Jan Van Acoleyen

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Barco redefined

Preparing Barco forsustainable and profitable growthin the next decade

Jan Van AcoleyenChief HR Officer Barco

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Agenda

•Introduction to Barco

•Journey towards sustainable profitable growth

2009: Weather the crisis2010: Restore profitable growth2011: Reposition Barco for the next decade

•Leadership, culture, structure, staff and otherHR deliverables….

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Introduction to Barco: Overview

•Global company, headquartered in Kortrijk, Belgium- Active in more than 90 countries

•Focus on professional visualization markets worldwide

•Listed on NYSE Euronext Brussels

•Sales 2010: €897M

•3,500 employees (± 1,500 in Belgium)

•8% of sales invested in R&D

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Mission statement

To create value through thedesign and delivery of superior

and user friendly imagingproducts and systems to

selected professional marketson a global basis

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Worldwide presence

Belgium

Denmark

France

Germany

Israel

Italy

Poland

Russian Federation

Spain

Sweden

Switzerland

The Netherlands

Turkey

UAE

United Kingdom

Asia

China

India

Japan

Malaysia

Singapore

South-Korea

Taiwan

Pacific

Australia

United States

California

Georgia

Ohio

Oregon

Texas

Canada

Brazil

Mexico

Americas EMEA APAC

31 sales offices around the globe of which 11 resource centers (R&D and/or manufacturing - indicated in bold)

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GeographicalGeographical breakdown ofbreakdown of salessales

Group 2010 % Total Group 2009 % Total383.1 42.7% 297.2 46.6%319.5 35.6% 192.0 30.1%194.4 21.7% 148.8 23.3%

EMEALA EMEALANA NAAPAC APAC

36%

22% 42%

EMEALA NA APAC

2010

Sales30%

23% 47%

EMEALA NA APAC

2009

Sales

2009-2010 sales growth

• EMEALA region 29%

• NA region 66%

• APAC region 31%

•Total 41%

2009-2010 orders growth

• EMEALA region 46%

• NA region 94%

• APAC region 41%

•Total 58%

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Defense AvionicsDigital Cinema Simulation & VR

Barco’s activities:2010 reporting structure

Media, Entertainment, Simulation Monitoring, Control and Medical

VLSVLS DS MedicalTSM

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Agenda

•Introduction to Barco

•Journey towards sustainable profitablegrowth

2009: Weather the crisis

2010: Restore profitable growth

2011: Reposition Barco for the next decade

•Leadership, culture, structure, staff and otherHR deliverables….

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Barco share price (€)

Barco is determined to create shareholdervalue

•Barco saw a steep declineleading into the crisis of2008

•Since 2009, Barco iscommitted to reverse thistrend

Source: Factiva monthly quote

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In 2009 Barco launched a 3-phased plan toincrease performance

Phase I (2009):

Weather the crisis

• Clean-up the balancesheet

• Reduce working capital• Focus on cash generation• Right size the operating

units• Lower operating costs

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Phase I (2009):Weather the crisis –Focus on cash generation

•Drastically reduce working capital to free up cash

•Decisively cut operating costs in VLS

•Clean up balance sheet goodwill and capitalized R&D

•Replace silo structure with front end/back end organization

•Empower regional sales organization to generate market pull

•Develop target income statements, for each business unit

•Redeploy resources towards emerging growth markets

•Regroup divisions into high margin (traditional) and lowermargin (new) Barco and manage operating costs accordingly

•Use cash to acquire FIMI (Philips) and capture globalleadership position in medical

•Fight for global leadership in Digital Cinema

•Accelerate growth through presence in mid-end markets

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In 2009 Barco launched a 3-phased plan toincrease performance

Phase I (2009):

Weather the crisis

Phase II (2010):

Resume growth andrestore profitability

• Clean the balancesheet

• Reduce working capital• Focus on cash

generation• Right size the

operating units• Lower operating costs

•Improve operationalperformance

•Capture growth inselective markets

-Healthcare-Digital Cinema

•Invest in China andIndia operations

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Phase II (2010):Resume growth and restore profitability

