14 may 03, page 1 company confidential results first quarter 2003 first reporting in ifrs format...
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![Page 1: 14 May 03, page 1 Company Confidential Results First Quarter 2003 First Reporting in IFRS Format Press Conference May 14, 2003 Martin De Prycker President](https://reader035.vdocuments.net/reader035/viewer/2022062715/56649d7a5503460f94a5e580/html5/thumbnails/1.jpg)
14 May 03, page 1Company Confidential
Results First Quarter 2003
First Reporting in IFRS Format
Press Conference
May 14, 2003
Martin De PryckerPresident & CEO
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14 May 03, page 2Company Confidential
Operational Results Q1 2003
in € million Q1 2003 Q1 2002
Orders 157.9 167.5
Sales 151.1 152.2
EBITA 15.4 10.9
EBITA % 10.2 7.1
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14 May 03, page 3Company Confidential
Results per Quarter
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160
180
200
Q1 02 Q2 02 Q3 02 Q4 02 Q1 03
OrdersSalesEBI TA
in € mio
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14 May 03, page 4Company Confidential
Overall Comments Q1 2003
• Sales flat versus 2002, at actual €/$ rate• Sales increased with 9 % at unchanged €/$ rate
versus Q1 02• Book-to-bill ratio 1.05 > 1, but lower than 2002
(1.10)• EBITA increased with 42 % y/y thanks to gross
profit improvement from 41 % to 44 % due to– Lower component cost– More outsourcing– Lower labor cost manufacturing – Product mix – Reduction in inventory write offs
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14 May 03, page 5Company Confidential
BarcoProjection (1)
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90
Q1 02 Q2 02 Q3 02 Q4 02 Q1 03
OrdersSalesEBI TA
in € mio
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14 May 03, page 6Company Confidential
BarcoProjection (2)
• Sales– Weak sales caused by economic uncertainty, mainly affecting
• Media• Control rooms in utilities• Simulation in civil aviation
• Orders– First successes in Media Europe and acquisitions will create
steady growth in US and China for the future– Good book-to-bill ratio (1.14)
• EBITA– Gross profit improved from 43 % to 45 %, but lower sales level
results in weak EBITA of 4 %
• New products introduced– Mid range simulator projector using DLP– S-lite media LED wall– Control room using DLP
• Acquisition Status– Trans-Lux: closed 29 March 2003– Leyard: delayed closing until July 2003 because of SARS
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14 May 03, page 7Company Confidential
BarcoView (1)
-10
0
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80
Q1 02 Q2 02 Q3 02 Q4 02 Q1 03
OrdersSalesEBI TA
in € mio
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14 May 03, page 8Company Confidential
BarcoView (2)
• Sales– Medical Imaging and Air Traffic Control performing
extremely well, resulting in 62 % more sales y/y
• Orders – Orders increased 20% y/y– Orders in Defense & Security low because of war, but
market pick up anticipated for 2nd half 2003– Problems in air traffic cause some delays in Asia and
US
• EBITA– Gross profit improved from 43 % to 46 % by
increased outsourcing of medical and better efficiency in operations/supply chain
– Profit margin strong at 17 %
• New products introduced– 5 MP medical flat panel now also in clearbase
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14 May 03, page 9Company Confidential
BarcoVision (1)
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5
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15
20
25
30
Q1 02 Q2 02 Q3 02 Q4 02 Q1 03
OrdersSalesEBI TA
in € mio
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14 May 03, page 10Company Confidential
BarcoVision (2)
• Sales– Growth of 12 %– Textile business continues performing well– Weaker sales for Machine Vision
• Orders– Good book-to-bill ratio, at 1.12, but end of growth of
cyclical textile business anticipated in 2nd half 2003– Strong order intake for MachineVision
• EBITA– Gross profit improved from 38 % to 44 % y/y– Profit margin strong at 17 %
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14 May 03, page 11Company Confidential
Barco Subcontracting
0
5
10
15
20
25
Q1 02 Q2 02 Q3 02 Q4 02 Q1 03
OrdersSalesEBI TA
in € mio
Weaker orders and sales but stable profit margin at 4.8 %
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14 May 03, page 12Company Confidential
Geographical Breakdown of Sales
51,3%
32,5%
16,2%
55,8%32,1%
12,1%
EMEAAMERI CASASI APAC.
