27 April 2005, page 1Company Confidential

Results 1Q05

27 April 2005, page 2Company Confidential

Martin De Prycker CEO

April 27, 2005

27 April 2005, page 3Company Confidential

Operational results 1Q05

in € million 1Q 2004 1Q 2005 Growth 1Q 05 /1Q 04 (%)

Orders 153.9 172.4 12.1

Sales 149.2 153.6 3.0

EBITA 15.3 6.4 (58.0)

EBITA % 10.3 4.2 (59.3)

Book-to-bill 1.03 1.12 8.7

$/€ 5% lower in 1Q05

27 April 2005, page 4Company Confidential

Results per quarter

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60

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120

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160

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

OrdersSalesEBI TA

in € million

27 April 2005, page 5Company Confidential

Overall comments 1Q05

• Very good order intake at € 172.4 million, i.e. 12.1 % growth

• Sales 3.0 % above 1Q 2004 • Very good book-to-bill ratio of 1.12 increased the

orderbook at end of 1Q• Gross profit margin reduced to 40 %, due to continued

price pressure in some of our markets, but variable margins stabilize vs 4Q04 thanks to first results of improved supply chain

• EBITA weak at 4.2 %, mainly due to lower gross profit margin and increased investment in Sales & Marketing in Asia and North America

• Actions implemented to improve gross profit margin and reduce operational cost by reducing manpower

• Restructuring cost of € 0.77 million in Media & Entertainment included in EBITA in 1Q, will result in cost saving of € 2.5 million over the remainder of the year

• Increased sales efforts to increase sales to compensate partially for lower margin

27 April 2005, page 6Company Confidential

Evolution of results per division

1Q04 1Q05

Sales % EBITA

Sales % EBITA

%

View 50.6 13.1 51.3 7.8 1.4

Media & Entertainment 36.0 5.5 36.0 -2.3 0.0

Presentation & Simulation

22.7 5.7 23.3 3.6 2.5

Control Rooms 22.1 10.6 24.4 4.1 10.3

Vision 15.1 12.0 16.1 15.5 6.4

Manufacturing Services 27.0 4.8 23.5 -4.7 (13.2)

Eliminations -24.3 -20.8

Total 149.2 10.3 153.6 4.2 3.0

in € million

sales

27 April 2005, page 7Company Confidential

BarcoView (1)

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

OrdersSalesEBI TA

in € million

27 April 2005, page 8Company Confidential

BarcoView (2)

• Orders – Good book-to-bill ratio of 1.1– Orders in Defense & Security weak vs 1Q04– Orders in Medical have grown strongly vs 1Q04 with success

in North America and Europe– Strong orders in Traffic Management, with first large

successes in Vessel Traffic

• Sales– Strong sales growth in Medical confirms strong market– Defense and Traffic Management deliveries weaker than last

year

• Margins– Gross profit margin stable at 44.2 %– Profit margin at 7.8 % weaker than last year, because of

higher operational cost (esp. Voxar R&D and S&M)

• Supply chain– Actions are taken to reduce supply chain risks

27 April 2005, page 9Company Confidential

Barco Media & Entertainment (1)

-5

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4045

50

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

OrdersSalesEBI TA

in € million

27 April 2005, page 10Company Confidential

Barco Media & Entertainment (2)

• Orders– High book-to-bill ratio of 1.21– High order level in Events, especially with projectors and new

indoor/outdoor LED– Strong Media orders, especially in Asia and Europe – Digital Cinema orders continue to grow

• Sales– Flat sales year on year– Media sales high in Europe and Asia, but weaker in US– Good Events sales worldwide (lower in US), particularly for

projector products– Slightly weaker sales in Digital Cinema

• Margins– Gross profit margin at 33.3 %– Refocusing of our media business on more profitable niches,

and stopping manufacturing in US, resulted in worldwide manpower reduction of 65 people

– EBITA margin almost break-even before restructuring cost of € 0.77 million

• New products introduced– Projection : “RLM R6+” (entry-level 3 chip SXGA+)– LED : Indoor/Outdoor SMD “O-Lite-510”

27 April 2005, page 11Company Confidential

Barco Presentation & Simulation (1)

