Barco NV — Earnings Release 2023

Jul 19, 2023

FIRST HALF RESULTS

10% sales growth, fueled by strong performance of Entertainment; step-up in profitability with EBITDA margin at 12.5%

Kortrijk, Belgium, 19 July 2023, 7:30 am – Today Barco (Euronext: BAR; Reuters: BARBt.BR; Bloomberg: BAR BB) announced results for the six-month periods ended 30 June 2023. 1

First half and second quarter 2023 highlights2

• Orders 1H23 of 541.1 million euro, an increase of 6% vs 1H22
• Orderbook at 505.8 million euro, 9.3 million euro higher than year-end 2022
• Sales 1H23 of 520.9 million euro, an increase of 10% versus 1H22
• EBITDA 1H23 of 65.0 million euro, or 12.5 % of sales versus 9.8% of sales in 1H22
• Sales 2Q23 of 273.9 million euro, 3% higher than 2Q22 and 11% higher than 1Q23

Executive summary

Group topline

P 1 / 23

(in millions of euros)	1H23	1H22	1H21	1H20	Change 1H23 vs 1H22
Orders	541.1	509.2	465.6	398.7	6%
Sales	520.9	472.6	366.0	407.2	10%

1H quarter-by-quarter overview

¹ Please refer to our Half-Year Report for the auditor's review report

² All definitions for alternative performance measures (APM's) are available in the glossary as available on Barco's investor portal (www.barco.com/en/about-barco/investors)

Group topline – orders and sales both grew to record levels for the first semester In the first half of the year, orders increased 6% versus the first half of 2022. This growth was driven by a particularly strong demand in Entertainment. Order growth in Entertainment and Enterprise was offset by Healthcare, where order intake declined compared to a strong 1H22. With a positive book-to-bill ratio in 1H23, the orderbook expanded to 505.8 million euro. Sales grew to 520.9 million euro, a year-over-year increase of 10% and representing an all-time high for a first semester at Barco. Sales growth was driven by both business units in the Entertainment division, and also by Meeting Experience. Sales grew in APAC, Americas and most pronounced in EMEA. In China specifically, sales declined as the recovery in economic activity from the pandemic is taking longer than expected. Within the first semester, after a strong yearover-year sales growth in the first quarter, sales grew at a slower rate in the second quarter as this is compared to a stronger quarter last year, when demand surged after the pandemic.

Division topline – growth driven by Entertainment; Healthcare below last year

The Healthcare division reported lower sales and order intake compared to the record-high levels of the first half of 2022. In Diagnostic Imaging, a normalization of customer investment levels following government-supported spending during the pandemic resulted in a slight dip in order intake levels. Diagnostic Imaging sales approached last year's level, while, notably, sales of digital pathology displays grew. Surgical and Modality had a soft start to the year, both in order intake and sales, due to a timing difference between phasing out and phasing in of large contracts, notably in Americas, and higher customer inventories. In all other regions, orders and sales grew in the mid-single digit range.

In the Enterprise division, order intake increased 4% versus the same semester in 2022, with both business units registering gains. Enterprise sales were close to last year's level, reflecting high single digit growth in Meeting Experience offset by a decline for Large Video Walls. Meeting Experience saw growth across all regions, reflecting continued high demand for ClickShare, Barco's flexible hybrid conferencing solution. Sales declined for Large Video Walls in all regions. Order intake grew both in Europe and APAC but was soft in the Americas where an uncertain investment climate delayed orders. Barco completed its strategic review of this business, with an increased focus on software and workflow solutions; for more information about the strategic review please see the commentary on the Enterprise division's results in Part 2.

The Entertainment division saw strong growth in orders and sales across all regions, despite weakness in China. Sales grew 43% year-over-year and resulted in a record-high first semester for both Cinema and Immersive Experience. Cinema performed particularly well, reflecting investments by cinemas across the world in the upgrade of their lamp-based projector fleet by state-of-the-art laser projectors of the latest generation. The growth in Immersive Experience was fueled by live events, and by simulation. Sales conversion for Entertainment improved as production is no longer constrained by the component shortages that impacted results for the same semester last year.

www.barco.com

EBITDA expanded year-over-year, driven by significant improvement in Entertainment

EBITDA was 65.0 million euro, up from 46.2 million a year ago. EBITDA margin was 12.5%, which is 2.7 percentage points higher than the EBITDA margin of 9.8% in 1H22, driven by gross profit margin improvements.

