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Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
Eric Van Zele CEO Barco, iMinds The Conference 2013
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Eric Van Zele CEO Barco, iMinds The Conference 2013

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Eric Van Zele CEO Barco, iMinds The Conference 2013

Eric Van Zele CEO Barco, iMinds The Conference 2013

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  • 1. One Barco The road ahead… A journey of perpetual transformation December 2013 Eric Van Zele CEO
  • 2. Barco 2012 You will find us where images are critical to professionals NYSE Euronext International company Headquartered in Belgium Stocklisted (BAR) on NYSE Euronext Brussels Company Confidential Slide 2 90+ Presence in more than 90 countries 3,90O Employees 1.156 Billion euro sales in 2012
  • 3. Vertical markets Cinema Healthcare Corporate AV Company Confidential Slide 3 Venues & Hospitality Utilities, security & surveillance Defense & Aerospace OEM
  • 4. Digital Cinema “Enchanting 50 million moviegoers every day” Company Confidential Slide 4
  • 5. Rental & Staging Festival of the Light, Ghent Company Confidential Slide 5
  • 6. Advanced Visualization Systems Airtel India Company Confidential Slide 6
  • 7. Simulation ”Barco consistently delivers in terms of quality, reliability and performance” Phil Morse, US Agent Ansible Design Ltd, London, England Company Confidential Slide 7
  • 8. Defense & Aerospace “Flying aboard 100 types of aircraft every day” Company Confidential Slide 8
  • 9. 2009: Barco is determined to create shareholder value BARCO share price (€) ▪ Barco has seen a significant historical performance decline 100 - 80 60 40 ▪ Since 2009, Barco is determined to reverse this trend 20 9 May-13 May-12 May-11 May-10 May-09 May-08 May-07 May-06 May-05 May-04 May-03 May-02 May-01 0 Company Confidential Slide 9 Flat revenue and declining market shares Declining gross margins Fluctuating and inconsistent EBIT Declining shareholder value
  • 10. 2009 - Time to act  Organization ill prepared for Digital Cinema  Wrong strategic focus on events market  Silo culture destroyed value  Complexity was life-threatening  Global operations were substandard  Technology too narrow, base needed broadening  S&M pointed to inefficient go-to-market models  Service and quality below customer expectations  Management systems and processes end-of-life Company Confidential Slide 10
  • 11. It took 4 years to reshape Barco: 2009-2012 Phase I (2009) Weather the crisis Phase II (2010) Resume growth and restore profitability Phase III (2011/2012) Consolidate global leadership 2009 vs 2012 SALES from € 640m to € 1,160m EBITDA from 3.8% to 13.8% ROCE from -9% to 24% Company Confidential Slide 11
  • 12. Rightsizing measures of 2009 1. Sales € -85m 2. Quality & sell-off related margin hits € -24m 3. Operating expenses € -53m 4. Additional restructuring provisions € 5. Capitalized R&D € -15m 6. Inventories € -45m 7. Impairments on goodwill € -25m 8. Positive cash flow Company Confidential Slide 12 -6m € +64m
  • 13. 2010: Strategic repositioning of Barco Vision Where do we want to go ? What do we want to be? Mission Intelligence: How do we realize our goal ? Strategy Resources Structure How do we organize ourselves to get there ? Company Confidential Slide 13 Do we have the right people & culture to be successful ? Processes What are the mission critical business processes ?
