26 October 05, page 1 Company Confidential Results Third Quarter 2005 Martin De Prycker, CEO 26 October 2005.

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Presentation transcript:

26 October 05, page 1 Company Confidential Results Third Quarter 2005 Martin De Prycker, CEO 26 October 2005

26 October 05, page 2 Company Confidential Operational results 3Q05 in € million 3Q043Q05 Growth 3Q04/ 3Q05 Orders % Sales % EBITA * % EBITA % Book-to-bill * 3Q04 restated for cost of stock options

26 October 05, page 3 Company Confidential Results per quarter Results per quarter in € million

26 October 05, page 4 Company Confidential Overall comments 3Q 2005 Orders and sales continued to grow further in the third quarter, with a positive book-to-bill ratio of 1.03 –Strong growth of 8.4% YoY, mainly in Medical and Media & Events markets –Good order intake at € million, YoY growth of 10.7% Operational improvement actions show initial results, but will continue in the next quarters –Gross profit margin declining to 40.6% from 41.6%. Overall gross profit margin is stabilizing or improving in all divisions, except Media and Entertainment, where gross profit margin remains below expectations –EBITA at € 11 million was negatively affected by the loss on the sale of a building and by bad debt, together for € 2.1 million –EBITA at 6.4%, lower than 8.4%, as 3Q04 profit was positively impacted by a one time government subsidy –Operational cost reduction from 2Q05 into 3Q05, partially realized by manpower reduction of 54 since end June, to 4273 end September Net profit declined from € 8.6 million to € 8.3 million, a decline of 3.2%. Last year results were negatively affected by goodwill amortization

26 October 05, page 5 Company Confidential 3Q04 3Q05 Evolution of results per division Sales% EBITA Sales% EBITA Sales % View Media & Entertainment Presentation & Simulation Control Rooms Vision Manufacturing Services Eliminations Total in € million ∆

26 October 05, page 6 Company Confidential Summary Ongoing increase of orders Healthy growth in sales Price pressure is diminishing  gross profit margin is stabilizing/improving in all divisions but one Profit not yet up to expected level mainly because Media & Entertainment suffers from one time items

26 October 05, page 7 Company Confidential BarcoView (1) BarcoView (1) in € million

26 October 05, page 8 Company Confidential BarcoView (2) Orders –Book-to-bill ratio at 0.99 –Orders in Defense & Security 10% weaker than in 3Q04 –Orders in Medical remain high: 53% higher YoY –Orders in Traffic Management slightly lower YoY Sales –Strong sales volume in Medical (44% growth) confirms market leadership, but pressure on gross profit margin –Defense and Traffic Management sales slightly declining vs 3Q04 Margins –Gross profit margin stable at 44.9% –Profit margin at 10.0%, lower than 3Q04, which was positively impacted by a one time government grant New products introduced –New product range taking Barco to the mid segment of the Defense & Security market

26 October 05, page 9 Company Confidential Barco Media & Entertainment (1) Barco Media & Entertainment (1) in € million

26 October 05, page 10 Company Confidential Barco Media & Entertainment (2) Orders –Book-to-bill ratio very good at 1.14 –Strong orders in Events worldwide –Orders in Media weaker than 3Q04, but good prospects for the fourth quarter –Digital Cinema received good orders in Asia and North America, confirming the positive evolution in this market Sales –Sales increased by 19% YoY –Media sales lower than last year –Good Events sales worldwide, up 28% YoY –Sales in Digital Cinema, growing with 90%, illustrate a further penetration of digital technology Margins –Gross profit margin at 26.9%, lower than 34% in 3Q04, due to stock write off on older products and warranty costs on newly introduced products –EBITA margin at –3.1%, including euro 2,1 million due to the loss on the sale of a building and bad debt

26 October 05, page 11 Company Confidential Barco Presentation & Simulation (1) in € million

26 October 05, page 12 Company Confidential Barco Presentation & Simulation (2) Orders –Orders growing with 3%, mainly thanks to Simulation; orders in Presentation flat –Book-to-bill for the division at 1.06 Sales –Sales declined with 9.1%, mainly in Simulation –Sales were flat in Presentation Margins –Gross profit margin stable at 44.2% vs 3Q04, but improved vs 41.7% in 2Q05 –Profit margin at 2.9%, lower than 3Q04 due to lower volumes

26 October 05, page 13 Company Confidential Barco Control Rooms (1) Barco Control Rooms (1) in € million

26 October 05, page 14 Company Confidential Barco Control Rooms (2) Orders –Continued strong order growth at 13.8% –Book-to-bill at 0.99 Sales –Moderate growth worldwide of 4.2% Margins –Gross profit margin at 48.6 %, better than 3Q04 at 42% and 43.5% in 2Q05, thanks to strong cost down exercises –EBITA margin improved from 8.2% to 21.0%, thanks to higher volume and better gross profit margin

26 October 05, page 15 Company Confidential BarcoVision (1) BarcoVision (1) in € million

26 October 05, page 16 Company Confidential BarcoVision (2) Sales & Orders –Book-to-bill ratio at 1.0 with weaker sales and orders in Textile, but improving in Plastics and Pharmaceutical markets –Sales improved by 4.5% vs last year, whereas orders declined with 3% Margins –Gross profit margin sequentially stable at 46.6% vs 45.2% in 3Q04 –EBITA margin stable at 8.2%

26 October 05, page 17 Company Confidential Barco Manufacturing Services (1) Barco Manufacturing Services (1) in € million

26 October 05, page 18 Company Confidential Barco Manufacturing Services (2) Sales & Orders –Sales & orders lower than 3Q04, because of more outsourcing close to our own final assembly sites in Asia Margins –EBITA margin declined to –5.8%, caused by lower volumes –Operational costs will further decrease by continued reduction in temps in 4Q05

26 October 05, page 19 Company Confidential Geographical breakdown of sales 3Q05 3Q04

26 October 05, page 20 Company Confidential Key figures Income Statement 3Q05 Key figures Income Statement 3Q05

26 October 05, page 21 Company Confidential Keyfigures Income Statement YTD 05 Keyfigures Income Statement YTD 05

26 October 05, page 22 Company Confidential Key figures Balance Sheet Key figures Balance Sheet in € million 30/09/0431/12/0430/06/0530/09/05 Accounts Receivable Inventory Cash Financial debt

26 October 05, page 23 Company Confidential Expectations 4Q05 Orders target between € 175 and 185 million, i.e. more than 10% growth YoY Sales target between € 195 and € 205 million EBITA between € 22 and € 27 million before restructuring cost A restructuring charge will be taken mainly for the reorganization of the sales & service back office in Europe and Atlanta. This may amount to around € 5 million

26 October 05, page 24 Company Confidential Questions & Answers