Barco NV

Earnings Release • Feb 9, 2017

FULL YEAR RESULTS: EBITDA margin expansion on high-single digit sales growth

Kortrijk, Belgium, 9 February 2017 – Today Barco (Euronext: BAR; Reuters: BARBt.BR; Bloomberg: BAR BB) announced results for the six and twelve month periods ended 31 December 2016.

Fiscal year 2016 financial highlights

• Incoming orders at 1081.2 million euro (+ 3.6%)
• Sales at 1102.3 million euro (+ 7.0%)
• Gross profit margin at 34.4% (+ 1.6 ppts)
• EBITDA of 88.0 million euro (+ 13.9 million euro) or 8.0% of sales (+ 0.8 ppts)
• EBIT1 of 36.6 million euro (+34.9 million euro) or 3.3% of sales (+3.2 ppts)
• Net income of 11.0 million euro
• Free cash flow of 57.4 million euro
• Net financial cash position of 286.6 million euro
• Proposal to increase the dividend to 1.90 euro per share from 1.75 euro

Quote of the CEO, Jan De Witte

"Barco delivered solid sales growth and improved profitability for 2016. Initiatives to lower product costs and a favourable product mix led to a gain in gross profit margin versus 2015 and a year-over-year increase in EBITDA margin, even with significant investments in growth initiatives during the year," said Jan De Witte, CEO.

"Across our divisions, we advanced technology initiatives, expanded our channel network and increased sales of newer product lines. In Entertainment we continued to leverage our global leadership position in digital cinema, including strong results in China, while propelling sales of laser projectors globally in line with emerging demand for premium formats and technology upgrades. Notable in Healthcare, we saw a promising uptake of our network-enabled visualization solutions for the operating room and single-digit growth across the portfolio. In Enterprise strong momentum in ClickShare boosted the divisional profits while sales growth was offset by weaker sales in Control Rooms," added De Witte.

"For 2017, our goal is to continue generating sales and profitability growth through further leveraging our technology, software and services. We will continue to drive gross margin accretion initiatives and make choices across business activities, while continuing to invest in innovation," concluded De Witte.

Registered office: Pr. Kennedypark 35, B- 8500 Kortrijk, Belgium

1 This is EBIT before non-recurring charges and under the new capitalization methodology. Management considers EBIT (before non-recurring) to be a relevant performance measure in order to compare results over the period 2014 to 2016, as it excludes non-recurring items. Had Barco not changed its accounting treatment of product development costs, the EBIT margin for 2016 would have been approximately 5.4% compared to 5.0% in 2015 and 4.4% for 2014 (Calculated as EBIT before non-recurring and excluding amortizations less capitalized product development expenses for prior periods).

Outlook 2017

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

Assuming a stable economic environment and currencies at current levels, management expects further margin improvement on mid-single digit sales growth.

Dividend

The Board of Directors will propose to the General Assembly to increase the dividend from 1.75 euro to 1.90 euro per share to be paid out in 2017.

The following timetable will be proposed to the Annual General Shareholder meeting

• Ex-date: Tuesday, 9 May 2017
• Record date: Wednesday, 10 May 2017
• Payment date: Thursday, 11 May 2017

Preliminary remarks

I. Barco's organizational structure

Barco is a global company developing solutions for entertainment, enterprise and healthcare markets.

• Entertainment: The Entertainment division is the combination of the Cinema and Venues & Hospitality activities, which includes Professional AV, Events and the Retail & Advertising 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 which also includes the ventures Silex, X20 and Medialon.
• Healthcare: The Healthcare division includes the activities in Diagnostic Imaging (Diagnostic and Modality Imaging) and in Surgical.

II. Items impacting 2016 profitability

The chart below displays the calculation of Barco's net income from EBITDA for FY16, FY15 and FY14 including various non-recurring items and a change in the accounting methodology for new product development costs and the variance for each line item between FY16 and FY 15.

(in millions of euro)	FY16	FY15	FY14	Change FY16-FY15	Comment
EBITDA before non-recurring	88.0	74.1	59.7	+13.9
Capitalized development	0	0	47.7	0	1.i
Amortizations of capitalized R&D	(22.9)	(49.4)	(57.2)	+26.6	1.ii
Depreciations & other amortizations	(28.6)	(22.9)	(19.3)	(5.7)	2.i
EBIT before non-recurring	36.6	1.7	30.9	+34.9
Impairment & Restructuring	(12.9)	(29.1)	(3.4)	+16.2	3.iⅈ
Interest & Taxes	(5.1)	7.9	(5.9)	(13.0)	4
Net Income from discontinued operations	0.0	47.0	6.1	(47.0)	5.i
Gain on sale HQ (BE)	6.9	0	0	+6.9	5.ii
Non-controlling interest & share in equity companies	(14.4)	(10.1)	(3.8)	(4.3)	6
Net Income attributable to the equity holder of the parent	11.0	17.5	23.9	(6.4)

• 1. Change in accounting methodology for new product development costs
• i. In light of shortened product life cycles and rapidly evolving technologies, Barco began expensing product development costs as incurred effective 1 January 2015. Previously the company had capitalized product development costs.
• ii. The outstanding balance of capitalized development costs was amortized in 2015 and 2016.
• 1. Depreciations and amortizations (excluding development)
• i. Depreciation increased mainly due to the One Campus and OnePlatform investments.
• ii. Amortizations increased due to the acquisitions of MTT and Medialon in the Entertainment and Enterprise division.