  • 14. Strategic repositioning of Barco Phase II (2010) Resume growth and restore profitability Phase I (2009) Weather the crisis  Portfolio analysis • • • • Align organi²zation with strategy Invest and grow the core Consolidate Avionics with Defense Each business unit to 10/10/20  Leadership and culture • • • We-culture at the top Values and behaviors Next generation leaders  Customer intimacy • • • • •  More customer centric approach Strategic marketing Key account focus Professional channel management Global service capability  Operational Excellence • • • • Reduced complexity and footprint Better systems and reporting India and China Quality and operational efficiency Lead through technology • • • • Company Confidential Slide 14 Phase III (2011/2012) Consolidate global leadership IP-connectivity and processing Next generation projector technologies User friendly interfaces and management systems Multimedia systems
  • 15. The first step in redefining Barco was an in-depth analysis of the current portfolio Market attractiveness High Score Defense & avionics Training Simulator Digital Cinema V&AR Signage Low Score Company Confidential Slide 15 Medical Source: Bain analysis, Barco management interviews VLS other VLS projector Ability to win Control room High Score
  • 16. Further analysis helped to frame the industry trends  Mobility: bring your own device (BYOD)…  Increased bandwidth for wireless connections  Teleworking / remote learning / remote collaboration  Emerging need for multifunctional screens  Customers demand more integrated end-to-end systems  Customers demand full connectivity and collaboration Company Confidential Slide 16
  • 17. Competitive Intelligence helped to discover new value creation models with new contenders are being deployed… and showing Barco’s unique position… Traditional competitors Emerging competitors New capabilities Projection Healthcare Advanced Visualization Defense & Aerospace Company Confidential Slide 17 New markets New geographies
  • 18. Market Intelligence helped in seeing the growth and its drivers TAM growth 2011-2015 CAGR (11-15) 9,000 7,000 3.8% EUR 7.7bn 8,000 EUR 6.6bn 6,000 Ventures 5,000 Defense & Aerospace 63 CRV 2.1% 12.5% 1,000 R&S DC 0 2011 Corporate AV R&S DC 2015 Market growth per division (€M) Company Confidential Slide 18 – Double digit growth in Healthcare – Decline in DC off-set by growth in Professional AV 82 – Moderate growth in CRV, D&A and Ventures  Within these markets, Barco targets those segments that exhibit most attractive growth potential: – Corporate AV in Entertainment ~10% CAGR Entertainment Corporate AV  The markets Barco serves, are growing at ~4% p.a. driven by 126 529 Healthcare 2,000 1,058 3.2% Defense & Aerospace CRV 3,000 €M (11-15) 1.1% Ventures Healthcare 4,000 Growth drivers – Point of Care in Healthcare >30% CAGR – UAV market in Defense >10% CAGR 9.7% 464 6.1% 100 -8.3% -306  Expansion in terms of geographies into the BRIC countries
  • 19. …adding new and sizeable growth opportunities  Mid Segment  “Connectivity” & “Collaboration” device Lossless, low-latency video transport LOCAL CONNECTIVITY device gateway device Controlled streaming of audio/video STREAMING gateway device device Company Confidential Slide 19 Collaborative decision making through data/video/audio COLLABORATION
  • 20. Generic growth options considered Acquisitions More software enabled management systems New technology breakthroughs Projector & Display centric OEM Business model Mid-segment markets (less niche) Company Confidential Slide 20 More integrated systems New verticals More service enabled systems New geographies
  • 21. Broadening the technology base Display technology Projection technology Connectivity Collaboration Company Confidential Slide 21
  • 22. Dimensions of competitive advantage Technology Customer Intimacy Operational Excellence Company Confidential Slide 22
  • 23. 2009 – 2012 Company Confidential Slide 23
  • 24. Barco anno 2012  1.16 billion strong and growing  Global leader in projectors and displays for professional use  Strategic acquisitions to reinforce collaboration  Technology leader through innovative solutions for connectivity  Playing a home game in ALL strategic geographies  Building on innovative core technology platforms  Value creation and enterpreneurship in promising ventures  Built on worldclass systems, processes and operations  Having strategic marketing with intelligence in place Company Confidential Slide 24
  • 25. Great companies thrive on passion and commitment Outstanding people and teams operating in a motivating and nurturing environment are key to success Company Confidential Slide 25
