Barco N : Annual report 2020 (EN)

Barco N : Annual report 2020 (EN)

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February 11, 2021 at 04:11 am EST

2020 Integrated annual report

barco.com

ENABLING BRIGHT OUTCOMES

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Table of contents

01 Barco at a glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

On the road to integrated reporting . . . . . . . . . . . . . . . . . . . . . 3

Message from the CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Key ﬁgures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

02 Our company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Our mission statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Our organisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. 1

Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Culture & ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

03 How we create value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Value creation model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

04 Shaping our strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

On a mission to enabling bright outcomes . . . . . . . . . . . . . 23

Four strategic levers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Keeping our strategy in shape . . . . . . . . . . . . . . . . . . . . . . . . . 29

Materiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Market dynamics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Materiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

05 Our technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

06 Our markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Entertainment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Enterprise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Healthcare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

07 Our results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 5

Group results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Results of the Entertainment division . . . . . . . . . . . . . . . . . . . 65

Results of the Enterprise division . . . . . . . . . . . . . . . . . . . . . . 67

Results of the Healthcare division . . . . . . . . . . . . . . . . . . . . . . 69

All deﬁnitions for alternative performance measures (APM's) as used in this report are available in the glossary as available on Barco's investor portal and in Annex of the Annual Report

This is the core section of Barco's 2020 integrated annual report. Other sections are available via the download center at ir.barco.com/2020.

CORE

• Governance & risk report
• Report on planet - people - communities
• Financial report

ANNEX

• Assurance report
• GRI Content index
• Glossary

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On the road to integrated reporting

Since 2017, Barco has been on a mission to enable bright outcomes . In line with that mission, we are happy to present our very ﬁrst integrated report . It highlights our commit- ment to ﬁnancial as well as non-ﬁnancial outcomes, value and impact . Beyond accountability and reporting, we also consider integrated reporting a driving force for value creation and innovation . It will guide us further on our road to enabling bright outcomes - for customers, business partners, employ- ees, shareholders and every other stakeholder .

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Message from the CEO

Dear customers, business partners, employees and shareholders,

A year to forget? An unforgettable year? Whatever option you choose, 2020 was an unprecedented year for each and every one of us .

Just like at many other organizations, the entire Barco team worked extraordinarily hard to navigate the human and busi- ness impacts of the covid-19 crisis . In spite of our eﬀorts and the many measures we took, we could not prevent our results from dropping steeply, as disruptions in our markets knocked demand oﬀ balance . But we are conﬁdently poised for renewed growth when our key markets in their "new normal" become fully active again .

A spirit of agility, creativity and resilience

When we'll look back upon 2020 within a decade, I hope we'll remember how we managed to turn that massive challenge into meaningful choices . To me, what really marked 2020 was the agility, creativity and resilience shown by each of us, indi- vidually and as a company . Many Barco employees shifted from oﬃce to remote working in no time . Others focused on keeping our factories and oﬃces open for business, combining lots of creativity with timely, pragmatic safety protocols . We adjusted cost levels, redeployed teams to respond to market realities and ensured continuity towards our customers, helping them navigate through the market shocks .

What really marked 2020 was the agility, creativity and resilience shown by each of us, individually and as a company .

Building on solid foundations 2020 conﬁrmed the importance of a strong company culture .

Our values, beliefs and attitude have guided us through the crisis .

Of course, it takes more than that to keep a business sailing through the heavy winds 2020 brought . While we were ini- tially preparing for strong growth in 2020, the Barco ship was also ready for rough weather when the coronavirus hit, as we are a ﬁt and lean company . Between 2016 and 2019, we had intensively focused on performance, boosting operational and commercial excellence, ensuring cost eﬃciency and building out our commercial footprint while we shaped our organiza- tion, product portfolio and product-market strategies . In last year's annual report, I wrote how pleased I was that Barco had a healthy, resilient platform for future growth . While the covid- 19 virus left no room for growth, these solid foundations did support us in these heavy winds .

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Recipe for recovery

Facing head- as well as tailwinds

All three Barco markets have been impacted by the covid-19 crisis, with varying degrees of severity . We experienced some tailwinds but many headwinds . As cinemas closed down and events got cancelled, our Entertainment business faced sig- niﬁcant downturn . In Healthcare, the pressure on hospitals initially sent demand for our diagnostic displays and remote diagnostic tools soaring . This growth, however, was oﬀset by lower demand for healthcare solutions in the second half of the year, as elective procedures in hospitals were postponed .

Enterprise sales also declined as oﬃces locked down, but began to show signs of recovery with steady progress in the second half of the year .

We are confident that we will harvest the fruits of that approach . After all, our markets hold promising opportunities for growth in 2021 and beyond:

• Our strong healthcare visualization solutions perfectly cater to the need for increased care capacity and to elective surgery once it returns to normal levels;
• Clickshare Conference meets the needs of corporates who are now looking for the right technology to enable their hybrid workplaces;
• Our next-generation laser projection technologies will help cinema exhibitors diﬀerentiate themselves from the competition while saving costs .

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This Integrated report underlines the fact that sustainability-linked factors are just as important as ﬁnancial factors in helping us create value .

cation to sustainability, we replaced our familiar Annual and Sustainability reports by this Integrated report . It underlines the fact that sustainability-linked factors are just as important as ﬁnancial factors in determining our performance and helping us create value .

Navigating through the crisis: defense and oﬀense

Facing diminishing sales in a number of our markets, we decided to combine both oﬀensive and defensive plays during the crisis . Variable cost structures, cost control measures and government support all helped keep our business running . To ensure a strong rebound from the downturn - or rather, to make sure we emerge from the pandemic even stronger - we kept investing in research and development, continued to launch new products and stepped up well deﬁned investments in customer engagement in 2020 .

To ensure we'd emerge even stronger from the downturn we kept investing in research and development, kept launching new products and invested big in customer engagement in 2020 .

In addition, we have reinforced our commercial footprint and our In China For China position, thus increasing our competi- tive strength across the globe . Last but not least, the covid-19 crisis has pushed Barco to operate in new ways, accelerating digitization . We're shifting gears in that respect too . By wel- coming Marc Spenlé, our new Chief Digital and Information Oﬃcer, as well several other new colleagues with seasoned technology experience and skills, we will create value through digital innovation .

Continued focus on sustainability

While 2020 was a very diﬀerent year for our entire business, Barco stuck to its sustainability commitments . Since 2017, when we decided to integrate sustainability into every aspect of our business, sustainability has been increasingly pervad- ing everything that Barco does . In 2020, we made progress in various new domains and reached our 2020 targets for 'planet', among other achievements . To highlight our dedi-

Thank you!

This year, more than ever, I want to close my message with a big thank you . Thanks to all our colleagues who adapted rapidly to the new reality . Thank you to our clients, suppli- ers, investors and our Board of Directors, for supporting us and maintaining trust in our long-term potential . It has been a tough year and we are not at the end of this marathon yet, but we look towards the future with conﬁdence and are com- mitted to keeping Barco's performance on track .

Thanks for you continued support .

Jan De Witte

CEO

Since the outbreak of the covid-19 pandemic, we at Barco have been continuously adjusting to face the challenges posed by the virus . Read more about our approach

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JANUARY

Demetra wins Henry van de Velde

Gold Award for Business Innovation 2020

More than revolutionizing skin imaging, our Demetra platform also excels in design . We were honored to receive Belgium's most prestigious design recognition - the Henry van de Velde Gold Award in 2020 .

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FEBRUARY

New ClickShare Conference brings wireless conferencing to the workplace

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MARCH

Barco stays open for business - also during the covid-19 pandemic

Throughout the covid-19 crisis, Barco focused on business continuity, keeping our production operational, reaching out to customers and implementing strict measures to safeguard the well-being of our people .

JANUARY

Traﬃc management center keeps 335,000 vehicles moving 24/7 at the Frankfurter Kreuz interchange

At the Hessen Traﬃc Center in Germany, a giant Barco UniSee LCD video wall (39 panels) provides a continuous overview of the traﬃc on no less than 2,000 km of highway . Our TransForm N controller secures the collection and distribution of all media sources to all the workstations .

The new ClickShare Conference works seamlessly - and wirelessly - together with videoconferencing software and any type of meeting room hardware to make remote meetings truly intuitive - just what users need in today's hybrid workplace .

JUNE

New presentation switcher meets the needs of both live events industry and corporate meeting spaces

The PDS-4K full-screen presentation switcher is a new member of our industry-leading image processing platform . More than ensuring high-quality visual experiences, it also responds to users' demands for ﬂexible, long-lasting and easy-to-use solutions .

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SEPTEMBER

Revealing immersive showpiece with Culturespaces: Bassins de Lumières

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SEPTEMBER

Achieving our ﬁrst target to reduce carbon footprint of own operations one year in advance

In 2016, Barco had set a number of ambitious sustainability goals to be achieved by 2020 . Thanks to our dedication to sustainability, we reduced the carbon footprint of our own operations by 20% in 2019, achieving our target one year in advance .

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OCTOBER

Enabling virtual presence for the digital operating room with Caresyntax

Together with Caresyntax, our Healthcare division launched a virtual presence technology for the digital operation room, meeting the global surge of remote work and remote collaboration .

In Bordeaux (France), Culturespaces opened Bas-sins de Lumières: an amazing exposition that brings the ﬁne art of Gustav Klimt and Paul Klee to life in a former World War II submarine base - thanks to over 100 Barco projectors .

OCTOBER - OUTCOMES

Barco Insights: broadening our IoT-platform for projectors

No complex setup or network conﬁguration, no local host PC and no software to install: Barco Insights, our new IoT-enabled cloud platform, makes the remote monitoring and serviceability of projectors easy .

NOVEMBER

Virtual classrooms: delivering world-class business education

When Mays Business School at Texas A&M University (US) decided to embrace online teaching, they chose weConnect . "Unlike other solutions, this is really a teaching platform . It lets me truly engage with participants," said senior advisor Jared Bleak .

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Our company

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Barco's mission is to enable bright outcomes by transforming content into insight and emotion.

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Our mission statement

Imagine a way to see, sense, and share the intangible . It's what happens when big data becomes knowledge . When images become insight . And when experiences come to life .

That's what Barco is all about . In a world where data and rich content are expanding exponentially, we empower you with inspired sight, sound and sharing solutions to help you make meaningful connections .

For us, it's you - our customer - that counts . We help you achieve your goals, whether it's protecting the health and safety of millions, creating unforgettable experiences, or sup- porting people to work smarter together . We help you get the most out of what you do every day . So together, we create brighter outcomes, around the world .

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Geographical footprint

The people of Barco

AMERICAS

• Brazil
• Canada
• Colombia
• Mexico
• United States

ASIA-PACIFIC

• Australia
• China
• Hong Kong
• India
• Japan
• Malaysia
• Singapore
• South Korea

• Taiwan

EUROPE & MIDDLE EAST

• Belgium
• France
• Germany
• Italy
• The Netherlands
• Norway
• Poland
• Russia
• Spain
• Sweden
• Turkey
• United Arab Emirates

• United Kingdom

Sites

R&D and/or manufacturing facilities

Our people are the driving force to our success . A team of over 3,300 employees, located around the globe, all join forces to enable bright outcomes;

Number of employees

2018 3,664

2019 3,636

2020

GenderGeographicalPer functional group

3,303

72% male 28% female

12.1% The Americas 33.5% Asia-Paciﬁc 54.4% EMEA

7.5% Administration

0.7% Customer projects

8.9% Customer service

4.9% Marketing

29.6% Manufacturing & logistics

1.8% Procurement

1.4% Quality, supply chain & support

28.5% Research & development

16.7% Sales

Reported in heads, excluding temporary workforce (Database Corporate Associates per 31/12/2020)

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Leadership

Barco believes that the role of its leadership team and its Board of Directors is not only to protect the corporation but also to ensure that Barco is able to create value for society at large .

While Barco's Board of Directors sets, steers and monitors our strategic direction, our Core Leadership Team ('CLT') is responsible for implementing our group strategy and policies and achieving our objectives and results . In this way, all gover- nance bodies contribute to value creation at Barco .

MATERIAL TOPICS

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Board of Directors

The composition of the Board of Directors meets the gender diversity requirements . All directors hold or have held senior positions in leading international companies or organizations .

In 2020, Mr Luc Missorten resigned from the Board of Direc-tors, reducing the number of Board members from 7 to 6 .

Directors with 5 years of seniority

Charles Beauduin Chairman

Jan De Witte CEO

Frank Donck

Female members of the Board

Ashok K. Jain

Hilde Laga

See our Corporate Governance section for the biographies .

An Steegen

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Our Core Leadership Team

The CLT, which operates under the chairmanship of the Chief Executive Oﬃcer, comprises key oﬃcers from functions, busi- nesses and regions .

Jan De Witte CEO

Wim Buyens CEO Cinionic

Anthony Huyghebaert, Marc Spenlé and Kenneth Wang are the new faces in Barco's CLT in 2021 .

