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25 July 2007, page 1 Company confidential Results 2Q07 Martin De Prycker, CEO 25 July 2007.

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Presentation on theme: "25 July 2007, page 1 Company confidential Results 2Q07 Martin De Prycker, CEO 25 July 2007."— Presentation transcript:

1 25 July 2007, page 1 Company confidential Results 2Q07 Martin De Prycker, CEO 25 July 2007

2 25 July 2007, page 2 Company confidential Operational results 2Q07: reported * in € million 2Q 20062Q 2007** Growth 2Q07/2Q06 Orders192.0199.13.7% Sales186.0208.212.0% EBIT16.117.810.6% EBIT %8.7%8.6% Book-to-bill1.030.96 * Including BarcoVision and Manufacturing Services ** Not including the parts of Manufacturing Services, divested in 2006

3 25 July 2007, page 3 Company confidential Operational results 2Q07: continuing operations * in € million2Q 2006 2Q 2007 Growth 2Q07/2Q06 Orders170.6183.07.3% Sales166.3192.3** 15.6% EBIT13.015.721.1% EBIT %7.8%8.2% Book-to-bill1.030.95 * Excluding BarcoVision and Manufacturing Services ** 19% at comparable €/$ rate

4 25 July 2007, page 4 Company confidential Operational results 1H07: continuing operations * in € million1H 20061H 2007 Growth 1H07/1H06 Orders350.5404.415.4% Sales322.2348.78.2% EBIT21.022.25.8% EBIT %6.5%6.4% Book-to-bill1.091.16 * Excluding BarcoVision and Manufacturing Services

5 25 July 2007, page 5 Company confidential Results per quarter: continuing operations Results per quarter: continuing operations in € million

6 25 July 2007, page 6 Company confidential Overall comments on continuing operations for 2Q07  Strong order growth of more than 7%, thanks to –High order intake in Media & Entertainment and Security & Monitoring  Large sales growth of 19% vs 2Q06 on comparable basis (including currency evolution) –Growth in Media & Entertainment, Medical Imaging and Other Markets –Decline in Security & Monitoring  Book-to-bill good at 0.95  EBIT at € 15.7 million, 21.1% better than 2Q06, thanks to increased gross profit, despite $ decline

7 25 July 2007, page 7 Company confidential Evolution of results per division (on continuing operations) in € million 2Q062Q07Sales growth 2Q07/ 2Q06 Sales% EBITSales% EBIT Media & Entertainment56.12.981.310.744.9% Security & Monitoring52.96.150.40.1(4.7%) Medical Imaging30.516.732.713.47.2% Other Markets33.58.935.47.35.7% Eliminations-6.7-7.6 Total166.37.8192.38.215.6% * * 19% at comparable €/$ rate

8 25 July 2007, page 8 Company confidential Media & Entertainment Division (1) in € million

9 25 July 2007, page 9 Company confidential Media & Entertainment Division (2)  Orders / Sales –Book-to-bill ratio lower at 0.81, with 10% order growth and 45% sales growth 2Q07 vs 2Q06 –Events had double digit order and sales growth, thanks to successful new and existing products –Media had flat orders growth and strong increasing sales with positive EBIT –DC lower orders, but indications remain positive for market growth in 2H07 and 2008  Margins –Gross profit increased 34.9% vs the year before –Profit margin at 10.7% vs 2.9% in 2Q06, thanks to strong sales increase

10 25 July 2007, page 10 Company confidential Security & Monitoring Division (1) in € million

11 25 July 2007, page 11 Company confidential Security & Monitoring Division (2)  Orders / Sales –Book-to-bill high at 1.23 –Double digit growth in orders, mainly in the defense and control room markets –Sales in defense showing first growth, although still moderate, whereas in control rooms a few big projects shifted to 2H07, resulting in a decline in sales  Margins –Gross profit decreased 9.6% vs 2Q06, due to lower sales volume and negatively influenced by $ erosion –Profit margin at 0.1% vs 6.1% in 2Q06, due to lower gross profit

12 25 July 2007, page 12 Company confidential Medical Imaging Division (1) in € million

13 25 July 2007, page 13 Company confidential Medical Imaging Division (2)  Orders / Sales –Book-to-bill ratio at 0.89 –Weaker orders and sales in PACS vs 2Q06, particularly due to lower US sales –Modality orders flat, but sales higher  Margins –Gross profit increased 13.4% –Good profit margin at 13.4%, lower than 16.7% in 2Q06, as investments in new product development and sales have increased

14 25 July 2007, page 14 Company confidential Other Markets (1) in € million

15 25 July 2007, page 15 Company confidential Other Markets (2)  Orders / Sales –Higher orders and sales in simulation market and lower orders and sales in presentation market –Higher orders and lower sales in Avionics than 2Q06  Margins –Gross profit margin remained stable –EBIT margin at 7.3% vs 8.9% in 2Q06, thanks to a strong improvement in Presentation & Simulation, not compensating the decline of Avionics (caused by large investments in new product development)

16 25 July 2007, page 16 Company confidential Status of discontinued operations  The divestiture of BarcoVision was signed with Itema, expected closing end 2007. Sales price of € 72 million; full details on effect on profitability will be provided at closing, but expected net gain between € 43 and 45 million  Discussions with potential partner for the mechanical part of Manufacturing Services continue, to be concluded in 2H07

17 25 July 2007, page 17 Company confidential 2Q07 Geographical breakdown of sales (on continuing operations) 2Q06 EMEA AMERICAS APAC

18 25 July 2007, page 18 Company confidential Key figures Income Statement: continuing operations in € million2Q06%2Q07% Sales Cost of goods sold 166.3 -96.7 100.0 -58.1 192.3 -117.3 100.0 -61.0 Gross Profit Research & Development Sales & Marketing General & Administration Other operating result 69.6 -15.6 -28.5 -11.5 41.9 -9.4 -17.1 -6.9 -0.6 74.9 -16.5 -29.3 -12.6 -0.8 39.0 -8.6 -15.3 -6.5 -0.4 EBIT Goodwill impairment 13.0 -1.6 7.8 -0.9 15.7 0.0 8.2 0.0 Operating Result11.46.815.78.2 Non-operating result-0.2-0.1-0.2-0.1 Income Taxes-2.5-1.5-2.9-1.5 Net Income11.36.814.37.4 Current Cash Flow22.113.325.713.4 EBITDA24.814.928.815.0 Current Earnings per Share (in €)0.851.05 Net Earnings per Share (in €)0.931.19

19 25 July 2007, page 19 Company confidential Key figures Balance Sheet in € million 30/06/0631/12/0630/06/07* Accounts Receivable175.2218.6194.2 Inventory167.0146.7173.4 Trade Payables76.769.484.9 Cash83.481.489.1 Financial Debt81.393.8113.1 * Excluding discontinued operations

20 25 July 2007, page 20 Company confidential Expectations 2007  High orders in 1H07 increase confidence in reaching sales growth targets for 2007 between 6% and 9%, supported by new products being introduced in 2007  Profit increase for 2007 confirmed vs 2006  Divestitures status –Mechanical part of Manufacturing Services targeted for 2H07 –Vision signed, closing expected end 2007  The proceeds from the sale of BarcoVision –Potential acquisitions will be assessed –Alternative solutions to create shareholder value will be evaluated and communicated before end 2007


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