•Win big in Digital Cinema and Medical

•Rethink corporate strategy and portfolio going forward

•Acquire dZine as platform into content enabled systems

•Acquire Element Labs to complement offering in LED signage

•Recapture market share in VLS through mid-range product line

•Recapture market share in Control Rooms with LED powered cubes

•Barco: not just a great engineering company-Increased focus on customer intimacy-Increased focus on operational excellence-Move into mid-segment markets

•Simplify footprint and increase capacity in India and China

•Employee engagement and customer satisfaction surveys

•Develop next generation leaders

•Analyse portfolio and map out strategy going forward

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In 2009 Barco launched a 3-phased plan toincrease performance

Phase I (2009):

Weather the crisis

Phase II (2010):

Resume growth andrestore profitability

Phase III (2011):Preparing Barcofor continued

profitable growth

• Clean the balancesheet

• Reduce working capital• Focus on cash

generation• Right size the

operating units• Lower operating costs

•Improve operationalperformance

•Capture growth inselective markets

-Healthcare-Digital Cinema

•Invest in China andIndia operations

•Adapt managementphilosophy to specificbusiness needs

•Lead through technology

•Develop world classoperations

•Align structure withstrategy

•Increase sales efficiency

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Barco’s organization will reflect the portfoliostrategy –Guiding principles

•We will align the organization with corporateportfolio strategy

•We will favor the business dimension over and abovethe regional dimension and organize our front-endorganization accordingly

•We will reduce complexity of our organization andcapture scale economies where possible

- Create functional scale in operations, technology,…- Avoid duplication of effort and investment- Minimize number of hierarchical levels

•We will manage each business towards 10-10-20

1

2

3

4

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Complementing the review of the portfolio,a set of strategic imperatives was identified

Nurturecustomerintimacy

Masteroperations

Leadthrough

technology

•Scalability in research & development

•Focus on IP connectivity

•Lead on next generation projector technologies

•User friendly interfaces and management systems

•Move towards multimedia systems

•Reduced complexity and footprint

•Better systems and reporting

•Increased presence in India and China

•Higher quality and operational excellence

•Customer centric mindset

•Strong divisional strategic marketing

•Key account and professional channel management

•Global service capability

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Agenda

•Introduction to Barco

•Journey towards sustainable profitablegrowth

-2009: Weather the crisis

-2010: Restore profitable growth

-2011: Reposition Barco for the next decade

•Leadership, culture, structure, staffand other HR deliverables….

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Structure

§ From conglomerate of companies to centralized & sharedservices

§ Matrix organization and its’challenges

§ Maximizing customer focus and realizing scale effects

Lessons learned:–structure follows strategy–culture & skills brake or make structure–structural change only starts on the day of

announcement, is not done by then–communication, daily leadership, follow through &

clarification is key–…

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Culture & Values

BARCO YESTERDAY- Past- Survival Mode- Hardware centric- Product-centric- Parochial mindset- A great engineeringcompany

BARCO TOMORROW-Future-Winning Mode-Systems centric-Customer-centric- Global mindset- An integrated global industryleader

To build a leading global innovative company, theplace to be, Barco will embrace a new CULTUREand fully engage with its people

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Leadership

The power of engaging people

Tell me and I will forgetShow me and I may remember

Involve me and I will understand

§ Multiple actions:–Engagement Survey–Leadership development–Leadership evaluation–Leadership recruitment–Top Management example–…..

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Skills & Staff

The right people on the bus is really key.

§ Focus in recruitment:– International– Operations– Strategic Marketing– R&D: network– Process & Project skills– Leadership

But even more key:- matching the values & desired culture- able to bridge the gap- resilience- team orientation- global mind set- ….

§ Integrated HR approach is essential– Succession Planning– Promotion– Reward– Performance management– ….