Barco : AGM Presentation 30 April 2020

Annual Shareholder Meeting 2020

Jan De Witte

30 April 2020

PRELIMINARY NOTES

Safe harbor statement

This deliverable may contain forward-looking statements. Such statements reflect the current views of management regarding future events, and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Barco is providing the information as of this date and does not undertake any obligation to update any forward-looking statements contained in this deliverable in light of new information, future events or otherwise.

Barco disclaims any liability for statements made or published by third parties and does not undertake any obligation to correct inaccurate data, information, conclusions or opinions published by third parties in relation to this or any other deliverable issued by Barco.

Glossary

All definitions for Alternative Performance Measures (APM's) are available in the Glossary of the Annual Report

and on the investor portal(www.barco.com/en/about-barco/investors)

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AGENDA

1. CEO Presentation
2. 1. Retrospect 2019
   2. • Group Financial Results 2019
      • Executing on our strategy
      • Team, technology & capabilities
   3. 1Q20,covid-19 & outlook
3. Corporate Governance

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A. CEO PRESENTATION

1. Retrospect 2019

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BARCO GROUP RESULTS 2019 | EXECUTIVE SUMMARY

Topline growth of 9.5%, in part helped by FX

Business momentum with Cinema renewal, continued ClickShare expansion and solid growth in Surgery and Diagnostic Imaging business

EBITDA margin 2ppts up to 14.1%

Operating leverage on topline growth

Margin accretion across divisions

Net income of € 95m, up 27% &free cash flow of € 89m

Improved operating results, working capital controlled

5	Delivering profitable growth |Embedding efficiency culture

FINANCIAL HIGHLIGHTS | GROUP RESULTS 2019

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• Strong ordersgrowth inall divisions and regions oOrder book @ € 322.3m; 6% yoy
• Robustsalesgrowth

oin all divisions and all regions

o6.4% in constant currencies (mainly USD)

• Profitabilityin all divisions

oOperating leverage on topline growth, opex on sales improved 2ppts, net after 'fit-to-lead' redeployments

oGross profit margin 0.5ppts due to cost of quality (factory transfers/product ramp ups)

• Significant improvement offree cash flow,to 8.2% of sales
• Earning per share at € 7.51, up 26%

Solid performance on all KPI's| Delivering profitable growth and cash flow

CASH FLOW & BALANCE SHEET

• Solid € 88.7m free cash flowgeneration,8.2% on sales,€ 26m yoy
• Gross operating cash flow € 140m, net after restructuringpay-out
• Net working capital at 3% of sales

1. Inventory turns @ 3.2 (vs 3.8), inventorybuild-up for launches

• 1. DSO @ 55 days (3 days) ; DPO @ 71 days (12 days), both longer payment terms
• ROCE @ 25% (2ppts)
• Net cash direct available @ € 253m,~ yoy,
• 1. Net after dividend, investment caresyntax®& Unilumin and impact new accounting standard on leasing
  1. Reported cash € 329.4m, including net cash Cinionic

7	Step-up gross operating cash flow while keeping working capital under control

PROPOSED DIVIDEND 2020 AND SHARE SPLIT

It remains Barco's objective to generate consistent dividend growth for its shareholders. The Board of Directors will therefore propose to the General Assembly to increase the dividend from € 2.30 to € 2.65 per shareto be paid out in 2020, supported by the available cash proceeds in the company.

The Board of Directors will also propose to its shareholders a stock splitin order to enhance accessibility of the Barco share. The proposed transaction involves each existing share being split into 7 new shares and the target date is to trade the new stock as of 1 July 2020.

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BARCO STRATEGY| SHAPING BARCO TO BE INDUSTRY LEADER

	2019-'22	'23 beyond
2016-'18	Chapter 3 Sustained
Chapter 2
growth and EBITDA%
Chapter 1	Profitable Growth	accretion with HW +
Focus to Perform /	/ Build out our	SW + Svc /SaaS
Say.Do	value stack	business models

… we're into Chapter 2now

... with focus on long term growth by further expanding our capabilites footprint, skills and portfolio while keeping our focus on operational efficiency

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Capture growth acceleration potential

STRATEGIC FOCUS FOR 2020		Regional capability and empowerment
	Sales force and channel effectiveness, and tools
Expand growth foundation in technology	Capture share with portfolio NPIs
	
	Deliver on incubator scale-ups

OUR

STRATEGIC

FOCUS

Expand In China For China capability

• Build out R&D and manufacturing capacity for Healthcare
• Strengthen commercial ambition for other activities
• StrengthenChina-ready portfolio e.g. ClickShare

