Barco Nv · EURONEXT:BAR

Barco Nv — FY2014 Earnings Presentation

26 slides from Barco Nv's earnings presentation, Feb 12, 2015

  1. Slide 1: Results FY14

    Results FY14 Encouraging recovery in second half 12 Feb 2015 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 Preliminary remark - “Reported business” referring to the results incl. D&A - “Continued business” referring to the 2014 results excl. D&A and with pro forma 2013 figures where appropriate

  3. Slide 3: I. Financial highlights

    ee Ff |. Financial highlights

  4. Slide 4: Financial highlights 2H14

    Financial highlights 2H14  Orders € 499.6m, 15.9% below last year  Sales € 553.0m slightly (1.3%) below last year  Gross profit margin @ 33.9%  EBITDA € 73.7m or 13.3% 2H14 (in millions of euros) Sales EBITDA EBITDA %  EBIT € 23.9m or 4.3% Entertainment & Corporate 269.2 39.1 14.5%  FCF € 18.2

  5. Slide 5: Financial highlights 2014

    Financial highlights 2014  Orders € 1,011.2m, 12.1% below last year  Sales € 1,051.0m, 9.2% below last year  Gross profit margin healthy @ 33.4%  EBITDA € 128.6m or 12.2% 2014 (in millions of euros) Sales EBITDA EBITDA %  EBIT € 38.2m or 3.6% Entertainment & Corporate 521.5 79.4 15.2% Healthcar

  6. Slide 6: Performance History

    Performance History Group CAGR 2009-2014 CAGR Sales: 10.5% Sales in €m CAGR EBITDA: 39.8% EBITDA in €m 1,156.0 1,158.0 1041.2 149.7 1,051.0 142.7 897.0 1,008.3 159.5 153.2 908.3 736.4 725.3 638.1 130.2 128.6 98.8 133.0 110.8 73.9 107.4 24.1 2007 2008 2009 2010 2011 2012 2013 2014 Sales Discontinued

  7. Slide 7: Editorial comments

    Editorial comments ORDERS & SALES  Order Book  Order Book Reported down to € 433.4m from 460.9 end of 2013  Order Book Restated for divestments & debookings levels with 2013 (in millions of euros) 2H14 1H14 2H13 1H13 Order Book Reported 433.4 479.8 460.9 440.0 Order Book Continuing 302.2 356.0 33

  8. Slide 8: Sales: Geographical breakdown

    Sales: Geographical breakdown AMERICAS EMEA APAC 2014 38% 36% 27% Change YoY -8.7% -8.6% -10.8% 8 Reported business

  9. Slide 9: Editorial comments

    Editorial comments PROFITABILITY  Gross profit margin remains stable @ 33.4%  Indirect costs decline by € 20.6m but increase as % of sales to 34.7% vs 33.3%  All core divisions delivered better EBITDA contributions in the second half, compared to the first half, but LiveDots wiped out the gains 

  10. Slide 10: Income statement

    Income statement In € m 2014 2013 Sales 1,051.0 100.0% 1,158.0 100.0% P/L format ‘reported’ – group including D&A Cost of goods sold (699.5) (66.6%) (771.5) (66.6%) Gross profit 351.5 33.4% 386.5 33.4% Research & development (115.3) (11.0%) (95.5) (8.2%) Other operating result 2014 including € 6.7m

  11. Slide 11: Income statement

    Income statement In € m 2014 2013 P/L format (applying IFRS5) – continuing business + D&A result after taxes (€ 6.1m) Sales 908.4 100.0% 1,008.5 100.0% on separate income statement line ‘Net Cost of goods sold (603.7) (66.5%) (671.7) (66.6%) Gross profit 304.7 33.5% 336.8 33.4% income from discontin

  12. Slide 12: Gap EBITDA – EBIT

    Gap EBITDA – EBIT 2014 2013 Amortization on cap'd development (50.0) (5.5%) (40.2) (4.0%) Impairments on cap'd development (7.2) (0.8%) (0.7) (0.1%) Amortization on other acquired intang. (7.0) (0.8%) (8.7) (0.9%) Depreciations (12.2) (1.3%) (12.8) (1.3%) Gap EBIT to EBITDA (76.5) (8.4%) (62.4) (6.2

