Barco NV · EURONEXT:BAR
Barco NV — H1 2016 Earnings Presentation
21 slides from Barco NV's earnings presentation, 2016
Slide 1: Encouraging Results 1H16
ENCOURAGING RESULTS 1H16
Slide 2: Agenda
AGENDA FINANCIAL HIGHLIGHTS EDITORIAL COMMENTS DIVISIONAL RESULTS & BUSINESS UPDATE EXECUTIVE FOCUS & OUTLOOK Q&A 2
Slide 3: Executive Summary
EXECUTIVE SUMMARY STRONGEST SEMESTER SINCE 2013 STEADY PROGRESS IN EACH OF THE CORE VERTICALS Solid gains in Orders, Sales & Profits Continued strong sales in Cinema, driven by momentum in China ◦ Orders & Sales @ +/- 530m euro Expanding the ClickShare portfolio ◦ EBITDA margin @ >9% Introducing las
Slide 4: Financial Highlights & Editorial Comments
FINANCIAL HIGHLIGHTS & EDITORIAL COMMENTS 4
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS Orders € 532.9m, +2% Sales € 529.2m, +4.5% Gross profit @ 35.9%, up 2.6ppts EBITDA @ € 49.5m or 9.3%, up 1.3ppts EBIT @ € 24.1m or 4.6% ◦ 7% excluding accounting rule change Net result € 18.1m ◦ Including one time gain of € 7.7m FCF € -28.9m 1H16 (in millions of euro) Sales EBIT
Slide 6: Income Statement
INCOME STATEMENT Net income € 18.1m or 3.4% on sales: In € m 1H16 1H15 Better operating results Sales 529.2 100.0% 506.2 100.0% o Sales growth +4.5% Gross profit 190.0 35.9% 168.7 33.3% Research & development expenses (56.1) (10.6%) (47.1) (9.3%) o Better gross profit margins +2.6ppts Development (a
Slide 7: Editorial Comments - Orders & Sales
EDITORIAL COMMENTS - ORDERS & SALES Barco’s first semester featured encouraging results on multiple fronts and in all core segments Orders up 2% Sales up 4.5% Entertainment slightly softer in orders but up in sales Enterprise with good growth in orders and sales essentially flat y-o-y Solid growth i
Slide 8: Orders & Sales - Geographical Breakdown
ORDERS & SALES - GEOGRAPHICAL BREAKDOWN AMERICAS EMEA APAC 1H16 (Sales) 37% 32% 31% Change vs 1H15 – Sales +7% +7% +0% Change vs 1H15 –Orders -3% +3% +7.6% 8
Slide 9: Editorial Comments - Profitability
EDITORIAL COMMENTS - PROFITABILITY Obsolescence write-offs and warranty related costs improve yoy Gross Profit Margins up 2.6 ppts Increases in Operational spending to fuel growth ◦ Acquisitions ◦ Growth initiatives in all divisions EBITDA @ 9.3% ◦ In constant currencies EBITDA @ 10.3% AC 8 February
Slide 10: EBITDA Evolution (+€9m)
EBITDA EVOLUTION (+€ 9m) Gross Profits +28.1 Opex (17.6) o Currency impact o Reversals bad debt o Sales increase in Americas and EMEA (both +7%), o OPEX at 26.3% of sales, up 0.8ppts vs last year sales flat in APAC o Increase in OPEX mainly due to growth investments o Gross profit margins up 2.6ppts
Slide 11: Cash Flow & Balance Sheet
CASH FLOW & BALANCE SHEET Base working capital (Inv + AR – AP) now at € 255m or 23.5% of sales (up from 20.7% end of 2015) Cash flow of € -28.9m in 1H ◦ Largely due to sharp increase in inventories: € +27.2m ROCE @ 10% (excluding impact of amortizations on development) Net cash at € 193m per June 30
Slide 12: Free Cash Flow
FREE CASH FLOW € 45.5m gross operating cash flow in 1H16 Group 1H16 1H15 Change 9.3% EBITDA in m€ GROUP GROUP GROUP € 2.6m restructuring charges paid out Gain on sale building excluded from FCF and EBITDA Gross operating cash flow 45.5 38.2 7.3 Changes in trade receivables (1.5) (15.6) 14.0 Increase
Slide 13: Divisional Results & Business Update
DIVISIONAL RESULTS & BUSINESS UPDATE 13
Slide 14: Entertainment
ENTERTAINMENT Solid order intake (vs 1H14 and a challenging comp base in 2015) and up in sales ◦ Continued strong order intake for Cinema, strong in all regions ◦ Major contribution in China where Barco continues to gain market share ◦ Substantial order intake for flagship laser projectors with Cine
Slide 15: Enterprise
ENTERPRISE Orders and sales up ◦ ClickShare growth continues both in EMEA & US ◦ Delay for some sizeable Control Rooms projects Profitability: Strong recovery on divisional level ◦ Mainly driven by ClickShare and with Control Rooms making progress vs 1H15 ◦ Gross profit margin improvement in Control
Slide 16: Healthcare
HEALTHCARE Continued growth momentum in order intake and sales ◦ Growth in Orders in North America (organic and Advan) and Emerging Markets, China & APAC ◦ Sales: Organic sales growth driven primarily by surgical (NA & Japan) and diagnostic (existing regions + China) Profitability on track with stab
Slide 17: Executive Focus & Outlook
EXECUTIVE FOCUS & OUTLOOK 17
Slide 18: Executive Focus 2H16
EXECUTIVE FOCUS 2H16 Smooth CEO transition Right size and trim operational costs where needed Deliver on the strategic projects within Control Rooms including OpSpace and Laser RPC Assess growth investments on potential China/India focus ◦ Strengthen sales/channel partner network in emerging markets
Slide 19: Outlook
OUTLOOK Management expects sales growth for the year to be in the mid-single digit range. EBITDA for the second half is expected to be similar to the second half of 2015, taking into consideration the increased level of growth investment relative to the first half of the year. 19
Slide 20: Thank You
THANK YOU 20
Slide 21: | youtube.com/BarcoTV | linkedin.com/company/Barco | twitter.com/Barco
| youtube.com/BarcoTV | linkedin.com/company/Barco | twitter.com/Barco | facebook.com/Barco 21