Barco 3 months ended. 31 March 2010

Transcription

1 Barco 3 months ended 31 March 2010

2 Obligations with regard to periodical information following the transparency directive effective as of 1 January 2008 Declaration regarding the information given in this report 3 months ended 31 March 2010 The undersigned declare that: - the quarterly accounts, which are in line with the standards applicable for annual accounts, give a true and fair view of the capital, the financial situation and the results of the issuer and the consolidated companies; - the report 3 months ended 31 March 2010 gives a true and fair view of the development and the results of the company and of the position of the issuer and the consolidated companies, as well as a description of the main risks and uncertainties they are faced with. Eric Van Zele, CEO Dirk De Man, CFO 2

3 Key figures on the basis of continuing operations* [ in thousands of euros ] 1st quarter 1st quarter Net sales 176, ,735 Gross profit 59,320 38,853 EBIT 5,284-6,010 Profit before taxes 5,020-6,811 Net income from continuing operations 4,091-5,545 Net income from discontinued operations 0 4,695 Net income attributable to the equityholder 4, EBITDA 18,706 7,294 Earnings per share (in euros) Diluted earnings per share (in euros) * For 2009, excluding the results of Barco s Advanced Visualization business unit (Voxar) The accounting information taken up in this report has not been reviewed by the statutory auditor 3

4 Number of employees 31 March March 2009 Total (full-time equivalents) 3,243 3,263 Capital & ownership of the company s shares On 31 March 2010, the capital amounted to euro 54,169,171.60, represented by 12,669,955 shares. Ownership of the company s shares was as follows: VIM 9.87% (1,249,921 shares) Franklin Templeton Investment Corp. 4.95% (627,181 shares) Templeton Investment Counsel, LLC 3.14% (397,984 shares) Vanguard International Growth Fund 3.04% (385,000 shares) Barco 5.82% (737,963 shares) Public 73.18% (9,271,906 shares) Total 100% (12,669,955 shares) Fully diluted VIM 9.26% (1,249,921 shares) Franklin Templeton Investment Corp. 4.64% (627,181 shares) Templeton Investment Counsel, LLC 2.95% (397,984 shares) Vanguard International Growth Fund 2.85% (385,000 shares) Barco 5.47% (737,963 shares) Public 74.83% (10,102,238 shares) Total 100% (13,500,287 shares) This information is updated on on an ongoing basis. 4

5 Management discussion and analysis of the results First quarter 2010 financial highlights: Barco s order book at the end of March 2010 stood at million euro. At the end of March 2009, the order book was million euro. Order intake for the quarter increased 36.8% to million euro up from million euro a year earlier. Referring to the results of 1Q10, Mr Van Zele, President & CEO of Barco, said that he was very pleased with the results achieved. He added: These results illustrate that we have taken the right measures to deal decisively with the crisis of 2009 and that we have repositioned Barco for profitable growth in years to come. exceeded. He further said that Barco was gearing up to significantly increase capacities in digital cinema and that strong growth was to be expected for shipments in the second half of This will have a positive impact on the results of the company, he added. Sales of million euro were up 21.7% from million euro in 1Q09. Gross profits grew 52.7% to 59.3 million euro up from 38.9 million euro the previous year. Gross profit margin was 33.7%. In 1Q09 it was 26.8% and in 4Q09 it was 21.4%. EBITDA was 18.7 million euro compared to 7.3 million euro in 1Q09. EBIT was 5.3 million euro versus minus 6.0 million euro in 1Q09. EBIT margin was 3.0% compared to minus 4.2% in 1Q09. Net income for the quarter was 4.1 million euro compared to minus 0.9 million euro the year before. Net earnings per share were 0.34 euro compared to minus 0.07 euro in 1Q09. Free cash flow at the end of the quarter was minus 0.3 million euro compared to 36.6 million euro the year before. Mr Van Zele further stated that demand for Barco s products in the medical division grew strongly in 1Q10 and that orders booked in the digital cinema division exceeded management s expectations. As for the other divisions he said: All other divisions have implemented programs aimed at meeting their long term 10/10/20 targets (10% growth; 10% EBIT margin; 20% ROCE) and I am happy to report that all six divisions have again turned EBITDA positive. Mr Van Zele also referred to free cash flow and said: Free cash flow at the end of 1Q10 was slightly negative. However, this is due to a controlled increase in working capital to support growth of the company. Mr Van Zele concluded by saying: I am cautiously optimistic about Barco s performance for the remainder of He added that it is management s expectation that Barco s top line and EBIT in 2010 will be significantly better than in 2008, the last year prior to the crisis year Sales in 2008 were million euro and EBIT was 8.9 million euro. He said that the medical division would contribute well to this growth, both organically and through the acquisition of FIMI. The strongest growth in revenue however, is expected from the digital cinema division. Mr Van Zele stated that the previously communicated forecast of 150 million euro sales in 2010 will be New reporting structure As of 2010, Barco s activities are organized in two business groups or segments. Each business group is responsible for the management of its global business. The business group Media, Entertainment & Simulation (MES) comprises the former Media & Entertainment division, with events, out-of-home media and digital cinema, and the simulation business of the former Avionics & Simulation division. The events and outof-home media markets today are now respectively referred to as video lighting solutions (VLS) and digital signage. The other business group, Monitoring, Control & Medical (MCM), brings together the former Security & Monitoring division, with traffic, surveillance & monitoring, defense, medical and the avionics business of the former Avionics & Simulation division. The results of 1Q10 are reported in this press release in line with this new structure and prior-year financials have been restated. 5

