28 April 04, page 1Company Confidential

Results Q1 2004

Analyst & Investor Conference Call28 April 2004

Martin De Prycker

28 April 04, page 2Company Confidential

Operational results Q1 2004

in € mio Q1 2003 Q1 2004 Growth Q1 04 / Q1 03 (%)

Ordersnominal

157.9 153.9 -2.5

Orders atconstant currencies

157.9 164.6 +4.3

Sales nominal 151.1 149.2 -1.2

Sales atconstant currencies

151.1 158.8 +5.1

EBITA 15.4 15.4 0.0

EBITA atconstant currencies

15.4 16.6 +7.0

EBITA % 10.2 10.3 +1.1

Book-to-bill 1.05 1.03 -1.4

28 April 04, page 3Company Confidential

Results per quarter

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20

40

60

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100

120

140

160

180

200

Q1 03 Q2 03 Q3 03 Q4 03 Q1 04

OrdersSalesEBI TA

in € mio

28 April 04, page 4Company Confidential

Overall comments Q1 2004

• Good order intake at € 153.9 mio, i.e. 4.3 % growth at comparable rate

• Comparable sales 5.1 % above Q1 2003. Some sales postponed to Q2 2004 because of slower new product introduction in BM&E and some supply shortages in View

• Good book-to-bill ratio of 1.03 increased the orderbook

• Gross profit margin stabilized at 44.1 %, despite price pressure in some markets, thanks to improvements internally and in the supply chain

• EBITA at 10.3 %, remaining stable vs Q1 2003 despite a 14 % weaker dollar

• Impact of currency fluctuations caused EBITA to be lower by over € 1.2 mio in Q1, versus an unchanged dollar

28 April 04, page 5Company Confidential

Evolution of results per division

in € mio Sales % EBITA Sales % EBITA

View 54.7 17.3 50.6 13.1

Media & Entertainment 20.3 -11.6 36.0 5.5

Presentation & Simulation

27.5 15.9 22.7 5.7

Control Rooms 16.1 3.3 22.1 10.7

Vision (*) 20.6 23.5 15.1 12.1

Manufacturing Services 19.1 4.8 27.0 4.8

Eliminations, Machine Vision, dotrix

-7.2 -24.3

Total 151.1 10.2 149.2 10.3

Q1 2003 Q1 2004

(*) corrected for Machine Vision, deconsolidated July 31, 2003

28 April 04, page 6Company Confidential

BarcoView (1)

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50

60

Q1 03 Q2 03 Q3 03 Q4 03 Q1 04

OrdersSalesEBI TA

in € mio

28 April 04, page 7Company Confidential

BarcoView (2)

• Orders – Book-to-bill ratio at 1.05– Orders in Defense & Security weak vs Q1 2003– Orders in Medical remain at high level– Strong orders in Traffic Management, continuing in April

• Sales– Strong sales volume in Medical confirms market leadership– Defense and Traffic Management deliveries weaker than last

year – Delivery of LCD panels requires constant attention, although

risk has been mitigated by using several suppliers

• Margins– Very good EBITA margin of 13.1 %, thanks to stable gross

margin of 45 %

• New products introduced– Integrated display and controller for Traffic Management

(Visona)

28 April 04, page 8Company Confidential

Barco Media & Entertainment (1)

-505

101520253035404550

Q1 03 Q2 03 Q3 03 Q4 03 Q1 04

OrdersSalesEBI TA

in € mio

28 April 04, page 9Company Confidential

Barco Media & Entertainment (2)

• Orders– Book-to-bill ratio at 0.88 due to high sales– Successes in Events, especially good integration of Folsom

starting to result in sales synergies worldwide– Strong price pressure in Media in US/China due to low dollar – Digital Cinema signs remain positive for start in 2005

• Sales– Increase of sales by 77.7 % year on year– High Media sales in Europe – Good Events sales worldwide

• Margins– Gross profit margin at 38 % due to high price pressure– EBITA margin at 5.5 %, improved vs last year as a result of

good profit in Events, but margin still not at target level because of investments in Media and Digital Cinema

• New products introduced– Outdoor 22 mm LED manufactured in China (Barco Leyard)

28 April 04, page 10Company Confidential

Barco Presentation & Simulation (1)