Olivier Croly APAC

Gerwin Damberg

Chief Technology Oﬃcer

Ann Desender

Chief Financial OﬃcerCLT members with 5 years of Barco seniority

Female CLT member

Stijn Henderickx EMEA

George Stromeyer GM Enterprise

Anthony Huyghebaert Chief HR Oﬃcer

Iain Urquhart Americas

Rob Jonckheere Global Operations

Nicolas Vanden Abeele GM Entertainment

Filip Pintelon GM Healthcare

Kurt Verheggen General Counsel

Marc Spenlé Chief Digital & Information Oﬃcer

Kenneth Wang MD Barco China

Non-Belgian CLT members

See our Corporate Gover-nance for the biographies and the description of the changes in the CLT .

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Culture & ethics

Every organization has a culture; implicit or explicit . It is its personality - a set of unwritten rules on how an organiza- tion behaves . And it reveals itself in many diﬀerent forms . In 2019, Barco rejuvenated its corporate culture, deﬁning the cultural traits that Barco must embrace to continue leading in its dynamic markets . For years, ethical behavior has been deeply embedded in the Barco culture .

Barco culture: how we live our DNA

Corporate culture is everywhere . It comes alive in how we act towards our customers and how we talk and listen to them . It becomes visible in the way we design our processes: have we designed them from our perspective or from the perspectives of those who are aﬀected by them? It guides us in creating teams, but also in how we treat each other as team members . Culture even comes alive in our decision of how to greet each other in the morning . And above all, it deﬁnes how we execute our strategy . Culture is how we live our DNA .

To come to a common understanding of the culture we envision, we have looked inside the company and reverse engineered the Barco culture . This 'meeting of minds' has crystallized into how we can live our DNA with 5 building blocks as the key elements of our Barco culture .

Read more on Barco's risk management

Macroeconomic, geopolitics and market

TrendMaterial topics

• Market reach
• Brand

Information security

• Information security and data protection
• Product quality, safety and security

Strategic levers

• Focus on performance

• Focus on performance
• Go for sustainable impact

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Our technology

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Our technology

Barco is and has always been a true technology company .

Building on decades of experience and expertise in imaging and visualization, we continue to invest strong (on average 11% to 12% of turnover) in R&D in order to meet the rapidly evolving market demands . A disciplined and well-governed approach ensures that our innovation eﬀorts pay oﬀ and can be turned into commercial reality .

Technology: approach

Successful innovation is innovation that creates both value for the customer and true business value . Barco increasingly adopts a disciplined approach to innovation, ensuring that our ideas are tightly connected to our strategy and can be turned into both revenue growth potential and brighter outcomes for our customers .

Today's accelerating digital market requires us to move in a really fast and focused manner on product development - and that requires a disciplined, well- governed approach to innovation .

MATERIAL TOPICS

Gerwin Damberg

Barco CTO

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INTERVIEW WITH GERWIN DAMBERG, CHIEF TECHNOLOGY OFFICER

Innovate for impact: how do we do that at Barco?

Barco has adopted an increasingly disciplined approach to investing in innovation in order to balance risk and poten- tial returns . Part of the innovation process is validating that our programs and initiatives are focused on uncovering and solving real customer pain points, have a clear path to revenue growth potential

and are tightly connected to our technology strat- egy . CTO Gerwin Damberg explains .

In 2019, Barco reviewed its technology portfolio. Why the change?

While hardware-centric solutions such as display

Fast-paced and focused innovation in product development requires a disciplined, well-governed approach to innovation investments across time horizons .

and projection applications are still at the core of many of our businesses, connectivity, workﬂow improvements and content insights are becoming increasingly important in almost all of Barco's product oﬀerings . As such, Barco took action to broaden and deepen our expertise in some of the younger ﬁelds such as computational optics and photonics as well as rendering, parallel computing, and machine learning . In 2019 we took the strategic decision to review our technology tool chest and include a broader range of building blocks to cover all those enabling technologies . This was complemented with some ﬁnetuning of our overall approach to innovation to link new ideas even closer to customer and business . 2020 of course was a challenging year, but in spite of the changes in some of our markets we were able to accelerate the innovation pace to come out as a stronger technology company when the markets bounce back .

What's new in Barco's approach to innovation?

Barco as a technology company invests generously in inno- vation: every year more than 10% of our top-line sales are reinvested in R&D . Yet, fast-paced and focused innovation in product development requires a disciplined, well-governed approach

to innovation investments, especially for early innova- tion . So, we took a step back and thought about how to approach R&D and tackle innovation at Barco in a more structured way, both for our existing portfolio and for the brand-new technolo- gies, solutions and services

in the works . When it comes to the latter, we want to instill elements of a start-up and VC-like investment mentality .

What marks a start-up approach?

Start-ups need investors, so they adopt a holistic approach to innovation . First, they gauge the desires of the customer, exploring what the customer really needs, what problem(s) need solving . You'd be surprised at how much customer needs can diﬀer from the features that tech innovators have in mind! A second criterium is early validation points of business value: how can this idea can help us grow our company? Last but not least, new ideas have to be technologically feasible and align with the overall Barco strategy .

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In 2020, we rolled out an innovation approach that takes into account these steps: innovators come up with an idea and pitch it, we check if it ticks all the boxes (desirability, viability, feasibility and strategy) and only then will we work on a proof of concept in Barco Labs . The next, sometimes challenging step is to maintain this startup pace and mentality all the way through the diﬀerent growth stages until an initiative is suc- cessful enough to stand on its own feet or as part of a product division .

How does this approach diﬀer from innovation of existing solutions?

When upgrading existing solutions or adding new solutions to an existing stack, you build on a lot of experience, existing cus-tomers and well-known expectations . The most

To remain a technology leader, we have to approach innovation more systematically, always keeping the customer and business value in mind from the moment our innovation ideas surface .

important thing here is not to fall into the trap of investing too heavily in product maintenance and updates but maintain a fast pace in evolving and disrupting our own product portfolios .

We have to keep challenging ourselves to prevent competitors from passing us: we encourage our teams to identify disruptive solutions to our own product lines .

Does Barco need new technology skills to retain the innovation dynamics?

When I joined Barco, I was impressed with the broad technol- ogy expertise present across the company . We can tap into a wide pool of engineers with deep expertise, particularly in dis- play, projection, networking and imaging technology . In other ﬁelds there is a lot of healthy curiosity and eagerness to learn .

So, we're harnessing all our in-house talent and scout- ing for new people across

all our technology domains, with a focus on new ﬁelds like computational optics or video analytics .

How do you see Barco developing in the coming ﬁve years?

Our goal is to remain a global technology leader that delivers innovation with

impact . To achieve that, we approach innovation much more systematically, always keeping the customer and business value in mind from the moment our innovation ideas surface . The steps we have taken in the past year are a solid starting point .

If we continue along this road, we will be able to innovate for true impact and enable ever-brighter outcomes for our employees, our customers and our investors!

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Technology: domains

In 2019, Barco reorganized its technology map . Four key domains now form the foundation for Barco's innovation for impact in the future .

Advanced display & projection

The display and projection technology that lies at the heart of Barco's visualization solu- tions include optics, electronics and signal processing, manufacturing and calibration techniques related to projection systems and direct view display technologies, including LCD and LED . This advanced technology powers a wide range of advanced display solutions for use in demanding markets - from cinema projectors and high-resolu- tion medical displays to video walls for large screen visualization .

Image processing & insights

Professional visualization requires both classical image processing algorithms and data-driven approaches . Barco's 'image pro- cessing & insights' technology domain covers image and video capture, enhancements, processing, understanding and rendering as well as techniques to enhance human-ma- chine interaction . Increasingly important is the implementation of high-performance software solutions on modern hardware such as graphics processing units .

Connectivity & data analytics

Technology that enables connectivity is at the core of Barco's visualization solutions, as it allows the real-time monitoring of devices or the local or remote streaming of audio and video data . The connectivity platforms that power Barco solutions are always highly optimized for the professional application at hand, whether that is live entertainment, diagnosis or surgery in healthcare settings or sharing content in the workplace . On top of enabling connectivity, Barco increasingly helps customers understand the data trans- mitted, thus providing trustworthy, actionable insights and boosting productivity, collabora- tion and engagement .

Computational optics

Computational optical technology exploits the properties of light to enable visual experiences that cannot be delivered using traditional optical systems alone . This tech- nology opens the door to a spectrum of new solutions with functionalities or value that cannot be delivered by other visualiza- tion or imaging techniques . Examples include Demetra, Barco's multispectral skin imaging platform and the high dynamic range (HDR) light-steering technology that uses real-time programmable lasers and lenses to shape light into high-contrast, high-brightness images on screen .

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Our markets

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Our markets

Barco's business activities focus on three core markets: Enter- prise, Healthcare and Entertainment, which are managed in three diﬀerent divisions . While each division has its own goals, targets and focus areas, they are all committed to Barco's corporate strategy - in order the enable bright outcomes .

Sales per divisionEntertainment division

MATERIAL TOPICS

Enterprise division

Healthcare division

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Entertainment

Creating moments, enriching lives

Whether in cinemas, concert halls or museums; at theme parks, music festivals or corporate events: Barco's enter-tainment solutions are designed to turn heads and create compelling moments . By providing our customers with the most advanced projectors, LED displays and image processing solutions, we help them capture fans rather than audiences .

Our increasing focus on convenience and services further helps them build that fan base and grow their businesses .

Respective weight in the group 2020 salesApproximate subsegment distribution based on sales

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AN INTERVIEW WITH NICOLAS VANDEN ABEELE, GENERAL MANAGER ENTERTAINMENT

People will always want to be entertained. We are in pole position to cater to those needs

When the covid-19 pandemic impacted every industry in 2020, it sent - and continues to send - immense earthquakes through the entertainment world . "2020 was a reset," says Nicolas Vanden Abeele, General Manager of our Entertainment division, but he sees many prospects for the future .

You joined Barco at the end of 2017 with a clear ambition to boost topline growth. What were your focal points?

Well, 2018 was a milestone year as it marked the launch of Cinionic . All our cinema-related sales and services activities are now delivered through the sub- sidiary, which is totally dedicated to the cinema market . Thanks

to Cinionic, we have been able to strengthen our ties with our cinema customer/partners and excel in what we do best: selling and servicing our projectors, and developing our new businesses . For Venues & Hospitality, our other entertainment markets, we sharpened our go-to-market strategy and made clear portfolio

In spite of the current challenges, we keep investing in technology - and ever more services - to retain our market leadership .

choices . All these decisions led to solid growth for cinema, Venues & Hospitality in 2019 - which gave us the resilience to survive the challenging year of 2020 .

With many movie theaters still closed and events cancelled, what is the way forward?

We ﬁrmly believe that our markets are resilient and we expect to see the start of the bounce back in 2021, and that Barco

has a leading role to play in entertainment . So, in spite of the challenges, we keep investing big in technology to retain our market leadership . Our laser projection portfolio, for exam- ple, is unequaled in the world . In 2020, we further stepped up our laser oﬀering with the Series 4 cinema projectors . In addition, we expanded our popular and versatile UDX and UDM laser phosphor platforms for Venues & Hospitality . That portfolio is also now the broadest on the market . In addi-tion, we keep upgrading our image processing solutions and launching services to make our customers' lives easier .

Insights, the IoT-enabled projec- tor management platform that we introduced in 2020, is a perfect

example of that .

What about technologies that are relatively new to Barco, like LED and light steering?

Here, too: as a technology leader, we must keep innovating - even in challenging times . That's why we are building further on our

partnership with Unilumen to drive our LED eﬀorts forward . I see opportunities for LED in many places, yet our main focus is now on large video walls, while we will also explore LED in cinema . Moreover, we are keeping up our research eﬀorts in HDR light steering technology, as it has huge potential to completely overhaul the cinema experience and set the new standard for cinema . There is a lot more to come on HDR light steering in 2021 and 2022 .

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With the meteoric rise of streaming, does cinema still have a future?

Cinema is here to stay . After all, it is the most aﬀordable out- side-of-home entertainment experience and completely diﬀerent than streaming a ﬁlm from home . Yet, when people go to the movies, they expect a premium experience - so exhib- itors must ensure outstanding image quality, among other

Where do you see the Entertainment business in three years?

Our strategy still stands: after this crisis, people will want to be entertained again and our entertainment markets are resilient . In cinema, I expect a delay of one to two years: the replacement wave that had started in 2019 will resume by late 2021 ., We expect events and hospitality to pick up somewhat

things, to diﬀerentiate themselves from home entertainment . Of course, when cinemas reopen, streaming will coexist . But it's an and-and story, not an or-or story .

Chinese cinemas opened pretty quickly after the lockdown. Is China a focus market for the Entertainment division?

China and the entire Asian continent will be a growth driver in the coming years, for cinema as well as for venues and hospitality .

The covid-19 pandemic battered China's movie industry in early 2020, but rebounded strongly in the second half of the year . We expect the same to happen around the world: the movie industry's revenue will rebound over 2021 and we expect strong growth to previous levels in 2022 . That said, in China, the cinema market has been in transition for a while, with growth shifting to multiplexes in smaller cities . The potential for Barco remains big, though, both for replacement and for new projectors . Our 'in China for China' strategy, which helps us strengthen our sales, R&D and manufacturing capabilities in this country, helps us to further capitalize on those oppor- tunities . China and the entire Asian continent will be a growth driver for Barco in the coming years, for cinema as well as for events and hospitality .

sooner, particularly the ﬁxed install market and markets in China and the APAC region . What I do know is that the winners of this crisis will be the companies that are able to leverage their oﬀerings to deliver distinct entertainment

experiences at competitive cost . In addition, the number of hybrid events is sure to climb . Barco is in pole position to cater to all these trends . So, we'll keep investing in state-of-the-art projectors with a focus on laser and the 4K series, in our outstanding imaging solutions, and in ever more services to help Barco and our customers stay ahead of the curve - while strictly managing cost, of course . 2020 has shown us that we must never lose our focus on growth and performance .

