2014 Half Year Results

VISLINK

Live Video that Captivates

Overview & What We Do – John Hawkins

Financial Review – Ian Davies

Operational and Strategic Review – John Hawkins

Question and Answer Session

Appendices:

• Our Business

• Financial Information

Overview

• The broadcast market has been challenging for our hardware business. • We have taken timely action to reduce costs.

• We have also seen an improved trading trend, with the order book strengthened in Q2.

• Our MSAT satellite communications system has achieved WGS certification. This provides significantly improved opportunities for revenues effectively doubles the size of the available market.

• Strategic partnership with TVU Networks gives us the unique ability to combine best-in-class

transmission solutions with a powerful back end distribution, delivering end to end video solutions. Software

• 18 March 2014 - Acquisition of Pebble Beach Systems (PBS), a leading provider of automation, channel in a box and content management solutions for broadcasters and satellite and cable operators for a net consideration of £9m.

• Post acquisition Pebble Beach Systems has traded ahead of management expectations. Post Period End

• Tuesday 2nd September – Announced new OEM agreement with Harmonic Inc. (Nasdaq: HLIT), a worldwide leader in video delivery infrastructure for emerging television and video services. The partnership will enable Harmonic to sell packages, integrated with PBS systems, to the international broadcast market.

• The partnership will also result in Harmonic placing orders valued at £2m in 2014 and sees Harmonic

Pebble Beach Systems’ solutions control

…Content Acquisition, Management and Delivery ….for broadcasters worldwide

Multi-Channel Control Content Acquisition Business Management Content Delivery Final Standings Customer Benefits:

SOFTWARE SOLUTIONS

FINANCIAL REVIEW

IAN DAVIES

Results Overview

2014 2013

£m £m

Order intake 33.3 33.6

Revenue 27.1 28.0

Adjusted operating profit1 1.7 2.0

Adjusted operating margin1 6.3% 7.2%

Adjusted profit before tax1 1.7 2.0

Reported operating profit and profit before tax 2.0 1.4

Adjusted earnings per share1 1.2p 1.8p

Reported earnings per share 1.7p 1.3p

Cash generated from operating activities 5.5 1.6

Net (debt)/cash (0.3) 7.2

1_{Adjusted to exclude the amortisation and impairment of goodwill and acquired intangibles, and other non-recurring costs.} Results for the six months ended 30 June 2014

Operating Profit Bridge

H1 2014 adjusted operating profit £1.7 million (H1 2013: profit of £2.0 million) Overall gross margin up by 1.2pts to 42.8%

Investment in New Technologies

H1 FY13 H2 FY13 H1 FY14

N BV Cap itils ed /Am o rtis at ion Million s

Capitalised Development Costs

Capitalised Development Costs Amortisation of Development Costs NBV Development Costs

Cash Flow and New Facility

• New £10.0 million debt facility in March 2014 • £7.0m utilised to acquire Pebble Beach

Systems in H1 2014

Order intake of £33.3m Revenue of £27.1m Book to bill of 1.23

Adjusted operating profit of £1.7m

Adjusted operating profit up 3.4% on a constant currency basis

Group generated £5.5m of cash, with Net Debt of only £0.3m

Adjusted Earnings per Share of 1.2p*

Financial Summary

*Adjusted operating profit is operating profit from continuing operations before the amortisation and impairment of acquired intangibles, and other non-recurring costs. Adjusted earnings per share is calculated on the same basis after taking account of related tax effects.

(£5.1m) (£3.3m) (£1.9m) £1.7m £1.4m £1.7m £2.0m £2.3m £1.7m Adjusted Operating Profit

2010 H1 2010 H2 2011 H1

OPERATIONAL AND STRATEGIC REVIEW

JOHN HAWKINS

HARDWARE TECHNOLOGY

Broadcast, Security and Defence

Broadcast

• Against the background of a low opening order book and a relatively low order intake in Q1 FY14, hardware revenue improved towards the end of the half.

• Action to reduce costs in the hardware business and the benefits of this will be seen in the second half.

• We have retained our strong engineering base and channels to market, which are also being strengthened by our strategic partnerships.

Surveillance, Security and Defence

• Our hardware surveillance business continues to see good opportunities.

• Early in 2014 we won a multimillion pound contract in public safety in the UK which will significantly contribute to our operating profit in the financial year 2014.

• The long decision cycles has resulted in some key surveillance hardware opportunities moving into the second half of the financial year.

• Amplifier Technology earn targets were not achieved, however, the Group sees good opportunities.

HARDWARE TECHNOLOGY

VISLINK and TVU Partnership

ACQUISITION OF PEBBLE

BEACH SYSTEMS

SOFTWARE SOLUTIONS

Pebble Beach Systems

Market-leading software products,

• Automation products suitable for multichannel playout as well as high pressure live programming such as news or sports.

• Supporting new technologies such as IPTV and interactive television.

• Clients include TV Globo Brazil, MBC UAE, Fox News, Banderaintes Brazil, OSN UAE, Viasat UK and ZDF Germany - installations in over 60 countries.

Total consideration of £14.9m

• £12.9m in cash and £2.0m in new Vislink ordinary shares.

• Purchased with in excess of £6.0m cash on the balance sheet.

• Resulting in an effective net consideration of £9.0m.

Strong performance post acquisition (18 March 2014)

• Revenue of £3.1m in three and a half months.