0

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35

Q1 03 Q2 03 Q3 03 Q4 03 Q1 04

OrdersSalesEBI TA

in € mio

28 April 04, page 11Company Confidential

Barco Presentation & Simulation (2)

• Orders– Good order intake with book-to-bill at 1.1– Good orders in Simulation and Edutainment and

successes in North America and Europe

• Sales– Presentation

• Weaker sales via dealers, but refocused approach on niche markets

– Simulation• Sales in civil aviation remain weak and some projects postponed to Q2• Good sales in museums and planetariums

• Margins– Gross profit margin at 46 %– Weaker EBITA margin at 5.7 % because of lower

volumes

• New products introduced– Automatic alignment for simulation market

28 April 04, page 12Company Confidential

Barco Control Rooms (1)

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Q1 03 Q2 03 Q3 03 Q4 03 Q1 04

OrdersSalesEBI TA

in € mio

28 April 04, page 13Company Confidential

Barco Control Rooms (2)

• Orders– Continued strong growth in orders vs Q1 2003– Book-to-bill at 1.04, increasing backlog

• Sales– Good sales in all segments, particularly strong in

Traffic & Surveillance– High growth in China, India and Korea and recovery

in Europe

• Margins– Gross profit margin at 47 %– EBITA margin high at 10.7 %

28 April 04, page 14Company Confidential

BarcoVision (1)

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25

Q1 03* Q2 03* Q3 03 Q4 03 Q1 04

OrdersSalesEBI TA

in € mio

* Corrected, by extracting Machine Vision in Q1, Q2 2003

28 April 04, page 15Company Confidential

BarcoVision (2)

• Sales & Orders– Book-to-bill ratio at 1.12– Machine Vision no longer included since July 2003– Weaker sales in January, but some pick up in

February/March, although not yet at high level

• Margins– Gross profit margin remains stable at 44 %– EBITA margin lower than usual at 12.1 % due to low

volumes, but better again than 4Q04 thanks to higher sales volume

28 April 04, page 16Company Confidential

Barco Manufacturing Services (1)

-5

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35

Q1 03 Q2 03 Q3 03 Q4 03 Q1 04

OrdersSalesEBI TA

in € mio

28 April 04, page 17Company Confidential

Barco Manufacturing Services (2)

• Sales & Orders– Sales/orders have increased thanks to larger

external order volume and particularly thanks to internal reorganization

• Margins– EBITA margin at 4.8 % improved thanks to larger

sales volume, first effects of cost savings and reorganization

28 April 04, page 18Company Confidential

Geographical breakdown of sales

52.5%

18.3%

29.2%

51.3%

32.5%

16.2%

EMEAAMERI CASASI APAC.

Q1 2004

Q1 2003

28 April 04, page 19Company Confidential

Key figures Income Statement Q1 04

in € mio Q1 03 % Q1 04 %

SalesCost of goods sold

151.1-84.4

100.0-55.8

149.2-83.4

100.0-55.9

Gross ProfitResearch & DevelopmentSales & MarketingGeneral & AdministrationOther operating result

66.7-16.7-24.2-11.9

1.5

44.2-11.0-16.1-7.91.0

65.9-15.5-25.6-11.3

2.0

44.1-10.4-17.2-7.61.4

EBITAGoodwill amortization

15.4-1.6

10.2-1.1

15.4-1.8

10.3-1.2

Operating Result 13.8 9.1 13.5 9.1

Non-operating result 0.4 0.3 0.4 0.3

Income Taxes -4.3 -2.8 -3.9 -2.6

Net Income 9.8 6.5 10.1 6.8

Current Cash Flow 24.5 16.2 24.2 16.2

Current Earnings per Share (in €) 0.93 0.97

Net Earnings per Share (in €) 0.79 0.81

28 April 04, page 20Company Confidential

Key figures Balance Sheet

in € mio 31/03/03 31/12/03 31/03/04

Accounts Receivable

147.0 149.5 143.4

Inventory 131.3 103.3 128.7

Cash 118.9 133.4 140.4

Financial debt

20.0 29.2 41.2

28 April 04, page 21Company Confidential

Expectations Q2 2004

• Sales target: between € 160 – 170 million, i.e. around 4 % year on year growth and 8 % growth at constant exchange rates

• EBITA of between € 17 and 22 million, or a growth of around 10 % vs Q2 2003

28 April 04, page 22Company Confidential

Questions & Answers