26 july 05, page 1 company confidential results second quarter 2005 and 6 months ended 30 june 2005

26 July 05, page 1Company Confidential

Results Second Quarter 2005 and Results Second Quarter 2005 and

6 months ended 30 June 20056 months ended 30 June 2005


Martin De PryckerMartin De PryckerCEOCEO

26 July 200526 July 2005


Operational results 2Q 2005 and 1H 2005 *

In € million

2Q04 2Q05 Growth 2Q05/2Q04

1H04 1H05 Growth 1H05/1

H04

Orders 178.6 185.6 3.9% 332.5 358.0 7.7%

Sales 171.5 176.9 3.1% 320.7 330.5 3.1%

EBITA 18.6 15.5 -16.9% 33.9 21.9 -35.5%

EBITA % 10.9 8.7 10.6 6.6

Book-to-bill

1.04 1.05 1.04 1.08

* €/$ 4.4% lower in 2Q05 vs 2Q04 2004 restated for cost of stock options


Results per quarter

0

20

40

60

80

100

120

140

160

180

200

1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05

OrdersSalesEBI TA

in € million


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


Evolution of results per division

in € million Sales % EBITA Sales % EBITA ∆ Sales

View 54.0 13.5 56.9 9.8 5%

Media & Entertainment 43.7 6.5 43.9 5.9 0%

Presentation & Simulation

28.2 12.7 26.2 7.0 (7%)

Control Rooms 25.4 14.4 30.0 8.1 18%

Vision 14.5 9.9 14.4 21.0 (1%)

Manufacturing Services 30.8 -0.6 27.2 0.2 (12%)

Eliminations -25.0 -21.7

Total 171.5 10.9 176.9 8.7 3.1%

2Q04 2Q05


BarcoView (1)

0

10

20

30

40

50

60

70

1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05

OrdersSalesEBI TA

in € million


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


Barco Media & Entertainment (1)

-50

510

1520

25

3035

4045

50

1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05

OrdersSalesEBI TA

in € million


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


Barco Presentation & Simulation (1)

0

5

10

15

20

25

30

35

1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05

OrdersSalesEBI TA

in € million


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


Barco Control Rooms (1)

0

5

10

15

20

25

30

35

1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05

OrdersSalesEBI TA

in € million


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


BarcoVision (1)

0

5

10

15

20

25

1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05

OrdersSalesEBI TA

in € million


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


Barco Manufacturing Services (1)

-5

0

5

10

15

20

25

30

35

1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05

OrdersSalesEBI TA

in € million


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


Geographical breakdown of sales

30,6%

18,2%

51,2%

EMEAAMERI CASASI APAC.

1H05

1H04

30,6%

50,2%

19,2%


Key figures Income Statement 2Q05

in € million 2Q04 % 2Q05 % 1H04 % 1H05 %Sales 171,5 100,0 176,9 100,0 320,8 100,0 330,5 100,0Cost of goods sold -95,8 55,9 -102,1 -57,7 -179,2 -55,9 -195,0 -59,0Gross Profit 75,7 44,1 74,8 42,3 141,6 44,1 135,6 41,0Research & Development -16,7 9,7 -16,2 -9,2 -32,2 -10,1 -32,2 -9,7Sales & Marketing -27,8 16,2 -29,6 -16,7 -53,5 -16,7 -58,0 -17,5General & Administration -12,5 7,3 -14,1 -7,9 -23,9 -7,4 -27,0 -8,2Other operating result 0,0 0,0 0,6 0,3 1,9 0,6 3,5 1,1EBI TA 18,6 10,9 15,5 8,7 33,9 10,6 21,9 6,6Goodwill amortization -1,8 -1,1 0,0 0,0 -3,7 -1,2 0,0 0,0Operating Result 16,8 9,8 15,5 8,7 30,2 9,4 21,9 6,6Non-operating result 0,4 0,2 -0,3 -0,2 0,8 0,3 -0,5 -0,1I ncome Taxes -4,6 -2,7 -3,4 -1,9 -8,5 -2,6 -4,8 -1,5Net I ncome 12,6 7,4 11,7 6,6 22,6 7,1 16,5 5,0Current Cash Flow 29,2 17,0 25,8 14,6 53,3 16,7 44,0 13,4Current Earnings/ Share (in €) 1,18 0,96 2,14 1,36Net Earnings/ Share (in €) 1,03 0,95 1,84 1,35


Key figures Balance Sheet

in € million 30/06/04 31/12/04 30/06/05

Accounts Receivable

154.7 166.2 173.7

Inventory 143.1 144.0 167.8

Cash 124.2 90.6 87.4

Financial debt

56.5 57.9 104.3

• Dividend payment: € 25.3 million

• Share buyback 1H05: € 4.2 million


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


Questions & Answers

26 july 05, page 1 company confidential results second quarter 2005 and 6 months ended 30 june 2005

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