• Resulting in profit of £1.1m.

• Ahead of management expectations.

SOFTWARE SOLUTIONS

New Agreement with Harmonic Inc

• New OEM agreement with Harmonic Inc announced – Tuesday 2nd _September.

• Harmonic (Nasdaq:HLIT) is the worldwide leader in video delivery infrastructure for emerging television and video services. The Company’s production-ready

innovation enables content and service providers to efficiently create, prepare, and deliver differentiated services for television and new media video platforms.

• The agreement will enable Harmonic to sell, via a single point, a series of

integrated packages designed to deliver premium channel in a box solutions with automation, to the international broadcast market.

• The packages, which combine the benefits of Pebble Beach Systems’ market-leading Marina next generation automation system with Harmonic’s widely adopted integrated channel devices.

• Harmonic Inc and Pebble Beach Systems will also work closely together to develop bespoke solutions and cross sell each other’s products.

SOFTWARE SOLUTIONS

New Agreement with Harmonic Inc

Deal structure

• A three year agreement with the ability to extend for a further two years.

• As part of the deal, Harmonic Inc will place orders valued at £2.0m in 2014 to secure product for onward sale in its integrated packages.

• This will also result in a positive cash flow in H2 FY14.

Investment

• In parallel with the strategic supply partnership, Harmonic Inc has decided to acquire four million shares in Vislink Plc at 50 pence per share.

Strategic Rational

• The agreement is another key strategic partnership for Vislink Plc and reinforces its strategy of moving into Software and providing Product Leadership and

Complete Customer Solutions across its businesses. The agreement will also accelerate the market insight and channels to market of two successful groups.

2011

Restructuring and cost reduction with margin improvements Improve service & support Return to quarterly profits Acquisition of Gigawave 2012 Profitable organic growth through focus on specific geographic regions Partnerships to expand vertical exploitation of technology 2014 Revenue of £80m Minimum adjusted operating profit margin of 10%

Move into Software Develop recurring revenue 2013 Bolt on acquisition Strategic partnerships Cellular & IP products launched Maintain focus on organic growth Develop recurring revenue

Surveillance, Security and Defence - Target Revenues > 25%

Acquisitions and Partnerships – To support strategy

Expansion of Available Market

Core

Broadcast

£230m*

Core

Surveillance

£200m*

Broadcast

Cellular

£50m

Play-out

Automation

(inc. CiaB)

£200m

Mar

gi

ns

Outlook

Our markets continue to be challenging, however Vislink enters the second half of 2014 buoyed by a solid order book and pipeline, with the Group set to benefit from:

• New software business performing strongly.

• WGS certification for MSAT.

• Multimillion pound contract in UK public safety, further delivery in H2.

• New OEM with Harmonic agreement with orders placed in H2.

• Move to AIM (January 2014), easing the financial burden of making acquisitions.

2014 is a transitional and transformational year for the Vislink Group, with the acquisition of our software division and the announcement of the strategic agreement with Harmonic Inc. As the proportion of our business coming from higher margin software becomes more significant, the target revenue needed to generate our long noted operating profit target will change. The

Company remains committed to its target operating profit of £8m through both organic growth and bolt-on acquisitions.

The Board remains confident about continuing to trade in line with market expectations and the future prospects for the Group

Consolidated statement of profit or loss

Review of trading

Sales and marketing (4.3) (5.0)

Research and development (2.2) (2.1)

Administrative costs (3.4) (2.6)

Other income/(expense) 0.4 (0.6)

Operating profit 2.1 1.4

Operating profit is analysed as:

Adjusted operating profit 1.7 2.0

amortisation of acquired intangibles (0.9) (0.6)

Consolidated statement of financial position

Balance Sheet

Property, plant and equipment 2.6 2.4 0.2

Deferred tax assets 2.7 4.2 (1.5)

49.2 39.6 9.6

Net current assets

Inventories 12.1 11.1 1.0

Trade & other receivables 11.7 11.9 (0.2)

Cash 7.7 3.7 4.0

Current liabilities (22.4) (13.5) (8.9) 9.1 13.2 (4.1)

Non-current liabilities (6.3) (3.2) (3.1)

Net assets 52.0 49.6 2.4

Number of shares in issue ('million) 119 114

Consolidated statement of cash flows

Cash-flow H1 2014

£m

FY13 £m

Cash-flows from operating activities

Cash generated from operations 5.6 4.3

Taxation (paid)/received (0.1) (0.1)

Net cash generated from operating activities 5.5 4.2

Cash-flows from investing activities

Acquisition of subsidiary (net of cash acquired) (7.0) (2.0)

Deferred consideration in respect of acquisition 0.0 (0.4)

Proceeds from sale of property, plant and equipment 0.0 0.1

Purchase of property, plant and equipment (0.5) (0.5)

Expenditure on capitalised development costs (2.0) (4.5) Net cash used in investing activities (9.5) (7.3)

Cash-flows from financing activities

New Borrowings 8.0 0.0

Dividend paid to shareholders 0.0 (1.4)

Net cash generated/(used) in financing activities 8.0 (1.4)

Net increase/(decrease) in cash and cash equivalents 4.0 (4.5)

Effect of foreign exchange rate changes 0.0 0.1

Cash and cash equivalents at 1 January 3.7 8.1 Cash and cash equivalents 7.7 3.7

Come visit us at IBC 2014, stand 1.A69

and stand 8.C71