The winners of this crisis will be the companies that are able to leverage their oﬀerings to deliver distinct entertainment experiences .

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AN INTERVIEW WITH WIM BUYENS, CEO CINIONIC

We keep investing in technologies, services and customer intimacy to ensure we're at the forefront when the market recovers

'Helping cinema exhibitors deliver a world-class cinema expe- rience': that is the mission of Cinionic, the cinema joint venture of Barco that was launched in 2018 . How does the company progress on that mission in times of crisis, and does the covid- 19 pandemic change the future of cinema? We asked CEO Wim Buyens .

2019, Cinionic's ﬁrst full year in business was a milestone year. What were the keys to that kick-start?

2019 was characterized by strong frame agreements globally driven by the renewal wave in cinema . Barco had proactively invested in laser technology, leading to a wide portfolio of high-quality laser projectors . The beneﬁts of laser are multiple, including reduced cost of ownership over the pro- jector lifetime and increased sustainability, as no more lamps are needed . This resulted in a commitment from the cinema

We stay focused and keep our eyes on the ball, that being our customers and their ecosystems . Our number 1 priority is to stay in close touch with our customers through our compelling thought leadership, to act as a trusted partner and prepare together for the moment when the market picks up again . In fact, our most valuable asset, especially in times like these, is our people . They make a diﬀerence with their deep industry knowledge and their ﬂexibility in thinking outside the box . We launched new prod-

Our number 1 priority is to stay in close touch with our customers, to act as a trusted partner and prepare together for the moment when the market picks up again .

exhibitors in 2019 and early 2020 as part of trusted long-term partnerships . A strong course was set - and then the pan- demic hit .

How do you respond to a crisis this overwhelming?

ucts and service solutions and introduced cutting-edge business models to cater to evolving mar- ket needs .

The cinema market will have to change to conform to new realities, won't it?

The covid-19 crisis has acceler- ated a series of changes that were bound to happen . The shrinkingof the theatrical release window is one example . In the past, theaters had an exclusivity window of more than 90 days before a movie could be released in the homes . Dynamic the- atrical windows will be more beneﬁcial for all parties involved and more sustainable .

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Going to the movies must be a really exciting night out, hence the importance of delivering a premium cinema experience .

How big a threat is streaming?

Streaming is a new trend in the consumption of entertainment content, but it is not a threat to cinema . People cook dinners at home but still go to restaurants because it is a totally diﬀerent experience . The same comparison can be made for streaming versus cinema . When the lockdowns end, people will be crav- ing out-of-home entertainment and social contact . Cinemas will, however, have to reinvent themselves to motivate people to get oﬀ of their couches . Going to the movies must be a really exciting night out, hence the importance of delivering a premium cinema experience .

How does Cinionic cater to that trend?

We can deliver technology and services for the full premium cinema experience based on bright laser technology and immersive sound for every size of screen . In addition, we oﬀer exhibitors ﬂexible ﬁnancing, ranging from upfront payment and

vendor ﬁnancing to monthly installments, thus providing peace of mind . This model also works for so-called micro-cinemas to deliver a boutique cinema experience where moviegoers can watch content on demand with their friends or families ".

Is the market ready for these business models?

The cinema market has traditionally been a conservative market . It took some time for customers to embrace laser-as-a- service, but it is now gaining momentum . The same thing goes for our other cinema- and premium-as-a-service solutions . The changed market reality has resulted in huge beneﬁts for the exhibitor . Cinionic is leading with a major shift in the industry, which I believe is a crucial, valuable investment in our future ".

How will that future look for Cinionic and your customers?

People want to consume entertainment outside of their homes, so the moviegoing business will recover . Once it bounces back, 100,000 screens will be ready for a technol- ogy renewal . By staying close to the cinema industry and its ecosystem, we will be ready to deliver renewed innovative experiences . The key for all of us right now is to be patient, stay hungry and remain innovative…

A short recap: why Cinionic?

Wim Buyens: "Over the past few years, the cinema market has been changing rapidly . It switched from analog to digital, reaching full digital conversion . We understood that the future of cinema would be completely diﬀerent .

Innovative cinema technologies at a low cost of own- ership were a must to provide the audience with wow experiences in a post-VPF (Virtual Print Fee) world .

While Barco had been delivering state-of-the-art digital cinema projectors for over decades, we knew we had to expand the product oﬀering with a full solutions and services approach . In other words: we needed new busi- ness models too . That's why Cinionic was born ".

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Enterprise

Engaging you to unleash the power of shared knowledge

Every Barco enterprise solution is designed to help people collaborate better by ensuring engaging experiences . From boardrooms and workplaces to control rooms and classrooms: all our solutions help people unleash the power of shared knowledge - for brighter ideas and, ultimately, better results .

Respective weight in the group 2020 salesApproximate subsegment distribution based on sales

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AN INTERVIEW WITH GEORGE STROMEYER

With a focus on 'collaboration' and 'connectivity', our solutions are more than relevant in the new, hybrid normal

Enabling collaboration in order to improve productivity: that is at the core of everything our Enterprise division does . In 2020, the word 'collaboration' got a whole new dimension, as meeting rooms and classrooms moved to bedrooms and living rooms . Is our Enterprise team ready to facilitate collabo- ration in the new normal? We asked general manager George Stromeyer .

The covid-19 crisis accelerated the need for collaboration - and in new forms. Is that good news for the Enterprise division?

In the past few years, we have finetuned our purpose and strategy as well as our product portfolio . And indeed, collab-

The pandemic has now accelerated the need for remote and hybrid collaboration . That is right up our alley .

oration with enhanced visualization is really at the core of our business - in workplaces as well as in classrooms and control rooms . The pandemic has now accelerated the need for remote and hybrid collaboration . That too, is right up our alley, as our solutions include (cloud) connectivity to provide the enterprise market with more engaging and futureproof collaboration experiences . So, in fact, the crisis validated our business: all that we do is really relevant .

Nevertheless, 2020 was challenging, wasn't it?

We can't look away from the impact of the crisis . No mat- ter how relevant our oﬀering is, as oﬃces closed, demand for our ClickShare presentation system plummeted . That is tough, as ClickShare has been the star of our business for years . ClickShare Conference, the brand-new wireless con- ferencing system that that we had announced in early 2020, was, we have to admit, a bit slow oﬀ the

mark with covid-19 being thrown in the game . It is an ideal solution for uniﬁed communications and collaboration and for hybrid meet- ings but it was ready for launch just when the pandemic hit and everyone started to work from home . . .

The ease of accommodating hybrid meetings must hold huge potential for the future of ClickShare Conference?

The product is really fantastic and interest clearly rose when people started returning to their oﬃces . The market is pretty crowded: many organizations are jumping on this opportu- nity, including the world's leading tech companies . There is, however, deﬁnitely a place for ClickShare Conference in the market . Its major trump card is that it's technology agnostic: it works seamlessly with all major collaboration platforms and together with most meeting room peripherals, such as micro- phones, displays, etc ., We're building an ecosystem around it in order to broaden our reach . In addition, just like ClickShare, ClickShare Conference ensures an awesome user experience, which is simply essential for a successful workplace solution .

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While business picked up more slowly than we had hoped, 2020 was marked by several very prominent wins which are making us a reference in this market . Let me highlight that weConnect doesn't target high schools and universities but rather business schools and corporate learning and develop- ment centers . There too, it was all hands-on deck to switch to remote learning in record time . We expect demand for weConnect to pick up in the post-pandemic world, when people are looking for a remote learning solution that really replicates the classroom and enables true interaction between teachers and students .

What about the control room business, how did that fare in 2020?

We had returned to proﬁtability in 2019, thanks to a sharp focus on performance and the success of professional-quality products like the UniSee LCD video wall . In this market, our triple-play display strategy is key: by combining our existing rear-projection oﬀering with LCD and LED, we can address all market segments and tech- nology preferences . In 2020, the control room business was more

resilient than we had expected . Projects were pushed out in time or reduced in scope but not cancelled . We even managed to gain market share - and are determined to fuel that trend . For example, in China we delivered

The main action point is to do more with what we have and shape our own destiny .

our largest by far deployment of OpSpace operator work- stations for a large new airport control center . And the new solutions that we launched for control rooms, like WallConnect and Secure Stream, help us extend our oﬀering: they meet demand for remote display management .

'Remote' is also the new normal in education now. Did weConnect gain traction?

In summary: the potential and opportunities look huge. How do you want to capitalize on them?

The main action point is to do more with what we have . We have a great, broad and relevant portfolio of top-notch solutions and services, so there's an oﬀer for every need and preference . Of course, we'll keep investing in these . Exciting new products for the control rooms market are planned for the ﬁrst half of 2021, for example . But in addition, we have to advance sales and marketing by shifting

our commercial skills to higher levels, widening our markets to include the workplace experience, embracing an omnichannel busi- ness model, tapping into virtual selling to improve our go-to-mar- ket, etc . Between 2018 and 2020,

we mapped the customer journey, so we know how we can further elevate customer satisfaction . That will also be a focus moving forward . In addition, we will accelerate our work on outcome-based solutions . We've taken steps forward in all these ﬁelds in the past but accelerating these initiatives will deﬁnitely help us seize the opportunities of the new, hybrid normal .

Just like ClickShare, ClickShare

Conference ensures an awesome user experience, which is simply essential for a successful workplace solution .

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Healthcare

Enabling better healthcare outcomes for more people

We connect healthcare professionals at almost every patient touch point, from the imaging room, to radiology, during specialist consultations and in the surgical suite . By providing medical staﬀ with the complete and most accurate picture, we enable more informed decisions, when and where it mat- ters most .

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How did the pandemic impact Barco's healthcare business?

FILIP PINTELON, GENERAL MANAGER OF BARCO HEALTHCARE SHARES HIS VISION AND FUTURE OUTLOOK

We have all the right solutions and services to prosper in a post-pandemic world

Much more than being a display manufacturer, our Health- care division is committed to helping solve healthcare issues . Never before has this mission sounded more relevant than it was in 2020 . When the covid-19 crisis hit, part of the business increased sharply, yet another part suﬀered . General manager Filip Pintelon is conﬁdent about the future, though: "This cri- sis created new opportunities to innovate and new ways to create value in this evolving healthcare

world ".

Well, initially demand for our diagnostic display systems sky- rocketed as hospitals converted ﬂoors or even operating rooms into dedicated units for covid-19 patients . The upsurge took us by surprise and components were hard to get, yet we successfully

For a couple of years, we'd seen a growing trend for radiologists in the US to read medical images from home . When covid-19 hit, European radiologists quickly embraced our solution .

met the needs of our customers thanks to the resilience and ﬂexibility of everyone involved in our supply chain . In the meantime, demand for our mammography displays and modality solutions declined . That trend persisted through- out the third quarter due to strained hospital ﬁnances and a sharp drop in volumes of surgery procedures and diagnostic screenings . On the other hand, as many radiologists started working from home, there was an upswing in demand for the remote radiology reading solution we had launched in 2019 .

2019, a year before the teleworking trend?

In the US, a growing number of radiologists were already read- ing medical images from home in 2019 . To respond to their needs, we built a solution based on an innovative graphics box that ensures the same quality, security and performance radiologists get inside the hospital reading room - but at home .

It soon found its way to European radiologists too during the covid- 19 crisis . Today, no one doubts

that this trend is here to stay .

Remote working requires good connectivity, more than good hardware?

We've made giant leaps forward in the ﬁeld of software and services in the past few years . In 2020, we launched three new connected services: Barco DisplayCare and Barco ManagedCare help hospi- tals manage their display ﬂeets via

virtual onboarding, online training sessions, remote support and checks, etc . NexxisCare supports OR integrators in mon- itoring and managing operating rooms remotely .

Talking surgical: in 2018 and 2019 you had high expectations for the surgical business. Did the covid-19 crisis stand in the way?

Our Nexxis digital operating room solution gained global access, but mainly in the fourth quarter . This trend towards

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digital ORs was also accelerated by the pandemic . In the midst of the crisis, operating rooms had to be converted into emergency Covid-19 centers . Hospitals understood that digital ORs are more ﬂexible . Moreover, thanks to our years of solid investments in Nexxis, the healthcare industry sees Barco as the reference when it comes to solutions for the digital OR .

Is China ready for digital ORs as well?

The Chinese healthcare market is booming enormously and looking to upgrade its infrastructure . Our diagnostic business grew, and indeed, our surgical solutions started gaining traction there in 2020 as hospitals are

It sounds like the health crisis created a heap of opportunities for the Healthcare division?

I'd say that it has turbocharged many trends, like the trend towards 'remote everything' . Yet, it also raised a series of con- cerns and awareness around the importance of healthcare . Will authorities prioritize spend in healthcare infrastructure? Will hospitals adapt to this 'new normal' or try to go back to the 'old ways'? Will they remember the importance of ﬂexibility and the need to raise productivity? Barco has the right solutions and services to increase ﬂexibility and productivity, enabling hospitals to respond to the shortage of healthcare workers .

leaning towards digital solutions . .