6 Change in reporting frequency The board of directors has decided to change the frequency of the company s financial reporting as of 3Q10. This means that on 20 July 2010 Barco will give full results 3 months and 6 months ended 30 June As of 3Q10 however, Barco will give an Intermediary Report for the 1st and 3rd quarters instead of full results for these quarters. CONSOLIDATED RESULTS FOR THE QUARTER The order book at the end of the quarter was million euro or 4.4% higher than at the end of 1Q09 Income taxes Sales & order intake and 15.4% higher than in 4Q09. In 1Q10, taxes were 0.9 million euro compared to a Sales for the quarter were million euro, a positive tax impact of 1.3 million euro in 1Q % year-on-year increase. There was growth in Gross profit all divisions except for simulation and traffic, surveillance and monitoring (TSM), the latter remaining at Gross profit increased year-on-year by 52.7% to 59.3 Net income about the same level of sales as the year before. The million euro. Gross profit margin was 33.7% compared medical, digital cinema and avionics markets realized to 26.8% in the year ago quarter and 21.4% in Net income for the quarter increased to 4.1 million healthy growth, and so did the VLS division. 4Q09, with stock write-offs under control. euro from minus 0.9 million euro for 1Q09, which included 4.7 million euro proceeds from the Voxar divestiture. Net margin for the quarter was 2.3% Sales to Europe, Middle East, Africa and Latin America EBIT from minus 0.59% the year before. (EMEALA) represented 46.4% of consolidated sales, while 30.7% of sales were realized in North America EBITDA was 18.7 million euro compared to 7.3 million Net earnings per ordinary share (EPS) were 0.34 and 23.0% in Asia Pacific. Sales in all three regions euro the year before. EBIT was 5.3 million euro euro, up from minus 0.07 euro in 1Q09. Fully diluted grew in absolute figures: in the same order as above compared to minus 6.0 million in 1Q09. Good contributions net earnings per share increased to 0.32 euro from 23.9%, 9.0% and 38.2% year-on-year respectively. to EBIT were generated by the medical, minus 0.07 euro. digital cinema, VLS, defense and avionics divisions. Order intake in 1Q10 was million euro, an increase of 36.8% (of which over 29.5% organic) Research & development expenses increased yearon-year compared to the same quarter the year before. Com- from 17.2 million euro to 18.5 million euro, Evolution order book Total 1Q10 4Q09 3Q09 2Q09 1Q09 Order book pared to order intake in 1Q09 the digital cinema, medical and digital signage segments performed the strongest. In order intake, the APAC region took 28.2% of total orders, compared to 28.9% for the Americas and 42.9% for the EMEALA region. Growth in order intake for the APAC region was 66.6% compared to the year before. For North America it was 23.3% and for EMEALA 31.1%. but decreased as percentage of sales from 11.9% to 10.5% of sales. Sales & marketing expenses increased from 20.8 million euro to 24.7 million euro, 14.3% and 14.0% of sales respectively. General & administration expenses increased in absolute numbers from 10.3 million euro or 7.1% of sales to 10.9 million euro or 6.2% of sales. Other operating income was 0.01 million euro. 1Q09 had other operating income of 3.5 million euro. 6

