Innovators in image processing BARCO General Presentation February

Innovators in image processing BARCO General Presentation February 20, 2003 JP Tanghe: VP Corp Comm & Inv Rel

BARCO • Founded as the Belgian American Radio Corporation in Poperinge, Belgium, in 1934 • International company, headquartered in Kortrijk, Belgium, with a global presence • Listed on Euronext Brussels, part of BEL 20, Next 150 and component of Dow Jones Sustainability Indexes 2

Worldwide Presence Asia Japan North America Europe Germany Charlotte (North Carolina) United Kingdom Kennesaw (Georgia) France Duluth (Georgia) The Netherlands Xenia (Ohio) Italy Beaverton (Oregon) Spain South America Sao Paulo (Brazil) Buenos Aires (Argentina) Tokyo, Osaka, Nagoya India Delhi, Noida Singapore China Beijing, Shanghai, Chengdu, Guangzhou Hong Kong Switzerland Thailand Czech Republic Bangkok Denmark Malaysia Poland Kuala Lumpur Russia Australia Israel Melbourne, Sydney Taiwan Shinzu, Taipei South-Korea Seoul 3

World Leader in Image Processing • Large screen visualization (Barco. Projection) • Visualization for life critical decision-making (Barco. View) • Visual inspection and quality control (Barco. Vision) Projection 53% 1 H 02 4

View Control Rooms Media & Events Simulation Food Textile Markets Leisure Automotive Oil & Gas Flight +++ Cinema Events Media Surveillance Broadcast Telecom Utilities Medical Defense ATC Avionics Leading Edge Technology in Vertical Markets …… Vision Projection Networking/Software/Systems Image Processing LCD CRT LED DLP Sensors Technologies 5

Barco. Projection Barco. View Barco. Vision 6

Market Overview - Control Rooms Barco Control Rooms - Simulation Products Virtual & Augmented Reality Edutainment Intelligent Displays Barco Projector Innovators - Media Events High End Home Theater Digital Cinema Barco Creative Imaging 7

Control Rooms • Expansion of application markets from Telecom and Utilities towards Broadcast, Traffic, Surveillance • Worldwide leader with 43% of market 8

Simulation and Virtual & Augmented Reality • Simulation Flight, ATC, Ship Bridge, Drive, Gunnery • V&AR Virtual Prototyping: Automotive, AEC Oil & Gas Molecular Modeling, Medical Scientific Research and Education • Edutainment Museums, Science Centers, Aquariums Theme Parks and Leisure Centers Planetariums 9

Intelligent Displays • Presentations can be sent to projectors via standard network or Internet, even wireless • Projector functions can be controlled via network or Internet • User can view information on status of all projectors connected to the network • Intelligent Displays to replace standard projectors in market for corporations and other organizations 10

Events • Combines LED, projection and control equipment to provide customized events control solutions to the events and rental & staging industries • A recognized market leader whose products grace the shows of Madonna, U 2, Jennifer Lopez and many more 11

Media • Development and production of LED display systems and peripheral equipment targeted at the specific needs of the media and sports markets LED Wall Reliant Stadium, Houston, Texas LED Wall for Coca Cola on Piccadilly Circus in London 12

Digital Cinema • Market with a huge potential of ± 118. 000 theaters worldwide, but still waiting for a business model acceptable by all stakeholders in this market • Increasing number of agreements signed with Cinema theater equipment dealers • Regular “individual” sales of Digital Cinema projectors • First quantity buy by Boeing Digital Cinema • Promising Chinese market 13

High End Home Theater • Sales in High End Home Theater market going strong with new product introductions • April 2002: launch of revolutionary home theater concept “Cine VERSUM”, bringing unparalleled digital video quality and flexibility to the home theater of the future Cine VERSUM 14

Barco. Projection Barco. View Barco. Vision 15

Market Overview - Air Traffic Control Defense - Airborne - Naval - Landbased Command & Control - Medical Imaging - PACS - Modalities Medical Imaging Systems - Avionics 16

Air Traffic Control • ISIS LCD flat panel turning into commercial success as anticipated at introduction in Europe early 2001 • Now also breaking through in Asia and US • Replacement market of some 12, 000 workstations worldwide 17

Defense • High quality ruggedized flat panels, graphic boards, consoles and visualization (sub)systems that can be used in a variety of defense applications, reconnaissance, surveillance and intelligence gathering 18

Medical Imaging • Significant market share in PACS (Picture Archiving and Communication Systems) • To be continued and strengthened by introduction of Coronis family of flat panels and Image. Tile 19

Avionics • Clear acceptance of system concept as adopted over recent years, made possible thanks to important R&D investment • Production series based on this concept are part of long term projects 20

Barco. Projection Barco. View Barco. Vision 21

Market Overview • Textiles: sensors & systems • Spinning • Weaving • Finishing (dyeing) • Plastics • Production monitoring • Optical sorting • Food (French fries, nuts, seafood, vegetables…) • Non food (tobacco, plastic flakes and pellets) 22

Strategy of Barco (1) Consolidate our nr. 1 or nr. 2 position in our key growing markets • Medical (20% to 25% CAGR) • Events (14% on the longer term) • Defense • Simulation and V&AR (6% to 8% CAGR) through internal growth by investing in R&D to improve in • System approach • functionalities • Cost containment through external growth: acquisitions by means of strong net cash position of > 60 M€ • TAN in August 2002 • ORTHOGON in October 2002 23

