6 November, page 1Company Confidential

Results Third Quarter 2003

Martin De PryckerPresident & CEO

November 6, 2003

6 November, page 2Company Confidential

Operational results Q3 2003 and YTD 2003

in € mio Q3 2002 YTD 2002

Q3 2003 YTD 2003

Growth Q3 03 / Q3 02

Ordersnominal

163.5 521.8 147.1 474.1 -10.0%

Orderscomparable

163.5 521.8 156.8 515.0 -4.1%

Sales nominal

145.8 474.1 145.2 454.3 -0.4%

Sales comparable

145.8 474.1 154.9 493.4 +6.2%

EBITA 10.5 43.3 10.1 42.9 -3.6%

EBITA % 7.2 9.1 6.9 9.4 -3.2%

6 November, page 3Company Confidential

Results per quarter

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Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03

OrdersSalesEBI TA

in € mio

6 November, page 4Company Confidential

Overall comments Q3 2003

• Comparable sales growing 6.2% at unchanged €/$ vs Q3 2002

• Nominal sales flat vs Q3 2003• Weak orders and sales in July and August but strong

retake in September, continuing in October• Book-to-bill ratio at 1.01 lower than Q3 2002, because of

long term contracts in ATC and defense in Q3 2002• EBITA at 6.9%, slightly lower than Q3 2002 (7.2%),

mainly caused by– 5.4 € Mio, due to dollar and pegged currencies decline – Lower gross profit from 44% to 42% because of unfavorable

product mix and higher relative indirect manufacturing cost– Partially compensated by increasing efficiency

• Net income 6.7 € mio vs 5.9 € mio, including 0.7 € mio for transaction on Machine Vision and lower taxes 0.6 € mio

6 November, page 5Company Confidential

Evolution of results per division

in € mioQ3 02 Q3 03 Q3 02 Q3 03

BarcoProjection 72.2 74.7 7.3 4.0BarcoView 41.1 46.8 1.7 4.9BarcoVision 23.9 15.7 2.3 2.0Barco Subcontr. 16.7 14.5 0.3 0.3Other -8.1 -6.5 -1.1 -1.1Total 145.8 145.2 10.5 10.1

Sales EBI TA

6 November, page 6Company Confidential

BarcoProjection (1)

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OrdersSalesEBI TA

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6 November, page 7Company Confidential

BarcoProjection (2)• Sales

– Increased sales vs Q3 2002 with 3% nominal– Successes

• In Media market confirmed (both Europe and US), although at a lower margin• In Control Rooms: sales in Asia are picking up again

– Concerns• In Simulation: market remains weak mainly in civil aviation at level of Q2 2003

• Orders– Strong book-to-bill ratio at 1.14 with especially good orders in

• Control Rooms: Broadcast (US, Japan) / Traffic & Surveillance worldwide• Events: confirms market leadership both in Europe and US• Presentation: successes in project solutions (Las Vegas)

– Strong order book basis for strong Q4

• EBITA– Gross profit margin weaker at 42% vs 44% previous quarter,

because of unfavorable product mix, resulting in a weaker EBITA of 5.4 %

– Transition of manufacturing of large volume LED walls to China by Q1 2004 will allow us to reduce cost and be $ insensitive

• Acquisition status• Leyard acquisition completed in September

6 November, page 8Company Confidential

BarcoProjection (3)

• New products introduced• Media: Hi-res LED wall (3 mm pitch) / LCD panel (40 inch)• Events: world record light output projector (XLM)• Events & Media: MiPIX - modular light/video blocks• Simulation: Trace / Gemini – prepackaged solutions

6 November, page 9Company Confidential

Evolution in Media product offering

• Initial (2002) product offering was identical to events, with too high cost with unnecessary features for media

• Early 2003, introduction of S-lite dedicated product with 30% cost reduction versus first product

• Early 2004, cost down version under design for manufacturing in China with another 30% cost reduction

6 November, page 10Company Confidential

BarcoView (1)

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Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03