Gross profit margin was 40.9%, up from 37.9% in first half of 2022 and 39.9% in the second half of 2022, largely due to higher margins in the Entertainment division, where last year's supply chain constraints have eased, and brokerage and logistic costs have declined.

Free cash flow for 1H23 was negative 24.1 million, including 20.9 million capital expenditure, mainly for manufacturing and customer leases. ROCE improved to 18% of sales.

Quote of co-CEOs An Steegen and Charles Beauduin

"We are very pleased that Barco reached all-time high sales during the first half of this year. We delivered on the particularly strong demand in the Entertainment markets. ClickShare continued to thrive on the hybrid conferencing momentum. As expected, Healthcare results were softer than last year while our perspective on the long-term demand remains strong. During the semester we completed the strategic review of our Large Video Wall segment and are now implementing changes to our business model and growth strategy to ensure sustainable profitability. Although the recovery from the pandemic in China is taking longer than expected, we believe in the long-term potential for Barco in this market. We want to thank our teams for their contribution during the first half year and we are going full force for another strong second half."

Outlook – Reconfirming sustainable profitable growth

The following statements are forward looking on a like-for-like basis and actual results may differ materially.

Sales and EBITDA margin are expected to be higher in the second half of the year than in the first half of the year. We are expecting tempered topline growth due to China, resulting in an expected sales growth for the full year in the high single-digit range.

EBITDA accretion will be maintained. The impact of lower sales is offset by gross margin improvement and a favorable product mix. Management reaffirms its expectation for an EBITDA margin above 14% for the full year 2023.

We reconfirm our long-term guidance for a high single-digit sales CAGR and an EBITDA margin in the range of 14-18%.

Organizational update

With strategic long-term succession planning being a core element in the organizational development strategy, Barco was able to strengthen its leadership team with a number of internal promotions. Geert Carrein, EVP for Diagnostic Imaging, retired at the end of June 2023 and has been succeeded by Dirk Feyants, stepping up from his role as VP Strategy and Business Development. Chris Sluys, EVP Large Video Walls, also retired at the end of June and is succeeded by Tom Sys, previously CDIO at Barco. Philippe Verlinde, previously Head of IT Program Management, succeeded Tom Sys as CDIO. Erdem Soyal, EVP Immersive Experience, is no longer with Barco and is succeeded by Ta Loong Gan, stepping up from his role as VP Global Sales for this business unit.

P 4 / 23

Barco nv | Beneluxpark 21 | B-8500 Kortrijk | Belgium Registered office: President Kennedypark 35 | B-8500 Kortrijk | Belgium VAT BE 0473.191.041 | RPR Gent, Section Kortrijk www.barco.com

Part 1: Consolidated results for 1H23

1.A. Update financial results

Order intake & order book

Order intake

Order intake was 541.1 million euro, an increase of 6% compared to last year's first half, driven by strong uptakes in Entertainment. Orders were up in Americas and APAC and close to last year's level in EMEA.

(in millions of euros)	1H23	2H22	1H22	2H21	1H21
Order Intake	541.1	549.2	509.2	513.2	465.6

Orderbook

The orderbook at the end of the semester was 505.8 million euro, 9.3 million euro higher than at the end of 2H22 and 31.9 million euro lower than at the end of the 1H22. The orderbook expansion was mainly in the Entertainment division.

(in millions of euros)	30 Jun	31 Dec	30 Jun	31 Dec	30 Jun
	2023	2022	2022	2021	2021
Orderbook	505.8	496.5	537.7	487.0	391.4

Order intake by division

(in millions of euros)	1H23	1H22	1H21	Change
Healthcare	141.3	164.3	168.6	-14%
Enterprise	143.0	137.7	110.7	4%
Entertainment	256.7	207.2	186.3	24%
Group	541.1	509.2	465.6	6%

Order intake per region

(in millions of euros)	1H23	% of total	1H22	% of total	Change (in nominal value)
The Americas	231.2	43%	217.2	43%	+6%
EMEA	188.6	35%	190.3	37%	-1%
APAC	121.3	22%	101.7	20%	+19%

Sales

First semester sales were 520.9 million euro, an increase of 10% compared to the same period last year, driven by strong results in the Entertainment division. There was no significant currency effect.