3. Impairment and restructuring charges

• i. Barco recorded an impairment charge on goodwill of 7.1 million euro mainly related to investments in Patient Care solutions in its Healthcare division.
• ii. The company also booked a restructuring charge of 5.8 million euro to reflect restructuring and redeployment measures implemented in its LED and lighting activity in the Entertainment division.

4. Effective tax rate

In 2015 and 2016 the equal effective tax rate was 20% but a shift from negative to positive taxable income in 2016 resulted in a negative 6.3 million euro in taxes.

5. Divestiture of Defense & Aerospace business on 31 January 2015

• i. Net income from discontinued operations in 2015 of 47 million euro includes the gain on sale of the company's Defense and Aerospace business.
• ii. As part of the divestiture, Barco's headquarters building was sold in 2016 resulting in a gain of 6.9 million euro.

6. Chinese Joint Venture

Non-controlling interest and share in equity companies amounted to 14.4 million euro in 2016 mainly driven by increased profit-contribution from its joint venture with the China Film group.

Part I - Consolidated results for the fiscal year 2016

Order Intake & Order Book

Order book at year end was 320.8 million euro, down 3.7% compared to a year earlier reflecting shorter delivery cycles in Entertainment and Enterprise and decreases in Healthcare following the booking of two material longer term bulk orders toward the end of 2015.

Order Book

(in millions of euro)	FY16	FY15	FY14
Order book	320.8	333.2	302.2

Order intake was 1,081.2 million euro, an increase of 3.6% compared to last year driven by gains in Entertainment & Enterprise. By region declines in the Americas and a flat result in the EMEA region was offset by strong growth in the APAC region.

Order Intake

(in millions of euro)	FY16	FY15	FY14
Order Intake	1,081.2	1,043.7	869.4

Order Intake by division

	FY16	FY15	Change
Entertainment	574.8	536.4	+7.2%
Enterprise	290.2	287.0	+1.1%
Healthcare	216.3	221.2	-2.2%
Group	1,081.2	1,043.7	+3.6%

Order intake per region

	FY16	FY15	Change
The Americas	34%	39%	-11%
EMEA	32%	33%	-1%
APAC	34%	28%	+29%

Sales

Full year sales grew 7.0% led by strong gains in Entertainment and Healthcare. At constant currencies (excluding the impact mainly of the Chinese Yuan) sales growth would have been 8.6%.

All regions contributed to the growth, with strong gains in the APAC region.

Sales

(in millions of euro)	FY16	FY15	FY14
Sales	1,102.3	1,028.9	908.4
Sales by division
	FY16	FY15	Change
Entertainment	578.1	514.5	+12.4%
Enterprise	289.7	300.4	-3.6%
Healthcare	234.6	216.0	+8.6%
Group	1,102.3	1,028.9	+7.0%
Sales by region

	FY16	FY15	Change
The Americas	36%	37%	+3%
EMEA	31%	33%	+4%
APAC	33%	30%	+17%

Profitability

Gross profit

Gross profit increased from 337.8 to 378.8 million euro, an increase of 41.0 million euro. 2 Gross profit margin increased 1.6 percentage points to 34.4% compared to 32.8% in 2015, reflecting a positive product mix effect and the benefit of cost down engineering actions.

Operating expenses

Mainly as a result of planned investments in growth initiatives, total indirect cash expenses (excluding other operating results) increased to 322.7 million euro compared to 289.6 million euro a year earlier.

As a percentage of sales, indirect cash expenses were 29.3% compared to 28.1% for 2015.

• On a cash basis, Research & Development expenses increased to 120.5 million euro from 100.8 million euro last year. As percentage of sales, cash R&D expenses were 10.9% compared to 9.8% a year earlier.

Including the amortization of outstanding capitalized development expenses of 22.9 million euro, reported R&D expenses amounted to 143.4 million euro or 13.0% of sales. See remarks on reporting methodology.

• Sales & Marketing expenses increased to 147.1 million euro compared to 137.8 million euro in 2015. As a percent of sales, Sales & Marketing expenses were 13.3% of sales compared to 13.4% in 2015.
• General & administration expenses were 55.1 million euro compared to 51.0 million euro last year and increased slightly as a percentage of sales from 4.9% to 5.0%. G&A expenses for the year included amortization of Barco's investment in the OnePlatform project. Barco began to amortize this investment beginning with the second semester of 2014.

