Barco is a global visualization company headquartered in Belgium that is preparing for sustainable and profitable growth in the next decade. In 2009, Barco launched a 3-phase plan to weather the crisis by reducing costs and focusing on cash generation. In 2010, the plan aimed to resume growth and restore profitability by improving operations and capturing growth in key markets like healthcare and digital cinema. For 2011, Barco is preparing to lead through technology and develop world-class operations to position the company for continued profitable growth.

1. Barco redefined
Preparing Barco for
sustainable and profitable growth
in the next decade
Jan Van Acoleyen
Chief HR Officer Barco
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2. Agenda
•Introduction to Barco
•Journey towards sustainable profitable growth
2009: Weather the crisis
2010: Restore profitable growth
2011: Reposition Barco for the next decade
•Leadership, culture, structure, staff and other
HR deliverables….
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3. 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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4. Mission statement
To create value through the
design and delivery of superior
and user friendly imaging
products and systems to
selected professional markets
on a global basis
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5. Worldwide presence
Americas EMEA APAC
United States Belgium Asia
California Denmark China
Georgia France India
Japan
Ohio Germany
Malaysia
Oregon Israel
Singapore
Texas Italy South-Korea
Canada Poland Taiwan
Brazil Russian Federation
Mexico Spain
Sweden Pacific
Switzerland Australia
The Netherlands
Turkey
UAE
United Kingdom
31 sales offices around the globe of which 11 resource centers (R&D and/or manufacturing - indicated in bold)
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6. Geographical breakdown of sales
2010 2009
22% 42% 23% 47%
36% 30%
Sales Sales
EMEALA NA APAC EMEALA NA APAC
Group 2010 % Total Group 2009 % Total
EMEALA 383.1 42.7% EMEALA 297.2 46.6%
NA 319.5 35.6% NA 192.0 30.1%
APAC 194.4 21.7% APAC 148.8 23.3%
2009-2010 sales growth 2009-2010 orders growth
• EMEALA region 29% • EMEALA region 46%
• NA region 66% • NA region 94%
• APAC region 31% • APAC region 41%
•Total 41% •Total 58%
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7. Barco’ activities:
s
2010 reporting structure
Media, Entertainment, Simulation Monitoring, Control and Medical
Digital Cinema Simulation & VR Defense Avionics
VLS DS TSM Medical
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8. Agenda
•Introduction to Barco
•Journey towards sustainable profitable
growth
2009: Weather the crisis
2010: Restore profitable growth
2011: Reposition Barco for the next decade
•Leadership, culture, structure, staff and other
HR deliverables….
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9. Barco is determined to create shareholder
value
Barco share price (€)
•Barco saw a steep decline
leading into the crisis of
2008
•Since 2009, Barco is
committed to reverse this
trend
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Source: Factiva monthly quote

10. In 2009 Barco launched a 3-phased plan to
increase performance
Phase I (2009):
Weather the crisis
• Clean-up the balance
sheet
• Reduce working capital
• Focus on cash generation
• Right size the operating
units
• Lower operating costs
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11. 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 lower
margin (new) Barco and manage operating costs accordingly
•Use cash to acquire FIMI (Philips) and capture global
leadership position in medical
•Fight for global leadership in Digital Cinema
•Accelerate growth through presence in mid-end markets
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12. In 2009 Barco launched a 3-phased plan to
increase performance
Phase I (2009): Phase II (2010):
Weather the crisis Resume growth and
restore profitability
• Clean the balance •Improve operational
sheet performance
• Reduce working capital
•Capture growth in
• Focus on cash selective markets
generation
-Healthcare
• Right size the -Digital Cinema
operating units
• Lower operating costs •Invest in China and
India operations
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13. 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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14. In 2009 Barco launched a 3-phased plan to
increase performance
Phase I (2009): Phase II (2010): Phase III (2011):
Preparing Barco
Weather the crisis Resume growth and for continued
restore profitability profitable growth
• Clean the balance •Improve operational •Adapt management
sheet performance philosophy to specific
• Reduce working capital business needs
•Capture growth in
• Focus on cash selective markets •Lead through technology
generation
-Healthcare •Develop world class
• Right size the -Digital Cinema
operating units operations
• Lower operating costs •Invest in China and •Align structure with
India operations strategy
•Increase sales efficiency
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15. Barco’ organization will reflect the portfolio
s
strategy –Guiding principles
1 We will align the organization with corporate
•
portfolio strategy
2 We will favor the business dimension over and above
•
the regional dimension and organize our front-end
organization accordingly
3 We will reduce complexity of our organization and
•
capture scale economies where possible
- Create functional scale in operations, technology,…
- Avoid duplication of effort and investment
- Minimize number of hierarchical levels
4 We will manage each business towards 10-10-20
•
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16. Complementing the review of the portfolio,
a set of strategic imperatives was identified
•Customer centric mindset
Nurture •Strong divisional strategic marketing
customer
•Key account and professional channel management
intimacy
•Global service capability
•Reduced complexity and footprint
Master •Better systems and reporting
operations •Increased presence in India and China
•Higher quality and operational excellence
•Scalability in research & development
Lead •Focus on IP connectivity
through •Lead on next generation projector technologies
technology •User friendly interfaces and management systems
•Move towards multimedia systems
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17. Agenda
•Introduction to Barco
•Journey towards sustainable profitable
growth
-2009: Weather the crisis
-2010: Restore profitable growth
-2011: Reposition Barco for the next decade
•Leadership, culture, structure, staff
and other HR deliverables….
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18. Structure
§ From conglomerate of companies to centralized & shared
services
§ 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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19. Culture & Values
BARCO YESTERDAY BARCO TOMORROW
- Past -Future
- Survival Mode -Winning Mode
- Hardware centric -Systems centric
- Product-centric -Customer-centric
- Parochial mindset - Global mindset
- A great engineering - An integrated global industry
company leader
To build a leading global innovative company, the
place to be, Barco will embrace a new CULTURE
and fully engage with its people
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20. Page 20

21. Leadership
The power of engaging people
Tell me and I will forget
Show 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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22. 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
– ….
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