Build out Outcomes capabilities

Expand In China For China capability

•Build out R&D and manufacturing capacity for Healthcare and ProAV-projection

	•	Strengthen Control
	Room sales capability
	•	Strengthen China-
10	ready portfolio

Develop marketing and product mgt skills

• Build out software and digital business capabilities
• Step up services and commercial excellence

Lock-in innovation & performance

• Culture rejuvenation and Talent Management
• Continuous improvement & simplification
• Improve innovation & incubation rhythms. Protect IP
• Sustainability in products & business model

1. CAPTURE GROWTH POTENTIAL - NEW LAUNCHES

CinemaSeries 4: 4K - Laser - Value Engineered	DigitalOperating Room

… to grasp the new build and replacement wave in cinema

UDMprojector

• strengthening our value proposition in the events and ProAV market

ClickShare Conference

• introducing a new product category and expanding the addressable market

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2. EXPAND IN CHINA FOR CHINA

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3. BUILD OUT OUTCOMES CAPABILITIES

Demetra, skin imaging system	eXperience Management Suite (XMS)
… introducing multispectral imaging & workflow	… designed to help workplace
	collaboration and engagement

weConnect	Synergi TM
… enabling thevirtual classroom	… virtualclinical collaboration

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4. LOCK IN INNOVATION & PERFORMANCE

Barco Labs - New Technologies

Culture rejuvenation building blocks

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FURTHER BUILDING BARCO'S CORE LEADERSHIP TEAM

Gerwin Damberg, CTO

• Technology & Product management
• Operational excellence
• Commercial excellence
• Leadership talent development

Iain Urquhart, Americas

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SUSTAINABILITY IN PRODUCTS & BUSINESS MODEL

B

Meaningful step-ups in our sustainable performance start to reflect in

"above average" ratings

THE EXTRA MILE IN COVID-19 TIMES

Barco technology and resources helping our communities cope with Covid-19 challenges

Barco's technology in the 24/7 CDC's Atlanta Emergency Operations Center

Barco donates 15,000+ FFP2 masks to the nearby AZ Groeninge hospital and caregivers in SouthWest Flanders

Barco volunteer engineers helping Brussels engineers team develop a new model of medical ventilators.

Barco makes it virtual classroom technology available in its demorooms in both Karlsruhe and Kortrijk

300+ high school students from local schools and their teachers joined remote WeConnect classroom sessions setup in our Karlsruhe demo room

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A. CEO PRESENTATION

2. Retrospect 1Q20 , update covid-19 & outlook

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EXECUTIVE SUMMARY

1Q20 low single digit decline

EMEA/AM moving into lock-down as of mid-March, China picking up again after weak Q1

Healthcare strong, Entertainment still up in Q1, Enterprise facing weaker demand and push-outs

Navigating 2020, focus on employee wellbeing and business continuity

Supply chain largely restored since early March, Barco remains "open for business" with factories active, measures in place to keep employees safe and healthy, aligning activity rate with demand and cost containment actions ongoing

Dividend confirmed, sharing a 1H20 outlook

Longer term growth opportunities accross segments remain intact with some delay in the short term ; dividend confirmed

1Q20 reflecting regional mix and different covid-19 trends per business segment

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COVID-19| CURRENT STATUS IN BARCO

Pro-active approach, managing with focus on employee health & business continuity

• Organization- global picture
• • Global response team in place since January, tracking & steering country actions and communications
  • Limited impact on workforce ; strong focus onon-site sanitary & social distancing measures
  • Office operations: 80%+ of employees at telework since 2ndhalf of March ; China back in office since April
• Globalsupplyof materials back to ~90% normal status since early March and dealing with transitionary logistics and production blips as lock-down decisions move across countries
• Factoryoperations: Overall solid manufacturing & supply chain agility and resilience

BE: (HC & ENT) Some stops in Q1 for supply gaps & prep for social distancing-measures, HC near full capacity, ENT aligning with demand

IT: (HC) Production up and running even in peak of covid-crisis in IT ; production exempted from lockdown ("essential industry")

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China: (HC, ENT) Up & running since mid

Feb ; 90%+ capacity

TW: (ENP) Up & running, aligning

production with demand

IN: (ENP) videowall-RP cubes production temporarily closed (lockdown), expected to start up end of April/begin of May, inventory levels OK and shipments allowed

COVID-19IMPACT| PROJECTION OF IMPACT/BUSINESS SEGMENT OVER 2020

Division/Segment	Approx weight in	Impact
Group/Division
Category
	(2019) (Revenues)
Entertainment	42%	III
Cinema	58%	III
Replacement	less than a 1/3	III
New builds	more than 1/2	II
Service revenues	about 1/5	II
Venues & Hospitality	42%	II
Events	more than a 3rd	III