OrdersSalesEBI TA

in € mio

6 November, page 11Company Confidential

BarcoView (2)

• Sales– Total sales YTD increased with 26% vs YTD 2002– Improved sales volume vs Q2 2003 in medical, both in US

and Europe– ATC and Defense & Security: good sales volume vs Q3 2002

(+ 34%), but somewhat lower than Q2 2003

• Orders – Orders in Defense & Security and ATC remain low, but

increased commercial activities are expected to result in an increased order level in Q4

– Orders in medical remain at high level, but move to shorter term, getting us to reduce our delivery times

– Good orders for Avionics and expected good sales in Q4

• EBITA– Good profit margin of 10.5%

• New products introduced– Coronis 3MP Duralight with extended lifetime for medical

applications

6 November, page 12Company Confidential

BarcoVision (1)

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Q1 02 Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03

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in € mio

6 November, page 13Company Confidential

BarcoVision (2)

• Sales & Orders– Machine Vision no longer included– Weaker sales volume in textile business as we are in

the middle of the low period in this cyclical business

• EBITA– Profit margin remains high at 12.4%, despite lower

volumes

• Machine Vision– The sale of Machine Vision has a non operating result

of 0.7 € mio

6 November, page 14Company Confidential

Barco Manufacturing Services (1)

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6 November, page 15Company Confidential

Barco Manufacturing Services (2)

• Sales & Orders– Weaker sales/orders than Q2 2003

• EBITA– Indirect manufacturing cost not reduced in line with

manufacturing volumes, resulting in a slightly positive result (1.9%), weaker than previous quarter

• Reorganization– Electronic sub-assembly will be streamlined from

4 locations in Belgium and 1 in the Czech Republic to 1 in Belgium for small series and 1 in the Czech Republic for larger series

– Restructuring cost will be taken as a special charge in Q4 and is anticipated around 2.5 € mio, equal to the saving to be realized per year

6 November, page 16Company Confidential

Geographical breakdown of sales

49,8%

16,0%

34,2%

54,4%31,1%

14,5%

EMEAAMERI CASASI APAC.

Q3 2003

Q2 2003

6 November, page 17Company Confidential

Key figures Income Statement

in € mio Q3 02 YTD 02 Q3 03 YTD 03

SalesCost of goods sold

145.8-81.1

474.2-266.5

145.2-83.6

454.3-255.1

Gross ProfitResearch & DevelopmentSales & MarketingGeneral & AdministrationOther operating result

64.7-17.9-23.2-11.9-1.3

207.7-52.8-72.3-37.0-2.3

61.6-17.1-24.5-11.6+1.7

199.2-51.8-74.5-35.4+5.4

EBITAGoodwill amortization

10.5-1.5

43.3-3.8

10.1-1.5

42.9-4.8

Operating Result 9.0 39.4 8.6 38.1

Non-operating result 0.4 -27.3 1.0 1.8

Income Taxes -3.5 -11.8 -2.8 -12.0

Net Income 5.9 0.3 6.7 27.9

Current Cash Flow 22.0 77.7 22.0 74.5

Current Earnings per Share (in €) 0.59 2.60 0.61 2.59

Net Earnings per Share (in €) 0.47 0.03 0.54 2.25

6 November, page 18Company Confidential

Key figures Balance Sheet

in € mio 31/12/02 30/06/03 30/09/03

Accounts Receivable

158.5 148.3 138.7

Inventory 118.0 130.4 115.3

Cash 122.5 101.9 120.4

Financial debt

34.4 25.2 28.5

6 November, page 19Company Confidential

Expectations Q4 2003

• Target orders: 175 - 190 € million, at least 18% higher than Q4 2002 at constant exchange rates

• Target sales: 173 - 183 € million, comparable with Q4 2002 at constant exchange rates

• Target EBITA: between 23 and 29 € million, before the one time restructuring charge of Barco Manufacturing Services of 2.5 € million

• Discussions with partner for dotrix continue• Anticipated tax rate 2003 is 27%