1 Innovators in image processing JP Tanghe: VP Corp Comm & Inv Rel BARCO General Presentation February 20, 2003

2 BARCO Founded as the Belgian American Radio Corporation in Poperinge, Belgium, in 1934 International company, headquartered in Kortrijk, Belgium, with a global presence Listed on Euronext Brussels, part of BEL 20, Next 150 and component of Dow Jones Sustainability Indexes

3 Worldwide Presence Europe Germany United Kingdom France The Netherlands Italy Spain Switzerland Czech Republic Denmark Poland Russia Israel North America Charlotte (North Carolina) Kennesaw (Georgia) Duluth (Georgia) Xenia (Ohio) Beaverton (Oregon) South America Sao Paulo (Brazil) Buenos Aires (Argentina) Asia Japan Tokyo, Osaka, Nagoya India Delhi, Noida Singapore China Beijing, Shanghai, Chengdu, Guangzhou Hong Kong Thailand Bangkok Malaysia Kuala Lumpur Australia Melbourne, Sydney Taiwan Shinzu, Taipei South-Korea Seoul

4 World Leader in Image Processing Large screen visualization (BarcoProjection) Visualization for life critical decision-making (BarcoView) Visual inspection and quality control (BarcoVision) 1H02 Projection 53%

5 Leading Edge Technology in Vertical Markets Technologies Markets …… Vision ATCDefenseMedicalUtilitiesTelecomBroadcastSurveillanceMediaEvents Cinema Flight +++Oil & GasAutomotiveLeisureTextileFood View Networking/Software/Systems Image Processing LCD CRTLEDDLPSensors Control RoomsMedia & EventsSimulation Avionics Projection

6 BarcoProjection BarcoVision BarcoView

7 Market Overview - Control Rooms - Simulation Products - Virtual & Augmented Reality - Edutainment - Intelligent Displays - Media - Events - High End Home Theater - Digital Cinema Barco Control Rooms Barco Projector Innovators Barco Creative Imaging

8 Control Rooms Expansion of application markets from Telecom and Utilities towards Broadcast, Traffic, Surveillance Worldwide leader with 43% of market

9 Simulation and Virtual & Augmented Reality Simulation Flight, ATC, Ship Bridge, Drive, Gunnery V&AR Virtual Prototyping: Automotive, AEC Oil & Gas Molecular Modeling, Medical Scientific Research and Education Edutainment Museums, Science Centers, Aquariums Theme Parks and Leisure Centers Planetariums

10 Intelligent Displays Presentations can be sent to projectors via standard network or Internet, even wireless Projector functions can be controlled via network or Internet User can view information on status of all projectors connected to the network Intelligent Displays to replace standard projectors in market for corporations and other organizations

11 Events Combines LED, projection and control equipment to provide customized events control solutions to the events and rental & staging industries A recognized market leader whose products grace the shows of Madonna, U2, Jennifer Lopez and many more

12 Media Development and production of LED display systems and peripheral equipment targeted at the specific needs of the media and sports markets LED Wall for Coca Cola on Piccadilly Circus in London LED Wall Reliant Stadium, Houston, Texas

13 Digital Cinema Market with a huge potential of ± theaters worldwide, but still waiting for a business model acceptable by all stakeholders in this market Increasing number of agreements signed with Cinema theater equipment dealers Regular “individual” sales of Digital Cinema projectors First quantity buy by Boeing Digital Cinema Promising Chinese market

14 High End Home Theater Sales in High End Home Theater market going strong with new product introductions April 2002: launch of revolutionary home theater concept “Cine VERSUM”, bringing unparalleled digital video quality and flexibility to the home theater of the future Cine VERSUM

15 BarcoProjection BarcoVision BarcoView

16 Market Overview -Air Traffic Control -Defense -Airborne -Naval -Landbased -Medical Imaging -PACS -Modalities - Avionics Command & Control Medical Imaging Systems Avionics

17 Air Traffic Control ISIS LCD flat panel turning into commercial success as anticipated at introduction in Europe early 2001 Now also breaking through in Asia and US Replacement market of some 12,000 workstations worldwide

18 Defense High quality ruggedized flat panels, graphic boards, consoles and visualization (sub)systems that can be used in a variety of defense applications, reconnaissance, surveillance and intelligence gathering

19 Medical Imaging Significant market share in PACS (Picture Archiving and Communication Systems) To be continued and strengthened by introduction of Coronis family of flat panels and ImageTile

20 Avionics Clear acceptance of system concept as adopted over recent years, made possible thanks to important R&D investment Production series based on this concept are part of long term projects

21 BarcoProjection BarcoVision BarcoView

22 Market Overview Textiles: sensors & systems Spinning Weaving Finishing (dyeing) Plastics Production monitoring Optical sorting Food (French fries, nuts, seafood, vegetables…) Non food (tobacco, plastic flakes and pellets)

