Barco Nv Unsp/Adr

Good morning, ladies and gentlemen. Thank you for joining us on the earnings call for Barco's full year results 2025. My name is Willem Franszoo. I'm heading Investor Relations at Barco. I'm in the room today with our CEO, Ann Stegen, and our CFO, Anders Sender. They will guide you through the presentation, and after the presentation, we will open up for questions. So I would like to give the word first now to our CEO, Ann Stegen.

Thank you, Willem, and good morning, everybody. Let me start with a summary of the full year results for 2025. And as promised in our guidance, we delivered profitable growth for 2025. Sales landed at $964 million. That is 2% up compared to 2024 and 4% up if you compare it at constant currency. The main contributors to the growth came from entertainment, which was up 11%, and from the EMEA region, which was also up 11%. We faced some headwinds in the US with tariffs and a weak dollar. We saw slightly lower orders. In general, we see a new trend, actually shorter order cycles, because since the shortages, the supply shortages are now out of the way, we see shorter order cycles and also more book and term. So that was one reason. The other one that we had by end of 24, also some pre-orders for the Encore 3, which didn't happen at the end of 25. Now we also had a very successful launch of our HDR by Barco premium cinema offering. This basically reinforces our cinema as a service and also helps us build recurring revenues in our cinema business. So in cinema, thanks to HDR by Barco, we are moving away from a one-time projector sales to a recurring revenue stream over the lifetime of the projector. In EBDA, we landed at 125 million, which is 13% of sales. This was definitely supported by a very strong product mix. That, of course, was offset with the impact of tariffs and currency. We also basically had disciplined execution, so we basically resulted in an OPEC spending 4% below last year. What is also very important to mention is that in 2024, we had a one-time, one-off income, 10 million income from a sale lease back from our building in Duluth. So if you take out this non-recurring part in 24 and you count in and you take out for a second the 8 million impact that we see from the FX, from the currency, the 7 million from the tariffs, then you could say that in recurring EBDA we grew about 30 million. And that is a very strong representation of our business performance in 25, our very strong product mix as well as our disciplined execution. In earnings per share, we basically increased the earnings per share to 0.85 euro. That's 20% up year over year. We returned 120 million to our shareholders. 44 million of that was coming from the dividend. The other 81 million by the end of 25 basically was what we paid back in our two share buybacks that we did in 25. Also for this year the proposal is to increase the dividend to 0.55 euro per share and we also are proposing to cancel 6% of the outstanding shares which is of course giving back more value to our shareholders per share and also basically building up earnings accretion for the future. Now for the outlook 26 we expect as well top line SEBDA growth for the full year excluding currency effects. We see the growth again skewed to the second half. I say again because this is really a typical behavior that we see at Barco. More growth in the second half of the year and we also expect some more currency effects in the first half. We also reconfirm our long-term guidance as we communicated at Capital Markets Day in October. And with this, I'll hand it over to Anders Zender for more financial details.

