For a smarter tomorrow. Shareholders guide 2013

Transcription

1 For a smarter tomorrow Shareholders guide 213

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3 shareholders guide 213 Barco 3 table of contents Letter from the Ceo 4 Barco at a glance 5 Our business areas 6 Company profile 8 Our strengths 1 Our strategy 11 Corporate governance 16 Financial performance 18 Key figures 19 Financial highlights - corporate 2 Financial highlights - divisions 22 The Barco share 25 Share performance 26 Key shareholder figures 27 Liquidity 28 Dividend 29 Shareholders structure 3 Publications 31 Stay in touch Contact 32 Financial calendar 32

4 4 Barco shareholders guide 213 LETTER FROM THE CEO Dear shareholder, Dear reader, 21 to 212 have been three great years for Barco, in which we managed to meet all our ambitious sales and profit targets. In 212 and for the third consecutive year, Barco achieved double-digit growth. We broke through the one billion euro barrier, realizing a top line of billion and an EBITDA contribution of almost 14% of sales. Profitability has moved up from a negative EBIT in 29 to 1 million in 212. With sales at an all-time high of 1.15 billion and order intake at 1.13 billion, it really was a year of record breaking and setting new standards. To be one The company has fundamentally changed over the past couple of years, an observation which is shared by many in- and outsiders and which is being confirmed by top and bottom-line numbers and associated KPI s. Our passionate and committed employees have contributed greatly to these favorable results. Thanks to their strong commitment, customer loyalty is at an all-time high, our operational excellence is paying off and we re on top of the game in all of our four core markets. We are sure we can count on the Barco community to achieve next-level growth in the years to come. Towards networked visualization and collaboration Barco has set out a very clear strategy to drive its future growth. Our traditional visualization core has propelled us to the top of our market and still offers substantial growth potential. Built on these solid foundations, we are working hard on new technologies, continuing our expansion into the mid-range segment in all of our key markets, and recapturing market share in corporate AV. In addition, we are moving beyond display and projection technology to become a leader in networked visualization and collaboration as well. In that way, we can meet the growing user demand for integrated end-to-end systems that combine excellent visualization features with connectivity, thus differentiating ourselves by offering access control, enhanced security, recording and collaboration capabilities. Confident about the company s future potential, Barco s Board voted to keep most financial resources in the company ready and primed for future investment. With a dividend of 1.4 per share, we express our gratitude to our shareholders for investing in our future. We are well aware of the task in front of us. The Board of Directors, management and employees are all ready to help set new levels of benchmark performance in the years to come and further drive shareholder value. CEO Eric Van Zele

5 shareholders guide 213 Barco 5 Barco at a glance our business areas 6 COMPANY PROFILE 8 our strengths 1 our strategy 12 CORPORATE GOVERNANCE 16

6 6 Barco shareholders guide 213 OUR BUSINESS AREAS Projection At events, concerts, open-air festival stages, on flagship stores façades, in legendary sports stadiums, inside interactive museums or in auditoria and corporate meeting rooms: Barco s visualization technology is omnipresent. Since the turn of the century, Barco has also been bringing movie magic to life through superb digital projection quality and breakthrough technological innovation a path we ll continue to walk in the future. HEALTHCARE By consistently delivering superior imaging and technological innovations, Barco has established a solid reputation for its high-quality, reliable healthcare visualization solutions. Barco is the world s No. 1 provider of medical displays. Its increased focus on collaboration and networking helps hospitals build the digital operating rooms of the future. The point-of-care solutions, too, are a perfect fit with Barco s long-term vision to provide healthcare solutions that improve healthcare efficiency, while ensuring optimal patient comfort. AREAS OF APPLICATION» Visitor attractions» Corporate AV» Rental & staging» Research, design & scientific» Movie theaters» Theater lobby» High-end residential AREAS OF APPLICATION» Radiology» Pathology» Mammography» Dentistry» Surgery» Point of care» Clinical specialties

