondering if you opportunity nary much CapEx than this year, does that mean besides that we're going backmost to nan normal of 0 capitalization of intangibles? Or do we return nan caller €8 cardinal a twelvemonth arsenic a somewhat a caller normal? And past nan 2nd mobility related to that would beryllium besides if that related task is launched successful 2024, I deliberation it was ne'er disclosed what it was exactly, but what would nan depreciation complaint beryllium connected those further capitalizations. I'll commencement pinch those questions, and possibly I person immoderate follow-ups.
Unidentified Company Representative
So Alexander, we are happy to reply those. So successful position of intangibles, I deliberation I mentioned successful nan descent connected intangible assets. So we don't expect immoderate caller projects to beryllium added. So we will instrumentality to nan 2 projects. We expect a flimsy simplification of nan walk connected those 2 intangible assets successful 2023. So we moved from 7.5 cardinal to astir €6.2 million. So it will somewhat decrease. But nary caller elements will beryllium added. So nary caller projects are to beryllium added. When it comes to depreciation rates, truthful we expect that depreciation will commencement arsenic of 2024 and complete a play of 5 years. And arsenic from 2024, we cannot -- we tin expect nan capitalization to spell backmost to 0.
Unidentified Company Representative
Yes, correct. Unless we person clasp awesome [ph].
Serge Van Herck
I would travel in. But I deliberation you're right, we would expect that to spell backmost to a overmuch little level.
Unidentified Analyst
Okay. And past I cognize you said you could not springiness immoderate guidance connected nan costs side, but conscionable wondering possibly really overmuch of nan – I mean, basically, assuming that location is nary large arena successful 2023 aliases astatine slightest less. So it’s each going to travel from LSP and Lab. Just wondering what – if you could springiness america immoderate separator quality betwixt nan 2 elements because obviously, LAP is now going to turn faster than LSP. So I was conscionable wondering what nan margins are? Or really do we look astatine that? And really overmuch besides connected nan apical statement is ostentation of your value increases and possibly erstwhile you spot nan timing of those value increases? And past connected nan bottommost line, really overmuch costs ostentation do we request to pencil in? I conjecture you already person a spot of a bully position connected that. All right. That’s it from my side.
Serge Van Herck
Okay. Well, regarding ostentation and value increases, our nett to do nan aforesaid point arsenic successful '22 that is implemented 2 moments of value increases. So we'll beryllium looking astatine what is nan existent ostentation of remuneration and costs components, of course, and we will effort to beryllium arsenic adjacent arsenic imaginable to those numbers. And we cognize that erstwhile we do a value increase, it takes a fewer months earlier it really gets into nan market, and it really influences nan orders that we get from our customers, but our purpose is to proceed adapting our pricing to bespeak nan increases successful ostentation that we are going through.
Unidentified Company Representative
I deliberation successful position of costs inflation. So yes, we are a institution operating connected nan Tacoma committed by 209 and that foresees an yearly correction for ostentation successful July of each year. We person expectations that, that correction successful July for nan Belgium labor will beryllium astir 7.5%. This is evidently still a guidance that we follow. We'll person to spot really that evolves successful nan adjacent fewer months, but that is what we return into account.
Unidentified Analyst
Okay. Just because nan value increases are lagging a spot nan costs inflations, obviously. I'm conscionable wondering, do we past -- because that would connote that nan gross separator and besides nan EBIT margin, which declined a bit. Is that nan correct presumption past to make?
Unidentified Company Representative
Our nonsubjective is it to compensate to make judge that we compensate costs of components and ostentation successful our prices. So we should amended from a gross separator constituent of view, nan separator by solution. Now will location beryllium an effect of alteration successful mix? Yes, we still expect an effect of alteration successful position of gross profit because we still expect nan infra to return a bigger information of nan page. So pinch axenic mechanical, I would say, broader than losing value powerfulness aliases losing gross separator model.
Unidentified Analyst
Okay. So correct that we tin expect a spot nan gross separator to travel down a bit? That's correct assumption?
Unidentified Company Representative
Marginally, yes.
Unidentified Analyst
Okay. All right. That's it. I will time off nan level to colleagues.
Operator
Thank you. We will now return nan adjacent question; David Vagman from ING [ph].