Good morning. Starting with orders and sales. So as indicated on group level excluding or at constant currencies, our sales has been growing by 4% year over year and orders getting closer also to last year at constant currencies with the below 2% versus year before. When also indicating our additional 2D orders, indeed we do see with a normalizing of supply chain speed and no longer supply chain constraints, that we do see that the order to sales conversion is getting faster and that indeed also customers do tend to order a little later. Or we have the lack of pre-orders, call it like that. From a regional perspective, EMEA has a double-digit growth both in orders and in sales growth. When you look to the divisions and more on that later on, then we see that entertainment is here in a pole position, call it like that. The Americas reported growth minus 3% sales year over year, if we exclude currencies getting in line with the year before. And order intake was indeed challenged, and that in particular in the second half. A couple of things for explaining that. Currency of course has an impact to the 2-3% on a full year basis. We had a larger cinema order being shifted out, which is to the tune of about 20 million, which we could now already sign up for and we have been able to book now in January 26th. We did see, impacted by tariffs and impacted by what's going on in the U.S. lower and in the volatile world, delayed government spending. that has a particular impact on our business and control rooms and healthcare diagnostics in particular. And then after a strong first-half and surgical, we did see a lower signing of contracts or a renewal of contracts in the second semester, which then indeed, if you look first semester, second semester, has an impact. APAC top line landed in line with last year. Minus 2% reported in line if we see that at constant currencies. Our order book landed at 493 million. Also there some translation effects. on that, so we'll see how that evolves going forward. And if you compare it to the year before, the year before we had some pre-orders on newly launched products, and the biggest one there was Encore 3, which we then were able to deliver all in 2025. We include it here again, like we normally do, the waterfall on our EBITDA from one year to the in particular pointing out a couple of I would say headwinds which have been compensated by and the headwinds coming from indeed currency effect coming from tariffs tariffs so the extra tariffs which we pay and that's primarily on projection coming out of Europe which is to the tune of 15% And then also with respect to healthcare, we had some over 25. The gross impact which we have, have been able to mitigate, call it, via then price increases for the half of that. Now, what we single out here is the gross impact on the tariffs and then on AIBICS. Then together with the red block statistics, so last year Odrinco included a non-recurring gain on the sell and his back. So we add up those three blocks to get to 30 million, which we then did offset to come to an increase in our profit and profitability. So this thanks to higher top line, 4% top line growth. Nv Unsp-Adr Nv Unsp-Adr Nv Unsp-Adr We've been able to lower R&D as we had many product launches prepared in 2024, which we then had in 2025. So we could get our R&D then back in a more normal range of 12.6%. Sales and marketing, G&A in line with the year before, but getting there to a tight cost control. So combined, OPEX 4% lower than the year before. Sales up 4%. So that brings us to the 13% EBITDA margin. Taking you further down to the NAT income, so starting indeed from this EBITDA 125 million, depreciation some higher has all to do with the further uptake of cinema as a service in our portfolio, now also including HDR in there, so some increase. The cost containment we've been able to do and the cost down was already started N24, where we indeed had some higher restructuring costs in there, but that yielded then and was more than returned, call it, into an impact of the OPEX N25. Effective tax rate, we've been able now already since many years to manage that well and get at this 18% effective tax rate and without landing at an earnings per share of 85 cents and up 20%. This is before even, so that's another uptake to be expected. The impact of the deleted shares as this has to be formalized via the annual shareholders meeting to approve this in April upcoming Free cash flow for 25 landed at 6% of sales, which is nominal 57 million. Starting from a gross operating cash flow, which increased to 24 million year over year. We did see a slight increase, 1% up of working capital, which has to do actually with some lower customer advances on bigger contracts. which also has to do with the fact that inventories while staying flat year over year this includes also some impact of our cinema as a service business where we have done that that's expressed in the contracts in progress about 10 million which is included in in there VSO landing at 65 days, which is below the average days which we pay our suppliers to. So that's what we want to see. So this is at 70%. Inventory terms being, so inventory that year over year has some slight improvements to 2.2 with further opportunities to improve. Our capital expenditures landed at 38.5 million, the main ticket items in their cinema as a service as well as the manufacturing automation and footprint included in there. Net cash landing at 186 million at year end, which is about 73 million lower than year before. Up in there of course the free cash flow, 57 million, but then combined returned more than 120 million to our shareholders in the form of dividend and share buyback. When we look finally to the non-financial KPIs, sustainability KPIs, very glad to report a very big uptake and further improvement actually. Eco-labelled revenues, so revenues of products with an Eco score A or better. have further improved to 67%, up 8% versus the year before and with that also surpassing the target which we have set. It primarily comes down to the fact that all of the new products which we launch have that equal label. This is on a broader scope, also including the scoring of software and services, so very glad with the 67%. By coincidence then also our employee engagement score landed also at 67%, up 76%, same one, up 3% year over year, and also with that also overachieving the target which we had set. Headcount at the end of the year, 3,253 colleagues at the end, which is about 3% lower than two years ago, flat or in line with the years before. Customer Net Promoter Score, which we measure throughout the year and in particular through surveys twice per year, where we take all of the recommendations to heart and that is really yielding off. landing at 66% improvement compared to the year before and constantly actually getting above the target which we set for ourselves. In there also saw a very nice improvement driven by product quality which is of course key to us and to our customers and also the after-sales service and the NPS on services which landed at the top score. With that, I hand it over back to you Ann to give a little bit of more color on the different divisions.