Other operating results amounted to a positive 3.3 million euro compared to a positive 3.0 million euro last year, driven by a reversal in provisions for bad debt.

EBITDA & EBIT3

EBITDA grew 18.8% to 88.0 million euro compared to 74.1 million euro for the prior year. EBITDA margin was 8.0% versus 7.2% for 2015.

By division, EBITDA and EBITDA margin is as follows:

FY16	Sales	EBITDA	EBITDA %
Entertainment	578.1	30.4	5.3%
Enterprise	289.7	33.0	11.4%
Healthcare	234.6	24.6	10.5%
Group	1,102.3	88.0	8.0%

2 Gross profit and Sales and Marketing expenses are impacted by the reclassification of professional services overhead to cost of sales from sales & marketing expenses. The results for 2015 have been restated accordingly.

There is no impact on EBIT or net income resulting from this reclassification.

³ EBITDA and EBIT in this press release refer to "EBITDA and EBIT before non-recurring items" and exclude the 6.9 million euro gain on sale of building and other non recurring items such as impairment and restructuring costs and other non operating income: see Net Income.

	FY16	FY15	Change
Entertainment	30.4	43.6	-30.1%
Enterprise	33.0	11.1	+197.7%
Healthcare	24.6	19.4	+26.6%
Group	88.0	74.1	+18.8%

EBITDA by division 2016 versus 2015 is as follows:

On group-level, Barco made good progress in expanding EBITDA which grew 18.8% driven by a turnaround performance in Enterprise and strong sales growth in Healthcare.

Significant EBITDA expansion in the Enterprise division was driven by both a strong contribution from the Corporate activity and a recovery of margins in the Control Rooms activity. The Healthcare division booked profitability gains based on sales growth and on the back of a favourable product mix. Planned investments in Entertainment caused an EBITDA decline.

EBIT was 30.5 million euro compared to a negative 27.4 million euro in 2015. Included in EBIT was a gain of 6.9 million euro on the sale of headquarter building, a charge of 5.8 million euro, primarily related to restructuring measures implemented in the Entertainment division's LED and Lighting activity, and impairment charges on goodwill and investments totalling 7.1 million euro related to Patient Care solutions in Healthcare.

EBIT before non-recurring charges was 36.6 million euro, or 3.3% of sales, compared to 1.7 million euro, or 0.2% of sales for 2015. In addition, 2016 EBIT before non-recurring included 22.9 million euro in amortization of the outstanding balance of capitalized development costs.

Income taxes

In 2016 taxes were 6.3 million euro for a tax rate of 20.0%. Taxes in 2015 were 4.9 million euro positive for an effective tax rate of 20.0% on the continuing business as a result of negative earnings before taxes.

Net income

Net income attributable to the equity holders was 11.0 million euro after deducting third party interests to the amount of 14.4 million euro mainly related to the Joint Venture with China Film Group.

Net income per ordinary share (EPS) was 0.91 euro compared to 1.45 euro in 2015. Fully diluted earnings per share were 0.88 euro compared to 1.41 euro.

Registered office: Pr. Kennedypark 35, B- 8500 Kortrijk, Belgium

Cash Flow & Balance Sheet

Free Cash Flow and Working Capital

Free cash flow for the year was 57.4 million euro compared to a 110.3 million euro for 2015 and 14.9 million euro for 2014.

(in millions of euro)	FY16	FY15	FY14
Gross operating Cash Flow4	81.9	67.4	97.4
Changes in trade receivables	0.2	(5.4)	(19.7)
Changes in inventory	(2.8)	27.6	(11.9)
Changes in trade payables	(2.7)	16.3	0.2
Other Changes in net working capital	11.9	32.8	4.7
Change in net working capital	6.6	71.2	(26.7)
Net operating Cash Flow	88.5	138.6	70.7
Interest Income/expense	4.1	0.2	(1.1)
Income Taxes	(11.5)	(14.9)	(3.0)
Cash flow from operating activities	81.1	123.9	66.6
Expenditure on product development	-	-	(47.7)
Purchase of tangible and intangible FA (excl. One Campus)	(24.2)	(14.7)	(8.3)
Proceeds on disposal of tang and intang FA	0.6	1.1	4.3
Cash flow from investing	(23.7)	(13.6)	(51.7)
FREE CASH FLOW	57.4	110.3	14.9

Driven in large part by cost down initiatives in the second semester of the year, Barco generated a higher gross operating cash flow of 81.9 million euro versus 67.4 million euro in 2015.

Net working capital was -5% of sales, a 3 percentage point improvement versus 2015.

Trade receivables decreased 0.2 million euro and trade payables decreased 2.7 million euro. Inventory increased 2.8 million euro.

