Barco Nv · EURONEXT:BAR

Barco Nv — H1 2014 Earnings Presentation

23 slides from Barco Nv's earnings presentation, Jul 23, 2014

  1. Slide 1: Results 1H14

    Results 1H14 23 July 2014 Eric Van Zele, President & CEO

  2. Slide 2: Agenda

    Agenda I. Financial highlights II. Divisional results & Business update III. Executive focus & Outlook IV. Q&A 2

  3. Slide 3: I. Financial highlights 1H14

    I. Financial highlights 1H14

  4. Slide 4: Financial highlights

    Financial highlights  Order book: € 480m, 9% growth vs last year  Orders: € 512m, -8% vs last year, -5% in constant currencies  Sales: € 498m, -17% vs last year, -14% in constant currencies  Gross profit margin: 33%, slightly up vs last year  EBITDA: € 55m or 11%  EBIT: € 14m or 3% (in million

  5. Slide 5: Editorial comments

    Editorial comments (in millions of euro) Sales EBITDA EBITDA% Entertainment & Corporate 251.9 41.2 16.3% ORDERS & SALES Healthcare 88.4 9.7 11.0%  Order book robust @ € 480m or +9% y-o-y Industrial & Government 68.5 -1.4 -2.1% Defense & Aerospace 64.0 8.1 12.7%  Orders: - € 40m (all DC) Ventures 2

  6. Slide 6: Editorial comments

    Editorial comments PROFITABILITY  Gross profits up slightly at 33%  Indirect expenses down 7% y-o-y  EBITDA @ 11% vs 12.8% prior year • Fully attributable to LiveDots and I&G • Further cost reduction planned  EBITDA to EBIT gap widens further to 8 ppts • In Q2 amortization exceed capitalization

  7. Slide 7: Cash Flow & Balance sheet

    Cash Flow & Balance sheet  € 55m gross operating cash flow generated (vs € 72m in 1H13)  Cash outflows: Working capital (€ -22m) better than 1H13 (€ -32m) • Trade receivables @ 56 days DSO vs 57 days for 1H13 and 52 days EOY13 • Inventory turns at 2.6 vs 3.0 for 1H13 and 3.2 EOY13 • Trade Payables

  8. Slide 8: Income statement 1H14

    Income statement 1H14 In € m 1H14 1H13 Sales 498.0 100.0% 597.9 100.0% - Restructuring costs for D&A in Cost of goods sold (333.9) (67.0%) (401.9) (67.2%) 1H13 Gross profit 164.1 33.0% 195.9 32.8% - Provisions taken in FY13 Research & development (51.2) (10.3%) (46.3) (7.7%) covered restructuring co

  9. Slide 9: EBITDA waterfall 1H14 vs 1H13 (- € 22m)

    EBITDA waterfall 1H14 vs 1H13 (- € 22m) EBITDA in €m 90 1H 2013 Currency Sales Mix, Cost & Indirect R&D cash S&M G&A Other Stock write- Capitalized 1H 2014 80 Pricing Operations expense offs Developm. 4.5 70 60 1.7 0.3 0.4 33.4 50 7.5 0.2 2.8 0.7 2.8 40 76.7 30 54.9 20 Gross margin -35.1 Opex reduct

  10. Slide 10: Geographical breakdown of sales

    Geographical breakdown of sales THE AMERICAS EMEA APAC 1H14 38% 37% 25% Growth -21% -8% 27% -21% 10

  11. Slide 11: Order book evolution

    Order book evolution 510 1.10 500 490 1.05 480 470 1.00 460 450 0.95 440 430 420 0.90 410 400 0.85 12Q1 12Q2 12Q3 12Q4 13Q1 13Q2 13Q3 13Q4 14Q1 14Q2 Order book Average Orderbook 2012 - ytd Linear (Trend Book-to-bill) 11

  12. Slide 12: Orders & Sales evolution

    - Orders & Sales evolution Change Rate - Avg. LTM Orders: (3.7%) Change Rate - Avg. LTM Sales: (13.5%) 400.0 350.0 300.0 — — 260.0 200.0 160.0 100.0 50.0 0.0 1012 2012, 3012 412s 1013, 2013 3Q13 413) 1014) 2a 14 =SOrders mmmSales mm ‘Avg. LTM Orders. == Avg. LTM Sales Group 1011 3Q11 4Q11 1012 2012

  13. Slide 13: II. Divisional results 1H14 & Business updates

    II. Divisional results 1H14 & Business updates

  14. Slide 14: Entertainment & Corporate – 1H14

    Entertainment & Corporate – 1H14 E&C 1H14 1H13 Change % Orders 261.6 283.0 (7.6%) Sales 251.9 306.2 (17.8%) EBITDA 41.2 48.1 (14.3%) EBITDA margin 16.3% 15.7% • Orders & shipments as anticipated • DC global leadership confirmed with wins in Brazil, China & Indonesia • Corporate (ClickShare) continue

  15. Slide 15: Healthcare – 1H14

    Healthcare – 1H14 HC 1H14 1H13 Change % Orders 87.8 92.7 (5.3%) Sales 88.4 98.6 (10.4%) EBITDA 9.7 12.2 (20.1%) EBITDA margin 11.0% 12.3% • 1H top line in Orders and Sales lower than last year • Orderbook for Healthcare record high but delays in call-offs • Sales declined primarily due to softness i

  16. Slide 16: Industrial & Government – 1H14

    Industrial & Government – 1H14 I&G 1H14 1H13 Change % Orders 76.7 85.3 (10.1%) Sales 68.5 80.8 (15.2%) EBITDA (1.4) 6,0 (123.6%) EBITDA margin (2.1%) 7.4% • Slow 1H order intake & sales • Project delays particularly in China (€ -10m) • Shift to LCD-solutions @ lower price point • Expected to ramp up

  17. Slide 17: Defense & Aerospace – 1H14

    Defense & Aerospace – 1H14 D&A 1H14 1H13 Change % Orders 60.5 59.6 1.6% Sales 64.0 71.1 (9.9%) EBITDA 8.1 6.7 21.1% EBITDA margin 12.7% 9.4% • Orders flat & sales down in 1H14 • Weaker second quarter caused by project slippage into the second half of the year • Partially offset by a healthy order in

  18. Slide 18: Ventures – 1H14

    Ventures – 1H14 Ventures 1H14 1H13 Change % Orders 26.1 37.4 (30.1%) Sales 26.2 42.7 (38.7%) EBITDA (2.7) 3.9 (171.1%) EBITDA margin (10.5%) 9.0% • Weak performance in LiveDots • 2 major projects lost due to low cost Asian competition • Margins stable but lack of volume causes EBITDA dip • LiveDots

  19. Slide 19: III. Executive focus 2H14 & Outlook

    III. Executive focus 2H14 & Outlook

  20. Slide 20: Outlook 2H14

    Outlook 2H14 For 2H14: Sales & EBITDA to be better than 2H13. For the full year: Sales and EBITDA to be slightly lower than in 2013. 20

  21. Slide 21: Executive focus 2H14

    Executive focus 2H14 Barco will take steps towards accomplishing its longer term objectives by:  Rightsizing I&G division to a lower revenue base  Increasing focus on cost control & sales for Healthcare & LiveDots  Strenghtening geographic leadership and local governance (China, India)  Further

  22. Slide 22: IV. Q&A

    IV. Q&A

  23. Slide 23: Barco social media links

    www.youtube.com/BarcoTV www.twitter.com/Barco www.facebook.com/Barco

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