25 July 2007, page 1 Company confidential Results 2Q07 Martin De Prycker, CEO 25 July 2007.
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Transcript of 25 July 2007, page 1 Company confidential Results 2Q07 Martin De Prycker, CEO 25 July 2007.
25 July 2007, page 1Company confidential
Results 2Q07Results 2Q07
Martin De Prycker, CEO
25 July 2007
25 July 2007, page 2Company confidential
Operational results 2Q07: reported *Operational results 2Q07: reported *
in € million 2Q 2006 2Q 2007** Growth 2Q07/2Q06
Orders 192.0 199.1 3.7%
Sales 186.0 208.2 12.0%
EBIT 16.1 17.8 10.6%
EBIT % 8.7% 8.6%
Book-to-bill 1.03 0.96
* Including BarcoVision and Manufacturing Services ** Not including the parts of Manufacturing Services, divested in 2006
25 July 2007, page 3Company confidential
Operational results 2Q07: continuing operations *Operational results 2Q07: continuing operations *
in € million 2Q 2006 2Q 2007 Growth2Q07/2Q06
Orders 170.6 183.0 7.3%
Sales 166.3 192.3 ** 15.6%
EBIT 13.0 15.7 21.1%
EBIT % 7.8% 8.2%
Book-to-bill 1.03 0.95
* Excluding BarcoVision and Manufacturing Services ** 19% at comparable €/$ rate
25 July 2007, page 4Company confidential
Operational results 1H07: continuing operations *Operational results 1H07: continuing operations *
in € million 1H 2006 1H 2007 Growth 1H07/1H06
Orders 350.5 404.4 15.4%
Sales 322.2 348.7 8.2%
EBIT 21.0 22.2 5.8%
EBIT % 6.5% 6.4%
Book-to-bill 1.09 1.16
* Excluding BarcoVision and Manufacturing Services
25 July 2007, page 5Company confidential
Results per quarter: continuing operationsResults per quarter: continuing operations
0
50
100
150
200
250
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
3Q06
4Q06
1Q07
2Q07
OrdersSalesEBI T
in € million
25 July 2007, page 6Company confidential
Overall comments on continuing operations for 2Q07 Overall comments on continuing operations for 2Q07
Strong order growth of more than 7%, thanks to– High order intake in Media & Entertainment and Security & Monitoring
Large sales growth of 19% vs 2Q06 on comparable basis (including currency evolution)
– Growth in Media & Entertainment, Medical Imaging and Other Markets– Decline in Security & Monitoring
Book-to-bill good at 0.95
EBIT at € 15.7 million, 21.1% better than 2Q06, thanks to increased gross profit, despite $ decline
25 July 2007, page 7Company confidential
Evolution of results per divisionEvolution of results per division(on continuing operations)(on continuing operations)
in € million 2Q06 2Q07 Sales growth 2Q07/ 2Q06
Sales % EBIT Sales % EBIT
Media & Entertainment 56.1 2.9 81.3 10.7 44.9%
Security & Monitoring 52.9 6.1 50.4 0.1 (4.7%)
Medical Imaging 30.5 16.7 32.7 13.4 7.2%
Other Markets 33.5 8.9 35.4 7.3 5.7%
Eliminations -6.7 -7.6
Total 166.3 7.8 192.3 8.2 15.6% *
* 19% at comparable €/$ rate
25 July 2007, page 8Company confidential
Media & Entertainment Division Media & Entertainment Division (1)(1)
-100
102030405060708090
100
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
3Q06
4Q06
1Q07
2Q07
OrdersSalesEBI T
in € million
25 July 2007, page 9Company confidential
Media & Entertainment Division Media & Entertainment Division (2)(2)
Orders / Sales– Book-to-bill ratio lower at 0.81, with 10% order growth and
45% sales growth 2Q07 vs 2Q06– Events had double digit order and sales growth, thanks to
successful new and existing products– Media had flat orders growth and strong increasing sales with
positive EBIT– DC lower orders, but indications remain positive for market
growth in 2H07 and 2008
Margins– Gross profit increased 34.9% vs the year before– Profit margin at 10.7% vs 2.9% in 2Q06, thanks to strong
sales increase
25 July 2007, page 10Company confidential
Security & Monitoring DivisionSecurity & Monitoring Division (1)(1)
-10
0
10
20
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40
50
60
70
80
1Q05
2Q05
3Q05
4Q05
1Q06
2Q06
3Q06
4Q06
1Q07
2Q07
OrdersSalesEBI T
in € million
25 July 2007, page 11Company confidential
Security & Monitoring Division Security & Monitoring Division (2)(2)
Orders / Sales– Book-to-bill high at 1.23– Double digit growth in orders, mainly in the defense and
control room markets– Sales in defense showing first growth, although still
