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Results 3Q07

Results 3Q07. Martin De Prycker , CEO 24 October 2007. Results 3Q07: reported *. * Including BarcoVision and mechanical part of Manufacturing Services

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Results 3Q07

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  1. Results 3Q07 Martin De Prycker, CEO 24 October 2007

  2. Results 3Q07: reported * * Including BarcoVision and mechanical part of Manufacturing Services ** Not including the parts of Manufacturing Services, divested in 2006*** Not including parts of Manufacturing Services, divested end 2006: € 7.5 million

  3. Results 3Q07: continuing operations * * Excluding BarcoVision and Manufacturing Services ** 16.5% at comparable €/$ rate *** Currency impact on EBIT is around € 3 million negative

  4. Results per quarter: continuing operations in € million

  5. Overall comments on results 3Q07 • Good orders growth, especially in Security & Monitoring and Medical Imaging • Large sales growth of 16.5% vs 3Q06 on comparable basis (including currency evolution) • Strong growth in Media & Entertainment and Security & Monitoring • Stable in Medical Imaging • Decline in Other Markets • Book-to-bill very good at 1.18 • EBIT at € 8.2 million, 15% better than 3Q06, thanks to increased gross profit, despite negative currency impact of around € 3 million

  6. Evolution of results per division(on continuing operations) * 16.5% at comparable €/$ rate

  7. Media & Entertainment Division (1) in € million

  8. Media & Entertainment Division (2) • Orders / Sales • Book-to-bill ratio at 0.93 • Events had double digit sales growth, growing slightly slower than last quarters, as market is waiting for some of our new products • Media had strong increasing sales. Orders were lower than last year due to a very large order for Dubai • DC sales ramping up to deliver from order book – VPF gets introduced on a wider scale, orders awaiting roll out • Profitability • Gross profit increased 20.2% vs the year before • EBIT margin better at 5.5% vs 3.9% in 3Q06, thanks to strong sales increase Sales increased 25.6% EBIT increased 74.1%

  9. Security & Monitoring Division(1) in € million

  10. Security & Monitoring Division (2) • Orders / Sales • Book-to-bill high at 1.09 • Double digit growth in orders, mainly in traffic, broadcast, power distribution and city surveillance • Sales in control rooms strongly growing, and in defense showing first growth, although still moderate • Profitability • Gross profit increased 16.8% vs 3Q06, thanks to higher sales volume • EBIT margin at 3.9% vs -1.3% in 3Q06, thanks to higher gross profit Sales increased 23.2% EBIT positive and promising on the back of growing orders

  11. Medical Imaging Division (1) in € million

  12. Medical Imaging Division (2) • Orders / Sales • Book-to-bill ratio high at 1.62, thanks to one big order to be shipped over the next 12 months • Sales in PACS flat vs 3Q06, particularly due to lower US sales, caused by deficit reduction act • Modality orders and sales flat • Profitability • Gross profit increased by 2.7% vs last year • EBIT margin at 9.3%, lower than 14.9% in 3Q06, as investments in new product development and sales have increased Promising order growth against temporarily weak sales environment

  13. Other Markets(1) in € million

  14. Other Markets (2) • Orders / Sales • Higher orders in simulation and presentation market, but lower in Avionics (although still at high level) • Lower sales in simulation than 3Q06, as some projects shifted to 4Q07 • Profitability • Gross profit margin declined due to lower sales volume • EBIT margin at -1.1% vs 3.7% in 3Q06, due to lower sales and large investments in new products

  15. Status of discontinued operations • The divestiture of BarcoVision to Itema is expected to close end 2007, pending government approvals • Negotiations with potential partner for the mechanical part of Manufacturing Services continue, still targeting to close before end 2007

  16. Geographical breakdown of sales(continuing operations) 3Q06 3Q07

  17. Key figures Income Statement

  18. Key figures Balance Sheet * Only including continuing operations

  19. Expectations 2007 • Highest order book ever increases sales growth targets for 2007 to 7% and 9%, higher than our target of 6% to 9%, despite the strong dollar decline • Strong profit increase for 2007 confirmed versus 2006, despite the weak dollar • We expect an EBIT margin of up to 9% for the reported operations and slightly lower in the continuing operations, due to a higher negative currency impact and the internal profit of the mechanical subcontracting unit, which is no longer included

  20. New Capital Structure • We are expected to receive the proceeds from the sales of BarcoVision upon closing, which will create a cash surplus • The Board of Directors will propose to the shareholders to return around € 70 million from the divestiture to the shareholders by a capital reduction • Even after the capital reduction, Barco will still have a strong balance sheet, to support external and internal growth and to create higher shareholder return • Timeline around mid 2008

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