• Trade receivables were 188.6 million euro versus 186.8 million euro at 30 June 2016 and 186.9 million euro at 31 December 2015. DSO's stood at 55 days, compared to 61 days at the end of the first half and 58 days at 31 December 2015.
• At 166.2 million euro, inventory was 2.8 million euro higher than at the end of 2015. Inventory turns improved to 3.6, compared to 2.9 turns at the end of the first half in 2016 and at the same level as at 31 December 2015.
• Trade payables stood at 135.1 million euro compared to 123.0 million euro at 30 June 2016 and 139.5 million euro at 31 December 2015.

Cash flow from investing activities increased to 23.7 million euro, versus 13.6 million euro in 2015, due to purchases of fixed assets for Barco's new headquarter.

4 Gross Operating Cash Flow is now defined to include the restructuring pay-out. The Gross Operating Cash Flows for 2015 and 2014 have been restated to reflect the same definition.

Capital Expenditure

Capital expenditure was 33.4 million euro, including the One Campus investment of 9.1 million euro. For 2015 total capital expenditure was 43.0 million euro, including One Campus investments.

Return on Capital Employed

ROCE, excluding the impact of amortizations on capitalized product development costs, was 15%, a 4 percentage points improvement versus last year.

Capitalized Development

The outstanding balance of capitalized product development costs was amortized in 2015 and 2016. Outstanding capitalized development costs stood at 0 million euro at the end of year compared to 22.8 million euro at the end of 2015 and 71.4 million euro at 31 December 2014. Due to the Board's decision regarding Barco's capitalization methodology, since 1 January 2015, product development costs have been expensed as incurred.

Goodwill

Goodwill on the group level stood at 124.3 million euro compared to 132.4 million euro at the end of 2015 and 143.8 million euro at the end of 2014.

During 2016, Barco recorded impairment charges on goodwill and investments totalling 7.1 million euro mainly related to Healthcare division investments in the Patient Care activities acquired from Jaotech in 2012.

Cash position

Barco ended the year with a net financial cash position of 286.6 million euro compared to 265.1 million euro at the end of 2015.

The increase reflects higher free cash flow and proceeds from the sale of the headquarter building in Kortrijk partially offset by dividend payments and investments for the acquisition of MTT and Medialon and the One Campus project.

Immediately available net cash or net cash excluding the cash in the China Film Group joint venture amounted to 186.6 million euro, essentially flat with last year.

Part II - Consolidated results for 2H16

Financial highlights 2H16

• Order intake for the semester was 548.3 million euro, from 521.2 million euro a year earlier (+5.2%).
• Sales were 573.1 million euro from 522.7 million euro in 2H15 (+9.7%)
• Gross profit margin was 32.9% versus 32.3% in 2H15.
• EBITDA was 38.6 million euro versus 33.5 million euro in 2H15. EBITDA margin was 6.7% compared to 6.4% in 2H15.
• EBIT5 was 12.4 million euro versus a negative 5.7 million euro in 2H15, reflecting the temporary impact of amortization of outstanding capitalized product development expenses.
• Free cash flow for the second semester was 86.4 million euro compared to 95.8 million euro for the same period last year.

Order Intake & Order Book

Order intake was 548.3 million euro, an increase of 27.1 million euro or 5.2% compared to last year, driven by increases in the Entertainment and Enterprise divisions, partially offset by a decline in Healthcare.

The order book closed at 320.8 million euro at the end of the second semester of 2016.

Order Book

(in millions of euro)	2H16	1H16	2H15	1H15	2H14
Order book	320.8	332.4	333.2	333.1	302.2
Order Intake
(in millions of euro)	2H16	1H16	2H15	1H15	2H14
Order Intake	548.3	532.9	521.2	522.5	418.3
Order Intake by division
(in millions of euro)		2H16	2H15		Change
Entertainment		291.2	239.4		+21.6%
Enterprise		146.5	151.8		-3.5%
Healthcare		110.6	130.3		-15.2%
Group		548.3	521.2		+5.2%
Order intake per region

	2H16	2H15	Change
The Americas	33%	41%	-17%
EMEA	31%	34%	-4%
APAC	36%	24%	+56%

5 EBIT before non recurring charges

Page 11 of 1 Barco NV, Beneluxpark 21, B-8500 Kortrijk, Belgium Registered office: Pr. Kennedypark 35, B- 8500 Kortrijk, Belgium

Sales

Second semester sales continued to grow at the group level. Growth was driven by a strong push in both Healthcare and Entertainment. Sales in the Americas and EMEA region were essentially flat compared to last year while the APAC region was very robust.

Sales
(in millions of euro)	2H16	1H16	2H15	1H15	2H14
Sales	573.1	529.2	522.7	506.2	474.3
Sales by division
(in millions of euro)		2H16	2H15		Change
Entertainment		305.4	250.1		+22.2%
Enterprise		148.8	161.5		-7.9%
Healthcare		118.9	111.3		+6.9%
Group		573.1	522.7		+9.7%
Sales by region		2H16	2H15		Change
The Americas		34%	38%		-1%
EMEA		31%	34%		+1%

APAC 35% 28% +35%

Profitability

Gross profit

Gross profit was 188.8 million euro for the second semester of 2016, a robust increase of 11.7% compared to 169.1 million euro for the second semester 2015.6

Gross profit margin increased by 0.6 percentage points to 32.9% for the second half of 2016 compared to 32.3% for the second half of 2015.