Sales

(in millions of euros)	1H23	2H22	1H22	2H21	1H21
Sales	520.9	585.7	472.6	438.3	366.0

Sales by division

(in millions of euros)	1H23	1H22	1H21	Change
Healthcare	147.3	163.9	132.4	-10%
Enterprise	145.6	148.7	103.9	-2%
Entertainment	228.0	160.0	129.7	+43%
Group	520.9	472.6	366.0	+10%
Sales at constant currencies				+10%

Sales by region

(in millions of euros)	1H23	% of total	1H22	% of total	Change (in nominal value)
The Americas	204.6	39%	188.6	40%	+8%
EMEA	209.0	40%	181.4	38%	+15%
APAC	107.3	21%	102.7	22%	+4%

P 6 / 23

Profitability

Gross Profit

Gross profit was 213.0 million euro for the first half, up from 178.9 million euro a year ago. Gross profit margin was 40.9%, up from 37.9% in first half of 2022 and 39.9% in the second half of 2022. The improvement was driven by a favorable product mix and by the Entertainment division, where the supply chain constraints that impacted the business last year with corresponding exceptional brokerage and logistic costs, have now eased.

Indirect expenses

Total indirect expenses amounted to 166.5 million euro, or 32.0% of sales, compared to 149.8 million or 31.7% in the first half of last year. Relative to sales, indirect spending was kept under control.

EBITDA & EBIT

EBITDA was 65.0 million euro, up from 46.2 million euro in last year's first semester, an increase of 18.8 million euro.

EBITDA margin was 12.5%, which is an increase of 2.7 percentage points from the EBITDA margin of 9.8% in the first semester of 2022.

By division, sales, EBITDA and EBITDA margin was as follows:

1H23 (in millions of euros)	Sales	EBITDA	EBITDA %
Healthcare	147.3	14.7	10.0%
Enterprise	145.6	22.9	15.7%
Entertainment	228.0	27.4	12.0%
Group	520.9	65.0	12.5%

EBITDA by division 1H23 versus 1H22 (and 1H21) is as follows:

(in millions of euro)	1H23	1H22	1H21	Change vs 1H22
Healthcare	14.7	21.6	15.8	-32%
Enterprise	22.9	27.4	5.6	-16%
Entertainment	27.4	-2.7	6.0	+1115%
Group	65.0	46.2	27.5	+41%

Adjusted EBIT3 was 47.4 million euro, or 9.1% of sales, compared to 26.8 million euro or 5.7% of sales in the first semester of last year.

In 1H23, restructuring charges amounted to 6.6 million euro, linked to the strategic review of Large Video Walls.

Income taxes

In the first half of 2023 taxes were 7.7 million euro for an effective tax rate of 18%, compared to 4.8 million euro for an equal effective tax rate in the first half of 2022.

Net income

Net income attributable to equity holders was 33.3 million euro or 6.4% of sales compared to 22.4 million euro or 4.7% of sales for the first semester of 2022.

Net earnings per ordinary share (EPS) for the first semester were 0.37 euro compared to 0.25 euro the year before.

P 8 / 23 ³ Adjusted EBIT is EBIT excluding restructuring charges and impairments, see Glossary Annual and Half year report,

Cash flow & Balance sheet

Free cash flow

Free cash flow for 1H23 was negative 24.1 million. This is the result of higher inventory due to tactical measures to secure supply, higher trade receivables linked to a surge in sales towards the end of the quarter, and an important uptake in capital expenditure with investments in customer leases (Cinema-as-a-Service) and manufacturing (automation and new Chinese manufacturing facility in Wuxi).

(in millions of euros)	1H23	1H22
Gross operating Free Cash Flow	61.9	44.5
Changes in trade receivables	-13.9	-37.9
Changes in inventory	-27.5	-51.5
Changes in trade payables	-6.1	14.8
Other Changes in net working capital	-16.2	-0.7
Change in net working capital	-63.7	-75.3
Net operating Free Cash Flow	-1.8	-30.7
Interest Income/expense	2.2	-0.2
Income Taxes	-3.6	2.1
Free Cash Flow from operating activities	-3.2	-28.8
Purchase of tangible and intangible FA	-21.0	-7.3
Proceeds on disposal of tangible and intangible FA	0.1	8.1
Free Cash Flow from investing	-20.9	0.8
FREE CASH FLOW	-24.1	-28.0

P 9 / 23

Working capital

Net working capital was higher at 18.3% of sales compared to 13.2% of sales a year ago and 14.3% at year-end 2022.