7 DIVISIONAL RESULTS FOR 1Q10 Media, Entertainment & Simulation business group (MES) Order intake in MES increased by 60.4% from 78.8 million euro in 1Q09 to million euro in 1Q10. Main contributor to this growth in order intake is digital cinema. Order intake for MES increased both in the EMEALA and the APAC regions, while it was almost flat in North America. As to digital cinema, the order intake of 81.4 million euro is three times the order intake of the same period of the previous year, with strong demand from all three regions. The large Cinemark order (USA) was only partially recognized in the order intake figures of 1Q10, i.e. the part that is to be shipped in the next three months. Frame agreements are not included in the order intake either. Order intake in VLS declined compared to 1Q09 but grew significantly versus 4Q09. Demand is strong in the APAC region and Barco s new product offerings in the mid segment of the market, made available through the acquisition of assets from Element Labs, prove to be attractive in the market. In digital signage, orders are quite strong in the APAC and EMEALA regions. The simulation business had a weakened order intake compared to the same period the year before, due to shipments being postponed in all of its market segments. Recovery in order intake is expected in 2Q10. The order book at the end of March 2010 was million euro. Sales in MES increased by 9.0% to 76.2 million euro in 1Q10 from 69.9 million euro in 1Q09. Growth came from the EMEALA and APAC regions. In North America there was a decline in sales. In the digital cinema market sales increased by 50.2% versus 1Q09 but with 30.5 million euro they were lower than the 35.5 million euro realized in 4Q09. This is due to the switch from Series I to Series II digital cinema projectors and some delay in the component supply chain. These issues are expected to be solved by 2H10. In VLS, sales were better than order intake, as they took benefit from short cycle business. Digital signage sales were lower than in 1Q09 due to customer deployment schedules. Sales were also lower in simulation in 1Q09, due to the slow order intake in At 23.2 million euro gross profit for the MES business group was up 123.1% compared to the same period the year before. Gross profit margin was 30.5% compared to 14.9% in 1Q09. MES EBIT for 1Q10 was at 1.6 million euro or a 2.2% EBIT margin on sales, compared to minus 8.8 million euro in 1Q09, driven by the strong top line growth, restored gross margins, and lower costs versus last year. EBIT margin in digital cinema was high single digit. Compared to last year the VLS division reported good progress and restored profitability. Monitoring, Control & Medical business group (MCM) Order intake in MCM increased by 13.1% from 79.9 million euro in 1Q09 to 90.3 million euro in 1Q10. This growth came from the medical business, the order intake of which increased by 63.5% (close to 17% excluding FIMI). Order intake was stable in the traffic, surveillance and monitoring business. There was a decline in order intake in defense and avionics but both these divisions are shipping from a strong backlog and they have a solid order book going forward. Order intake for MCM was almost flat in the EMEALA and APAC regions, while it increased strongly in North America. The order book at the end of March 2010 was million euro. Sales in MCM increased by 33.0%, supported by all three regions. The medical, defense and avionics businesses contributed to this growth. Sales were flat in the traffic, surveillance & monitoring (TSM) market. Sales growth was particularly strong in the medical market at 58.8% and 19% excluding FIMI, carried by improving performance in the PACS, mammography and modality markets. The FIMI integration is well on track and there is a clear benefit from sales synergies with the medical division. In the TSM market, the introduction of the new LED-powered display cubes looks very promising. At 36.1 million euro, gross profit for the MCM business group increased by 33.9% compared to 1Q09. Gross profit margin was 35.8% compared to 35.5% in the same period the year before. MCM EBIT for the quarter was at 3.6 million euro, a 3.6% EBIT margin, compared to 2.8 million euro in 1Q09. The EBIT margin of the medical division was double digit. The FIMI acquisition is not yet contributing to EBIT due to acquisition accounting entries. Both the defense and avionics divisions have positive EBIT. TSM had a negative result, which is expected to be turned around in the next quarters of the year. Balance sheet At the end of March 2010 Barco had a net cash position of 21.3 million euro, compared to a net cash position of 23.5 million euro on 31 December 2009 and a net cash position of 24.0 million euro on 31 March Barco did not buy back any of its own shares in the first three months of On 31 March 2010, trade receivables were at million euro, compared to million euro at the end of December End March DSO was 76 days, down from 80 days the year before. DSO was 67 days end Inventory was at million euro, an increase of 22.2% compared to million euro end December Inventory turns were 2.3 at the end of 1Q10, compared to 2.4 the year before. Trade payables were 85.6 million euro, up 17.7 million euro 7