moderate, whereas in control rooms a few big projects shifted to 2H07, resulting in a decline in sales
Margins– Gross profit decreased 9.6% vs 2Q06, due to lower sales
volume and negatively influenced by $ erosion– Profit margin at 0.1% vs 6.1% in 2Q06, due to lower gross
profit
25 July 2007, page 12Company confidential
Medical Imaging Division Medical Imaging Division (1)(1)
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1Q05
2Q05
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OrdersSalesEBI T
in € million
25 July 2007, page 13Company confidential
Medical Imaging Division Medical Imaging Division (2)(2)
Orders / Sales– Book-to-bill ratio at 0.89– Weaker orders and sales in PACS vs 2Q06, particularly due
to lower US sales– Modality orders flat, but sales higher
Margins– Gross profit increased 13.4% – Good profit margin at 13.4%, lower than 16.7% in 2Q06, as
investments in new product development and sales have increased
25 July 2007, page 14Company confidential
Other MarketsOther Markets (1)(1)
-5
0
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1Q05
2Q05
3Q05
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1Q06
2Q06
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1Q07
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OrdersSalesEBI T
in € million
25 July 2007, page 15Company confidential
Other Markets Other Markets (2)(2)
Orders / Sales– Higher orders and sales in simulation market and
lower orders and sales in presentation market– Higher orders and lower sales in Avionics than 2Q06
Margins– Gross profit margin remained stable– EBIT margin at 7.3% vs 8.9% in 2Q06, thanks to a
strong improvement in Presentation & Simulation, not compensating the decline of Avionics (caused by large investments in new product development)
25 July 2007, page 16Company confidential
Status of discontinued operationsStatus of discontinued operations
The divestiture of BarcoVision was signed with Itema, expected closing end 2007.Sales price of € 72 million; full details on effect on profitability will be provided at closing, but expected net gain between € 43 and 45 million
Discussions with potential partner for the mechanical part of Manufacturing Services continue, to be concluded in 2H07
25 July 2007, page 17Company confidential
2Q07
32,9%
47,2%
19,9%
Geographical breakdown of salesGeographical breakdown of sales (on continuing operations) (on continuing operations)
14,2%
51,2%
34,6%
2Q06
EMEAAMERICAS
APAC
25 July 2007, page 18Company confidential
Key figures Income Statement: continuing operationsKey figures Income Statement: continuing operations
in € million 2Q06 % 2Q07 %
SalesCost of goods sold
166.3-96.7
100.0-58.1
192.3-117.3
100.0-61.0
Gross ProfitResearch & DevelopmentSales & MarketingGeneral & AdministrationOther operating result
69.6-15.6-28.5-11.5
-1.0
41.9-9.4
-17.1-6.9-0.6
74.9-16.5-29.3-12.6
-0.8
39.0-8.6
-15.3-6.5-0.4
EBITGoodwill impairment
13.0-1.6
7.8-0.9
15.70.0
8.20.0
Operating Result 11.4 6.8 15.7 8.2
Non-operating result -0.2 -0.1 -0.2 -0.1
Income Taxes -2.5 -1.5 -2.9 -1.5
Net Income 11.3 6.8 14.3 7.4
Current Cash Flow 22.1 13.3 25.7 13.4
EBITDA 24.8 14.9 28.8 15.0
Current Earnings per Share (in €) 0.85 1.05
Net Earnings per Share (in €) 0.93 1.19
25 July 2007, page 19Company confidential
Key figures Balance SheetKey figures Balance Sheet
in € million 30/06/06 31/12/06 30/06/07*
Accounts Receivable 175.2 218.6 194.2
Inventory 167.0 146.7 173.4
Trade Payables 76.7 69.4 84.9
Cash 83.4 81.4 89.1
Financial Debt 81.3 93.8 113.1
* Excluding discontinued operations
25 July 2007, page 20Company confidential
Expectations 2007Expectations 2007
High orders in 1H07 increase confidence in reaching sales growth targets for 2007 between 6% and 9%, supported by new products being introduced in 2007
Profit increase for 2007 confirmed vs 2006 Divestitures status
– Mechanical part of Manufacturing Services targeted for 2H07– Vision signed, closing expected end 2007
The proceeds from the sale of BarcoVision– Potential acquisitions will be assessed– Alternative solutions to create shareholder value will be
evaluated and communicated before end 2007