The increase in DSO was the result of an uptake of sales towards the end of the semester which will be collected during the third quarter. Inventory levels increased as a tactical response to secure supply with increases in raw materials and (semi-)finished goods. Inventory purchases started to decrease during the second quarter, which explains the lower trade payables.

(in millions of euros)	1H23	FY22	1H22
Trade Receivables	205.1	194.6	200.8
DSO	67	54	68
Inventory	270.5	245.7	230.0
Inventory turns	1.9	2.1	2.0
Trade Payables	-115.1	-121.9	-129.3
DPO	61	68	81
Other Working Capital	-157.9	-168.0	-181.0
TOTAL WORKING CAPITAL	202.5	150.4	120.5

Capital expenditure

Capital expenditure was 20.9 million euro compared to 7.3 million euro a year ago.

Return on Capital Employed

ROCE for the last 12 months ending on 30 June 2023 was 18% compared to 7% a year ago.

Net financial cash position

The net financial cash position was 203.0 million euro compared to 233.6 million euro a year ago and 264.0 million euro at the end of last year.

1.B. Update Planet - People - Communities

Barco has organized its sustainability program into 3 pillars: the planet, our people and the communities we operate in.

For each of these three sustainability pillars, the company has formulated an overall mission statement and defined several focus areas. On a semester basis we offer a selection of the relevant metrics. For more information about the KPI's please check our "Planet – People – Communities report 2022".

Planet

As part of Barco's program to improve the eco-friendliness of its solutions portfolio, it has introduced and rolled out a company-wide eco scoring methodology and has set out the target level for 2023 at 70% eco-labelled revenues.4

% Revenues from ECO labelled products	1H23	FY22	1H22	FY21	Change vs FY22
Group	60%	50%	38%	31%	+10ppt

For the first half of the year, eco-labelled revenues increased to 60% of total revenues from 38% a year ago and 50% for the full year 2022, mainly boosted by progress in the Enterprise division, with the complete ClickShare portfolio now ecolabelled, and the recent introduction of ecolabelled LED walls (TruePix and NT-series), replacing older systems. For 2H23 and beyond, a further increase of the eco-labelled revenues is anticipated as all new product introductions in 1H23 were eco-labelled.

People

P 11 / 23

	1H23	2H22	1H22	2H21	1H21
Number of employees	3,392	3,302	3,191	3,141	3,105

Barco's workforce expanded in the first semester of 2023 to 3,392 employees. Blue collar employees, mainly for projector manufacturing in Belgium, accounted for about half of the increase. The remaining growth came from white collar employees, predominantly in the software and R&D teams in Belgium, Taiwan and India. On a positive note, the overall voluntary attrition decreased significantly during the first half of 2023.

⁴ For more information about Barco eco scoring methodology, see Barco's latest Annual report on

https://ir.barco.com/2022/uploads/files/PDF/Barco-IR2022-PPC.pdf. The revenue calculation is explained in the Glossary https://ir.barco.com/2022/uploads/files/PDF/Barco-IR2022-GLO.pdf

Communities

Twice per year, Barco collects feedback on its products and services from partners as well as end customers, using the relational Net Promotor Score (NPS) as standard customer experience metric. Committed to constantly improving, Barco works towards an NPS target-level of 50.

	1H23	2H22	1H22	2H21	Change vs 2H22
Customer net promotor score	48	44	45	47	+4

At the end of the first semester of 2023, Barco reached an overall NPS score of 48, a meaningful improvement versus the score of 44 at year-end 2022 and the score of 45 a year ago. Improvement is seen across all regions and divisions, most outspoken in Large Video Walls and Surgical & Modality. This upward evolution is clearly linked to a more positive sentiment towards our after sales process. The speed of response and ticket resolution improved, thanks to automating our service workflows. The eased supply chain constraints for spare parts enabled faster lead times for repairs and replacements, mainly in projection.