  13. Slide 13: EBITDA waterfall 2014 vs 2013 (- € 25.6m)

    EBITDA waterfall 2014 vs 2013 (- € 25.6m) EBITDA in €m 160 2013 Currency Sales Mix, Cost & Indirect R&D cash S&M G&A Other Stock write- Capitalized 2014 150 Pricing Operations expense offs and Developm. Warranty 140 1.0 130 120 2.9 1.5 110 39.7 1.6 7.1 5.8 3.7 100 8.5 133.0 1.4 90 80 107.4 70 Gross

  14. Slide 14: Cash & Balance sheet

    Cash & Balance sheet  € 10.1m free cash flow realized in 2014  € -8m in 1H14 and € 18.2m in 2H14  Lower operating profit and aggravated by softer working capital performance  € 118.6m gross operating cash flow generated (vs € 140.9m in 2013)  € 26.1m increase in working capital Net working capi

  15. Slide 15: II. Divisional results & Business updates

    II. Divisional results & Business updates

  16. Slide 16: Entertainment & Corporate

    Entertainment & Corporate (in millions of euros) 1H14* 2H14 FY14 1H13 2H13 FY13 Sales 252.3 269.2 521.5 306.2 261.7 568.0 EBITDA 40.3 39.1 79.4 48.1 39.0 87.1 EBITDA margin 16.0% 14.5% 15.2% 15.7% 14.9% 15.3%  Orders & shipments as anticipated  DC drops with 25% but confirms global leadership with

  17. Slide 17: Healthcare

    Healthcare (in millions of euros) 1H14 2H14 FY14 1H13 2H13 FY13 Sales 88.4 98.2 186.7 98.6 97.1 195.7 EBITDA 9.7 13.5 23.2 12.2 14.1 26.3 EBITDA margin 11.0% 13.7% 12.4% 12.3% 14.5% 13.5%  Soft first semester in diagnostic imaging and improved results in the second semester  Orderbook for Healthca

  18. Slide 18: Industrial & Government

    Industrial & Government (in millions of euros) 1H14 2H14 FY14 1H13 2H13 FY13 Sales 68.5 91.7 160.2 80.8 88.8 169.6 EBITDA -1.4 6.5 5.1 6.0 4.3 10.3 EBITDA margin -2.1% 7.1% 3.2% 7.4% 4.8% 6.1%  Slow 1H order intake & sales with recovery in Western Europe & North America in the second half while dem

  19. Slide 19: Defense & Aerospace

    Defense & Aerospace (in millions of euros) 1H14 2H14 FY14 1H13 2H13 FY13 Sales 64 78.7 142.7 71.1 78.7 149.7 EBITDA 8.1 13.1 21.2 6.7 13.5 20.2 EBITDA margin 12.7% 16.6% 14.8% 9.4% 17.2% 13.5%  Solid EBITDA contribution; 2013 cost reductions continue to take a hold 19

  20. Slide 20: Ventures

    Ventures (in millions of euros) 1H14 2H14 FY14 1H13 2H13 FY13 Sales 25.7 15.4 41.1 42.7 35.8 78.5 EBITDA -1.8 1.6 -0.3 3.9 5.4 9.3 EBITDA margin -7.0% 10.4% -0.7% 9.0% 15.2% 11.8%  Weak performance in LiveDots  Slower global market demand & delays in combination with project losses in North Americ

  21. Slide 21: III. Executive focus 2015 & Outlook

    III. Executive focus 2015 & Outlook

  22. Slide 22: Outlook 2015

    Outlook 2015 (*) Assuming the euro remains at current levels, management expects flat to single digit growth in sales. On the basis of the improved performance in the second half 2014 management expects also to deliver improved profitability for the full year. (*) Guidance excluding the exceptional

  23. Slide 23: Executive focus 2015

    Executive focus 2015  Restore cash flow performance by improving working capital efficiency  Improve profitability by focusing on target P/L performance & continued cost reductions  Strengthen geographic leadership & reinforce local governance  Rebuild channels in China  Implement Sales excelle

  24. Slide 24: Dividend 2014

    Dividend 2014  The Board of Directors will propose to the General Assembly to increase the dividend from 1.50 euro to 1.60 euro per share to be paid out in 2015, supported by the available cash resources in the company.  In line with Barco’s long term strategy to strengthen its global leadership p

  25. Slide 25: IV. Q&A

    IV. Q&A

  26. Slide 26: www.youtube.com/BarcoTV www.twitter.com/Barco www.facebook.com/Barco

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

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