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25 July 06, page 1 Company Confidential Results 2Q06 and 1H06 Martin De Prycker 25 July, 2006
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25 July 06, page 2 Company Confidential Operational results 2Q06 and 1H06 In € million 2Q052Q06Growth 2Q06/ 2Q05 1H051H06Growth 1H06/ 1H05 Orders185.6192.03.4%358.0391.69.4% Sales176.9186.05.1%330.5358.18.3% EBITA15.516.14.1%21.925.416.0% EBITA %8.7 -6.67.1- Book-to-bill1.051.03-1.081.09-
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25 July 06, page 3 Company Confidential Results per quarter Results per quarter in € million
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25 July 06, page 4 Company Confidential Overall comments 2Q06 Order and sales growth continued in the second quarter, with a positive book-to-bill ratio of 1.03 –Strong growth in Medical, Events and DC markets –Order intake at € 192.0 million, remaining at a high level, even though some large orders shifted to 3Q06 Operational improvement actions, resulting in –Gross profit margin at 42.6%, improved vs 2Q05 at 42.3% –EBITA at 8.7%, the same as last year. However, EBITA of 2Q05 was positively impacted by other operating income, 2Q06 negatively impacted by other operating results
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25 July 06, page 5 Company Confidential Company divisional structure BarcoView Barco Media & Entertainment Barco Control Rooms Barco Presentation & Simulation BarcoVision Barco Manufacturing Services Defense & security Traffic management Medical imaging Avionics Events Media Digital cinema Traffic & surveillance Utilities & process control Broadcasting Simulation Presentation Textiles Plastics
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25 July 06, page 6 Company Confidential Evolution of results per division in € million 2Q052Q06Growth % 2Q05/2Q06 Sales% EBITA Sales% EBITA ∆ Sales View 56.99.858.49.5 3% Media & Entertainment 43.95.956.12.9 28% Control Rooms 30.08.130.812.5 3% Presentation & Simulation 26.27.026.46.9 1% Vision 14.421.015.413.0 7% Manufacturing Services 27.20.221.95.7 (19%) Eliminations -21.7-23.1 Total 176.98.7186.08.7 5.1%
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25 July 06, page 7 Company Confidential BarcoView (1) BarcoView (1) in € million
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25 July 06, page 8 Company Confidential BarcoView (2) Orders –Book-to-bill at 1.02 –Orders in Medical increased strongly vs 2Q05 –Orders in Defense & Security stabilizing at the level of last year, also including some initial small orders, laying the foundation for new business –Orders in Traffic Management lower than 2Q05 as projects are further delayed into 2007 –Orders in Avionics weaker than very high orders in 2Q05 Sales –Strong sales growth in Medical confirms market leadership and Frost & Sullivan award won for 3D software –Defense and Traffic Management sales lower than in 2Q05 –Avionics sales strongly growing vs 2Q05 Margins –Gross profit margin slightly lower than last year (45.4% vs 46.3%), mainly due to shift in product mix –EBITA margin of 9.5% stable vs 9.8% in 2Q05 Goodwill impairment –On the acquisition of Voxar an impairment of € million 1.6 was taken, because the market is not developing as fast as expected
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25 July 06, page 9 Company Confidential Barco Media & Entertainment (1) Barco Media & Entertainment (1) in € million
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25 July 06, page 10 Company Confidential Barco Media & Entertainment (2) Orders –Good book-to-bill ratio at 1.06 –Orders in Media slightly higher, against background of more selective market approach –Orders in Events strongly growing –Digital Cinema: very strong order growth confirms that the market is definitively taking off Sales –Strong Events and DC sales –Media sales lower than last year Margins –Gross profit margin at 31.9%, lower than 2Q05, but better than 1Q06 at 31.1% –EBITA margin at 2.9%, lower than last year, due to higher non-recurrent cost of € 3 million (negative currency fluctuations and exceptionals)
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25 July 06, page 11 Company Confidential Barco Control Rooms (1) Barco Control Rooms (1) in € million
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25 July 06, page 12 Company Confidential Barco Control Rooms (2) Orders –Orders declined vs 2Q05 due to competitive pressure in the broadcast market –Book-to-bill at 0.96 Sales –Sales growing 3%, at a lower speed than last year, but larger backlog (+ 12%) as compared to the end of 2Q05, for second half Margins –Gross profit margin to 43.8%, comparable to the one in 2Q05 –EBITA margin good at 12.5%, better than 8.1% in 2Q05
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25 July 06, page 13 Company Confidential Barco Presentation & Simulation (1) in € million
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25 July 06, page 14 Company Confidential Presentation Barco Presentation & Simulation (2) Orders –Good book-to-bill ratio at 1.08 –Order intake lower in Simulation and flat in Presentation vs 2Q05 Sales –Sales at the same level as last year (+ 1%) –Presentation sales grew 4% vs 2Q05 –Simulation sales declined vs 2Q05, due to ongoing shift in technology for flight simulation Margins –Gross profit margin improved to 42.5% vs 41.7% in 2Q05 –EBITA margin stable at 6.9% vs 7.0% in 2Q05
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25 July 06, page 15 Company Confidential BarcoVision (1) BarcoVision (1) in € million
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25 July 06, page 16 Company Confidential BarcoVision (2) Sales & Orders –Book-to-bill ratio at 1.05 shows some recovery in investment climate outside China, complemented by an important win in China for system business Margins –Gross profit margin at 47.8% vs 47.4% in 2Q05, –EBITA margin high at 13.0%. In 2Q05, the EBITA margin was higher, but included the profit on the sale of 2 buildings
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25 July 06, page 17 Company Confidential Barco Manufacturing Services (1) Barco Manufacturing Services (1) in € million
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25 July 06, page 18 Company Confidential Barco Manufacturing Services (2) Sales & Orders –High book-to-bill ratio of 1.14, preparing for large internal demand for second half –Sales lower than last year, due to shift of production to Asia Margins –EBITA margin at 5.7%, much better than 2Q05 as manpower and cost have strongly declined vs last year, thanks to restructuring actions taken in 2005
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25 July 06, page 19 Company Confidential Geographical breakdown of sales
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25 July 06, page 20 Company Confidential Key figures Income Statement 2Q06
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25 July 06, page 21 Company Confidential Key figures Balance Sheet Key figures Balance Sheet in € million 30/06/0531/12/0530/06/06 Accounts Receivable 173.7188.8175.2 Inventory 167.8141.4167.0 Cash 87.4106.383.4 Financial debt 104.384.381.3 Dividend payment: € 26.1 million Share buyback 1H06: € 6.6 million
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25 July 06, page 22 Company Confidential Expectations 3Q06 Sales between € 172 – € 182 million vs € 171.5 million in 3Q05 EBITA of between € 10 and € 15 million vs € 11.1 million in 3Q05
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25 July 06, page 23 Company Confidential Questions & Answers
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