P 12 / 23

Part 2: Divisional results for 1H23

HEALTHCARE division

Performance metrics 1H23 versus 2H22 and 1H22

(in millions of euros)	1H23	2H22	1H22	Change vs 1H22
Order intake	141.3	155.4	164.3	-14%
Sales	147.3	177.8	163.9	-10%
EBITDA	14.7	16.8	21.6	-32%
EBITDA margin	10.0%	9.4%	13.2%	-3.2 ppts

Sales quarter-over-quarter

(in millions of euros)	2Q23	1Q23	4Q22	3Q22	2Q22	Change 2Q23 vs 2Q22
Sales	73.3	73.9	94.4	83.4	86.2	-15%

Orders and sales evolution quarter-over-quarter

The Healthcare division witnessed a decline in sales of 10% and in order intake of 14% compared to the first half of 2022. These decreases were mainly driven by the Americas region, while EMEA and APAC both posted growth in both orders and sales. The second quarter sales and orders were about flat versus the first quarter.

In the Diagnostic Imaging segment, the market demand in the first half of 2023 was slightly softer than last year, as customer investment patterns returned to more normal patterns after a period of increased spending supported by government initiatives during the pandemic. Rising interest rates caused some delays in booking orders, particularly in the Americas. Orders were

lower in EMEA but increased in APAC versus the same period last year. Sales for Diagnostic Imaging decreased slightly versus last year, while the radiology portfolio performed well, and digital pathology reported a significant uptake.

Surgical and Modality had a slower start of the year, with lower order intake and sales. This was primarily attributed to a timing discrepancy between the phasing in and phasing out of contracts, causing a temporary gap in the sales, and also to higher customer inventories. This affected primarily the Americas region. A pipeline of confirmed new contracts is expected to start delivering sales growth towards 2024. In contrast to the Americas, all other regions generated a solid mid-single digit growth rate in both orders and sales.

EBITDA margin for the division amounted to 10.0%, down from 13.2% in 1H22. This is a result of a lower topline and higher R&D investments. As the new factory in Suzhou is ramping up, the division incurred some temporary higher costs, linked to project transfers from other manufacturing locations.

P 14 / 23

ENTERPRISE division

Performance metrics 1H23 versus 2H22 and 1H22

(in millions of euros)	1H23	2H22	1H22	Change vs 1H22
Order intake	143.0	143.6	137.7	+4%
Sales	145.6	168.5	148.7	-2%
EBITDA	22.9	33.4	27.4	-16%
EBITDA margin	15.7%	19.8%	18.4%	-2.7 ppts

Sales quarter-over-quarter

(in millions of euros)	2Q23	1Q23	4Q22	3Q22	2Q22	Change 2Q23 vs 2Q22
Enterprise	76.8	68.8	94.5	74.0	87.3	-12%

Orders and sales evolution quarter-over-quarter

The Enterprise division saw order growth of 4% in the first half of 2023 compared to the first half of 2022, and a slight decline in sales of 2%. Within the semester, second quarter sales grew 12% versus the first quarter of 2023, with both business units contributing to this growth.

The Meeting Experience segment reported high single-digit year-over-year sales growth for this first semester, reflecting the continued strong value proposition of ClickShare. All regions grew, with a notable uptake in APAC where sales almost doubled year-over-year. In a market where many companies are fundamentally rethinking the way how to use and upgrade their office space and meeting rooms, we see slower decision-making processes. ClickShare's flexible Bring Your Own Meeting proposition is clearly winning momentum and is gaining market share, as this market evolves.

P 15 / 23

The installed base of ClickShare is further growing and approaching 1.2 million units, up from 1 million+ one year ago. The share of ClickShare Conference is further expanding to more than two thirds of the volume, with close to 200,000 units sold so far.

Barco continued to update the ClickShare portfolio with the successful launch of CX-50 next gen in January 2023. This product offers new features such as dual display visualization and flexible switching with proprietary meeting room systems.

The Large Video Wall segment showed an increase in orders for the first half of the year, versus the same period in 2022. This was mainly fueled by good demand in Europe, while in Americas orders were delayed due to rising interest rates and an uncertain investment climate. Barco expects a significant number of the delayed orders to close during the second half of the year. Sales in 1H23 declined in all regions versus 1H22, partly due to project implementation delays at construction sites and partly due to supply chain constraints experienced by major integration partners.

The division realized an EBITDA margin of 15.7%, down 2.7 basis points from 18.4% a year ago. This was driven by higher spending in product roadmaps and R&D.

