Barco Nv · EURONEXT:BAR
Barco Nv — H1 2013 Earnings Presentation
24 slides from Barco Nv's earnings presentation, Jul 19, 2013
Slide 1: Results 1H13
Results 1H13 “Sustained profitable growth” “Barco absorbs two acquisitions and continues to invest in strategic growth” 19 July 2013 Eric Van Zele, President & CEO
Slide 2: Agenda
Agenda I. Financial highlights II. Divisional results & Business update III. Executive focus & Outlook IV. Q&A 2
Slide 3: I. Financial highlights 1H13
I. Financial highlights 1H13
Slide 4: Financial highlights 1H13
Financial highlights 1H13 Orders: € 556.5m, 2.5% growth vs last year Sales: € 597.9m, 12.6% growth vs last year EBITDA: € 76.7m or 12.8%, 5.0% growth vs last year EBIT: € 41.8m or 7.0% (in millions of euros) 1H13 1H12 Change Change % Incoming Orders 556.5 542.9 13.7 2.5% Order book 440.0 501
Slide 5: Editorial comments
Editorial comments Single digit growth in orders, up 2.5% vs 1H12 ▫ Projection Division remains strong (+14%) ▫ Slow order intake for Advanced Visualization & slippage of major projects into Q3 for Healthcare and Defense & Aerospace. ▫ Initial sucesses for Nexxis (Surgical Imaging) and ClickShare ▫
Slide 6: Editorial comments
Editorial comments Profitability on track Gross profits at 32.8% Healthy EBITDA level @ 12.8%, while absorbing acquisitions of projectiondesign® & Awind ▫ Indirect expenses (R&D & Sales & Marketing) up 15.6% (of which 4.6% organic) ▫ Additional non-recurring costs such as inventory step-up (IFRS
Slide 7: Cash Flow & Balance sheet
Cash Flow & Balance sheet € 72.1m gross operating cash flow generated (+5.8% versus 1H12) More cash outflows on Income taxes (€ -11m) & Working capital (€ -32m): - Trade receivables stable (DSOs at 57 days vs 60 days for 1H12 and 48 days EOY12) - Soft inventory increase with inventory turns at 3
Slide 8: EBITDA waterfall 1H13 vs 1H12 (+ € 5m)
EBITDA waterfall 1H13 vs 1H12 (+ € 5m) Gross margin + 25.6 Opex + 23.4 Non cash items + 2.8 • Sales growth of 12.6% (organic growth • Total indirect costs increase • Other income last year included € 3.6m result on 7.7%)* with 15.6%, mainly impact of the liquidation of Barco Manufacturing SRO • Sale
Slide 9: Geographical breakdown sales
Geographical breakdown sales NORTH-AMERICA EMEALA APAC 1H13 32% 41% 27% Growth 11% 5% 28% 9
Slide 10: II. Divisional results 1H13 & Business updates
II. Divisional results 1H13 & Business updates
Slide 11: Projection – 1H13
Projection – 1H13 Projection 1H13 1H12 Change % Orders 262.4 230.5 13.8% Sales 285.4 218.9 30.4% EBITDA 47.6 40.0 19.2% EBITDA margin 16.7% 18.3% • Robust order intake & strong sales performance • DC global leadership with recent sucesses in Latin America and India • Pro AV lifted by projectiondesig
Slide 12: Projection – Business update
Projection – Business update Additional DC sales potential in new markets, China & India Corporate AV and projectiondesign® initiatives in place for favorable growth to offset maturation of DC in Europe & NA ▫ Integration of projectiondesign® progressing well with important restructuring steps c
Slide 13: Healthcare – 1H13
Healthcare – 1H13 Healthcare 1H13 1H12 Change % Orders 92.7 94.2 (1.5%) Sales 98.6 100.2 (1.6%) EBITDA 12.2 12.0 1.6% EBITDA margin 12.3% 12.0% • 1H top line in Orders and Sales slightly lower than last year • Diagnostic market remains healthy but softer modality segment (especially in Western Europ
Slide 14: Healthcare – Business update
Healthcare – Business update New customers added and healthy funnel in emerging markets (Middle East, Latin America) for Diagnostic & Point of Care Continued focus on implementation of growth strategy for the new segments Expected ramp up in Surgical Imaging and Patient Care to fuel increase in
Slide 15: Advanced Visualisation – 1H13
Advanced Visualisation – 1H13 Advanced Visualization 1H13 1H12 Change % Orders 94.5 101.1 (6.4%) Sales 88.9 89.6 (0.8%) EBITDA 5.5 7.5 (19.1%) EBITDA margin 6.1% 8.4% • Slower 1H order intake & flat sales but reassuring Q2 order intake performance • Sales for advanced visualization solutions for hig
Slide 16: Advanced Visualisation Systems – Business update
Advanced Visualisation Systems – Business update Softer order intake (governments postponing decisions) but strong funnel with important projects to get closed in the next months New initiatives gaining traction ▫ More mid-range & productized solutions become available from 3Q13 onwards completi
Slide 17: Defense & Aerospace – 1H13
Defense & Aerospace – 1H13 Defense & Aerospace 1H13 1H12 Change % Orders 59.5 69.2 (14.0%) Sales 71.1 80.4 (11.7%) EBITDA 6.7 7.7 (7.2%) EBITDA margin 9.4% 9.5% • Slow orders & sales in 1H13 • Mainly driven by weak defense spending in all regions • Partially offset by a healthy order intake & sales
Slide 18: Defense & Aerospace – Business update
Defense & Aerospace – Business update Defense & Aerospace making the turn Renewed leadership team Restructuring charge of € 4.6m booked for rightsizing actions (complexity reduction, key accounts, less SKU’s,...) Several major wins on the horizon in both Defense and Avionics Focus on impro
Slide 19: Ventures – 1H13
Ventures – 1H13 Ventures 1H13 1H12 Change % Orders 48.9 50.1 (2.4%) Sales 55.4 42.2 31.3% EBITDA 4.8 4.5 5.1% EBITDA margin 8.6% 10.8% • Barco’s ventures show good growth thanks to a strong turnaround in High End Systems (new console product line) and continued good performance in LiveDots • Also Or
Slide 20: III. Executive focus 2H13 & Outlook
III. Executive focus 2H13 & Outlook
Slide 21: Executive focus 2H13
Executive focus 2H13 Barco intends to take next steps toward accomplishing its long term growth objectives, with executive focus on: 1. Maintaining global leadership in Projection & developing corporate AV market with an expanded product portfolio and broadened channel network 2. Unlocking networkin
Slide 22: Outlook 2H13
Outlook 2H13 On the strength of a solid mid-year performance and based on continued progress integrating acquired businesses and improving operational efficiency, Barco reiterates its expectation to generate profitable growth albeit at a slower pace than in 2012 22
Slide 23: IV. Q&A
IV. Q&A
Slide 24: One Barco Thank you!
Visibly yours One Barco