7 shareholders guide 213 Barco 7 As a global technology company, Barco designs and develops visualization solutions that encompass the entire visualization spectrum, for a variety of professional markets. By offering top-quality, user-friendly imaging products, we optimize productivity and business efficiency. Barco (NYSE, Euronext Brussels: BAR) employs about 3,9 people in over 9 countries. Its facilities for Sales & Marketing, Customer Support, R&D and Manufacturing span the globe from Europe and America through to Asia-Pacific. Advanced Visualization From traffic management, security and telecoms, to utilities and process control systems: Barco provides every control room with the necessary building blocks for a highly reliable visualization system. The combination of high-quality visualization and networked distribution helps operators view the problem area better, share ideas faster and resolve it quicker, thus smartening up their business. DEFENSE & AEROSPACE Defense and aerospace applications require visualization solutions that ensure long-term performance, even in the most extreme conditions. That s why Barco s high-performance display systems, large-screen visualization platforms, advanced processing modules and network-client applications ensure continuous information availability an absolute must for safe operations. Supporting land, sea and air forces in 25 programs worldwide, Barco sets the tone in innovation for smarter aviation, situational awareness, communication and collaboration. AREAS OF APPLICATION» Emergency operations centers» Oil & gas» Security/CCTV» Telecom» Traffic management» Utilities & process control» Automotive» Science» Training & simulation AREAS OF APPLICATION» Air traffic control & management» Avionics» C4ISR» Command centers» Training VENTURES

8 8 Barco shareholders guide 213 COMPANY PROFILE COMPANY STRUCTURE 213 Healthcare projection» including projectiondesign Defense & Aerospace advanced visualization» including dzine, ClickShare and AWIND VENTURES «LiveDots «High End Systems «Orthogon «Silex OUR STRATEGIC ACQUISITIONS IP VIDEO SYSTEMS On 1 February 212, Barco acquired IP Video Systems (IPVS). Based in California, US, IPVS is a market leader in hard- and software technologies for real-time, high-definition media streaming, recording and IP networks management. The acquisition further strengthens Barco s Corporate Technology and Platforms team - a cross-divisional R&D lab that conducts technology and platform development, thus ensuring continued innovation across Barco s target markets. JAOtech On 3 February 212, Barco took a key step towards broadening its healthcare offering. The acquisition of UK-based JAOtech, a patient bedside terminal provider, fits within Barco s long-term vision to improve healthcare efficiency while growing its healthcare business by expanding into multiple healthcare segments. PROJECTIONDESIGN In February 213, Barco completed the acquisition of Norway-based projectiondesign, a leader in projection technology. This transaction is a key step in Barco s strategy to expand into the mid-segment of its target markets and extend its leadership position in high-performance projection technology. AWIND In February 213, Barco announced the acquisition of Taiwan-based company AWIND, a leading provider of wireless content sharing and WiFienabled presentations. This transaction leverages Barco s visualization strengths to establish a leadership position in professional networking and collaboration.

9 shareholders guide 213 Barco 9 Sales per division Geographical breakdown of sales Defense & Aerospace 11.3% Ventures 9.7% Entertainment 41.5% EMEALA* 42% EMEALA* 44% % 34% Asia-Pacific North-America 23% 33% Asia-Pacific North-America 212 Geographical breakdown of ORDERS EMEALA* 44% EMEALA* 41% % Healthcare 19.7% Control Rooms & Simulation 22% 34% Asia-Pacific North-America 25% 34% Asia-Pacific North-America These figures are pro-forma figures * Europe, Middle East, Africa, Latin America

10 1 Barco shareholders guide 213 OUR STRENGTHS 2+ More than 2 technology patents 9+ Present in more than 9 countries 7 Sharing a common set of 7 values TECHNOLOGICAL LEADERSHIP» Strong investment in R&D, new technologies and innovation» Barco Labs technology center to streamline research and share knowledge» Almost one in five employees is an engineer» Extensive patent portfolio GLOBAL PRESENCE» Worldwide R&D and technologies and innovation manufacturing centers» Strong presence in emerging economies» Global accounts in key markets» Regionally focused sales and service teams DEDICATED PEOPLE» 3,9 skilled and passionate employees» Sharing a common set of 7 strong values» Multinational, multidisciplinary teams 12+ Dozens of strategic partnerships and ventures 83 Customer loyalty consistently above benchmark score INDUSTRIAL PARTNERSHIPS» Partnerships with industry leaders such as Texas Instruments, Samsung, and Hitachi» Partnerships with distributors, VARs, and resellers including Dell, HP, and Ingram Micro FOCUS CUSTOMER AND MARKET» Market-oriented business groups with a regional focus» Increased manufacturing and R&D in emerging countries such as China and India» Customer loyalty exceeds the industry benchmark score

