Slide 1: Results 1H24 - Analyst & Investor call
Results 1H24 - Analyst & Investor call Signs of improvement in Q2, while investing in future growth An Steegen - Charles Beauduin - Ann Desender – July 17th 2024 - Kortrijk
Slide 2: Preliminary notes
Preliminary notes The statutory auditor has confirmed that the audit, which is substantially complete, has not to date revealed any material misstatement in the draft consolidated accounts, and that the accounting data reported in the press release is consistent, in all material respects, with the d
Slide 3: Executive summary | Group results 1H24
Executive summary | Group results 1H24 Sales 17% below last year; picking up as of 2Q Americas pick-up in Q2 with 1H sales ~flat yoy Orderbook up to € 533m, incl orders for new product launches; Book-to-bill >1 64% revenue from eco-labelled products EBITDA at € 35m or 8.1% of sales Gross profit marg
Slide 4: 1H24 sales by region
1H24 sales by region Slow 1Q; improvement as of 2Q with Americas turning to growth AMERICAS ~flat (-2%); 2Q growing yoy on both orders & sales AMERICAS Sales • Solid performance in Diagnostics with strong demand in premium portfolio 46% of group Orders: 1Q 17%, 2Q 11% • Soft demand for Entertain
Slide 5: Dynamic through the first half
Dynamic through the first half Orders and sales recovering in second quarter • Orders below last year; recovery in Q2 driven by (in millions of euro) First half Americas 1Q 2Q QoQ 1H24 Δ 23 • Orders up in Americas for Healthcare & Enterprise (Control Rooms) Orders 220.1 243.2 10.5% 463.3 -14.4% • 2Q
Slide 6: EBITDA @ € 35.2m, 8.1% of sales, OPEX contained
EBITDA @ € 35.2m, 8.1% of sales, OPEX contained EBITDA lower due to operating deleverage on lower topline 12.5% of Sales 8.1% of Sales Gross Profits down Opex down € 6m € 38m 1H23 1H24 Gross profits down with lower sales, but gross profit % more resilient: R&D investments linked to higher in Healthc
Slide 7: Net income @ € 9m
Net income @ € 9m (in millions of euro) 1H24 1H23 Δ 23 • EBITDA impacted by operating deleverage on lower topline EBITDA 35.2 65.0 (29.8) % Sales Change (ppts) 8.1% 12.5% -4.4 Depreciations & amortizations (21.8) (17.5) (4.3) • Restructuring mainly linked to strategic Restructuring (7.8) (6.6) (1.2)
Slide 8: Free cash flow & Balance sheet
Free cash flow & Balance sheet Investments in recurring revenues and manufacturing footprint • 1H24 Free cash flow € 14.6m, step up of € 38.7m vs 1H23 • Gross operating cash flow at € 29.9m • Capex at € 19.1m incl Cinema-as-a-Service contracts and manufacturing footprint (vs € 21m in 1H23) • Working
Slide 9: Further improving on our sustainability KPI's
Further improving on our sustainability KPI’s PLANET COMMUNITIES ECO labelled revenues Net Promotor Score (NPS) 1H24 1H23 Change 1H24 1H23 Change 64%* 60% +4 ppts 52 48 +4 • Progress on track towards target 75% • Target 2024 of 50 reached in 1H24 in 2025 • Improvement across regions, largest uptakes
Slide 10: Divisional Update FY23
Divisional — Update FY23
Slide 11: Healthcare
Healthcare Topline impacted by channel inventory reductions Gross profit margin fueled by software-driven product mix Diagnostic Surgical & Imaging Modality • Market dynamics are healthy, mainly driven by • Customer inventory corrections are now largely Americas with strong demand for premium soluti
Slide 12: Enterprise
Enterprise Meeting Experience impacted by customer inventory reductions Growth in orders and sales for Control Rooms; shifting focus to software Meeting Experience Control Rooms • The meeting room market remains slow at a • Market momentum driven by security and need for single digit decline. ClickS
Slide 13: Entertainment
Entertainment Cinema recovering in second quarter; still impacted by Hollywood strikes Immersive Experience anticipating new products 2H24 Immersive Cinema Experience • Investment delays due to weak movie lineup post- • Order intake recovering during the semester with strike; stronger movie slate ex
Slide 14: Outlook & closing
Outlook & closing
Slide 15: Outlook 2024
Outlook 2024 The following statements are forward looking on a like-for-like basis and actual results may differ materially Management expects topline growth in the second half versus last year. From 2025, we expect topline growth on a full year basis. The EBITDA margin for the full year will depend
Slide 16: Investments in 2024 for future growth
Investments in 2024 for future growth New product Focused Customer Winning culture & Focused factories introductions factories intimacy sustainability New products ready Wuxi factory opened NPS 1H24 Growing share of for launch in 2H24 in May 2024 above target at 52 eco-labelled in all divisions reve
Slide 17: Q&A
Q&A
Slide 18: Stay tuned
Stay tuned Financial calendar 2024 Thursday 17 October Trading update 3Q24 More information? Please visit our webpage https://www.barco.com/investors 18
Slide 19: Visioneering a bright tomorrow
Visioneering a bright tomorrow