Indirect expenses

Total operational cash expenses, excluding other operating results were 168.5 or 29.4% of sales compared to 152.6 million euro or 29.2% of sales for the second half of 2015. New product launches and investments in growth initiatives drove the increases in Research and Development and in Sales and Marketing expenses.

• On a cash basis, Research & Development expenses increased to 64.4 million euro from 53.7 million euro last year. As a percent of sales, cash R&D expenses amounted to 11.2% of sales compared to 10.3% a year earlier. Including the amortization of outstanding capitalized development expenses of 10.0 million euro, reported R&D expenses amounted to 74.4 million euro or 13.0 % of sales. For the second half of 2015 reported R&D expenses were 79.9 million euro or 15.3% of sales, including the amortization of outstanding capitalized development expenses of 26.2 million euro.
• Sales & Marketing expenses increased to 75.0 million euro compared to 71.3 million euro for the second half of 2015. 7 As a percent of sales, Sales & Marketing expenses were 13.1% in 2H16 compared to 13.6% in 2H15.
• General & administration expenses were 29.0 million euro, or 5.1% of sales compared to 27.6 million euro or 5.3% of sales last year.
• Other operating results amounted to a positive 2.0 million euro compared to a positive 3.9 million euro last year.

6 Gross profit and Sales and Marketing expenses are impacted by the reclassification of professional services overhead to cost of sales from sales & marketing expenses. The results for 2015 have been restated accordingly.

7 See footnote 3

There is no impact on EBIT or net income resulting from this reclassification. (More information in the Annual Report 2016)

EBITDA & EBIT8

EBITDA was 38.6 million euro, compared to 33.5 million euro for the prior year second semester.

EBITDA margin was 6.7% versus 6.4% for the second half of 2015, with strong contributions from the Enterprise and Healthcare division partially offset by a slower performance in the Entertainment division due to heavy investments in growth initiatives.

By division, EBITDA and EBITDA margin was as follows:

2H16 (in millions of euro)	Sales	EBITDA	EBITDA %
Entertainment	305.4	7.7	2.5%
Enterprise	148.8	17.4	11.7%
Healthcare	118.9	13.5	11.4%
Group	573.1	38.6	6.7%

EBITDA by division 2H16 versus 2H15 is as follows:

(in millions of euro)	2H16	2H15	Change
Entertainment	7.7	16.1	-52.2%
Enterprise	17.4	9.6	+81.3%
Healthcare	13.5	9.1	+48.4%
Group	38.6	33.5	+15.2%

EBIT before non-recurring was 12.4 million euro or 2.2% of sales and included 10.0 million euro of amortizations of capitalization of product development expenses. For the second half of last year EBIT was 5.8 million euro negative.

Net income

Net income attributable to the equity holders for 2H16 was a negative 7.1 million euro, and is net after restructuring and impairments charges of 12.9 million euro and the third party interests of 7.9 million euro mainly related to the Joint Venture with China Film Group.

8 EBITDA and EBIT in this press release refer to "EBITDA and EBIT before non-recurring items" and exclude the 6.9 million euro gain on sale of building and other non recurring items such as impairment and restructuring costs and other non operating income.

Part III – Divisional results for fiscal year 2016

(in millions of euro)	FY16	FY15	FY14	Change vs FY159
Orders	574.8	536.4	431.2	+7.2%
Sales	578.1	514.5	459.7	+12.4%
EBITDA	30.4	43.6	34.3	-30.1%
EBITDA margin	5.3%	8.5%	7.5%

ENTERTAINMENT DIVISION

The Entertainment division delivered another excellent year with robust gains in the Cinema business, particularly in China.

EBITDA and EBITDA margin declined year-over-year reflecting sizeable investments in new product development and new product launches, notably Barco Escape and flexible LEDsolutions.

In the Cinema segment, sales growth was driven by strong demand for new projectors in emerging regions and particularly in China; in more mature geographies sales growth was driven by rising demand from existing and new customers for technology upgrades and premium format solutions. In addition the segment increased the number of flagship laser projector installations worldwide and enjoyed strong demand for its laser phosphor projectors, launched in 3Q16.

Leveraging its large installed base, the segment continued to increase service and maintenance revenue.

Barco tested and proved the appeal of Barco Escape which was installed in almost 40 theatres worldwide in support of the summer release of Star Trek. Audience feedback was positive, customers reported higher box-office receipts and the company is now exploring different options to secure content financing for the Escape format.