23 Strategy of Barco (1) Consolidate our nr. 1 or nr. 2 position in our key growing markets Medical (20% to 25% CAGR) Events (14% on the longer term) Defense Simulation and V&AR (6% to 8% CAGR) through internal growth by investing in R&D to improve in System approach functionalities Cost containment through external growth: acquisitions by means of strong net cash position of > 60 M€ TAN in August 2002 ORTHOGON in October 2002

24 Strategy of Barco (2) Expand in new markets Air Traffic Control: build on change from CRT to LCD (increased market share in 2002 from 5% to 80% of new installations) Digital Cinema: build on change from analog to digital with a potential of theatres (CAGR: 100%, but in its infancy) Media: use and adapt technology leadership from Events market (14% CAGR)

25 Innovators in image processing Results third quarter 2002

26 Operational results Q302 in € millionQ302YTD02Q301YTD01 Orders Sales EBIT EBIT %7.7%8.4%1.4%8.7%

27 Orders higher than Sales for 3 rd consecutive quarter * Results 2001 “pro forma” i.e. incl. dotrix n.v., Barco Graphics not consolidated (in € million)

28 Results Barco Orders: order book has further increased in Q302 by € 18 million Sales: sales Q302 traditionally weak because of reduction in shipments to European customers due to holiday season Additional impact from Delayed internal deliveries due to transfer of mechanical manufacturing from Belgium to Czech Republic Yield problems with external suppliers EBIT: Slight increase of gross margin from 55% for 1H02 to 56% in Q302 by Ongoing introduction of new features, compensating price pressure Ongoing cost improvement Further reduction of manpower from 4132 end 2001, to 4000 employees worldwide

29 BarcoProjection (1) (in € million )

30 BarcoProjection (2) Sales Control Rooms: Growth in new markets compensates low investments from Telecom Orders Telecom picking up again in Q4 New stand-alone projector iQ Has won several awards Not taking off fast enough yet Higher market share in V&AR thanks to growth in US market and TAN acquisition Events: Q3: weaker investments by Events customers, picking up again in Q4 Media Media projects delayed New product for Media applications available as of begin ‘03 Hopeful signs from Digital Cinema, particularly in China EBIT: margin well maintained at 10.1% vs comparable quarters, Q301 (2.1%) and Q102 (9.3%), despite lower sales

31 BarcoView (1) (in € million)

32 BarcoView (2) Orders: Orders in Security and Defense picking up again for existing and new programs Ongoing strong orders for ATC and Medical Sales: ongoing successes in Air Traffic Control (ATC) Further market penetration of flat LCD panel, also in USA Strengthening of market position by acquisition of Orthogon Medical Introduction of high-end flat screens for Medical of 1, 2 and 5 megapixel besides 3 megapixel EBIT: much better than Q301

33 Orthogon joined Barco (Oct 1, 2002) Strategy: ATC is extending its portfolio with software and integration services, also towards end users Market Share Orthogon: Mainly ATC (80%) and expanding into Security & Defense to offer software and integration services System integrators and end users Mainly Europe (80%) with market leadership Short term growth potential in USA in ATC Long term growth potential in Security & Defense

34 BarcoVision Textile machine market in China and Turkey continues to go strong Sales weaker in Q3 due to seasonal effect (in € million)

35 Barco Subcontracting Increase in manufacturing with components in consignment results in lower sales but yields higher gross margin (in € million)

36 Geographical breakdown of Turnover per Activity (%) EUNaftaAsiaROW BarcoProjection BarcoView BarcoVision Total Q Total 1H Total

37 OWC: Inventory Inventory on same level as end Q202 due to slack in deliveries and in preparation of higher sales in Q402

38 OWC: Accounts Receivable (incl. BG) Days outstanding

39 Net cash position in € million

40 Results Q3 & YTD in € millionQ302YTD02Q301*YTD01* EBIT Current Result Taxes (3.2) (9.6) (0.3)(12.9) Curr. Res. after Taxes Extra-Ordinaries0(28.1)0 (0.4) Amort. Of goodwill Net result 7.0 (0.5) (0.6)23.9 Current EPS** Current cash Flow *”pro forma”, i.e. incl. dotrix n.v., Barco Graphics not consolidated ** in euro

41 Preview Q402 Sales Q402: mio euro vs 175/185 expected = +7% vs Q401 Better supply of certain components More deliveries from backlog More orders to be delivered still in 2002 EBIT Q402: > 31 mio euro vs 21/25 expected

42 Preview Full Year 2002 Sales FY2002: 668 mio euro vs 673 in 2001 = -0.8% despite low USD Orders FY2002 vs FY2001: -0.8% EBIT FY 2002: + > 30% vs 2001 > 10% vs sales

43 Innovators in Image Processing