Opening a healthcare hub in Suzhou was really a smart deci- sion . We'll keep increasing our investments and strengthening our footprint there to support further growth .

Did the division keep its R&D spend up in spite of the crisis?

Opening a healthcare hub in China was a smart decision .

We'll keep increasing our investments and strengthening our footprint there to support further growth .

Absolutely . One result of these eﬀorts is the Nio 12MP that we launched in January 2021 . The new display system is a bit less high-end than Coronis Uniti™ but enables 12MP and multimodality imaging: just what radiologists need to optimize their workﬂows and ensure con- ﬁdent diagnosis . I am sure it will appeal to many radiologists, who are reading more and more images from home . Apart from that, we kept investing in both Synergi™, our cloud-based collaboration technology, and our Demetra skin scanner . 2020 was not the ideal year to commercialize these solutions, but their potential is big in a post-pandemic world . While Synergi™ supports remote collaboration between specialists, the images scanned by Demetra can easily be read by a dermatologist working remotely . In 2021, we absolutely want to sharpen the go-to-market strategy for Demetra and raise awareness around the globe .

What sets Barco apart from its competitors?

We understand the market really well, which is reﬂected in every Barco medical solution . Apart from that, hospitals choose Barco because they love our services . Moreover, we work hard to put our customers at the heart of

everything we do . The eﬀorts that we made to meet peak demand at the start of the crisis, for exam- ple, have helped us build trust and loyalty . You do need solid resources, both the ﬁnancials and the people, to be able to go that extra mile, as well as a great deal of resilience . We are fortunate to have all that . I am sure we'll emerge from this crisis much stronger, leaving quite a few competitors behind us .

We understand the market really well, which is reﬂected in every

Barco medical solution .

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Our results

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Comments on the group results

Sales for the year of € 770 million, EBITDA margin of 7% Encouraging improvements in Q4 across all divisions

Financial highlights ﬁscal year 2020 and 4Q20(1)

• Orders FY20 of € 746.0 million, -32 .3% versus FY19
• Sales FY20 at € 770.1 million, -28 9. % versus FY19
• Year-end orderbook at € 281.5 million down 13% versus FY19
• FY20 EBITDA of € 53.6 million versus € 153 million in 2019
• FY20 EBITDA margin at 7.0% of sales versus 14 .1% in 2019
• FY20 Adjusted EBIT of € 10.2 million, resulting in full year net loss of € -4.4 million, after € 14 .5 million restructuring and impairment charges
• Orders 4Q20 versus 3Q20, increased by +20.3%
• Sales 4Q20 versus 3Q20 increased by +16.7%

(1) All deﬁnitions for alternative performance measures (APM's) are available in the glossary

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Group topline

Sales for the year were € 770 million, down 29%, reﬂecting the covid-19 pandemic impacts on our end-markets across all regions .

Proﬁtability & free cash ﬂow

Gross proﬁt margin for the year declined 3 percentage points to 37% mainly due to unfavorable product mix . As operat- ing expenses for 2020 were managed down to 20% below 2019, while sustaining investments in priority projects, EBITDA amounted to 54 million euro for a 7% EBITDA margin .

Over the second half the company continued to execute on its plan to reset indirect costs for 2021 to levels below 2019, resulting in a full year restructuring and impairment charge of 15 million euro .

Free cash ﬂow for 2020 was -36 million euro, reﬂecting lower EBITDA, cash-outlays associated with the restructuring actions and higher working capital compared to 2019 . Working capital improved in second half versus ﬁrst half, with a second half free cash ﬂow of +15 million euro .

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Outlook 1H21

Dividend

Staying the strategic course

Despite the covid-19 impact, Barco continued to invest in stra- tegic and commercial initiatives, including next generation technologies, channel expansion and building out its China presence . This positions the company to strengthen its lead-ership when markets recover .

Additionally, for 2020, Barco delivered on its sustainability tar- gets: the operations carbon footprint as well as the product energy footprint were reduced by more than the stated goals of -20% and -25% versus the 2015 baseline, and multiple new products with the Barco ECO label rating were launched in each division .

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

Management expects business conditions to be deﬁned by the pandemic for at least the ﬁrst half of the year and therefore does not have visibility to oﬀer quantitative guidance for 2021 at this time .

If we assume a recovery for Entertainment only to start in the second half, a steady dynamic in Healthcare and a stron- ger back-to-oﬃce activity leading to improved demand for ClickShare as of the second quarter, then topline for the ﬁrst semester will move toward the ﬁrst half of last year .

Under this assumption, and given the reset of Barco's cost structure, management expects a mid-plus single digit EBITDA margin for the ﬁrst half of 2021 .

Barco's Board of Directors will propose to the General Assem- bly to distribute a gross dividend of 0 .378 euro per share . Barco's shareholders will be oﬀered the choice between payment in cash or dividend in shares, enabling Barco's share- holders to reinvest in the company .

Chairman of the board, Mr . Charles Beauduin and director, Mr .

Frank Donck, have conﬁrmed the intent of respectively Titan Baratto NV and 3D NV, to opt for the stock dividend .

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Consolidated results for the fiscal year 2020

Order intake

Order book

Order intake was 746 .0 million euro, a decrease of 32% compared to last year reﬂecting material impact of the pandemic in Entertainment as well as in Enterprise, mainly in the Americas and EMEA region . Order intake for Healthcare was ﬂat year-over-year .

Order book at year end was 281 .5 million euro, compared to 322 .2 at FY19 year-end, a decrease of 12 .7% mainly driven by order book decreases in the Entertainment division .

Order intake
IN MILLIONS OF EURO FY20 FY19 CHANGE
Order intake	-32 .3%	746 0.	1,102 .2
Order intake at constant currencies	-31 8. %

Order intake by division
IN MILLIONS OF EURO FY20 FY19 CHANGE
Entertainment	268.7	-45%
Enterprise	215.2	-39%
Healthcare	262.1	+1%
Group	746.0	-32%

Order book

Order intake breakdown by region
IN MILLIONS OF EURO FY20 FY19 CHANGE*
The Americas	39%	-37%
EMEA	35%	-33%
APAC	26%	-23%
Global	100%	-32%

IN MILLIONS OF EURO	31 DEC 2020	31 DEC 2019	CHANGE
Order book	281 5.	322 .3	-12 7. %
* Change in nominal value

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Sales

Full year sales decreased 29% driven by the Entertainment and Enterprise divisions . Healthcare was slightly down mainly as a result of a soft 3rd quarter .

After decreasing 18% in the ﬁrst semester, sales fell 38% in comparison with a strong 2H19, as a result of the global spreading and deepening of the pandemic .

Sales
IN MILLIONS OF EURO FY20 FY19 CHANGE
Order intake	-28 9. %	770 .1	1,082 6.
Order intake at constant currencies	-28 4. %

Sales declined in all regions .

Sales by division
IN MILLIONS OF EURO FY20 FY19 CHANGE
Entertainment	291.4	-36%
Enterprise	216.8	-39%
Healthcare	261.9	-3%
Group	770.1	-29%

Sales by region
IN MILLIONS OF EURO FY20 FY19 CHANGE*
The Americas	39%	-30%
EMEA	36%	-30%
APAC	25%	-24%
Global	100%	-29%

* Change in nominal value

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Proﬁtability

Gross proﬁt

After 5 years of continued proﬁt improvement, gross proﬁt dropped with 34% to 283 .8 million on a sales decline of 29% reﬂecting adverse impacts of the pandemic . Gross proﬁt margin declined 2 .8 percentage points to 36 9. % from 39 .7% last year reﬂecting mainly unfavorable product mix, a spike in logistics cost and indirect overhead weighing on lower volumes .

Indirect expenses & other operating results

Total indirect expenses decreased 17% to 265 .3 million euro compared to 319 .5 million euro a year earlier . The Entertainment and the Enterprise divisions accounted for most of the variance .

As a percentage of sales, indirect expenses were 34 .5% of sales compared to 29 .5% for 2019 .

• Research & development expenses decreased to 102 .6 million euro compared to 119 .4 million euro last year, reﬂecting a more selective approach . As percentage of sales, R&D expenses were 13 .3% compared to 11 .0% a year earlier .
• Sales & marketing expenses decreased to 112 .3 million euro compared to 142 .5 million euro for 2019, in part reﬂecting the impact of the covid-19 pandemic on the company's sales and part reﬂecting actions taken to align spending to revenue generation . As a percent of sales, sales & marketing expenses were 14 .6% of sales compared to 13 .2% in 2019 .
• General & administration expenses amounted to 50 .4 million euro compared to 57 .6 million euro last year and were 6 .5% as a percentage of sales compared to 5 .3% in 2019 .

Other operating results were a negative of 8 .3 million euro versus a positive of 0 .3 million euro in 2019 mainly driven by lower results in the joint venture BarcoCFG and by increased bad debt and other provisions .

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The reduction in operating expenses partially oﬀset the decrease in gross proﬁt and as a result EBITDA was 53 .6 million euro compared to 153 .0 million euro for the prior year, and EBITDA margin was 7 .0% versus 14 .1% for 2019 .

EBITDA margin declined by approximately 10 percentage points in both Entertainment and Enterprise driven by negative operational leverage . Healthcare maintained proﬁtability in line with 2019 .

FY20 IN MILLIONS OF EURO SALES EBITDA EBITDA %
Entertainment	291.4	0.1%
Enterprise	216.8	8.4%
Healthcare	261.9	13.4%
Group	770.1	7.0%

EBITDA by division 2020 versus 2019 is as follows:

IN MILLIONS OF EURO FY20 FY19 CHANGE
Entertainment	0.3	-99.3%
Enterprise	18.2	-75.4%
Healthcare	35.0	-1.9%
Group	53.6	-65.0%

Adjusted EBIT was 10 .2 million euro or 1 .3% of sales compared to 110 .0 million euro, or 10 .2% of sales for 2019 .

As a result of cost adjustment actions in both the ﬁrst half (outsourcing the UniSee LCM-com- ponent and closing the Taiwan factory) and the second half (mainly related to reorganizations in Entertainment and Enterprise), Barco booked 14 .5 million euro restructuring and impairments .

As a result, EBIT was -4 .3 million euro .

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Income taxes

Taxes in 2020 are zero on a pre-tax negative result, compared to an eﬀective tax rate of 18% in 2019 .

Net income

Full year net income attributable to the equity holders was -4 .4 million euro .

Net income per ordinary share (EPS) was -0 .05 euro versus a 1 .09 euro in 2019 . Fully diluted earnings per share were also -0 .05 euro compared to 1 .07 in 2019* .

Cash ﬂow & balance sheet

Free cash ﬂow and working capital

Free cash ﬂow for 2020 was -36 million euro reﬂecting lower EBITDA, cash-outlays associated with the restructuring and working capital, while reduced compared to 1H20, still higher than end of year 2019 at approximately 10% of sales .

IN MILLIONS OF EURO

Gross operating free cash ﬂow

Changes in trade receivables Changes in inventory Changes in trade payables

Other changes in net working capital Change in net working capital

FY20 43.9

FY19 139.8

41.4 -12.3 -59.9 -24 -54.8

-32.2 -33.0 23.4 15.6 -26.1

Net operating free cash ﬂow	-10.8	113.7
Interest income/expense	-0.1	5.8
Income taxes	-10.4	-13.1

Free cash ﬂow from operating activities Purchase of tangible and intangible FA

Proceeds on disposal of tangible and intangible FA

FY18 120.9

-11.2 0.3

-1.3

-12.7 -24.9

96.0 4.3 -12.5

-21.4 -15 0.5

106.4 -20.2 2.4

87.9 -25.6 0.9

Free cash ﬂow from investing FREE CASH FLOW

-14.5 -35.9

-17.8 88.7

-24.7 63.2

* Earnings per share, restated for the stock split as implemented on 1/07/2020 .

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Working capital	Goodwill

Inventory + Accounts Receivables - Accounts Payables over sales was 32 6. % compared to 21 .7% in 2019 . Net working capital was 10% of sales compared to 3% in 2019 .

Goodwill on group level remained at 105 .6 million euro, equal to the end of 2019 .

While year-end working capital was higher than 2019, it improved relative to 108 million euro at mid-year reﬂecting reduced inventory levels and reduced DSO from 82 days sales outstanding to 67 at the end of the year .

Cash position

Net ﬁnancial cash position, including net cash held in Cinionic, was 193 .5 million euro compared to 329 .4 million euro end of 2019 .

The direct available net cash position amounted to 127 .7 million euro compared to 253 4. million
IN MILLIONS OF EURO	FY20	FY19	FY18
euro last year, reﬂecting negative free cash ﬂow (35 9. million euro), distributed dividends (33 .4
Trade Receivables	146 .1	195 4.	161 8.
million euro), investments (55 .5 million euro) and currency impact .
DSO	67	55	52
Inventory	175 4.	169 0.	135 .1
Inventory turns	2.3	3.2	3.8	These investments are related to acquired minority stakes and are measured at market price .
Trade Payables	-70 .3	-128 9.	-105 .1	The remeasurement at fair value at the end of 2020 amounted to 18 .3 million euro in 2020 and
DPO	53	71	59	is reﬂected in other comprehensive income .
Other Working Capital	-170 6.	-205 .2	-189 .3
TOTAL WORKING CAPITAL	80.6	30.2	2.5
Capital expenditure

Capital expenditure was 15 million euro compared to 20 .2 million euro in 2019 as the company saw the timeline of a number of investment projects or phases pushed out as a result of pan- demic lock-downs and shifted priority on selected projects .

