Innovators in image processing Martin De Prycker President

Innovators in image processing Martin De Prycker President & CEO JP Tanghe VP Corp. Comm & Inv. Rel 1

BARCO world leader in IMAGE PROCESSING for professional markets • Barco. Projection: large screen visualization 2001 (Pro Forma) • Barco. View: visualization for life critical decision-making • Barco. Vision: visual inspection and quality control 2

Technological evolution at BARCO • Evolution from stand alone products to systems focusing on vertical markets • • • Control rooms Simulation Media and Entertainment Medical Imaging Air Traffic Control Military Imaging • Strong R&D basis to remain technology leader 3

BARCO’s leading edge technology in vertical markets …… technologies 4

Control Rooms • Expansion of application markets from Telecom and Utilities towards Broadcast, Traffic, Surveillance and Intelli. Room • Worldwide leader with 43% of market Control Rooms 5

Simulation and Virtual & Augmented Reality • Simulation • Applications for pilot training, ship navigation, train drivers • V&AR • Design in automotive market, oil & gas market (test drilling), edutainment (leisure parks, planetariums, museums, …) Simulation 6

Media & Events • Has become one of the two market leaders over a two years’ period • Events: supplier of the top Rental & Staging companies of the world • Media: introducing digital signage, a revolution in advertising LED Wall for Coca Cola on Piccadilly Circus in London 7

Barco. Projection: BCI Digital Cinema • Market with a huge potential of ± 115. 000 theaters worldwide but Digital Cinema market still waiting for a business model acceptable by all actors in this market • Increasing number of agreements signed with Cinema theater equipment dealers • Regular “individual” sales of Digital Cinema projectors • 1 st quantity buy by Boeing Digital Cinema 8

Air Traffic Control (Barco. View) • Isis turning into commercial success as anticipated at introduction mid 2001 in Europe • Now also breaking through in Asia and US • Replacement market of some 12, 000 work stations worldwide Isis 9

Security & Defense (Barco. View) Visualization sub-systems that can be used in a variety of reconnaissance, surveillance and intelligence gathering Vista 1000 rugged workstation for C 4 I applications 10

Medical Imaging (Barco. View) • Significant market share in PACS (Picture Archiving and Communication Systems) Coronis • To be continued and strengthened by recent introduction of flat panel LCD Coronis 11

Sensors & Systems (Barco. Vision) • Fully integrated CIM systems for textile and plastics manufacturing • Sensors for quality control on spinning machine and weaving loom Cyclops 12

BARCO’s future • Focus on image processing technologies and markets to reap benefits of markets and technology synergies • Strong technology advantages in key technologies • Good market knowledge in vertical markets • Strong financial structure to finance internal growth and acquisitions • Ready to further streamline its operations with renewed internal processes to improve EPS • Aiming at a P/E ratio in line with its position as a profit making company in a growing market 13

Innovators in image processing Results first quarter 2002 14

2001 Sales & EBIT per quarter excl. Barco Graphics incl. dotrix n. v. 9. 4% 14. 2% 1. 4% 6. 4% In € mio 2001 Q 2 Q 3 Q 4 Total 157. 1 181. 7 153. 7 180. 9 673. 4 EBIT (M€) 14. 8 25. 8 2. 2 11. 6 54. 4 % of sales 9. 4 14. 2 1. 4 6. 4 8. 1 Sales (M€) 15

Achievements 1 Q 02 Orders: € 167. 5 mio Sales: € 152. 2 mio EBIT: € 9. 7 mio Inventory: reduced by 10% since end ‘ 01 net cash position: improved by € 40 mio 16

Expectations 2 Q 02 & 1 H 02 Increase in sales 2 Q 02 by approximately 15% compared to 1 Q 02 Further reduction of operational costs Increase in EBIT % to double digit 17

Expectations 2 H 02 Sales: slight increase vs 1 H 02 EBIT: increase through further cost reduction Inventory: a further reduction by 10% by end 2002 18

Positive factors impacting BARCO results • strong growth in media and events both in projectors and LEDs • gradual start of the DC market • the only supplier of 2 Kx 2 K LCD display for ATC market winning main markets • regaining market share in medical market with flat panel LCD 19

Negative factors impacting BARCO results • Control Rooms suffers from telecom crisis • temporary stop in growth of military market because of active warfare • some difficulties with some suppliers in delivery of critical components 20

Innovators in image processing 21