Key Note – Shaping our future

Building a platform for sustainable profitable growth

Jan De Witte
9 May 2019
 Leadership team , here today...

Chairman/CEO DIVISION Leaders MARKET Leaders FUNCTION Leaders

CFO/CHRO

Charles Nicolas Stijn Gerwin

Beauduin Vanden Abeele Henderickx Damberg
Chairman Entertainment EMEA CTO

Jan Wim Ney Rob

De Witte Buyens Corsino Jonckheere
CEO Cinionic Americas Operations

Ann George Olivier Johan

Desender Stromeyer Croly Heyman
CFO Enterprise APAC PMO “Fit to Lead”

An Filip Chang Xavier

Dewaele Pintelon Tet Jong Bourgeois
CHRO Healthcare Greater China IT

Kurt
Verheggen
Legal
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Agenda Key Note
1. Retrospect

2. Barco today

3. The next chapter

• 4 value drivers
- «Performance»
- «Growth»
- «Lifecycle value opportunity»
- «Innovation»
• Short & medium term outlook
1. Retrospect
 New course set for Barco in 2016

Moving performance Driving execution To enhance ...

targets up culture

• Quality of revenues
and earnings
Focus to
• Performance culture
Perform and resilience

• Stronger portfolio &

capability platform

5
 What we said we would do at last CMD
Levers to drive Barco’s “Focus to Perform”

Make choices R&D and

Focus on Commercial and
Current ~5 Entitlement
EBITDA%
& timely operational Services EBITDA%
decisions on
growth bets
efficiency: Value excellence
engineering, NPI- and
process, sourcing & ICFC drive to capture
manufacturing full potential

A multi-year journey … building capabilities … objective: sustained profitable growth

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 With a balanced focus across 3 horizons

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 ++ + =

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 …and 6 strategic initiatives
Horizon 01

01 Value Engineering 02 Commercial excellence

Horizon 02

03 ICFC - China / India 04 Services 2.0

Horizon 03

Secure Foundational Technology/IP

05 Factory for the future 06 & Ventures operating mechanisms

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 2017-2018: Choices made | Portfolio & efficiency decisions

1Q18
1Q17 Scaled back 1Q18 Relocation
Interactive 1H17 Portfolio Discontinued production
Patient Care decisions ENT Escape Norway

1Q17 Divestment 4Q17 Divestment 1Q18 Divestment 4Q18

High End Systems Silex X2O “Fit to Lead”
restructuring program

Focus portfolio Divest/scale-back & redeployment

on core markets and loss-making & of resources for efficiency
profitable growth non-strategic ventures and effectiveness

Focused on quality of growth …

while stepping up performance capability and strengthening portfolio in core markets
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 We executed according this plan
Our ‘16-’18 ambition Delivering on our plan
Continue to invest in R&D • +11.7% of sales in R&D

• UniSee, Nexxis 2.0, new projector platforms, extending

Deliver NPI’s with impact ClickShare range
Leading by • New business models (Demetra & weConnect)
innovation
• Platforming focus … 1 Barco software organization
Enhancing innovation processes
• Lean start-up and agile practices
& organization • New CTO with technology and start-up depth

• Divestments, relocation
Making choices & streamline the organization • ‘Fit to lead’, resource deployment

• Control Rooms turnaround to growth in 2H18

Turnaround underperforming activities • V&H back on growth and performance track over 2017

• 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

Bringing EBITDA in range of 12-14% by ‘20 • EBITDA 2018: 12.1%

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 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

Pro forma comparison

11 To present comparable data 2018 versus 2017, 2017 figures for sales are presented on a pro forma basis assuming the deconsolidation of the BarcoCFG joint venture had taken place on July 1, 2017. Other metrics such as Gross
Profit and EBITDA and related margins are not restated as the impact of the deconsolidation is not material.
 Results | 2016 - 2018
Free Cash Flow ROCE Dividend
(in millions of euro) (%) (in euro)

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
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 Yielding a portfolio of reinforcing growth opportunities

Barco BU growth dynamic ‘16  ‘19FC Leveraging OneBarco synergies

'16 '17 '18 '19

 Coherent set of value propositions
Entertainment
Cinema International
within vertical markets

