Barco NV · EURONEXT:BAR
Barco NV — FY2015 Earnings Presentation
32 slides from Barco NV's earnings presentation, Feb 11, 2016
Slide 1: Barco - Visibly yours
BARGO® Visibly yours
Slide 2: Results FY15: Double digit growth and healthy cash generation
RESULTS FY15 DOUBLE DIGIT GROWTH AND HEALTHY CASH GENERATION 11 February 2016 Eric Van Zele, President & CEO
Slide 3: Agenda
AGENDA FINANCIAL HIGHLIGHTS EDITORIAL COMMENTS DIVISIONAL RESULTS & BUSINESS UPDATE EXECUTIVE FOCUS & OUTLOOK Q&A 3
Slide 4: Executive Summary
EXECUTIVE SUMMARY I. Vectors of change in 2015 II. Strong performance across all businesses Divestment of D&A ; Focus on three core verticals Orders up 20% Change in capitalization methodology Sales up 13% Restructuring & impairments for Control Rooms & EBITDA @ 7.2%, up from 6.6% Patient Care Healt
Slide 5: Financial Highlights FY15
FINANCIAL HIGHLIGHTS FY15
Slide 6: Financial Highlights FY15
FINANCIAL HIGHLIGHTS FY15 Orders € 1044m, +20% Order book @ € 333m, +10% Sales € 1029m, +13% Gross Profits @ 35%, up 1.5ppts FY15 Sales EBITDA EBITDA % EBITDA* @ € 74.1m, up € 14.4m Entertainment 514.5 43.6 8.5% EBIT @ € 1.7m Enterprise 300.4 11.1 3.7% Net Income @ € 17.4m Healthcare 216.0 19.4 9.0%
Slide 7: Income Statement
INCOME STATEMENT In € m 2015 2014 - Better operating results Sales 1,028.9 100.0% 908.4 100.0% o Sales growth + 13% Cost of goods sold (668.4) (65.0%) (603.7) (66.5%) o Better margins +1.5 ppts Gross profit 360.5 35.0% 304.7 33.5% o Better EBITDA + 0.6 ppts, + € 14.4m Research & development expenses
Slide 8: Editorial Comments: Orders & Sales
EDITORIAL COMMENTS ORDERS & SALES Sales in m € Order intake @ € 1,044m, up 20% compared to 2014 908 1,029 (+13%) Americas up + 35% and double digit growth in other regions Healthcare All divisions show robust growth numbers 216.0 +16% Order book @ € 333m, up 10% compared to EOY14 186.7 300.4 +16% En
Slide 9: Editorial Comments: Profitability
EDITORIAL COMMENTS PROFITABILITY Gross Profit Margin up 1.5 ppts to 35% Total operating expenses @ 30% Up in absolute value partly due to FX impact and growth investments EBITDA @ € 74m (vs € 60m in 2014) Prior year included € 6.7m gain on Orthogon All divisions delivered improved profitability 9
Slide 10: Geographical Breakdown Sales
GEOGRAPHICAL BREAKDOWN SALES AMERICAS EMEA APAC FY15 37% 33% 30% Change vs +16% +4% +21% 2014 10
Slide 11: EBITDA Improvement 2015 (+€14.4m)
EBITDA IMPROVEMENT 2015 (+ € 14.4M) 120 110 EBITDA Currency Sales Gross profit R&D S&M G&A Other EBITDA 2014 2015 100 90 6.4 5.8 5.0 80 32.0 18.6 70 2.3 2.3 60 50 40 74.1 30 59.7 20 Gross Profits +11.4 Opex (26.7) 10 0 Development not capitalized anymore Sales increase in all regions Opex at 3
Slide 12: Net Income Evolution
NET INCOME EVOLUTION In 2015 several bookings were made with a non-recurring but material impact on Barco’s net result: 1. Change in accounting treatment of development expenses 2. Restructuring of Control Rooms and Patient Care, leading to restructuring costs and goodwill impairments 3. Income from
Slide 13: Net Income Evolution (-€6.5m)
NET INCOME EVOLUTION (- € 6.5M) Net income in €m 70 Net income EBITDA Change Amortizations & Net income Restructuring Interest Taxes Minority Net income 60 2014 accounting depreciations discont'd ops and goodwill interest and 2015 treatment impairment result equity 50 development shareholdings 40 30
Slide 14: Cash & Balance Sheet
CASH & BALANCE SHEET € 265m net cash (vs € 63m EOY14) Including proceeds from sale of D&A After dividend and acquisition of Advan € 63m gross operating cash flow (vs € 97m in 2014) but no expenditure on product development (vs € 48m in 2014) Strong improvement in working capital Trade receivables wi