ROCE

ROCE for the year was 3% versus 25% for 2019 .

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Divisional results for the fiscal year 2020

Barco's organizational structure

Barco is a global technology company developing solutions for three main markets, which is also reﬂected in its divisional structure: Entertainment, Enterprise and Healthcare .

• Entertainment: The Entertainment division is the combination of the Cinema and Venues & Hospitality activities, which includes Professional AV, Events and Simulation activities .
• Enterprise: The Enterprise division is the combination of the Control Rooms activities and the Corporate activities . ClickShare is the main contributor to the Corporate activity .
• Healthcare: The Healthcare division includes the activities in Diagnostic Imaging (Diagnostic and Modality Imaging) and in Surgical .

Entertainment division

Enterprise division

Healthcare division

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* Entertainment sales 2018 are restated for BarcoCFG

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Entertainment division

CHANGE VS IN MILLIONS OF EURO FY20 FY19 FY19
Orders	-45 .3%	268 7.
Sales	-36 0. %	291 4.
EBITDA	-99 .3%	0 .3
EBITDA margin	0 .1%

2020 was a reset but we ﬁrmly believe that our markets are resilient and we expect to see the start of the bounce back in 2021 .

Quarter-over-quarter sales

CHANGE 3Q
IN MILLIONS OF EURO	4Q20	3Q20	2Q20	1Q20	VS 4Q
Sales	77 .3	58 0.	56 5.	99 7.	+33 .3%

Nicolas Vanden Abeele GM Barco Entertainment

As a result of contractions in business activity in all regions related to the pandemic beginning in Q2, sales declined 36% for the year .

The fourth quarter topline reﬂects marked recovery mainly driven by projects in the ProAV and Cinema-market led by China .

The Cinema activity accounted for approximately 50% of the divisional sales in 2020 down from 58% in 2019 .

The topline of the Venues and Hospitality subsegments was particularly impacted by weakened demand in the events market resulting from event cancellations related to covid lockdown measures . Barco expanded its product portfolio in the ProAV (ﬁxed install) subsegment with selected product releases, including a new compact laser-based UDM and G-100 series-projector and new LED-solutions . The combination of an expanded product portfolio and an intensiﬁed commercial focus, resulted in a recovery beginning in the third quarter . While sales for the Simulation segment were slightly down, order intake was ﬂat year-over-year and sizeable long- term frame-agreements with reference customers indicate a strengthening market position .

Within Cinema, the primary causes of weakness were material push-outs of replacement proj- ects as a result of cinema lock-downs and movie slate push outs . This subsegment activity is expected to remain soft for the next few quarters . While many replacement contracts have been pushed out, no contract has been cancelled .

New build projects in EMEA and China resumed gradually in the second half of the year .

During the ﬁrst half of the year, the division expanded its market share and technology leadership position, with one of its competitors exiting the cinema market, and gaining solid traction with its laser-based projection solutions .

In line with the corporate strategy to expand share of wallet with our installed base through services oﬀerings, the division launched and started selling "Insights-connectivity services", a cloud-based solution for enhanced and remote projector management .

EBITDA was break-even on the decline in gross proﬁt and a negative operating leverage eﬀect on ﬁxed costs due to weaker divisional sales .

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Enterprise division

CHANGE VS IN MILLIONS OF EURO FY20 FY19 FY18 FY19
-38 7. %	Orders	215 .2
-39 6. %	Sales	216 8.
-75 4. %	EBITDA	18 .2
EBITDA margin	84. %

Quarter-over-quarter sales

IN MILLIONS OF EURO Sales

CHANGE 3Q
4Q20	3Q20	2Q20	1Q20	VS 4Q
53 9.	50 0.	45 6.	67 .2	+7 8. %

We can't look away from the impact of the covid-19 crisis . Yet, accelerating all the initiatives that we initiated will deﬁnitely help us seize the opportunities of the new, hybrid normal .

George Stromeyer GM Barco Enterprise

The Enterprise division posted a 40% decline in sales and orders for the year and an 8% EBITDA margin down from 22% . Enterprise sales began to recover in the third and fourth quarter with gradual pick-up in both the Control Rooms and the Corporate subsegments .

The company continued to invest strongly in market awareness around ClickShare Conference, to ensure the solution further penetrates the market as corporates start to bring people back to oﬃce .

In terms of the sales mix, the Corporate activity accounted for about 51% of Enterprise sales for 2020 versus 58% of Enterprise sales for 2019 .

Demand for the ClickShare portfolio fell steeply in the second quarter as a result of pandemic related lockdowns and oﬃces being closed . Activity began to resume in the summer in certain geographies as some oﬃces and organizations re-opened and installed hybrid workplace prac- tices after the ﬁrst lock-down wave . While staﬀ at many companies worked remotely intermittently during the 2nd half of the year, the division's eﬀorts to build awareness for the value proposition of ClickShare Conference which was launched in January began to bear fruit, especially in EMEA . The new ClickShare Conference has created a new industry category, perfectly positioned for the hybrid way of working, as testiﬁed by industry awards, contract wins with reference cus- tomers and good initial demand with almost 20 .000 units shipped and installed during the year . ClickShare Conference accounted for 25% of the ClickShare sales in the second half of 2020 .

Barco strengthened and broadened its channels, trained more resellers and expanded coverage in selected regions and purchasing routes . The division also established an industry-wide alliance program with 20+ leading meeting room equipment vendors including Logitech, Vaddio, Jabra to create interoperable bundles of oﬀers for the equipping of meeting rooms .

Control rooms started the year with a weak ﬁrst quarter and full year sales fell below last year, due to project push-outs and installation delays resulting from the pandemic mainly in the Oil & Gas and Corporate markets . After the ﬁrst quarter, however, the topline improved quar- ter-over-quarter as customers responded favorably to the strengthening value proposition of the expanded product portfolio . The subsegment enforced its position with its diﬀerentiating triple-play video-wall hardware strategy (rear-projection, LCD and LED) and is gaining traction with LED evidenced by ﬁrst sizeable project wins . The segment also made progress in maturing and commercializing its software workﬂow and networking portfolio with remote management solutions such as Secure Stream and WallConnect Cloud services .

With a growing need for high quality hybrid and remote learning solutions for education and corporate learning, the Enterprise virtual classroom growth initiative increased its install base with the addition of distinguished references across regions .

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CHANGE VS IN MILLIONS OF EURO FY20 FY19 FY18 FY19
0 7. %	Orders	262 .1
-2 6. %	Sales	261 9.
-1 9. %	EBITDA	35 0.
EBITDA margin	13 4. %

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	The covid-19 crisis created new

Healthcare division

Quarter-over-quarter sales

IN MILLIONS OF EURO Sales

4Q20 64 .3

3Q20 59 .3

2Q20 69 4.

1Q20 68 8.

CHANGE 3Q

VS 4Q

+8 4. %

opportunities to innovate and new ways to create value in this evolving healthcare world . I am sure we'll emerge from this crisis stronger .

Filip Pintelon GM Barco Healthcare

Healthcare posted stable year-over-year results with orders slightly up, sales slightly down and EBITDA margin essentially ﬂat .

After a strong ﬁrst half with high single digit growth in sales, the third quarter slowed down as customers reset delivery schedules based on shifts in hospital spending priorities . The fourth quarter reﬂected a rebound driven partially by deployments of projects pushed out from the third quarter and partially by stabilizing of the Healthcare supply chain .

The diagnostics activity saw mixed results during the year with intensiﬁed demand for radiology and home reading stations oﬀset by softer demand for mammography and modality solutions .

Surgical saw demand picking up in the fourth quarter after a softer Q3 . The Nexxis-solution gained additional global access, expanding the partner-base globally as the operating room infrastructure market increasingly opens up for digital solutions . Barco also expanded its sur- gical oﬀering with the addition of Nexxis care, a cloud-based remote management platform .

Under the "In China for China"-program, the division is expanding its local Healthcare hub in Suzhou . The hub was initially opened in March 2019, and draws together business development, product management, research and development and Healthcare display production . As the healthcare market in China further expands in both the diagnostic and surgical subsegments, Barco is further increasing investment levels and strengthening its footprint, to support further market share gains .

At the same time the division also invested in a number of new solutions including the Deme- tra skin cancer screening solution, which was commercially launched in the US in the fourth quarter 2020

2020 Integrated annual report

Governance & Risk Report

barco.com

ENABLING BRIGHT OUTCOMES

Table of contents

01 Corporate governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Corporate governance statement . . . . . . . . . . . . . . . . . . . . . . 5

Board of Directors & Core Leadership Team . . . . . . . . . . . . . 6

Annual General Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Activity report & Evaluation of the

Board and its Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Remuneration report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Policies of conduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

01 Risk management and control processes . . . . . . . . . . 38

Risk management process . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Control environment & Risk management process . . . . . . . 40

Extra risk section regarding the consequences and impact

of the covid-19 pandemic . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Top risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Risks to be disclosed pursuant to the rules regarding

non-ﬁnancial information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Financial risk management and internal control . . . . . . . . . 56

This is the Governance & Risk Report section of Barco's 2020 Integrated annual report. Other sections are available via the download center at ir .barco c. om/2020.

CORE

• Governance & risk report
• Report on planet - people - communities
• Financial report

ANNEX

• Assurance report
• GRI Content index
• Glossary

Corporate governance

Declaration regarding the information given in the Annual

Report 2020

The undersigned declare that:

• The annual accounts, which are in line with the standards applicable for annual accounts, give a true and fair view of the capital, the ﬁnancial situation and the results of the issuer and the consolidated companies;
• The annual report gives a true and fair view of the development and the results of the company and of the position of the issuer and the consolidated companies, as well as a description of the main risks and uncertainties they are faced with .

Jan De Witte, CEO

Ann Desender, CFO

Corporate governance statement

In Spring 2019, the Belgian legislator adopted a new Code of Companies and Associations . Further, in the same timeframe, the Corporate Governance Commission adopted the 2020 Belgian Code on Corporate Governance which the Belgian legislator subsequently designated as the reference code for listed companies www .corporategovernancecommittee .be . Both entered into force on 1 January 2020 .

Following this entry into force, Barco has updated its articles of association as well as its corporate governance charter . The Board of Directors decided not to submit to the shareholders' approval some of the novelties introduced by the new code, such as a two-tier governance structure or dual voting rights for certain shareholders . At their meetings of 30 April 2020, the shareholders have approved the revised drafts of the articles of association and corporate governance charter . Both are available for download at www .barco .com/corporategovernance .

In accordance with article 3:6, §2 of the Code of Companies and Associations, Barco applies the 2020 Belgian Code on Corporate Governance .

Barco deviates from the 2020 Belgian Corporate Governance Code as follows:

Art . 7 .6: The Board of Directors decided not to grant shares to non-executive board members as part of their remune- ration . Such grant requires further analysis of the practical ramiﬁcations thereof, both for the company and its board members .

Art . 7 9. : The Board of Directors has not set a minimum thres- hold of shares to be held by the executives as their remu- neration package is sufficiently balanced with various components to incentivize the executives to pursue a strategy of sustainable proﬁtable growth .

Art . 7 .12: The Board of Directors endeavors to insert a 'claw- back provision' in contract of employment with executives to the extent permissible by the law governing such contract .

Board of Directors

Charles Beauduin

Jan De Witte

Frank Donck

An Steegen

Ashok K. Jain

Hilde Laga

Directors with 5 years of seniority

Female members of the Board

Independent directors

Charles Beauduin (°1959)

has been CEO and owner of Michel Van de Wiele NV since 1993 . Van de Wiele is an international technology player and leader in solutions for the textile industry . Mr . Beauduin holds several positions in trade associations and employer orga- nizations . He holds a Master of Law from KU Leuven and an MBA from Harvard Business School .

Mr . Beauduin has broad professional management experi- ence, including international assignments in Asia and the United States . He is member of the Board of Directors of Barco NV since January 2015 .

Jan De Witte (°1964)

is CEO of Barco and member of the Board as of September 2016 . He is a global leader who has served in a variety of global operational and business leadership roles over the past 30 years, delivering operational excellence, product development and growth in services, solutions and software businesses for technology companies .

Prior to joining Barco, Mr . De Witte was an oﬃcer of General Electric Cy (GE), and CEO of the Software and Solutions busi- ness in its Healthcare Division . During his 17-year tenure with GE, he worked in global management roles in manufacturing supply chain, Quality/Lean Six Sigma, services and software solutions and lived in Chicago, Milwaukee and Paris .

Prior to GE, Mr . De Witte held operational management positions in supply chain and manufacturing at Procter & Gamble in Europe . He also served as Senior Consultant with McKinsey & Company, serving clients in airline, process and high-tech industries across Europe . He holds several positions in educational and business incubation organizations and is a member of the Board of Directors of ResMed Inc .

Mr . De Witte holds a Master's degree in Electromechanical Engineering from KU Leuven (Belgium), and an MBA from Harvard Business School (USA) .