Q – Unidentified Analyst
Good afternoon, everyone. The first is connected 2023 and nan apical statement outlook. If I do a spot about, and possibly this is adjacent aliases an reply a mobility to opportunity that nan maturation that you expect, excluding bikes is much connected value summation than connected volume? And past a 2nd mobility but related besides to apical line, really do you position nan operation evolving? So looking astatine your bid book for 2023 betwixt laboratory LSP media successful France and really this could effect nan maturation target, you’ve alluded to that. So these are my let’s say, 2 first question. And past past constituent connected the, let’s say, besides connected nan bid book, ornatstate-of nan tailwind is nan migration of nan installed guidelines of Xpsrver to move into ectopic. And wherever do you expect, let’s say, astatine nan extremity of ‘23, nan migration to be? Thank you.
Serge Van Herck
Thank you, David, for those questions. So to reply your mobility astir nan apical statement growth, is that mostly linked to a value summation of measurement driven. We deliberation for nan moment, that will beryllium a operation of both. So location is an anticipation for this year. And indeed, this is an moreover year. So nary large arena inclination revenue, but nan apical statement growth, arsenic you tin spot it for nan infinitesimal is simply a operation of value summation and volume. But definitely, value summation has an important effect successful that. Then erstwhile we talk astir our installed base, we spot for nan infinitesimal that we person launched our existent procreation of Itera work successful 2018, truthful that’s rather immoderate years ago. We spot an acceleration past year. And for nan moment, we are seeing that we are location betwixt 30% to 40% of our installed guidelines that has been upgraded. So that still gives america immoderate room for doing further upgrades complete nan adjacent years. We person – astatine nan extremity of this year, nan extremity of support for our erstwhile type of nan XT server. So that should usually besides person definite customers to return a determination and to move to nan caller version. So we would expect to spot that upgrade an to proceed besides this twelvemonth – convey you.
Operator
We will now return questions. It comes from nan statement of Heinz ever from Investor AM [ph].
Unidentified Analyst
Yes. Hello, bully afternoon. And convey you for organizing nan convention call. Can you perceive me?
Serge Van Herck
Yes.
Unidentified Analyst
Okay. Firstly, truthful you expect a spot akin gross successful 2020 2022, but nan bid book for this twelvemonth is already 68% higher moreover without large past cremental location is rather a large discrepancy compared to past year's outlook successful relationship pinch nan bid book, wherever is that different exactly. And does it possibly mean that you look astatine nan existent guidance pinch a precocious confidence...
Serge Van Herck
Well, let's not hide that successful '23, we will not person nan large arena rental. So if you comparison nan numbers that we've fixed nan guidance of €145 cardinal to €155 million. You should comparison that to a number of €139 cardinal and 23 million, nan €139 cardinal is simply a fig pinch different large events. So you spot decidedly location is an summation successful those -- successful nan revenues. So it's not astatine nan aforesaid level, but definitely, we expect an increase. And do we consciousness assured astir nan guidance that we give, Yes, we consciousness assured astir that guidance. There is ever a level of unsecurity successful our business, of course. And therefore, we still hope, of course, that we could do much potentially, but that will only beryllium seen during nan year, of course. We are still cautious astir those projections, particularly successful nan opening of nan year. Don't hide that this is besides chiefly a project-based business. So nan visibility of nan certitude that we person to get that business successful needs to build passim nan year. But I tin only opportunity that we consciousness so rather assured astir nan gross guidance that we springiness astatine this moment.
Unidentified Analyst
Okay. The different mobility is, is it imaginable to stock pinch america what percent full payroll costs are arsenic portion of nan full operating expense.
Serge Van Herck
I deliberation you astir apt get much accusation successful nan yearly study astatine that constituent successful time. So I deliberation I would mention to nan anal study that will beryllium published shortly.
Unidentified Analyst
Okay. And I deliberation personification other asked a mobility that I had a spot of problems pinch nan line. You shared pinch america nan quality successful separator betwixt LAB and LSP?
Serge Van Herck
So that's so a KPI that we don't disclose. That is not what we want to do. I don't really travel it from that constituent of position either. We to-- we put each our solutions successful LSP and labs. So for us, that is thing that is not really triggered separately.
Serge Van Herck
Okay. And past question, what is your taxation complaint guidance for nan existent year?
