results third quarter 2003
DESCRIPTION
Results Third Quarter 2003. Martin De Prycker President & CEO November 6, 2003. Operational results Q3 2003 and YTD 2003. Results per quarter. in € mio. Overall comments Q3 2003. Comparable sales growing 6.2% at unchanged €/$ vs Q3 2002 Nominal sales flat vs Q3 2003 - PowerPoint PPT PresentationTRANSCRIPT
6 November, page 1Company Confidential
Results Third Quarter 2003
Martin De PryckerPresident & CEO
November 6, 2003
6 November, page 2Company Confidential
Operational results Q3 2003 and YTD 2003
in € mio Q3 2002 YTD 2002
Q3 2003 YTD 2003
Growth Q3 03 / Q3 02
Ordersnominal
163.5 521.8 147.1 474.1 -10.0%
Orderscomparable
163.5 521.8 156.8 515.0 -4.1%
Sales nominal
145.8 474.1 145.2 454.3 -0.4%
Sales comparable
145.8 474.1 154.9 493.4 +6.2%
EBITA 10.5 43.3 10.1 42.9 -3.6%
EBITA % 7.2 9.1 6.9 9.4 -3.2%
6 November, page 3Company Confidential
Results per quarter
0
20
40
60
80
100
120
140
160
180
200
Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03
OrdersSalesEBI TA
in € mio
6 November, page 4Company Confidential
Overall comments Q3 2003
• Comparable sales growing 6.2% at unchanged €/$ vs Q3 2002
• Nominal sales flat vs Q3 2003• Weak orders and sales in July and August but strong
retake in September, continuing in October• Book-to-bill ratio at 1.01 lower than Q3 2002, because of
long term contracts in ATC and defense in Q3 2002• EBITA at 6.9%, slightly lower than Q3 2002 (7.2%),
mainly caused by– 5.4 € Mio, due to dollar and pegged currencies decline – Lower gross profit from 44% to 42% because of unfavorable
product mix and higher relative indirect manufacturing cost– Partially compensated by increasing efficiency
• Net income 6.7 € mio vs 5.9 € mio, including 0.7 € mio for transaction on Machine Vision and lower taxes 0.6 € mio
6 November, page 5Company Confidential
Evolution of results per division
in € mioQ3 02 Q3 03 Q3 02 Q3 03
BarcoProjection 72.2 74.7 7.3 4.0BarcoView 41.1 46.8 1.7 4.9BarcoVision 23.9 15.7 2.3 2.0Barco Subcontr. 16.7 14.5 0.3 0.3Other -8.1 -6.5 -1.1 -1.1Total 145.8 145.2 10.5 10.1
Sales EBI TA
6 November, page 6Company Confidential
BarcoProjection (1)
0
10
20
30
40
50
60
70
80
90
Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03
OrdersSalesEBI TA
in € mio
6 November, page 7Company Confidential
BarcoProjection (2)• Sales
– Increased sales vs Q3 2002 with 3% nominal– Successes
• In Media market confirmed (both Europe and US), although at a lower margin• In Control Rooms: sales in Asia are picking up again
– Concerns• In Simulation: market remains weak mainly in civil aviation at level of Q2 2003
• Orders– Strong book-to-bill ratio at 1.14 with especially good orders in
• Control Rooms: Broadcast (US, Japan) / Traffic & Surveillance worldwide• Events: confirms market leadership both in Europe and US• Presentation: successes in project solutions (Las Vegas)
– Strong order book basis for strong Q4
• EBITA– Gross profit margin weaker at 42% vs 44% previous quarter,
because of unfavorable product mix, resulting in a weaker EBITA of 5.4 %
– Transition of manufacturing of large volume LED walls to China by Q1 2004 will allow us to reduce cost and be $ insensitive
• Acquisition status• Leyard acquisition completed in September
6 November, page 8Company Confidential
BarcoProjection (3)
• New products introduced• Media: Hi-res LED wall (3 mm pitch) / LCD panel (40 inch)• Events: world record light output projector (XLM)• Events & Media: MiPIX - modular light/video blocks• Simulation: Trace / Gemini – prepackaged solutions
6 November, page 9Company Confidential
Evolution in Media product offering
• Initial (2002) product offering was identical to events, with too high cost with unnecessary features for media
• Early 2003, introduction of S-lite dedicated product with 30% cost reduction versus first product