8 from end December Capex for 1Q10, excluding capitalized development, was 2.7 million euro, compared to 1.2 million euro the year before. OUTLOOK FOR 2010 The following statements are forward-looking and actual results may differ materially. Management expects Barco s top line and EBIT in 2010 to be significantly better than in 2008, the last year prior to the crisis year Sales in 2008 were million euro and EBIT was 8.9 million euro. The medical division is expected to contribute well to this growth, both organically and through the acquisition of FIMI. The strongest growth in revenue however, is expected from the digital cinema division. The previously communicated forecast of 150 million euro sales in 2010 will be exceeded. Barco is gearing up to significantly increase capacities in digital cinema and strong growth is to be expected for shipments in the second half of This will have a positive impact on the results of the company. 8

9 Income statement on the basis of continuing operations* [ in thousands of euros ] 1st quarter 1st quarter Net sales 176, ,735 Cost of goods sold -116, ,883 Gross profit 59,320 38,853 Research and development expenses -18,464-17,236 Sales and marketing -24,708-20,812 General and administration expenses -10,878-10,268 Other operating income (expense) - net 14 3,454 EBIT 5,284-6,010 Interest income 480 1,146 Interest expense ,962 Other non-operating income (expense) - net 0 15 Income before taxes 5,020-6,811 Income taxes ,267 Net income from continuing operations 4,091-5,545 Net income from discontinued operations 0 4,695 Net income 4, Minority interest 0 5 Net income attributable to the equityholder of the parent 4, Earnings per share (in euro) Diluted earnings per share (in euro) * For 2009, excluding the results of Barco s Advanced Visualization business unit (Voxar) 9

10 Interim consolidated statement of comprehensive income [ in thousands of euros ] 1st quarter 1st quarter Net income 4, Exchange differences on translation of foreign operations 6, Net (loss/)gain on cash flow hedges Income tax Other comprehensive income (loss) for the period, net of tax 5, Total comprehensive income for the period, net of tax 9,

11 Balance sheet [ in thousands of euros ] 31 March Dec 2009 Assets Goodwill 1 46,986 32,265 Capitalized development cost 55,110 54,434 Other intangible assets 1 11,261 5,204 Land and buildings 31,078 30,988 Other tangible assets 24,203 23,193 Investments ,327 Deferred tax assets 31,029 34,042 Other non-current assets 10,215 10,025 Non-current assets 210, ,479 Inventory 178, ,265 Trade debtors 148, ,805 Other amounts receivable 37,666 26,931 Deposits and cash at bank and in hand 50,387 45,901 Prepaid expenses and accrued income 6,669 9,095 Current assets 421, ,997 Total assets 631, ,475 EQUITY AND LIABILITIES Equity attributable to equityholders of the parent 354, ,264 Minority interest 1 1 Equity 354, ,265 Long-term debts 12,350 11,906 Deferred tax liabilities 10,070 10,727 Other long-term liabilities 15,446 5,446 Non-current liabilities 37,867 28,080 Current portion of long-term debts 1,752 2,393 Short-term debts 14,988 8,116 Trade payables 85,562 67,852 Advances received on contracts in progress 28,053 27,493 Tax payables 16,943 12,203 Employee benefits 34,135 28,451 Other current liabilities 3,841 3,997 Accrued charges and deferred income 12,010 10,802 Provisions for liabilities and charges 42,308 38,824 Current liabilities 239, ,131 Total equity and liabilities 631, ,475 Note 1 Increase in goodwill and intangible assets compared to 31 December 2009 relates to the acquisition of FIMI (see Comments - acquisitions). As the effective control was transferred on 1 January 2010, the FIMI figures are taken up in the figures of the Barco Group from 1 January 2010 onwards. The 19 million euro paid per 31 December 2009 was shown as investments in the balance sheet per 31 December 2009 and have been replaced by the underlying net assets of FIMI in the balance sheet per 31 March

