Barco Nv · EURONEXT:BAR
Barco Nv — H1 2015 Earnings Presentation
26 slides from Barco Nv's earnings presentation, Jul 22, 2015
Slide 1: Barco - Visibly yours
BARGO® Visibly yours
Slide 2: Results 1H15: Strong first half on higher sales and improved profitability
RESULTS 1H15 STRONG FIRST HALF ON HIGHER SALES AND IMPROVED PROFITABILITY 22 July 2015 Eric Van Zele, President & CEO
Slide 3: Agenda
AGENDA FINANCIAL HIGHLIGHTS EDITORIAL COMMENTS DIVISIONAL RESULTS & BUSINESS UPDATE OUTLOOK 3
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 5: Executive Summary
EXECUTIVE SUMMARY I. Strong Operational Performance Orders up 15.9% Sales up 16.6% Adjusted EBITDA @ 8% Good cash flow @ € 14.5m II. Strong cash position of € 187.7m Strong net cash inflow on divestiture of € 151.5m Substantial pre-tax gain of € 64m III. Change in capitalization methodology Improved
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS Orders € 522.5m, +15.9% Sales € 506.2m, +16.6% Gross Profits @ 35.4%, up 2.1ppts Adjusted EBITDA* @ 8%, up 2.9ppts EBIT @ € 7.5m or 1.5% 1H15 Sales Adjusted Adjusted EBITDA EBITDA % Down 1.4 ppts in “new reporting format” vs 1H14 Entertainment 264.4 27.5 10.4% Up 3.3 ppts in “ol
Slide 7: New Capitalization Methodology
NEW CAPITALIZATION METHODOLOGY Considerations Predictability of current product development Increased transparancy More narrow gap between EBIT and EBITDA More cash orientation and direct transparency in allocation of capital to R&D Avoid disruption of impairments Execution & impact on Balance Sheet
Slide 8: Editorial Comments: Orders & Sales
EDITORIAL COMMENTS Orders & Sales Order book @ 333.1 million euro (slightly lower (-2.9%) vs 1H14; but up 10.2% vs EOY14) Strong growth in Order intake & Sales for both the Americas & the APAC region Sales in m € Robust growth in Entertainment (+16.1%) Mainly fueled by Digital Cinema, China 434.1 50
Slide 9: Geographical Breakdown Sales
GEOGRAPHICAL BREAKDOWN SALES AMERICAS EMEA APAC 1H15 37% 31% 32% Change vs 1H14 +16% -0% +40% 9
Slide 10: Editorial Comments: Profitability
EDITORIAL COMMENTS Profitability Gross Profit Margin up with 2.1 ppts Total operational cash expenses down to 29.2% of sales (vs 30.4%) and up in absolute value partly due to FX impact All divisions show improved profitability Adjusted EBITDA @ € 40.5m (vs € 22.3m in 1H14) 10
Slide 11: Income Statement
INCOME STATEMENT In € m 1H15 1H14 Sales 506.2 100.0% 434.1 100.0% Cost of goods sold (326.9) (64.6%) (289.6) (66.7%) Gross profit 179.3 35.4% 144.5 33.3% Research & development expenses (47.1) (9.3%) (44.3) (10.2%) Development capitalization/amortization (23.3) (4.6%) 0.1 0.0% Sales & marketing (77.
Slide 12: EBITDA Improvement (+ €18.2m)
EBITDA* IMPROVEMENT (+ € 18.2M) 100 EBITDA (minus Currency Sales Gross profit R&D cash S&M G&A Other EBITDA minus 90 capdev) expense capdev 80 1H 2014 1H 2015 70 60 50 1.2 4.1 7.7 0.4 4.0 1.0 40 30 20.5 20 40.5 10 22.3 Gross profit +8.1 Opex (10.1) 0 Development not capitalized as of Sales incre
Slide 13: Cash & Balance Sheet
CASH & BALANCE SHEET € 187.7m net cash (vs € 41m 1H14 and € 63.4m EOY14) € 38.2m gross operating cash flow (vs € 46.8 m in 1H14) € 10.2m increase in working capital Trade receivables with DSO of 65 days (vs 54 days 1H14 and 63 EOY14) Inventory turns were 3.1 (vs 3 turns 1H14 and 2.9 turns EOY14) Tra
Slide 14: Free Cash Flow
FREE CASH FLOW Group 1H15 1H14 Change EBIT 7.5 12.7 (5.2) Amortization capitalized development cost 23.3 24.4 (1.1) Turnaround of € 29m y-o-y Depreciation tangible and intangible FA 9.8 9.7 0.1 Gains and losses on tangible FA (0.2) 0.0 (0.2) - Improved adjusted EBITDA (gross operating cash Gain on d
Slide 15: Net Financial Cash Movement
NET FINANCIAL CASH MOVEMENT Net financial cash increased to € 187.7m After divestment of D&A, dividend pay-out and acquisition of Advan Net cash 31/12/2014 63.3 Free cash flow (reported) 14.1 Proceeds from divestments 153.0 Acquisition Advan (12.1) One Campus (11.4) Dividends paid (19.4) Other, net
Slide 16: Divisional Results 1H15 & Business Update
DIVISIONAL RESULTS 1H15 & BUSINESS UPDATE
Slide 17: Entertainment
ENTERTAINMENT Cinema Venues & Hospitality 17
Slide 18: Entertainment
ENTERTAINMENT (in millions of euros) 1H15 2H14 1H14 Change 1H Orders 297.0 195.5 235.7 +26.0% Sales 264.4 232.0 227.7 +16.2% Adjusted EBITDA 27.5 11.6 22.7 +21.1% Adjusted EBITDA margin 10.4% 5.0% 10.0% Orders & Sales: Robust increases (Orders + 26% ; Sales + 16%) Cinema strong with contributions fr
Slide 19: Enterprise
ENTERPRISE CORPORATE CONTROL ROOMS 19
Slide 20: Enterprise
ENTERPRISE (in millions of euros) 1H15 2H14 1H14 Change 1H Orders 135.2 129.3 126.2 +7.1% Sales 138.9 144.4 115.4 +20.4% Adjusted EBITDA 2.7 14.2 (5.5) N/M Adjusted EBITDA margin 1.9% 9.9% (4.8%) Orders & Sales Corporate: strong 1H15 driven by continued growth of ClickShare Control Rooms: stabilizin
Slide 21: Healthcare
HEALTHCARE DIAGNOSTIC IMAGING SURGICAL 21
Slide 22: Healthcare
HEALTHCARE (in millions of euros) 1H15 2H14 1H14 Change 1H Orders 90.8 93.2 87.8 +3.4% Sales 104.7 98.2 88.4 +18.4% Adjusted EBITDA 10.3 8.4 1.9 +442.0% Adjusted EBITDA margin 9.9% 8.6% 2.1% Orders & Sales Sales growth and strong execution in all major regions compared to 2014 UNITI well received in
Slide 23: Outlook
OUTLOOK
Slide 24: Outlook
OUTLOOK Assuming foreign exchange rates remain at current levels, management expects to grow sales for the year in the high single digit range. Adjusted EBITDA, including planned growth initiatives, will improve moderately year-on-year. 24 These outlook statements are forward looking and actual resu
Slide 25: Q&A
Q&A
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