13 february 2008 company confidential results 4q07 and fy07 martin de prycker, ceo 13 february 2008

13 February 2008Company confidential

Results 4Q07 and FY07Results 4Q07 and FY07

Martin De Prycker, CEO

13 February 2008


Results 4Q07 and FY07Results 4Q07 and FY07

Results 4Q07 and FY07

Dividend


Highlights 2007Highlights 2007

Strong sales growth 10%

Strong EBIT growth 12.5%

Strong EPS growth 60%

despite very negative currency impact


Dividend


Results 4Q07 and 2007 Results 4Q07 and 2007 *

in € million

4Q06** 4Q07 Growth 4Q07/4Q06

2006** 2007 Growth 2007/2006

Orders 194.2 200.9 3.4% 805.1 859.4 6.7%

Sales 219.1 240.5 9.8% 737.9 810.2 9.8%

EBIT 25.0 29.8 19.2% 56.8 68.3 20.2%

EBIT % 11.4% 12.4% 7.7% 8.4%

EPS (in €) 0.67 1.92 186.6% 2.76 4.43 60.5%

* Including BarcoVision and mechanical part of Manufacturing Services ** Not including the parts of Manufacturing Services, divested in 2006


Dividend


Results 4Q07 and 2007: continuing operations Results 4Q07 and 2007: continuing operations *

* Excluding BarcoVision and Manufacturing Services

in € million 4Q06 4Q07 Growth 4Q07/ 4Q06

2006 2007 Growth 07/06

At real FX At constant FX

Orders 180.2 186.6 3.6% 746.1 795.4 6.6%

Order book 277.6 304.5 9.7% 277.6 304.5 9.7%

Sales 205.5 225.4 9.7% 681.0 747.2 9.7% 15%

EBIT 22.9 27.0 17.9% 51.1 57.5 12.5% 32%

EBIT % 11.1% 12.0% 7.5% 7.7%


Dividend


Results per quarter: continuing operationsResults per quarter: continuing operationsin € million

0

50

100

150

200

250

Orders

Sales

EBIT

Avg. LTM Orders

Avg. LTM Sales


Dividend


Highlights 4Q07 Highlights 4Q07 (continuing operations)(continuing operations)

Moderate growth in orders at 3.5%

Strong growth in sales (9.7%) and EBIT (17.9%)

All divisions growing except Medical Imaging

EBIT negatively impacted by FX evolution with about € 6.7 million


Dividend


Evolution of results per division 4Q07Evolution of results per division 4Q07(continuing operations)(continuing operations)

in € million 4Q06 4Q07 Growth 07/06

Sales % EBIT Sales % EBIT At real FX

At constant FX

Media & Entertainment 56.8 (5.8%) 78.4 6.9% 38% 48%

Security & Monitoring 75.3 18.3% 77.4 16.1% 3% 8%

Medical Imaging 38.5 15.9% 34.2 5.6% (11%) (5%)

Other Markets 41.3 15.2% 43.9 16.6% 6% 12%

Total 205.5 11.1% 225.4 12.0% 10% 17%


Dividend


Headlines 2007 Headlines 2007 (continuing operations)(continuing operations)

Very strong growth in sales (9.7%), orders (6.6%) and EBIT (12.5%), thanks to our focused approach on growth markets, despite the strong negative currency impact

Excluding exchange impact, sales in all divisions have grown Increased gross profit following higher sales volume. Gross

profit margin 1.8% lower due to changing product mix and currency evolution

FX impact on EBIT is around € 10 million Finalizing our divestment strategy Strong order book end 2007 at € 304.5 million, 9.7% higher

than end 2006 Focus on working capital shows first result with decreased

DSOKey initiatives to reduce inventory have been taken, but do not yet yield significant results, especially in Media & Entertainment


Dividend


Evolution of results per division 2007Evolution of results per division 2007(continuing operations)(continuing operations)

in € million 2006 2007 Growth 07/06

Sales % EBIT Sales % EBIT At real FX

At constant FX

Media & Entertainment

216.8 1.2% 278.5 7.2% 28% 34%

Security & Monitoring 220.9 6.9% 232.4 6.8% 5% 9%

Medical Imaging 133.3 17.2% 130.2 9.6% (2%) 3%

Other Markets 136.7 7.4% 136.7 6.6% - 4%

Total 681.0 7.5% 747.2 7.7% 10% 15%


Dividend


Media & Entertainment Division Media & Entertainment Division (1)

in € million

-20

0

20

40

60

80

100

Orders

Sales

EBIT

Avg. LTM Orders

Avg. LTM Sales


Dividend


Media & Entertainment 2007 Media & Entertainment 2007 (2)

Orders– Orders growing 9% vs 2006– Orders in Events growing vs 2006, in line with the positive trend in the

market, although 2nd half of 07 showed reduced growth rate– Orders in Media flat – Orders in Digital Cinema strongly growing, as the Digital Cinema market

expanded

Sales– Sales growing 28% vs 2006– Sales in Events strongly growing, but slowing down in second half of 07– Media sales growing by 31%– Digital Cinema sales growing fast, specifically thanks to a large China

project

Margins– Gross profit improved 28% compared to 2006– EBIT strongly improved to 7.2%