The Lobby initiative continued to gain traction in the North American market. As mentioned in the first-half report, Barco acquired MTT Innovation Inc. in June 2016, an investment which adds to its expertise in next-generation projection technology.

The Venues and Hospitality segment's performance was mixed with good uptake in the fixed install market offset by slower order flow and increased competition in the events activity. Orders for fixed installs were strong reflecting inroads made with museums, theme parks and arenas. New laser phosphor solutions and advanced flexible LED solutions were launched, expanding the segment's product portfolio and strengthening its competitive positioning.

Registered office: Pr. Kennedypark 35, B- 8500 Kortrijk, Belgium

9 As of 2016, the remaining projector activity which had been part of Enterprise was transferred to the Entertainment division. Barco has not presented restated historical data. The sales results of the projector activity are not material to an analysis of the performance trends of the Entertainment and Enterprise divisions. (More information in the Annual Report 2016, Segment Information)

ENTERPRISE DIVISION

(in millions of euro)	FY16	FY15	FY14	Change vs FY1510
Orders	290.2	287.0	255.5	+1.1%
Sales	289.7	300.4	259.8	-3.6%
EBITDA	33.0	11.1	8.7	+197.7%
EBITDA margin	11.4%	3.7%	3.3%

The Enterprise Division delivered a three-fold increase in EBITDA and 770 basis point gain in EBITDA margin even though sales declined slightly on weak demand and project delays in Control Rooms. The Corporate segment accounted for half of Enterprise's sales.

In the Corporate segment, product portfolio and partner channel expansions drove sales growth and sustained momentum for ClickShare, which has now been equipped in 200,000 meeting rooms, up from 100,000 for 2015. Although Barco made considerable progress in extending ClickShare's footprint in the US and EMEA regions, substantial opportunities for broader and deeper market coverage in all regions remain.

Control Rooms posted an increase in sales of software that was overshadowed by a decline in hardware sales, driven by a slower Oil and Gas market, intensified competition from LCDs and delayed projects and product releases. Investments made in software and workflow solutions, new hardware releases and a joint venture in China position the segment to strengthen its competitive position in 2017. While investing in this transition, steps taken in 2015 to improve operating expense efficiency helped Control Rooms move closer to restoring profitability. The Enterprise division also closed the acquisition of Medialon in Q2 of 2016, adding complementary capabilities in control solutions and offering networked solutions for the Corporate and Education markets.

10 As of 2016, the remaining projector activity which had been part of Enterprise was transferred to the Entertainment division. Barco has not presented restated historical data. The sales-results of the projector activity are not material to an analysis of the performance trends of the Entertainment and Enterprise divisions. (More information in the Annual Report 2016, Segment Information)

(in millions of euro)	FY16	FY15	FY14	Change vs FY15
Orders	216.3	221.2	181.0	-2.2%
Sales	234.6	216.0	186.7	+8.6%
EBITDA	24.6	19.4	10.3	+26.6%
EBITDA margin	10.5%	9.0%	5.5%

HEALTHCARE DIVISION

Healthcare achieved a 10.5% EBITDA margin for 2016 reflecting an 8.6% increase in sales and strict control over operating expenses. Although orders were slightly below 2015 which benefited from some bulk orders, the division's order book remains healthy. Excluding the 2015 bulk orders, order intake grew 9%.

The Healthcare division strengthened its market leadership in the diagnostic market with a steady performance while modality experienced softer demand. Surgical sustained strong momentum worldwide and successfully entered the North America market.

The division completed the integration of Advan, launched a 4K surgical display and also decided to scale back its patient care activities and to support the momentum in its surgical activities.

The division increased its sales in China driven by continued efforts in business development and by expanding local capabilities in this high-growth developing market.

Conference call

Barco will host a conference call with investors and analysts on 9 February 2017 at 9:00 a.m. CET (3:00 am EST), to discuss the results of 2016. Jan De Witte, CEO, Ann Desender, CFO and Carl Vanden Bussche, IRO, will host the call. An audio cast of this conference call will be available on the Company's website www.barco.com by 12:30 p.m. Brussels time (6:30 a.m. EST).

Additional information

Auditor's report

The statutory auditor, Ernst & Young Bedrijfsrevisoren/Réviseurs d'Entreprises represented by Marnix Van Dooren has confirmed that the audit procedures, which have been substantially completed, have not revealed any material adjustments which would have to be made to the accounting information included in this press release.

The complete audit report related to the audit of the consolidated financial statements will be shown in the 2016 annual report that will be published on the Internet (www.barco.com).

Financial Calendar 2017

- Capital Markets Day	Thursday 16 March 2017
- Trading update 1Q17	Friday 21 April 2017
- Annual general shareholders meeting	Thursday 27 April 2017
- Announcement of results 1H17	Wednesday 19 July 2017
- Trading update 3Q17	Wednesday 18 October 2017

About Barco

Barco, a global technology company, designs and develops networked visualization products for the Entertainment, Enterprise and Healthcare markets. Barco has its own facilities for Sales & Marketing, Customer Support, R&D and Manufacturing in Europe, North America and APAC. Barco (NYSE Euronext Brussels: BAR) is active in more than 90 countries with 3,500 employees worldwide. Barco posted sales of 1.102 billion euro in 2016.