Entertainment

• Cinema's inlock-down globally and recovery likely slow until Q4
• Events business likely only to pick up after summer, ProAV & simulation showing more resilience (eg Theme parks, musea, flight simulators)

Enterprise

• Control Rooms largely depending on recession recovery

Pro AV (fixed install)

about a third

II

• ClickShare Conference well positioned for hybrid operation with more videoconferencing

Simulation

about 1/4

N

Enterprise	33%	II
Corporate	58%	II
Control Rooms	42%	II
Healthcare	25%	I
Diagnostic Imaging	73%	I
Surgical	27%	N

Healthcare

• Performing strong with step up on rising demand for (remote) Diagnostic imaging. Surgery remains solid

Essentially no order cancellations, mainly push outs … while China starts picking up

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COVID-19ACTIONS| BARCO BUSINESS CONTINUITY PLAN

I. Focus on health and safety of employees

• Continue to guarantee a safe working environment applying government guidelines and best practice behavioral rules
• Reconfiguredlay-outs,tele-work and rotation policy, awareness and training , protective equipment

II. Barco "remains open for business"

• Keeping ops running worldwide and continuing to manufacture, ship, deploy, support and service customers & partners
• Moving forward inlock-down context & prep for next phase
• Governance & IR in 2Q: AGM in webcast- format, meeting investors via virtual conference, conf calls…

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1. Mitigating impact on profitability with early cost containment actions

• Aligning activity rate of our organization to softening demand in some of our end markets
• Shifting investment pattern on selected longer term initiatives
• Cutting or shifting discretionary spending

IV. Managing cash, working capital and liquidity

• Strength of Balance Sheet provides optionality
• Managing working capital but ready to absorb temporary inventory increases and receivables

OUTLOOK

• Outlook 2020
• • Barco believes it has reasonable visibility on the second quarter financial performance and expects the second quarter to be weaker than the first quarter resulting in a sales decline for the first half of approximately 10 to 15% versus last year
  • With unclarity both on the timing of government decisions to ease restrictions and on the economic impact on some of its markets, Barco's visibility for the year is limited. Therefore the company is withdrawing its full year outlook for 2020
  • Management intends to give a full year 2020 outlook when it reports first half results in July 2020

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B. CORPORATE GOVERNANCE

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CORPORATE GOVERNANCE STATEMENT

• The Corporate Governance statement was included in the annual report 2019.
• The Remuneration and Nomination Committee does not have a majority of independent directors. The Committee's composition will be reviewed after there-appointment of the directors by the general meeting.
• An independent consultant has assessed the Board of Directors and concluded that Barco has a well functioning and cohesive board, that adds real value to the company.
• The company defined criteria under which a manager may accept an external board mandate or advisory role.
• Theby-laws have been updated in light of the new company law.
• The Corporate Governance Charter has been updated in light of the Corporate Governance Code 2020 with the following deviations:

1. No 'relationship agreement' with significant shareholder(s)

1. No compensation of directors in shares

1. No minimum threshold of shares to be held by the management

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VERKLARING INZAKE DEUGDELIJK BESTUUR

• De Corporate Governance verklaring werd opgenomen in het jaarverslag 2019.
• Het Bezoldigings- en benoemingscomité heeft geen meerderheid van onafhankelijke bestuurders. De samenstelling van het comité wordt herzien na de herbenoeming van de bestuurders door de algemene vergadering.
• Een onafhankelijke consultant heeft een evaluatie van de raad van bestuur uitgevoerd. De conclusie luidde dat Barco een zeer goed functionerende en samenhangende raad van bestuur heeft die echte waarde toevoegt aan de onderneming.
• Er werden criteria vastgelegd waaronder een manager een extern bestuursmandaat of adviesrol kan opnemen.
• De statuten werden aangepast aan de nieuwe vennootschapswetgeving.
• Het Corporate Governance Charter werd aangepast aan de Corporate Governance Code
  2020 met volgende afwijkingen:

1. Géén 'relationship agreement' met significante aandeelhouder(s)

1. Géén vergoeding van bestuurders in aandelen

1. Géén minimum aantal aandelen dat door het management dient aangehouden te worden.

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REMAINING ON TRACK TO DELIVER

What we aim to represent, for our …

CUSTOMERS		A preferred partner ...
	who delivers outcomes that matter

EMPLOYEES		OUR Barco ...
	Inspiring, Engaging, Energizing

INVESTORS		An asset ...
	with attractive return and purpose

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Q&A

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THANK YOU

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