Cinema China  Leverage of technology platforms

across business units
V&H

Enterprise
 Scale and scope economies in
Corporate
operations and commercial channels

Control Rooms  In Country For Country (ICFC)

capability in growth markets
Healthcare
Diagnostic Imaging / Modality
 Cross-fertilization in technology and
Surgical
business model innovation

Business Units competing in healthy markets with capabilities to win

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2. Barco today
 Barco today | Global advanced visualization technology partner
... with legacy & pride

+80 years Focused Strategy Enabling bright outcomes

around the world
of history in technology … building capabilities to become
a successful HW, SW & Service company Global and local capabilities

+3,600 employees Solid financial results Technology & Market

Led by an experienced and diverse
Leadership
Profitable growth track ... sound
leadership team Balance sheet Innovation that matters
400 patents
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 Innovator in advanced visualization technologies

Image Processing Connectivity &

& Rendering Collaboration

Display Projection Digital laser &

technology technology programmable light
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 In healthy markets with a clear purpose

Entertainment (43%) Enterprise (33%) Healthcare (24%)

“Compelling experiences” “Stay in control” “Diagnose better & save lives”
“Better meetings, better business”

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 A ’gold standard’ reference in our markets

Entertainment Enterprise Healthcare

• Laserpioneer in cinema
• Leading with laser and 4K-
technology for events (UDX)
• Cutting edge image processing
and rendering solutions
• ClickShare, first and leading
wireless collaboration solution
• UniSee, unique and industry-
leading videowall solution, lauded
with 18 industry awards
• Global leader for 20 years in
Diagnostic Imaging solutions
• Innovator and leader enabling the
digital integrated OR

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 With strong and leading installed base

Entertainment Enterprise Healthcare

• 40 years of Barco projection;
15 years of image processing
• +85k Barco cinema projectors
• +2k of flagship UDX projectors
(launched EOY17)
• 20 years history in control rooms • +700k medical displays in 90+
with + 15k RPC videowall footprint countries
• +500 UniSee projects (launched • +2,500 Nexxis OR solutions
EOY17) installed
• +590k ClickShare units and
continuing double digit growth

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 We are mission critical
to our customers

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 Global revenue €1Bn+, with staying power

The Americas EMEA Asia-Pacific

Barco sales: Barco sales: Barco sales:
36% 36% 28%

Region GDP: Region GDP: Region GDP:

33% (+6% CAGR*) 33% (+1%) 34% (+7%)

Global footprint
…but some relative overweight in our ‘backyard’  Asia opportunity

21 * Regional growth CAGR over period 2007-2017

 Innovation
Barco’s historical competitive
advantage & strongest
competitive differentiator

… but need more in today’s world

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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

Invent Test market

something
new

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

Invent Test market

something early, try and
new learn fast

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
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3. The next chapter
4 value drivers
 Next chapter | 4 value drivers

I. Maintain & strengthen performance focus

II. Capture market growth opportunities

III. Capture lifecycle value opportunity

IV. Innovate on what matters

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 I. Maintain & strengthen performance focus

Focus to perform
 Value engineering and operational efficiency to support margin
 Lock ‘Focus to perform’ into process & leadership capabilities

Building ‘fit to lead’-capabilities and OneBarco synergies

> commercial capabilities & coverage in regions
> product management and segment marketing Presentation
> software development Strategic
> services quality Update

Sharpen organizational agility & customer centricity

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 II. Capture market growth opportunities

Healthy markets with global applicability of our solutions

> Mature: installed base renewals, upgrades and integrations
> Growth: new installations in HC, ENT, ENP

Attractive market cycle opportunities e.g.:

> ClickShare: “an overall 8m meeting room market”
> Surgical: “a 250m TAM (2018) and growing”
> Cinema: renewal of 80k screens in N.America & Europe
> Control Rooms:‘smart’ infrastructure (cities, critical ops …)
Presentation
New Product Introduction (NPI) translating into Divisional
commercial succes and scale e.g.: carousels
> UniSee: 500 in first 500 days
> UDX platform: +1400 in 18 months
> Series 4 platform: launched in April with strong +ve feedback

Sustain strong R&D investment to feed NPI pipeline

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 II. Capture market growth opportunities