11 shareholders guide 213 Barco 11 OUR STRATEGY vision AMBITION Global leadership in collaborative visualization systems for professional use. STRATEGIC AXES MARKETS SEGMENTS objective To enable our customers to run their businesses in a more effective way through the offering of best-in-class networked visualization solutions. technology CAPABILITIES GEOGRAPHY Barco will continue to fulfill customer demands and retain differentiation over competition and intends to realize its growth ambitions by moving beyond visualization and include networking and collaboration in the product portfolio. Barco s strategy for growth is being deployed in three domains, i.e. geography, markets, capabilities.

12 12 Barco shareholders guide 213 1) Geography: Extending into the emerging regions Further build up Barco s position in emerging countries (BRIC) latin america APAC greater china Barco will increase revenues from growth markets by strengthening its focus on BRIC and other emerging countries, while consolidating its leadership position in traditional markets in Western Europe and the US. PROGRESS» Revenue growth of 15%, 32% and 157% achieved in China, India and Latin America respectively» Acquisition of Taiwan-based AWIND» Joint venture with China Film Group» Exciting references that highlight Barco s penetration into emerging markets, e.g. Exclusive contract to provide clinical review displays for e-hospital project in Gansu, China Cinemark, Brazil s largest digital cinema chain, chooses Barco projectors to expand its digital infrastructure China s state grid center features a Barco video wall this is the largest control center display in China Largest suspended videowall, installed at Airtel India, the fourth biggest mobile operator in the world

13 shareholders guide 213 Barco 13 2) Markets: Sustain Market leadership position high mid low A. Focus on the core markets in Projection, Healthcare and Advanced Visualization aiming to sustain or reinforce Barco s leadership position by: i. Expanding to the mid-range segment of those markets ii. Extending the offer to include connectivity (networking) & interactivity (collaboration) B. Expand to volume markets to increase scalability and competitiveness PROGRESS» Undisputed market leader in Digital Cinema, Healthcare and Enterprise markets» Double-digit growth for three consecutive years» Acquisition of patient bedside terminal provider JAOtech» Acquisition of Norway-based projectiondesign, a well-known provider of mid-range projectors = a key step to enter the lucrative midsegment» Exciting product launches that highlight Barco s move towards the midsegment: Launch of DP2K-1Sx projector designed for smaller screens Launch of MVL video walls designed for small to medium-sized control rooms

14 14 Barco shareholders guide 213 3) Capabilities: Lead in technology and extend the value proposition VISUALIZATION display technology projection technology networked VISUALIZATION connectivity collaboration A. Lead in technological innovation on the visualization core B. Expand visualization product portfolio with software-enabled systems, including networking, collaboration, and services C. Include beyond premise based also cloud based solutions in the portfolio PROGRESS» Acquisition of IPVS and integration into the Barco company as a center of competence for networked visualization» Acquisition of AWIND allows leveraging of visualization capabilities for professional networking and collaboration» Launched at the end of FY 211, the Nexxis IP imaging and audio management platform for the digital operating room gains foothold» Launch of the ClickShare presentation and collaboration system and ongoing extension of the ClickShare distributor network

15 shareholders guide 213 Barco 15 STRATEGIC ENABLERS ONE JOINT PROCUREMENT TEAM COMMON OPERATIONS BACKBONE FOCUS ON 4 MANUFACTURING SITES PRODUCT QUALITY IN NEW PRODUCT DEVELOPMENT MIGRATION TO CORPORATE WIDE ERP-PACKAGE 1) FOCUS ON OPERATIONAL EXCELLENCE PROGRESS» Golden Peacock National Quality Award» Several Supplier of the Year awards» ROCE stands at 24% compared to 2% in 211» Working Capital/Sales < 1% 2) CULTURE & VALUE PROGRAM: TOBEONE Commitment, ambition and excellence are what it takes for Barco tobeone and lead the way in professional visualization. These values help us build a strong Barco brand, for both customers and employees.» Employee satisfaction score of 72 versus 59 in 21» Customer loyalty (83) exceeds the industry benchmark score (68)