Q1 2003
Q1 2002
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14 May 03, page 13Company Confidential
Key Figures Income Statementin € million Q1 03 Q1 02
SalesCost of goods sold
151.1-84.4
152.2-89.4
Gross ProfitResearch & DevelopmentSales & MarketingGeneral & AdministrationOther operating income
66.7-16.7-24.2-11.9
1.5
62.8-17.1-24.1-11.9
1.2
EBITAGoodwill amortization
15.4-1.6
10.9-1.2
Operating Result 13.8 9.7
Non-operating Result 0.4 0.0
Income TaxesShare of results of assoc. companiesMinority interest
-4.30.00.0
-3.00.00.0
Net Income 9.8 6.7
Earnings per Share (in €) 0.79 0.54
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14 May 03, page 14Company Confidential
Key Figures Balance Sheetin € million 31/03/03 31/12/02
Accounts Receivable 147.0 158.5
Inventory 131.3 118.0
Net cash 92.1 88.1
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14 May 03, page 15Company Confidential
Expectations Q2 2003
• Economic uncertainty and SARS continue to keep investment climate weak in certain markets
• Dollar decline impacts both sales – as 45 % of our sales is in $ related currencies – and EBITA
• Sales 150-160 € million• EBITA around 10 %• Continue to improve internal processes and sales
coverage and develop new products to be ready to benefit from economic rebound, whenever that happens
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14 May 03, page 16Company Confidential
Introduction IFRS
Antoon Van PetegemVice-President & CFO
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14 May 03, page 17Company Confidential
Impact Introduction IFRS
Total impact (in € mio)
Old IFRS DifferenceRules Rules
Net Equity 336.9 382.8 +45.8
EBITA 72.1 71.2 -0.9
Net Result 21.6 17.7 -3.9
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14 May 03, page 18Company Confidential
Depreciation of Tangible Fixed Assets
Depreciation 1st year:
from full year depreciation to pro rata depreciation
– Impact on results 2002: -1.5 € mio– Half year of investments more on balance sheets:
+7.9 € mio
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14 May 03, page 19Company Confidential
Capitalized R&D
± Same amounts capitalized+ : higher rate/hour (full cost)- : only product development
Depreciation starts later:past: full year depreciation first yearIFRS: commercial product on market
on average 6 months later
Impact on balance sheet 2002: + 16.5 € mio Impact on 2002 results: + 2.3 € mio
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14 May 03, page 20Company Confidential
Capitalized R&D (continued)
Higher net value on balance sheet: ± 50% increase
years
50
%
100Past
IFRS
1 2 3 4
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14 May 03, page 21Company Confidential
Goodwill
• Reallocation of part of the goodwill to (undervalued) assets
• First year: pro rata temporis amortization• Standard amortization over 10 years
(instead of 5 – 10 – 20 years)• Yearly impairment check
Impact on balance sheet 2002: - 16.2 € mio Impact on 2002 results: -0.2 € mio
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14 May 03, page 22Company Confidential
Inventory
• Past– Standard cost, revised at year end– Direct manufacturing cost
• IFRS– FIFO– Full manufacturing cost
Impact on balance sheet 2002: + 8 € mioImpact on 2002 results: - 1 € mio
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14 May 03, page 23Company Confidential
Others
(in € mio) Impact Impact 2002 2002 result balance
sheet• Deferred tax assets and
liabilities -2.0 +8.6• Derivatives and currency
gains/losses +0.4 +0.4• Provisions for 2002 -1.6 -1.2
– Maintenance building– Social liabilities
• Dividend included in net equity - +23.8• Investment grants no longer
in net equity - -2.3
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14 May 03, page 24Company Confidential
Questions and Answers