Jan Van Acoleyen
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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.
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Jan Van Acoleyen
- 1. Barco redefined Preparing Barco for sustainable and profitable growth in the next decade Jan Van Acoleyen Chief HR Officer Barco Page 1
- 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. Page 2
- 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 (賊 1,500 in Belgium) 8% of sales invested in R&D Page 3
- 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 Page 4
- 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) Page 5
- 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% Page 6
- 7. Barco activities: s 2010 reporting structure Media, Entertainment, Simulation Monitoring, Control and Medical Digital Cinema Simulation & VR Defense Avionics VLS DS TSM Medical Page 7
- 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. Page 8
- 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 Page 9 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 Page 10
- 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 Page 11
- 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 Page 12
- 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 Page 13
- 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 Page 14
- 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 Page 15
- 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 Page 16
- 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. Page 17
- 18. Structure 則 From conglomerate of companies to centralized & shared services 則 Matrix organization and itschallenges 則 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 Page 18
- 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 Page 19
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- 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 則 Multiple actions: Engagement Survey Leadership development Leadership evaluation Leadership recruitment Top Management example .. Page 21
- 22. Skills & Staff The right people on the bus is really key. 則 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 - . 則 Integrated HR approach is essential Succession Planning Promotion Reward Performance management . Page 22