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13 February 2008 Company confidential Results 4Q07 and FY07 Martin De Prycker, CEO 13 February 2008
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Company confidential Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Highlights 2007 Strong sales growth 10% Strong EBIT growth 12.5% Strong EPS growth 60% despite very negative currency impact Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Results 4Q07 and 2007 Results 4Q07 and 2007 * in € million 4Q06**4Q07Growth 4Q07/4Q06 2006**2007Growth 2007/2006 Orders194.2200.93.4%805.1859.46.7% Sales219.1240.59.8%737.9810.29.8% EBIT25.029.819.2%56.868.320.2% EBIT %11.4%12.4%7.7%8.4% EPS (in €)0.671.92186.6%2.764.4360.5% * Including BarcoVision and mechanical part of Manufacturing Services ** Not including the parts of Manufacturing Services, divested in 2006 Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Results 4Q07 and 2007: continuing operations Results 4Q07 and 2007: continuing operations * * Excluding BarcoVision and Manufacturing Services in € million 4Q064Q07Growth 4Q07/ 4Q06 20062007Growth 07/06 At real FX At constant FX Orders180.2186.63.6%746.1795.46.6% Order book277.6304.59.7%277.6304.59.7% Sales205.5225.49.7%681.0747.2 9.7%15% EBIT22.927.017.9%51.157.512.5%32% EBIT %11.1%12.0%7.5%7.7% Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Results per quarter: continuing operations in € million Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Highlights 4Q07 (continuing operations) Moderate growth in orders at 3.5% Strong growth in sales (9.7%) and EBIT (17.9%) All divisions growing except Medical Imaging EBIT negatively impacted by FX evolution with about € 6.7 million Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Evolution of results per division 4Q07 (continuing operations) in € million4Q064Q07Growth 07/06 Sales% EBITSales% EBITAt real FX At constant FX Media & Entertainment56.8(5.8%)78.46.9%38%48% Security & Monitoring75.318.3%77.416.1%3%8% Medical Imaging38.515.9%34.25.6%(11%)(5%) Other Markets41.315.2%43.916.6%6%12% Total205.511.1%225.412.0%10%17% Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Headlines 2007 (continuing operations) Very strong growth in sales (9.7%), orders (6.6%) and EBIT (12.5%), thanks to our focused approach on growth markets, despite the strong negative currency impact Excluding exchange impact, sales in all divisions have grown Increased gross profit following higher sales volume. Gross profit margin 1.8% lower due to changing product mix and currency evolution FX impact on EBIT is around € 10 million Finalizing our divestment strategy Strong order book end 2007 at € 304.5 million, 9.7% higher than end 2006 Focus on working capital shows first result with decreased DSO Key initiatives to reduce inventory have been taken, but do not yet yield significant results, especially in Media & Entertainment Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Evolution of results per division 2007 (continuing operations) in € million20062007Growth 07/06 Sales% EBITSales% EBITAt real FX At constant FX Media & Entertainment 216.81.2%278.57.2%28%34% Security & Monitoring220.96.9%232.46.8%5%9% Medical Imaging133.317.2%130.29.6%(2%)3% Other Markets136.77.4%136.76.6% -4% Total681.07.5%747.27.7%10%15% Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Media & Entertainment Division Media & Entertainment Division (1) in € million Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Media & Entertainment 2007 Media & Entertainment 2007 (2) Orders –Orders growing 9% vs 2006 –Orders in Events growing vs 2006, in line with the positive trend in the market, although 2nd half of 07 showed reduced growth rate –Orders in Media flat –Orders in Digital Cinema strongly growing, as the Digital Cinema market expanded Sales –Sales growing 28% vs 2006 –Sales in Events strongly growing, but slowing down in second half of 07 –Media sales growing by 31% –Digital Cinema sales growing fast, specifically thanks to a large China project Margins –Gross profit improved 28% compared to 2006 –EBIT strongly improved to 7.2% Sales increased 28% Excellent profit improvement Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Security & Monitoring Division Security & Monitoring Division (1) in € million Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Security & Monitoring 2007 Security & Monitoring 2007 (2) Orders –Orders growing more than 15%, with a strong contribution from the broadcast, defense and air traffic