Slide 15: Free Cash Flow
FREE CASH FLOW [In thousands of euros] 2015 2014 Change EBIT after restructuring and goodwill impairment (27.4) 27.5 (54.9) Impairment of capitalized development costs and goodwill 25.6 7.2 18.4 Gain on sale Orthogon (1.4) (6.7) 5.2 Amortization capitalized development cost 44.6 50.0 (5.4) Improved
Slide 16: Divisional Results FY15 & Business Update
DIVISIONAL RESULTS FY15 & BUSINESS UPDATE
Slide 17: Entertainment
ENTERTAINMENT Cinema Venues & Hospitality 17
Slide 18: Entertainment
ENTERTAINMENT Change vs (in millions of euros) FY15 FY14 FY14 Orders 536.4 431.2 +24.4% Sales 514.5 459.7 +11.9% EBITDA 43.6 34.3 +27.2% EBITDA margin 8.5% 7.5% Orders & Sales: Robust growth Cinema strong with contributions from deployments in Latam and China V&H on track with good uptake of Image P
Slide 19: Enterprise
ENTERPRISE CORPORATE CONTROL ROOMS 19
Slide 20: Enterprise
ENTERPRISE Change vs (in millions of euros) FY15 FY14 FY14 Orders 287.0 255.5 +12.3% Sales 300.4 259.8 +15.6% EBITDA 11.1 8.7 +27.6% EBITDA margin 3.7% 3.4% Orders & Sales Strong growth in Corporate with ClickShare, and stable performance in Control Rooms Profitability Restoring profitability in 2H1
Slide 21: Healthcare
HEALTHCARE DIAGNOSTIC IMAGING SURGICAL 21
Slide 22: Healthcare
HEALTHCARE Change vs (in millions of euros) FY15 FY14 FY14 Orders 221.2 181.0 +22.2% Sales 216.0 186.7 +15.7% EBITDA 19.4 10.3 +88.4% EBITDA margin 9.0% 5.5% Orders & Sales Sales growth in all developed regions compared to 2014 Strong growth with Surgical ; both in EMEA (500+ installs) and North Ame
Slide 23: Executive Focus, Outlook & Dividend
EXECUTIVE FOCUS, OUTLOOK & DIVIDEND
Slide 24: Dividend 2015
DIVIDEND 2015 It remains Barco’s objective to generate consistent dividend growth for its shareholders. The Board of Directors will therefore propose to the General Assembly to increase the dividend from 1.60 euro to 1.75 euro per share to be paid out in 2016. 24
Slide 25: The Road Ahead – 2016 Priorities
THE ROAD AHEAD – 2016 PRIORITIES Invest in technology to maintain our lead in the core Global leadership in visualization technology: laser and laser phosphor, image processing, LCD and LED Leadership in connectivity & interactivity China/India focus Strengthen sales/channel partner network in emerg
Slide 26: Outlook
OUTLOOK Taking into current uncertain macro-economic evolutions and assuming currencies at current levels, management expects for sales to grow in the mid-single digit range. Including continued investments in planned growth initiatives in our core business, we expect organic EBITDA for the year 201
Slide 27: Q&A
Q&A
Slide 28: 28
28
Slide 29: Addendum
ADDENDUM
Slide 30: Financial Highlights 2H15
FINANCIAL HIGHLIGHTS 2H15 Orders € 521m, +25% Order book € 333m, +10% Sales € 523m, +10% Gross Profits @ 34.7%, up 0.9ppts 2H15 Sales EBITDA EBITDA % EBITDA @ € 33.5m, -€ 3.9m Entertainment 250.1 16.1 6.4% Excluding impact Orthogon, up € 2.8m Enterprise 161.5 9.6 6.0% EBIT @ -€ 5.7m Healthcare 111.3
Slide 31: Editorial Comments 2H15
EDITORIAL COMMENTS 2H15 ORDERS & SALES Order book @ € 333m, flat with 1H15 and up 10% compared to EOY14 Order intake @ € 521m, flat with 1H15 and up 25% compared to 2H14 The Americas at + 40% and double digit growth % for the 2 other regions Entertainment & Healthcare showing robust growth numbers @
Slide 32: Editorial Comments 2H15: Profitability
EDITORIAL COMMENTS 2H15 PROFITABILITY EBITDA @ 6.4% vs 7.9% in prior year Prior year included € 6.7m gain on Orthogon Increased expenses primarily due to growth initiatives Very strong cash generation due to reductions in working capital and strong gross operating cash flow 32