12 Comments Significant IFRS accounting principles IAS 34 was applied to the quarterly financial report. The same accounting policies and methods of computation are followed in the interim financial statements as were followed in the annual financial statements of 2009, except for certain reclassifications (see Reclassifications) and the adoption of new Standards and Interpretations effective as of 1 January 2010, noted below: IFRS 1 First-time adoption of IFRS (Revised), effective 1 January 2010 IFRS 1 First-time adoption of IFRS Additional Exemptions for First-time Adopters 1, effective 1 January 2010 IFRS 2 Share-based Payment Group Cash-settled Share-based Payment Arrangements 1, effective 1 January 2010 IFRS 3 Business Combinations (Revised) and IAS 27 Consolidated and Separate Financial Statements (Amended), effective 1 July 2009 IFRS 9 Financial Instruments 1, effective 1 January 2013 IAS 24 Related Party Disclosures (Revised) 1, effective 1 January 2011 IAS 32 Financial Instruments: Presentation Classification of Rights Issues, effective 1 February 2010 IAS 39 Financial Instruments: Recognition and Measurement Eligible Hedged Items, effective 1 July 2009 IFRIC 12 Service Concession Arrangements, effective 29 March 2009 Amendment to IFRIC 14/IAS 19 Prepayments of a Minimum Funding Requirements 1, effective 1 January 2011 IFRIC 15 Agreements for the Construction of Real Estate, effective 1 January 2010 IFRIC 16 Hedges of a Net Investment in a Foreign Operation, effective 1 July 2009 IFRIC 17 Distributions on Non-cash Assets to Owners, effective 1 November 2009 IFRIC 18 Transfers of Assets from Customers, effective for transactions after 1 July 2009 IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments 1, effective 1 July 2010 Improvements to IFRSs 1 (April 2009) 1 Not yet endorsed by EU Reclassifications Certain items previously reported under specific financial statement captions (income statement) have been reclassified to conform to the current year presentation. Prior-period amounts have been revised to reflect changes in the warranty provision as part of the Cost of goods sold instead of as part of Other operating income (expense) and depot repair as part of the Cost of goods sold instead of as part of Sales and marketing expenses. The table below outlines the impact of these reclassifications. [ in thousands of euros ] 1st quarter Increase in Cost of goods sold -130 Decrease in Gross profit -130 Decrease in Sales and Marketing expenses 862 Decrease in Other operating income -732 Impact on EBIT 0 There is no impact on net income nor retained earnings as of March 31, 2009

13 Acquisitions On 31 December 2009, Barco closed the acquisition of 100% of the shares of the Italy-based display company FIMI, which was a fully owned subsidiary of Royal Philips Electronics prior to that. Through the acquisition Barco reaffirms its growth strategy in the medical market by further expanding its footprint and tapping into new market segments, such as mobile point of care devices. The total transaction cost paid at closing amounts to 19 million euro. The contract further provides for an additional earn-out of 10 million euro over the next five years. The earn-out equals 35% of the cumulative net purchase value of the Philips Group with FIMI over the next five years and is limited to 2.5 million euro per year. The acquisition has been accounted for using the purchase method of accounting and conform IFRS 3 Business Combinations (Revised). The condensed (unaudited) balance sheet of FIMI determined in accordance with IFRS at acquisition date: Unaudited [ in thousands of euros ] 01/01/2010 Non-current assets 10,561 Intangible assets (customer list) 5,000 Other non-current assets 5,561 Current assets 17,239 Inventory 9,998 Trade & other receivables 7,240 Non-current liabilities -4,916 Current liabilities -8,635 Cash 81 Net assets 14,329 In the first quarter of 2010 Fimi has contributed 11.4 million euro to the total turnover of the Group, resulting in a break-even EBIT. The EBIT of FIMI in the first quarter was negatively impacted by IFRS restatements recorded in the opening balance sheet. The IFRS restatements related to fair value adjustments on inventory and the valuation of the customer list, which is amortized over 5 years. Goodwill 14,721 Total acquisition cost 29,050 The goodwill recognized at acquisition is related to Per 17 March 2010, Barco has acquired some of the the complementary technological expertise and talent of the FIMI workforce and the synergies expected of Element Labs, an LED video systems expert based assets, intellectual property (IP) rights and know-how to be achieved from integrating FIMI into the Medical division. The additional earn-out of 10 million immaterial in respect of any additional disclosure in Santa Clara, California. This asset deal was deemed euro is fully considered as additional goodwill at the requirements. moment of acquisition as there is a high probability that this amount will be reached over the coming 5 years as it is fully in line with the turnover FIMI has realized over the past years with the Philips Group. 13