• Early 2004, cost down version under design for manufacturing in China with another 30% cost reduction
6 November, page 10Company Confidential
BarcoView (1)
-10
0
10
20
30
40
50
60
70
80
Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03
OrdersSalesEBI TA
in € mio
6 November, page 11Company Confidential
BarcoView (2)
• Sales– Total sales YTD increased with 26% vs YTD 2002– Improved sales volume vs Q2 2003 in medical, both in US
and Europe– ATC and Defense & Security: good sales volume vs Q3 2002
(+ 34%), but somewhat lower than Q2 2003
• Orders – Orders in Defense & Security and ATC remain low, but
increased commercial activities are expected to result in an increased order level in Q4
– Orders in medical remain at high level, but move to shorter term, getting us to reduce our delivery times
– Good orders for Avionics and expected good sales in Q4
• EBITA– Good profit margin of 10.5%
• New products introduced– Coronis 3MP Duralight with extended lifetime for medical
applications
6 November, page 12Company Confidential
BarcoVision (1)
0
5
10
15
20
25
30
Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03
OrdersSalesEBI TA
in € mio
6 November, page 13Company Confidential
BarcoVision (2)
• Sales & Orders– Machine Vision no longer included– Weaker sales volume in textile business as we are in
the middle of the low period in this cyclical business
• EBITA– Profit margin remains high at 12.4%, despite lower
volumes
• Machine Vision– The sale of Machine Vision has a non operating result
of 0.7 € mio
6 November, page 14Company Confidential
Barco Manufacturing Services (1)
0
5
10
15
20
25
Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03
OrdersSalesEBI TA
in € mio
6 November, page 15Company Confidential
Barco Manufacturing Services (2)
• Sales & Orders– Weaker sales/orders than Q2 2003
• EBITA– Indirect manufacturing cost not reduced in line with
manufacturing volumes, resulting in a slightly positive result (1.9%), weaker than previous quarter
• Reorganization– Electronic sub-assembly will be streamlined from
4 locations in Belgium and 1 in the Czech Republic to 1 in Belgium for small series and 1 in the Czech Republic for larger series
– Restructuring cost will be taken as a special charge in Q4 and is anticipated around 2.5 € mio, equal to the saving to be realized per year
6 November, page 16Company Confidential
Geographical breakdown of sales
49,8%
16,0%
34,2%
54,4%31,1%
14,5%
EMEAAMERI CASASI APAC.
Q3 2003
Q2 2003
6 November, page 17Company Confidential
Key figures Income Statement
in € mio Q3 02 YTD 02 Q3 03 YTD 03
SalesCost of goods sold
145.8-81.1
474.2-266.5
145.2-83.6
454.3-255.1
Gross ProfitResearch & DevelopmentSales & MarketingGeneral & AdministrationOther operating result
64.7-17.9-23.2-11.9-1.3
207.7-52.8-72.3-37.0-2.3
61.6-17.1-24.5-11.6+1.7
199.2-51.8-74.5-35.4+5.4
EBITAGoodwill amortization
10.5-1.5
43.3-3.8
10.1-1.5
42.9-4.8
Operating Result 9.0 39.4 8.6 38.1
Non-operating result 0.4 -27.3 1.0 1.8
Income Taxes -3.5 -11.8 -2.8 -12.0
Net Income 5.9 0.3 6.7 27.9
Current Cash Flow 22.0 77.7 22.0 74.5
Current Earnings per Share (in €) 0.59 2.60 0.61 2.59
Net Earnings per Share (in €) 0.47 0.03 0.54 2.25
6 November, page 18Company Confidential
Key figures Balance Sheet
in € mio 31/12/02 30/06/03 30/09/03
Accounts Receivable
158.5 148.3 138.7
Inventory 118.0 130.4 115.3
Cash 122.5 101.9 120.4
Financial debt
34.4 25.2 28.5
6 November, page 19Company Confidential
Expectations Q4 2003
• Target orders: 175 - 190 € million, at least 18% higher than Q4 2002 at constant exchange rates
• Target sales: 173 - 183 € million, comparable with Q4 2002 at constant exchange rates
• Target EBITA: between 23 and 29 € million, before the one time restructuring charge of Barco Manufacturing Services of 2.5 € million
• Discussions with partner for dotrix continue• Anticipated tax rate 2003 is 27%