22 August 03, page 1Company Confidential

Results Second Quarter 2003 and

6 months ended June 30, 2003

Martin De PryckerPresident & CEO

August 22, 2003

22 August 03, page 2Company Confidential

Operational results Q2 2003 and H1 2002

in € mio Q2 2002 H1 2002 Q2 2003 H1 2003 Growth H1 03 / H1 02

Ordersnominal

190.7 358.3 169.2 327.1 - 8.7 %

Orderscomparable

190.7 358.3 186.4 358.2 0.0 %

Sales nominal

176.1 328.3 158.0 309.1 - 5.9 %

Sales comparable

176.1 328.3 173.3 338.6 + 3.1 %

EBITA 21.9 32.8 17.4 32.9 + 0.1 %

EBITA % 12.7 10.0 11.0 10.6 + 6.0 %

22 August 03, page 3Company Confidential

Results per quarter

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Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03

OrdersSalesEBI TA

in € mio

22 August 03, page 4Company Confidential

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-to-bill ratio very good at 1.07 > 1• EBITA at 11 %, lower than Q2 2002 (12.7 %)

– Price pressure compensated by cost reduction on direct cost. As such, gross profit stable at 45 %

– Dollar has caused a reduction of EBITA of around 4 € million vs last year

• EBITA first half 2003 at 10.6 %, higher than first half 2002 at 10 %, despite 9 € million less profit because of $ effect

22 August 03, page 5Company Confidential

Evolution of results per division

in € mioQ2 02 Q2 03 Q2 02 Q2 03

BarcoProjection 88.7 75.0 11.1 5.4BarcoView 47.8 51.2 7.2 7.4BarcoVision 24.9 23.2 3.9 4.4Barco Subcontr. 22.8 17.2 0.8 1.7Other -8.1 -8.7 -1.1 -1.5Total 176.1 157.9 21.9 17.4

Sales EBI TA

22 August 03, page 6Company Confidential

BarcoProjection (1)

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Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03

OrdersSalesEBI TA

in € mio

22 August 03, page 7Company Confidential

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 Theater, led to restructuring decision• Stand-alone projectors

• Orders– Successes in media US through Logan acquisition and in Europe – Strong orders in control rooms for traffic, surveillance and broadcast put

foundation for good H2– First successes with simulation for homeland security and V&AR in medical

• EBITA– Despite reduced sales volume, profit margin stable at 45 %, resulting in EBITA

above 6 %

• New products introduced– Streaming video for traffic & security control rooms– 2K digital cinema projector (first order received)– Digital projector with i-stereo inside

• Acquisition status– Trans-Lux West successfully integrated in Q2– Leyard delayed because of SARS and unresolved legal

issues. Target closing in September

22 August 03, page 8Company Confidential

BarcoView (1)

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OrdersSalesEBI TA

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22 August 03, page 9Company Confidential

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 in Defense & Security remain low, but market

pick up anticipated for 2nd half 2003

• EBITA– Gross profit stable at 46 %– Profit margin good above 13 %

• New products introduced– Mid range medical LCD flat panel (Nio)– Multifunctional rugged display for defense & security

22 August 03, page 10Company Confidential

BarcoVision (1)

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22 August 03, page 11Company Confidential

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 above 18 %

• New products to be launched at ITMA 03– New polypropylene sensor– Extended range of on-loom inspection (Cyclops)– New family of wireless data collection & monitoring

systems

22 August 03, page 12Company Confidential

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, it was unlikely to bring this business to the average Barco profit margin level over a reasonable period of time

22 August 03, page 13Company Confidential

Barco Subcontracting

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22 August 03, page 14Company Confidential

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 efficient organization of all

electronic sub-assembly activities within all Barco divisions

22 August 03, page 15Company Confidential

Geographical breakdown of sales

54.4%

14.5%

31.1%

48.7%

32.8%

18.5%

EMEAAMERI CASASI APAC.

Q2 2003

FY 2002

In Q2 03, sales to Americas increased by 3.8% in US $ vs Q2 02

22 August 03, page 16Company Confidential

Key figures Income Statement

in € mio Q2 02 H1 02 Q2 03 H1 03

SalesCost of goods sold

176.1-95.9

328.3-185.4

157.9-87.0

309.0-171.4

Gross ProfitResearch & DevelopmentSales & MarketingGeneral & AdministrationOther operating result

80.1-17.8-24.9-13.1-2.2

142.9-34.9-49.1-25.1-0.9

70.9-18.0-25.6-11.8

2.0

137.6-34.7-49.9-23.7

3.6

EBITAGoodwill amortization

21.9-1.2

32.8-2.4

17.4-1.6

32.9-3.3

Operating Result 20.7 30.4 15.7 29.5

Non-operating result -27.7 -27.6 0.5 0.8

Income Taxes -5.3 -8.3 -4.8 -9.1

Net Income -12.2 -5.6 11.4 21.2

Current Cash Flow 34.9 55.8 28.1 52.5

Current Earnings per Share (in €) 1.37 2.01 1.05 1.98

Net Earnings per Share (in €) -0.99 -0.44 0.92 1.70

22 August 03, page 17Company Confidential

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 18Company Confidential

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 19Company Confidential

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 sales – as 45 % of our sales is in $ related currencies – and EBITA and makes Q4 predictability more difficult, but normally Q4 is the strongest quarter

• Continue to improve – Internal processes w.r.t. non-quality cost, delivery

performance, working capital and indirect manufacturing cost

– Sales coverage: China, Japan and Canada– New product development