Large Video Walls strategic review

Barco has completed the strategic review of its Large Video Walls business that was announced earlier this year. Barco is committed to continue to deliver value to its customers in this market, leveraging more than 30 years of expertise and its global brand and footprint. As this segment has been underperforming in recent years, the clear objective is to return to sustainable profitability by accelerating investments in our software product portfolio and optimizing our organization for success.

Going forward, Barco will focus on addressing the changing market dynamics with a growing importance of operator workflows, hybrid collaboration and distributed working in a secure and sustainable way. The strategy for Large Video Walls is to empower our customers with cuttingedge workflow solutions that optimize their operational efficiency, accelerate decision-making and enhance security. Our goal is to be a leading provider in targeted industry verticals by delivering innovative solutions, fostering trust, and driving technological advancements.

P 16 / 23

The transformation of Large Video Walls will take place along 3 strategic axes:

1. Focus on profitable products and markets

We will focus on control rooms, where we will move to software solutions and closer interaction with our end-customers via dedicated workflow solutions. To maximize value creation, we will move deeper in the value chain of the industry verticals, with more scalable software, dedicated operator workflows, and recurring revenue models. We focus on three existing vertical strongholds: Energy & Utilities, Public Sector and Transportation, but also on Network Operations Centers (NOCs), Security Operations Centers (SOCs) and Process Control which are growing horizontal opportunities. We will no longer actively pursue workplace and broadcast visualization opportunities. Geographically, we continue to leverage our global presence and will focus on Europe, Americas, the Middle East and South(east) Asia.

2. Rebalanced R&D portfolio

We make a clear choice to rebalance R&D investments towards software and workflow solutions. Among other future growth initiatives, we intend to accelerate the further development of the Barco CTRL platform which was launched in April 2023. On the hardware side, Barco will continue to further optimize the RPC (Rear Projection Cube) and LCD display portfolios. In LED, we offer an up-to-date product portfolio, including the recent TruePix platform and will continue to invest in our image processing capabilities.

3. Future-proof organization

In conjunction with the new strategic direction for Large Video Walls, we plan to align the supporting sales and marketing activities and service model with our focus on software and workflows. Going forward, the business unit Large Video Walls and its transformation will be led by Tom Sys, who was until recently the CDIO of Barco, and brings extensive software development expertise to the role.

P 17 / 23

ENTERTAINMENT division

Performance metrics 1H23 versus 2H22 and 1H22

(in millions of euros)	1H23	2H22	1H22	Change vs 1H22
Order intake	256.7	250.2	207.2	+24%
Sales	228.0	239.3	160.0	+43%
EBITDA	27.4	30.2	-2.7	+1115%
EBITDA margin	12.0%	12.6%	-1.7%	+ 13.7 ppts

Sales quarter-over-quarter

(in millions of euros)	2Q23	1Q23	4Q22	3Q22	2Q22	Change 2Q23 vs 2Q22
Entertainment	123.7	104.3	134.6	104.8	92.8	+33%

Orders and sales evolution quarter-over-quarter

Demand in the Entertainment markets remained very strong, with orders growing 24% versus the same period last year. With a positive book-to-bill for the 5th consecutive semester in a row, the orderbook further strengthened.

In 1H23, sales in the Entertainment division grew 43% year-over-year, fueled by cinema that saw growth in all regions, despite a weak performance in China. Immersive Experience sales grew at a solid double-digit growth rate versus last year, although sales in China declined, as the recovery of demand after the pandemic is taking longer than expected.

The Cinema business unit saw important continued momentum in the upgrade of first-generation digital lamp-based projectors by laser projectors, offering not only superior image quality, but also a lower total cost of ownership. Meanwhile, Barco has installed more than 35,000 laser cinema projectors worldwide. In the cinema market, only approximately 25%-30% of the screens have been converted to laser so far, leaving a lot of potential for the next period, also reflected by the solid orderbook. Important wins during the semester included an agreement for equipping 800 screens at Cineplex Canada and the selection of Cinionic as technology provider for ScreenX. Growth was seen in all regions, despite the challenging Chinese market, where investment levels after the pandemic are restoring slower than expected.

The uptake in Immersive Experience sales was led by the market for live events, in entertainment and in corporate applications such as conferences and business product launches. This included a significant uptake for image processing products. The fixed installations (digital museums, theme parks) and simulation also grew. Regionally, the growth was led by the EMEA region, closely followed by Americas, while APAC sales were just below last year, due to the weak demand in the Chinese market.

