Innovators in image processing
BARCO
Results third quarter 2002
November 7, 2002
Martin De Prycker, President & CEO
1
Operational results Q302
in € million
Q302
YTD02
Q301
YTD01
Orders
163.6
521.8
146.8
525.3
Sales
145.8
474.2
153.7
492.5
EBIT
11.2
39.9
2.2
42.9
7.7%
8.4%
1.4%
8.7%
EBIT %
2
Orders higher than Sales for 3rd
consecutive quarter
(in € million)
200
150
Orders
Sales
EBIT
100
50
0
Q101 Q201 Q301
Q401 Q102 Q202 Q302
* Results 2001 “pro forma” i.e. incl. dotrix n.v., Barco Graphics not
consolidated
3
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
4
BarcoProjection (1)
(in € million )
100
90
80
70
60
Orders
Sales
EBIT
50
40
30
20
10
0
Q101 Q201 Q301 Q401 Q102 Q202 Q302
5
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
6
BarcoView (1)
(in € million)
80
70
60
50
Orders
Sales
EBIT
40
30
20
10
0
-10
Q101 Q201 Q301 Q401 Q102 Q202 Q302
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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
8
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
Eurocontrol
• Mainly Europe (80%) with market
10%
leadership
• Short term growth potential in
Others
USA in ATC
14%
• Long term growth potential
Security &
in Security & Defense
Defense
2%
ATC Industry
74%
9
BarcoVision
(in € million)
30
25
20
Orders
Sales
EBIT
15
10
5
0
Q101 Q201 Q301 Q401 Q102 Q202 Q302
• Textile machine market in China and Turkey continues to
go strong
• Sales weaker in Q3 due to seasonal effect
10
Barco Subcontracting
(in € million)
30
25
20
Orders
Sales
EBIT
15
10
5
0
Q101 Q201 Q301 Q401 Q102 Q202 Q302
• Increase in manufacturing with components in consignment
results in lower sales but yields higher gross margin
11
Geographical breakdown of
Turnover per Activity (%)
EU
Nafta
Asia
ROW
BarcoProjection
BarcoView
BarcoVision
37
28
60
35
57
11
24
13
17
4
3
12
Total Q302
42
35
19
5
Total 1H02
46
32
16
6
Total 2001
48
30
16
6
12
OWC: Inventory
• Inventory on same level as end Q202 due to slack in deliveries
and in preparation of higher sales in Q402
in € million
160
140
143
132
126
128
June
Sept
120
119
100
80
60
40
20
0
End 01
Mar
Target Dec
13
OWC: Accounts Receivable
Days outstanding
100
90
92
84
80
75
80
70
60
50
40
30
20
10
0
End 01
Mar
June
Sept
(incl. BG)
14
Net cash position
in € million
80
67.8
70
60
55.2
56
Q102
Q202
50
40
30
20
11.8
10
0
end 01
Q302
15
Results Q3 & YTD
in € million
Q302
YTD02
Q301*
EBIT
11.2
39.9
2.2
42.9
Current Result
11.6
40.7
1.4
42.3
Taxes
(3.2)
(9.6)
(0.3)
(12.9)
1.1
29.4
0
(0.4)
Curr. Res. after Taxes
8.4
Extra-Ordinaries
0
Amort. Of goodwill
1.4
3.6
1.7
Net result
7.0
(0.5)
(0.6)
Current EPS**
0.68
2.51
0.09
Current cash Flow
23.7
31.1
(28.1)
77.5
15.8
YTD01*
5.1
23.9
2.37
74
*”pro forma”, i.e. incl. dotrix n.v., Barco Graphics not consolidated
** in euro
16
Expectations Q402 and Full Year 2002
1. Sales Q4: 175/185 million euro, bringing 2002
sales to slightly lower level than 2001
• Outspoken growth in BarcoView vs Q401 leading to
increase in sales Year on Year
• Sales BarcoProjection lower vs Q401 resulting in
slightly lower sales Year on Year
• Higher sales in BarcoVision vs Q401 but still lower
Year on Year
2. Profitability expected in the range of 21/25
million euro leading to considerably higher
EBIT Year on Year
3. Current EPS full year 2002 expected between
€ 3.80 and € 4, i.e. an increase of at least
about 40% compared to 2001
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Innovators in image processing
Questions & Answers
www.barco.com
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