  • 26. Leadership is key The timeless role of leaders is to help their organizations work through necessary but painful changes that don’t happen naturally Company Confidential Slide 26
  • 27. The twelve dimensions of leadership 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Company Confidential Slide 27 Visioning Empowering Energizing Designing and Aligning Rewarding and Feedback Team Building Outside Orientation Global Mindset Tenacity Emotional Intelligence Life Balance Resilience to Stress
  • 28. Culture is key - Barco core values 1. We trust each other 2. We encourage team play 3. We care about our people 4. We deal openly and ethically 5. We delight our customers 6. We are accountable 7. We lead through innovation 8. We deal with facts Company Confidential Slide 28
  • 29. Vision - The road ahead… Over the next 4 years Barco should foster the ambition to grow organically into 1.5 billion in revenues  10% CAGR  EBIT = > 9% on sales  > 75 millions in FCF per annum  Through increased focus on rapidly growing opportunities for networked & collaborative visualization systems in the core markets, now defined as Healthcare, Projection, Advanced Visualization, Defense & Aerospace  …and beyond the 1,5 billion threshold through inorganic growth Company Confidential Slide 29
  • 30. Barco’s strategy Visualize  Defend & reinforce Barco’s leadership position in the “Visualize” core Distribute & Transmit Manage Capture Applications  Capitalize on the IPconnectivity and collaboration opportunity  Expand into adjacent markets Company Confidential Slide 30 Note:  Barco’s offer today in “Visualize”: Projectors, LCD displays, LED walls, Video walls  Barco’s offer today in “Distribute & Transmit”: Image processors, Controllers
  • 31. Barco now moving into Networking and Collaboration Not Barco Not Barco Local Area Network Gateway Wide Area Network EN- / DE-CODING EN- / DE-CODING • Recorder • Media management server • Image processing server Company Confidential Slide 31 • Image composition
  • 32. Shaping new products and services Leveraging the Internet stack.... ... to extend business reach Entertainment • Live event streaming Corporate & Education • • • • • On-demand collaboration Corporate HD streaming Digital Signage Campus broadcast & video distribution Course recording & on-demand learning Healthcare • • • Digital operating room Centralized streaming and recording Remote surgical collaboration
  • 33. 7 ways to shape our own destiny        Visionary entrepreneurship Inspiring leadership Continuous education Global mindset Focus on innovation instead of duplication Focus on rapid experimentation instead of business plans Focus on growth rather than on cutting costs Yes we can! Company Confidential Slide 33
  • 34. Ten commandments of a turnaround Company Confidential Slide 34
  • 35. Ten commandments of a turnaround 1. Dare to see reality the way it is and not the way you had hoped it to be 2. Market and Customer Intelligence: do the necessary diagnostics upfront and consult with your people and your customers to collect their inputs and get them involved early on 3. Competitive Intelligence: benchmark the industry leaders and assess why they have been successful 4. Communicate your assessment of 'current state' clearly and succinctly to all stakeholders. Don't beat around the bush and repeat often. Illustrate why change is needed 5. Articulate a new vision & strategy for a brighter future and illustrate how powerful it could be. Illustrate how it could benefit stakeholders. Push for executive alignment and commitment and passion and buy-in Company Confidential Slide 35
  • 36. Ten commandments of a turnaround 6. Be a role model for change. Change begins at the top. Create a leadership team with a 'we' culture. Engage your most valuable players early on 7. Determine whether the current organizational structure is still suited for deliverance of the new vision and strategy. Change if necessary 8. Business Intelligence: identify and publish the key performance indicators and review and discuss them open and honestly and frequently with the leadership team. Push for their collective commitment and enforce accountability 9. Reward team behavior and team culture and implement new incentive schemes that will reinforce and support your new vision and strategy 10. Celebrate successes and promote & reward those that have contributed to your progress. Remove or eliminate those that try to inhibit change Company Confidential Slide 36
  • 37. Thank you Company Confidential Slide 37

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