Entertainment booked an EBITDA margin of 12.0%, up from a -1.7% negative EBITDA margin last year. The supply chain constraints as seen especially during the first semester of last year, have eased. With lower exceptional brokerage and logistic costs, there is an important uptake in gross margin for both business units. Furthermore, the steep growth of sales allowed for operating leverage and margin expansion. Also the product mix was favorable.

P 19 / 23

Conference call

Barco will host an earnings video call with investors, analysts and press on 19 July 2023 at 9:00 a.m. CET (3:00 am EST), to discuss the results of the first half of 2023. Barco management will host the call.

An audio cast of this event will be available on the Company's website www.barco.com by 12:30 p.m. CET (6:30 a.m. EST).

Request more information

Willem Fransoo, Director Investor Relations +32 56 26 23 22 or willem.fransoo@barco.com

Financial calendar 2023

Wednesday 18 October Trading update 3Q23

More information? Please visit our webpage https://www.barco.com/investors

P 20 / 23

Barco nv | Beneluxpark 21 | B-8500 Kortrijk | Belgium Registered office: President Kennedypark 35 | B-8500 Kortrijk | Belgium VAT BE 0473.191.041 | RPR Gent, Section Kortrijk www.barco.com

Disclaimer

This press release may contain forward-looking statements. Such statements reflect the current views of management regarding future events, and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Barco is providing the information in this press release as of this date and does not undertake any obligation to update any forward-looking statements contained in this press release in light of new information, future events or otherwise. Barco disclaims any liability for statements made or published by third parties and does not undertake any obligation to correct inaccurate data, information, conclusions or opinions published by third parties in relation to this or any other press release issued by Barco.

About Barco

Barco is a global company with headquarters in Kortrijk (Belgium). Our visualization and collaboration technology helps professionals accelerate innovation in the healthcare and enterprise and entertainment markets. We count over 3,000 visioneers, whose passion for technology is captured in over 500 unique patents.

Barco is a listed company (Euronext: BAR; Reuters: BARBt.BR; Bloomberg: BAR BB) and realized sales of 1,058 million euro in 2022.

Interested to connect? www.barco.com or on Twitter (@Barco), LinkedIn (Barco), YouTube (BarcoTV), Instagram (barco_nv) and Facebook (Barco).

Barco. Visioneering a bright tomorrow.

© Copyright 2023 by Barco

Annex I

Quarterly results

Order intake & order book

Order intake year-over-year

(in millions of euros)	2Q23	2Q22	Change 2Q23 vs 2Q22
Order Intake	254.4	262.3	-3%

Order intake quarter-over-quarter

(in millions of euros)	2Q23	1Q23	4Q22	3Q22	2Q22	Change 2Q23 vs 1Q23
Order Intake	254.4	286.6	307.2	242.0	262.3	-11%

Order book

(in millions of euros)	30 Jun	31 Mar	31 Dec	30 Sep	30 Jun	31 Mar
	2023	2023	2022	2022	2022	2022
Order book	505.8	530.1	496.5	527.6	537.7	530.4

Sales

Sales year-over-year

(in millions of euros)	2Q23	2Q22	Change 2Q23 vs 2Q22
Sales	273.9	266.4	+3%

Sales by division year-over-year

(in millions of euros)	2Q23	2Q22	Change 2Q23 vs 2Q22
Healthcare	73.3	86.2	-15%
Enterprise	76.8	87.3	-12%
Entertainment	123.8	92.8	+33%
Group	273.9	266.4	+3%

P 22 / 23

(in millions of euros)	2Q23	1Q23	4Q22	3Q22	2Q22	Change 2Q23 vs 1Q23
Healthcare	73.3	73.9	94.4	83.4	86.2	-1%
Enterprise	76.8	68.8	94.5	74.0	87.3	+12%
Entertainment	123.8	104.3	134.6	104.8	92.8	+19%
Group	273.9	247.0	323.4	262.2	266.4	+11%

Sales by division quarter-over-quarter

P 23 / 23

Barco nv | Beneluxpark 21 | B-8500 Kortrijk | Belgium Registered office: President Kennedypark 35 | B-8500 Kortrijk | Belgium VAT BE 0473.191.041 | RPR Gent, Section Kortrijk www.barco.com