Results 4Q07 and FY07
Martin De Prycker, CEO
13 February 2008
13 February 2008
Company confidential
Results 4Q07 and FY07
Dividend
Results 4Q07 and FY07
13 February 2008
Company confidential
Highlights 2007
Results 4Q07 and FY07
Dividend
 Strong sales growth
10%
 Strong EBIT growth
12.5%
 Strong EPS growth
60%
despite very negative currency impact
13 February 2008
Company confidential
Results 4Q07 and 2007 *
Results 4Q07 and FY07
Dividend
in €
million
4Q07
Growth
4Q07/4Q06
2006**
2007
Growth
2007/2006
Orders
194.2
200.9
3.4%
805.1
859.4
6.7%
Sales
219.1
240.5
9.8%
737.9
810.2
9.8%
25.0
29.8
19.2%
56.8
68.3
20.2%
11.4%
12.4%
7.7%
8.4%
0.67
1.92
2.76
4.43
EBIT
EBIT %
EPS (in €)
*
**
13 February 2008
Company confidential
4Q06**
186.6%
60.5%
Including BarcoVision and mechanical part of Manufacturing Services
Not including the parts of Manufacturing Services, divested in 2006
Results 4Q07 and 2007: continuing operations *
Results 4Q07 and FY07
Dividend
in € million
4Q06
4Q07
Growth
4Q07/
4Q06
2006
2007
Growth 07/06
At real FX
Orders
180.2
186.6
3.6%
746.1
795.4
6.6%
Order book
277.6
304.5
9.7%
277.6
304.5
9.7%
Sales
205.5
225.4
9.7%
681.0
747.2
9.7%
15%
22.9
27.0
17.9%
51.1
57.5
12.5%
32%
11.1%
12.0%
7.5%
7.7%
EBIT
EBIT %
* Excluding BarcoVision and Manufacturing Services
13 February 2008
Company confidential
At constant FX
Results per quarter: continuing operations
in € million
Results 4Q07 and FY07
250
Dividend
200
Orders
Sales
150
EBIT
Avg. LTM Orders
Avg. LTM Sales
100
50
13 February 2008
Company confidential
07
07
4Q
07
3Q
07
2Q
06
1Q
06
4Q
06
3Q
06
2Q
05
1Q
05
4Q
05
3Q
2Q
1Q
05
0
Highlights 4Q07
Results 4Q07 and FY07
Dividend
(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
13 February 2008
Company confidential
Evolution of results per division 4Q07
(continuing operations)
Results 4Q07 and FY07
in € million
4Q06
4Q07
Growth 07/06
Dividend
Sales
Sales
% EBIT
At real
FX
At constant
FX
Media & Entertainment
56.8
(5.8%)
78.4
6.9%
38%
48%
Security & Monitoring
75.3
18.3%
77.4
16.1%
3%
8%
Medical Imaging
38.5
15.9%
34.2
5.6%
(11%)
(5%)
Other Markets
41.3
15.2%
43.9
16.6%
6%
12%
205.5
11.1%
225.4
12.0%
10%
17%
Total
13 February 2008
Company confidential
% EBIT
Headlines 2007
Results 4Q07 and FY07

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
Dividend
13 February 2008
Company confidential
(continuing operations)
Evolution of results per division 2007
(continuing operations)
Results 4Q07 and FY07
Dividend
in € million
2006
Sales
13 February 2008
Company confidential
2007
% EBIT
Sales
Growth 07/06
% EBIT
At real
FX
At constant
FX
Media &
Entertainment
216.8
1.2%
278.5
7.2%
28%
34%
Security & Monitoring
220.9
6.9%
232.4
6.8%
5%
9%
Medical Imaging
133.3
17.2%
130.2
9.6%
(2%)
3%
Other Markets
136.7
7.4%
136.7
6.6%
-
4%
Total
681.0
7.5%
747.2
7.7%
10%
15%
Media & Entertainment Division
(1)
in € million
Results 4Q07 and FY07
Dividend
100
80
60
Orders
Sales
EBIT
Avg. LTM Orders
Avg. LTM Sales
40
20
-20
13 February 2008
Company confidential
07
07
4Q
07
3Q
07
2Q
06
1Q
06
4Q
06
3Q
06
2Q
05
1Q
05
4Q
05
3Q
2Q
1Q
05
0
Media & Entertainment 2007
