Slide 1: Results 1H23 - Analyst & Investor call
Results 1H23 - Analyst & Investor call 10% sales growth, fueled by strong performance of Entertainment Step-up in profitability with EBITDA margin at 12.5% An Steegen & Ann Desender – July 19th 2023 - 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 1H23
Executive summary | Group results 1H23 10% sales growth, fueled by strong performance Entertainment 60% revenue from eco-labelled products Orderbook @ € 506m ; book-to-bill > 1 EBITDA margin growing to 12.5%, +2.7ppts yoy Better product mix, yielding from gross profit actions and eased supply chain
Slide 4: Financial Highlights
Financial Highlights 10% sales growth, step up in profitability to 12.5% vs. 1H22 • Double digit sales growth ORDERS +6.3% • Sales ↑ € 48m, growth in all regions, highest in EMEA; APAC € 541.1m hampered by China SALES € 520.9m +10.2% • Orderbook @ € 505.8m, € +9.3m vs year-end ‘22 Gross profit • EBI
Slide 5: Sales growth by division 1H23
Sales growth by division 1H23 Sales growth in all regions, highest in EMEA while APAC is tempered by China EMEA 15% • Growth driven by high demand in Cinema and Immersive Experience • For Enterprise and Healthcare, slower investments in Western Europe result in some project delays AMERICAS 8% •
Slide 6: EBITDA @ € 65m, 12.5% of sales, +2.7ppts
EBITDA @ € 65m, 12.5% of sales, +2.7ppts Solid EBITDA margins in all 3 divisions; strong EBITDA accretion in Entertainment HC 12.5% 10% of Sales ENP 15.7% 9.8% Gross Profits up Opex up € 20m of Sales € 34m ENT 12% 1H22 1H23 Sales +10% Inflation & investments in product portfolio and commercializatio
Slide 7: Net income @ € 33m
Net income @ € 33m Net income up € 11m, net of EBITDA accretion and restructuring cost for Large Video Walls (in millions of euro) 1H23 1H22 Δ 22 EBITDA 65.0 46.2 18.8 % Sales Change (ppts) 12.5% 9.8% 2.7 • Restructuring linked to strategic review Depreciations & amortizations (17.5) (19.4) 1.9 Larg
Slide 8: Free cash flow & Balance sheet
Free cash flow & Balance sheet Investments in recurring revenues and manufacturing footprint – ROCE up to 18% • 1H23 Free cash flow € -24m • Gross operating cash flow at € 62m, + € 17m yoy • Capex uptake to € 21m including Cinema-as-a-Service contracts and manufacturing footprint • Working capital i
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) 1H23 1H22 Change 1H23 1H22 Change 60% 38% +22 ppts 48 45 +3 • Target 2023: 70% • Target 2023: 50 • Improvement in all business units, with • Improvement across regions and divisions key dr
Slide 10: Results 1H23 Divisions
Results 1H23 Results 1H23 3 Divisions Divisions
Slide 11: Healthcare
Healthcare (in millions of euro) Healthcare 1H23 Δ 1H22 Strong sales in radiology and digital pathology, overall lower post- Orders 141.3 -14.0% pandemic investments, gap between phasing-out and -in of large Sales 147.3 -10.2% surgical contracts EBITDA 14.7 (6.9) % Sales Change (ppts) 10.0% -3.2 • S
Slide 12: Enterprise
Enterprise (in millions of euro) Enterprise 1H23 Δ 1H22 Winning momentum and gaining share with ClickShare while facing Orders 143.0 3.9% project delays in Large Video Walls due to uncertain investment climate Sales 145.6 -2.1% EBITDA 22.9 (4.4) % Sales Change (ppts) 15.7% -2.7 • Modest growth in or
Slide 13: Entertainment
Entertainment (in millions of euro) Entertainment 1H23 Δ 1H22 Strong demand across markets, despite weak performance in China, Orders 256.7 23.9% allowed for operating leverage and margin accretion in both business Sales 228.0 42.5% units EBITDA 27.4 30.1 % Sales Change (ppts) 12.0% 13.7 • Very stro
Slide 14: Large Video Walls Strategic review
Large Video Walls Strategic review
Slide 15: Large Video Walls – Strategic review
Large Video Walls – Strategic review Accelerating investments in software and operator workflow solutions Changing market dynamics : growing importance of operator workflows, hybrid collaboration and distributed working in a secure and sustainable way Barco is committed to this market, with 30 y
Slide 16: Large Video Walls – Strategic review
Large Video Walls – Strategic review Sustained profitability by accelerating investments in software portfolio and optimizing organization Transformation plan along 3 axes: Focus on profitable Rebalanced R&D portfolio Future-proof organization product & markets • Focus on control rooms • Rebalance R
Slide 17: Outlook & closing
Outlook & closing
Slide 18: Outlook 2023
Outlook 2023 Reconfirming sustainable profitable growth The following statements are forward looking on a like-for-like basis and actual results may differ materially Sales and EBITDA margin are expected to be higher in the second half of the year than in the first half of the year. We are expecting
Slide 19: Q&A
Q&A
Slide 20: Stay tuned
Stay tuned Financial calendar 2023 Wednesday 18 October Trading update 3Q23 More information? Please visit our webpage https://www.barco.com/investors 20
Slide 21: Visioneering a bright tomorrow
Visioneering a bright tomorrow