For more information and the Annual report 2016, please visit the Company's website at www.barco.com

© Copyright 2017 by Barco

For more information, please contact:

Carl Vanden Bussche, VP Investor Relations +32 56 26 23 22 or carl.vandenbussche@barco.com

Registered office: Pr. Kennedypark 35, B- 8500 Kortrijk, Belgium

ANNEX I

FINANCIAL TABLES

Income Statement	2016	2015	2014
(in thousands of euro)
Net sales	1,102,342	1,028,856	908,368
Cost of goods sold	-723,538	-691,091	-622,090
Gross profit	378,804	337,765	286,278
Research and development expenses	-143,362	-150,222	-99,689
Sales and marketing expenses	-147,088	-137,829	-116,679
General and administration expenses	-55,122	-50,977	-44,334
Other operating income (expense) - net	3,325	2,960	5,306
EBIT (before non-recurring)	36,557	1,698	30,882
Restructuring and goodwill impairment	-12,939	-29,099	-3,373
Gain on sale building	6,866	-	-
Other non-operating income/(expense)	33	35	-
EBIT	30,516	-27,366	27,509
Interest income	4,401	7,103	3,022
Interest expense	-3,161	-4,098	-4,156
Income/(loss) before taxes	31,756	-24,360	26,375
Income taxes	-6,345	4,879	-4,748
Result after taxes	25,411	-19,481	21,628
Share in the result of joint ventures and associates	263	-1,073	68
Net income/(loss) from continuing operations	25,674	-20,554	21,696
Net income from discontinued operations	-	47,031	6,094
Net income	25,674	26,477	27,790
Net income attributable to non-controlling interest	14,652	9,009	3,856
Net income attributable to the equity holder of the parent Net income/(loss) (continuing) attributable to the	11,023	17,468	23,933
equity holder of the parent Net income (discontinued) attributable to the equity	11,023	-29,563	17,840
holder of the parent	-	47,031	6,094
Earnings per share (in euro)	0.91	1.45	1.96
Diluted earnings per share (in euro)	0.88	1.41	1.92
Earnings (continuing) per share (in euro)	0.91	-2.45	1.46
Diluted earnings (continuing) per share (in euro)	0.88	-2.38	1.43

Selected Financial Ratios	2016	2015	2014
EBITDA (before non-recurring)	88,002	74,080	59,695
EBITDA on sales (before non-recurring)	8.0%	7.2%	6.6%
EBIT on sales (before non-recurring)	3.3%	0.2%	3.4%
EBIT on sales	2.8%	-2.7%	3.0%
Total debt to equity	13.6%	15.3%	14.3%
Balance sheet	31 Dec 2016	31 Dec 2015	31 Dec 2014
(in thousands of euro) ASSETS
Goodwill	124,255	132,386	143,774
Capitalized development cost	0	22,846	71,351
Other intangible assets	75,765	52,628	55,926
Land and buildings	53,019	20,221	21,315
Other tangible assets	50,916	72,346	44,597
Investments	14,460	9,031	14,360
Deferred tax assets	89,100	78,031	68,219
Other non-current assets	19,112	23,226	15,736
Non-current assets	426,627	410,715	435,278
Inventory	166,202	165,960	185,631
Trade debtors	188,561	186,910	170,486
Other amounts receivable	15,584	26,157	18,940
Cash and cash equivalents	353,549	341,277	145,340
Prepaid expenses and accrued income	8,709	9,308	8,948
Assets from discontinued operations	0	0	110,761
Current assets	732,605	729,612	640,106
Total Assets	1,159,231	1,140,327	1,075,384
EQUITY AND LIABILITIES
Equity attributable to equityholders of the parent	590,243	597,739	587,415
Non-controlling interest	25,244	13,925	7,146
Equity	615,487	611,664	594,561
Long-term debts	66,811	79,527	57,737
Deferred tax liabilities	8,813	4,462	6,830
Other long-term liabilities	11,198	2,839	0
Non-current liabilities	86,823	86,828	64,567
Current portion of long-term debts	11,500	10,000	7,130
Short-term debts	2,085	2,124	19,253
Trade payables	135,127	139,504	109,091
Advances received on customers	109,064	113,874	107,544
Tax payables	13,880	13,016	15,171
Employee benefit liabilities	57,050	48,757	44,759
Other current liabilities	9,684	7,690	5,204
Accrued charges and deferred income	58,050	59,967	33,390
Provisions	60,481	46,903	40,148
Liabilities from discontinued operations	0	0	34,567
Current liabilities Total Equity and Liabilities	456,922 1,159,231	441,835 1,140,327	416,257 1,075,385

