Barco NV · EURONEXT:BAR
Barco NV — FY2003 Earnings Presentation
32 slides from Barco NV's earnings presentation, Feb 19, 2004
Slide 1: Results Q4 and full year 2003 Analyst meeting
Results Q4 and full year 2003 Analyst meeting 19 February 2004 Martin De Prycker 19 February 04, page 1 Company Confidential
Slide 2: Operational results Q4 2003 and full year 2003
Operational results Q4 2003 and full year 2003 in € mio Q4 2002 2002 Q4 2003 2003 Growth Growth Q4 03 / 03 / 02 Q4 02 Orders 158.9 680.7 188.5 662.6 19% (3%) nominal Orders 158.9 680.7 200.4 715.4 26% 5% comparable ** Sales 194.9 669.0 174.7 628.9 (10%) (6%) nominal Sales 194.9 669.0 188.3 681.8 (3%
Slide 3: Results per quarter
Results per quarter in € mio 200 180 160 140 120 100 Orders 80 Sales EBI TA 60 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 02 02 02 02 03 03 03 03 19 February 04, page 3 Company Confidential
Slide 4: Results Q4 2003
Results Q4 2003 19 February 04, page 4 Company Confidential
Slide 5: Overall comments Q4 2003
Overall comments Q4 2003 • Very good order intake at € 188.5 mio, i.e. 19 % growth at nominal €/$ rate and 26 % growth at comparable rate • High book-to-bill ratio of 1.08 has increased our orderbook for 2004, especially in M&E and Simulation • Gross profit margin improved again to 45 %, despite str
Slide 6: Evolution of results per division
Evolution of results per division in € mio Sales EBI TA Q4 02 Q4 03 Q4 02 Q4 03 BarcoProjection 88.4 94.1 10.6 14.8 BarcoView 70.4 59.1 14.2 11.2 BarcoVision 25.0 13.6 4.1 1.0 Barco Manuf. Serv. 21.0 13.5 0.9 -0.4 Other -10.0 -5.6 -1.8 -0.5 Total 194.9 174.7 28.0 26.2 19 February 04, page 6 Company
Slide 7: BarcoProjection (1)
BarcoProjection (1) in € mio 120 100 80 60 Orders Sales 40 EBI TA 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 02 02 02 02 03 03 03 03 19 February 04, page 7 Company Confidential
Slide 8: BarcoProjection (2)
BarcoProjection (2) • Orders – Strong book-to-bill ratio at 1.15 • Sales – 6 % growth in nominal sales vs Q4 2002 • Margins – Gross profit margin improved to 44 % despite high price pressure, as a result of higher volume – EBITA margin high at 15.7 %, driven by higher volume and continued cost contr
Slide 9: BarcoProjection (3)
BarcoProjection (3) • On January 1, 2004 BarcoProjection was split into 3 separate divisions, reporting on same the level as other divisions • These 3 divisions are – Media & Entertainment • Events • Media • Cinema (digital cinema and high end home cinema) – Control Rooms – Presentation & Simulation
Slide 10: BarcoProjection (4) Media & Entertainment
BarcoProjection (4) Media & Entertainment • Orders – High book-to-bill ratio at 1.2 – Successes in Digital Cinema, Media and Events – Strong price pressure in US/China due to low dollar • Sales – High Media sales in the US and Europe and Events worldwide • Margins – EBITA margin at 9 % below our lon
Slide 11: Acquisition "Folsom Research", January 2004
Acquisition “Folsom Research”, January 2004 • Based in Sacramento, USA with 75 employees • Worldleader in “Beyond Display” products – Image Processing – Image Communication – Image Functionality & Interactivity • Application Markets – Events (Media & Entertainment) -> above 50% – Radar (BarcoView) -
Slide 12: BarcoProjection (5) Control Rooms
BarcoProjection (5) Control Rooms • Orders – Continued strong growth in orders – Book-to-bill at 1.06 • Sales – Good sales in all segments, particularly strong in Traffic & Surveillance – High growth in China, India and Korea; and recovery in Europe • Margins – EBITA margin high at 22 % • New produc
Slide 13: BarcoProjection (6) Presentation & Simulation
BarcoProjection (6) Presentation & Simulation • Orders – Strong order intake with book-to-bill at 1.2 – Good orders in Simulation and Edutainment – Good orders for car design • Sales – Presentation • Good level of sales, especially in large projects with focus on operational cost of our customer • S
Slide 14: BarcoView (1)
BarcoView (1) in € mio 80 70 60 50 40 Orders 30 Sales 20 EBI TA 10 0 -10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 02 02 02 02 03 03 03 03 19 February 04, page 14 Company Confidential
Slide 15: BarcoView (2)
BarcoView (2) • Orders – Book-to-bill ratio at 1.0 – Orders in Defense & Security strong – Orders in Medical remain at high level – Large order volume for Avionics • Sales – Robust sales volume in Avionics – Strong sales volume in medical confirms our market leadership – ATC and Defense deliveries r
