14 May 03, page 1Company Confidential

Results First Quarter 2003

First Reporting in IFRS Format

Press Conference

May 14, 2003

Martin De PryckerPresident & CEO

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

14 May 03, page 3Company Confidential

Results per Quarter

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OrdersSalesEBI TA

in € mio

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

14 May 03, page 5Company Confidential

BarcoProjection (1)

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Q1 02 Q2 02 Q3 02 Q4 02 Q1 03

OrdersSalesEBI TA

in € mio

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

14 May 03, page 7Company Confidential

BarcoView (1)

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OrdersSalesEBI TA

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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

14 May 03, page 9Company Confidential

BarcoVision (1)

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in € mio

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 %

14 May 03, page 11Company Confidential

Barco Subcontracting

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Weaker orders and sales but stable profit margin at 4.8 %

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

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

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

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

14 May 03, page 16Company Confidential

Introduction IFRS

Antoon Van PetegemVice-President & CFO

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

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

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

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

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

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

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

14 May 03, page 24Company Confidential

Questions and Answers