Barco Nv · EURONEXT:BAR
Barco Nv — Investor Presentation (February 2003)
43 slides from Barco Nv's investor presentation, Feb 20, 2003
Slide 1: Barco General Presentation
Innovators in image processing BARCO General Presentation February 20, 2003 JP Tanghe: VP Corp Comm & Inv Rel 1
Slide 2: BARCO
BARCO • Founded as the Belgian American Radio Corporation in Poperinge, Belgium, in 1934 • International company, headquartered in Kortrijk, Belgium, with a global presence • Listed on Euronext Brussels, part of BEL 20, Next 150 and component of Dow Jones Sustainability Indexes 2
Slide 3: Worldwide Presence
Worldwide Presence Asia Japan Europe Tokyo, Osaka, Nagoya North America India Germany Delhi, Noida Charlotte (North Carolina) United Kingdom Singapore Kennesaw (Georgia) France China Duluth (Georgia) The Netherlands Beijing, Shanghai, Xenia (Ohio) Italy Chengdu, Guangzhou Beaverton (Oregon) Spain Ho
Slide 4: World Leader in Image Processing
World Leader in Image Processing • Large screen visualization (BarcoProjection) • Visualization for life critical decision-making (BarcoView) • Visual inspection and quality control (BarcoVision) dotrix Subc 1% BCD 7% 12% Vision 14% BPI Projection 19% 53% View 25% BCI 22% 1H02 4
Slide 5: Leading Edge Technology in Vertical Markets
Leading Edge Technology in Vertical Markets Markets Surveillance …… Automotive Flight +++ Broadcast Oil & Gas Telecom Avionics Defense Cinema Medical Utilities Leisure Events Textile Media Food ATC View Control Rooms Media & Events Simulation Vision Projection Networking/Software/Systems Image Proce
Slide 6: BarcoProjection
BarcoProjection BarcoView BarcoVision 6
Slide 7: Market Overview
Market Overview - Control Rooms Barco Control Rooms - Simulation Products - Virtual & Augmented Reality Barco Projector Innovators - Edutainment - Intelligent Displays - Media - Events Barco Creative Imaging - High End Home Theater - Digital Cinema 7
Slide 8: Control Rooms
Control Rooms • Expansion of application markets from Telecom and Utilities towards Broadcast, Traffic, Surveillance • Worldwide leader with 43% of market 8
Slide 9: Simulation and Virtual & Augmented Reality
Simulation and Virtual & Augmented Reality • Simulation Flight, ATC, Ship Bridge, Drive, Gunnery • V&AR Virtual Prototyping: Automotive, AEC Oil & Gas Molecular Modeling, Medical Scientific Research and Education • Edutainment Museums, Science Centers, Aquariums Theme Parks and Leisure Centers Plane
Slide 10: Intelligent Displays
Intelligent Displays • Presentations can be sent to projectors via standard network or Internet, even wireless • Projector functions can be controlled via network or Internet • User can view information on status of all projectors connected to the network • Intelligent Displays to replace standard p
Slide 11: Events
Events • Combines LED, projection and control equipment to provide customized events control solutions to the events and rental & staging industries • A recognized market leader whose products grace the shows of Madonna, U2, Jennifer Lopez and many more 11
Slide 12: Media
Media • Development and production of LED display systems and peripheral equipment targeted at the specific needs of the media and LED Wall Reliant Stadium, Houston, Texas sports markets LED Wall for Coca Cola on Piccadilly Circus in London 12
Slide 13: Digital Cinema
Digital Cinema • Market with a huge potential of ±118.000 theaters worldwide, but still waiting for a business model acceptable by all stakeholders in this market • Increasing number of agreements signed with Cinema theater equipment dealers • Regular “individual” sales of Digital Cinema projectors
