Presentation is loading. Please wait.

Presentation is loading. Please wait.

19 February 04, page 1 Company Confidential Results Q4 and full year 2003 Analyst meeting 19 February 2004 Martin De Prycker.

Similar presentations


Presentation on theme: "19 February 04, page 1 Company Confidential Results Q4 and full year 2003 Analyst meeting 19 February 2004 Martin De Prycker."— Presentation transcript:

1 19 February 04, page 1 Company Confidential Results Q4 and full year 2003 Analyst meeting 19 February 2004 Martin De Prycker

2 19 February 04, page 2 Company Confidential Operational results Q and full year 2003 in € mio Q Q Growth Q4 03 / Q4 02 Growth 03 / 02 Orders nominal %(3%) Orders comparable ** %5% Sales nominal (10%)(6%) Sales comparable ** (3%)2% EBITA *69.1*(6%)(3%) EBITA comparable ** %26% EBITA % %4% Book-to-bill %3% * Before restructuring of € 2.5 mio ** $/€ 19 % lower in Q4 ** $/€ 19 % lower in full year

3 19 February 04, page 3 Company Confidential Results per quarter in € mio

4 19 February 04, page 4 Company Confidential Results Q4 2003

5 19 February 04, page 5 Company Confidential Overall comments Q Very good order intake at € mio, i.e. 19 % growth at nominal €/$ rate and 26 % growth at comparable rate High book-to-bill ratio of 1.08 has increased our orderbook for 2004, especially in M&E and Simulation Gross profit margin improved again to 45 %, despite strong price pressure especially in Media and negative dollar evolution Comparable sales 3 % below Q4 2002, as last year had an extremely large delivery of ATC panels EBITA at 15 %, remains strong despite lower sales than Q Dollar decline caused a lower EBITA of € 7 mio in Q4, versus an unchanged dollar

6 19 February 04, page 6 Company Confidential Evolution of results per division

7 19 February 04, page 7 Company Confidential BarcoProjection (1) in € mio

8 19 February 04, page 8 Company Confidential BarcoProjection (2) Orders –Strong book-to-bill ratio at 1.15 Sales –6 % growth in nominal sales vs Q Margins –Gross profit margin improved to 44 % despite high price pressure, as a result of higher volume –EBITA margin high at 15.7 %, driven by higher volume and continued cost control 4Q 03

9 19 February 04, page 9 Company Confidential BarcoProjection (3) On January 1, 2004 BarcoProjection was split into 3 separate divisions, reporting on same the level as other divisions These 3 divisions are –Media & Entertainment Events Media Cinema (digital cinema and high end home cinema) –Control Rooms –Presentation & Simulation Presentation Simulation 4Q 03

10 19 February 04, page 10 Company Confidential BarcoProjection (4) Media & Entertainment Orders –High book-to-bill ratio at 1.2 –Successes in Digital Cinema, Media and Events –Strong price pressure in US/China due to low dollar Sales –High Media sales in the US and Europe and Events worldwide Margins –EBITA margin at 9 % below our long term target, due to heavy investments in Extending capacity in China Sales growth in US and Asia R&D to further reduce product cost, as well as to launch new products for Media, Events and Digital Cinema New products introduced –3 mm high resolution LED wall 4Q 03

11 19 February 04, page 11 Company Confidential Acquisition “Folsom Research”, January 2004 Based in Sacramento, USA with 75 employees Worldleader in “Beyond Display” products –Image Processing –Image Communication –Image Functionality & Interactivity Application Markets –Events (Media & Entertainment) -> above 50% –Radar (BarcoView) -> around 20% –Presentation & Simulation -> below 30% Figures –Orders 2003 $ 18.5 mio –Sales 2003 $ 16.5 mio –EBITA 2003 $ +1.5 mio Synergies with Barco –Strong market position in US, potential synergies with Barco sales organization in Europe and Asia –Extension of “Beyond Display” products of Barco

12 19 February 04, page 12 Company Confidential BarcoProjection (5) Control Rooms Orders –Continued strong growth in orders –Book-to-bill at 1.06 Sales –Good sales in all segments, particularly strong in Traffic & Surveillance –High growth in China, India and Korea; and recovery in Europe Margins –EBITA margin high at 22 % New products introduced –Streaming video functionality in display controllers 4Q 03

13 19 February 04, page 13 Company Confidential BarcoProjection (6) Presentation & Simulation Orders –Strong order intake with book-to-bill at 1.2 –Good orders in Simulation and Edutainment –Good orders for car design Sales –Presentation Good level of sales, especially in large projects with focus on operational cost of our customer Shift towards higher end products and solutions –Simulation Slow civil aviation sales with partial recovery Good orders for systems while product sales weakens Increased market share in V&AR Margins –High EBITA margin at 19 % New products introduced –Cost effective system solutions in V&R –Home Land Defense/Security solutions in USA –Tracking device for enhanced immersion in virtual reality 4Q 03

14 19 February 04, page 14 Company Confidential BarcoView (1) in € mio

15 19 February 04, page 15 Company Confidential BarcoView (2) Orders –Book-to-bill ratio at 1.0 –Orders in Defense & Security strong –Orders in Medical remain at high level –Large order volume for Avionics Sales –Robust sales volume in Avionics –Strong sales volume in medical confirms our market leadership –ATC and Defense deliveries remain high, although below last year –Delivery of LCD panels requires constant attention, although risk has been mitigated by using several suppliers Margins –Extremely good EBITA margin of 19 %, driven by the increase in gross profit margin to 49 % New products introduced –RGB recorder for Defense & Security applications 4Q 03