16 16 Barco shareholders guide 213 CORPORATE GOVERNANCE BOARD OF DIRECTORS [1] [2] [3] [4] [5] [6] [7] [8] Function Representing Mandate end [1] Herman Daems Chairman 216 [2] Eric Van Zele President & CEO 214 [3] Antoon De Proft Director ADP Vision BVBA 215 [4] Bruno Holthof Director Praksis BVBA 214 [5] Luc Missorten Director Lumis NV 214 [6] Jan P. Oosterveld Director Oosterveld Nederland BV 214 [7] Christina van Wackerbarth Director KANKU BVBA 216 [8] Ashok K. Jain Director Adisys Corporation 217 Kurt Verheggen Secretary

17 shareholders guide 213 Barco 17 CORE LEADERSHIP TEAM [9] [1] [11] [12] [13] [14] [15] [16] Function [2] Eric Van Zele President & Chief Executive Officer [9] Carl Peeters Chief Financial Officer [1] Steve Leyland Chief Commerical Officer [11] Filip Pintelon Chief Operations Officer [12] Jan Van Acoleyen Chief Human Resources [13] Wim Buyens General Manager Projection [14] Piet Candeel General Manager Healthcare [15] Jacques Bertrand General Manager Advanced Visualization [16] Dave Scott General Manager Defense & Aerospace

18 18 Barco shareholders guide 213 Financial performance KEY FIGUREs 19 FINANCIAL HIGHLIGHTS CORPORATE 2 FINANCIAL HIGHLIGHTS DIVISIONs 22

19 shareholders guide 213 Barco 19 key figures* Sales (in million euro) Orders (in million euro) EBIT (before restructuring & impairment) (in million euro) 1,2 1,2 1,1 1,1 1, ,41.2 1, , , , reported continuing reported continuing reported continuing EBITDA (before restructuring & impairment) (in million euro) Net income (attributable to equityholders) (in million euro) Order book (in million euro) reported continuing reported continuing reported continuing * Figures representing the company structure before the organizational changes of 213

20 2 Barco shareholders guide 213 FINANCIAL HIGHLIGHTS - CORPORATE (In thousands of euro) Income statement before goodwill impairment Orders 1,133,781 1,82, ,263 Orderbook 461, , ,9 Net sales 1,155,984 1,41, ,999 Gross profit 375, , ,516 EBIT 1,238 78,359 45,135 Profit/(loss) before taxes 98,656 65,829 43,625 EBITDA (a) 159,476 13,223 98,752 (In thousands of euro) Income statement after goodwill impairment EBIT 97,567 68,359 45,135 EBITDA (a) 159,476 13,223 98,752 Free cash flow 121,577 81,237-7,9 Net income from continuing operations 94,241 75,85 43,625 Net income from discontinued operations - - Net income attributable to the equityholder 94,241 75,85 43,625 Ratios EBIT on sales 8.7% 7.5% 5.% EBITDA on sales 13.8% 12.5% 11.% Net financial cash (/debt) on EBITDA 69.7% 47.3% 9.% Goodwill impairment -2,671-1, (In thousands of euro) Balance sheet & personnel Equity 538,5 46,73 395,591 Balance sheet total 921, , ,699 Net financial cash/(debt) 111,166 61,635 8,857 Operating capital employed 389, , ,68 Net working capital 95, , ,145 Personnel on 31 December 3,727 3,57 3,499 Ratios DSO (b) Inventory turns (c) 3.1 2,7 2,3 DPO (d) ROCE (%) 24% 2% 12% (a) EBIT+ depreciation on capital expenditure (PP&E) + amortization on capitalized development cost (b) DSO = ((Trade debtors, net) / (sales past quarter))*9 (c) Inventory turns = 12 / [Inventory / (Average Monthly Sales x Material Cost of Goods Sold %)] (d) DPO = trade payables / (material cost + services and other costs + inventory movement + purchases of (in)tangible fixed assets) x 365 Ratios EBIT on sales 8.4% 6.6% 5.% EBITDA on sales 13.8% 12.5% 11.% Net financial cash (/debt) on EBITDA 69.7% 47.3% 9.% (In euro) Key figures per share Number of shares on 31 December (in thousands) 12,757 12,755 12,67 Per share (in euro) EPS Diluted EPS Gross dividend Net dividend Gross dividend yield (e) 2.6% 2.8% 2.1% Yearly return (f) 44.2% -17.4% 73.% Pay-out ratio (g) 19.% 18.5% 29.% Price/earnings ratio (h) (e) Gross dividend/ closing rate on 31 December 212 (f) Increase or decrease share price + gross dividend, divided by closing share price of previous year (g) Gross dividend x number of shares on 31 December / net result (h) Share price 31 December / net result per share Share price (in euro) Average closing price Highest closing price Lowest closing price Closing price on 31 Dec Average number of shares traded daily 3,83 28,13 3,235 Stock market capitalization on 31 December (in millions)