Slide 14: High End Home Theater
High End Home Theater • Sales in High End Home Theater market going strong with new product introductions • April 2002: launch of revolutionary home theater concept “Cine VERSUM”, bringing unparalleled digital video quality and flexibility to the home theater of the future Cine VERSUM 14
Slide 15: BarcoView
BarcoProjection BarcoView BarcoVision 15
Slide 16: Market Overview
Market Overview - Air Traffic Control Command & Control - Defense - Airborne - Naval - Landbased - Medical Imaging Medical Imaging Systems - PACS - Modalities - Avionics Avionics 16
Slide 17: Air Traffic Control
Air Traffic Control • ISIS LCD flat panel turning into commercial success as anticipated at introduction in Europe early 2001 • Now also breaking through in Asia and US • Replacement market of some 12,000 workstations worldwide 17
Slide 18: Defense
Defense • High quality ruggedized flat panels, graphic boards, consoles and visualization (sub)systems that can be used in a variety of defense applications, reconnaissance, surveillance and intelligence gathering 18
Slide 19: Medical Imaging
Medical Imaging • Significant market share in PACS (Picture Archiving and Communication Systems) • To be continued and strengthened by introduction of Coronis family of flat panels and ImageTile 19
Slide 20: Avionics
Avionics • Clear acceptance of system concept as adopted over recent years, made possible thanks to important R&D investment • Production series based on this concept are part of long term projects 20
Slide 21: BarcoVision
BarcoProjection BarcoView BarcoVision 21
Slide 22: Market Overview
Market Overview • Textiles: sensors & systems • Spinning • Weaving • Finishing (dyeing) • Plastics • Production monitoring • Optical sorting • Food (French fries, nuts, seafood, vegetables…) • Non food (tobacco, plastic flakes and pellets) 22
Slide 23: Strategy of Barco (1)
Strategy of Barco (1) Consolidate our nr. 1 or nr. 2 position in our key growing markets • Medical (20% to 25% CAGR) • Events (14% on the longer term) • Defense • Simulation and V&AR (6% to 8% CAGR) through internal growth by investing in R&D to improve in • System approach • functionalities • Cost
Slide 24: Strategy of Barco (2)
Strategy of Barco (2) • Expand in new markets • Air Traffic Control: build on change from CRT to LCD (increased market share in 2002 from 5% to 80% of new installations) • Digital Cinema: build on change from analog to digital with a potential of 118.000 theatres (CAGR: 100%, but in its infancy) • M
Slide 25: Results third quarter 2002
Innovators in image processing Results third quarter 2002 25
Slide 26: Operational results Q302
Operational results Q302 in € million Q302 YTD02 Q301 YTD01 Orders 163.6 521.8 146.8 525.3 Sales 145.8 474.2 153.7 492.5 EBIT 11.2 39.9 2.2 42.9 EBIT % 7.7% 8.4% 1.4% 8.7% 26
Slide 27: Orders higher than Sales for 3rd consecutive quarter
Orders higher than Sales for 3rd consecutive quarter (in € million) 200 150 Orders 100 Sales EBI T 50 0 Q101 Q201 Q301 Q401 Q102 Q202 Q302 * Results 2001 “pro forma” i.e. incl. dotrix n.v., Barco Graphics not consolidated 27
Slide 28: Results Barco
Results Barco • Orders: order book has further increased in Q302 by € 18 million • Sales: sales Q302 traditionally weak because of reduction in shipments to European customers due to holiday season Additional impact from • Delayed internal deliveries due to transfer of mechanical manufacturing from