Ashok K. Jain (°1955)

is member of the Board of Directors of Barco NV since October 2012 . He holds a Master of Technology degree from the Indian Institute of Technology in Delhi, India . During his career, Mr . Jain has founded several technology start-ups and has converted them into successful businesses through strong leadership coupled with insights into emerging opportunities and trends in the global economy . Mr . Jain was founder and Chairman of the Board of IP Video Systems, which was acquired by Barco in February 2012 . He is currently a General Partner at Co=Creation=Capital LLC . Mr . Jain is of Indian origin and has US citizenship .

Hilde Laga (°1956)

holds a PhD in law . She is one of the founding partners of the law ﬁrm Laga, which she led as managing partner and head of the corporate M&A practice until 2013 . Hilde Laga joined the Board of Directors of Barco NV and NV Greenyard Foods in 2014 . In 2015, she joined the Board of Directors of Agfa-Gevaert NV and of Gimv NV . In 2016, she became president of Gimv NV . She is a member of the Belgian Corporate Governance Committee and served as a member of the supervisory board of the FSMA (formerly CBFA) until 2014 .

Frank Donck (°1965)

has been the managing director of investment holding company 3D NV since 1998, investing in a mix of long- term public equity, private equity and real estate . He also serves as Chairman of Atenor Group NV, as non-executive director of KBC Group NV and as independent director of Elia System Operator NV and Luxempart SA . Frank Donck holds a Master of Law from the University of Ghent and he obtained a Master of Finance from Vlerick Business School .

He started his career as investment manager for Investco NV and was a chairman and board member for several listed and privately owned companies . He is also vice-chairman of Vlerick Business School and is a member of Belgium's Corporate Governance Commission . Mr . Donck is member of the Board of Directors of Barco NV since April 2015 .

An Steegen (°1971)

is member of the Board of Directors of Barco NV since April 2017 . Dr . Steegen holds a Ph .D . in Material Science and Electrical Engineering from the Catholic University of Leuven, KUL, in collaboration with the Interuniversity Microelectronics Center, imec, in Belgium .

She joined IBM Semiconductor R&D in Fishkill, New York, in 2000 . As R&D director and executive of IBM's Interna- tional Semiconductor Alliance, she was responsible for IBM's advanced logic semiconductor technology development for the mobile and wireless application market . In 2010, she rejoined imec in Belgium . As Executive Vice President, she was in charge of imec's Semiconductor Technology & Systems division . Dr . Steegen is a recognized leader in semiconductor R&D and an acclaimed and inspiring thought leader in innovation in the IoT and digitalization era .

In 2018, Dr . An Steegen joined Umicore as Chief Technology Oﬃcer, responsible for the company's overall innovation strategy . She is in charge of Umicore's R&D in the areas of clean mobility materials, recycling and sustainability and she is responsible for Umicore's new business incubation in adjacent and new opportunity markets . She is also Executive Vice President of the Electro-Optical Materials and Metal Deposition Solutions business units .

Board of Directors

Situation on 8 February 2021

Chairman	Charles Beauduin	2023*
Directors	Jan De Witte	2023*
An Steegen (1)	2023*
Adisys Corporation (represented by Ashok K. Jain)	2023*
Hilde Laga (1)	2021*
Frank Donck (1)	2023*
Secretary

Kurt Verheggen General Counsel

(1) independent directors // * date on which the term of oﬃce expires: end of the annual meeting

The composition of the Board of Directors meets the gender diversity requirement laid down in article 7:86 of the Code of Companies and Associations .

All directors hold or have held senior positions in leading international companies or organizations . Their biographies can be found here .

Changes to the Board of Directors

Mr Luc Missorten decided to resign from the Board of Direc- tors of Barco in April 2020, while continuing to provide his support as senior advisor to the company . As a result, the number of Board members reduced from 7 to 6 .

The General Meeting of 30 april 2020 has re-appointed Mr . Charles Beauduin, Mr . Jan De Witte, Mr . Frank Donck, Mrs . An Steegen and Adisys Corporation, represented by Mr . Ashok Jain, as directors for a period of three (3) years until the closing of the ordinary General Meeting of 2023 .

Mr . Frank Donck and Mrs . An Steegen are re-appointed as independent directors .

Core Leadership Team

Jan De Witte

Ann Desender

Wim Buyens

Stijn Henderickx

Olivier Croly

Anthony Huyghebaert

Gerwin Damberg

Rob Jonckheere

CLT members with 5 years of Barco seniority

Female CLT member

Non-Belgian CLT members

Filip Pintelon

Nicolas Vanden Abeele

Marc Spenlé

Kurt Verheggen

George Stromeyer

Kenneth Wang

Iain Urquhart

Jan De Witte

See biographies of Board of Directors (Page 9)

Wim Buyens (°1966)

CEOCEO Cinionic

heads the Cinema Joint Venture, Cinionic . He has held seve- ral senior management positions in high tech companies during the past 15 years . He started his career in IT prior to joining the Danish company Brüel & Kjaer where he occupied several global senior management positions in sales and product strategy . Mr . Buyens joined Barco in November 2007 as Vice President Digital Cinema and has been General Manager of the Barco Entertainment division for 7 years . He served as Chairman of the Board of Governors of the Advanced Imaging Society in Hollywood in 2017-2018 . Mr .

Buyens holds a degree in Engineering and obtained his executive management at Stanford University and IMD in Lausanne .

Olivier Croly (°1965)

APAC

joined Barco in 2017 as Senior Vice President of APAC . Prior to joining Barco, he held top positions at GE Healthcare & Philips, leading businesses across EMEA & Asia . After gradu- ating from the National Telecom Institute with a Master of Telecommunications & Informatics in 1988, Mr . Croly earned an MBA from Paris Dauphine University .

Gerwin Damberg (°1978) Chief Technology Oﬃcer joined Barco in 2016 via the acquisition of MTT's Light Steer- ing technology where he was co-founder and served as CTO .

Dr . Damberg is an entrepreneur at heart and has advanced image technologies over the last decade both in start-up and established technology companies in R&D, business devel- opment and management roles . He holds a mechatronics engineering degree from the University of Applied Sciences in Karlsruhe, Germany as well as a PhD in Computer Science from the University of British Columbia, Canada .

Ann Desender (°1971) Chief Financial Oﬃcer joined Barco in 2008 and has been leading Barco's global ﬁnance team since 2010 . Prior to joining Barco, she held management positions as Corporate Director of Finance & Reporting at Unilin and was a Senior Audit Manager at Arthur Andersen and Deloitte . Mrs . Desender holds a Master of Applied Economic Sciences from the University of Ghent and completed an advanced management program at IESE Barcelona .

Stijn Henderickx (°1980)

EMEA

joined Barco in 2013 and held several positions in Barco's Entertainment Division, including Vice President Cinema and Vice President Pro AV, Events & Simulation . As of early 2019, he became Senior Vice President of EMEA .

Prior to joining Barco, Mr . Henderickx led Philips Arena Solutions, Philips' global business entity focused on stadi- ums and arenas . Earlier in his career, he took on multiple strategy assignments, ﬁrst at The Boston Consulting Group as Consultant, later on with Philips as Director Corporate Strategy . He holds a Master in Business Engineering from the University of Antwerp .

Anthony Huyghebaert (°1974) Chief HR Oﬃcer will join Barco on April 1, 2021 . He started his career as a lawyer with Landwell and KPMG, before moving to Alcatel- Lucent and Nokia . He worked in multiple senior HR roles cov- ering the breath of functional domains in Human Resources, working as HR functional expert as well as in HR business partnership roles across regions, technology and operational organizations, while being stationed in Belgium and Singa- pore .

Mr . Huyghebaert holds a Law Degree from the KU Leuven and a DES International and European Law from the UC Louvain .

Rob Jonckheere (°1964) Global Operations is Senior Vice President Global Operations managing Barco's worldwide manufacturing sites as well as the world- wide Logistics, Procurement, Quality and Facilities teams .

He joined Barco in April 2016 as VP Global Procurement and brings 30 years of experience across R&D, Program- and General Management .

Prior to joining Barco he held various positions with increas- ing responsibility at Philips and TP Vision and was chairman of the Board of Directors of TP Vision Belgium . Mr . Jonckheere holds a Master of Science in Electromechanical Engineering from the University of Louvain .

Filip Pintelon (°1964)

GM Healthcare

joined Barco in 2008 and has been successively President of Avionics & Simulation, President of Media, Entertainment & Simulation, and COO . As of early 2015, he became General Manager of the Healthcare division . Prior to joining Barco, he held top positions at Siemens, Accenture and The Boston Consulting Group . After graduating from KU Leuven with a Master of Mathematics & Informatics in 1986, Mr . Pintelon earned an MBA from Vlerick Leuven Gent Management School . Mr . Pintelon also holds several positions in industry advisory boards related to Digital Innovation .

Marc Spenlé (°1972) Chief Digital & Information Oﬃcer joined Barco as Chief Digital & Information Oﬃcer in August 2020 . During his 25+ years of international professional expe- riences in companies like IBM, Vodafone, and smaller IT service companies, he has lead projects in customer centric business transformation, operating of SaaS business models, Software development and IT technology .

Mr . Spenlé holds a degree in Process Engineering from the University of Applied Sciences in Niederrhein (Germany) .

began his career with Raychem Corporation in 1988 . Since then, he has assumed roles of increasing responsibility for global technology commercialization with Scientiﬁc Atlanta Inc ., Cisco Inc . and Harmonic Inc .

George Stromeyer

GM Enterprise

Mr . Stromeyer joined Barco in February of 2016 to lead the Enterprise division, which integrates seven worldwide sites . A native of Silicon Valley, he has developed a multi-cultural, multilingual background, with extensive years living and work- ing in Europe and Latin America . George Stromeyer holds a Bachelor of Science in Mechanical Engineering from Cornell University and a Master of Business Administration from the Tuck School at Dartmouth College .

Iain Urquhart (°1970)

Americas

joined Barco in 2019 as Senior Vice President of the Americas .

Prior to joining Barco, he led the cloud transformation of Oracle America's SaaS applications channel business . Before Oracle, Iain held senior leadership roles at Rackspace and Microsoft, focusing on driving cloud and as-a-service trans- formation in direct sales, channels and services . Mr . Urquhart holds a BS in History and Communication from the University of Missouri-Columbia .

Nicolas Vanden Abeele (°1972) GM Entertainment joined Barco in December 2017 . Mr . Vanden Abeele has over 20 years of experience in the technology and process industry in global leadership roles across the globe, having been stationed during his career in the Americas, Asia (China/ Singapore) and Europe .

Prior to joining Barco, he was a division head and part of the Executive Committee of the Etex Group . From 1997 until 2010, he held several top leadership positions in regional and business divisional roles at Alcatel-Lucent . He started his career at Arthur Andersen in management and strategy consulting .

Mr . Vanden Abeele holds a Degree in Business Administra- tion from KU Leuven, a Masters' Degree in Business from the College of Europe and and a Masters' Degree from the Solvay School of Management .

Kurt Verheggen (°1970)

General Counsel

serves as Company Secretary of the Board . He is the General Counsel of Barco in charge of legal, risk & compliance mat- ters . He started his career with the law ﬁrm Linklaters and then worked as legal counsel for CMB, Engie and General Electric . He holds a Law Degree from KU Leuven, a 'DEUG en droit' from Université du Havre, a Master of Laws from Tulane University Law School in New Orleans and a Master of Real Estate from Antwerp Management School . He is a judge in entreprise matters with the Enterprise Court in Kortrijk and a clinical teacher at the law faculty of the KU Leuven .

Changes Core Leadership team

Barco NV is managed by a Core Leadership Team ('CLT') which comprises certain key officers from functions, businesses and regions . The CLT operates under the chairmanship of the Chief Executive Oﬃcer and shares responsibility for the deployment of Barco's strategy and policies, and the achievement of its objectives and results .

The CLT composition has gone through a limited number of changes in 2020:

• An Dewaele, Chief HR Oﬃcer, left at the end of 2020 . Anthony Huyghebaert will join Barco on April, 1st 2021 as new Chief HR Oﬃcer and succeed An Dewaele
• Marc Spenlé joined Barco in August 2020 as Chief Digital & Information Oﬃcer, leading Barco's Digital Organization, combining IT and the GEAX organization, Barco's global software development team .

Kenneth Wang (°1972)

MD Barco China

rejoins Barco as SVP for the China region as of March 2021 . He originally joined Barco in 2015 as Sales Director for the China Entertainment and Clickshare business, and in 2018 moved as General Manager to the CFG-Barco JV in Digital Cinema for China . Prior to joining Barco, he held several commercial and business leadership roles in multinational companies in China including Philips, Dell and British Ameri- can Tobacco .

Mr . Wang holds an Engineering degree from Beijing Univer- sity of Technology, and an EMBA from University of Texas at Arlington .

• Xavier Bourgois, Senior Vice President Information Technologies left Barco at the end of January 2021 and left the CLT in September 2020 . His responsibilities are taken over by Marc Spenlé .
• Johan Heyman, head of Barco's Program Management Oﬃce "ﬁt to lead" left the CLT at the end of October 2020 and will be reporting to the Chief HR Oﬃcer as Vice President Organizational excellence .
• Tet Jong Chang, Managing director for Barco China since 2017, will retire from Barco at the end of the ﬁrst quarter 2021 and will be succeeded by Kenneth Wang .

