Barco NV · EURONEXT:BAR
Barco NV — FY2012 Earnings Presentation
24 slides from Barco NV's earnings presentation, Feb 7, 2013
Slide 1: Results 2H12 & FY12 – One Barco
Results 2H12 & FY12 One Barco 2012 “Another Vintage Year” Eric Van Zele CEO 7 February 2013
Slide 2: Corporate Sales & EBIT
Corporate Sales & EBIT Slide 2
Slide 3: Agenda
Agenda Financial highlights Divisional results Executive focus & Outlook Q&A Slide 3 Note: Info and results based on reporting and organizational structure 2012
Slide 4: Financial highlights 2H12 & FY12
Financial highlights 2H12 & FY12
Slide 5: Financial highlights 2H12
Financial highlights 2H12 • Orders € 590.9m (12.9% above last year) (+ € 67.4m) • Order book € 461.2m (-3.9% vs 2H11) • Sales € 625.0m (13.4% above last year) (+ € 73.9m) • EBITDA € 87.8m (14.0% on sales) • EBIT € 56.7m (9.1% on sales) • Free cash flow € 92.5m • ROCE 24% Slide 5
Slide 6: Financial highlights FY12
Financial highlights FY12 • Orders € 1,133.8m (4.7% above last year) • Sales € 1,156.0m (11.0% above last year) • EBITDA € 159.5m (13.8% on sales) • EBIT € 100.2m (8.7% on sales) FY12 [in millions of euro] EBITDA EBITDA % Entertainment 87.3 18.2% Healthcare 23.8 11.5% Control Rooms & Simulation 26.4
Slide 7: Income statement FY12
Income statement FY12 In € m 2012 2011 • Gross Profit margin @ 32.5% (vs 30.1%) Sales 1,156.0 100.0% 1,041.2 100.0% Cost of goods sold (780.4) (67.5%) (728.3) (69.9%) • Improved cost of goods sold Gross Profit 375.6 32.5% 312.9 30.1% • Further reduction of warranty cost R&D cash expense (97.3) (8.4%
Slide 8: EBITDA waterfall 2012 versus 2011 (+ € 29.3m)
EBITDA waterfall 2012 versus 2011 (+ € 29.3m) Gross Profit +60.4m OPEX +39.7m Non cash items & other -2m - Sales increase of 11% (6% excl FX impact) combined with a - Other income € 3m (vs € 12.8m) ; mainly due to bad debt and other substantial gross margin improvement (1.7ppts) provisions (-6.7m) a
Slide 9: Geographical breakdown of sales FY12
Geographical breakdown of sales FY12 NORTH-AMERICA EMEALA APAC 2012 34% 42% 24% Change +11.2% +6.5% +14.6% 2011 33% 44% 23% Slide 9
Slide 10: Cash & balance sheet
Cash & balance sheet Free cash flow of € 121.6m (vs € 81.2m in 2011) Robust gross operating cash flow of € 156.4m (vs € 127.0m in 2011) Inventory turns @ 3.1 (vs 2.7 in 2011) DSO @ 48 days (improvement of 8 days compared to 2011) Net financial cash position at € 111.2m (vs € 61.6m in 2011)
Slide 11: Editorial comments
Editorial comments Orders – Increase of 4.7% vs 2011 – Boosted by 2H12 order intake which grew almost 13% – Order book 3.9% lower vs 2011 due to faster cycle times in CRS & D&A – Entertainment and Ventures generating robust growth – Positive growth momentum in LATAM & South East Asia – Negative gr
Slide 12: Editorial comments
Editorial comments Profitability: enabled by strong gains in operational excellence – Remarkable performance in 2H12: Gross profit increased by 22% y-o-y – Good progress in operational efficiencies – Group EBITDA is record high and near targets – Free cash generation is very strong & all divisions
Slide 13: Divisional results
Divisional results Slide 13
Slide 14: Entertainment
Entertainment Order Intake very robust at € 490.4m – DC strong with major wins in China & Latin America – Continued growth in Professional AV markets in both EMEALA & APAC Strong sales growth for the fourth consecutive year – DC holds momentum & leads globally – Increasing growth momentum in the
Slide 15: Healthcare
Healthcare Top line exceeds € 200m – Good bookings in orders compared to 2011 (when adjusting for the multi-year order intake in 2011) – Further increased market momentum in Latin America & Eastern Europe – Modality business performs on target, softer business momentum in radiology in Europe – Com
Slide 16: Control Rooms & Simulation
Control Rooms & Simulation Modest growth in orders & sales – Strong growth in APAC but weak in Western Europe – Shift of certain projects from Q4 into 1H13 Significant improvements regarding operational excellence – Rebuild supply chain results in improved On Time delivery performance – Streamli
Slide 17: Defense & Aerospace
Defense & Aerospace Flat order intake – Softness in the Defense segment as a result of ongoing budget constraints worldwide – Offset by a strong performance in Aerospace, fueled by a growing Avionics market Sales growing 12.9% y-o-y – Growth in all segments – Defense keeping up in sales in a cha
Slide 18: Ventures
Ventures Strong increase in order intake and sales Making progress in strategic repositioning Remarkable turnaround in LiveDots – Strong incoming orders as a result of a focused sales approach & double digit EBITDA contribution – Renewed market leadership in Rental & Staging Kick-off of Clic
Slide 19: Executive focus & Outlook
Executive focus & Outlook Slide 19
Slide 20: Executive focus
Executive focus 1. Strengthen the company’s global leadership position through an optimized organization – Re-align sales force with new segments and channels & capture scale economies through product divisions – Increased focus on Corporate AV 2. Extend market reach and penetration – Establish oper
Slide 21: Outlook 2013
Outlook 2013 Despite an uncertain macro economic environment & eventual softening of demand for digital cinema projectors, management nevertheless expects Barco to continue to generate profitable growth in 2013 albeit at a slower pace than in 2012 Starting from the foundation that is in place, we wi
Slide 22: Strategic decisions
Strategic decisions Dividend – Board will propose increasing the 2013 dividend to 1.4 euro per share (from 1.1 euro paid in 2012) – Barco’s goal is to sustain dividend growth in the years to come Projectiondesign® Barco’s Board also authorized management to proceed with buying out the minority s
Slide 23: Company structure 2013
Company structure 2013 New organizational structure to fully leverage the core competencies of each division and capture emerging growth opportunities in Corporate AV - Healthcare - “=“ - Focus on medical applications, move into new segments - Projection - Global capability to support Barco’s leader
Slide 24: Q&A
Q&A Slide 24