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2 CMD2019 Key Note
2 CMD2019 Key Note
Jan De Witte
9 May 2019
Leadership team , here today...
Kurt
Verheggen
Legal
2
Agenda Key Note
1. Retrospect
2. Barco today
• Quality of revenues
and earnings
Focus to
• Performance culture
Perform and resilience
5
What we said we would do at last CMD
Levers to drive Barco’s “Focus to Perform”
Profit &
Growth Horizon 01 Horizon 02 Horizon 03
Extend & defend core Grow adjacencies & ventures Build future options, embryonic
business across chasm businesses
€
New Mkt / Exist Tech
Exist Mkt / Exist Tech Exist Mkt / New Solutions New Mkt / New Solutions
Time to
results
Add focus ++ + =
7
…and 6 strategic initiatives
Horizon 01
8
2017-2018: Choices made | Portfolio & efficiency decisions
1Q18
1Q17 Scaled back 1Q18 Relocation
Interactive 1H17 Portfolio Discontinued production
Patient Care decisions ENT Escape Norway
• Divestments, relocation
Making choices & streamline the organization • ‘Fit to lead’, resource deployment
• Value engineering
Focus on R&D and operational efficiency • Invest in ‘factory for the future’
Focus to • Relocation for scale and efficiency
perform
• Tier 2 channel- & marketing excellence
Commercial excellence • Expansion in China and APAC
• Cinionic solutions platform in Cinema
• ‘Glocal’ team build out in China and India
ICFC • Full local Healthcare capability in China
10
Results | 2016 - 2018
Sales Gross Profit EBITDA
(in millions of euro) (in millions of euro) (in millions of euro)
1.034
1,102
1,085
1,029
125
413
107
404
88
379
2016
2017
2018
2018
2017
2018
2016
2016
2017
2015
2015
2015
Gross Profit Margin% Ebitda Margin %
34% 37% 40% 8.0% 9.9% 12.1%
On essentially organic flat sales Gross Profit Margin increasing and a 4 ppt EBITDA margin
Barco showed resilience 6 ppt reflecting value expansion, fueled by opex
with... engineering and mix progress redeployments and gross profit
23%
2.3
63
2.1
19%
57
1.9
15%
40
2018
2018
2018
2016
2016
2016
2017
2017
2017
Cash position EOY Dividend yield
211 287 332 2.4% 2.4% 2.3%
Cash flow performance resulting ... and steady ROCE ... allowing consistent
in strong net cash position improvement growth of dividend
Creating a more resilient and healthy platform for future profitable growth
12
Yielding a portfolio of reinforcing growth opportunities
Enterprise
Scale and scope economies in
Corporate
operations and commercial channels
17
A ’gold standard’ reference in our markets
• Laserpioneer in cinema • ClickShare, first and leading • Global leader for 20 years in
• Leading with laser and 4K- wireless collaboration solution Diagnostic Imaging solutions
technology for events (UDX) • UniSee, unique and industry- • Innovator and leader enabling the
• Cutting edge image processing leading videowall solution, lauded digital integrated OR
and rendering solutions with 18 industry awards
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With strong and leading installed base
• 40 years of Barco projection; • 20 years history in control rooms • +700k medical displays in 90+
15 years of image processing with + 15k RPC videowall footprint countries
• +85k Barco cinema projectors • +500 UniSee projects (launched • +2,500 Nexxis OR solutions
• +2k of flagship UDX projectors EOY17) installed
(launched EOY17) • +590k ClickShare units and
continuing double digit growth
19
We are mission critical
to our customers
20
Global revenue €1Bn+, with staying power
Global footprint
…but some relative overweight in our ‘backyard’ Asia opportunity
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The challenge for innovative companies…
Lead market Cheaper
for a while copycats enter
Retreat in
Commercial and
niche, then
manufacturing
divest or exit
scaling
Revenues +
Profit/loss -
Challenge to capture ROI on innovation in a global & fast world … need more
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Capture lifecycle value opportunity Upsell in your
Niche strategy installed base value creation Develop installed base
services
Lead market value
while driving
cost and scale
Commercial & efficiencies
Manufacturing
Rapid scaling
Revenues +++
Profit/loss -
Success Innovate with GTM and Operational and Customer outcomes H1 – H2 – H3
drivers: customer- and channel mgt commercial focus and upselling. balance for longevity
market insight excellence excellence Services quality within a segment
Sustainable growth: win and defend share in a market, leverage installed base to
drive customer value with services and software upsell and cross-sell
24
3. The next chapter
4 value drivers
Next chapter | 4 value drivers
26
I. Maintain & strengthen performance focus
Focus to perform
Value engineering and operational efficiency to support margin
Lock ‘Focus to perform’ into process & leadership capabilities
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II. Capture market growth opportunities
28
II. Capture market growth opportunities
• Quality
• Cost of ownership
• Efficiency
• WOW! Experience
• Collaboration quality
• Actionable insight
Minimal Invasive Surgery Surgical Navigation Systems Robotic Assisted Surgery Interventional Suites
Customer value and Barco technology stack opportunity
Analytics solutions
Demetra
Harness the power of data for
sustainable outcomes
caresyntax
Workflow solutions
Enabling customer productivity weConnect Synergi
& simplicity
Image processing ClickShare
& rendering
Device connectivity Nexxis
OCS
Enabling data stream,
collaboration and BYOD
Cinecare QAweb
Hardware
Projectors Surgical & DI displays
Build / renew innovative
technology infrastructure Videowall solutions
How do we monetize around our Installed Base?
Technology
Analytics solutions
Harness the power of data for
sustainable outcomes
SaaS and Solutions propositions leveraging
the data in and around installed base
Workflow solutions (partnerships and in –house developed)
Enabling customer productivity
& simplicity
Device connectivity
Enabling data stream, Connectivity solutions and services revenue
collaboration and BYOD capture rate on top of installed base
Hardware
Build / renew innovative Market growth and share capture drive topline
technology infrastructure New-build and replacement markets.
Growing and extending ‘installed base’
Delivering solutions value throughout lifecycle
Sustain Deliver
Customer Outcomes
satisfaction & in mission critical
loyalty situations
Gain
Enable
Exploring
Commercial Sustain Deliver new
Excellence business
models
Gain
40
Next chapter – 4 value drivers
41
Creating value | Short & mid-term outlook
Levers to drive Barco’s sustainable profitable growth
Value
driver I. II. III.
2020: 14-15%
2022: 14-17%
2018:
12%
EBITDA
walk
Current OPEX Efficient growth Mix Price erosion SaaS & Entitlement SaaS &
EBITDA% reset (Mid+ single digit vs value engineering recurring EBITDA% recurring
growth)
‘Fit to lead’ revenues revenues
Sources Uses
◦ Cash allocation priorities built on
~€ 210m
Direct available cash Growth Capex strategic priorities
° Excl. cash in JV Cinionic (€ 84m)
Technology Strengthen and expand capabilities
° Excl impact accounting change (technology, production assets)
_(IFRS Leasing) (€ 38m) Strategic alliances/M&A
Build out installed base
Create “lifecycle value” around our
installed base
Share-
holder
~€ 330m
Consistent dividend
growth policy
Enable OPEX/SaaS business model
Cash flow from operations ‘19-’21
° Working capital @ 5% of sales Flexibility on cash focus on bolt-on and ‘value stack’
opportunities
43
On track to deliver | What we aim to represent, for our…
An asset ...
INVESTORS
with attractive return and purpose
44
Thank you !