Annual General Meeting

The annual general meeting (AGM) is held on the last Thursday of April . Shareholders can normally attend the meeting in person or vote by proxy . However, due to the corona virus outbreak in Spring 2020 and the government imposed measures to combat the epidemic, such as the prohibition on gathering, the Board of Directors has urged the individual shareholders not to physically attend the annual meeting but to submit their voting instructions in writing to the company secretary . Although the Belgian legislator exceptionally allowed listed companies to hold the general meetings behind closed doors, the Board of Directors orga- nized virtual meetings whereby shareholders could attend the meetings remotely and ask live questions, using Barco's weConnect technology .

Participation rate & Average of "For" votes

Next to the ordinary general meeting, the Board of Directors also convened an extra-ordinary general meeting to approve the updated articles of association as well as the split of the existing share into 7 new shares .

The company is open to discussions with proxy voting agencies to better understand their policies and align the company's governance practices therewith, considering its size, proﬁle, jurisdiction as well as the geographical scope of its activities .

Over the last years, shareholders' participation has gradually increased . Almost two thirds of the shareholders participated in the 2020 AGM .

Voting by proxyPhysical attendance

Average of "For" votes

100

64%

2015

2016

2017

* In 2020, physical attendance was not possible due to Covid-19 .

2018

2019

2020*

Activity report on Board and Committee meetings

Directors' attendance at Board and Committee meetings

tropeR ksiR & ecnanrevoG

Charles Beauduin Jan De Witte Frank Donck (1) Ashok K. Jain Hilde Laga (1) Luc Missorten An Steegen (1)

BOARDOF DIRECTORS

6 6

(1) independent directors

Board of Directors

REMUNERATION& NOMINATION COMMITTEE

Title 1 and 2 of Barco's Corporate Governance Charter describe the responsibilities of the Board of Directors and its Committees .

AUDIT COMMITTEE

STRATEGIC& TECHNOLOGY COMMITTEE

ATTENDANCE RATE

The table on the left provides a comprehensive overview of the directors' attendance at Board of Directors and Commit- tee meetings in 2020 .

100%

5 1 6

5 1

100%

100% 100%

Intermediate meetings are held via teleconference call if need be . All the Board of Directors meetings took place in Belgium with some of the directors attending the meetings via videoconference due to covid-related travel and sanitary restrictions .

95%

One meeting was closed with a dinner attended by the executive management and several of their team members to foster closer interaction between the directors and the managers of the company .

Average total attendance rate

At every meeting, the Board of Directors reviewed and dis- cussed the ﬁnancial results as well as the short to mid-term ﬁnancial forecast of the company . At the beginning of the year, upon recommendation by the Audit Committee, the Board approved the ﬁnancial results of 2019 and proposed the dividend for approval by the shareholders .

The Board, in close concert with the Core Leadership Team, reﬂected on each of the divisions' strategies for the short to mid-term, discussed and decided upon the growth initiatives for the company and approved the 2021 ﬁnancial budget .

The Board closely monitored the impact of the corona epidemic on the company's operations and ﬁnancial results .

Board Committees

Audit Committee

The Audit Committee is composed of three members .

An Steegen, who acts as Chairman, Frank Donck and Hilde Laga . All members are independent directors . The Audit Committee's members have relevant expertise in ﬁnancial, accounting and legal matters as shown in the biographies on pages A/57-A/58 .

Changes to the composition of the Audit Committee during 2020: Luc Missorten was member and acted as Chairman of the Audit Committee until his resignation as board member of Barco on April 9th 2020 . As a result Hilde Laga joined the Committee as a new member and An Steegen was appointed Chairman of the Audit Committee .

Finally, the Board reﬂected on the novelties introduced by the new company code and brought the articles of association in line with the new law .

The Audit Committee met seven times during 2020 . All Audit Committee members were present during all the meetings, except for Ann Steegen who was present in six of the seven meetings .

The Audit Committee reported the outcome of each meeting to the Board of Directors . The yearly report of the activi- ties of the Audit Committee was submitted to the Board of Directors .

Overview of the Board and Committee meetings in 2020

The CEO, the CFO and the VP Corporate ﬁnance attended all regular meetings . The Group's internal auditor was present in 2 meetings and the Group's external auditor PwC Bedrijfs- revisoren/Accountants bcvba was present in 3 meetings . The overview on the right indicates a number of matters that were reviewed and/or discussed in Audit Committee meetings throughout 2020:

JANUARYFEBRUARYMARCH

APRIL

MAY

JUNE

JULY

AUGUSTSEPTEMBEROCTOBERNOVEMBERDECEMBER

• The Company's 2019 annual and 2020 interim ﬁnancial statements, including non-ﬁnancial information, prior to publication thereof . The Committee also assessed in its quarterly meetings the adequacy and appropriateness of internal control policies and internal audit programs and their ﬁndings .
• Matters relating to accounting policies, ﬁnancial risks . and compliance with accounting standards . Compliance with statutory and legal requirements and regulations, particularly in the ﬁnancial domain, was also reviewed .
Important ﬁndings, Barco's major areas of risk (including the internal auditor's reporting thereon, as well as the review of litigation and other claims), follow-up actions and appropriate measures were examined thoroughly .
• Quarterly review of critical accounting judgements and uncertainties, including potential impact of covid-19 .
• Each quarter, the Committee reviewed the Company's free cash ﬂow generation and working capital ratios .
• The Committee monitored potential impairment indi- cators, reviewed the goodwill impairment test performed, ﬁnancial impact of strategic investments and risk mana- gement (covid-19, cyber security, global and Healthcare compliance, currency & treasury instruments, health, safety & environmental, insurance, GDPR, sustainability program) .

• With regard to internal audit, the Committee reviewed and approved the internal audit charter, audit plan, audit scope and its coverage in relation to the scope of the external audit, as well as the staﬃng, independence and organizational structure of the internal audit function .
• With regard to the external audit, the Committee reviewed the proposed audit scope, approach and fees, the independence of the external auditor, non-audit services provided by the external auditor in conformity with Barco's non-audit fee policy . The Committee also reviewed the key audit matters valuation of goodwill and valuation of deferred tax assets, as well as the group external auditor's management letter, which contained no recommendations with material impact .
• For information on the fees of Group auditor, please refer to note 23 Related party transactions in the Financial Statements 2020 .
• The Committee reviewed the report from the external auditor in which the auditor set forth its ﬁndings and attention points during the relevant period . The Committee also assessed the overall performance of the external auditor . The Committee also reviewed and approved its updated Audit Committee Charter, including the minor amendments thereto .

Remuneration and Nomination Committee

The Board of Directors has combined the Remuneration Committee and the Nomination Committee into a single committee .

The composition of the Remuneration & Nomination Com- mittee has been reviewed . Eﬀective April 9, Mr . Luc Missorten has resigned as director and Mr . Frank Donck has joined the Committee as a new member, next to Mr . Charles Beauduin, who continues to act as Chairman and Mrs . Hilde Laga .

The Committee has the necessary expertise to perform its mission

The Remuneration and Nomination Committee fulﬁlls the mission imposed on it by law and meets at least three times per year, as well as whenever the Committee needs to address imminent topics within the scope of its responsibi- lities . The CEO is invited to meetings, except for matters that concern him personally . The meetings are prepared by the Chief HR Oﬃcer, who attends the meetings .

The Committee gives its opinion on appointments to the Board of Directors (Chairman, new members, renewals and committees) and to Core Leadership Team positions . Other topics for the agenda of the committee typically are remu- neration policies, senior leadership remuneration, critical successions and nominations . In fulﬁlling its responsibilities, the Remuneration and Nomination Committee has access to all resources that it deems appropriate, including external advice .

The Committee is aware of the importance of diversity in the composition of the Board of Directors in general and of cul- tural and gender diversity in particular . For further reference on how the company deals with diversity and equal oppor- tunities we refer to the Sustainability Report, section People .

In 2020, the Remuneration and Nomination Committee met six times .

In 2019, the Board of Directors instructed a reputable con- sultancy ﬁrm to conduct an in-depth board review and to prepare a report with recommendations on how to further improve the eﬀectiveness of the Board of Directors and the diﬀerent Committees . On the ﬁrst meeting of the Remu- neration and Nomination Committee in February 2020, the ﬁndings of the review on the functioning of the Remuner- ation and Nomination Committee was presented by the Chairman and discussed, resulting in an agreement about a few adjustments .

The Remuneration and Nomination Committee has reviewed the results on the 2019 bonus targets, for Barco, Core Leader- ship Team and CEO . For the Core Leadership Team, the evaluation on the individual bonus criteria was discussed and

an overall assessment on the performance was done linked with the salary review . The members of the Remuneration and Nomination Committee received detailed data for each individual CLT member before giving ﬁnal approval on bonus and merit .

The allocations of Stock Options for 2020 has been prepared and brought to the Board for approval .

As from Q2, an update was given at each Remuneration and Nomination Committee meeting about the covid-19 crisis where topics such as employee health and wellbeing, tem- porary and structural measures taken and impact on short and long term incentives were discussed .

The Remuneration and Nomination Committee discussed and decided to use the legal options available for payback in case of fraud or other types of misconduct or irregularities in the results of the Company would be discovered in a period of 2 years following the payment of the bonus .

The Committee has discussed how the Core Leadership Team and the N-2 position holders have been assessed as part of the yearly Talent Review process in Barco and reviewed the talent vitality situation .

The Remuneration and Nomination Committee was infor- med and discussed about the Barco Culture Journey that has started, as an important element to support us in executing our strategy successfully .

Related to some shifts in the Core Leadership Team through- out the year, the new appointments were discussed by the Remuneration and Nomination Committee .

Technology Committee

The Technology Committee is an advisory body to the Board of Directors . The Committee is composed of four members .

Charles Beauduin, who acts as Chairman, Ashok Jain, An Steegen and Jan De Witte .

The Technology Committee assists the Board of Directors in fulﬁlling its oversight responsibilities by preparing techno- logy related matters that could inﬂuence Barco's strategy, such as the identiﬁcation of major investment opportunities in future technologies through internal resources or techno- logy acquisitions, technology roadmap strategy, operational performance and technology trends that may aﬀect portfolio performance .

Major technology investments relate to investments running over a number of years that involve a minimum commitment by the company of 10 million euro over the entire duration of the project . The investments might also include technology acquisitions .

In 2020, the Technology Committee met four times . The Committee organized speciﬁc working sessions by division, thus ensuring appropriate depth and focus for each of Barco's divisions . The Committee also performed the annual general review of foundational technologies as included in its strategic plan update presented to the Board .

Evaluation of the Board of Directors and its Committees

Regularly assessing the size, composition, functioning and performance of the Board of Directors and its Committees as well as the interaction with the executive management is an essential element of corporate governance .

The principle of Board assessment is laid down in the Corporate Governance Code as well as Title 1 (1 .5) of the company's Corporate Governance Charter .

See www .barco .com/corporategovernance

End of 2019, the Board of Directors had instructed a repu- table consultancy firm to conduct an in-depth board review consisting of an online, tailormade questionnaire, to be completed by all directors, the CFO and the Com- pany Secretary, and personal interviews of each respondent .

The Board review covers topics like the quality of the inter- actions within the Board (the relationship between the indi- vidual Board members and between the Board members and the Chairman) and between the members of the Board and the executive management; the quality and timing of the information and documents submitted to the Board; the preparation of the Board meetings; the quality of the discus- sions and decision-making of the Board; the extent to which all relevant strategic, organizational and managerial issues are addressed by the Board and the contribution of each Board member to the decision-making process of the Board .

In February 2020, the consultancy ﬁrm presented its ﬁnd- ings to the Remuneration and Nomination Committee, and subsequently to the Board of Directors .

It concluded that the company has a well-functioning and cohesive board, adding real value to the company and oper- ating in an atmosphere of trust and good collaboration . It also identiﬁed a few actions to further improve the function- ing of the Board of Directors, which meanwhile have been implemented to the extent possible .

In 2020, the Audit Committee instructed the secretary of the Audit Committee to gather self-review feedback with the members of the audit committee and management . The feedback was gathered using an audit committee self-review questionnaire from PwC . The results of this questionnaire were shared in the Audit Committee meeting of July 2020 .

The conclusion of both the members as well as management were very positive on the functioning of the Audit Commit- tee, which is operating in an atmosphere of mutual trust and good collaboration . A couple of recommendations linked to non-ﬁnance and compliance topics were agreed upon and implemented to the extent possible .

Remuneration report for ﬁnancial year 2020

General introduction

By law of 28 April 2020, new rules have been introduced in Belgian company law, implementing the EU Directive 2017/828 as regards the encouragement of long-term share- holder engagement .

Also in the context of the transition, the company has decided to provide the information required in the remu- neration report with respect to previous years only to the extent that this information was readily available .

These new rules require inter alia the company to have a remuneration policy, on which the shareholders have the right to vote at the general meeting . At the time of prepa- ration of this report the company's remuneration policy, as historically grown, is spread over several policy documents .

These will be combined into one remuneration policy which will be submitted to the shareholders for their approval at the general meeting of 29 April 2021 .

Where the new rules require the remuneration report to link up with the remuneration policy, such link will for this transition year be made to the various policy documents in existence at the time of the preparation of this report .

This report covers the 2020 remuneration of the non- executive board members (Part A), of the Chief Executive Oﬃcer (CEO), who is also a member of the board and thus an executive director (Part B) and other members of the Core Leadership Team (CLT) who are not members of the board (Part C) .

