FULL YEAR RESULTS

Kortrijk, Belgium, 10 February 2022, 7:30 am – Today Barco (Euronext: BAR; Reuters: BARBt.BR; Bloomberg: BAR BB) announced results for the six- and twelve-month periods ended 31 December 2021.

Financial highlights fiscal year 2021 and 4Q21[1]

• Orders FY21 € 979 million, +31% versus orders FY20
• Sales FY21 € 804 million, +4% versus sales FY20
• Orderbook year-end € 487 million up 206 million euro versus FY20
• FY21 EBITDA € 58.5 million euro or 7.3% of sales versus € 53.6 million in 2020
• FY21 Adjusted EBIT € 19.4 million compared to 10.2 million euro in 2020
• FY21 Free Cash flow 78 million euro versus a negative 36 million euro for FY20
• Orders 4Q21 +52% versus 4Q20 ; -2% versus 4Q19
• Sales 4Q21 +29% versus 4Q20 ; -21% versus 4Q19
• Proposal to increase the gross dividend to 0.4 euro per share from 0.378 euro

Executive summary

Group topline – solid order intake and sales conversion lagging

Orders were 979 million euro, up 31 % compared to 2020, driven by solid economic recovery across all markets and all regions.

Sales for the year increased 4% to 804 million euro, still reflecting ongoing effect of the pandemic on business activities and component shortages (estimated impact in 4Q21 was approximately 15 million euro).

Fourth quarter sales were 29% higher than 4Q20 reflecting increases in each business unit but still 21% below the pre-pandemic fourth quarter of 2019.

At the end of 2021 orderbook was at a record level of 487 million euro.

Division topline – encouraging rebound in Entertainment & Enterprise

The Entertainment division delivered good growth in both orders and sales in 2021, following a soft 2020. Both business units contributed to the year-over-year growth with Cinema showing order intake growth across all regions and sequential gains in sales. The Immersive Experience business unit recovered well, particularly in the fixed install business reflecting greater demand from museums, projection mapping and theme parks.

Enterprise saw a continuation of quarter-over-quarter improvements in orders as of 2Q21 in both segments. Sales rebounded toward the end of the year, fueled by solid deliveries and deployments in both the Meeting Experience and Large Videowall segments.

Orders for Healthcare reached a record high in 2021 reflecting the resumption of healthcare investments in both the diagnostic imaging and surgical market segments, while sales were flat, hampered by component shortages.

Profitability & free cash flow

Gross profit margin for the year declined 1.1 percentage points to 35.7% due to higher component and logistics costs mainly in the second semester of 2021. As a result, with operating expenses flat with 2020, EBITDA 2021 amounted to 58.5 million euro for 7.3% EBITDA margin versus 53.6 million euro and a 7% EBITDA margin in 2020.

Free cash flow for 2021 was 78 million euro compared to 36 million euro negative a year earlier, resulting mainly from better gross operating cash flow and decreased working capital.

Quote of the CEO's, An Steegen & Charles Beaduin

An Steegen and Charles Beauduin commented,”2021 was a challenging year, but we saw undeniable indications of recovery in Barco’s demand across all business units and regions attesting to the health of Barco’s end markets and strength of our leadership positions. The Barco team turned challenges into opportunities, adjusting to the impacts of the pandemic on business operations. Our new organizational structure has been established and we are already seeing the benefits in customer responsiveness and team engagement.

While we are still dealing with uncertainties regarding the shape and pace of market recoveries, we are starting the year with a strong orderbook, a solid balance sheet and a cost structure that gives us the flexibility to navigate the risks and opportunities ahead. As a result, we are in a good position to resume executing toward our long-term financial objectives.”

Outlook 1H22

The following statements are forward looking, and actual results may differ materially.

For the first half of 2022, and assuming no further deterioration of the supply chain constraints, management expects sales to increase approximately 20% compared to 1H21. EBITDA margin is expected to be higher than the full year 2021 EBITDA margin, reflecting gradually improving gross profit margin and operating leverage on higher sales.

The company is not providing a full year outlook for 2022 as visibility for the year is currently limited and business conditions may change substantially over the year.