Barco : First Half Year 2023 results

Results 1H23 - Analyst & Investor call

10% sales growth, fueled by strong performance of Entertainment Step-up in profitability with EBITDA margin at 12.5%

An Steegen & Ann Desender - July 19th 2023 - Kortrijk

Preliminary notes

The statutory auditor has confirmed that the audit, which is substantially complete, has not to date

revealed any material misstatement in the draft consolidated accounts, and that the accounting data reported in the press release is consistent, in all material respects, with the draft accounts from which it has been derived.

Safe harbor statement

This deliverable may contain forward-looking statements. Such statements reflect the current views of management regarding future events, and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Barco is providing the information as of this date and does not undertake any obligation to update any forward-looking statements contained in this deliverable in light of new information, future events or otherwise.

Barco disclaims any liability for statements made or published by third parties and does not undertake any obligation to correct inaccurate data, information, conclusions or opinions published by third parties in relation to this or any other deliverable issued by Barco.

Glossary

All definitions for alternative performance measures (APM's) are available in the glossary of the half year report and on the investor portal (www.barco.com/en/about-barco/investors)

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Executive summary | Group results 1H23

10% sales growth, fueled by strong performance Entertainment

60% revenue from eco-labelled products Orderbook @ € 506m ; book-to-bill > 1

EBITDA margin growing to 12.5%, +2.7ppts yoy

Better product mix, yielding from gross profit actions and eased supply chain situation offset the impact from high inflation rates and continued investments

Net earnings at € 33m

Outlook - reconfirming sustainable profitable growth

Expecting high-single digit sales growth y-o-y, with a tempered topline growth in China EBITDA accretion maintained; Reaffirming EBITDA margin >14% for the full year 2023

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Financial Highlights

10% sales growth, step up in profitability to 12.5%

ORDERS

vs. 1H22

• Double digit sales growth

• Sales ↑ € 48m, growth in all regions, highest in EMEA; APAC

SALES

€ 541.1m

€ 520.9m

+6.3%

+10.2%

hampered by China

• Orderbook @ € 505.8m, € +9.3m vs year-end '22

Gross profit

% Sales 40.9%

EBITDA

% Sales 12.5%

In euro

€ 65m

Free Cash Flow € -24.1m

+3ppts

+2.7ppts + 18.8m

+3.9m

• EBITDA at 12.5%, ↑ 2.7 ppts yoy (€ +19m)
• Steadily improving gross margins: +3ppts vs 1H22, +1ppt vs 2H22
• OPEX contained in line with sales growth, managing inflation impact
• Free cash flow € -24m
•	Incl € 21m capex: Cinema-as-a-service & manufacturing footprint
• Working capital (inventories) still high, decreasing since 2Q
•	ROCE at 18%

Net Income

EPS

€ 33.3m

+ 10.9m

• Net income € 33.3m,↑ € 10.9m

€ 0.37 / Share

4

+0.12

• Net after € 6.6m restructuring cost linked to

Large Video Walls

Sales growth by division 1H23

Sales growth in all regions, highest in EMEA while APAC is tempered by China

EMEA  15%

• Growth driven by high demand in Cinema and Immersive Experience
• For Enterprise and Healthcare, slower investments in Western Europe result in some project delays

AMERICAS  8%

• Solid market demand and eased supply result in strong growth in Cinema and Immersive Experience
• Higher interest rates and uncertain economic climate slowed down investments in Diagnostic imaging and Large Video Walls
• Timing difference phasing in / phasing out of Surgical & Modality projects

APAC  5%

• Strong recovery and high demand in APAC for Cinema, Immersive Experience and Meeting Experience
• Tempered by slower business pick-uppost-pandemic in China

5 Note: ~No material currency impact versus last year