Part 1 :

Introduction to the 2020 remuneration report

The covid-19 pandemic had wide-ranging impacts on our company, our markets and our people . Our remuneration policy was also directly impacted by the crisis, with conse- quences for executive pay (management, CEO and CLT) as well as on the wages of the wider workforce .

In response to the crisis, Barco took a number of measures to reset expense levels, such as relying on temporary unem- ployment, redeploying people, a continued discretionary spending stop, hiring freezes and scaling back . While the impact on ﬁxed remuneration was limited, we took salary/ bonus actions and decided not to raise short-term incentive payment regardless of the achievements of group, divisional, regional, functional or individual targets . Also the long-term incentive cash bonus was aﬀected by the pandemic, as it is directly linked to the annual business objectives, which Barco had deﬁned .

Part 2 :

Remuneration report on the non-executive board members, CEO and CLT-members

Part 2, A

Remuneration of the non-executive board members

On 30 April 2020, pursuant to article 17 of the Articles of Association, the General Meeting set the aggregate annual remuneration of the entire Board of Directors at 2,144,575 euro for the year 2020 . Next to the board fees of the non- executive directors this amount includes the remuneration package of the CEO . Details on the CEO's remuneration are provided in section 2, B hereinafter .

Part 2, A, 1

Total remuneration

TABEL 1 - TOATAL REMUNERATION NON-EXECUTIVE DIRECTORS

FIXED REMUNERATION

VARIABLE REMUNERATION

PROPORTION OF FIXED AND VARIABLE

Name - Position

EXTRA-ORDINARY

PENSION EXPENSE

TOTAL REMUNE-

REMUNERATION

RATION

ITEMS

BASE

ATTENDANCE

COMPENSATION

FEESOTHER BENEFITSONE-YEAR VARIABLE

MULTI-YEAR

VARIABLE

FIXEDVARIABLE

Charles Beauduin

€120,000

€0,00

NANA

NANANA

Chairman of the Board

100%

€120,000

Frank Donck

€30,000

€40,800

NANA

NANANA

Member of the Board

100%

€70,800

Ashok K . Jain

€30,000

€21,300

NANA

NANANA

Member of the Board

100%

€51,300

Hilde Laga

€30,000

€38,250

NANA

NANANA

Member of the Board

100%

€68,250

Luc Missorten

7€,500

€10,225

NANA

NANANA

Member of the Board *

100%

€17,725

An Steegen

€30,000

€44,350

NANA

NANANA

Member of the Board

100%

€74,350

Total

€247,500

€154,925

NANA

100%

€402,425

(*) resigned from the Board with eﬀect as of 9 April 2020

The remuneration paid to non-executive directors consists solely of an annual ﬁxed component plus the fee received for each meeting attended . Considering the substantial time he devotes to the ongoing supervision of Barco group aﬀairs, the Chairman of the Board receives a diﬀerent remuneration package that comprises solely a ﬁxed component, which is set separately by the Remuneration and Nomination Com- mittee and approved by the Board .

The 2020 director's pay consists of:

• an annual gross ﬁxed compensation of 120,000 euro for the Chairman of the Board
• an annual gross ﬁxed compensation of 30,000 euro per director to non-executive directors and additionally an individual attendance fee of 2,550 euro gross per Board meeting attended
• 2,550 euro gross for members of the Audit Committee and 5,125 euro gross for its Chairman for each meeting of the committee attended
• 2,550 euro gross for members of the Remuneration and Nomination Committee for each meeting of the committee attended
• 2,550 euro gross per full day and 1,500 euro gross per half day for members of the Technology Committee for each meeting of the committee attended
• the Chairman of the Board, the CEO and the members of the CLT do not receive attendance fees for taking part in meetings of the Board and the committees

At the company's request, the following directors have taken up speciﬁc punctual assignments outside the scope of their directorship for which they have been compensated as described hereafter:

• Adisys Corporation, represented by Ashok K Jain: based on its director's extensive experience in Silicon Valley, Adisys Corporation is requested to invest

additional time in technology assessments and potential M&A identiﬁcation as well as contract initiation: 3,000 euro (2 days at 1,500 euro per day)

Non-executive directors do not receive any variable compen- sation linked to results or other performance criteria . They are not entitled to stock options or shares (see comment in the Corporate Governance statement on page 7 regarding the application of Principle 7 of the 2020 Belgian Corporate Governance Code), nor to any supplementary pension scheme .

Part 2, B

Remuneration of the CEOPart 2, B, 1

Total remuneration

The remuneration package of the CEO consists of a base salary, a variable remuneration, stock options, a pension contribution, and other components . There were no shares granted (see comment in the Corporate Governance state- ment on on page 7 regarding the application of Principle 7 of the 2020 Belgian Corporate Governance Code) .

The remuneration package aims to be competitive and is aligned with the responsibilities of a CEO leading a globally operating industrial group with various business platforms .

The amount of the remuneration and other beneﬁts granted directly or indirectly to the CEO, by the Company or its subsidiaries, in respect of 2020 for his CEO role is set forth below .

Name - Position

Jan De Witte

CEO

Base Salary

TABEL 1 - TOTAL REMUNERATION OF CEO

FIXED REMUNERATION

VARIABLE REMUNERATIONBASE SALARYFOREIGN DIRECTOR

FEESOTHER BENEFITSONE-YEAR VARIABLE

€339,500

€240,000

€56,510

€0,00

The base salary of the CEO consists of the actual salary paid by the company as well as of a ﬁxed director's fee paid by Barco, Inc . and by Barco China (Holding) Ltd .

Variable remuneration

The variable remuneration of the CEO consists of an annual bonus . The CEO is, contrary to other members of the CLT, not entitled to a long term incentive (LTI), other than stock options (see below) .

Variable remuneration, if any, vests on 31 December of the performance year . Therefore such variable remuneration is reported for the year it vests and not for the (subsequent) year it is paid .

The amount of annual bonus is paid in cash and is subject to a deferral period of three years, i .e . the bonus for performance year N is paid out as follows:

• 50% during N+1
• 25% during N+2
• 25% during N+3

PROPORTION OFFIXED AND VARIABLE

EXTRA-ORDINARY

ITEMSPENSION EXPENSE

TOTAL REMUNE-RATION

REMUNERATION

MULTI-YEAR

VARIABLE

FIXEDVARIABLE

€339,000

€287,673

€1,262,683

73 1. 5%

26 .85%

The deferred amounts are subject to the achievement of the Company's sustained EBITDA performance over the deferral periods and are therefore subject to upwards or downwards and capped at 130% (upwards) and 70% (downwards) . These parts are reported as multi-year variable .

For the reasons explained in Part 1 of this report and in align- ment with the diﬀerent salary actions, and cost reduction measures, taken across Barco's workforce over 2020, the CEO base salary was reduced versus 2019 and the CEO renounced his bonus for 2020 . No bonus for 2020 was vested in the hands of the CEO on 31 December 2020, except for the deferred payments of 2018 and 2019 . Given the exceptional, and largely exogenous, impact of the Covid-19 pandemic on Barco's results the Board of Directors decided to not apply the adjustments to the 2018 and 2019 deferred payments .

Pension

The pension beneﬁt of the CEO is an individual deﬁned con- tribution pension arrangement, which also includes a death cover .

Other components of remuneration

The other components comprise the total cost of ownership of a company car, a hospitalization insurance as well as a guaranteed income insurance in case of disability .

Relative weight of base pay and variable remuneration Following what is stated above, the CEO's entire 2020 pay consisted of 73 .15% ﬁxed remuneration and 26 .85% (deferred) variable remuneration . This relative weight is exceptional as it is heavily impacted by the fact that no STI vested for 2020 .

Part 2, B, 2

Share based remuneration

In line with the company's stock option policy, stock options were oﬀered to the CEO during 2020 as detailed in the table below . The stock options granted under the 2017 scheme vested in the course of 2020 . No stock options were exercised during 2020 . For more detail, see the table below .

TABLE 2 - STOCK OPTIONS

MAIN PROVISIONS OF THE STOCK OPTION PLAN

INFORMATION RELATED TO THE FINANCIAL YEAR 2020

A) NUMBER OF OPTIONS

Name Position

PLANEND OF RETEN-

IDENTI-FICATIONGRANTVESTING

DATE

TION PERIODEXERCISE PERIODEXERCISE

GRANTED B) VALUE UNDER-LYING SHARES @

A) NUMBER OF OPTIONS VESTEDA) NUMBER OF OPTIONS

NUMBER

PRICE

GRANT DATE

B) VALUE @ EXCERSISE PRICE

EXERCISED B) DATE OF EXERCISE

OF OPTIONS EXPIRED

SOP 2020-CEO

29/10/20

31/12/23

1/01/2024-28/10/2030

12 7. 6 €

a) 182,000 b) 2,322,320 €

Jan De Witte

CEO

SOP 2017-CEO

20/10/17

31/12/20

1/01/2021-19/10/2027

12 .54 €

a) 210,000 b) 2,633,400 €

Since the grant nor the exercise of the stock options is linked to performance conditions, this item of compensation is not considered as variable remuneration in the sense of the Belgian Corporate Governance Code . Therefore, it is also not included in the calculation of the above relative weight of base pay and variable remuneration .

Part 2, C

Remuneration of the CLT-members

The Core Leadership Team under analysis of this chapter includes 15 persons .

The CLT-members are employed by local Barco companies in their respective countries of residence . Their compensa- tion package therefor takes local market remuneration and beneﬁt practice into account .

NAME	POSITION	EMPLOYER LEGAL ENTITY	JOINED/LEFT CLT 2020
Xavier Bourgois	CIO	Barco nv (BE)	left CLT : 30/09/2020
Tet Jong Chang	SVP China	Barco Visual Electronics Co., Ltd. (CN)
Olivier Croly	SVP APAC	Barco Singapore Pte Ltd. (SG)
Gerwin Damberg	CTO	MTT Innovation Inc. (CA)
Ann Desender	CFO	Barco nv (BE)
An Dewaele	CHRO	Barco nv (BE)	left CLT : 31/12/2020
Stijn Henderickx	SVP EMEA	Barco nv (BE)
Johan Heyman	SVP Organizational Excellence	Barco nv (BE)	left CLT : 30/09/2020
Rob Jonckheere	SVP Operations	Barco nv (BE)
Filip Pintelon	SVP Healthcare Division	Barco nv (BE)
Marc Spenlé	CDIO	Barco nv (BE)	joined CLT : 15/08/2020
George Stromeyer	SVP Enterprise Division	Barco Inc. (USA)
Iain Urquhart	SVP Americas	Barco Inc. (USA)
Nicolas Vanden Abeele	SVP Entertainment Division	Barco nv (BE)
Kurt Verheggen	General Counsel	Barco nv (BE)
Part 2, C, 1
Total remuneration

The remuneration package of the Core Leadership Team members other than the Chief Executive Oﬃcer consists of a base remuneration, a short-term variable remuneration, a long-term variable bonus, stock options, a pension contri- bution and various other components . The remuneration package aims to be competitive and is aligned with the role and responsibilities of each CLT member, being a member of a team leading a globally operating industrial group in the technology market space with various business platforms .

There were no shares granted .

The amount of the remuneration and other beneﬁts granted directly or indirectly to the CLT-members, by the Company or its subsidiaries, in respect of 2020 is set forth below .

Name - Position

Core Leadership Team

Base Salary

TABLE 1 - TOTAL REMUNERATION OF CLT (EXCLUDING CEO)

FIXED REMUNERATION

VARIABLE REMUNERATIONBASE SALARYFOREIGN DIRECTOR

FEESONE-OTHER BENEFITS

YEAR VARIABLE

€3,686,339

€150,000

€325,019

€0,00

The base salary reﬂects role responsibilities, job characteris- tics, experience and skill sets .

Variable salary

Variable salary consists of an STI component and a Long Term Incentive (LTI) component, both delivered in cash .

EXTRA-ORDINARYMULTI-

YEAR VARIABLE

ITEMS

€0,00

€256,326

Annual Bonus

PROPORTION OFFIXED AND VARIABLE

PENSION EXPENSE

TOTAL REMUNE-RATION

REMUNERATION

FIXEDVARIABLE

€401,461

€4,819,145

100%

It is Barco's ambition to continue to build a culture where group, team and individual performance make a diﬀerence and are truly recognized and rewarded with an annual bonus as set forward by the global Barco Bonus Policy . The indi- vidual bonus for the CLT members is governed by the same policy .

Variable remuneration, if any, vests on 31 December of the performance year . Therefore such variable remuneration is reported for the year it vests and not for the (subsequent) year it is paid .

The main conditions for the annual bonus are (i) the creation of the bonus pool and (ii) the achievement of bonus targets:

• Proﬁtability of the Barco group is the base for creating the bonus pool . A minimum of 70% of the 2020 Proﬁt Plan EBITDA (excluding results on divestments and discontinued operations and excluding growth initiatives) should be achieved on group level before bonuses are paid .
• A strong focus on performance at Group, divisional/ regional/functional and individual level is reﬂected in the annual Barco bonus program, which is directly linked to the annual business objectives .

Payment is capped at 150% of the target award .

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Barco NV published this content on 11 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 February 2021 09:10:01 UTC.

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Board of Directors

Audit Committee

Remuneration Committee

Strategic & Technology Committee

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