Slide 29: BarcoProjection (1)
BarcoProjection (1) (in € million ) 100 90 80 70 60 Orders 50 Sales 40 EBI T 30 20 10 0 Q101 Q201 Q301 Q401 Q102 Q202 Q302 29
Slide 30: BarcoProjection (2)
BarcoProjection (2) • Sales • Control Rooms: • Growth in new markets compensates low investments from Telecom • Orders Telecom picking up again in Q4 • New stand-alone projector iQ • Has won several awards • Not taking off fast enough yet • Higher market share in V&AR thanks to growth in US market a
Slide 31: BarcoView (1)
BarcoView (1) (in € million) 80 70 60 50 40 Orders Sales 30 EBI T 20 10 0 Q101 Q201 Q301 Q401 Q102 Q202 Q302 -10 31
Slide 32: BarcoView (2)
BarcoView (2) • Orders: • Orders in Security and Defense picking up again for existing and new programs • Ongoing strong orders for ATC and Medical • Sales: ongoing successes in • Air Traffic Control (ATC) • Further market penetration of flat LCD panel, also in USA • Strengthening of market position
Slide 33: Orthogon joined Barco (Oct 1, 2002)
Orthogon joined Barco (Oct 1, 2002) Strategy: ATC is extending its portfolio with software and integration services, also towards end users Market Share Orthogon: • Mainly ATC (80%) and expanding into Security & Defense to offer software and integration services • System integrators and end users •
Slide 34: BarcoVision
BarcoVision (in € million) 30 25 20 Orders 15 Sales EBI T 10 5 0 Q101 Q201 Q301 Q401 Q102 Q202 Q302 • Textile machine market in China and Turkey continues to go strong • Sales weaker in Q3 due to seasonal effect 34
Slide 35: Barco Subcontracting
Barco Subcontracting (in € million) 30 25 20 Orders 15 Sales EBI T 10 5 0 Q101 Q201 Q301 Q401 Q102 Q202 Q302 • Increase in manufacturing with components in consignment results in lower sales but yields higher gross margin 35
Slide 36: Geographical breakdown of Turnover per Activity (%)
Geographical breakdown of Turnover per Activity (%) EU Nafta Asia ROW BarcoProjection 37 35 24 4 BarcoView 28 57 13 3 BarcoVision 60 11 17 12 Total Q302 42 35 19 5 Total 1H02 46 32 16 6 Total 2001 48 30 16 6 36
Slide 37: OWC: Inventory
OWC: Inventory • Inventory on same level as end Q202 due to slack in deliveries and in preparation of higher sales in Q402 in € million 160 143 140 132 128 126 119 120 100 80 60 40 20 0 End 01 Mar J une Sept Target Dec 37
Slide 38: OWC: Accounts Receivable
OWC: Accounts Receivable Days outstanding 100 92 90 84 80 80 75 70 60 50 40 30 20 10 0 End 01 Mar J une Sept (incl. BG) 38
Slide 39: Net cash position
Net cash position in € million 80 70 67.8 60 55.2 56 50 40 30 20 11.8 10 0 end 01 Q102 Q202 Q302 39
Slide 40: Results Q3 & YTD
Results Q3 & YTD in € million Q302 YTD02 Q301* YTD01* EBIT 11.2 39.9 2.2 42.9 Current Result 11.6 40.7 1.4 42.3 Taxes (3.2) (9.6) (0.3) (12.9) Curr. Res. after Taxes 8.4 31.1 1.1 29.4 Extra-Ordinaries 0 (28.1) 0 (0.4) Amort. Of goodwill 1.4 3.6 1.7 5.1 Net result 7.0 (0.5) (0.6) 23.9 Current EPS** 0
Slide 41: Preview Q402
Preview Q402 Sales Q402: 193.9 mio euro vs 175/185 expected = +7% vs Q401 • Better supply of certain components • More deliveries from backlog • More orders to be delivered still in 2002 EBIT Q402: > 31 mio euro vs 21/25 expected 41
Slide 42: Preview Full Year 2002
Preview Full Year 2002 Sales FY2002: 668 mio euro vs 673 in 2001 = -0.8% despite low USD Orders FY2002 vs FY2001: -0.8% EBIT FY 2002: + > 30% vs 2001 > 10% vs sales 42
Slide 43: Innovators in Image Processing
Innovators in Image Processing www.barco.com 43