22 October 2008Slide 1

Results 3Q08Results 3Q08

Martin De Prycker, CEO

22 October 2008

22 October 2008Slide 2

Highlights 3Q08Highlights 3Q08

Sales growth at 4% with varied performance of the different divisions. Sales increased 9% at constant exchange rates, 4% generated by High End Systems and 5% organic growth

Moderate order intake 11% lower than 3Q07, which was driven by one very large order in Medical Imaging; negative impact of economic uncertainty causing customers to delay/cut capital investments

EBIT decline before restructuring to € (1.7) million, a reduction of € 9.7 million, driven by lower gross margin and increase in operating cost structure

First results of inventory and receivables reduction plan visible, with € 10 million reduction realized vs end 2Q08

First actions of the cost reduction plan have been implemented and will yield first results already in 4Q08

22 October 2008Slide 3

Operational resultsOperational results

In € million 3Q08 3Q07 Growth 08/07

At real FX

At constant

FX

Orders 182.0 204.1 -11% -7%

Orderbook 344.6 346.8 -1%

Sales 179.6 172.8 4% 9%

EBIT (before restructuring)

(1.7) 8.0 -121% -99%

Restructuring cost 3.2

EBIT (4.9) 8.0 -161% -139%

22 October 2008Slide 4

Results per quarterResults per quarter

In € million

-50

0

50

100

150

200

250

Orders

Sales

EBIT

Avg. LTM Orders

Avg. LTM Sales

22 October 2008Slide 5

Overall commentsOverall comments

Sales growing 4% despite negative currency impact– Strong growth in Media & Entertainment, but entirely

thanks to the acquisition of HES, flat in Medical Imaging and in Other Markets and drop in Security & Monitoring

– Strong growth in Western Europe, flat in North America, weak in Asia Pacific

Gross profit at € 58.9 million lower than € 66.1 million last year, due to exchange rates, product mix, price pressure and sell-off of slow moving inventory

Operating cost increase driven by increase of R&D and S&M expenses, and by HES acquisition

EBIT at € (4.9) million, € 12.9 lower than 3Q07, after a negative currency impact of € 1.7 million and restructuring charges of € 3.2 million

22 October 2008Slide 6

Evolution of results per divisionEvolution of results per division

In € million 3Q08 3Q07 Sales growth 08/07

Sales % EBIT Sales % EBITAt real

FXAt constant

FX

Media & Entertainment 69.4 0.1% 61.8 5.7% 12% 17%

Security & Monitoring 54.0 -3.4% 58.3 3.9% -7% -4%

Medical Imaging 30.9 8.5% 31.3 9.3% -1% 5%

Other 28.8 -9.0% 28.3 -2.4% 2% 8%

Eliminations (3.6) 0.0% (7.0) 0.0%

Total 179.6 -1.0% 172.8 4.6% 4% 9%

22 October 2008Slide 7

Media & Entertainment Division Media & Entertainment Division (1)(1)

In € million

-20

0

20

40

60

80

100

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

Orders

Sales

EBIT

Avg. LTM Orders

Avg. LTM Sales

22 October 2008Slide 8

Media & Entertainment Division Media & Entertainment Division (2)(2)

Orders/Sales– Overall orders and sales in Events good, mainly supported

by new LED products and High End Systems, acquired in June 2008

– Events orders soft in North America– Media sales and orders improved significantly– Digital Cinema showed a moderate improvement vs 3Q07 in

sales, but strong in orders

Margins– EBIT at 0.1%, weak due to significant lower gross margin,

caused by sell-off of slow moving inventory and competitive pressure in markets with reduced demand

Sales increase 12.3% YoYOrders increasing 23.3% YoYProfit much lower than 3Q07

22 October 2008Slide 9

Security & Monitoring DivisionSecurity & Monitoring Division (1)(1)

In € million

-10

0

10

20

30

40

50

60

70

80

90

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

Orders

Sales

EBIT

Avg. LTM Orders

Avg. LTM Sales

22 October 2008Slide 10

Security & Monitoring Division Security & Monitoring Division (2)(2)

Orders– Marginal decline in orders with strong performance of Traffic

& Surveillance– Continued growth in APAC

Sales – Sales declined 7.4% at constant exchange rates

Margins– EBIT margin very weak at (3.4)% vs 3.9% in 3Q07, due to

lower sales

Good order intake but lower sales resulted in negative EBIT

22 October 2008Slide 11

Medical Imaging Division Medical Imaging Division (1)(1)