Sales increased 28%Excellent profit improvement


Dividend


Security & Monitoring DivisionSecurity & Monitoring Division (1)

in € million

-10

0

10

20

30

40

50

60

70

80

90

Orders

Sales

EBIT

Avg. LTM Orders

Avg. LTM Sales


Dividend


Security & Monitoring 2007 Security & Monitoring 2007 (2)

Orders– Orders growing more than 15%, with a strong contribution

from the broadcast, defense and air traffic management markets

– Order book very high at € 125 million

Sales– Sales growing more than 5% vs 2006, in all markets, except

in defense

Margins– Gross profit only growing moderately vs 2006, due to price

pressure and dollar erosion– EBIT margin at 6.8% vs 6.9% last year

Sales growing more than 5% Orders growing more than 15%


Dividend


Medical Imaging Division Medical Imaging Division (1)

in € million

0

10

20

30

40

50

60

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

4Q07

Orders

Sales

EBIT

Avg. LTM Orders

Avg. LTM Sales


Dividend


Medical Imaging 2007 Medical Imaging 2007 (2)

Orders– Orders declining 6.3% vs 2006, mainly in the US, caused by

Deficit Reduction Act, despite strong growth in EMEA and APAC

Sales– Overall sales declining 2.3% vs 2006, but still growing at

constant exchange rates– Sales in the PACS market lower, (due to the US only),

partially offset by strong growth in modality

Margins– Gross profit margin declining, due to lower sales volume,

product mix and cost– EBIT margin declining from 17.2% to 9.6%, due to lower

volume and lower gross margin

Weak orders and sales,pulling EBIT down


Dividend


Other MarketsOther Markets (1)

in € million

-5

0

5

10

15

20

25

30

35

40

45

Orders

Sales

EBIT

Avg. LTM Orders

Avg. LTM Sales


Dividend


Other Markets 2007 Other Markets 2007 (2)

Orders– Orders in other markets increased, mainly driven by flight

simulation and oil & gas market

Sales– Sales in simulation market growing at 8.2%, mainly thanks to

flight simulation and oil & gas– Sales in avionics strongly growing at 12.8%– Sales in presentation declining as the new products were only

introduced at the end of 2007

MarginsEBIT in simulation market improving, but growth offset by increased R&D in Avionics and lower sales in presentation


Dividend


Status of discontinued operationsStatus of discontinued operations

The divestment of BarcoVision to Itema is expected in the near term, as soon as pending approvals of antitrust authorities will have been received

Mechanical part of Manufacturing Services sold to BMTech. The impact of the transaction is neutral


Dividend


Geographical breakdown of salesGeographical breakdown of sales

2007

45,50%

34,50%

20,00%

EMEA

AMERICAS

APAC

2006

18,00%

46,00%

36,00%

EMEAAMERICASAPAC


Dividend


China becomes second geographical marketChina becomes second geographical market

Strong growth in orders (79%) and sales (61%) in China Successful growth in

– Control rooms– Media– Events– Digital Cinema

Shanghai stadium Jingxin


Dividend


Key figures Income Statement 2007Key figures Income Statement 2007

in € million FY 06 % FY 07 %

SalesCost of goods sold

681.0(404.7)

100.0(59.4)

747.2(457.5)

100.0(61.2)

Gross ProfitResearch & DevelopmentSales & MarketingGeneral & AdministrationOther operating result

276.3(60.5)

(112.2)(47.0)

(5.5)

40.6(8.9)

(16.5)(6.9)(0.8)

289.7(69.1)

(113.9)(49.8)

0.6

38.8(9.2)

(15.2)(6.7)

0.1

EBITGoodwill Impairment

51.1(13.1)

7.5(1.9)

57.50.0

7.70.0

Operating Result 38.0 5.6 57.5 7.7

Non-operating result (1.1) 0.8 (2.2) 0.8

Income Taxes (10.2) (1.5) (10.5) (1.4)

Net Income from continuing operations 26.7 3.9 44.8 6.0

Net Income from discontinued operations 6.6 1.0 8.5 1.1

Net Income 33.3 4.9 53.3 7.1

EBITDA (continuing operations) 97.9 14.4 112.4 15.0

Net Earnings per Share (in €) 2.76 4.43


Dividend


Key figures Balance SheetKey figures Balance Sheet

in € million 31/12/06 31/12/07

Accounts receivable * 208.3(89 days)

202.4(79 days)

Inventory * 138.3 204.1

Trade payables * 69.4 87.3

Cash 81.4 73.3

Financial debt 93.8 126.7

* Only including continuing operations


Dividend


Outlook 2008Outlook 2008

Further sales and EBIT growth

Focus on operational and working capital efficiency

Extend competitive and product position in the selected growth markets

Further increase natural hedging by increased sourcing and R&D in Asia

Capital reduction of € 70 million expected within 6 months after closing of sale of BarcoVision, as previously announced


Dividend


Dividend

DividendDividend

Proposal of the Board of Directors to the annual shareholders’ meeting on April 24, 2008

Dividend will be increased to € 2.40

Pay out ratio of 54.2%

Gross dividend yield of close to 5%

In addition, the planned capital reduction will result in a payment of approximately 5.8 €/share, to be paid within 6 months after the closing of BarcoVision


13 february 2008 company confidential results 4q07 and fy07 martin de prycker, ceo 13 february 2008

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