Slide 16: BarcoVision (1)
BarcoVision (1) in € mio 30 25 20 15 Orders Sales 10 EBI TA 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 02 02 02 02 03 03 03 03 19 February 04, page 16 Company Confidential
Slide 17: BarcoVision (2)
BarcoVision (2) • Sales & Orders – Machine Vision no longer included since July 2003 onwards – Weaker sales volume in textile business as we are in the middle of the down-cycle, although commercial activity is picking up since ITMA in November 2003 • First volume order received for Cyclops (visual i
Slide 18: Barco Manufacturing Services (1)
Barco Manufacturing Services (1) in € mio 25 20 15 10 Orders Sales 5 EBI TA 0 -5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 02 02 02 02 03 03 03 03 19 February 04, page 18 Company Confidential
Slide 19: Barco Manufacturing Services (2)
Barco Manufacturing Services (2) • Sales & Orders – Weaker sales/orders than Q4 2002 • Margins – Gross profit margin declined from 34 % in Q1 to 31 % – Indirect manufacturing cost not yet fully adjusted to current manufacturing volumes, resulting in a 3 % negative EBITA margin – No impact yet of res
Slide 20: Geographical breakdown of sales
Geographical breakdown of sales Q3 2003 14.5% EMEA AMERI CAS 54.4% ASI APAC. 31.1% Q4 2003 18.3% 51.5% 30.2% 19 February 04, page 20 Company Confidential
Slide 21: Results Full Year 2003
Results Full Year 2003 19 February 04, page 21 Company Confidential
Slide 22: Operational results full year 2003
Operational results full year 2003 in € mio 2002 2003 Growth 03 / 02 Orders 680.7 662.6 (3%) nominal Orders 680.7 715.4 5% comparable ** Sales 669.0 628.9 (6%) nominal Sales 669.0 681.8 2% comparable ** EBITA 71.2 69.1* (3%) EBITA 71.2 90.0 26% comparable ** EBITA % 10.6 11.0 4% Book-to-bill 1.02 1.
Slide 23: Comments full year 2003
Comments full year 2003 • Further focus our organization on image processing for B2B with worldwide leadership – Full exit Esko-Graphics – Sale of dotrix – Sale of Machine Vision – Acquisitions in Media (Trans-Lux West, Leyard) – Acquisition in Events (Folsom in 2004) • Order growth of 5 % at equal
Slide 24: Key figures Income Statement 2003
Key figures Income Statement 2003 in € mio FY 02 % FY 03 % Sales 669.0 100.0 628.9 100.0 Cost of goods sold -372.5 -55.7 -351.0 -55.8 Gross Profit 296.5 44.3 277.9 44.2 Research & Development -70.8 -10.6 -68.4 -10.9 Sales & Marketing -98.0 -14.6 -100.3 -15.9 General & Administration -49.1 -7.3 -45.6
Slide 25: Key figures Balance Sheet
Key figures Balance Sheet in € mio 31/12/02 30/06/03 31/12/03 Accounts 158.5 148.3 149.5 Receivable Inventory 118.0 130.4 103.3 Cash 122.5 101.9 133.4 Financial 34.4 25.2 29.2 debt 19 February 04, page 25 Company Confidential
Slide 26: Overview of R&D
Overview of R&D in € mio 2002 2003 R&D expense 71.5 69.7 Capitalized -35.5 -36.1 Amortized 34.8 34.7 Total 70.8 68.4 19 February 04, page 26 Company Confidential
Slide 27: Expectations 2004
Expectations 2004 19 February 04, page 27 Company Confidential
Slide 28: Growth strategy 2004 (1)
Growth strategy 2004 (1) Vertical markets Products Solutions Image Content & Displays processing applications EU NA APAC 19 February 04, page 28 Geographies Company Confidential
Slide 29: Growth strategy 2004 (2)
Growth strategy 2004 (2) • Main segments where large absolute growth is expected in 2004 through internal and external investments – Medical – Events (incl. Folsom acquisition) – Media (incl. Trans-Lux West & Leyard acquisition) – Surveillance & security • Increase sales and marketing efforts in reg
Slide 30: Expectations 2004: main operational guidelines
Expectations 2004: main operational guidelines • Keep R&D budget around € 70 million, equal to 2003, but with full focus on products within our strategy (exit dotrix, Machine Vision, …) • Further improve pre-sales and post-sales processes to improve customer service and A/R • Implement manufacturing
Slide 31: Expectations Q1 2004
Expectations Q1 2004 • Sales target: between € 147 – 155 million, i.e. more than 6 % year on year growth at constant dollar exchange rate • EBITA of between € 13 and 17 million • Every % decline in the value of the dollar impacts EBITA by around € 1 million on a yearly basis 19 February 04, page 31
Slide 32: Dividend
Dividend Proposal of the Board of Directors to the annual shareholders’ meeting on May 12, 2004 Dividend will be increased to € 2.00 from € 1.92 last year 19 February 04, page 32 Company Confidential