Results second quarter 2003 and 6 months ended june 30 2003
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Results Second Quarter 2003 and 6 months ended June 30, 2003 PowerPoint PPT Presentation


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Results Second Quarter 2003 and 6 months ended June 30, 2003. Martin De Prycker President & CEO August 22, 2003. Operational results Q2 2003 and H1 2002. Results per quarter. in € mio. Overall comments Q2 2003.

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Results Second Quarter 2003 and 6 months ended June 30, 2003

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Results second quarter 2003 and 6 months ended june 30 2003

Results Second Quarter 2003 and 6 months ended June 30, 2003

Martin De Prycker

President & CEO

August 22, 2003


Operational results q2 2003 and h1 2002

Operational results Q2 2003 and H1 2002


Results per quarter

Results per quarter

in € mio


Overall comments q2 2003

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


Evolution of results per division

Evolution of results per division


Barcoprojection 1

BarcoProjection (1)

in € mio


Barcoprojection 2

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


Barcoview 1

BarcoView (1)

in € mio


Barcoview 2

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


Barcovision 1

BarcoVision (1)

in € mio


Barcovision 2

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


Situation machine vision

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


Barco subcontracting

Barco Subcontracting

in € mio


Barco subcontracting1

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


Geographical breakdown of sales

Geographical breakdown of sales

FY 2002

Q2 2003

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


Key figures income statement

Key figures Income Statement


Key figures balance sheet

Key figures Balance Sheet


Share buy back program

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


Expectations q3 2003

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


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