16 19 February 04, page 16 Company Confidential BarcoVision (1) in € mio

17 19 February 04, page 17 Company Confidential BarcoVision (2) Sales & Orders –Machine Vision no longer included since July 2003 onwards –Weaker sales volume in textile business as we are in the middle of the down-cycle, although commercial activity is picking up since ITMA in November 2003 First volume order received for Cyclops (visual inspection of woven material) Margins –Gross profit margin remains stable at 43 % –EBITA margin lower than usual at 8 % due to extremely low volumes 4Q 03

18 19 February 04, page 18 Company Confidential Barco Manufacturing Services (1) in € mio

19 19 February 04, page 19 Company Confidential Barco Manufacturing Services (2) Sales & Orders –Weaker sales/orders than Q Margins –Gross profit margin declined from 34 % in Q1 to 31 % –Indirect manufacturing cost not yet fully adjusted to current manufacturing volumes, resulting in a 3 % negative EBITA margin –No impact yet of restructuring on results 4Q 2003 Reorganization –Restructuring cost will be taken as a special charge in Q4 (€ 2.5 mio). This is comparable to the € 2.5 mio annual savings, which are expected to take full effect in Q 03

20 19 February 04, page 20 Company Confidential Geographical breakdown of sales Q Q3 2003

21 19 February 04, page 21 Company Confidential Results Full Year 2003

22 19 February 04, page 22 Company Confidential Operational results full year 2003 in € mio Growth 03 / 02 Orders nominal (3%) Orders comparable ** % Sales nominal (6%) Sales comparable ** % EBITA *(3%) EBITA comparable ** % EBITA % % Book-to-bill % * Before restructuring of € 2.5 mio ** $/€ 19 % lower in full year

23 19 February 04, page 23 Company Confidential Comments full year 2003 Further focus our organization on image processing for B2B with worldwide leadership –Full exit Esko-Graphics –Sale of dotrix –Sale of Machine Vision –Acquisitions in Media (Trans-Lux West, Leyard) –Acquisition in Events (Folsom in 2004) Order growth of 5 % at equal currencies Sales growth of 2 % at equal currencies Dollar decline had a negative impact on EBITA of more than € 20 million Focus on reducing inventory has resulted in a further improvement. Actions to further reduce the number of different components will continue to have a positive influence on inventory in 2004 A/R did not improve further in 2003 but actions for improved pre- and post- sales service will show first results in 2004

24 19 February 04, page 24 Company Confidential Key figures Income Statement 2003 in € mioFY 02%FY 03% Sales Cost of goods sold Gross Profit Research & Development Sales & Marketing General & Administration Other operating result EBITA Goodwill amortization Operating Result Non-operating result Income Taxes Net Income Current Cash Flow Current Earnings per Share (in €) Net Earnings per Share (in €)

25 19 February 04, page 25 Company Confidential Key figures Balance Sheet in € mio 31/12/0230/06/0331/12/03 Accounts Receivable Inventory Cash Financial debt

26 19 February 04, page 26 Company Confidential Overview of R&D in € mio R&D expense Capitalized Amortized Total

27 19 February 04, page 27 Company Confidential Expectations 2004

28 19 February 04, page 28 Company Confidential Growth strategy 2004 (1) Displays Image processing Content & applications EU NA APAC Vertical markets Products Solutions Geographies

29 19 February 04, page 29 Company Confidential Growth strategy 2004 (2) Main segments where large absolute growth is expected in 2004 through internal and external investments –Medical –Events (incl. Folsom acquisition) –Media (incl. Trans-Lux West & Leyard acquisition) –Surveillance & security Increase sales and marketing efforts in regions with strong growing economies such as North America and Asia (e.g. opening office in Canada) Further evolve towards more systems business

30 19 February 04, page 30 Company Confidential Expectations 2004: main operational guidelines Keep R&D budget around € 70 million, equal to 2003, but with full focus on products within our strategy (exit dotrix, Machine Vision, …) Further improve pre-sales and post-sales processes to improve customer service and A/R Implement manufacturing restructuring announced last year to reduce operational cost Increase manufacturing in China to further reduce product cost, also resulting in higher natural hedging Gradual roll out of CRM software and new ERP software. CRM should result in better planning already in ERP cost savings to be expected in 2005

31 19 February 04, page 31 Company Confidential Expectations Q Sales target: between € 147 – 155 million, i.e. more than 6 % year on year growth at constant dollar exchange rate EBITA of between € 13 and 17 million Every % decline in the value of the dollar impacts EBITA by around € 1 million on a yearly basis

32 19 February 04, page 32 Company Confidential Dividend Proposal of the Board of Directors to the annual shareholders’ meeting on May 12, 2004 Dividend will be increased to € 2.00 from € 1.92 last year


Download ppt "19 February 04, page 1 Company Confidential Results Q4 and full year 2003 Analyst meeting 19 February 2004 Martin De Prycker."

Similar presentations


Ads by Google