Barco NV · EURONEXT:BAR
Barco NV — Q2 2003 Earnings Presentation
19 slides from Barco NV's earnings presentation, Aug 22, 2003
Slide 1: Results Second Quarter 2003 and 6 months ended June 30, 2003
Results Second Quarter 2003 and 6 months ended June 30, 2003 Martin De Prycker President & CEO August 22, 2003 22 August 03, page 1 Company Confidential
Slide 2: Operational results Q2 2003 and H1 2002
Operational results Q2 2003 and H1 2002 in € mio Q2 2002 H1 2002 Q2 2003 H1 2003 Growth H1 03 / H1 02 Orders 190.7 358.3 169.2 327.1 - 8.7 % nominal Orders 190.7 358.3 186.4 358.2 0.0 % comparable Sales 176.1 328.3 158.0 309.1 - 5.9 % nominal Sales 176.1 328.3 173.3 338.6 + 3.1 % comparable EBITA 21
Slide 3: Results per quarter
Results per quarter in € mio 200 180 160 140 120 Orders 100 Sales 80 EBI TA 60 40 20 0 Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 22 August 03, page 3 Company Confidential
Slide 4: Overall comments Q2 2003
Overall comments Q2 2003 • Comparable sales declining 2 % at unchanged €/$ rate versus Q2 2002 (19.1 % decline) • Nominal sales declining 11 % at actual €/$ rate vs Q2 2002 • Weak economy delayed ordering decisions in April/May, reducing our Q2 sales, but order level picked up again in June • Book-t
Slide 5: Evolution of results per division
Evolution of results per division in € mio Sales EBI TA Q2 02 Q2 03 Q2 02 Q2 03 BarcoProjection 88.7 75.0 11.1 5.4 BarcoView 47.8 51.2 7.2 7.4 BarcoVision 24.9 23.2 3.9 4.4 Barco Subcontr. 22.8 17.2 0.8 1.7 Other -8.1 - 8.7 -1.1 -1.5 Total 176.1 157.9 21.9 17.4 22 August 03, page 5 Company Confident
Slide 6: BarcoProjection (1)
BarcoProjection (1) in € mio 90 80 70 60 50 Orders 40 Sales EBI TA 30 20 10 0 Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 22 August 03, page 6 Company Confidential
Slide 7: BarcoProjection (2)
BarcoProjection (2) • Sales – Market leadership in events confirmed through strong sales levels both in LED and projection – Weak sales caused by economic uncertainty, mainly affecting • Control rooms in utilities • Simulation in civil aviation • Fast market transition from CRT to DLP hurting Home T
Slide 8: BarcoView (1)
BarcoView (1) in € mio 80 70 60 50 40 Orders 30 Sales EBI TA 20 10 0 -10 Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 22 August 03, page 8 Company Confidential
Slide 9: BarcoView (2)
BarcoView (2) • Sales – Air Traffic Control performing well, keeping our market share substantially above 50% – Slightly weaker sales in medical imaging as our customers are depleting their inventory levels • Orders – Strong ATC orders confirm our market leadership – Avionics orders strong – Orders
Slide 10: BarcoVision (1)
BarcoVision (1) in € mio 30 25 20 Orders 15 Sales EBI TA 10 5 0 Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 22 August 03, page 10 Company Confidential
Slide 11: BarcoVision (2)
BarcoVision (2) • Sales – Textile business performing well, but first signs of business weakness in systems – Good sales for Machine Vision • Orders – Order level of textile lower, entering the downturn cycle in the textile business • EBITA – Gross profit stable at 44 % – Profit margin very strong a
Slide 12: Situation Machine Vision
Situation Machine Vision • Barco has sold its food sorting machine business to BEST nv on July 31 and deconsolidated as of July 1, resulting in a marginal non-operating profit • Machine Vision had a sales of 8.5 € million in the first half of 2003 with low profitability • With a 15 % market share, i
Slide 13: Barco Subcontracting
Barco Subcontracting in € mio 25 20 15 Orders Sales 10 EBI TA 5 0 Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 22 August 03, page 13 Company Confidential
Slide 14: Barco Subcontracting
Barco Subcontracting • Sales – Weaker than Q1, but operating cost decreased by reducing number of temporary contracts and temporary unemployment • Orders – Stronger than Q1 2003 • EBITA – Cost containment allowed us to improve the operational profit margin to 6.6 % • Organization – Assessing a more
Slide 15: Geographical breakdown of sales
Geographical breakdown of sales FY 2002 18.5% EMEA 48.7% AMERI CAS ASI APAC. 32.8% Q2 2003 14.5% 54.4% 31.1% In Q2 03, sales to Americas increased 22 August 03, page 15 by 3.8% in US $ vs Q2 02 Company Confidential
Slide 16: Key figures Income Statement
Key figures Income Statement in € mio Q2 02 H1 02 Q2 03 H1 03 Sales 176.1 328.3 157.9 309.0 Cost of goods sold -95.9 -185.4 -87.0 -171.4 Gross Profit 80.1 142.9 70.9 137.6 Research & Development -17.8 -34.9 -18.0 -34.7 Sales & Marketing -24.9 -49.1 -25.6 -49.9 General & Administration -13.1 -25.1 -1
Slide 17: Key figures Balance Sheet
Key figures Balance Sheet in € mio 31/12/02 30/06/03 Accounts Receivable 158.5 148.3 Inventory 118.0 130.4 Net cash 88.1 76.7 22 August 03, page 17 Company Confidential
Slide 18: Share buy-back program
Share buy-back program • As approved at the General Shareholder meeting, Barco started a share buy-back program to offset the dilution of its option programs • On July 31, Barco had bought back 95,928 shares for a total of 4.98 € million 22 August 03, page 18 Company Confidential
Slide 19: Expectations Q3 2003
Expectations Q3 2003 • Target sales: 140-150 € million which means an increase of at least 3 % at comparable $ • Target EBITA: between 7 and 12 € million, i.e. comparable to Q3 2002 • Economic uncertainty continues to keep investment climate weak in certain markets • Dollar evolution impacts both sa