• Top 2 GDP, mid-high single digit growth

• ENT/ENP/HC new infrastructure being
built in tier 2-3 cities
• 300+ cities & 220m+ people embarking
on modernization wave
China • Leap frogging to latest technology

Our way to win:

In Country For Country (ICFC) …
• Design with needs of Chinese
customer in mind
• Leverage local labor cost and low cost
supply base
• Capture local innovation
• Move at China speed
• Be seen as ‘Chinese’ by customers

… lead by ‘glocal’ talent

29 Source: IMF stats 2017

 III. Capture lifecycle value opportunity

Customer process Customer outcomes

• Quality
• Cost of ownership
• Efficiency
• WOW! Experience
• Collaboration quality
• Actionable insight

Enhance capability in and Increase value delivered to

around Barco technology customer … and monetize
 Example
Customer value and technology stack – Operating room

Technology Barco Solutions Outcomes

OR & Surgical analytics Barco-caresyntax collaboration

 Clinical quality
Evidence- Surgical Automated & & efficacy
--- --- --- --- based case Training & Actionable
review Coaching Reporting  OR efficiency

OR Workflow Barco-caresyntax collaboration  Integrated

recording/reporting
OR & ICU EMR
Planning Admin
--- --- --- Recording
Hospital IT
Connectivity
Reporting  Collaboration across
patient pathways

Device connectivity  High quality, zero-

Nexxis latency, connectivity
of images and video
streams
Room camera Vital signs Endoscopy PACS / EMR C-arm

OR Medical Imaging  Reliable high

resolution
visualization

Minimal Invasive Surgery Surgical Navigation Systems Robotic Assisted Surgery Interventional Suites
Customer value and Barco technology stack opportunity

Technology Customer Value

Analytics solutions System optimization

• Asset / Outcomes optimization
Harness the power of data for
• Quality of insight and experience
sustainable outcomes

Workflow solutions Workflow enablement

• Digitally enabled productivity
Enabling customer productivity
• Increased process capacity
& simplicity
• Repeatable & sustainable outcomes

Device connectivity Capture data / workflow control

• Seamless interoperability/ collaboration
Enabling data stream,
• Enabled productive workflows
collaboration and BYOD
• Data security

Hardware Best-of-breed components

• Optimized TCO
Build / renew innovative
• Quality and reliability
technology infrastructure
• Customer-driven innovation
Customer value and Barco technology stack opportunity

Technology Portfolio examples

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

“Owning” Enable Access to deliver

the physical the value added
User-Interface (Software/Services)
(Hardware)

Sustain Deliver

Customer Outcomes
satisfaction & in mission critical
loyalty situations
Gain

It’s about becoming great at Hardware AND Software

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 Growing and extending ‘installed base’

Enable

Exploring
Commercial Sustain Deliver new
Excellence business
models

Gain

AND evolving to an experience provider delivering outcomes.

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 IV. Innovate on what matters to drive ROI

Upgrading our process by adding Lean Start Up and Agile principles

• Increasing effectiveness of incubators/ventures/growth initiatives
• The way we work with focus
> Driven by customer value insight
> Short cycles/fast learning
> Develop with customer
> Plan for rapid scaling
• Business model innovation

Investments balanced across 3 horizons

• Securing product portfolio
Presentation
• Product portfolio expansion
Strategic Update
• Develop and leverage foundational
technologies

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 Next chapter – 4 value drivers

I. Maintain & strengthen performance focus

II. Capture market growth opportunities

III. Capture lifecycle value opportunity

IV. Innovate on what matters

Levers to drive Barco’s sustainable profitable growth

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 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

Efficient growth driving profit accretion,

while investing in building recurring revenues capabilities
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 Capital allocation and inorganic opportunities

1. How do we expect cash to evolve 2. Cash allocation

2018  2021 ?

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

° Post cash out for restructuring &

_tax
◦ Inorganic/M&A radar being built with
Cash

° Working capital @ 5% of sales Flexibility on cash focus on bolt-on and ‘value stack’
opportunities

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 On track to deliver | What we aim to represent, for our…

A preferred partner ...

CUSTOMERS
who delivers outcomes that matter

OUR Barco ...

EMPLOYEES Inspiring, Engaging, Energizing

An asset ...
INVESTORS
with attractive return and purpose

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Thank you !