management markets –Order book very high at € 125 million Sales –Sales growing more than 5% vs 2006, in all markets, except in defense Margins –Gross profit only growing moderately vs 2006, due to price pressure and dollar erosion –EBIT margin at 6.8% vs 6.9% last year Sales growing more than 5% Orders growing more than 15% Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Medical Imaging Division Medical Imaging Division (1) in € million Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Medical Imaging 2007 Medical Imaging 2007 (2) Orders –Orders declining 6.3% vs 2006, mainly in the US, caused by Deficit Reduction Act, despite strong growth in EMEA and APAC Sales –Overall sales declining 2.3% vs 2006, but still growing at constant exchange rates –Sales in the PACS market lower, (due to the US only), partially offset by strong growth in modality Margins –Gross profit margin declining, due to lower sales volume, product mix and cost –EBIT margin declining from 17.2% to 9.6%, due to lower volume and lower gross margin Weak orders and sales, pulling EBIT down Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Other Markets Other Markets (1) in € million Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Other Markets 2007 Other Markets 2007 (2) Orders –Orders in other markets increased, mainly driven by flight simulation and oil & gas market Sales –Sales in simulation market growing at 8.2%, mainly thanks to flight simulation and oil & gas –Sales in avionics strongly growing at 12.8% –Sales in presentation declining as the new products were only introduced at the end of 2007 Margins EBIT in simulation market improving, but growth offset by increased R&D in Avionics and lower sales in presentation Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Status of discontinued operations The divestment of BarcoVision to Itema is expected in the near term, as soon as pending approvals of antitrust authorities will have been received Mechanical part of Manufacturing Services sold to BMTech. The impact of the transaction is neutral Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Geographical breakdown of sales Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential China becomes second geographical market Strong growth in orders (79%) and sales (61%) in China Successful growth in –Control rooms –Media –Events –Digital Cinema Shanghai stadiumJingxin Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Key figures Income Statement 2007 in € millionFY 06%FY 07% Sales Cost of goods sold 681.0 (404.7) 100.0 (59.4) 747.2 (457.5) 100.0 (61.2) Gross Profit Research & Development Sales & Marketing General & Administration Other operating result 276.3 (60.5) (112.2) (47.0) (5.5) 40.6 (8.9) (16.5) (6.9) (0.8) 289.7 (69.1) (113.9) (49.8) 0.6 38.8 (9.2) (15.2) (6.7) 0.1 EBIT Goodwill Impairment 51.1 (13.1) 7.5 (1.9) 57.5 0.0 7.7 0.0 Operating Result38.05.657.57.7 Non-operating result(1.1)0.8(2.2)0.8 Income Taxes(10.2)(1.5)(10.5)(1.4) Net Income from continuing operations 26.73.944.86.0 Net Income from discontinued operations6.61.08.51.1 Net Income33.34.953.37.1 EBITDA (continuing operations) 97.914.4112.415.0 Net Earnings per Share (in €)2.764.43 Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Key figures Balance Sheet in € million 31/12/0631/12/07 Accounts receivable * 208.3 (89 days) 202.4 (79 days) Inventory * 138.3204.1 Trade payables * 69.487.3 Cash81.473.3 Financial debt93.8126.7 * Only including continuing operations Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Outlook 2008 Further sales and EBIT growth Focus on operational and working capital efficiency Extend competitive and product position in the selected growth markets Further increase natural hedging by increased sourcing and R&D in Asia Capital reduction of € 70 million expected within 6 months after closing of sale of BarcoVision, as previously announced Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential Dividend Results 4Q07 and FY07 Dividend
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13 February 2008 Company confidential DividendDividend Proposal of the Board of Directors to the annual shareholders’ meeting on April 24, 2008 Dividend will be increased to € 2.40 Pay out ratio of 54.2% Gross dividend yield of close to 5% In addition, the planned capital reduction will result in a payment of approximately 5.8 €/share, to be paid within 6 months after the closing of BarcoVision Results 4Q07 and FY07
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