14 Changes in equity attributable to equityholders of the parent [ in thousands of euros ] 1st quarter 1st quarter Equity attributable to equityholders of the parent 31 December 344, ,176 Net income attributable to equityholders of the parent 4, Other comprehensive income (loss) for the period, net of tax 5, Share-based payment Equity attributable to equityholders of the parent 31 March 354, ,083 14

15 Cash flow statement on the basis of continuing operations* [ in thousands of euros ] 1st quarter st quarter 2009 Cash flow from operating activities EBIT 5,284-6,010 Restructuring provision (personnel) -1,092-2,357 Amortization capitalized development cost 10,087 9,962 Depreciation of tangible and intangible fixed assets 3,334 3,341 Gains and losses on tangible fixed assets -1-3 Share options recognized as cost Discontinued operations: cash flow from operating activities Gross operating cash flow 17,685 5,443 Changes in trade receivables -5,550 40,003 Changes in inventory -19,745 8,225 Changes in trade payables 14,603-6,469 Other changes in net working capital 4, Discontinued operations: change in net working capital 0-3,494 Change in net working capital -6,517 39,234 Net operating cash flow 11,168 44,677 Interest income/expense Income taxes ,755 Discontinued operations: income taxes Cash flow from operating activities 10,137 42,466 Cash flow from investing activities Expenditure on product development -7,728-7,261 Purchases of tangible and intangible fixed assets -2,689-1,229 Proceeds on disposals of tangible and intangible fixed assets Acquisition of Group companies, net of acquired cash 1-1,999 0 Other investing activities 1 0 Discontinued operations: cash flow from investing activities 0 22,774 Cash flow from investing activities -12,404 14,312 Cash flow from financing activities Proceeds from (+), payments of (-) long-term liabilities Proceeds from (+), payments of (-) short-term liabilities 6,230-36,633 Cash flow from financing activities 6,674-36,327 Net decrease in cash and cash equivalents 4,407 20,452 Cash and cash equivalents at beginning of period 45,900 72,119 Cash and cash equivalents at end of period 50,307 92,569 * For 2009, continuing operations excluding the cash flows of Barco s Advanced Visualization business unit (Voxar) Note 1 Acquisition of group companies, net of acquired cash, relates to the acquisition of Element Labs (see Comments acquisitions). The 19 million euro acquisition price of FIMI was already paid per 31 December

16 Free cash flow * [ in millions of euros ] 1st quarter 1st quarter EBIT 5,284-5,992 Amortization capitalized development cost 10,087 9,962 Restructuring ,092-2,938 Depreciation of tangible and intangible fixed assets 3,334 3,341 Gains and losses on tangible fixed assets -1-3 Gross operating cash flow 17,613 4,371 Changes in trade receivables - (increase/)decrease -5,550 40,003 Changes in inventory - (increase/)decrease -19,745 8,225 Changes in trade payables - increase(/decrease) 14,603-6,469 Other changes in net working capital 4,176 1,549 Change in net working capital -6,517 43,308 Net operating cash flow 11,096 47,679 Interest income/expense Income taxes ,755 Cash flow from operating activities 10,065 45,107 Expenditure on product development -7,728-7,261 Purchases of tangible & intangible fixed assets -2,689-1,229 Proceeds on disposals of tangible & intangible fixed assets Cash flow from investing activities -10,406-8,462 FREE CASH FLOW , * For 2009, excluding the free cash flow of Barco s Advanced Visualization business unit (Voxar)