21 shareholders guide 213 Barco 21 Sales and order intake Evolution sales per year half 212 vs 211 (in million euro) Evolution orders per year half 212 vs 211 (in million euro) Evolution order book per year half 212 vs 211 (in million euro) st half 2nd half 1st half 2nd half 1st half 2nd half % % 13.4% % % 11% % % -3.9% Return on Capital Employed In thousands of euro Trade debtors Inventory Trade payables ( ) (11.791) ( ) Other working capital (183.86) (148.28) (128.96) Total working capital Long term assets & liabilities Operating capital employed Goodwill Operating capital employed (incl goodwill) EBIT before restructuring & impairment ROCE after tax (%) (*) 24% 2% 12% (*) Tax rate used is the effective tax rate, in 212 5%, in 211 and 21 % (in 211 effective tax rate is positive, therefore kept at %).

22 22 Barco shareholders guide 213 FINANCIAL HIGHLIGHTS - DIVISIONS results per division continuing operations In thousands of euro Sales EBITDA % EBITDA Sales EBITDA % EBITDA Entertainment % % Healthcare % % Control Rooms & Simulation % % Defense & Aerospace % % Ventures % % Eliminations Group % % Entertainment division sales & ebitda 212 vs 211 evolution sales per half year 212 vs 211 SALES EBTIDA (in million euro) (in million euro) st half 2nd half % % 15.7%

23 shareholders guide 213 Barco 23 Healthcare division sales & ebitda 212 vs 211 evolution sales per half year 212 vs 211 SALES EBTIDA (in million euro) (in million euro) st half 2nd half % % 4.4% Control Rooms & Simulation division sales & ebitda 212 vs 211 evolution sales per half year 212 vs 211 SALES EBTIDA (in million euro) (in million euro) st half 2nd half % % 8.1%

24 24 Barco shareholders guide 213 Defense & Aerospace division sales & ebitda 212 vs 211 evolution sales per half year 212 vs 211 SALES EBTIDA (in million euro) (in million euro) st half 2nd half % % 8.4% Ventures sales & ebitda 212 vs 211 evolution sales per half year 212 vs 211 SALES EBTIDA (in million euro) (in million euro) st half 2nd half % % 4.2%

25 shareholders guide 213 Barco 25 The Barco share SHARE PERFORMANCE 26 KEY SHAREHOLDER FIGURES 27 LIQUIDITY/VELOCITY 28 DIVIDEND 29 SHAREHOLDERS STRUCTURE 3 PUBLICATIONS 31

26 26 Barco shareholders guide 213 SHARE PERFORMANCE Barco / Bel 2 / Next 15 Barco / Eurostoxx 5 / Eurostoxx Technology / Nasdaq Barco Bel 2 Next Barco Eurostoxx 5 Eurostoxx Technology Nasdaq INFORMATION ABOUT THE SHARE Euronext Brussels Barco share BAR ISIN BE37979 Barco VVPR-strip BARS ISIN BE Reuters Bloomberg BARBt.BR BAR BB Average number of shares traded On daily basis (212) (*) 3,83 Yearly volume (212) (*) million euro Velocity (212) 52.25% Total yearly volume 7,892,596 Market capitalization 31 December million euro Highest capitalization 75.7 million euro Lowest capitalization million euro Share price 31 December euro Share price 31 December euro (*) The average number of shares traded daily is taking into account the trades on NYSE Euronext as well as registered trades on alternative platforms BATS, Chi-X, Turquoise and Equiduct. On average 16% of these trades were registered on the alternative platforms combined and 84% on NYSE Euronext.

