Barco NV · EURONEXT:BAR
Barco NV — H1 2012 Earnings Presentation
23 slides from Barco NV's earnings presentation, Jul 20, 2012
Slide 1: Results 1H12 - One Barco
Results 1H12 One Barco Barco delivers solid performance Eric Van Zele CEO 20 July 2012
Slide 2: Agenda
Agenda Financial highlights Divisional results Executive focus & Outlook Q&A Slide 2
Slide 3: Financial highlights 2Q12 & 1H12
Financial highlights 2Q12 & 1H12
Slide 4: Financial highlights 2Q12
Financial highlights 2Q12 Incoming Orders @ € 283.3m (6% above last year and 9% above 1Q12) Order book @ € 501.5m, up 7m vs 1Q12 Sales € 290.9m, 16% above last year (+€ 40m) and 21% above 1Q12 Very strong performance in terms of profitability Sales [in millions of euro] 2Q12 2Q11 Change Ente
Slide 5: Key figures 1H12
Key figures 1H12 [in millions of euro] 1H12 1H11 Change Change % Order book 501.5 479.9 21.6 4.5% Incoming Orders 542.9 560.4 (17.5) -3.1% Sales 531.0 490.3 40.7 8.3% EBITDA 71.7 60.0 11.7 19.6% EBIT 43.5 35.0 8.5 24.3% Net Income 43.5 34.0 9.5 27.9% Free Cash Flow 29.1 (12.7) 41.9 Slide 5
Slide 6: Financial highlights 1H12
Financial highlights 1H12 Order book € 501.5m, 4.5% above last year (+€ 21.6m) Sales € 531.0m, 8.3% above last year (+€ 40.7m) EBITDA € 71.7m (13.5% on sales) ; EBIT € 43.5m (8.2% on sales) Net income € 43.5m (8.2% on sales) Free cash flow € 29.1m vs € -12.7m last year ROCE 19% 1H12 [in
Slide 7: Income statement 1H12
Income statement 1H12 In € m 1H12 1H11 Sales 531.0 100.0% 490.3 100.0% Cost of goods sold (357.9) (67.4%) (343.3) (70.0%) Gross profit 173.1 32.6% 147.0 30.0% Research & development (39.5) (7.4%) (34.4) (7.0%) Sales & marketing (68.9) (13.0%) (58.3) (11.9%) General & administration (25.5) (4.8%) (24
Slide 8: EBITDA waterfall 1H12 versus 1H11
EBITDA waterfall 1H12 versus 1H11 (+ € 11.6m) EBITDA in €m 120 1H11 Currency Sales Mix, Cost & Indirect R&D cash S&M G&A Other Stock write-offs Capitalized 1H12 110 Pricing Operations expense Developm. 100 90 3.8 4.3 80 14.1 10.7 0.9 2.4 0.7 2.1 70 7.2 60 2.7 50 40 Gross Margin +24m Opex +12.1m Non
Slide 9: Geographical breakdown of sales 1H12
Geographical breakdown of sales 1H12 NORTH-AMERICA EMEALA APAC 1H12 33% 44% 23% Change +5% +9% +11% Slide 9
Slide 10: Cash & Balance sheet
Cash & Balance sheet Free cash flow of € 29.1m Complete turnaround vs last year when FCF was negative € -12.7m Robust operating cash flow of € 68.2m Increase in inventories offset by increase in payables Inventory turns at 2.5 compared to 2.2 end of June ‘11 Receivables flat vs year-end 2011
Slide 11: Editorial comments
Editorial comments Orders on track – Incoming orders of € 542.9m, 3% below 1H11 but 4% ahead of 2H11 – Order book remains high at € 501.5m – Book-to-bill > 1 – Sizable new frame agreements not included – Positive growth momentum in APAC & LATAM Sales substantially better than last year – € 531.0
Slide 12: Editorial comments
Editorial comments Solid second quarter – Marked by healthy incoming orders & sizable frame agreements for DC and D&A – Shipping 21% more than in 1Q12 and 16% more than in 2Q11 Continued profitable growth in adverse economic conditions – Regional growth engines: Latam and Apac – Divisional growt
Slide 13: Editorial comments
Editorial comments Increasing profitability despite substantial investments in growth initiatives – Good progress in operational efficiencies – Leveraging scale economies in Entertainment – Good cost controls except in Sales & Marketing Several strategic initiatives launched – Patient care with
Slide 14: Divisional results
Divisional results Slide 14
Slide 15: Entertainment – 1H12
Entertainment – 1H12 Order Intake still robust at € 230.5m – DC strong compared to expectations – Sizable frame agreements signed in 1H12 Strong sales growth compared to last year – DC holds momentum – Continued growth for projectors for events & corporate AV, especially in NA, WE and China Gl
Slide 16: Healthcare – 1H12
Healthcare – 1H12 First time 1H top line exceeds € 100m for Healthcare – Growth of 10% year-on-year – Modality business performs on target, softer business momentum in radiology in Europe Efforts concentrated on executing our growth strategy – Cost burden of growth strategy not offset yet by sal
Slide 17: Control Rooms & Simulation – 1H12
Control Rooms & Simulation – 1H12 Growth in Control Rooms but weakness in Simulation – Good revenue growth in the control rooms segment which is 75% of the division’s revenue – Overall growth impacted by slowness in the large custom project-driven simulation business – Slowness in North America
Slide 18: Defense & Aerospace – 1H12
Defense & Aerospace – 1H12 Orders growing 24% YoY in H1driven by Avionics and ATC Sales growing 18% YoY in H1 Good traction of key account approach Optimized profitability thru narrowed focus on fewer profitable market opportunities – Initiatives in progress to reduce operational costs and i
Slide 19: Ventures – 1H12
Ventures – 1H12 Strong increase in order intake and sales Making progress in strategic repositioning Remarkable turnaround by Livedots – Strong incoming orders – Renewed market leadership in Rental & Staging – Double digit EBITDA contribution Product launch of Clickshare in April – Extremely
Slide 20: Executive focus 2H12 & Outlook
Executive focus 2H12 & Outlook Slide 20
Slide 21: Executive focus
Executive focus Accelerate strategic options Ventures Establish Barco as leader in pro AV market – 4,000 to 10,000 lumen for projectors – ClickShare launch Implement China strategy – Establish low cost capabilities in mainland China Get ‘networked video’ initiative off to a good start Prep
Slide 22: 2H12: Outlook
2H12: Outlook Macro-economic context remains uncertain We believe that Barco’s momentum for profitable growth is sustainable – We will continue to sharpen our focus on the core markets – We will pursue alternative options for some of the other activities We will continue to drive profitability a
Slide 23: Q&A
Q&A Slide 23