Serge Van Herck
Yes. I deliberation we will astir apt beryllium successful a scope of max 10%, I think, pinch nan existent investments that we do successful assets and improvement and innovation, I deliberation if we correct our taxation complaint for 2022, which nan one-off correction and pinch still immoderate taxation latency from nan past, we are alternatively astir nan 10%.
Unidentified Analyst
Okay. Thank you for your answer.
Serge Van Herck
Thank you.
Operator
We will now return nan adjacent mobility -- it comes from nan statement of Guy Sips from KBC Securities.
Guy Sips
Yes, sorry, I person 1 further mobility connected nan timing of value increases. I deliberation successful 2022, we saw value increases successful February and September is that besides nan lawsuit successful 2023? And do you spot immoderate buying successful anticipation of imaginable aliases group already ordering because you expect value increases, what's nan lawsuit of nan guidance of your clients successful that scope?
Serge Van Herck
Thank you for those questions. So nan thought is so to use nan aforesaid timing arsenic regarding those value increases that is so our objective. Some customers, indeed, erstwhile they spot that nan value increases are coming are launching orders, orders that they whitethorn beryllium delivering successful 6 months, for instance, truthful they conscionable return advantage of nan labour clip to put orders that they mightiness different put later into nan year. So that is what we spot sometimes happening…
Operator
Thank you. We will now return nan adjacent question. One moment, please. It comes from nan statement of [indiscernible].
Unidentified Analyst
Just a mini follow-up connected nan Axon and nan cerebrum because I recovered it rather absorbing really you deploy that successful North America. I was conscionable wondering really is nan title location reacting to you taking nan marketplace share? And what were nan alternatives there?
Serge Van Herck
Yes. Thank you, Alexander, for that. So definitely, we travel pinch innovative solutions erstwhile was referring to intrastate, which is simply a routing solution – that is simply a rather innovative solution and attack and rather different to what immoderate of our competitors are providing and which is rather appealing to our customers. Our attack pinch Infrastrada is that we return our exertion for illustration Mirum and Lixirebrum. We package that together pinch switches aliases routers from, for instance, Arista aliases Cisco and that brings a rather innovative solution to nan market. When we comparison that pinch nan incumbents successful our manufacture and really they do that is they person been building their ain switches aliases ain routers. So they person a rather get different attack than what we person here. And we bring in, I would say, nan champion of breed from nan IT situation and our ain technology, and that brings rather immoderate advantages compared to competition. So that decidedly is simply a awesome differentiator what helps america to build upon nan capacity of immoderate large players for illustration Arista and for illustration Cisco and bring that into nan unrecorded video world. So that is really decidedly a awesome differentiation, and we’ve seen rather immoderate large American customers switching to this and so abandoning immoderate of their erstwhile suppliers that they – arsenic acold arsenic we understand, we’re happy to time off down them
Operator
We will now return nan adjacent mobility -- it comes from nan statement of David Backman [ph].
Unidentified Analyst
One much mobility connected nan capitalization of nan spending connected this project. How overmuch costs that's allocated to nan task should really moving into 2024, should beryllium moving back, let's say, pinch soul fundamentally unit affected to nan task and should beryllium moving backmost to nan P&L. So is it really that from a rate constituent of view, you cognize that we spot a measurement down successful disbursal -- rate disbursal beryllium nan CapEx aliases disbursal really going down €67 cardinal to €1 million, aliases actually, you've sewage immoderate travel backmost to nan P&L on...
Unidentified Company Representative
Yes. So I deliberation we expect to travel backmost arsenic of January 2024. Can that clip statement still move a small Yes, it tin still move a little. But successful principle, we foresee it complete 5 years arsenic from January 2024. So yes, it intends 1/5 of nan walk to beryllium depreciated successful nan ad. From a rate constituent of view, decidedly astatine that constituent successful time, fixed nan truth that we’re not talking astir further projects astatine this constituent successful time, location will beryllium nary rate – further rate travel into these finance activities So, yes, absolutely, equilibrium and run rate that liberates itself.
Serge Van Herck
Yes. And fto maine adhd to that, that immoderate of those resources that we usage connected those CapEx plans this twelvemonth and past twelvemonth will beryllium reduced because immoderate of that is besides pinch outer partners, which will, indeed, erstwhile those projects are finalized, will not beryllium continued to use that. So definitely, location will beryllium a capacity simplification successful truthful of our R&D section outer capacity will beryllium reduced astatine that infinitesimal successful clip erstwhile those projects are ending.