In € million

0

10

20

30

40

50

60

Orders

Sales

EBIT

Avg. LTM Orders

Avg. LTM Sales

22 October 2008Slide 12

Medical Imaging Division Medical Imaging Division (2)(2)

Orders / Sales– Orders weak and much lower, as we booked a large one time

order the year before– Healthy sales growth of 5% at constant exchange rates vs

3Q07– Lower sales in mammography caused by stock depletion by

customers, offset by Coronis Fusion ramping up

Margins– Good EBIT margin at 8.5%, vs 9.3% in 3Q07

Continued good sales volume, resulting in good profitability

22 October 2008Slide 13

Other MarketsOther Markets (1)(1)

In € million

-10

0

10

20

30

40

50

OrdersSalesEBITAvg. LTM OrdersAvg. LTM Sales

22 October 2008Slide 14

Other Markets Other Markets (2)(2)

Orders / Sales– Order intake strong in simulation, but weak in avionics and

presentation– Sales growing in avionics, but weaker in simulation and

presentation

Margins– EBIT margin negative at (9.0)% vs 2.4% in 3Q07, as lower

gross profit could not offset the high investments in product development for simulation and avionics

Actions and outlook– All activities related to presentation projectors are being

merged with the events projector business to save cost– Avionics and simulation to be merged into one division to

save costs

Overall weaker sales and high R&D investments result in negative EBIT

22 October 2008Slide 15

Geographical breakdown of salesGeographical breakdown of sales

• EMEA +8%*• Americas -1%*• APAC -3%*

* At real FX

3Q08

53%

31%

16%

EMEA

AMERICAS

APAC

3Q07

48%

32%

20%

EMEA

AMERICAS

APAC

22 October 2008Slide 16

Key figures Income Statement Key figures Income Statement

In € million 3Q08 % 3Q07 %

SalesCost of goods sold

179.6(120.6)

100.0(67.2)

172.8(106.7)

100.0(61.8)

Gross ProfitResearch & DevelopmentSales & MarketingGeneral & AdministrationOther operating result

58.9(20.7)(28.9)(12.1)

0.9

32.8(11.5)(16.1)

(6.7)0.5

66.1(18.0)(26.8)(12.1)

(1.1)

38.2(10.4)(15.5)

(7.0)(0.6)

EBIT before restructuring (1.7) (1.0) 8.0 4.6

Restructuring cost (3.2) (1.8) 0.0 0.0

EBIT (4.9) (2.7) 8.0 4.6

Non-operating result (1.5) (0.8) (0.8) (0.5)

Income Taxes 2.8 1.6 (1.1) (0.6)

Net Income from continuing operations (3.6) (2.0) 6.1 3.5

Net Income from discontinued operations 36.1 20.1 2.3 1.4

Net Income 32.6 18.1 8.5 4.9

EBITDA 10.5 5.8 22.1 12.8

Net Earnings per Share (in €) 2.73 0.70

22 October 2008Slide 17

Key figures Balance SheetKey figures Balance Sheet

In € million 30/09/08 30/06/08

Accounts Receivable 171.6 179.8

Inventory 221.6 223.6

Trade Payables 64.8 74.9

Net Working Capital 251.2 236.4

Net Financial Debt 65.6 108.4

• DSO 10% lower Q on Q

• Inventory turns improved vs June 2008, but further improvement is possible

22 October 2008Slide 18

Expectations full year 2008Expectations full year 2008

A cost reduction plan of € 30 million is being implemented– Internal synergies– Simplification of the organization– Cost containment– Discontinuation of non strategic activities

This plan is being implemented gradually, headcount end September was already reduced by 133 net versus end June

One time restructuring cost expected of around € 20 million, € 4.8 million was already taken in 1st nine months

Although the orderbook is strong, the uncertainty in some of our markets is high

Contrary to the previous guidance, we are no longer confident that 2H08 EBIT will be higher than 1H08 EBIT

22 October 2008Slide 19

Capital reductionCapital reduction

The divestiture of BarcoVision was closed on 30 September 2008. We intended to return the cash from this divestiture to the shareholders by means of a capital reduction

Seen the current turmoil and liquidity risks in the financial markets, we have decided not to go ahead with this capital reduction