Results 4Q07 and FY07
Dividend
(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
13 February 2008
Company confidential
Security & Monitoring Division
(1)
in € million
Results 4Q07 and FY07
90
Dividend
80
70
60
50
Orders
Sales
40
EBIT
Avg. LTM Orders
Avg. LTM Sales
30
20
10
13 February 2008
Company confidential
07
07
4Q
07
3Q
2Q
07
06
1Q
06
4Q
06
3Q
06
2Q
05
1Q
05
4Q
05
3Q
1Q
-10
2Q
05
0
Security & Monitoring 2007
Results 4Q07 and FY07
Dividend
(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%
13 February 2008
Company confidential
Medical Imaging Division
(1)
in € million
Results 4Q07 and FY07
60
Dividend
50
40
Orders
Sales
EBIT
30
Avg. LTM Orders
Avg. LTM Sales
20
10
0
1Q
13 February 2008
Company confidential
05
2Q
05
3Q
05
4Q
05
1Q
06
2Q
06
3Q
06
4Q
06
1Q
07
2Q
07
3Q
07
4Q
07
Medical Imaging 2007
Results 4Q07 and FY07
Dividend
(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
13 February 2008
Company confidential
Other Markets
(1)
in € million
Results 4Q07 and FY07
45
Dividend
40
35
30
25
Orders
Sales
20
EBIT
Avg. LTM Orders
Avg. LTM Sales
15
10
5
0
-51Q
13 February 2008
Company confidential
05
2Q
05
3Q
05
4Q
05
1Q
06
2Q
06
3Q
06
4Q
06
1Q
07
2Q
07
3Q
07
4Q
07
Other Markets 2007
Results 4Q07 and FY07
Dividend
(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
13 February 2008
Company confidential
Status of discontinued operations
Results 4Q07 and FY07
Dividend
 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
13 February 2008
Company confidential
Geographical breakdown of sales
2006
Results 4Q07 and FY07
Dividend
18,00%
46,00%
EMEA
AMERICAS
APAC
36,00%
2007
20,00%
45,50%
EMEA
AMERICAS
APAC
34,50%
13 February 2008
Company confidential
China becomes second geographical market
Results 4Q07 and FY07
Dividend
 Strong growth in orders (79%) and sales (61%) in China
 Successful growth in
–
–
–
–
Control rooms
Media
Events
Digital Cinema
Shanghai stadium
13 February 2008
Company confidential
Jingxin
Key figures Income Statement 2007
Results 4Q07 and FY07
Dividend
in € million
FY 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
51.1
(13.1)
7.5
(1.9)
57.5
0.0
7.7
0.0
Operating Result
38.0
5.6
57.5
7.7
Non-operating result
(1.1)
0.8
(2.2)
0.8
(10.2)
(1.5)
(10.5)
(1.4)
26.7
3.9
44.8
6.0
6.6
1.0
8.5
1.1
Net Income
33.3
4.9
53.3
7.1
EBITDA
97.9
14.4
112.4
15.0
EBIT
Goodwill Impairment
Income Taxes
Net Income from continuing operations
Net Income from discontinued operations
(continuing operations)
Net Earnings per Share (in €)
13 February 2008
Company confidential
2.76
4.43
Key figures Balance Sheet
Results 4Q07 and FY07
31/12/06
31/12/07
208.3
(89 days)
202.4
(79 days)
138.3
204.1
69.4
87.3
Cash
81.4
73.3
Financial debt
93.8
126.7
in € million
Dividend
Accounts receivable
Inventory
*
*
Trade payables
*
* Only including continuing operations
13 February 2008
Company confidential
Outlook 2008
Results 4Q07 and FY07
Dividend
 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
13 February 2008
Company confidential
Dividend
Results 4Q07 and FY07
Dividend
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
13 February 2008
Company confidential