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26 July 05, page 1 Company Confidential Results Second Quarter 2005 and 6 months ended 30 June 2005
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26 July 05, page 2 Company Confidential Martin De Prycker CEO 26 July 2005
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26 July 05, page 3 Company Confidential Operational results 2Q 2005 and 1H 2005 * In € million 2Q042Q05Growth 2Q05/ 2Q04 1H041H05Growth 1H05/ 1H04 Orders178.6185.63.9%332.5358.07.7% Sales171.5176.93.1%320.7330.53.1% EBITA18.615.5-16.9%33.921.9-35.5% EBITA %10.98.710.66.6 Book-to- bill 1.041.051.041.08 * €/$ 4.4% lower in 2Q05 vs 2Q04 2004 restated for cost of stock options
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26 July 05, page 4 Company Confidential Results per quarter in € million
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26 July 05, page 5 Company Confidential Overall comments 2Q 2005 Order and sales growth continued in the second quarter, with a positive book-to-bill ratio of 1.05 –Strong growth in Medical, Security (control room) and Media markets –Good order intake at € 185.6 million, highest level since 4Q03 Operational improvement actions show first results, but will continue in het next quarters –Gross profit margin at 42.3%, improved vs 1Q05 (39.6%), after 4 quarters decline, but still below 44.1% of 2Q04 –EBITA at 8.7%, higher than 4.2% in 1Q05, but weaker than last year, mainly because of erosion of gross margin and increased operational cost –Operational cost reduction realized by manpower reduction of 60 since end March, to 4327 end June, with a restructuring cost of € 2 million
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26 July 05, page 6 Company Confidential Evolution of results per division in € millionSales% EBITASales% EBITA ∆ Sales View54.013.556.99.85% Media & Entertainment43.76.543.95.90% Presentation & Simulation 28.212.726.27.0(7%) Control Rooms25.414.430.08.118% Vision14.59.914.421.0(1%) Manufacturing Services30.8-0.627.20.2(12%) Eliminations-25.0-21.7 Total171.510.9176.98.73.1% 2Q04 2Q05
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26 July 05, page 7 Company Confidential BarcoView (1) in € million
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26 July 05, page 8 Company Confidential BarcoView (2) Orders –Very good book-to-bill ratio at 1.11 –Orders in Medical increased strongly vs 2Q04 –Orders in Defense & Security remain weak –Orders in Traffic Management lower than 2Q04, and increased price pressure –Strong orders in Avionics, due to the Air Show in Le Bourget Sales –Strong sales growth in Medical confirms market leadership –Defense and Traffic Management sales lower than in 2Q04 Margins –Stable gross profit margin YoY –Introduction of second supplier in medical, resulted in lower gross profit margin and temporary inventory increase –EBITA margin of 9.8% has improved vs 7.8% in 1Q05, but lower than 2Q04
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26 July 05, page 9 Company Confidential Barco Media & Entertainment (1) in € million
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26 July 05, page 10 Company Confidential Barco Media & Entertainment (2) Orders –Low book-to-bill ratio at 0.92 –Strong orders in Media worldwide –Weaker orders in Events –Digital Cinema: partnership with Kodak will strengthen our NA position Sales –At the same level of last year –Very strong increase (more than double) in Media sales –Weaker Event sales, as last year EURO 2004 and Olympic Games triggered special demands Margins –Gross profit margin at 34.5%, lower than 2Q04, but better than 1Q05 –Focus on higher gross margin products and cost down for Media products manufactured in China, results in improved gross margin from 33.3 % in 1Q05 to 34.5 % in 2Q05 –EBITA margin at 5.9%, improved vs 1Q05 (-2.3%), resulting from higher sales, better gross margin and the restructuring in March 2005
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26 July 05, page 11 Company Confidential Barco Presentation & Simulation (1) in € million
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26 July 05, page 12 Company Confidential Barco Presentation & Simulation (2) Orders –Very good book-to-bill ratio at 1.19 –Order intake grew by 15%, mainly due to Simulation, and also growth in Presentation Sales –Presentation sales grew 8% vs 2Q04 –Simulation sales declined with 14% vs 2Q04, which included a large project Margins –Gross profit margin improved to 41.7% in 2Q05 vs 40.6% in 1Q05, but below 48.2% in 2Q04 due to changing product mix and lower volume –EBITA margin at 7.0% vs 12.7% in 2Q04, but better than 3.6% in 1Q05
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26 July 05, page 13 Company Confidential Barco Control Rooms (1) in € million
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26 July 05, page 14 Company Confidential Barco Control Rooms (2) Orders –Continued strong growth in orders: +9.5% compared to 2Q04 –Book-to-bill at 1.07 with success in EMEA and China, further increasing the order book Sales –High growth worldwide of 18% –Good worldwide sales in all segments –Security and Traffic markets realized strong growth Margins –Gradual recovery of gross profit margin to 43.5%, better than 39.7% in 1Q05, but below 2Q04 at 50.5% –EBITA margin good at 8.1%, better than 4.1% in 1Q05, but lower than 14.4% in 2Q04
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26 July 05, page 15 Company Confidential BarcoVision (1) in € million
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26 July 05, page 16 Company Confidential BarcoVision (2) Sales & Orders –Book-to-bill ratio at 1.01 confirms uncertainty in textile market w.r.t. impact of international textile trade disputes Margins –Gross profit margin at 47.4% vs 45.7% in 2Q04, thanks to better product mix (new product with higher margin) –EBITA margin at 21.0%, exceptionally high thanks to profitable sale of buildings in UK. Excluding this sale, EBITA margin is 11.6
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26 July 05, page 17 Company Confidential Barco Manufacturing Services (1) in € million
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26 July 05, page 18 Company Confidential Barco Manufacturing Services (2) Sales & Orders –Sales & orders decreased as more final assembly of other Barco divisions is moving to Asia, where local suppliers are used Margins –EBITA margin at 0.2%, stable vs 2Q04 despite lower sales, but better than 1Q05 through further cost reduction –Gradual decline in manpower through reduction in temps and early retirements, in line with demand
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26 July 05, page 19 Company Confidential Geographical breakdown of sales 1H05 1H04
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26 July 05, page 20 Company Confidential Key figures Income Statement 2Q05
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26 July 05, page 21 Company Confidential Key figures Balance Sheet in € million 30/06/0431/12/0430/06/05 Accounts Receivable 154.7166.2173.7 Inventory143.1144.0167.8 Cash124.290.687.4 Financial debt 56.557.9104.3 Dividend payment: € 25.3 million Share buyback 1H05: € 4.2 million
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26 July 05, page 22 Company Confidential Expectations 3Q05 Orders between € 170 – 180 million vs € 158.9 million in 3Q04, i.e. a 10% growth YoY Sales between € 162 – € 172 million vs € 158.1 million in 3Q04, i.e. representing a YoY growth of around 6% at the middle of the range EBITA of between € 10 and € 15 million vs € 13.2 million in 3Q04
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26 July 05, page 23 Company Confidential Questions & Answers
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