Unidentified Analyst
I don't cognize very clear. So location is simply a mini portion astatine of soul unit is income say, which was moving connected this project. And truthful from a P&L constituent of view. So we person D&A, nan depreciation connected nan capitalization; and arsenic good from, I don't know, engineers being allocated to projects astatine visiting, it's not much, let's say, nan soul worldly being affected reallocated to -- sorry, to projects which are expensed astatine nan development, which is explained.
Serge Van Herck
Yes. Well, that’s thing that we will further analyse you passim nan twelvemonth because besides for different R&D activities, we besides person immoderate outer support. So – but you’re correct that by nan extremity of nan year, we’ll person to determine aliases we’ll person to person a scheme intelligibly group retired to spot really do those soul engineers of EVS, really will they beryllium allocated. And that is past an effect for nan twelvemonth ‘24, of course.
Operator
We will now return nan adjacent question. It comes from nan statement of [indiscernible].
Unidentified Analyst
Yes. Apologies. Actually, I deliberation my manus should beryllium not person been up, but now that I person you connected nan line, conscionable connected nan -- to travel up connected nan David question. David's question. If I callback from nan past September call, it was 50% soul staffing and 50% outer staffing, conscionable to corroborate that.
Serge Van Herck
Yes, that is correct.
Operator
Thank you. There are nary further questions astatine this time. I would for illustration to manus backmost complete to nan speakers for last remarks.
Serge Van Herck
Yes. I deliberation we still person 1 mobility from [indiscernible] successful nan waiting line.
Operator
No problem. I will unfastened line. Michelin [ph]?
Unidentified Analyst
Okay. Good. Yes, I've been very unsuccessful pinch STAR 11, but convey you for opening. Most of my questions were already asked by my colleagues, but I person 2 smaller ones left. Will you beryllium generating nett liking income now that liking rates person gone up? And if so, really overmuch will that beryllium per year?
Serge Van Herck
Yes. So definitely, we will proceed what we instrumentality successful 2022. So it is simply a proactive rate guidance and wherever we will -- wherever we tin make interest, we will make interest. So we look -- truthful we perpetually show our position and successful liking rates and successful dollar exposure. So yes, that will continue. So we expect akin results successful 2022, I think, decidedly so. Will it moreover beryllium amended pinch nan existent improvement of nan liking rates Possibly. But honestly, I don't person really a forecast connected that astatine this constituent successful time.
Unidentified Analyst
Okay. And I do still person a mobility connected immoderate of nan things that were asked earlier. Of course, costs power is thing that tin beryllium challenging pinch indexation of 7.5%. With respect to nan workforce, it was 613 astatine year-end. And according to my calculations, if you support that level this year, past you'll person maturation of 4% versus nan mean of past year. Is that a correct calculation?
Serge Van Herck
I deliberation much aliases less, yes, that should beryllium much aliases less...
Unidentified Company Representative
Right.
Unidentified Analyst
Okay. So immoderate nan indexation, you person 4% much mean labor and past nan indexation for nan Belgium portion of nan workforce...
Serge Van Herck
Correct.
Unidentified Analyst
Okay. That's it from my side. Thank you.
Operator
There are nary further questions astatine this time. Please continue.
Serge Van Herck
Okay. Well, past I’ll convey you for your participation. As you tin see, we deliberation that we are good underway to present upon our committedness of getting nan institution backmost into maturation mode. We show now that, that is decidedly going successful nan correct direction, particularly connected our apical line. We cognize that our adjacent situation is besides make judge that our bottommost statement is besides showing that nan inclination line. So getting besides backmost into maturation mode connected our bottommost statement is thing that we will beryllium focusing connected much and more. But overall, we’re rather happy pinch nan progress, and we’re rather affirmative astir nan future. We deliberation that each nan indicators look positive. Feedback from our customers is rather positive. We consciousness that we’re besides gaining marketplace stock compared to definite important competitors.
And truthful each successful all, we consciousness rather affirmative astir our chances for supporting that further maturation into nan adjacent year. And having said that, I’m thanking you for attending this convention today.
Operator
That does reason our convention for today. Thank you for participating. You whitethorn each disconnect.