Innovators in image processing

Continued growth but profitability under pressure: sales up 14% but current profit before taxes decreases by 20%

RESULTS SIX MONTHS ENDING JUNE 30, 2001

Orders & Sales: strong increase over 1S01

0

50

100

150

200

250

300

350

400

450

500

Orders Sales

1S002S001S01

399

353

443

404

Mio Euro

369398

+11% +14%

Decrease in profit: Reasons

• Barco Graphics: Delay in delivery of Mondrian and drop in deliveries of printsteamers

• Sales of projectors for standard applications weaker than anticipated

• Strategic investments affect operating results

What about Barco Graphics?

• Overall decline in Orders and Sales• Packaging Systems on track• Losses due to specific issues• Strategic focus for turnaround• Cost-saving measures

Barco Graphics: Overall decline in Orders & Sales

0

10

20

30

40

50

60

70

80

Orders Sales

1S001S01

-4% -13%

81 8078

70

Mio Euro

Barco Graphics: Packaging Systems on track

30

35

40

45

50

Orders Sales

1S001S01

+17% +4,5%

Mio Euro

Barco Graphics: EBIT

1.303

-6.511-7,000

-6,000

-5,000

-4,000

-3,000

-2,000

-1,000

0

1,000

2,000

EBI T

1S001S01

Mio Euro

Barco Graphics: Losses due to specific issues

• Orders for printstreamers for digital press manufacturers have come to a halt

• Delay in delivery of Mondrian, new computer-to-plate machine, due to need for improved optical calibration procedure

Barco Graphics: Looking into various forms of alliances with other partners

• Barco ETS brought into joint venture with Mania

• Spinning off Industrial Printing being investigated

Barco Graphics: Cost-saving measures

• Consolidating 4 European service call-centers into 1initial reduction of staff by 40 associates• 113 associates of ETS to joint venture Mania-Barco

GmbH

Barco Projection: Strategic thrust into high-end segments

• Control Rooms• Simulation• LED walls• Specific applications for projector

products• Digital Cinema

• New dedicated organization

structure

Barco Projection: Orders & Sales

145

195

168158

0

50

100

150

200

250

Orders Sales

1S001S01

+24% +15%

Mio Euro

Barco Projection: EBIT

27.918

22.623

0

5,000

10,000

15,000

20,000

25,000

30,000

EBI T

1S001S01- 19%

Mio Euro

BPS: Barco Control Rooms

Further growth in orders and sales

30

35

40

45

50

Orders Sales

1S001S01

+8% +17%

Mio Euro

BPS: Barco Simulation Products

0

5

10

15

20

25

30

35

40

45

Orders Sales

1S001S01

Further growth in orders & sales

+41% +35%

Mio Euro

BPS: LED Walls – Orders & sales

• Deliveries cannot follow orders

0

10

20

30

40

50

60

Orders Sales

1S001S01

+442% +220%

Mio Euro

LED Walls

#2 world-wide in sales

Main goals now: – Further increase market share

– Increase margins

Increased profitability on LED walls in sight

• New mechanical design• Reorganization of manufacturing process

more efficiency, higher yield• Manufacturing of mechanical parts in

Czech Republic• Higher volume of components

lower prices• Higher volume of Led Walls without

increase of structural costs

BPS: Barco Projection Products

0

10

20

30

40

50

60

70

Orders Sales

1S001S01

Mio Euro

- 40% -25%

New products for specific projector markets

• IntelliRoom• Networked Projector• ...

Barco Projection: New Dedicated Organization Structure

New structure in line with focused markets

More direct interaction with specific markets

Enable growth without increase of structural costs

BarcoView: Orders & Sales

98

58.3

81.585.6

0

20

40

60

80

100

120

Orders Sales

1S001S01

+20% +47%

Mio Euro

Expected EBIT 1S01: over 20%

BarcoView: EBIT

7.874

10.2

0

2,000

4,000

6,000

8,000

10,000

12,000

EBI T

1S001S01

Mio Euro

+29%

BarcoVision: Orders & Sales

49,751,6

53,857,4

0

10

20

30

40

50

60

70

Orders Sales

1S001S01-10% +8,5%

Mio Euro

BarcoVision: EBIT

6.017

8.038

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

EBI T

1S001S01

Mio Euro

+34%