Strategy of Barco (2) • Expand in new markets • Air Traffic Control: build on change from CRT to LCD (increased market share in 2002 from 5% to 80% of new installations) • Digital Cinema: build on change from analog to digital with a potential of 118. 000 theatres (CAGR: 100%, but in its infancy) • Media: use and adapt technology leadership from Events market (14% CAGR) 24

Innovators in image processing Results third quarter 2002

Operational results Q 302 in € million Q 302 YTD 02 Q 301 YTD 01 Orders 163. 6 521. 8 146. 8 525. 3 Sales 145. 8 474. 2 153. 7 492. 5 11. 2 39. 9 2. 2 42. 9 7. 7% 8. 4% 1. 4% 8. 7% EBIT % 26

Orders higher than Sales for 3 rd consecutive quarter (in € million) * Results 2001 “pro forma” i. e. incl. dotrix n. v. , Barco Graphics not consolidated 27

Results Barco • Orders: order book has further increased in Q 302 by € 18 million • Sales: sales Q 302 traditionally weak because of reduction in shipments to European customers due to holiday season Additional impact from • Delayed internal deliveries due to transfer of mechanical manufacturing from Belgium to Czech Republic • Yield problems with external suppliers • EBIT: • Slight increase of gross margin from 55% for 1 H 02 to 56% in Q 302 by • Ongoing introduction of new features, compensating price pressure • Ongoing cost improvement • Further reduction of manpower from 4132 end 2001, to 4000 employees worldwide 28

Barco. Projection (1) (in € million ) 29

Barco. Projection (2) • Sales • Control Rooms: • Growth in new markets compensates low investments from Telecom • Orders Telecom picking up again in Q 4 • New stand-alone projector i. Q • Has won several awards • Not taking off fast enough yet • Higher market share in V&AR thanks to growth in US market and TAN acquisition • Events: • Q 3: weaker investments by Events customers, picking up again in Q 4 • Media projects delayed • New product for Media applications available as of begin ‘ 03 • Hopeful signs from Digital Cinema, particularly in China • EBIT: margin well maintained at 10. 1% vs comparable quarters, Q 301 (2. 1%) and Q 102 (9. 3%), despite lower sales 30

Barco. View (1) (in € million) 31

Barco. View (2) • Orders: • Orders in Security and Defense picking up again for existing and new programs • Ongoing strong orders for ATC and Medical • Sales: ongoing successes in • Air Traffic Control (ATC) • Further market penetration of flat LCD panel, also in USA • Strengthening of market position by acquisition of Orthogon • Medical • Introduction of high-end flat screens for Medical of 1, 2 and 5 megapixel besides 3 megapixel • EBIT: much better than Q 301 32

Orthogon joined Barco (Oct 1, 2002) Strategy: ATC is extending its portfolio with software and integration services, also towards end users Market Share Orthogon: • Mainly ATC (80%) and expanding into Security & Defense to offer software and integration services • System integrators and end users • Mainly Europe (80%) with market leadership • Short term growth potential in USA in ATC • Long term growth potential in Security & Defense 33

Barco. Vision (in € million) • Textile machine market in China and Turkey continues to go strong • Sales weaker in Q 3 due to seasonal effect 34

Barco Subcontracting (in € million) • Increase in manufacturing with components in consignment results in lower sales but yields higher gross margin 35

Geographical breakdown of Turnover per Activity (%) EU Nafta Asia ROW Barco. Projection Barco. View 28 Barco. Vision 60 37 57 11 35 13 17 24 3 12 Total Q 302 42 35 19 5 Total 1 H 02 Total 2001 46 48 32 30 16 16 6 6 4 36

OWC: Inventory • Inventory on same level as end Q 202 due to slack in deliveries and in preparation of higher sales in Q 402 37

OWC: Accounts Receivable Days outstanding (incl. BG) 38

Net cash position in € million 39

Results Q 3 & YTD in € million Q 302 YTD 02 Q 301* EBIT 11. 2 39. 9 2. 2 42. 9 Current Result 11. 6 40. 7 1. 4 42. 3 Taxes (3. 2) (9. 6) (0. 3) (12. 9) 1. 1 29. 4 0 (0. 4) Curr. Res. after Taxes 8. 4 Extra-Ordinaries 0 Amort. Of goodwill 1. 4 3. 6 1. 7 Net result 7. 0 (0. 5) (0. 6) Current EPS** 0. 68 2. 51 0. 09 Current cash Flow 23. 7 31. 1 (28. 1) 77. 5 15. 8 YTD 01* 5. 1 23. 9 2. 37 74 *”pro forma”, i. e. incl. dotrix n. v. , Barco Graphics not consolidated ** in euro 40

Preview Q 402 Sales Q 402: 193. 9 mio euro vs 175/185 expected = +7% vs Q 401 • Better supply of certain components • More deliveries from backlog • More orders to be delivered still in 2002 EBIT Q 402: > 31 mio euro vs 21/25 expected 41

Preview Full Year 2002 Sales FY 2002: 668 mio euro vs 673 in 2001 = -0. 8% despite low USD Orders FY 2002 vs FY 2001: -0. 8% EBIT FY 2002: + > 30% vs 2001 > 10% vs sales 42

Innovators in Image Processing www. barco. com 43