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

OrdersSalesEBI TA

in € million

27 April 2005, page 12Company Confidential

Barco Presentation & Simulation (2)

• Orders– Orders at a lower level than 1Q04, mainly in US– Orders for new projector at high level compensate

for price pressure in mid-range projector market– Book-to-bill ratio of 1.01

• Sales– Presentation

• Lower than 1Q04 because of price erosion in mid-range product, but first good sales of high-end projector

– Simulation• Sales higher than 1Q04, but weak in civil aviation

• Margins– Gross profit margin at 40.6 %– Weaker EBITA margin at 3.6 % because of lower

volumes, and continued price pressure in mid-range projector market

27 April 2005, page 13Company Confidential

Barco Control Rooms (1)

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

OrdersSalesEBI TA

in € million

27 April 2005, page 14Company Confidential

Barco Control Rooms (2)

• Orders– Continued strong growth in orders vs 1Q04, growing with

32 %– Book-to-bill at 1.24, increasing backlog

• Sales– Good sales in all segments, particularly strong in Traffic &

Surveillance– High growth in Asia and Europe

• Margins– Gross profit margin down at 39.7 % but variable profit

margin stabilizing vs 4Q04 thanks to cost down actions, although still lower than 1Q04

– EBITA margin weak at 4.1 % because of lower volume– Cost improvement actions and shifting of the majority of

manufacturing to India, will result in gradual improvement of margins

27 April 2005, page 15Company Confidential

BarcoVision (1)

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25

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

OrdersSalesEBI TA

in € million

27 April 2005, page 16Company Confidential

BarcoVision (2)

• Sales & Orders– Book-to-bill weak at 0.86– Good sales level in 1Q05 thanks to some orders of

2004– Weaker orders and sales in systems business

because of uncertainty w.r.t. WTO impact

• Margins– Gross profit margin at 44.7 %, better than 1Q04– EBITA margin very good at 15.5 % thanks to

excellent cost control

27 April 2005, page 17Company Confidential

Barco Manufacturing Services (1)

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

OrdersSalesEBI TA

in € million

27 April 2005, page 18Company Confidential

Barco Manufacturing Services (2)

• Sales– Sales 13 % lower than last year

• Margins– EBITA margin at –4.7 %, weak due to lower volume

and price pressure in electronic manufacturing– In order to improve profitability, actions will be

taken to further reduce cost of operations

27 April 2005, page 19Company Confidential

Geographical breakdown of sales

52.5%

18.3%

29.2%

52.1%

31,0%

16.9%

EMEA AMERI CAS ASI APAC.

1Q 2004

1Q 2005

27 April 2005, page 20Company Confidential

Key figures Income Statement 1Q05

in € million 1Q04 % 1Q05 %

SalesCost of goods sold

149.2-83.4

100.0-55.9

153.6-92.8

100.0-60.4

Gross ProfitResearch & DevelopmentSales & MarketingGeneral & AdministrationOther operating result

65.9-15.5-25.6-11.3

1.9

44.1-10.4-17.2-7.61.3

60.8-16.0-28.4-13.0

3.0

39.6-10.4-18.5-8.41.9

EBITAGoodwill amortization

15.3-1.8

10.3-1.2

6.40.0

4.20.0

Operating Result 13.5 9.0 6.4 4.2

Non-operating result 0.4 0.3 -0.1 -0.1

Income Taxes -3.9 -2.6 -1.4 -0.9

Net Income 10.0 6.7 4.9 3.2

Current Cash Flow 24.2 16.1 18.2 11.8

Current Earnings per Share (in €) 0.96 0.40

Net Earnings per Share (in €) 0.81 0.40

27 April 2005, page 21Company Confidential

Key figures Balance Sheet

in € million 31/03/04 31/12/04 31/03/05

Accounts Receivable 143.4 166.2 155.4

Inventory 128.7 144.0 154.7

Cash 140.4 90.6 96.7

Financial debt 41.2 57.9 67.0

27 April 2005, page 22Company Confidential

Expectations 2Q05

• Order target between € 180 – 190 million, vs € 178.6 million in 2Q04

• Sales target: between € 170 – 180 million, vs € 171.5 million in 2Q04

• EBITA between € 14 and 19 million

27 April 2005, page 23Company Confidential

Questions & Answers