Cash flow statement	2016	2015	2014
(in thousands of euro)
Cash flow from operating activities
EBIT before non-recurring	36,557	1,698	30,882
Impairment of capitalized development costs	1,364	4,866	7,244
Restructuring	-4,917	-3,622	-3,340
Gain on sale Orthogon	-1,000	-1,406	-6,650
Amortization capitalized development cost	21,509	44,575	49,969
Depreciation of tangible and intangible fixed assets	28,572	22,906	19,291
Gain/(Loss) on tangible fixed assets	-401	-543	-69
Share options recognized as cost	1,234	1,313	1,268
Share in the profit/(loss) of joint ventures and associates	263	-1,073	68
Discontinued operations: cash flow from operating activities	0	-4,407	21,281
Gross operating cash flow	83,180	64,308	119,944
Changes in trade receivables	205	-5,443	-19,669
Changes in inventory	-2,829	27,565	-11,915
Changes in trade payables	-2,676	16,297	220
Other changes in net working capital	11,883	32,773	4,708
Discontinued operations: change in net working capital	0	12,767	538
Change in net working capital	6,583	83,958	-26,119
Net operating cash flow	89,763	148,266	93,825
Interest received	7,272	4,303	3,022
Interest paid	-3,161	-4,098	-4,156
Income taxes	-11,538	-14,938	-2,993
Discontinued operations: income taxes and interest
received/(paid)	0	-5,094	-17
Cash flow from operating activities	82,337	128,439	89,681
Cash flow from investing activities
Expenditure on product development	0	0	-47,691
Purchases of tangible and intangible fixed assets	-24,241	-14,730	-8,326
Proceeds on disposals of tangible and intangible fixed assets	578	1,137	4,312
Proceeds from sale of building	9,292	0	0
Acquisition of Group companies, net of acquired cash	-10,229	-9,635	-21,915
Disposal of group companies, net of disposed cash	1,000	139,622	10,590
Other investing activities	-16,667	-23,072	-15,699
Discontinued operations: cash flow from investing activities Cash flow from investing activities (including	0	-887	-12,888
acquisitions and divestments)	-40,267	92,435	-91,616

Page 21 of 1 Barco NV, Beneluxpark 21, B-8500 Kortrijk, Belgium Registered office: Pr. Kennedypark 35, B- 8500 Kortrijk, Belgium

	2016	2015	2014
Cash flow from financing activities
Dividends paid	-20,951	-19,364	-18,410
Dividends received	376	0	0
Capital increase/(decrease)	2,498	895	314
(Acquisition)/sale of own shares	5,684	-1,744	-11,335
Proceeds from (+), payments (-) of long-term liabilities	-11,381	8,740	19,346
Proceeds from (+), payments (-) of short-term liabilities	-2,239	-17,980	-8,255
Dividend distributed to non-controlling interest	-5,707	-3,006	-1,792
Capital increase from non-controlling interest	2,912	406	0
Discontinued operations: cash flow from financing activities	0	0	-36
Cash flow from financing activities	-28,809	-32,053	-20,169
Net increase/(decrease) in cash and cash equivalents	13,261	188,821	-22,103
Cash and cash equivalents at beginning of period	341,277	145,340	156,545
Cash and cash equivalents (CTA)	-989	7,116	10,897
Cash and cash equivalents at end of period	353,549	341,277	145,340

Results per division	2016	2015	2014
(in thousands of euro)
Sales
Entertainment	578,057	513,332	459,241
Healthcare	234,633	215,896	186,478
Enterprise	289,652	299,627	258,082
Ventures	0	0	4,567
Group	1,102,342	1,028,856	908,368
EBITDA (before non-recurring)
Entertainment	30,446	43,561	34,250
Healthcare	24,572	19,403	10,300
Enterprise	32,984	11,081	8,678
Ventures	0		6,467
Group	88,002	74,045	59,695

ANNEX II

TRADING UPDATE 4Q16

Trading update fourth quarter 2016

Order Book
(in millions of euro)	4Q16	3Q16	2Q16	1Q16	4Q15	3Q15
Order book	320.8	330.1	332.4	350.5	333.2	367.2
Order Intake
(in millions of euro)	4Q16	3Q16	2Q16	1Q16	4Q15	3Q15
Order Intake	281.7	266.7	252.0	280.8	251.9	269.3
Sales
(in millions of euro)	4Q16	3Q16	2Q16	1Q16	4Q15	3Q15
Sales	311.3	261.8	274.1	255.1	292.4	230.3
Sales
(in millions of euro)		4Q16		4Q15	Change
Entertainment		163.4		140.3	+16.5%
Enterprise		84.2	94.7 -11.1%
Healthcare		63.8	57.8 +10.3%
Intra-group eliminations		-0.0		(0.4)
Group		311.3		292.4	+6.5%