27 shareholders guide 213 Barco 27 KEY SHAREHOLDER FIGURES In euro Number of shares on 31 Dec (in thousands) 12,757 12,755 12,67 Per share (in euro) EPS Diluted EPS Gross dividend Net dividend Gross dividend yield (a) 2.6% 2.8% 2.1% Yearly return (b) 44.2% -17.4% 73.% Pay-out ratio (c) 19.% 18.5% 29.% Price/earnings ratio (d) (a) Gross dividend/ closing rate on 31 December 211 (b) Increase or decrease share price + gross dividend, divided by closing share price of previous year (c) Gross dividend x number of shares on 31 December / net result (d) share price 31 December / net result per share In euro Share price Average closing price Highest closing price Lowest closing price Closing price on 31 December Average number of shares traded daily 3,83 (e) 28,13 3,235 Stock market capitalization on 31 December (in millions)

28 28 Barco shareholders guide 213 LIQUIDITY Daily average shares traded , 55, 5, 45, 4, 35, 3, 25, 2, 15, 1, 5, 6, 55, 5, 45, 4, 35, 3, 25, 2, 15, 1, 5, January February March April May June July August September October November December January February March April May June July August September October November December The average number of shares traded daily takes into account the trades on NYSE Euronext as well as registered trades on alternative platforms BATS, Chi-X, Turquoise and Equiduct. On average 16% of these trades were registered on the alternative platforms combined and 84% on NYSE Euronext.

29 shareholders guide 213 Barco 29 DIVIDEND DIVIDEND INFO Ex-coupon date May 3, 213 Record date May 7, 213 Date of payment May 8, 213 Gross amount EUR 1.4 Net amount EUR 1.5 (*) Coupon number 11 Barco s dividend policy is to provide investors with a steady dividend growth and shuns dividend decreases. Only in 28 and 29 Barco had to break this policy because of extremely adverse business conditions. (*) 25% withholding tax gross DIVIDEND net DIVIDEND pay-out ratio per share 2,5 1% pay-out 2, 8% 1,5 6% 1, 4%,5 2%, %

30 3 Barco shareholders guide 213 SHAREHOLDERS STRUCTURE Party Proportion No. of shares Gimv 9.78% 1,249,921 Templeton Investment Counsel, LLC 4.98% 636,239 Geographical distribution of shares held by identified institutional shareholders in number of shareholders Barco 5.78% 737,963 Public 79.46% 1,153,923 Total 1.% 12,778,46 Fully diluted Gimv 9.37% 1,249,921 Templeton Investment Counsel, LLC 4.77% 636,239 Barco 5.53% 737,963 Public 8.33% 1,717,1 Total 1.% 13,341,133 Ireland: 1 Japan: 1 Italy: 2 Hong Kong: 2 Australia: 2 Luxembourg: 4 The Netherlands: 5 Canada: 5 Germany: 9 France: 11 Finland: 1 Sweden: 1 Norway: 1 Cayman Islands: 1 United States: 29 United Kingdom: 21 Switzerland: 12 Belgium: 14 institutional shares by geography total shareholder composition Rest of Europe: 7% Rest of the World: 2% Unassigned: 1% France: 6% Belgium: 3% Company related: 6% Germany: 7% United Kingdom: 8% Retail: 23% Canada: 13% Institutional: 61% United States: 27%

31 shareholders guide 213 Barco 31 PUBLICATIONS The Barco Investor Relations website ( provides access to a variety of publications, including the annual report, half-year report, shareholders guide, press releases and news, (audio cast) presentations and video messages from the CEO. Investors can register to receive newsletters on the website and follow us on social networks. annual report 213 shareholders guide months ended REPORT 213 Report 6 month period ended June 3, 213 CEO Eric van Zele comments on the 212 results

32 STAY IN TOUCH The Barco website offers more information about the company. Consult the Investors section for more up-to-date information on events, press releases and a wide array of other investor tools. FINANCIAL CALENDAR 213 Communication of results 2H12 and FY12 February 7 Trading update 1Q13 April 24 Annual General Shareholders meeting April 25 Communication of results 1H13 July 19 Capital Markets Day 213 September 1 Trading update 3Q13 October 23 More information For more information please contact: Carl Vanden Bussche Director Investor Relations carl.vandenbussche@barco.com