17 Segment information As of 2010, Barco s activities are organized in two business groups, with each business group, Media, Entertainment & Simulation and Monitoring, Control & Medical responsible for the management of its business worldwide. The Media, Entertainment & Simulation business group (MES) brings together the former Media & Entertainment division and the Simulation part of the former Avionics & Simulation division. The former Security and Monitoring division, Medical Imaging division and the Avionics part of the Avionics & Simulation division have been integrated in the Monitoring, Control & Medical business group (MCM). As a consequence of the aforementioned, prior-year financials have been restated. Prior period amounts have also been restated to reflect changes in the warranty provision as part of the Cost of goods sold instead of as part of Other operating income (expense) and depot repair as part of the Cost of goods sold instead of as part of Sales and marketing (see Significant accounting policies, Reclassifications). The Media, Entertainment & Simulation (MES) business group covers the markets for digital cinema, events and out of home media, offering a range of projection, image processing, lighting and LED solutions, as well as specialized projection solutions for simulation. The Monitoring, Control & Medical (MCM) business group focuses on visualization solutions for traffic & surveillance, utilities & process control, broadcast & telecom and defense & security. It covers a wide range of display solutions for medical imaging and offers display solutions for use aboard aircraft. Management monitors the operating results of its business groups separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss. Group financing (including finance costs and finance revenue) and income taxes are managed on a group basis and are not allocated to operating segments. Transfer prices between operating segments are on an arm s length basis in a manner similar to transactions with third parties. Results per division on the basis of continuing operations* The following table presents revenue and profit information regarding the Group s operating segments for the first quarter ended 31 March 2010 and 2009, respectively [ in thousands of euros ] 3 months 3 months Sales EBIT EBITDA Sales EBIT EBITDA Media, Entertainment & Simulation 76,228 1,641 6,844 69,952-8,778-2,994 Monitoring, Control & Medical 100,717 3,643 11,861 75,758 2,768 10,288 Eliminations Total group 176,073 5,284 18, ,735-6,010 7,294 * For 2009, excluding the results of Barco s Advanced Visualization business unit (Voxar) 17

18 Segment assets The [ in following thousands table of euros presents ] segment assets of the Group s operating segments as at 31 March 2010 and 31 March 2009: [ in thousands of euros ] 31 March December 2009 Assets Segment assets Media, Entertainment & Simulation 233, ,110 Segment assets Monitoring, Control & Medical 276, ,617 Total segment assets 510, ,726 Investments ,327 Deferred tax assets 31,029 34,042 Deposits and cash at bank and in hand 50,387 45,900 Other non-allocated assets 39,873 37,480 Total assets 631, ,475 Liabilities Segment liabilities Media, Entertainment & Simulation 98,549 87,732 Segment liabilities Monitoring, Control & Medical 119,293 84,604 Total segment liabilities 217, ,335 Equity attributable to equityholders of the parent 354, ,264 Minority interest 1 1 Long-term debts 12,350 11,906 Deferred tax liabilities 10,070 10,727 Current portion of long-term debts 1,752 2,393 Short-term debts 14,988 8,116 Other non-allocated liabilities 20,455 22,732 Total equity and liabilities 631, ,475 18

19 Geographical breakdown of sales on the basis of continuing operations* Management directs sales of the Group based on the regions to which the goods are shipped or the services are rendered and has three reportable regions Europe, Middle East, Africa and Latin America (EMEALA), North America (NA) and Asia-Pacific (APAC). The pie charts below present the Group s sales over the regions for the first quarter ended 31 March 2010 and 31 March 2009, respectively. 1st quarter st quarter 2010 NORTH america 34.2% EMEALA 45.5% NORTH america 30.7% EMEALA 46.4% asia-pacific 20.2% asia-pacific 23.0% Group 1Q 09 1Q 09 EMEALA % North America % APAC % Group 1Q 10 1Q EMEALA % % North America % % APAC % % * For 2009, excluding the results of Barco s Advanced Visualization business unit (Voxar) Events after the statement of financial position date There are no major events subsequent to the balance sheet date which have a major impact on the further evolution of the company. 19

20 Registered office Pres. Kennedypark 35 BE-8500 Kortrijk Tel.: +32 (0) Fax: +32 (0) Group management Pres. Kennedypark 35 BE-8500 Kortrijk Tel.: +32 (0) Fax: +32 (0) Stock exchange NYSE Euronext Brussels Barco share BAR ISIN BE Barco VVPR-strip BARS ISIN BE Reuters BARBt.BR Bloomberg BAR BB Financial information More information can be obtained from the Investor Relations Department of the group management: Mr JP Tanghe, Senior Vice President Barco President Corporate Communication, Investor Relations and Corporate Marketing Tel.: +32 (0) Fax: +32 (0) Report This report 3 months ended 31 March 2010 is also available in Dutch and can be consulted on Cover photograph: Marco Borsato s Wit licht (White Light) concert, creative LED displays by Barco