14 May 03, page 1Company Confidential
Results First Quarter 2003
First Reporting in IFRS Format
Press Conference
May 14, 2003
Martin De PryckerPresident & CEO
14 May 03, page 2Company Confidential
Operational Results Q1 2003
in € million Q1 2003 Q1 2002
Orders 157.9 167.5
Sales 151.1 152.2
EBITA 15.4 10.9
EBITA % 10.2 7.1
14 May 03, page 3Company Confidential
Results per Quarter
0
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Q1 02 Q2 02 Q3 02 Q4 02 Q1 03
OrdersSalesEBI TA
in € mio
14 May 03, page 4Company Confidential
Overall Comments Q1 2003
• Sales flat versus 2002, at actual €/$ rate• Sales increased with 9 % at unchanged €/$ rate
versus Q1 02• Book-to-bill ratio 1.05 > 1, but lower than 2002
(1.10)• EBITA increased with 42 % y/y thanks to gross
profit improvement from 41 % to 44 % due to– Lower component cost– More outsourcing– Lower labor cost manufacturing – Product mix – Reduction in inventory write offs
14 May 03, page 5Company Confidential
BarcoProjection (1)
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80
90
Q1 02 Q2 02 Q3 02 Q4 02 Q1 03
OrdersSalesEBI TA
in € mio
14 May 03, page 6Company Confidential
BarcoProjection (2)
• Sales– Weak sales caused by economic uncertainty, mainly affecting
• Media• Control rooms in utilities• Simulation in civil aviation
• Orders– First successes in Media Europe and acquisitions will create
steady growth in US and China for the future– Good book-to-bill ratio (1.14)
• EBITA– Gross profit improved from 43 % to 45 %, but lower sales level
results in weak EBITA of 4 %
• New products introduced– Mid range simulator projector using DLP– S-lite media LED wall– Control room using DLP
• Acquisition Status– Trans-Lux: closed 29 March 2003– Leyard: delayed closing until July 2003 because of SARS
14 May 03, page 7Company Confidential
BarcoView (1)
-10
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80
Q1 02 Q2 02 Q3 02 Q4 02 Q1 03
OrdersSalesEBI TA
in € mio
14 May 03, page 8Company Confidential
BarcoView (2)
• Sales– Medical Imaging and Air Traffic Control performing
extremely well, resulting in 62 % more sales y/y
• Orders – Orders increased 20% y/y– Orders in Defense & Security low because of war, but
market pick up anticipated for 2nd half 2003– Problems in air traffic cause some delays in Asia and
US
• EBITA– Gross profit improved from 43 % to 46 % by
increased outsourcing of medical and better efficiency in operations/supply chain
– Profit margin strong at 17 %
• New products introduced– 5 MP medical flat panel now also in clearbase
14 May 03, page 9Company Confidential
BarcoVision (1)
0
5
10
15
20
25
30
Q1 02 Q2 02 Q3 02 Q4 02 Q1 03
OrdersSalesEBI TA
in € mio
14 May 03, page 10Company Confidential
BarcoVision (2)
• Sales– Growth of 12 %– Textile business continues performing well– Weaker sales for Machine Vision
• Orders– Good book-to-bill ratio, at 1.12, but end of growth of
cyclical textile business anticipated in 2nd half 2003– Strong order intake for MachineVision
• EBITA– Gross profit improved from 38 % to 44 % y/y– Profit margin strong at 17 %
14 May 03, page 11Company Confidential
Barco Subcontracting
0
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25
Q1 02 Q2 02 Q3 02 Q4 02 Q1 03
OrdersSalesEBI TA
in € mio
Weaker orders and sales but stable profit margin at 4.8 %
14 May 03, page 12Company Confidential
Geographical Breakdown of Sales
51,3%
32,5%
16,2%
55,8%32,1%
12,1%
EMEAAMERI CASASI APAC.
Q1 2003
Q1 2002
14 May 03, page 13Company Confidential
Key Figures Income Statementin € million Q1 03 Q1 02
SalesCost of goods sold
151.1-84.4
152.2-89.4
Gross ProfitResearch & DevelopmentSales & MarketingGeneral & AdministrationOther operating income
66.7-16.7-24.2-11.9
1.5
62.8-17.1-24.1-11.9
1.2
EBITAGoodwill amortization
15.4-1.6
10.9-1.2
Operating Result 13.8 9.7
Non-operating Result 0.4 0.0
Income TaxesShare of results of assoc. companiesMinority interest
-4.30.00.0
-3.00.00.0
Net Income 9.8 6.7
Earnings per Share (in €) 0.79 0.54
14 May 03, page 14Company Confidential
Key Figures Balance Sheetin € million 31/03/03 31/12/02
Accounts Receivable 147.0 158.5
Inventory 131.3 118.0
Net cash 92.1 88.1
14 May 03, page 15Company Confidential
Expectations Q2 2003
• Economic uncertainty and SARS continue to keep investment climate weak in certain markets
• Dollar decline impacts both sales – as 45 % of our sales is in $ related currencies – and EBITA
• Sales 150-160 € million• EBITA around 10 %• Continue to improve internal processes and sales
coverage and develop new products to be ready to benefit from economic rebound, whenever that happens
14 May 03, page 16Company Confidential
Introduction IFRS
Antoon Van PetegemVice-President & CFO
14 May 03, page 17Company Confidential
Impact Introduction IFRS
Total impact (in € mio)
Old IFRS DifferenceRules Rules
Net Equity 336.9 382.8 +45.8
EBITA 72.1 71.2 -0.9
Net Result 21.6 17.7 -3.9
14 May 03, page 18Company Confidential
Depreciation of Tangible Fixed Assets
Depreciation 1st year:
from full year depreciation to pro rata depreciation
– Impact on results 2002: -1.5 € mio– Half year of investments more on balance sheets:
+7.9 € mio
14 May 03, page 19Company Confidential
Capitalized R&D
± Same amounts capitalized+ : higher rate/hour (full cost)- : only product development
Depreciation starts later:past: full year depreciation first yearIFRS: commercial product on market
on average 6 months later
Impact on balance sheet 2002: + 16.5 € mio Impact on 2002 results: + 2.3 € mio
14 May 03, page 20Company Confidential
Capitalized R&D (continued)
Higher net value on balance sheet: ± 50% increase
years
50
%
100Past
IFRS
1 2 3 4
14 May 03, page 21Company Confidential
Goodwill
• Reallocation of part of the goodwill to (undervalued) assets
• First year: pro rata temporis amortization• Standard amortization over 10 years
(instead of 5 – 10 – 20 years)• Yearly impairment check
Impact on balance sheet 2002: - 16.2 € mio Impact on 2002 results: -0.2 € mio
14 May 03, page 22Company Confidential
Inventory
• Past– Standard cost, revised at year end– Direct manufacturing cost
• IFRS– FIFO– Full manufacturing cost
Impact on balance sheet 2002: + 8 € mioImpact on 2002 results: - 1 € mio
14 May 03, page 23Company Confidential
Others
(in € mio) Impact Impact 2002 2002 result balance
sheet• Deferred tax assets and
liabilities -2.0 +8.6• Derivatives and currency
gains/losses +0.4 +0.4• Provisions for 2002 -1.6 -1.2
– Maintenance building– Social liabilities
• Dividend included in net equity - +23.8• Investment grants no longer
in net equity - -2.3
14 May 03, page 24Company Confidential
Questions and Answers