August 28, 2002 Martin De Prycker: President & CEO Innovators in image processing Results 2002 Q2 and Outlook 2002 August 28, 2002 Martin De Prycker: President & CEO
Operational results Q2/02: targets achieved In (€ million) Q2/02 Q1/02 Q/Q Orders 190.7 167.5 +13.8% Sales 176.1 152.2 +15.7% EBIT 19.1 9.7 +97% EBIT 10.8% 6.4%
Evolution BARCO Group per quarter (in M €) * Results 2001 “pro forma” i.e. incl. dotrix n.v., Barco Graphics not consolidated
Barco operating in investment goods markets We believe these markets to keep growing on the long term Currently, however, many decisions on capital expenditure keep being delayed due to dip in general economics The only options to be successful in such market conditions: On short term Increase Market Share Improve profitability through Cost Control Prepare for mid/long term by continued investment in R&D for new products
BarcoProjection gaining Market Share in a difficult market
BarcoProjection (in M €) Expanded market share with significant successes in Media and Events (35% market share) worldwide Augmented Reality through organic growth and acquisition of TAN (Aug. 02) Kept market share in difficult markets of Control Rooms at around 45% Revenue decline in Home Theater and stand alone projectors; new products being launched
BarcoView gaining Market Share in a difficult market
BarcoView Expanded market share with important successes in (in M €) Expanded market share with important successes in Air Traffic Control Medical worldwide (high end flat screens)
BarcoVision (in M €) Textile market improving as of Q2/02
Geographical breakdown of Turnover per Activity (in %) W. Europe Nafta Asia ROW BarcoProjection 40 35 19 6 BarcoView 32 51 13 4 BarcoVision 64 9 16 11 Total 1H02 46 32 16 6 Total 2001 48 30 16 6 Japanese market declined Chinese market improved USA market improved in Projection and View
Barco keeps costs under control Gross margin flat at 55% for 1H02 by ongoing cost improvement but 1.5% lower than 1H01 because of less favorable product mix Operational cost decreased but to a lower extent than revenue decline by keeping our R&D almost flat Manpower reduced to 4016 vs 4132 (YE 2001) by end June 2002 Reduction of temporaries Limited lay offs Selective hiring Manufacturing of large volumes in low cost countries In Barco Group: Czech Republic, India Through ODM: China Some negative impact of USD
Reduced OWC: Inventory Inventory reduced by 8% vs end Q1 02 On the road to achieving 10% reduction by end 02 vs end Q1 02
Reduced OWC: Accounts Receivable Days outstanding (incl. BG)
Improved net cash position Reduction of OWC Growth in profit -> Net cash improved to € 56 million vs € 11.8 million end 01
Participations in graphical companies further reduced Streamlined our participations in graphical business into minority participation by selling 29% of Esko-Graphics to Kirkbi Present participation in Esko-Graphics reduced to 19.9% Extra ordinary result due to transactions on participations in Esko-Graphics, Mania and ManiaBarco - € 28,1 million
Results 1H02 1H01* 2H01* 1H02 EBIT 40.7 13.9 28.9 Current Result 40.9 13.6 29.1 Taxes (12.6) (2.7) (6.4) Cur. Res. after taxes 28.2 10.8 22.7 Extra-Ordinaries (0.4) (95.9) (28.1) Amort. of goodwill 3.4 3.4 2.2 Net Result 24.4 (88.5) (7.5) Current Res./Share €2.28 €0.87 €1.83 Current Cash Flow 58.2 37.2 53.8 * “pro forma”, i.e. incl. dotrix n.v, Barco Graphics not consolidated
Expectations Q3/Q4 Flat to slight increase in revenues as compared to Q1/Q2 2002 Growth in BarcoView, mainly in Air Traffic Control and Medical Flat to declining in BarcoProjection Flat in BarcoVision Profitability slightly better than first half 2002, much better than Q3/Q4 2001 Continuous cost control
Innovators in image processing